PA Auditor General finds cyber schools flush with cash

[Deminpenn]

https://www.post-gazette.com/news/politics-state/2025/02/24/pa-education-department-house-budget-hearing/stories/202502240051

Days after the state’s top auditor put a spotlight on the finances and the vastly increased savings accounts of five cyber charter schools — including one based in Beaver County — lawmakers asked more questions as they weighed a reform proposal from Gov. Josh Shapiro.

The report from state Auditor General Tim DeFoor found that in a four-year stretch, the five cyber charters boosted their savings accounts by 144% and legally spent taxpayer money on staff bonuses, gift cards, vehicle payments and fuel stipends. The audit came up repeatedly in the Capitol on Monday during a budget hearing, where Allegheny County’s Rep. Aerion Abney said a cyber charter funding proposal in Mr. Shapiro’s proposed 2025-26 budget would save Pittsburgh schools $17 million a year.

and

The five cyber charters examined by Mr. DeFoor included Pennsylvania Cyber Charter School, known as PA Cyber, which has administrative offices in Midland, Beaver County. The report noted that its fund balance, or savings, increased from $108 million in 2020 to $219 million in 2023.

Mr. DeFoor said in the report, “The cyber charter funding formula needs to change to reflect what is actually being spent to educate students and set reasonable limits to the amount of money these schools can keep in reserve.”

Shapiro is proposing a flat reimbursement rate of $8k per student.

PA Cyber is located in my county. Their founder was already indicted, tried and convicted of stealing 11M, iirc. They have so much money, they adverise on TV and sponsored the Pompeii artifacts exhit at the Carnegie Science Center a couple years ago.

I have yet to meet a person who doesn't think the charter school law needs to be fixed.

[live love laugh]

1. They shouldn't have reserves if public schools don't.

[Deminpenn]

2. Public schools do have cash reserves

but it's usually a low percent of their total budget.

These cyber cash balances stand out like a sore thumb. And I'll point out our auditor gen is a recently reelected R.