Roosevelt charter school's $7M raises controversy

Long Island's biggest and best-performing charter school has banked $7 million toward building a new high school - expansion that would be a regional first.

But the swelling cash balance at Roosevelt Children's Academy Charter School is under fire from a state teachers union involved in contract talks at the school. The union says the school should devote more public funding to instruction and other student services.

The clash reflects a statewide battle over the twin questions of whether charter schools should be allowed to expand in numbers, and whether their finances should be more closely monitored by the state. Such schools operate independently, but receive funding from public school districts, based on numbers of students attracted.

"These are public dollars that should be spent on kids, and we're not seeing that," said Richard Iannuzzi, president of the New York State United Teachers union.

Academy officials insist that instructional spending is well-targeted. As evidence, they cite students' test performance.

Ranks 4th statewide

Children's Academy ranks fourth among charter schools statewide on the latest state English tests, and well above traditional schools in Roosevelt, Nassau County and the state.

"We keep raising the bar, you know," said Robert Francis, the academy's board chairman and one of its founders.

Children's Academy opened in 2000 as the Island's first charter school. It has 536 students in grades 3-8. About 90 percent are African-American, with 79 percent eligible for subsidized lunches due to low family incomes.

Academy officials hope within the next year or two to obtain state and town permission to build a high school on a lot across from their headquarters. That school would enroll 200 to 300 students, and cost an estimated $6 million to $7 million to build. It would be the Island's first charter high school - 29 schools elsewhere in the state include some or all high school grades.

Many area parents seek such a school, so their teens won't have to attend struggling traditional high schools. The state last month listed Roosevelt High as one of 57 "persistently lowest achieving" schools.

Financial statements filed with the state show the academy's revenue totaled $9.2 million last year, while spending totaled $6.1 million. Meanwhile, the school's cash balance grew to $7.7 million, from $5.6 million in 2008 and $1.9 million in 2007.

Reserves called essential

State University of New York officials in Albany, who monitor Children's Academy finances, say its cash reserves are essential for physical expansion, and also as a cushion against state financing freezes. Those officials note the school had a waiting list of nearly 300 applicants last year. Students are chosen by lottery, as in other charter schools.

"It's a strong model that they plan to expand into high school grades," said Jonas Chartock, executive director of SUNY's Charter Schools Institute.

Under state law, charter schools hire private accounting firms to conduct audits that are filed with the state. School districts do the same.

But in 2005, the state comptroller's office launched its own audits of districts, in the wake of revelations that Roslyn school officials had embezzled $11.2 million.

Initially, this extra scrutiny was aimed at charter schools as well. But the state's Court of Appeals ruled that unconstitutional in June, after charter schools sued.

Last month, Albany lawmakers failed to reach a compromise on proposed legislation that would have resumed state audits of charter schools while expanding their number from 200 to at least 400. The fight is expected to resume this spring.