Summary of Findings and Recommendations
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1 Summary of Findings and Recommendations Proposal to Restructure ROADS CHARTER SCHOOLS I and II as NEW VISIONS AIM CHARTER HIGH SCHOOLS 1 and 2 May 17, 2017 Charter Schools Institute State University of New York 41 State Street, Suite 700 Albany, New York (518)
2 Executive Summary ROADS Charter Schools I and II ( ROADS I and II ), two independent charter school education corporations that share the same board members, operate high schools in Brooklyn and the Bronx, respectively, for overage / under credited students who are among the most at-risk students in New York City. In large measure, the only other educational options for such students are a New York City Department of Education ( NYCDOE ) District 79 Alternative Schools & Programs school or a New York State High School Equivalency Diploma (GED) program. Each school enrolls about 170 students even though chartered enrollment is 250, and attendance problems results in daily attendance that sometimes is less than half of the actual enrollment. ROADS I and II contract with ROADS Schools, Inc., a Delaware not-for-profit corporation, for management services, and are co-located in NYCDOE facilities. ROADS I and II each submitted an Application for Charter Renewal in August 2016 in order to make their cases for charter renewal to the State University of New York Board of Trustees (the SUNY Trustees ). The SUNY Charter Schools Institute (the Institute ) reviewed the Applications for Charter Renewal and conducted two site visits to each school in October and December Thereafter, the Institute contacted each ROADS Charter School board and informed them that neither school made an adequate case for renewal. The Institute suggested that ROADS I and II withdraw their Applications for Charter Renewal and forgo the remainder of the charter renewal process. ROADS I and II, wanting to continue to serve their current students, countered by asking the Institute to go outside of the SUNY Renewal Policies 1 and try to restructure and renew both schools. After ROADS I and II tendered their charters to the SUNY Trustees, the Institute released a Request for Applications to Restructure Two Education Corporations 2 (the RFA ) on January 13, This approach to restructuring was done once before in New York by SUNY 3. Given the conditions of the proposal and the schools, and the short window of time in which the Institute could accept applications, only two applicant groups responded to the RFA: New Visions for Public Schools, Inc. ( New Visions ), a New York not-for-profit corporation that that operates two charter schools authorized by the SUNY Trustees and six authorized by the New York State Board of Regents (the Board of Regents ) in addition to providing services to 69 NYCDOE schools; and, a group associated with a charter high school authorized by the Board of Regents. The Institute reviewed the applications and requested amendments. The Institute determined the applicant associated with the single charter high school propose a full and likely strong model, but did not have the capacity to operate the Brooklyn school for which it applied. The proposed restructured schools, New Visions AIM Charter High Schools I and II ( AIM I and AIM II ) will re-open in fall 2017 each with 220 students in grades 9-12 and ultimately serve 250 students during the initial charter term of the restructuring. AIM I and II will fill all seats that become available through attrition throughout the school year in order to offer as many students a chance to attend the school as possible. AIM I and II will implement elements of the instructional programs at other New Visions schools 1 Policies for the Renewal of Not-for-Profit Charter School Education Corporations and Charter Schools Authorized by the Board of Trustees of the State University of New York (last amended September 4, 2013) (available at 2 Available at 3 In March of 2011, SUNY restructured Harlem Day Charter School into Harlem Prep Charter School. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 1
3 including NYCDOE transfer schools, which among other things work to re-engage drop outs and find career paths for students. At the end of the charter term, AIM I and II will be treated by SUNY, for purposes of renewal, as schools coming to renewal for the first time. This will allow SUNY to offer either short-term or full-term renewal (or closure) rather than only the full-term and closure options. Information regarding demographics, academic performance and student discipline for New Visions charter schools is presented in Appendix A. Fiscal performance information regarding ROADS I and II is attached as Appendix B. Information regarding the fiscal performance of the SUNY authorized New Visions schools is presented in Appendix C. The boards of ROADS Charter Schools I and II will have each voted to replace their withdrawn renewal applications with respective AIM I and II RFA applications for approval by the SUNY Trustees. Background The RFA set forth general requirements for approval including that an application must: Meet the standard for describing a quality educational program and provide sufficient evidence that the proposed school is likely to operate in an educationally and fiscally sound manner, improve student learning and achievement of the students enrolled and to be enrolled in the schools, and materially further the purposes set out in New York Education Law 2850(2) as well as meet any additional requirements established by the SUNY Trustees as part of their rigorous commitment to student achievement; Include a viable plan to attract and retain students with disabilities, students who are English language learners ( ELLs ), and students who are eligible to participate in the federal Free and Reduced-Price Lunch ( FRPL ) program; Be filed independent of any for-profit management partner; and, Demonstrate the applicant team has the organizational capacity to effectively operate the schools given the unique circumstances pertaining to this particular renewal situation including all due diligence information contained in the RFA. In the RFA, the Institute stated it would pay particular attention to the capacity of the applicant to provide remediation services and improve the student achievement of a cohort of students in grades 9-12 rather than one or two incoming grades. The RFA also included a number of pre-conditions and conditions that the Institute required of both the applicant and the existing ROADS I and II boards of trustees: The current education corporation boards of trustees will resign and the approved boards of trustees will be elected by the outgoing boards with the education corporations by-laws amended to permit same as needed. The current educational program of the schools would be discontinued at the end of the 2016/17 school year and be replaced by the applicant s educational program for the commencement of the 2017/18 school year. The applicant s educational program must be designed to serve the over-age and/or undercredited students who would be enrolled during the 2017/18 school year. The schools would SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 2
4 be required to serve all students currently enrolled in the schools that wish to remain enrolled, except for those who have turned 21, and must serve the incoming students who were selected in the lotteries. The applicant may not serve additional grades. The school names must be changed and not be similar to the existing names. The successful applicant must replace the leadership team of each school except for good cause shown, and replace the charter management organization. The RFA was explicit that assets and liabilities of the current education corporations existing at the time of a potential transition to any successful applicant would remain assets and liabilities of the education corporations, with the new boards of trustees ultimately responsible for governing their use. By submitting the application, the new operator acknowledged that the education corporations may have existing debt and obligations to be repaid, terms of grants that must be fulfilled, and may be possession of restrictive gifts whose terms must be honored. The existing school boards may not sue or join in any lawsuit against SUNY or the applicant regarding closure, non-renewal, restructuring or any transaction related to the closing of the school and the restart of a new academic program. Any breach of this provision would result in the non-renewal or expiration of the charter. The Institute applied its normal review standards for initial charter applications in evaluating the RFA applications and tailored the process to meet the current renewal circumstances. The Institute requested amendments from the applicant including amended budgets to account for reduced enrollment. Description of the Applications AIM I and II would open in the fall of 2017 after restructuring the existing ROADS I and II. The restructured schools would guarantee each current student enrollment in the schools, and serve students as young as 15 years of age. The schools would backfill any vacant seat to offset attrition. The applicant states the schools will establish partnerships with foster care agencies and the juvenile justice system so that the schools have a pipeline of students to take in throughout the year. By the third year of the charter term, the applicant expects each school to be fully enrolled with 250 students. Mission The mission of AIM I and II follows: Calendar and Schedule New Visions AIM Charter High Schools provide youth who face the greatest obstacles to successful high school completion with the supports, experiences and opportunities they need to graduate high school prepared for a successful transition into a post-secondary academic or work preparatory program. AIM I and II will provide for a school year consisting of 179 instructional days, which includes 13 Regents testing days. The schools will provide three professional development days for staff during the SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 3
5 instructional year. The average school day will provide 6.5 hours of instruction, which is more than the minimum required. Key Design Elements New Visions, using economies of scale, seeks to implement Key Design Elements of a school model designed to enable high levels of student engagement, timely progress towards meeting New York State graduation requirements and successful planning and transition into post-secondary academic or work preparatory programs. The proposed Key Design Elements follow: Evidence based and technology enabled administrative systems including use of the New Visions Data portal; Defined post-secondary pathways including: o Direct partnerships with post-secondary programs; o Post-secondary planning foundations; o Pathway specific post-secondary preparation; o Outcome tracking; and, o Alumni support; Intensive and personalized academic supports including: o Program assignment based on comprehensive diagnostic assessments; o Evidence based instructional design; and, o Extended day academic supports; Flexible and personalized academic programming; Advisors for Students including: o Single point of contact with families; o Relationship coach; o Productive behavior management; and, o Support for regular attendance; and, Intensive and integrated socioemotional supports. The organizational structure of AIM 1 and 2, in keeping with New Visions idea that a school is first and foremost an educational institution, will be led by a Principal, who should be relieved of, but still responsible for, fiscal, operational and administrative functions. To that end, at each school, the Principal would supervise a Director of Curriculum & Instruction, Director of School Operations, Director of Student Support and a Special Education Coordinator. Social workers, advocate counsellors and reading specialists would supplement the general and special education teaching staff. Charter Management Organization and School Performance SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 4
6 Each school board would contract with New Visions for overall management services for a fee of 10% of each school s total revenue. Management services provided to the school by New Visions would include staff recruitment and human resources, academic program support, professional development, curricular systems, data management, community engagement, back-office and finance management, and assessment systems. The Institute reviewed a draft management contract between New Visions and each AIM school, and suggested changes. In accordance with the SUNY charter agreement, the Institute will review and approve the final management agreements. New Visions provides management services to eight charter high schools including two authorized by the SUNY Trustees. None of those charter high schools serves a population similar to ROADS I and II. However, New Visions provides services to 69 NYCDOE schools including 10 transfer high schools. As additional information, Appendix C contains the fiscal dashboards for the two New Visions SUNY authorized schools. New Visions provided information related to student performance at its five operating charter high schools authorized by the Board of Regents, all of which are in their first charter term: New Visions Charter High Schools for Advanced Math and Science II (Bronx), II (Brooklyn) and IV (Queens), and New Visions Charter High School for the Humanities II (Bronx) and III (Brooklyn). Another Board of Regents authorized school, New Visions Charter High School for the Humanities IV, is scheduled to open in fall 2017 in Queens. In addition, SUNY authorized New Visions Charter High School for Advanced Math and Science (Bronx) and New Visions Charter High School for the Humanities, both received full-term renewals from the SUNY Trustees in April Please see Appendix A for school performance data and information. Governance The proposed AIM I and AIM II by-laws indicate the school board would consist of not less than five, and not more than 13, voting trustees. The proposed initial members of the restructured boards of trustees are set forth below. 1. Elizabeth Chu: Dr. Chu is the Senior Director for Research, Content and Curriculum at Columbia University s Center for Public Research and Leadership in New York, NY. Dr. Chu received a B.A. from Yale University, a M.A. in Teaching from Pace University and a Ph.D. in Education Policy from Teachers College, Columbia University. 2. Jacqueline Cooper: Ms. Cooper is the President of the Black Alliance for Educational Alternatives in Washington, DC. Ms. Cooper received a B.A. in Economics from Bryn Mawr and a M.B.A. in Finance and Accounting from New York University. 3. Melanie Harris: Ms. Harris is a Principal with Bain & Company in the Financial Services practice in New York, NY. Ms. Harris received a B.A. in Political Science from Yale University and a M.B.A. in from Harvard Business School. 4. Kelly Roman: Mr. Roman is Cofounder of the Fisher Wallace Laboratories in New York, NY, which produces wearable neurostimulation technology to treat depression, anxiety, insomnia and chronic pain. Mr. Roman received a B.A. in Economics from Harvard University and previously attended the Deerfield Academy in Massachusetts. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 5
7 5. Marina Schreiber: Ms. Schreiber is the Chief Financial and Administrative Officer for the Partnership with Children, Inc. in New York, NY. Ms. Schreiber received a B.S. in Industrial Engineering from Columbia University s School of Engineering and Applied Science, and a M.B.A from Duke University. Facilities If approved, AIM I and II would each be co-located in the same NYCDOE facility as the respective ROADS school at: 495 Herkimer St., Brooklyn, NY in New York City Community School District ( CSD ) 23; and, Rev. J. A. Polite Ave., Bronx, NY in CSD 12. Fiscal Soundness As the ROADS I and II education corporations will remain and not be fiscally restructured, the Institute conducted fiscal reviews of each corporation. Based on a review of the fiscal evidence collected through the renewal review, ROADS I has maintained limited financial resources to ensure stable operations. ROADS II, while also suffering from insufficient attendance, is fiscally, sound. The SUNY Fiscal Dashboards for ROADS I and II are included in Appendix D and presents color coded tables and charts indicating that the education corporation has demonstrated fiscal strain over the course of the charter term. 4 As ROADS Schools, Inc. charged a 10% management fee and New Visions fee will be the same, the management fee will not impact the budgets or fiscal soundness of the schools going forward. Based on its fiscal reviews, the Institute finds: ROADS I and II have adequate financial resources to ensure stable operations and have maintained fiscal soundness through conservative budgeting practices, routine monitoring of revenues and expenses. ROADS I and II have generally established and maintained appropriate fiscal policies, procedures and internal controls. Written policies addressed key issues including financial reporting, cash disbursements and receipts, payroll, bank reconciliations, credit card usage, fixed assets, grants/contributions, capitalization and accounting, procurement and investments. The education corporations have accurately recorded and appropriately documented transactions in accordance with established policies. An outside financial consultant worked with the principal, key staff and the ROADS I and II boards to help ensure that the schools followed established policies and procedures. The education corporations most recent audit report of internal control over financial reporting related to financial reporting and on compliance and other matters disclosed no material weaknesses, or instances of non-compliance that were required to be reported. ROADS I and II complied with financial reporting requirements. ROADS I has maintained limited financial resources to ensure stable operations. 4 The U.S. Department of Education has established fiscal criteria for certain ratios or information with high medium low categories, represented in the table as green gray red. The categories generally correspond to levels of fiscal risk, but must be viewed in the context of each education corporation and the general type or category of school. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 6
8 ROADS I posts a fiscally needs monitoring composite score rating on the Institute s financial dashboard indicating a limited level of fiscal stability over the charter term. ROADS I has relied primarily on recurring operating revenues and accumulated surpluses to cover operating deficits. ROADS I does receive contribution support but is not dependent upon such variable income for its financial needs. ROADS I prepares and monitors cash flow projections and maintains limited cash on hand to pay current bills and those that are due shortly. It retains approximately 24 days of cash on hand. The benchmark is 30 days of cash on hand.. ROADS I has established the separate bank account for a dissolution fund reserve of $75,000. ROADS II has maintained limited financial resources to ensure stable operations. ROADS II posts a fiscally strong composite score rating on the Institute s financial dashboard indicating a consistent level of fiscal stability over the charter term. ROADS II posted an operating deficit of $451,079 for 2015/16, which it covered by a contribution from ROADS Schools, Inc. in accordance with the management agreement. ROADS II prepares and monitors cash flow projections and maintains sufficient cash on hand to pay current bills and those that are due shortly. It retains approximately 27 days of cash on hand. ROADS II has established the separate bank account for a dissolution fund reserve of $75,000. The Institute reviewed the budgets, fiscal plans and business plans submitted by AIM I and II, and New Visions, and found them to be fiscally sound. The Institute also finds that sufficient funds will be available to re-start the charter schools. In addition to financial statements, the Institute reviewed other materials from the withdrawn ROADS I and II renewal applications that must be submitted with the current renewal application pursuant to Education Law 2851(4) such as indications of parent satisfaction and progress toward student achievement goals. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 7
9 Findings The Institute makes the following findings in the context of the RFA, which it would normally make for a new application. As an alternative to closure, the restructurings of ROADS I and II are technically charter renewals. Even though the renewals will be outside of the SUNY Renewal Practices, the SUNY Trustees must still meet the minimum requirements of the New York Charter Schools Act of 1998 (as amended, the Act ). Based on all of the foregoing, the Institute makes the following findings required by Education Law 2852(2) for a charter renewal. 1. Each proposed restructured charter school described in the applications meet the requirements of Article 56 of the New York Education Law (as amended) and other applicable laws, rules, and regulations as reflected in (among other things): a viable plan to attract and retain students with disabilities, ELLs, and FRPL eligible students, and the inclusion of appropriate policies and procedures for the provision of services and programs for those students; the required policies for addressing the issues related to student discipline and personnel matters; an admissions policy that complies with the Act and federal law; and, the inclusion of revisions to the education corporations by-laws for the operation of the boards of trustees; and, 2. Each applicant (education corporation) has demonstrated the ability to operate the respective school in an educationally and fiscally sound manner as reflected in (among other things): the provision of an educational program that meets or exceeds the state performance standards; the student achievement goals articulated by the applicant; an appropriate roster of educational personnel; a sound mission statement; a comprehensive assessment plan; the provision of sound budget plans for the renewal term; evidence of plans to retain and recruit students sufficient to allow the school to reach its anticipated maximum enrollment; the inclusion of a school calendar and school day schedule that provide at least as much instruction time during the school year as required of other public schools; and, the inclusion of methods and strategies for serving students with disabilities in compliance with federal laws and regulations. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 8
10 3. Approving each renewal application is likely to: a) improve student learning and achievement at each school; and, b) materially further the purposes of the Act. This finding is supported by (among other things): extended learning opportunities with 450 minutes of ELA, mathematics, science and social studies instruction each week; a strong commitment to serving the most at-risk students with multiple programs to address the needs of students at-risk of academic failure including students who are over-age and/or under-credited; the inclusion of a professional development program for instructional staff throughout the year; an organizational structure that provides ample instructional leadership to focus on improving teaching for the school s at-risk population; and, a commitment to graduating students ready for college or a career path. Notification and Public Comments The Institute notified the District as well as public and private schools in the same geographic area of the proposed school about receipt of the renewal applications, and posted a notice on the Institute s website for public review. To date, the SUNY Trustees have not received any district or public comments on the proposal. SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 9
11 Appendix A Demographic and Academic Achievement data for New Visions Charter High Schools Academic achievement and demographic data for existing New Visions Charter High School Programs are sourced from the New York City Department of Education School Performance Dashboard ( New Visions Charter High Schools authorized by the SUNY Trustees: New Visions Charter High School for Advanced Math and Science New Visions Charter High School for the Humanities New Visions Charter High School authorized by the Board of Regents: New Visions Charter High School for Advanced Math and Science II New Visions Charter High School for the Humanities II New Visions Charter High School for Advanced Math and Science III New Visions Charter High School for the Humanities III New Visions Charter High School for Advanced Math and Science III SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 10
12 New Visions Charter High School for Advanced Math and Science SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 11
13 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 12
14 New Visions Charter High School for the Humanities SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 13
15 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 14
16 New Visions Charter High School for Advanced Math and Science II SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 15
17 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 16
18 New Visions Charter High School for the Humanities II SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 17
19 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 18
20 New Visions Charter High School for Advanced Math and Science III SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 19
21 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 20
22 New Visions Charter High School for the Humanities III SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 21
23 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 22
24 New Visions Charter High School for Advanced Math and Science IV SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 23
25 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 24
26 Appendix B SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 25
27 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 26
28 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 27
29 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 28
30 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 29
31 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 30
32 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 31
33 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 32
34 Appendix C SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 33
35 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 34
36 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 35
37 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 36
38 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 37
39 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 38
40 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 39
41 SUNY Charter Schools Institute Summary of Findings and Recommendations Roads Charter Schools I and II 40
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