For more information contact: Michael Howard 651-296-8873
ST. PAUL – With an economic recession and serious state budget, State Representative John Lesch (DFL – St. Paul) said it’s more important than ever to ensure education resources are being spent efficiently and transparently. Citing the recent fraud at a school in Minneapolis that cost taxpayers $3 million, as well as systemic problem detailed in a Legislative Auditor’s report, Lesch has proposed a series of reform designed to make Minnesota’s charter schools more accountable for the public dollars they receive. Lesch said significant reform is needed to prevent undetectable fraud that may be occurring in charter schools throughout the state. He has proposed a two year moratorium on new charters and contract alternatives until accountability measures can be put in place.
“The public has right to know where their tax dollars are being spent in our public schools and right now that is not happening with our charter schools," said Lesch. “If we can’t tell the public where we are spending their money then we shouldn’t be spending it. It’s that simple.”
Lesch has proposed the 2009 Public School Reform and Accountability Act, which is a series of specific reforms that will not only make charter schools more accountable, but put in place criminal penalties for people who defraud the state out of public education dollars. State Senator Kathy Saltzman will be the chief author of the legislation in Senate. Some the proposed reforms to charter schools include: curriculum approval by an elected school board, licensing charter school administrators the same way as other public schools administrators and creating criminal penalties for falsification of professional credentials. Lesch said the reforms coincide with one of the broad themes this legislative session, which is finding reforms and efficiencies in state government.
“There is growing need to crack down on waste and misspent resources in state government, especially with this budget deficit,” said Lesch. “Charter schools are an area where a lack of accountability has created a system ripe for mismanagement and we have to put a stop to it.”
Lesch said the fraud at the Center for Training and Careers in Minneapolis, is an example of why significant changes are needed. In that situation Lou Gonzalez, the school operator, billed over $3 million from a private, for-profit company called “Little Feathers,” which he owned. Gonzalez wasn’t required to provide specific details as to what these resources purchased and has since disappeared. The Center for Training and Careers closed in 2008.
“Here you have Minnesota’s own ‘Music Man,’ strolling into town selling a bill of goods and defrauding us out of millions,” said Lesch. “We need to make sure the Harold Hill’s of the world aren’t allowed to commit fraud with public tax dollars intended to be spent educating our kids. And if they do commit fraud, we should have measures in place to catch them and prosecute them.”
The 2009 Public School Reform and Accountability Act include the following reforms:
1. Define end-of-year fund balance for qualifications of nonprofit as a charter school sponsor.
2. Approval of curriculum, budget and all administration contracts by publicly elected body of serving district.
3. 5 year limit on charter/contract school pending proof that it still serves one of six purposes require under existing law.
4. Reduction of state aid if conflict of interest prohibitions are not heeded.
5. Administrators of charter schools must be licensed just as public school administrators are required to be licensed.
6. Criminal penalties for falsification of professional credentials, assets, or other material facts by made by developers.
7. Civil penalties for failure to submit annual independent audits as currently required by statute.
8. One year limit on community expert licenses for charter schools and contract alternatives.
9. Two year moratorium on new charters and contract alternatives.
If you have further questions for Rep. Lesch he can reached at (651) 296-4224 or by e-mail at rep.john.lesch@house.mn
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