New agreement tells NC charter schools: No conflicts of interest

The North Carolina State Board of Education on Wednesday approved a new agreement for future charter schools prohibiting conflicts of interest.

The vote follows accusations of self-dealing at a Raleigh charter school, Torchlight Academy, the state board closed earlier this year.

The board approved the changes without discussion Wednesday, following an executive session. No one voted against the measure.

State officials say the new agreement doesn’t technically add any new regulations on charter schools. It just spells out the schools’ existing legal requirements, in an effort to make them more clear to the schools from the outset.

The agreement also states that funds can only be spent as they were legally appropriated.

The State Board of Education plans to consider regulatory changes later this year. The North Carolina Department of Public Instruction, which brought the charter agreement changes to the board, has already drafted some proposed requirements for charter school board members and for increased oversight of agreements between charter schools and education management organization agreements.

The state has closed a handful of charter schools in the past year related to alleged conflicts of interest and concerns of financial mismanagement. This month, the board had concerns about a proposed charter school -- Wayne STEM Academy -- that had tried to give another group the power to manage the school’s board in some circumstances.

The board also approved the school’s new charter agreement, without that provision, Wednesday. Wayne STEM Academy will be able to open, but they will not be allowed to do business with any entities not authorized to do business in North Carolina.

Board Member Amy White, who chairs the Education Innovation and Charter Schools Committee, announced the restriction before the vote Wednesday, though she didn't explain what prompted the change. The board held an executive session for a half hour prior to the vote and did not discuss the items before voting on it.

Wayne STEM Academy, specifically, will not be able to work with Legacy Funding Services LLC, Educational Development Services or Education Impact Services.