Court affirms that Phila. School District illegally capped charter's enrollment

In a ruling that could have financial ramifications for school districts across the state, Commonwealth Court has affirmed the state education secretary's decision that the School District of Philadelphia illegally capped enrollment at a city charter school.

The court upheld Secretary Ronald J. Tomalis' finding that the Walter D. Palmer Leadership Learning Partners Charter School was entitled to receive $1.3 million from the district. The school District had refused to give Palmer the money for 2008-09 and 2009-10 because the school enrolled more students than the 675 specified in its charter agreement.

A state law that took effect July 1, 2008, bars districts from capping charter school enrollment unless the charter school agrees to the limit in writing.

Although the charter renewal the Philadelphia School Reform Commission granted to Palmer limited the number of students, the charter maintained it had not agreed to the cap and should be paid for the additional students it enrolled.

The school has more than 900 students from kindergarten through 12th grade. Its main campus is at 910 N. Sixth St.

In an opinion filed Tuesday, the court said that the district's attempt to unilaterally limit the number of students was invalid after the law changed and that Tomalis was correct when he said the charter was entitled to be paid for the additional students.

State law permits charters to ask the Education Department to withhold state funds from districts that refuse to pay for charter students and to instead send the money to the charter schools.

The department held administrative hearings after the Palmer school asked the department to withhold district funds. Tomalis made his decision in March 2011.

The district appealed the secretary's decision to Commonwealth Court. The Education Department paid the charter school the $1.3 million last spring after the state Supreme Court ordered it.

If the Commonwealth Court judges had not agreed with the secretary, the charter school could have been required to return the money.

"We believe that the decision of the Commonwealth Court is very significant and is likely to have a dramatic effect on any enrollment cap battle between charter schools and districts," Kevin McKenna, one of the attorneys representing Palmer, said Wednesday.

District spokesman Fernando Gallard declined to comment because the district's lawyers had not reviewed the opinion.

At least six of the city's 80 charter schools have suits pending in Common Pleas Court challenging the enrollment caps. The schools disputing the caps refused to sign the new charter agreements that included them.

The district is facing massive financial problems. It must cut $26 million in expenses by June 30, and an additional $186 million in the fiscal year that starts July 1.