Legislation could resolve concerns with cyber charter school funding in Pennsylvania
Public school districts in Pennsylvania could keep more than $600 million annually under a bill that the state House passed earlier this summer to cap the tuition they pay to cyber charter schools.
House Bill 1500 has been approved by the state House of Representatives, but party politics could tie it up in the state’s Senate. Democrats largely approve the measures, while Republican do not.
The bill, technically amending Public School Code 1949, is part of an effort to boost oversight and rein in funding sent to cyber charter schools. It was voted out of the House’s education committee with a 14-12 vote along party lines, with Democrats voting yes and Republicans voting no.
It was approved by the full House on June 4. Local Republicans Reps. Aaron Bernstine, Marci Mustello, Stephenie Scialabba and Tim Bonner voted against it.
The past couple of months, with schools working on their 2025-26 budgets, have seen administrators and board members speak out on their hope to see state legislators pass reform.
Brian White, Butler Area School District superintendent, emphasized that he, along with other administrators, are not against school choice and parents “having different options,” however, there to be guardrails to make sure cyber schools are funded and perform well, and so the playing field has a level of fairness.
“You’ve heard me at different meetings talk about the unfunded mandates, this is one of the biggest ones,” White said. “If the state is going to authorize cyber charter schools, then they should pay for them. Let them be the ones accountable for it.”
White and others may get a variation of guardrails, depending on what the Senate does with the legislation.
The bill would set a base tuition rate of $8,000 per cyber student. For comparison, Butler paid $18,877 in base cyber charter tuition per student in 2023-24. That rate would be increased for students who have extra needs, such as disabilities.
The measure would also make changes related to transparency, such as the wellness checks and residency requirements.
Other provisions include requirements that cyber charter schools post annual performance assessments online and inform students if they are found to be low-performing, as well as an enrollment cap on cyber charter schools found to be low-performing. Cyber charter schools would also be required to disclose any “entities” helping to finance their capital projects.
Along with the flat tuition rate, there are other financial components. By the end of this year, cyber charter schools would have to pay back a significant portion of their unspent surplus dollars from the 2024-25 fiscal year to the state. That money would go into a state fund for public schools’ capital projects.
The bill would also ban cyber charter schools from saving sizable surpluses which also have raised the concern of public school leaders. Beginning in June 2026, the end of the coming fiscal year, any surplus in excess of 12% of the school’s total expenditures that aren’t earmarked would have to be sent back to public districts.
Cyber charter school leaders have spoken out strongly against the bill.
“If enacted, House Bill 1500 would lead to the eventual closure of public cyber charter schools in Pennsylvania, and 65,000+ students would be stranded without access to an educational environment that meets their needs,” said Eileen Cannistraci, CEO at Insight PA Cyber Charter School, in a statement. “In addition, public cyber charter schools employ thousands of Pennsylvanians including teachers, support staff, counselors, psychologists, nurses, and administrators.
“With the closure of public cyber charter schools, which will be the result of House Bill 1500, massive unemployment will be just one of the consequences of these closures.”
PA Cyber CEO Brian Hayden told the Butler Eagle the proposed $8,000 tuition rate would have negative consequences, and would lead to around a 40% revenue cut for his school.
“We would also like to point out, all of our families are taxpayers, too. We are public schools, with families of Pa. taxpaying residents,” Hayden said. “It is our contention our families should have same benefits of taxpayer dollars as any other families.”
He said he is not opposed to talking about cyber reform, but insists it needs to be fair, transparent, based on facts not perceptions. He does not want his students to be “second class citizens.”
Senate Majority Leader Joe Pittman, R-41st, in Armstrong and Indiana counties, said in a statement that “certain aspects” of the bill approved by the state House “could be beneficial.” This includes requirements of cyber schools do wellness checks on students, and of public districts get proof of residency for students for whom they pay tuition.
However, the measure made it through the lower chamber mostly along party lines, 104-98, with two moderate Republicans voting in favor. At this time, it is still in the hands of the state Senate education committee.
