(From The Buffalo News, May 20, 2009)
By JOE WILLIAMS
Gary Crosby, chief financial officer of the Buffalo Public Schools, misses the point of the lawsuit by charter schools to stop audits by the state comptroller (“Lawsuit to block comptroller’s audits is misguided,” The News, May 13).
Fifteen charter schools, along with the New York Charter Schools Association and the New York City Charter School Center, sued the state comptroller in 2007 because the New York State Constitution under Article V limits the entities in which the comptroller is permitted to audit to political subdivisions of the state.
Charter schools are not governmental entities or political subdivisions and, therefore, are beyond the reach of the comptroller. The Legislature, however, did authorize charter schools to be approved and overseen by a chartering authorizer and the Board of Regents. Each of these agencies is charged with monitoring their fiscal and educational soundness. Additionally, these agencies themselves are subject to comptroller audit and oversight.
If the comptroller doesn’t think the Regents or a charter authorizing entity — including the Buffalo Public Schools, which directly oversees the two charters it authorized — is doing an effective enough job, he can say so and recommend action.
The lawsuit by charter schools was upheld in State Supreme Court, but the decision was reversed by the Appellate Division last January. The Court of Appeals, the state’s highest court, will hear the case next month.
The Court of Appeals recognized the limits of the comptroller’s auditing power in a 1996 case when it struck down audits of Blue Cross and Blue Shield, which administers hundreds of millions in public monies for insurance policies, but also is overseen by the State Insurance Department and the Department of Health.
Charter schools have been and remain under heavy oversight by the state and school districts that have authorized charters, more so than what any school district must undergo. Charter schools have numerous educational and financial reporting requirements to their own board of trustees, the school district, chartering entity and the Board of Regents. They also must have an annual financial audit by an independent certified public accountant.
As a practical matter, it makes no sense for the comptroller to be attempting to perform the financial oversight of charter schools or other public, nonprofit organizations every five to 10 years, when the Regents and charter authorizers are already performing these functions throughout the year.
If Crosby or anyone at the state Education Department or other charter authorizer believes its oversight is somehow insufficient regarding charter schools, he has the statutory and constitutional power to increase that oversight. The comptroller does not, under the state constitution, and that fact should be respected.
Joe Williams is executive director of Democrats for Education Reform.