New Jersey Charter Schools Hoard Money, Sit On Large Fund Balances

Proving once again that charter schools are not public schools:

Charter schools across New Jersey have built up savings so large that one school has more money saved than it needs for an entire year of operation, according to an analysis by the Newark-based Education Law Center.

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The Education Law Center analyzed the most recently available audited school budgets of more than 80 charter schools. Nearly all of the schools had fund balances — the difference between revenues and expenses — larger than 2 percent, according to the analysis.

Public school districts are not allowed to have fund balances that are more than 2 percent of their budget, and The Education Law Center this week called on the state to impose the same cap on charter schools.

The money charter schools have beyond a 2 percent fund balance should be returned to the districts from which students came, said David Sciarra, executive director of the Education Law Center.

"The excess charter fund balance is available to provide desperately needed teachers, staff and programs for students in district schools," Sciarra said. "Since charters are public schools, they cannot be allowed to carry unlimited, excess surplus they don't need while the education of students who choose to attend district schools suffers from deep budget cuts."