Action under consideration

Description  The Board of Education will consider a proposed Release and Settlement Agreement by and among the School District of Philadelphia (“School District”), Eugenio Maria De Hostos Charter School (“Hostos”), Antonio Pantoja Charter School (“Pantoja”), and Aspira Inc. of Pennsylvania (“Aspira”).

The Board of Education granted a charter to the Board of Trustees of Hostos to operate a charter school for a five-year term commencing in 1998, and the School Reform Commission (“SRC”) renewed the Hostos Charter for five-year terms in 2003, 2008, and 2013.  Hostos has sought renewal of its Charter and an enrollment expansion; and

The SRC granted a charter to the Board of Trustees of Pantoja to operate a charter school for a five-year term commencing in 2008, and the SRC renewed the Pantoja Charter for a five-year term in 2013.  Pantoja has sought renewal of the Pantoja Charter and an enrollment expansion; and

The Charter Schools Office of the School District has recommended both Hostos and Pantoja for renewal; and

Aspira has submitted to the School District a revised new charter application for ASPIRA Bilingual College and Career Preparatory Academy (“Revised ASPIRA Prep Application”) and a revised new charter application for ASPIRA Dr. Ricardo E. Alegria Preparatory Charter School (“Revised Alegria Prep Application”); and

Various disputes have arisen between the School District and Hostos and the School District and Pantoja during the 2018-2019, 2019-2020, 2020-2021 and 2021-2022 school years regarding the number of students permitted to be enrolled under the Hostos Charter and the Pantoja Charter, respectively; and

Hostos sought and received from the Secretary of Education (“Secretary”) and the Pennsylvania Department of Education (“PDE”) amounts withheld from the School District’s State payments for additional funds related to Hostos’s enrollment in the 2018-2019, 2019-2020, 2020-2021 and 2021-2022 school years, to which the School District filed multiple objections and hearing demands (“Hostos PDE Administrative Appeals”); and

Pantoja sought and received from the Secretary and PDE amounts withheld from the School District’s State payments for additional funds related to Pantoja’s enrollment in the 2018-2019, 2019-2020, and 2020-2021 school years, to which the School District filed multiple objections and hearing demands (“Pantoja PDE Administrative Appeals”); and

There are pending disputes between the School District and Hostos and the School District and Pnantoja relating to the deductions of amounts constituting expenditures of federal funds, prekindergarten expenses, and certain portions of the Ready to Learn grant funds from total expenditures when calculating charter school per-pupil rates.  Certain administrative matters had originated in actions brought by certain charter schools, including Hostos and Pantoja, against the School District (collectively “PDE Appeals”) and those actions pending in the Pennsylvania Commonwealth Court (collectively “Commonwealth Court Appeals”).

On September 21, 2023, the Board of Education will be considering an action item to approve and authorize execution of the Release and Settlement Agreement with Hostos, Pantoja, and Aspira which shall include, without limitation, the following terms:

1.     The School District shall issue a Charter to Hostos (“Hostos Renewal Charter”).  The term of the Charter is from July 1, 2023 through June 30, 2028. The grades and enrollment permitted under the Charter shall reflect the enrollment of a maximum of 750 students in Grades K-8 by the 2026-2027 school year during the Hostos Renewal Charter Term. 

2.     The School District shall issue a Charter to Pantoja (“Pantoja Renewal Charter”).  The term of the Charter is from July 1, 2023 through June 30, 2028. The grades and enrollment permitted under the Charter shall reflect the enrollment of a maximum of 750 students in Grades K-8 by the 2023-2024 school year during the Pantoja Renewal Charter Term.

3.     Aspira agrees that it will withdraw the Revised ASPIRA Prep Application and the Revised ASPIRA Alegria Prep Application (collectively the “Revised Applications”) from consideration by the School District for new charter schools.  Aspira further agrees that: (i) it irrevocably waives the Charter School Law requirement in 24 P.S. § 17-1717-A(f) that the local board of school directors to consider or to vote to grant or deny the Revised Applications; (ii) it irrevocably waives its right to seek relief in any form from the State Charter School Appeal Board (“CAB”) with respect to the Revised Applications; and (iii) it agrees that it will not assert in any appeal to the CAB, in any other legal proceeding or for any reason that the Board of Education failed to consider or vote on the Revised Applications.

4.     Aspira agrees that it will not seek a separate or additional charter for any students in Kindergarten through Grade 8 prior to November 15, 2028.

5.     Hostos shall pay to the School District the total amount of Three Million One Hundred Sixty-Three Thousand Nine Hundred Eighty-Six Dollars ($3,163,986) (“Hostos Settlement Sum”) to settle the Hostos PDE Administrative Appeals.  Hostos shall pay the Hostos Settlement Sum in installments of $632,797.20 per school year for five (5) school years, beginning with the 2023-2024 school year and ending with the 2027-2028 school year.

6.     Pantoja shall pay to the School District the total amount of Three Hundred Seventy-One Thousand Five Hundred Thirty-Seven Dollars ($371,537) (“Pantoja Settlement Sum”) to settle the Pantoja PDE Administrative Appeals. Pantoja shall pay the Pantoja Settlement Sum in installments of $74,307.40 per school year for five (5) school years, beginning with the 2023-2024 school year and ending with the 2027-2028 school year.

7.     Hostos and Pantoja shall promptly withdraw any requests for subsidy withholdings submitted to PDE for which withholdings have not yet been made from the School District’s subsidy, including the PDE Appeals.

8.     The School District shall withdraw or discontinue any objections, requests for hearing, or administrative appeals the School District has filed with PDE in the Hostos PDE Administrative Appeals and the Pantoja PDE Administrative Appeals.

9.     Hostos and Pantoja shall withdraw or dismiss their claims in the pending Commonwealth Court Appeals and take whatever action is requested or required by the Commonwealth Court to withdraw and terminate their claims in the Commonwealth Court Appeals with prejudice.