accs-feb18item09

Page 1 of 5

California Department of Education

Charter Schools Division

Revised 1/2018

accs-feb18item09

ADVISORY COMMISSION ON CHARTER SCHOOLS

AN ADVISORY BODY TO THE STATE BOARD OF EDUCATION

February 2018 Agenda Item #09

Subject

Petition for the Establishment of a Charter School Under the Oversight of the State Board of Education: Consideration of Knowledge Is Power Program East Side High School, which was denied by the East Side High School District and the Santa Clara County Board of Education.

Type of Action

Action, Information

Summary of the Issue

On August 17, 2017, the East Side High School District (ESHSD) voted to deny the Knowledge Is Power Program (KIPP) East Side High School (KESHS) petition by a vote of three to two.

On November 1, 2017, the Santa Clara County Board of Education (SCCBOE) voted to deny the KESHS petition by a vote of four to two. The KESHS petitioners submitted a petition on appeal to the State Board of Education (SBE) on November 28, 2017.

Pursuant to California Education Code (EC) Section 47605(j), petitioners for a charter school that have been denied at the local level may petition the SBE for approval of the charter, subject to certain conditions.

Proposed Recommendation

The California Department of Education (CDE) proposes to recommend that the SBE hold a public hearing to deny the request to establish KESHS, a grade nine through grade twelve charter school, under the oversight of the SBE, based on the CDE’s findings pursuant to EC Sections 47605(b)(1), 47605(b)(2), 47605(b)(5), and California Code of Regulations, Title 5 Section 11967.5.1.

The CDE recommendation is preliminary, pending clarification of various unresolved issues regarding the financial and operation plan and governance structure.

The CDE finds that the KESHS petitioner is demonstrably unlikely to implement the program set forth in the petition. In addition, the petition does not provide a reasonably comprehensive description of multiple required charter elements, including governance structure and suspension and expulsion procedures.

Brief Analysis of the Issue

In considering the KESHS petition, CDE staff reviewed the following:

  • KESHS Petition (Attachment 3)
  • Educational and demographic data of schools where pupils would otherwise be required to attend (Attachment 2)
  • KESHS Budget and Financial Projections (Attachment 4)
  • ESHSD Findings for Denial (Attachment 5)
  • SCCBOE Findings of Denial and Petitioner’s Response (Attachment 6)
  • Appeal of SCCBOE Denial of KESHS Cover Letter Dated November 28, 2017(Attachment 7)
  • Letter Dated November 28, 2017, Describing the Changes to the KESHS Charter Petition to the SBE (Attachment 8)
  • Sample KIPP High School Student Daily Schedules (Attachment 9)
  • El Dorado County Charter Special Education Local Plan Area (SELPA) Letter Dated December 9, 2016, regarding KIPP Bay Area Schools (Attachment 10)
  • KIPP Bay Area Schools Bylaws (Attachment 11)
  • KIPP Bay Area Schools Stamped Articles of Incorporation (Attachment 12)
  • KIPP Bay Area Schools Board Job Description (Attachment 13)
  • KIPP Bay Area Schools Conflict of Interest Code, July 2015 (Attachment 14)
  • KIPP Bay Area Schools Executive Team Job Descriptions (Attachment 15)
  • KIPP Bay Area Schools Emergency Handbook Template (Attachment 16)
  • KIPP Bay Area Schools Pupil Suspension and Expulsion Policy (Attachment 17)
  • KIPP Bay Areas Schools Employee Handbook (Attachment 18)
  • Sample KESHS Annual Goals, Actions, and Outcomes to Achieve State Priorities (Attachment 19)
  • Sample KESHS Application and Registration Materials (Attachment 20)
  • KIPP Bay Area Schools Board of Directors 2016–17 (Attachment 21)
  • KIPP Bay Area Schools Board Profiles 2016–17 (Attachment 22)

Ability to Successfully Implement the Intended Program

The CDE concluded that the multi-year financial plan is not fiscally viable due to negative ending fund balances of $689,307; $1,188,223; and $1,348,050 with no reserve for fiscal years (FYs) 2018–19 to 2020–21, respectively.

The KESHS petition does not contain a detailed narrative and assumption of the salaries and full-time equivalent for certificated and classified positions; therefore, the CDE is unable to determine if the expenditures for certificated and classified salaries are reasonable.

The KESHS multi-year projected budget includes fundraising of $1,315,015; $562,061; and $315,623 for FY 2018–19 through 2020–21, respectively. The fundraising is a soft funding that the CDE excludes from the budget analysis.

The KESHS petitiondoes not project the rental expenditure for FY 2018–19 through 2020–21. Therefore, the CDE is unable to determine the rental expenditure for FY 2018–19 through 2020–21.

The KESHS petition does not contain a detailed budget narrative and assumption for regional support office fees of $156,690; $320,812; and $482,572 for FY 2018–19 through 2020–21, respectively. The CDE is unable to determine what the regional support office fees are for, or if the regional support office fees are reasonable.

District and County Board of Education Findings

A detailed analysis of the petition review is provided in Attachment 1.

On August 17, 2017, the ESHSD denied the KESHS petition based on the following motions (Attachment 5):

  • Motion 1 – It is recommended that the Board of Trustees approve the proposed KESHS charter petition submitted by KIPPBay Area Schools’(KBAS’) authorized lead petitioner, April Chou. The Administration recommends that the KESHS charter be approved for a term of five years, commencing on July 1, 2018, and ending on June 30, 2023. The motion failed by a vote of two to three.
  • Motion 2 –Motion to deny the proposed KESHS charter petition submitted by the KBAS authorized lead petitioner, April Chou. The motion carried by a vote of three to two.

On November 1, 2017, the SCCBOE denied the KESHS petition on appeal based on the following (Attachment 6):

  • Governance Structure – The petition must contain the inclusion and implementation of the above-described interpretations and requirements, with regard to Government CodeSection 1090 and the Political Reform Act of 1974, as well as the inclusion in the Memorandum of Understanding of additional supplemental information consistent with the SCCBOE's expectations of charters under its oversight.
  • The CDE notes that KESHS did not agree to include these interpretations and requirements; therefore,the SCCBOE denied the KESHS petition.

Attachments

  • Attachment 1: California Department of Education Charter School Petition Review Form: KIPP East Side High School (42 Pages)
  • Attachment 2: KIPP East Side High School Data Tables (7 Pages)
  • Attachment 3: KIPP East Side High School Appeal Petition (127 Pages)
  • Attachment 4: KIPP East Side High School Budget and Financial Projections (6 Pages)
  • Attachment 5: East Side Union High School District Findings for Denial (36 Pages)
  • Attachment 6: Santa Clara County Board of Education Findings for Denial and Petitioner’s Response (23 Pages)
  • Attachment 7: Appeal of Santa Clara Board of Education Denial of KIPP East Side High School Cover Letter Dated November 28, 2017 (10 Pages)
  • Attachment 8: Letter Dated November 28, 2017, Describing the Changes to the KIPP East Side High School Charter Petition to the State Board of Education (2 Pages)
  • Attachment 9: Sample KIPP High School Student Daily Schedules (1 Page)
  • Attachment 10: El Dorado County Charter SELPA Letter Dated December 9, 2016,regarding KIPP Bay Area Schools (1 Page)
  • Attachment 11: KIPP Bay Area Schools Bylaws (13 Pages)
  • Attachment 12: KIPP Bay Area Schools Stamped Articles of Incorporation (28 Pages)
  • Attachment 13: KIPP Bay Area Schools Board Job Description (4 Pages)
  • Attachment 14: KIPP Bay Area Schools Conflict of Interest Code, July 2015 (4 Pages)
  • Attachment 15: KIPP Bay Area Schools Executive Team Job Descriptions (14 Pages)
  • Attachment 16: KIPP Bay Area Schools Emergency Handbook Template (20 Pages)
  • Attachment 17: KIPP Bay Area Schools Pupil Suspension and Expulsion Policy (19 Pages)
  • Attachment 18: KIPP Bay Areas Schools Employee Handbook (67 Pages)
  • Attachment 19: Sample KIPP East Side High School Annual Goals, Actions, and Outcomes to Achieve State Priorities (16 Pages)
  • Attachment 20: Sample KIPP East Side High School Application and Registration Materials (26 Pages)
  • Attachment 21: KIPP Bay Area Schools Board of Directors 2016–17 (2 pages)
  • Attachment 22: KIPP Bay Area Schools Board Profiles 2016–17 (8 pages)