California Assembly Bill 84 targets charter school fraud and accountability reforms

California's Assembly Education Committee convened on April 30, 2025, to discuss Assembly Bill 84, a significant legislative measure aimed at enhancing accountability and oversight in the state's charter school system. This bill emerges in response to the alarming fraud case involving the A3 charter school network in San Diego, which defrauded taxpayers of over $400 million by enrolling children without parental consent and collecting state funding for non-existent attendance.

The primary goals of AB 84 are threefold: to protect taxpayer dollars through improved audit reforms and transparency, to eliminate documented fraud particularly among non-classroom-based charter schools, and to enhance oversight of charter schools by school districts. The bill proposes comprehensive reforms to ensure that funds allocated for public education are used appropriately and effectively.

Mike Fine, CEO of the Fiscal Crisis and Management Assistance Team, testified in support of the bill, emphasizing the need for standardized audit procedures across all local educational agencies, including charter schools. He highlighted that current audit practices are inconsistent and often inadequate, which has contributed to the issues of fraud and mismanagement.

Cassie Mancini from the California School Employees Association also voiced support, stressing that the existing oversight mechanisms are insufficient and that AB 84 is a necessary step to prevent future fraud cases like that of A3. She pointed out that the bill aims to reform the funding determination process for non-classroom-based charters, ensuring that funding reflects the actual costs of education and encourages in-person learning, which has proven vital for student success.

However, the bill faced opposition from Myrna Castrejon, president of the California Charter Schools Association, who argued that AB 84's heavy-handed approach could harm all charter schools, not just those involved in fraudulent activities. She raised concerns about potential funding cuts and the establishment of new bureaucracies that could divert resources away from classrooms.

As the committee continues to deliberate on AB 84, the implications of this legislation could reshape the landscape of charter school oversight in California, aiming to restore public trust and ensure that taxpayer dollars are used effectively in the education system. The committee's next steps will be crucial in determining how these proposed reforms will be implemented and their potential impact on the state's educational framework.