A request by IDEA Public Schools to significantly expand its Texas footprint is facing heightened scrutiny from state education officials, who are seeking more information on the network's administrative, governance and financial practices following a spate of negative headlines tied to its spending.
In a letter sent two weeks ago to leaders of the state’s largest charter school operator, Texas Education Agency officials requested responses to about 15 questions that stem from criticism leveled against the organization in the past few years. The letter notes that IDEA engaged in spending “that some might consider questionable,” including the use of a private jet for executive travel, and had administrative missteps “that may be indicative of inadequate institutional and financial oversight.”
The state scrutiny comes in response to IDEA’s request to boost its enrollment cap from 63,200 students to 97,985, which would be the largest increase in Texas history, and add 27 campuses throughout the state. IDEA served about 49,500 students at 92 campuses last school year. The network opened its first four campuses in Greater Houston this month.
State educational officials have aided IDEA’s rapid expansion over the past decade, approving seven enrollment cap increases sought by the charter network. The approvals typically came through in April or May.
This year, however, IDEA’s enrollment cap request remains in limbo. Thirteen charter operators that sought cap increases this year received verdicts from the state as of mid-August, while IDEA and one other network still await responses.
“With a proposed expansion of this scale, the agency will require the charter holder to demonstrate that a comprehensive portfolio of institutional and financial controls, policies, practices and procedures are in place” to ensure funds are appropriately spent, TEA officials wrote in their five-page letter to IDEA leaders.
TEA officials have not said when they will issue a decision on IDEA’s request.
IDEA CEO and Superintendent JoAnn Gama on Friday said the organization found the state’s questions “fair and understandable.” IDEA responded to TEA officials Monday with a 13-page letter, outlining dozens of changes made in recent months.
“Whether we’re asking for 35 or 35,000 (new students), I think IDEA’s academic results and the work of our teachers and students we serve really supports our request to open more schools,” Gama said.
On HoustonChronicle.com: Following backlash, IDEA charter schools promises reform
Gama and former CEO Tom Torkelson founded IDEA about 20 years ago in the Rio Grande Valley, implementing a highly structured, results-focused system aimed at getting students from lower-income families into and through college.
The network has produced remarkable academic results, with 99 percent of students graduating from high school and more than 90 percent enrolling in college, both first in the state among large districts with similar demographics. Students in lower grades also outperform their peers on state standardized tests.
While the most ardent charter school opponents long have criticized IDEA’s approach — arguing, in part, that its rigorous academic standards screen out students with greater academic and behavioral needs — the network largely avoided widespread backlash amid its rapid growth.
Then, in December 2019, the Houston Chronicle reported on IDEA’s plans to sign an 8-year lease for a private jet, at a cost of nearly $15 million.
The spotlight triggered scrutiny of the organization and several more reports on IDEA’s spending practices, including its use of luxury boxes at San Antonio’s AT&T Center. Torkelson, a pillar of the state and national charter school movement, resigned in May and received a $900,000 payout as part of a separation agreement.
TEA officials noted these expenditures in its letter to IDEA this month. The agency also highlighted a 2019 federal report that criticized IDEA’s use of a fraction of its grant funds, the organization’s failure on several occasions to meet reporting deadlines for grant money and its debt of about $130,000 to the state retirement system due to a technical error.
On HoustonChronicle.com: IDEA arrived in Houston with high acceptance rates and plenty of skeptics
In response, IDEA officials said the organization has brought on management and governance consultants, instituted about 30 policy changes and added more board oversight to spending decisions, among other improvements.
Gama, who took over as CEO following Torkelson’s resignation, said IDEA’s culture has shifted in recent months to place more emphasis on public accountability. Unlike traditional public schools, IDEA’s governing board is unelected.
“I’ve made it really clear to my team going forward that every expenditure we make has to relate to student success and stand up to public scrutiny,” Gama said.
A denial of IDEA’s expansion request could have a dramatic impact on Texas families, public school districts and the charter network.
IDEA reported a waitlist of nearly 40,000 students in 2019-2020, illustrating the demand for its services. If those families remain in traditional public schools, districts such as Houston ISD would keep more funding tied to student enrollment.
A delay in expansion also would hurt IDEA’s bottom line. In anticipation of a smooth enrollment cap approval process, the network bought properties and started construction on campuses that were expected to open in August 2021.
“We have paused half of those projects, just in case all or none of these expansion amendment requests are approved, and the other half we’re moving really slowly on,” Gama said.
IDEA can afford a one-year delay on those properties, but “it’ll make things really tight,” Gama said. A delay also would require reworking parts of IDEA’s federal expansion grants, which have totaled $267 million over the past five years.
jacob.carpenter@chron.com
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