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Keystone Central board hears audit-backed critique of cyber charter spending, urges legislative action
Summary
District staff presented Auditor General findings showing large fund balances and questionable expenditures at statewide cyber charter schools and recommended contacting legislators to support a statewide tuition cap; board members expressed frustration and discussed advocacy and local transparency.
Keystone Central School District staff presented results from an Auditor General review of Pennsylvania cyber charter schools and urged board members and the public to press legislators for limits on cyber charter tuition and stronger spending accountability.
The presentation, delivered by a district staff member identified in meeting materials as Joni, summarized the Auditor General Tim Dufours audit covering 7/1/2020to6/30/2023 and highlighted increased fund balances and line-item expenditures the presenter characterized as unrelated to classroom instruction. "The Auditor General ... made it clear that cyber charters are being paid more than they need to to educate students and are spending tax dollars in ways that would be unacceptable for a school district," the presenter read from the audit summary.
Why it matters: Keystone Central paid about $4.4 million to cyber charters last year, the presenter said, and board members said that unchecked tuition and outlays at cyber providers threaten district budgets already strained by rising health care and bond costs.
Board members pressed for specificity and next steps. Board member Elizabeth asked whether cyber students take the same statewide tests; the presenter said yes and pointed to performance tables the district included in its materials. Board member Jeff described audit examples, including gift-card programs, bonuses and purchases he and other members said were inconsistent with their expectations for public-school spending. "This is criminal," Jeff said during discussion; other board members expressed similar anger and said they would support contacting legislators.
Discussion also covered proposed statewide policy changes. The presenter summarized a governors proposal to set a statewide cyber charter tuition rate of $8,000 per regular-education student and noted uncertainty about whether reimbursement lines that previously offset cyber costs would continue. Board members said an $8,000 cap would yield substantial savings if enacted, though they noted the proposal remained under negotiation and could change.
District staff recommended board members and residents contact state legislators and the Senate and House education committee members to press for fiscal and accountability reforms for cyber charters. Several board members volunteered to pursue advocacy and to share the Auditor Generals report with the public.
The board did not take a formal vote on district-level policy during the work session; members directed staff to keep the issue on committee agendas and to provide materials for advocacy events.
Ending: The presentation and discussion closed with a request that the audit and related slides be posted to BoardDocs for public review and with multiple board members urging constituents to contact legislators about cyber charter funding and oversight.
