West Philadelphia Achievement Charter Elementary School v. School District of Philadelphia

132 A.3d 957, 635 Pa. 127, 2016 Pa. LEXIS 216
CourtSupreme Court of Pennsylvania
DecidedFebruary 16, 2016
StatusPublished
Cited by13 cases

This text of 132 A.3d 957 (West Philadelphia Achievement Charter Elementary School v. School District of Philadelphia) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
West Philadelphia Achievement Charter Elementary School v. School District of Philadelphia, 132 A.3d 957, 635 Pa. 127, 2016 Pa. LEXIS 216 (Pa. 2016).

Opinions

OPINION

Chief Justice SAYLOR.

In this matter we address whether legislation designed to help the Philadelphia School District recover from financial hardship violates the non-delegation rule.

Public schools in Pennsylvania are governed by the Public School Code of 1949.1 In 1959, Article VI(F) was added to the code to assist school districts experiencing financial distress. See 24 P.S. §§ 6-691 to 6-695 (1959) (the “Distress Law”).2 Re[959]*959sponding to adverse financial conditions in the Philadelphia School District (the “School District”)) the Legislature again amended the School Code in the late 1990s by adding provisions to the Distress Law tailored to school districts of the first class, ie., the School’District. See Act of Apr. 27, 1998, P.L. 270, No. 46 (“Act 46”). Act 46 augmented Section 691 of the School Code so that the Secretary of Education could declare the School District distressed if it failed certain budgetary requirements or would fail to provide an educational program in compliance with the School Code, the State Board of Education’s regulations, or the Secretary’s standards. See 24 P.S. § 6-691(e). Act 46 also added Section 696 to the Distress Law, which provided that when the School District was declared distressed under Section 691(c), the Secretary was to appoint a chief executive officer (“CEO”) to oversee it. See id. § 6-696 (1998). The CEO was given-the power to suspend or revoke charters and, notably for present purposes, to suspend regulations of the State Board of Education and “the requirements of this act,” ie., the School Code. Id. § 6-696(i)(3) (1998).

In October 2001, Section 696 was again amended. These revisions provide that on a declaration of distress, a five-member School ' Reform Commission (“SRC”)— mostly appointed by the Governor — is to be named to oversee the School District, thus assuming various powers formerly assigned to the CEO. The amendments give the SRC, which is an instrumentality of the school district exercising the school board’s authority, sweeping powers, including “all powers granted to the superintendent by law and a special board of control under section 693[.]” 24 P.S. § 6-696(i). Of central relevance here, they also transfer to the SRC the- suspension powers previously given to the CEO.

During the 2001-2002 school year, the Schooi District experienced a substantial budgetary shortfall. In December 2001, the Secretary declared the district to be distressed per Section 691(c). The Philadelphia School Board’s powers were suspended and the present SRC was appointed and assumed governance of the district.

Meanwhile, Petitioner, the West Philadelphia Achievement Charter Elementary School (the “Charter School”) had applied for a charter. In 2001, the School District granted ,it a five-year charter which the SRC renewed for an .additional five years in 2006. As the charter’s expiration approached in 2011, the Charter School again sought renewal. The SRC responded by passing Resolution 20 of 2011 (“SRC-2011-20”).

SRC-2Ó11-20 specified that the Charter School’s charter was renewable for an additional five years subject to certain conditions, It also provided that, “the SRC, pursuant to section 6-696(i)(3) of the Public School Code, partially suspends the corrective action status provision in Section 17-1729-A(a.l) of the Charter School Law_” SRC-2011-20 at 2.3 Section 17-1729-A(a.l), the suspended provision, states that when a charter school located in a first class school district is in corrective action status — meaning it has failed to meet adequate yearly progress for at least four consecutive years, see 24 P.S. § 1-102 — and seeks to renew its charter, the school district’s governing ]body may place reasonable conditions in the charter that require the school to meet student performance targets within stated time [960]*960periods. See 24 P.S. § 17-1729-A(a.l). However, the Charter School was not in corrective action status. Thus, the SRC’s suspension of Section 17-1729-A(a.l) had the effect of removing the requirement that a charter school be in corrective action status prior to the SRC placing conditions in a renewed charter. SRC-201Í-20 also set forth other requirements for the renewal of the charter, including that the Charter School must agree to .enroll no more than 400 students notwithstanding that, under the Charter School Law, charter schools are not subject to school-district-imposed enrollment caps. See 24 P.S. § 17-1723-A(d)(l) (providing that a school district’s governing authority may not impose an enrollment cap on a charter School absent the charter school’s consent). '

The Charter School refused to sign a charter renewal agreement containing the terms of SRC-2011-20. Although the 2006 charter expired in 2011, the Charter School continued to operate. Additionally, its enrollment exceeded 400 students. The School District began' reimbursing the Charter School for only 400' students. Thereafter, the Charter School requested, and ultimately received, funding for the additional students from the Department of Education pursuant to Section 1725-A(a)(5) of the Charter School law. That provision requires a school district to pay a charter school for eách enrolled student; it also states that, in the event the district fails to make such payment, the Secretary must deduct the deficiency from Commonwealth payments that would otherwise be made to the district. See 24 P.S. § 17-1725-A(a)(5). The consequence is that, for the Charter School’s enrollment in excess of 400 students, some monies that the Department would have paid over to the School District were instead provided to the Charter School.

The School District’s financial' condition continued to decline between 2011 and 2013. The SRC reduced expenditures and made staff reductions. However, these retrenchments were insufficient to keep pace with revenue shortfalls. Thus, the SRC passed Resolution 1 of 2013 (“SRC-2013-1”), stating that the School District was in the midst of an untenable financial crisis. SRC-2013-1 suspended a number of sections of the Charter School Law, as well as “any applicable . regulations,” . on the grounds that the SRC “desire[d] to remove limitations on its power to suspend charters[.]” SRC-2013-1 at 4. One category of suspended provisions concerned the nonre-newal or revocation of charters, in particular: Section 17-1729-A(a), which provides the causes and grounds for nonrenewal or revocation; Section 17-1729-A(c), which requires that a public hearing be held regarding any decision to- revoke or not renew a charter; Section 17-1729-A(d), which establishes a procedure for charter schools to appeal a school district’s revocation or nonrenewal determination to the State Charter School Appeal Board; and Section 17-1729-A(f), which clarifies that, while an administrative appeal is ongoing, the school’s charter remains in effect. The resolution indicated that these additional suspensions “shall not be effective until a policy containing a set of standards and procedures is adopted by the [SRC].” Id. at 5.

SRC-2013-1 also expanded the SRC’s authority to impose student performance targets on charter schools. As noted, Section 17-1729~A(a.l), permits the imposition of student performance targets only when the charter school is in corrective action status.

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132 A.3d 957, 635 Pa. 127, 2016 Pa. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-philadelphia-achievement-charter-elementary-school-v-school-district-pa-2016.