The Ohio Department of Education (ODE) is on the hook for a potential payout of tens of millions of dollars to school districts whose students opted to attend charter schools unless the Ohio Supreme Court rules on behalf of the state. The State Board of Education has until May 12 to appeal to the high court the question of whether the Cincinnati Public Schools or the charter schools within its borders should report how many students are enrolled in those charter schools.
Big bucks ride on the answer. While, Cincinnati stands to gain an extra $4.6 million (here), if the decision of lower courts stands, the department could be liable for an extra $50 million statewide. In Dayton schools could be looking at a $14 million state check, maybe more (here).
A spokesman for Ohio Attorney General Marc Dann said no decision on an appeal has been made.
Cincinnati Public Schools sued the state board when ODE started using charter-school numbers instead of district numbers to tote up the amount of money the district should receive. When a child transfers from a Cincinnati district school to a charter, his or her state funds follow to the charter school. Cincinnati district officials contend there were fewer students in charter schools than the charters were reporting and that the district was short-changed. The suit covers counts made from 2005 to 2007.
Lower courts (most recently on March 28) ruled in favor of Cincinnati Public Schools, agreeing that the law doesn't allow the state to base per-pupil payments on figures that come from charter schools. The state, however, argues a change in state law last year allows it to use numbers provided directly by charter schools. Because districts receive state funds based on the number of students they serve, an accurate count in both traditional district schools and public charter schools is vital. Should the department lose its appeal to the Supreme Court, it's unclear where it would come up with $50 million because it already has had to slash as much as $100 million from its spending to help balance the state budget. If the department loses, there is the possibility it could go after some charter schools for the money.
This is all quite fascinating in light of Dann's discussion April 16 in Columbus with the Federalist Society about potential conflicts of interest because of the attorney general's role as counsel for all state agencies (which he played off as inter-office competition that benefits the greater good), not to mention the move by his office against charters based on the charitable trust law. Specifically, he's suing charter schools, yet he is the ultimate decision-maker on whether to appeal a potential $50 million dollar judgment against them.
