Friel introduces bill to reclaim cyber charter overpayments in Pennsylvania
Bill is response to Auditor General’s recent report
Rep. Paul Friel February 21, 2025 | 2:06 PM
HARRISBURG, Feb. 21 – State Rep. Paul Friel announced today the introduction of new legislation aimed at addressing the significant overpayment of taxpayer funds to Pennsylvania's cyber charter schools.
This comes in response to Auditor General Timothy DeFoor's recent audit, which exposed critical flaws in the state's cyber charter funding formula.
The audit of five Pennsylvania cyber charter schools revealed that these institutions have accumulated over $618 million in fund balances, with substantial taxpayer dollars being diverted from school districts, Friel said. Notably, the state's largest cyber school has used these funds for substantial real estate investments rather than direct educational purposes.
"The findings confirm what many of us have known: Pennsylvania's cyber charter funding system is broken," said Friel, D-Chester. "Our public education dollars should be used to educate students, not to pad the coffers of cyber charter organizations. These excess funds could be reinvested to improve educational resources across the state or to ease the tax burden on property owners."
Friel's bill complements existing cyber charter funding reform efforts and focuses on two objectives:
- Recovery of excess funds: Empower taxpayers and school districts to reclaim overpayments from cyber charter schools.
- Clarified financial guidelines: Establish clear definitions regarding allowable expenses and the calculation of fund balances to ensure transparency and fiscal responsibility.
DeFoor emphasized in his report, "The excessive fund balances being accumulated by these cyber charter schools raise concerns over the funding formula for providing tuition payments to the cyber schools for both regular and special education students."
Friel said he urges the Pennsylvania legislature to act swiftly to protect public education and ensure accountability in the use of taxpayer dollars.
"Reforming the charter school law is essential to safeguarding the integrity of our public education system and ensuring that every tax dollar is used responsibly," Friel added.