Editorial: Closer scrutiny

Recent allegations of mismanagement and misconduct in some Philadelphia charter schools underscore the need to close loopholes and ambiguous regulations in the state's 1997 charter law.

It was good to see the state Senate Education Committee bring reform closer this week by unanimously passing overhaul legislation. There should be no delay in giving the measure final passage.

Charter schools remain a viable alternative to failing traditional public schools, and many operate successfully and achieve impressive academic results. But a widening federal probe into at least 18 Philadelphia charter schools has renewed troubling concerns about how all charters operate.

Despite the scandal, Superintendent Arlene Ackerman's plan to transform failing district schools relies heavily on sending more students to charters.

Philadelphia currently has 67 charters that enroll about 30,000 students. But the legislature is considering sweeping reforms that would impact all 135 charter schools in the state.

For starters, the bill would create a sorely needed state charter school office to provide better oversight. That makes great sense since the host districts too often have done a poor job of monitoring their charter schools.

The legislation would also mandate annual training for board members, and require charters to make public annual audits and administrators' salaries.

Another provision would allow parents to take legal action to remove charter board members. And the legislation would for the first time give Philadelphia's city controller the authority to audit charter schools. That can help uncover fraud and abuse.

Despite being hamstrung with access only to public records, a recent controller's investigation found blatant conflicts of interest, excessive CEO salaries, and complex real estate arrangements in which charters leased facilities from related organizations.

It's time to improve state oversight. The bar must be raised to evaluate whether a charter deserves tax dollars. It's not enough that a charter is safe and clean; it should improve academic performance, provide good management, and exhibit sound fiscal practices.