Charter Management Organizations and the Need for Reform
Two recent audits and a guilty plea show strong evidence of the need for reform of Pennsylvania’s charter law to provide for more effective oversight of the substantial public money going to the charter sector. The Inspector General of the US Department of Education and the Pennsylvania Auditor General have both recently concluded that Pennsylvania’s charter law does not provide sufficient oversight or control over charter management organizations. CMOs are organizations that manage charter schools. Although charter schools in Pennsylvania must be organized as non-profits, CMOs can be and often are for-profit organizations. The Pennsylvania charter law doesn’t mention them because the legislature apparently did not envision such entities in the late 1990s when it wrote the law. But they have become an increasingly important part of the charter sector. The two audits highlight challenges that the growth and operation of CMOs present to effective oversight of public funds going to charter schools. The Office of Inspector General of the U.S. Department of Education found that “charter school relationships with CMOS posed a significant risk to Department …










