Dc Association of Chartered Public Schools v. District of Columbia

134 F. Supp. 3d 525, 2015 U.S. Dist. LEXIS 133213, 2015 WL 5776130
CourtDistrict Court, District of Columbia
DecidedOctober 1, 2015
DocketCivil Action No. 2014-1293
StatusPublished

This text of 134 F. Supp. 3d 525 (Dc Association of Chartered Public Schools v. District of Columbia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dc Association of Chartered Public Schools v. District of Columbia, 134 F. Supp. 3d 525, 2015 U.S. Dist. LEXIS 133213, 2015 WL 5776130 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

TANYA S. CHUTEAN, United States District Judge

Plaintiffs bring this action challenging the District of Columbia’s alleged inequitable funding of Washington, D.C. public charter schools as compared to traditional D.C. public schools (“DCPS”). Plaintiffs argue that the District is required by the School Reform Act to fund all D.C. public schools — charter schools and DCPS alike — according to a formula based on the operating costs of the schools multiplied by the number of students at each charter school and in DCPS as a whole. Plaintiffs allege that the District has violated the School Reform Act by routinely funneling money for certain expenses to DCPS outside of the statutory formula, thereby depriving charter schools of money they would normally receive if these expenses were included in the formula calculation. Plaintiffs bring three claims: violation of Article I, Section 8 of the United States Constitution and the Home Rule Act (Count I); violation of the Supremacy Clause of the United States Constitution (Count II); and violation of the School Reform Act (Count III).

Defendants filed a motion to dismiss for failure to state a claim upon which relief can be granted. Defendants argue that where Congress passes a law which applies exclusively to the District, as both parties agree the School Reform Act does, that law enjoys no superiority over enactments of the D.C. Council (the “Council”) such as the school funding actions being challenged here. Therefore, according to Defendants, the District cannot have violated the Home Rule Act or the School Reform Act because the Council is permitted to amend or repeal the School Reform Act. Defendants also argue that the School Reform Act is not the supreme law of the land because Congress, in passing the School Reform Act, was acting as a local legislature for the District, and therefore Plaintiffs cannot bring a Supremacy Clause claim.

Because it is not yet clear whether the actions of the Council impermissibly conflict with the will of Congress as set forth in the Home Rule Act and School Reform Act, Defendants’ motion to dismiss Counts I and III is denied. However, because the court finds that the Supremacy Clause does not apply to Acts of Congress passed pursuant to Article I, Section 8, Clause 17 of the Constitution, and which operate exclusively within the District, Defendants’ motion to dismiss Count II is granted.

I. BACKGROUND

In 1996, Congress embedded within its yearly appropriation bill the District of Columbia School Reform Act of 1995 (the “School Reform Act”), Pub.L. No. 104-134, § 2002, 110 Stat. 1321 (1996) (codified as *527 amended at D.C.Code § 38-1800.02 et seq.), overhauling the District’s educational system. As the Senate Report to the bill explained, “[d]espite the best efforts of the Board of Education and the dedication of the superintendent, the D.C. Public Education System is broken.” S.Rep. No. 104-144, at 6 (1995). The School Reform Act attempted to address this broken system in myriad ways, including by creating commissions to study and implement reforms, instructing various stakeholders to create a master plan for moving forward, and setting out a funding mechanism to address dilapidated facilities. Importantly for this case, the School Reform Act also established public charter schools in the District. “Unlike traditional public schools, charter schools operate under • charters or contracts with school districts, State education agencies, or other public institutions. They are designed by groups of parents, teachers, school administrators, other members of the community, and private corporations and are held accountable for student performance under the terms of their contracts. Also, charter schools operate with considerable autonomy from external controls such as district, State, and union requirements.” Id. at 7.

Congress designed a formula in the School Reform Act to fund both DCPS and charter schools. As the House Report explained, “[t]his uniform formula will be used to provide operating budgets on the basis of enrollment for the school system as a whole and for individual public charter schools. According to [a] January 1995 report by [the D.C. Committee on Public Education], ‘[o]f the 40 largest school systems in the country, the District ranked first in per pupil expenditures.’ In the context of low student academic achievement, this information is disturbing and as a result the District of Columbia is directed to establish a uniform and efficient formula for funding public education. The same formula will be used for students enrolled in individual public charter schools authorized in subtitle B of this agreement and the District of Columbia Public School System ... Such a formula will clarify and focus decisions regarding funding for public education around students’ needs.” H.R.Rep. No. 104-455, at 146 (1996), http://www.gpo.gov/fdsys/pkg/ CRPT-104hrpt455/pdf/CRPT-104hrpt455. pdf (citation omitted). The formula involves multiplying a uniform dollar amount reflective of school operating expenses (as calculated by the Mayor and the D.C. Council in consultation with the Board of Education and the Superintendent) by the number of students in DCPS and each individual charter school. D.C.Code § 38-1804.01(b).

Plaintiffs are two charter schools located in the District and an association that represents 39 District charter schools. The crux of this case is Plaintiffs’ allegation that the District has creatively circumvented the funding formula in order to supplement DCPS’s budget, to the detriment of charter schools. Plaintiffs identify four broad categories where they allege the District is violating the School Reform Act’s uniform funding formula provision:

Enrollment Calculations: Defendants fail to provide D.C. Charter Schools with uniform per-student funding when they fund D.C. Charter Schools based on actual, audited student enrollment, and reduce funding to D.C. Charter Schools if actual enrollment is lower than projected, while funding DCPS based on projected, and often inflated, student enrollment ...;
Supplemental Funding: Defendants fail to provide D.C. Charter Schools with uniform per-student funding when they fund certain DCPS operating expenses by providing supplemental funding outside the uniform per-student funding formula without accounting for such *528 funding in calculating the per-student payments made to D.C. Charter Schools for their operating expenses. Supplemental Funding includes, but is not limited to, enacting legislation to provide supplemental appropriations to DCPS but not to D.C. Charter Schools ... reprogramming and transferring to DCPS funds previously appropriated to other D.C. government agencies ... and paying DCPS’s debts directly ...;
Annual Budget Funding: Defendants fail to provide D.C. Charter Schools with uniform per-student funding when they fund certain DCPS operating expenses through the District’s annual budget process without accounting for such funding in calculating the per-student payments made to D.C. Charter Schools for their operating expenses.

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134 F. Supp. 3d 525, 2015 U.S. Dist. LEXIS 133213, 2015 WL 5776130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dc-association-of-chartered-public-schools-v-district-of-columbia-dcd-2015.