Charter Schools: Stockpiling Money, or Good Stewards of their Finances

In Massachusetts, there is a big problem, somewhere in the neighborhood of 2 million dollars. It seems that the charter schools in this state have the audacity to have a cash surplus, and they are actually being attacked for it.

Imagine, you work hard to save your money, and spend what you have responsibly. Your friends have not done such a good job. Let's see what the critics say:

Glenn Koocher, executive director of the Massachusetts Association of School Committees, said the report shows charter schools are "stockpiling large reserves" when other public schools are struggling to make ends meet.

"It cries out for reform of the charter school funding system," Koocher said. "If they've got money to give back, why don't they give it back to the people they took it from."

But is there another side to this?

But defenders of charter schools say it's misleading to suggest they are rolling in cash. They say that, unlike traditional public schools, charter schools are barred from accepting money from the state's School Building Assistance fund.

Since they have to rent or lease their buildings, charter schools operators say they need to keep extra money in the bank from year to year.

"It's almost a necessity for a successful charter school to run a surplus," said Marc Kenen, executive director of the Massachusetts Charter Public School Association. "We took this report as a very favorable report about how charter schools are managing their finances."

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