Appeals court backs comptroller on charter school audits |
On Board Online • Albany Update • February 2, 2009
By Marc Humbert
Senior Writer
A state appeals court has upheld the constitutionality of a 2005 state law requiring the state comptroller to audit New York’s charter schools.
The 4 -1 ruling by the Appellate Division of state Supreme Court on Jan. 15 overturned an April 2008 decision by state Supreme Court that had blocked the charter school audits.
The New York Charter School Association said it would appeal the latest ruling to the state Court of Appeals, New York’s top tribunal. That could delay any resumption of the audits.
State Comptroller Thomas DiNapoli, praising the Appellate Division ruling, said he has a duty to “oversee the expenditure of tax dollars, wherever they go.”
“Taxpayers have a right to know how the $140 million in taxpayer money that goes to charter schools each year is spent,” DiNapoli added.
Peter Murphy, director of policy and communications for the Charter Schools Association, said the battle was about more than just who should oversee the operation of charter schools.
“If allowed to stand, the comptroller will have unchecked ability to audit anyone or any entity in the state – something he’s eager to do, but not envisioned by the writers of the (state) constitution,” Murphy told On Board.
NYSSBA Executive Director Timothy G. Kremer welcomed the appeals court ruling.
“Charter schools operate with public funds that come out of the budgets of our public school districts,” he said. “This is taxpayer money and the public has a right to know if it is being spent appropriately. When it comes to fiscal oversight, charter schools should have to face the same scrutiny that our public schools do.”
At issue is the 2005 law enacted in the wake of the Roslyn school financial scandal on Long Island. The legislation, among other things, required the state comptroller to audit all public school districts, BOCES and charter schools by March 31, 2010. A report from DiNapoli issued at the end of December said he would meet that deadline, with the exception of the charter school audits.
As of last year, there were 115 charter schools operating in New York State. They are publicly financed, but free of many of the restrictions that apply to regular public schools.
While the courts have previously limited the power of the state comptroller to conduct audits, the Appellate Division ruling said that in this instance those limitations were not applicable.
“Two important differences are that this case involves the compelling governmental function of providing public education and directly implicates vast expenditures of taxpayers’ money,” wrote Justice John Lahtinen for the court’s majority.
But Justice Robert Rose, in a dissenting opinion, said charter schools can’t be treated the same as public schools for auditing purposes because they “receive public funds only indirectly through tuition paid by local school districts.”
“Unlike school districts and other political subdivisions, charter schools have no taxing authority, their budgets are not publicly voted upon, they are not governed by publicly elected boards or officials, and there are no limitations on the geographical areas they serve,” Rose added.