91直播

A recently approved Financial Performance Framework is geared to provide additional oversight for Arizona charter schools.

The framework was approved at the Arizona State Board for Charter Schools (AZSBCS) meeting last week.

鈥淲e鈥檝e always had a financial framework, but this was an effort to make it more robust and to make it a more meaningful look at charters鈥� financials and to ensure that they are a viable entity to continue to serve students,鈥� Kathy Senseman, AZSBCS board president, said.

The Financial Performance Framework passed unanimously by the AZSBCS after Mary Ellen Lee, AZSBCS board member, made a motion to move the framework forward. 聽

鈥淚t was authorized by the legislature last year to allow us to make decisions about school closure on the financial framework,鈥� Senseman said. 鈥淧revious to that, we had only had academic and operational [issues] that we could use as a reason to close a school.鈥�

Senseman explained that parents and interest groups have expressed an interest in schools鈥� finances.

鈥淥ne of our recommendations- and we鈥檒l put it into rule- is that charters will have to post a link to our framework on their website, so parents can get multiple pieces of information,鈥� Senseman said.

She said, 鈥淪o, academic framework, operational framework and financial framework dashboards and information so parents can make an informed decision about whether or not that school is right for their child.鈥�

Measures

The framework indicates the schools will be measured on:

Going Concern

Default

Unrestricted Days Liquidity

Adjusted Net Income

Lease Adjusted Debt Service Coverage Ratio

Average Daily Membership (鈥淎DM鈥�)

The measures listed above will be rated by 鈥楳eets Standard,鈥� 鈥楢pproaches Standard鈥� and 鈥楤elow Standard.鈥�

Summative Performance

A charter school鈥檚 performance will be rated by 鈥楪ood Standing,鈥� 鈥楢dequate Standing鈥� and 鈥業ntervention.鈥�

Charter schools that receive an 鈥業ntervention鈥� Summative Performance Rating will have the opportunity to demonstrate improved financial performance.

If the 鈥業ntervention鈥� school does not demonstrate improved financial performance within the next school year, the board will act.

Staffing

The framework stated that in order to support the implementation of the Financial Performance Framework and the interventions, the State Board requests four additional Full-Time Equivalents (FTE) in the fiscal year 2020 budget.