Meeting of the Board of Regents | May 2008

THE STATE EDUCATION DEPARTMENT / THE UNIVERSITY OF THE STATE OF NEW YORK / ALBANY, NY 12234

 

TO:
FROM:	Johanna Duncan-Poitier
SUBJECT:	Charter Schools: Proposed Second Renewal for Riverhead Charter School
DATE:	May 9, 2008
STRATEGIC GOAL:	Goals 1 and 2
AUTHORIZATION(S):

SUMMARY

 

Issue for Decision

 

Should the Regents approve the staff’s recommendations concerning the proposed second renewal for the Riverhead Charter School (Riverhead)? 

 

Reason(s) for Consideration

 

              Required by State statute, Education Law §2852.

 

Proposed Handling

 

This question will come before the EMSC Committee in May 2008 for action.  It will then come before the full Board for final action in May 2008.

 

Procedural History

 

The New York Charter Schools Act of 1998 requires the Board of Regents (“Board”) to review applications for both new charter schools and the renewal of existing charter schools that are submitted to it in accordance with the standards set forth in subdivision two of New York State Education Law §2852.  After review, the Board may either (a) approve an application and issue a charter or a renewal charter for a term of up to five years, or (b) deny the application.

 

In addition, New York Education Law §2852(7) provides that revisions of charter school charters shall be made only upon approval of the charter entity and the Board of Regents in accordance with the provisions of the law applicable to the issuance of charters themselves.  With respect to charter schools directly chartered by the Board, it may either approve a proposed revision or deny it.  

 

Background Information

 

              We have received a submission of the proposed second renewal charter from the Riverhead Charter School (Riverhead).  This will be presented to you at your May 2008 meeting.

 

              The Riverhead Charter School is located in Riverhead, on the eastern end of Long Island.  Edison Schools, Inc. will serve as the management partner through June, 2008.  The School’s Board of Trustees (“the BOT”) has decided to terminate its contract with Edison and will manage the charter school on its own without a management partner. The School currently serves a maximum enrollment of 300 students for the 2007-08 school year. 

 

              The School is operating under its first renewal charter, which will end July 10, 2008.  The first renewal charter was issued for less than five years due to concerns involving leadership and governance, the provision of special education services, and fiscal stability.  Specifically, the School had not been able to demonstrate adequate governance or leadership, the School was significantly under-enrolled, and student retention was weak during the first renewal term.  The School’s audit for the year ending June 30, 2007 revealed several material weaknesses and significant deficiencies.

 

              In July 2007, the School submitted an application for a second renewal term of five years, but withdrew its request prior to the Board of Regents taking action in December 2007, to give the BOT more time to address the identified issues and concerns.  During that time, the BOT expanded its membership and took steps to acquire the necessary training and technical assistance it will need to adequately oversee the School.  The BOT has addressed many of the concerns raised in its 2006-07 fiscal audit and continues to address other concerns, such as developing appropriate internal controls and working with a local bank to restructure its debt and ensure the School’s fiscal stability.  The BOT has worked closely with Department staff to identify and address concerns, and it has reached out to the area school districts to address issues pertaining to student enrollment and billing. The School has hired a Site Operations Manager to attend to the School’s business affairs, and a Dean of Students to oversee student discipline and all associated reporting responsibilities. 

 

              The School has met its goals in English Language Arts and Math which were to increase by five percent annually the percent of students reaching proficiency on State Assessments in English Language Arts and Math.  While the School did not meet this goal in either Science or Social Studies, the School still has 62.5 percent of its 4th grade students scoring as proficient on the 2006-07 New York State Assessment in Science and 65.4 percent of its 5th grade students scoring as proficient on the 2006-07 New York State Assessment in Social Studies. The School made AYP and its 2005-06 Accountability Status is “Charter School in Good Standing.”

 

              The School is requesting a one-year renewal so that it can implement the proposed new procedures and give them time to take effect, before asking for a third renewal. 

 

              The Riverhead Central School District held a required public hearing regarding the proposed renewal application from the Riverhead Charter School on March 25, 2008.  On April 1, 2008, the Department received copies of the written statements presented at the hearing from the Superintendent of the Riverhead Central School District, the Superintendent of the Longwood Central School District, and resident of Riverhead Central School District.  Copies of these are available for your review in the Regents Office. 

 

              The letters from the two local Superintendents cite the funding mechanism for charter schools and the resulting fiscal impact on their districts, as well as the academic performance of students enrolled in the charter school, among the reasons for their objections to the renewal application.  The letter from a resident of the Riverhead Central School District supports parental choice to decide whether the charter school is an alternative for their children and supports the continuation of the Riverhead Charter School. 

 

              Staff has considered all public comments received.  Staff recommends that the School’s charter be renewed for an 11 and a half-month term (July 11, 2008 – June 30, 2009).   

 

Recommendation

 

              VOTED: That the Board of Regents approves the renewal application of the Riverhead Charter School, that a second renewal charter be issued, and that its provisional charter be extended for a term up to and including June 30, 2009.

 

Reason for Recommendation

 

(1) The charter school meets the requirements set out in Article 56 of the Education Law and all other applicable laws, rules, and regulations; (2) the charter school has demonstrated the ability to operate in an educationally and fiscally sound manner; (3) approving the proposed renewal is likely to improve student learning and achievement and materially further the purposes set out in subdivision two of section twenty-eight hundred fifty of Article 56 of the Education Law; and (4) granting the application would have a significant educational benefit to the students expected to attend the charter school. 

 

Timetable for Implementation

 

The Regents action for the Riverhead Charter School is effective immediately.

 

 

New York State Education Department

 

Summary of Charter School Renewal Information

 

Summary of Applicant Information

 

 

 

 

Address:  3685 Middle Country Road, Calverton, NY 11933-1801

 

Board of Trustees President: Kathryn Liddle

 

Requested Renewal Period: July 11, 2008 – June 30, 2009

 

District of Location: Riverhead Central School District

 

Charter Entity:  Board of Regents

 

Institutional Partner(s): None

 

Management Partner(s): None

 

Grades Served/ Projected Enrollment per Year:         

 

2008-09:          K-6, 369

Renewal Application Highlights

 

Evidence of Educational Soundness/ Attainment of Educational Objectives

• The School has met its goals in English Language Arts and Math: to increase by five percent annually the percent of students reaching the proficiency level on State Assessments in English Language Arts and Math.
• The Riverhead Charter School (“the School”) has not met this same goal in Science or Social Studies, yet it still has 62.5 percent of the 4th grade students scoring as proficient on the 2006-07 New York State Assessment in Science, and 65.4 percent of the 5th grade students so scoring on the New York State Assessment in Social Studies.
• The School made AYP and its 2005-06 Accountability Status is “Charter School in Good Standing.”
• Although the School has not yet been able to meet any of its annual enrollment targets thus far, a concrete and comprehensive plan to address this issue in the immediate future will be created by the Board of Trustees.
• Record-keeping and procedures for tracking enrollment are being revised and strengthened.

 

Evidence of Fiscal Soundness/Projected Fiscal Impact

• The School has accumulated debt in the amount of $4,060,773 and is working with a bank to refinance the debt.
• The School’s audit for the year ending June 30, 2007 revealed the existence of several material weaknesses and significant deficiencies which the School has addressed.
• The Board of Trustees has engaged the services of the National Charter School Institute to provide training and technical assistance to it, so that it can develop the skills necessary to oversee the School in the absence of a management company.
• The Board is developing a plan for generating discretionary funds. 
• Projected fiscal impact for the School, and its change in net assets, are shown below.

2008-2013

District		Percent Impact*
			2008-09		2009-10		2010-11		2011-12		2012-13
Riverhead CSD		5.15		5.23		5.30		5.38		5.46

*This assumes that all students will come from the Riverhead Central School District, which has historically not been the case.  Students have been reported to have been enrolled from as many as 11 other districts.  However, it cannot be predicted with any accuracy how many students may continue to enroll from other area districts.  Projections are based on requested enrollment, AOE per district (inflated 4.5 percent annually), and the District’s 2007-08 budget (inflated 3.0 percent annually).  Projections are subject to fluctuation in actual enrollments, FTE enrollments, AOE, and district budgets.

 

Riverhead
Charter School

Change in Net Assets 2004-05 Through 2005-06*

 

Year	Change in Net Assets
2004-05	($593,928)
2005-06	($150,086)
2006-07	$136,337

*Source: Audited Financial Statements provided as a part of each Annual Report. 

 

Evidence of Parent and Student Satisfaction

• The Department has received over 120 letters of support from parents whose children attend the School.  Parents express that they themselves have become more involved in the education of their children in the School and at home and that the children are more engaged, motivated, and disciplined in learning as a result of attending the charter school.  

 

 

 

 

Recommendation

 

That the Board of Regents approves the renewal application of the Riverhead Charter School, that a second renewal charter be issued, and that its provisional charter be extended for a term up to and including June 30, 2009.

 

Reason for Recommendation

 

(1) The charter school meets the requirements set out in Article 56 of the Education Law and all other applicable laws, rules, and regulations; (2) the charter school has demonstrated the ability to operate in an educationally and fiscally sound manner; (3) approving the proposed renewal is likely to improve student learning and achievement and materially further the purposes set out in subdivision two of section twenty-eight hundred fifty of Article 56 of the Education Law; and (4) granting the application would have a significant educational benefit to the students expected to attend the charter school. 

 

 

 

 

 

Riverhead
Charter School

ELA Results

 2001-07

 

Charter School and District of Location	Grade 3				Grade 4				Grade 5				Grade 6				Grade 7				Grade 8
	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4
2001-02
Riverhead CS Riverhead CSD					29 6	36 33	29 46	7 15
2002-03
Riverhead CS					12	33	46	9
Riverhead CSD					5	25	47	23
2003-04
Riverhead CS					8	46	42	4
Riverhead CSD					5	29	55	11
2004-05
Riverhead CS					5	32	58	5
Riverhead CSD					4	25	52	20
2005-06
Riverhead CS	11	18	68	3	35	29	32	3	13	47	27	13
Riverhead CSD	11	30	56	3	10	23	60	6	8	29	56	7
2006-07
Riverhead CS	8	36	57	0	6	31	61	3	4	39	54	4	0	56	33	11
Riverhead CSD	9	26	58	7	6	26	60	8	5	30	59	6	2	34	56	8

 

Math Results

 2001-07

 

Charter School and District of Location	Grade 3				Grade 4				Grade 5				Grade 6				Grade 7				Grade 8
	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4	L1	L2	L3	L4
2001-02 Riverhead CS Riverhead CSD					23 5	46 25	15 53	15 18
2002-03
Riverhead CS					9	31	44	16
Riverhead CSD					3	17	50	31
2003-04
Riverhead CS					4	39	48	9
Riverhead CSD					4	22	50	25
2004-05
Riverhead CS					0	21	63	16
Riverhead CSD					2	13	48	37
2005-06
Riverhead CS	8	13	49	31	35	24	35	6	47	13	33	7
Riverhead CSD	7	19	52	22	8	14	51	26	11	19	51	20
2006-07
Riverhead CS	2	17	62	19	3	18	61	18	4	36	52	8	25	50	13	13
Riverhead CSD	4	13	57	25	6	10	55	29	8	17	54	21	9	16	54	21

 

 

 

 

 

 

 

 

 

RCS Performance on state English Language Arts Assessment
Grade Level	Percentage of Students Scoring at Level of Proficiency (Levels 3 and 4)		Percentage Change (+/-)	Met Target?
	2005 – 2006	2006 - 2007
3	71.0	56.6	- 14.4	No
4	35.3	63.9	+ 28.6	Yes
5	40.0	57.6	+ 17.6	Yes
6	N/A	44.4*	N/A	N/A

 

              *Represents baseline scores for 6th grade in this charter term, since there was no 6th grade in the 2005-06 school year.

 

 

RCS Performance on state MATHEMATICS Assessment
Grade Level	Percentage of Students Scoring at Level of Proficiency (Levels 3 and 4)		Percentage Change (+/-)	Met Target?
	2005 – 2006	2006 - 2007
3	79.5	80.7	+ 1.2	No
4	41.2	78.9	+ 37.7	Yes
5	40.0	60.0	+ 20.0	Yes
6	N/A	25.0*	N/A	N/A

 

 

 

 

 

 

 

 

 

 

 

 

*Represents baseline scores for 6th grade in this charter term, since there was no 6th grade in the 2005-2006 school year.

 

 

 

RCS Performance on state SCIENCE Assessment
Grade Level	Percentage of Students Scoring at Level of Proficiency (Levels 3 and 4)		Percentage Change (+/-)	Met Target?
	2005 – 2006	2006 - 2007
4	60.0	62.5	+ 2.5	No

 

 

 

RCS Performance on state SOCIAL STUDIES Assessment
Grade Level	Percentage of Students Scoring at Level of Proficiency (Levels 3 and 4)		Percentage Change (+/-)	Met Target?
	2005 – 2006	2006 - 2007
5	82.4	65.4	- 17.0	No