Opinion

Propel Charter Schools v. S.D. of Pittsburgh (State Charter School Appeal Bd.)

Court
Commonwealth Court of Pennsylvania
Filed
Nov 19, 2021
Status
Published
On the bench
Covey, J.
Cited by
0 cases
Authority
More cited than 22.0%

The opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Propel Charter Schools, :

Petitioner :

:

v. :

:

School District of Pittsburgh :

(State Charter School Appeal Board), : No. 1210 C.D. 2020

Respondent : Argued: October 18, 2021

BEFORE: HONORABLE P. KEVIN BROBSON, President Judge

HONORABLE ANNE E. COVEY, Judge

HONORABLE ELLEN CEISLER, Judge

OPINION BY

JUDGE COVEY FILED: November 19, 2021

Propel Charter Schools (Propel) petitions this Court for review of the

State Charter School Appeal Board’s (CAB) December 22, 2020 order that denied

Propel’s appeal from CAB’s Hearing Officer’s (Hearing Officer) order granting the

School District of Pittsburgh’s (District) Motion to Supplement the Record with

Propel’s 2017-18 school performance profile (SPP) scores and rankings (Motion to

Supplement), and denied Propel’s appeal from the District’s denial of Propel’s

application (Application) to operate a Multiple Charter School Organization

(MCSO). Propel presents three issues for this Court’s review: (1) whether Propel’s

failure to adhere to the Pennsylvania Department of Education’s (Department)

MCSO Application Guide (Application Guide) is a proper basis for denying Propel’s

Application; (2) whether the Department’s Application Guide is an improper

regulation; and (3) whether CAB erred when it interpreted the Charter School Law

(CSL)1 to allow the consideration of SPP data that became available after Propel

filed the Application.2 After review, this Court affirms.3

In February 2018, the Department published an application form

(Application Form) to be completed by charter schools seeking to establish an

MCSO, and published the Application Guide in conjunction with the Application

Form.4

1

Act of March 10, 1949, P.L. 30, as amended, added by Section 1 of the Act of June 19,

1997, P.L. 225, 24 P.S. §§ 17-1701-A - 17-1751-A.

2

This Court has reordered Propel’s issues for ease of discussion.

3

This matter was argued seriately with Propel Charter Schools v. Pa. Dep’t of Educ. (Pa.

Cmwlth. No. 1209 C.D. 2020, filed Nov. 19, 2021).

4

The Department’s Application Guide provides, in relevant part:

The General Assembly did not provide express direction concerning

the sequence of submission and review of MCSO applications to the

chartering school district(s) and the Department. Therefore, the

Department has concluded that the most reasonable way to

implement the requirements relating to submission and review is

through a sequential review.

Under this sequential review process, the establishment of an MCSO

begins with the submission of a complete and verified MCSO

[a]pplication to the chartering school district(s) for each charter

school under the proposed MCSO. In the case of a regional charter

school, or when the charter schools seeking to form an MCSO have

different chartering school districts, the MCSO [a]pplication must

be submitted to all chartering school districts simultaneously.

Chartering school district(s) have 45 days to review and act on an

application for creation of an MCSO; if no action occurs within the

45 days, the application is deemed approved. [Section 1729.1-

A(a)(2) of the CSL, added by the Act of November 6, 2017, P.L.

1142,] 24 P.S. § 17-1729.1-A(a)(2). If a chartering school district

disapproves an application and that disapproval is subsequently

reversed by [] CAB[], see 24 P.S. § 17-1729.1-A(f), the application

will be considered approved as of the date of CAB’s written

determination unless otherwise stayed by an appropriate order.

After approval by the chartering school district(s) (or CAB) or the

passage of 45 days, the MCSO [a]pplication is submitted to the

Department. The MCSO [a]pplication submitted to the Department

must be identical to that approved by the chartering school

2

On May 4, 2018, Propel submitted the Application to the District,

wherein Propel sought to consolidate eight of its preexisting charter schools as a

single MCSO. The preexisting charter schools included: Propel Schools (operating

as Propel Charter School - Homestead); Propel Charter School - East; Propel Charter

School - McKeesport (Propel-McKeesport); Propel Charter School - Montour

(Propel Montour); Propel Charter School - Northside (Propel-Northside); Propel

Charter School - Pitcairn; and Propel Charter School - Hazelwood (Propel-

Hazelwood).

Propel also submitted its Application to the Department and to Steel

Valley School District, Woodland Hills School District, Penn Hills School District,

McKeesport School District, Montour School District and Gateway School District.

Pursuant to Section 1729.1-A(c) of the CSL,5 24 P.S. § 17-1729.1-A(c), each school

district and the Department had 45 days to render a decision on the Application. On

June 18, 2018, the District formally voted to deny the Application. No other school

district responded to the Application within 45 days and, therefore, the Application

was deemed approved by those school districts.

district(s). The Department has 45 days for review and action. 24

P.S. § 17-1729.1-A(a)(1). Disapproval by the Department is also

subject to an appeal to CAB. See 24 P.S. § 17-1729.1-A(f).

This sequential review allows charter schools to address and resolve

any concerns with the chartering school district(s), which have

closer oversight of the charter schools, before seeking the

Department’s approval. Also, the sequential review eliminates the

possibility of conflicting decisions on an MCSO [a]pplication being

issued by the chartering school district(s) and the Department at the

same time.

Reproduced Record at 5725a-5726a.

5

Section 1729.1-A of the CSL was added by Section 10 of the Act of November 6, 2017,

P.L. 1142.

3

On June 25, 2018, the District issued its Notice of Denial (Denial

Notice) that stated, in relevant part:

Although the [CSL] generally prohibits underperforming

schools from consolidating with other charters schools, the

consolidation is possible if the proposed consolidation

includes a charter school that has met the performance

criteria for the past two (2) years. Propel proposed to

consolidate eight (8) schools, of which only one ([Propel-

]McKeesport) met the statutory performance criteria.

Neither of the Propel schools located within the [District]

([Propel-]Northside and [Propel-]Hazelwood) have met

the performance criteria.

The [District] reviewed the [A]pplication and the

[District’s board of school directors (School Board)]

determined that it does not approve of the

consolidation . . . . Although Propel claims that the

consolidation will provide operating and administrative

efficiencies, the [School] Board does not agree that these

efficiencies will benefit students, and Propel’s claim that

the consolidation would enhance educational equity for all

students was not supported by any information submitted

by Propel or made available to the [School] Board.

The [School] Board does not approve of the consolidation

for the reasons discussed at its public meetings and as

further detailed herein. The [School] Board raised

concerns in each of the following areas:

I. The Governance Structure. The [CSL] provides that

multiple charter school applicants must only submit “a

clear description of the method for the appointment or

election of members to the board of trustees.” [Propel]

did not clearly delineate the composition of the Board

of Trustee[s] or the manner of selection. . . .

II. The funding of the [MCSO] (accountability for

Pittsburgh tax dollars being used to benefit Pittsburgh

students). Propel provided no information regarding

any accountability for payments made by the [] District

[] being used to benefit students residing in the []

District [] and attending Propel. . . .

4

III. The proposed budget for the [MCSO], including

special education expenditures. From information

provided by Propel in the 2015-[]16 budget, there was

a projected 22% decrease in special education tuition

revenue in anticipation in the new funding formula.

However, there was no change in the charter funding

formula. The lower projected revenue could lead

[Propel] to under budget and under fund services for

special education students. That is coupled with the fact

that special education tuition rate that the District pays

to Propel increased by 5% in 2015-[]16. There was no

explanation for the obvious contradiction in a decrease

in special education tuition revenue and an increase in

the tuition rate. . . .

Reproduced Record (R.R.) at 5472a-5473a (italic emphasis added).

On July 16, 2018, Propel filed an appeal to CAB. Propel’s Application

relied on Propel-McKeesport as its lone qualifying school to satisfy the CSL’s

MCSO approval requirement that at least one member school must have an SPP

score that is among the top 25th percentile of Pennsylvania charter schools as

measured by the SPP for the two most recent school years.

At the time Propel filed the Application with the District, the two most

recent school years for which SPP scores were available were the 2015-16 and 2016-

17 school years. On December 21, 2018, the Department published SPP scores and

rankings for the 2017-18 school year. On January 9, 2019, based upon the SPP

scores for the 2017-18 school year, the Department updated its MCSO Eligibility

List.

On January 16, 2019, the District filed the Motion to Supplement. The

purpose of the Motion to Supplement was to provide CAB with evidence that Propel-

McKeesport was no longer ranked in the top quartile as it had been for the 2015-16

and 2016-17 school years. Because Propel-McKeesport had been the only school

with an SPP score in the top quartile of charter schools in the Commonwealth, none

of the eight schools in the proposed MCSO had an SPP score that would qualify

5

Propel for MCSO eligibility. On March 19, 2019, the Hearing Officer granted the

Motion to Supplement (March 19, 2019 Order). Propel appealed to CAB from the

Hearing Officer’s March 19, 2019 Order.

On May 21, 2019, the parties argued Propel’s direct appeal to CAB

from the Hearing Officer’s March 19, 2019 Order and Propel’s appeal from the

District’s decision denying Propel’s Application. Prior to the hearing, CAB Member

Lee Ann Munger (CAB Member Munger) and the Department Secretary recused

themselves from participating in both appeals.6

At CAB’s June 18, 2019 meeting, CAB Member Munger and the

Department Secretary recused themselves from the vote, leaving a quorum - four

CAB members - who voted 4-0 to deny Propel’s appeal from the Hearing Officer’s

March 19, 2019 Order. Also, on June 18, 2019, CAB voted 3-1 to deny Propel’s

appeal from the District’s decision to deny Propel’s Application; however, CAB

tabled the matter as a nonactionable vote because CAB determined, in accordance

with its interpretation of the CSL, that the 3-1 vote did not constitute a valid CAB

action.7

On July 24, 2019, with the Department Secretary and CAB Member

Munger again recusing, the same four CAB members again voted on the substantive

appeal from the Department’s denial, resulting in another 3-1 vote, which CAB did

not recognize as a valid CAB action. Once more, CAB tabled the matter.

On September 6, 2019, Propel filed a Motion to Permit CAB Member

Munger to Vote. CAB counsel held a conference call with all of the parties to discuss

Propel’s Motion to Permit CAB Member Munger to Vote. On September 12, 2019,

the District filed its response in opposition thereto. On September 25, 2019, Propel

6

CAB Member Munger explained that her children attend Propel.

7

Because a majority of the six CAB members did not vote unanimously, CAB determined

that the 3-1 vote did not constitute a valid CAB action.

6

withdrew its Motion to Permit CAB Member Munger to Vote, and filed a Motion to

Allow Vote of 3-1 in this Matter as Proper (Vote Motion). On October 7, 2019, the

District filed its response thereto. At CAB’s October 22, 2019 meeting, the parties

argued the Vote Motion and CAB voted to deny the Vote Motion, and again

attempted to vote on the substantive appeal which resulted in a 3-1 vote to deny.

CAB tabled the matter for a revote at its December 3, 2019 meeting. On November

27, 2019, CAB issued a written order denying the Vote Motion. On December 26,

2019, Propel appealed to this Court. On that same date, Propel also filed a Petition

for Review in the Nature of a Declaratory Judgment Complaint in this Court’s

original jurisdiction seeking a declaration that the CAB votes and revotes were

proper, and an order for CAB to promptly issue a written decision.

On November 20, 2020, this Court ruled that CAB’s 3-1 vote was

proper, and reversed CAB’s November 27, 2019 Order.8 This Court further directed

that Propel had 30 days therefrom to appeal from CAB’s denial of Propel’s

substantive appeal. On November 25, 2020, Propel filed the instant Petition for

Review.9 On December 23, 2020, CAB issued its written decision in support of its

June 18, 2019 vote of 3-1 denying Propel’s appeal and its denial of Propel’s appeal

from the Hearing Officer’s March 19, 2019 Order.10

Propel argues that CAB erred when it concluded that Propel’s failure to

comply with the Department’s Application Guide, specifically its requirement that

8

See Propel Charter Sch. v. Pa. Dep’t of Educ., 242 A.3d 985 (Pa. Cmwlth. 2020); Propel

Charter Sch. v. Pa. Dep’t of Educ., 243 A.3d 322 (Pa. Cmwlth. 2020); Propel Charter Sch. v.

Charter Sch. Appeal Bd. (Pa. Cmwlth. No. 1827 C.D. 2019, filed Nov. 20, 2020).

9

“Our review of [CAB’s] decision is limited to determining whether constitutional rights

were violated, whether errors of law were committed or whether the decision is not supported by

substantial evidence.” New Hope Acad. Charter Sch. v. Sch. Dist. of the City of York, 89 A.3d

731, 736 (Pa. Cmwlth. 2014).

10

CAB did not file an opinion in support of its June 18, 2019 vote denying Propel’s

substantive appeal before this Court issued its November 20, 2020 decision, due to its conclusion

that the vote was not valid.

7

Propel first submit the Application to the school districts and, only after approval by

the school districts, to the Department, is a proper basis for denying Propel’s

Application. Propel expressly asserts:

Lack of sequential submission and review of the

Application cannot be a reason for denial by CAB or the

District because there is no such requirement under the

[CSL]. Moreover, whether or not Propel submitted its

[A]pplication in a particular sequence does not bear on the

District’s analysis as to whether Propel is eligible to

consolidate.

Propel Br. at 28.

In its Decision, CAB explained:

[T]he Application Guide . . . explicitly states that “the most

reasonable way to implement the [MCSO’s] requirements

relating to submission and review is through a sequential

review.” ([] Application Guide[ at] 2). The Application

Guide goes on to state that “[a]fter approval by the

chartering school district(s) (or CAB) or the passage of 45

days, the MCSO [a]pplication is submitted to the

Department.” ([] Application Guide[ at] 2). While the

Application Guide’s language is not expressed as a

command or mandate (e.g., “the review shall be

sequential”), no reasonable reading of that language would

interpret it as providing an applicant with discretion in the

timing of its filings, and an applicant choosing its own

filing sequence would necessarily do so at its peril.

Therefore, Propel’s argument in this regard provides no

grounds on which to reverse the denial of its Application.

CAB Dec. at 20, R.R. at 5837a.

Section 1729.1-A of the CSL, which provides for the establishment of

MCSOs (MCSO Provisions), states, in relevant part:

(a) Establishment shall be as follows:

(1) Subject to the requirements of this [S]ection and

[Part 2, Subchapter C of the Associations Code, ]15

Pa.C.S. Pt. II Subpt. C[, 15 Pa.C.S. §§ 6101-6162]

8

(relating to nonprofit corporations), two (2) or more

charter schools may consolidate into a[n] [MCSO] if

both of the following apply:

(i) The [D]epartment approves the consolidation

as proposed in the application form submitted to the

[D]epartment pursuant to subsection (c). If the

[D]epartment does not approve or disapprove the

proposed consolidation within forty-five (45) days

after receipt of the application, the [D]epartment will

be deemed to have approved the consolidation.

(ii) Each school district that granted the initial

charter of any charter school included in the

proposed consolidation approves, by a majority

vote of the local board of school directors, a

resolution approving the consolidation as proposed in

the application submitted to the local board of school

directors pursuant to subsection (c). If a local board

of school directors does not adopt a resolution under

this clause approving or rejecting the proposed

consolidation within forty-five (45) days after receipt

of the application, the school district will be deemed

to have approved the consolidation.

....

(b) (1) A charter school that, within either of the most

recent two (2) school years, has failed to meet any of

the following shall not be eligible to consolidate with

another charter school:

(i) Requirements for student performance set forth in

[Chapter 4 of the State Board of Education’s

Regulations,] 22 Pa. Code Ch. 4[, §§ 4.1-4.82]

(relating to academic standards and assessment).

(ii) Accepted standards of fiscal management or audit

requirements.

(iii) A[n] [SPP] score that is among the top twenty-

fifth percentile of Pennsylvania charter schools as

measured by the [SPP] for the most recent year for

which a[n] [SPP] score is available.

9

(2) A charter school that has failed to meet any of the

requirements of paragraph (1) may consolidate if

the consolidation includes a charter school

demonstrating that it has satisfied such

requirements for the most recent two (2) school

years.

(c) Within ninety (90) days of the effective date of this

section, the [D]epartment shall develop and issue a

standard application form that [MCSO] applicants

must submit to the [D]epartment and to the local board

of school directors of each school district that granted the

initial charter of any charter school included in the

proposed consolidation. . . .

....

(f) Appeals shall be as follows:

(1) [CAB] shall have the exclusive review of an appeal

by an applicant for consolidation, with respect to the

rejection of a proposed consolidation by either the

[D]epartment or a school district.

(2) In considering an appeal under this section, [CAB]

shall:

(i) Review the decision made by either the

[D]epartment or the school district on the record as

certified by the entity that made the decision being

appealed, provided that [CAB] may allow the

[D]epartment, a school district or the applicant

for consolidation to supplement the record if the

supplemental information was previously

unavailable.

(ii) Meet to officially review the certified record no

later than thirty (30) days after the date of filing the

appeal.

(iii) Issue a written decision affirming or denying the

appeal no later than sixty (60) days following its

review of the certified record.

10

(iv) Make its decision based on whether the

proposed consolidation satisfies the requirements

of subsections (b) and (c).

....

(4) All decisions of [CAB] shall be subject to appellate

review by the Commonwealth Court. In the event of an

appeal of a decision by [CAB] to the Commonwealth

Court, the decision of [CAB] shall be stayed only upon

order of [CAB], the Commonwealth Court or the

Pennsylvania Supreme Court.

24 P.S. § 17-1729.1-A (emphasis added).

The Department’s Application Guide provides that only after obtaining

the approval from the applicable school districts, as required in Section 1729.1-

A(a)(1)(ii) of the CSL, may the applicant submit an application to the Department

under Section 1729.1-A(a)(1)(i) of the CSL. Propel correctly observes that there is

no such requirement in the MCSO Provisions of the CSL, as Section 1729.1-A(a)(1)

of the CSL simply provides that applications are to be submitted to the applicable

school districts and to the Department, and that the school districts and the

Department must render their decisions within 45 days of their receipt of the

respective application or the respective application will be deemed approved. See

24 P.S. § 17-1729.1-A(a)(1).11

In response, the District argues that CAB properly gave the

Department’s interpretation deference since the Department’s Application Guide

was based on the Department’s interpretation of the CSL - the statute it is charged

with administering. Further, according to the District, the Application Guide itself

reveals the Department’s “clearly expressed thoughtful guidance . . . based on [its]

experience[.]” District Br. at 18. Finally, the District asserts that the Application

11

Section 1729.1-A(a)(1) of the CSL merely lists approval by both the Department and the

applicable school districts as requirements for an MCSO. Notably, Section 1729.1-A(a)(1) of the

CSL lists the Department’s approval first. See 24 P.S. § 17-1729.1-A(a)(1)(i), (ii).

11

Guide is entitled to deference as a “guidance document[.]” Id. at 21. Specifically,

the District contends that the Application Guide is an interpretive rule, which should

be afforded deference, and that the Department “constantly develops and

implements guidance, which are policy statements, agency manuals, and

enforcement guidelines relating to charter schools (and other school laws,

regulations, and policies).” District Br. at 22.

The Pennsylvania Supreme Court has explained:

This Court has held “[a]n interpretation by the agency

charged with the administration of a particular law is

normally accorded deference, unless clearly erroneous.”

Harkness v. [Unemployment Comp. Bd. of Rev.], . . . 920

A.2d 162, 171 ([Pa.] 2007). Moreover, since Harkness,

we have described two types of agency interpretations

which are accorded different levels of deference. Agency

interpretations that are promulgated in published rules and

regulations have been referred to as “legislative rules” and

“are accorded a particularly high measure of deference[,]”

also known as Chevron[12] deference, and “enjoy a

presumption of reasonableness[.]” N[w.] Youth Serv[s.,

Inc. v. Dep’t of Pub. Welfare,] 66 A.3d [301,] 310-11 [(Pa.

2013)]. Non-legislative rules, also known as “interpretive

rules” or “guidance documents,” such as “manuals,

interpretive memoranda, staff instructions, policy

statements, circulars, bulletins, advisories, [and] press

releases” are accorded “a lesser quantum of deference[,]”

also known as Skidmore[13] deference, which allows an

agency’s interpretation to be disregarded when a court is

“‘convinced that the interpretative regulation adopted by

an administrative agency is unwise or violative of

legislative intent.’” Id. at 310-12, quoting Pa. Hum[.]

Rel[.] Comm’n v. Uniontown Area Sch[.] Dist[.], . . . 313

A.2d 156, 169 ([Pa.] 1973).

Harmon v. Unemployment Comp. Bd. of Rev., 207 A.3d 292, 299-300 (Pa. 2019)

(footnotes omitted).

12

Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984).

13

Skidmore v. Swift & Co., 323 U.S. 134 (1944).

12

With respect to an initial application for a charter under Section 1717-

A of the CSL,14 this Court has explained:

[T]he legislature apparently appreciated that timeliness

was an important element in assuring the fairness of the

charter school application and review process. This is

evident from the legislature’s inclusion of time limitations

at every stage of these proceedings under the CSL. Thus,

the essence of the thing to be accomplished by the CSL

is the prompt adjudication of charter school

applications. It is with this in mind that we recently

considered a time limitation imposed under the CSL and

held:

The [CSL] emphasizes that time is of the essence

and directs the local school boards and [CAB] to

quickly resolve the issue of whether to grant or deny

an institution[’]s charter school application. Thus,

we conclude that the legislature’s use of the word

“shall” in Section 1717-A(i)(8) [of the CSL] . . . is

mandatory, requiring [CAB] to issue its written

decision and order within 60 days of its final hearing

on an application.

Shenango Valley Reg[’l] Charter Sch[.] v. Hermitage

Sch[.] Dist[.], 756 A.2d 1191, 1194 (Pa. Cmwlth. 2000).

Sch. Dist. of Phila. v. Indep. Charter Sch., 774 A.2d 798, 802-03 (Pa. Cmwlth. 2001)

(emphasis added; footnotes omitted).

Similarly, here, the General Assembly imposed a strict 45-day MCSO

application review time limit for both the Department and the school districts,

providing that if a decision was not rendered on the application within the allotted

time, the application would be deemed approved. See 24 P.S. § 17-1729.1-

A(a)(1)(i), (ii). It also imposed strict time requirements on CAB’s disposition of

appeals from MCSO application decisions. See 24 P.S. § 17-1729.1-A(f)(2)(ii), (iii).

14

Added by the Act of June 19, 1997, P.L. 225, 24 P.S. § 17-1717-A.

13

In its Application Guide, the Department requires, without explicit

statutory authority, an applicant to obtain the necessary school districts’ approval

before submitting an application to the Department. In doing so, the Department

extended a process, the timeframe for which the General Assembly explicitly

dictated. Because an applicant that might otherwise submit applications to the

school districts and the Department on the same day, in accordance with the

Application Guide, must wait up to 45 days for the school districts’ decisions before

filing the application with the Department, the application process time period

envisioned by the General Assembly is effectively doubled. Such an interpretation

of the CSL is clearly inconsistent with the aforementioned legislative intent. See

Harmon. Because CAB’s interpretation is inconsistent with the CSL, it does not

merit Skidmore deference.15 Accordingly, CAB erred when it concluded that

Propel’s failure to comply with the Department’s requirement that Propel first

submit the MCSO Application to the school districts and, only upon approval by the

school districts, to the Department, was a proper basis for denying Propel’s

Application.

Propel next argues that CAB erred when it denied Propel’s appeal from

the Hearing Officer’s decision granting the Motion to Supplement by interpreting

the CSL to allow CAB to consider SPP data that became available after Propel filed

the Application.16

The Pennsylvania Supreme Court has held that “CAB must apply a de

novo standard of review when entertaining appeals from a [school d]istrict [b]oard’s

15

Propel also contends that CAB erred when it relied on the Application Guide because

the Application Guide is an improper regulation. Based on the Court’s ruling that the Department’s

interpretive rule with respect to sequential review is violative of legislative intent, the

Department’s interpretation is to be disregarded.

16

According to Propel, its lack of eligibility under the MCSO Provisions pertaining to SPP

scores resulted from CAB’s lengthy delay in rendering a decision on its Application.

14

denial of a charter school application.” W. Chester Area Sch. Dist. v. Collegium

Charter Sch., 812 A.2d 1172, 1180 (Pa. 2002).17 Pursuant to Section 1729.1-

A(f)(2)(i) of the CSL, CAB’s review of the decision below may allow

supplementation of the record, and, pursuant to Section 1729.1-A(f)(2)(iv) of the

CSL, CAB must make an independent determination of whether the charter

school has satisfied the requirements of Section 1729.1-A(b) of the CSL

(disqualifying MCSO applicants that within either of the most recent two school

years have failed to meet student performance requirements, failed to maintain fiscal

management standards, or failed to achieve SPP scores in the top 25 percentile)

and Section 1729.1-A(c) of the CSL.

17

West Chester involved Section 1717-A of the CSL, rather than Section 1729.1-A of the

CSL. The West Chester Court explained:

Section []1717-A(i)(6) [of the CSL, 24 P.S. § 17-1717-A(i)(6)]

grants [] CAB discretion to permit the parties to supplement the

record with previously unavailable information. Such directive is

inconsistent with traditional appellate review. Moreover, [Section

1717-A(i)(10) of] the CSL specifically articulates that “all decisions

of the appeal board shall be subject to appellate review by the

Commonwealth Court.” 24 P.S. § 17-1717-A(i)(10) (emphasis

added). Had the Legislature intended [] CAB to also utilize an

appellate standard of review, it could have similarly provided.

Finally, we note that the composition of [] CAB supports a finding

of de novo review. [] CAB is not comprised of attorneys capable of

conducting a legal examination of the evidence, but rather consists

of persons who have a perspective on public education. See [Section

1721-A(a) of the CSL,] 24 P.S. § 17-1721-A(a) (stating composition

of CAB as: a parent, a school board member, a certified teacher, a

faculty or administrative employee, a business person, and a

member of [the] State Board of Education).

W. Chester, 812 A.2d at 1180. Similarly, Section 1729.1-A of the CSL grants CAB discretion to

supplement the record and provides that all CAB decisions shall be subject to appellate review by

this Court. Thus, this Court concludes that Section 1729.1-A of the CSL similarly contemplates

that CAB will conduct a de novo review.

15

In approving the Hearing Officer’s record supplementation with the

2017-18 school year SPP data, CAB noted that Section 1729.1-A(f)(2)(i) of the CSL

authorized it to supplement the record and further reasoned:

It is without question that the information related to SPP

scores issued by the Department for the 2017-18 school

year was previously unavailable and could not have been

obtained or submitted for inclusion in the record prior to

the Department’s decision to deny Propel’s [] Application.

As such, the evidence related to the Charter Schools

Meeting [MCSO] Eligibility Criteria - 24 P.S. § 17-

1729.1-A, containing 2016-17 and 2017-18 data,

appended to the District’s Motion to Supplement, clearly

constitutes admissible supplementary evidence. Thus, the

Hearing Officer properly granted the District’s Motion to

Supplement, and the updated MCSO Eligibility List,

containing the 2017-18 school year SPP scores, shall be

admitted into the record.

CAB Dec. at 17, R.R. at 5834a. CAB concluded that the most recently available

SPP data was relevant information given its duty to ensure compliance with the

CSL’s requirement that at least one charter school had met the 25th quartile SPP

threshold for the two most recent school years for which scores were available. See

CAB Dec. at 18, R.R. at 5435a; see also 24 P.S. § 17-1729.1-A(b).

CAB rejected Propel’s argument that it should only consider the SPP

scores that were available at the time of its Application,18 explaining:

Contrary to Propel’s assertion, Propel-McKeesport’s loss

of qualifying status under [Section] 1729.1-A(b)(2) [of the

CSL] is fatal to its Application under both the plain

language of Section 1729.1-A [of the CSL] and the

legislative intent of the [CSL] which, in relevant part

provides:

18

According to CAB, Propel essentially claimed that “the qualifier []as of the date of the

Application[] must be read into the ‘most recent two (2) school years’” language in Section 1729.1-

A(b)(1) of the CSL. CAB Dec. at 25, R.R. at 5842a (italics added).

16

It is the intent of the General Assembly, in enacting

this article, to provide opportunities for teachers,

parents, pupils and community members to establish

and maintain schools that operate independently

from the existing school district structure as a method

to accomplish all of the following:

(1) Improve pupil learning.

(2) Increase learning opportunities for all pupils.

....

(5) Provide parents and pupils with expanded

choices in the types of educational opportunities

that are available within the public school system.

(6) Hold the schools established under this act

accountable for meeting measurable academic

standards . . . .

[Section 1702-A(1), (2), (5) and (6) of the CSL,] 24 P.S. §

17-1702-A(1), (2), (5) and (6).

In support of its intent to hold charter schools accountable

for meeting measurable academic standards, it appears

that the General Assembly enacted the SPP score criteria

in [Section] []1729.1-A(b)(1) and (2) [of the CSL] as

quality-control measures for schools seeking to

consolidate. If an applicant school could not demonstrate

its success as measured by its ranking, then it would not

be qualified to expand itself through the MCSO process.

To hold that [] CAB may only consider the SPP score

rankings from the two years immediately prior to the

application date would be inconsistent with the legislative

intent to improve learning and learning opportunities, and

to hold charter schools to measured standards. As the

intent expressed in [S]ection []1702-A(1) and (2) [of the

CSL] for increased learning and learning opportunities is

a continuing goal not limited to a single point in time, the

issue of the quality of learning being provided by schools

proposing to consolidate would seem to be always

relevant. Therefore, SPP rankings would also be always

relevant.

17

CAB Dec. at 26-27, R.R. at 5843a-5844a. Notably, the express prohibition on

merging in Section 1729.1-A(b) of the CSL, where, inter alia, the proposed MCSO

fails to include a charter school that meets the 25th percentile SPP requirement is a

separate threshold from the school district’s and the Department’s approval

requirement contained in Section 1729.1-A(a) of the CSL.

Propel cites Souderton Area School District v. Souderton Charter

School Collaborative, 764 A.2d 688 (Pa. Cmwlth. 2000), and Brackbill v. Ron

Brown Charter School, 777 A.2d 131 (Pa. Cmwlth. 2001), to support its contention

that CAB erred when it supplemented the record in this matter with the SPP data

released after Propel filed the Application, because “CAB and [the] Commonwealth

Court have interpreted . . . the [CSL] to provide for eligibility at the time the

application was submitted.” Propel Br. at 21. Both Souderton and Brackbill

involved the loss or the potential loss of a facility location identified in an application

for the initial grant of a charter.

In Souderton, CAB disagreed with a school board’s finding that the

proposed short-term facility location was inappropriate and was a substantial safety

and welfare risk to students. Given that the charter school’s plan was more than two

years out of date, CAB questioned whether the proposed facility was still available

for the charter school’s use. Nonetheless, CAB noted its responsibility to review the

application on the record certified by the school board as submitted, and concluded

that since the application was acceptable at the time it was submitted, it did not

constitute a basis for denial.

On review, this Court explained:

[I]n its opinion, [] CAB simply points out the very real

possibility that, because [the applicant’s] [a]pplication is

more than two years old, the [s]trip [m]all [f]acility that

was to house the charter school may no longer be

available. Despite this realization, [] CAB recognized

18

that, in ruling on [the applicant’s] appeal, [] CAB only

could review the suitability of the [s]trip [m]all [f]acility

presented in the [a]pplication. Having determined that this

[s]trip [m]all [f]acility was available and acceptable at the

time the [a]pplication was submitted, [] CAB could not

deny [the applicant’s] appeal based on the possibility that

this particular facility might not be available currently.

Viewing [] CAB’s order in light of the reasoning set forth

in its opinion, it becomes apparent that, in directing the

[d]istrict [b]oard to sign [the applicant’s] charter school

[a]pplication, [] CAB refers only to the [a]pplication

including the [s]trip [m]all [f]acility. The final sentence

of [] CAB’s order merely reflects [] CAB’s recognition of

a possible problem with the [a]pplication’s listed facility.

Thus, [] CAB directs [the applicant] to inform the

[s]chool [d]istrict and [] CAB in the event that [the

applicant] would need to use a different facility. In this

way, the [s]chool [d]istrict and [] CAB would be aware

that [the applicant] would have to submit a new

application to the [d]istrict [b]oard and afford the

[d]istrict [b]oard an opportunity to consider whether

the facility is appropriate under the CSL.

Souderton, 764 A.2d at 697-98 (footnote omitted; bold emphasis added).

In Brackbill, a school district challenging CAB’s grant of a charter

claimed that CAB erred because the proposed locations listed in the charter

application were no longer available. This Court rejected the school district’s

argument, reasoning:

The [c]harter [s]chool properly listed two facilities in its

application in compliance with the statutory requirement.

The [s]chool [d]istrict, through the delay caused by its

inaction, appears to have caused the [c]harter [s]chool’s

loss of rights in these proposed facilities. It would be

unreasonable to expect an applicant to maintain rights in

the precise vacant property listed in an application for the

period which it has taken for the revised application to

wend its way from the [d]istrict [b]oard to [] CAB to this

[C]ourt. Moreover, by failing to act on the revised

application, the [s]chool [d]istrict abdicated to [] CAB the

authority to review all of the relevant criteria. We believe

19

that [] CAB appropriately weighed this factor in its

determination to grant the charter. Although an applicant

must include a proposed facility in its application, there is

no requirement that the facility be under a contractual

obligation before the charter is granted. On the contrary,

[] Section 1717-A(e)(2) [of the] CSL simply provides

that[]

[a] charter school application submitted under this

article shall be evaluated . . . based on criteria

including, but not limited to, the following:

***

(iii) The extent to which the application considers the

information requested in [S]ection 1719-A [of the

CSL]. . . .

24 P.S. § 17-1717-A(e)(2). [] CAB found that the [c]harter

[s]chool had met the statutory requirements and thus had

appropriately considered the facility necessary for

operation of its school. Therefore, we believe [] CAB

acted within its discretion in granting the charter subject

to the requirement that the [c]harter [s]chool present

information regarding its facility prior to the opening

of the school.

Brackbill, 777 A.2d at 139 (footnote omitted; emphasis added).19

19

Apart from its reliance on Souderton and Brackbill, Propel contends that “[a] second,

but equally important provision of the CSL that provides evidence of the General Assembly’s

legislative intent are the mandatory timelines for action on both charter school applications and

MCSO applications.” Propel Br. at 21. Propel further urges:

As noted by the Commonwealth Court in Independence Charter

School, “the legislature apparently appreciated that timeliness was

an important element in assuring the fairness of the charter school

application and review process.” [Id.] at 803. These provisions

apply equally to the MCSO [P]rovisions as they do to establishing

the charter school . . . .

Propel Br. at 23. According to Propel,

good sense and practicality demand that the relevant time period to

consider the SPP data in the instant appeal is at the time the

Application was filed with the District. Any other possible result

would allow for the charter schools that have filed a consolidation

20

Notably, in both of these cases involving the review of an initial charter

application, this Court affirmed CAB’s decision where that decision conditioned

the charter grant on the applicant providing updated facility information to

determine compliance with the CSL. Thus, although the applications were

approved based on the information submitted, the ultimate charter grant was

conditioned on CSL compliance involving circumstances occurring after the

application submission date. Accordingly, neither Souderton nor Brackbill stand for

the proposition that CAB must ignore changes in circumstances occurring after the

application date which render applicants statutorily ineligible to effect a merger

under the CSL.

Interestingly, in Montour School District v. Propel Charter School-

Montour, 889 A.2d 682 (Pa. Cmwlth. 2006), a case involving one of the same

schools included in Propel’s Application, the Montour School District (MSD) sought

review of CAB’s order reversing MSD’s denial of a charter application for Propel-

Montour. At argument before CAB, Propel-Montour notified MSD and CAB that it

recently learned that its proposed facility was no longer available. Propel-Montour

represented that it was pursuing a lease for another facility, but that such lease would

application to potentially be subject to a rollercoaster of eligibility

determinations based upon updated data while the application sits in

litigation limbo.

Propel Br. at 27 (footnote omitted). This Court disagrees.

When considering an MCSO appeal, CAB is specifically charged with a duty to ensure that

the applicant is not ineligible due to the applicant’s failure to maintain student performance

requirements, lack of accepted standards of fiscal management or audit requirements and that the

applicant has an SPP profile among the top 25th percentile. See 24 P.S. § 17-1729.1-A(f)(2)(iv)

(referencing Section 1729.1-A(b) and (c) of the CSL). Unlike both Souderton and Brackbill, where

the charter school applicants were unable to prevent a private landlord from leasing to another

their intended future location, an applicant’s adherence to the standards in Section 1729.1-A(b) of

the CSL, is within the applicant’s control. It is not unreasonable to expect an MCSO applicant to

maintain the required standards at least until CAB has rendered a decision on its MCSO application

appeal.

21

require zoning changes for charter school use. MSD objected to the submission of

any evidence with respect to the new facility and CAB barred the submission of such

evidence. Nonetheless, CAB reversed MSD’s denial of Propel-Montour’s

application. On appeal to this Court, MSD argued, inter alia, that CAB erred by

ordering MSD to issue a charter without an identified location, and requiring Propel-

Montour to merely inform MSD and CAB of the new location without requiring

submission of the proposed site for MSD’s approval. In response, Propel-Montour

argued that “it was prepared and willing to present evidence of the new proposed

facility at oral argument before CAB, but was not allowed to do so because of

[MSD’s] vigorous objections.” Montour, 889 A.2d at 688.

The Montour Court explained:

We have previously held that CAB has the authority to

conduct a de novo review of a school district’s denial of a

charter application. Here, however, given its authority to

conduct a de novo review, CAB erroneously failed to hear

[Propel-Montour’s] evidence concerning the new

proposed site when it sustained the [school d]istrict’s

objections. Under Souderton, CAB could not then order

the [d]istrict to grant the charter in the absence of any

evidence of a proposed site for the school. Accordingly,

because CAB failed to hear and consider [Propel-

Montour’s] evidence with regard to the new proposed

facility, we must vacate CAB’s order and remand to CAB

for the purpose of hearing this evidence to determine

whether the new proposed site is suitable under the CSL

before CAB can order the charter to be granted.

Montour, 889 A.2d at 690 (italics added).

This Court addressed the propriety of supplementing a record with

recently released SPP scores in Reading School District v. I-Lead Charter School,

206 A.3d 27 (Pa. Cmwlth. 2019), a charter school revocation case where evidence

of the school’s performance was relevant to CAB’s decision. In I-Lead, this

Court considered whether CAB properly reversed a school district’s charter

22

revocation. In conducting its review, CAB granted the school district’s motion to

supplement the record to include significantly lower SPP scores released after the

school district rendered its decision, but did not consider the supplemented SPP

scores when it reversed the school district’s revocation. Section 1729-A(d) of the

CSL governed CAB’s exercise of its independent judgment and provided, in relevant

part:

[CAB] shall have the exclusive review of a decision not to

renew or revoke a charter. [CAB] shall review the record

and shall have the discretion to supplement the record if

the supplemental information was previously unavailable.

[CAB] may consider the charter school plan, annual

reports, student performance and employe and community

support for the charter school in addition to the record.

[CAB] shall give due consideration to the findings of the

local board of directors and specifically articulate its

reasons for agreeing or disagreeing with those findings in

its written decision[.]

24 P.S. § 17-1729-A(d).

In holding that CAB deliberately disregarded the supplemented

evidence, this Court recognized with respect to the similar statutory language in

Section 1729-A of the CSL permitting supplementation of the record,

[b]ased on its clear language, Section 1729-A(d) of the

CSL specifically contemplates that, on appeal, CAB may

consider information that did not inform a school district’s

decision. This statement is consistent with CAB’s de novo

review function, “making an independent determination as

to the merits . . . .” W. Chester, 812 A.2d at 1180 .

I-Lead, 206 A.3d at 36 (footnote omitted). In a footnote, the I-Lead Court

recognized that

prior CAB decisions have relied upon student performance

data occurring after a school district resolved to revoke a

charter. See, e.g., Imani Educ. Circle Charter Sch. [v. Sch.

Dist. of Phila., (Dkt. No. CAB 2014-08, filed May 11,

2016)]; Cmty. Acad. of Phila. Charter Sch. v. Sch. Dist. of

23

Phila., Sch. Reform Comm’n, (Dkt. No. CAB 2013-12,

filed September 8, 2014).

I-Lead, 206 A.3d at 36 n.19.

The statutory language at issue in Section 1729.1-A of the CSL

pertaining to MCSO approval is similar to that in Section 1729-A of the CSL at issue

in I-Lead. Like Section 1729-A(d) of the CSL, Section 1729.1-A(f) of the CSL

(pertaining to MCSO appeals) provides that it is CAB’s duty to “[r]eview the

decision made by either the [D]epartment or school district on the record as certified

. . . [and in its discretion, permit parties to] supplement the record if the supplemental

information was previously unavailable.” 24 P.S. § 17-1729.1-A(f)(2)(i).

Although, unlike Section 1729-A(d) of the CSL, Section 1729.1-A(f)

of the CSL does not explicitly authorize CAB to consider evidence “in addition to

the record[,]” 24 P.S. § 17-1729-A(d), it allows CAB to supplement the record,

which CAB did. See 24 P.S. § 17-1729.1-A(f)(2)(i). Propel argues that this Court

should limit CAB’s ability to supplement the record only to evidence existing at the

time it filed its Application. There is no language in Section 1729.1-A(f)(2)(i) of the

CSL limiting relevant evidence only to evidence available at the time the Application

was filed. It is beyond cavil that “courts ‘have no authority to add or insert language

into a statute’ and should not, through interpretation, add a requirement that the

General Assembly did not include.” Twp. of Wash. v. Twp. of Upper Burrell, 184

A.3d 1083, 1089 (Pa. Cmwlth. 2018) (quoting Summit Sch., Inc. v. Dep’t of Educ.,

108 A.3d 192, 199 (Pa. Cmwlth. 2015)).

Like Section 1729-A(d) of the CSL, Section 1729.1-A(f)(2)(i) of the

CSL, “specifically contemplates that, on appeal, CAB[, through supplementation

of the record with relevant evidence,] may consider information that did not inform

a school district’s [or the Department’s] decision.” I-Lead, 206 A.3d at 36. Section

1729.1-A(f)(2)(iv) of the CSL, imposes a duty on CAB to “[m]ake its decision based

24

on whether the proposed consolidation satisfies the requirements of subsections (b)

[(disqualifying from mergers those charter schools that fail to meet the top 25th

percentile SPP threshold for the two most recent school years for which scores are

available),] and (c) [(governing application submission)].”20 24 P.S. § 17-1729.1-

A(f)(2)(iv). Where, as here, such relevant evidence pertains to CAB’s explicitly

imposed statutory duty to ensure that at least one of the schools in the proposed

MCSO meets the SPP threshold requirements, requiring CAB to ignore evidence

that applicants no longer meet the requirements would impede CAB’s ability to

perform its duties. The approval of a noncompliant applicant’s MCSO application

would undermine “[t]he core purpose of the [CSL which] is to improve students’

education.” New Hope Acad. Charter Sch. v. Sch. Dist. of the City of York, 89 A.3d

731, 739 (Pa. Cmwlth. 2014).

The New Hope Court further explained:

The General Assembly expressly set forth its intention in

enacting the [CSL] to “[i]mprove pupil learning,”

“[i]ncrease learning opportunities for all pupils,” and

“[h]old the schools established under [the CSL]

accountable for meeting measurable academic

standards and provide the school with a method to

establish accountability systems.” [Section 1702-A (1),

(2), (6) of the CSL,] 24 P.S. § 17-1702-A(1), (2), (6)[.]

20

Propel strongly asserts that its inability to meet the SPP threshold is a direct consequence

of CAB’s delay in rendering a valid vote on its Application. It insists that, because it satisfied the

SPP threshold at the time of its application and during the period that CAB was statutorily required

to issue a decision on its appeal, CAB’s delay in rendering a decision (during which time new SPP

scores were released) caused Propel’s SPP threshold deficiency. Notably, Propel did not challenge

the validity of CAB’s decision based on CAB’s delay. This Court acknowledges that CAB’s

inability to render a decision on the Application lengthened the review process beyond that

permitted in the MCSO Provisions. Notwithstanding, of the eight charter schools included in the

Application, only Propel-McKeesport satisfied the SPP threshold at the time of filing, and even

that school subsequently fell below the SPP threshold. Thus, at the time that CAB rendered its

decision on the Application, not a single school out of the eight satisfied the threshold requirement.

Despite the delay which exceeded CAB’s statutorily-mandated review window, neither CAB, nor

this Court may ignore other mandates in the MCSO Provisions.

25

New Hope, 89 A.3d at 739 (emphasis added; citation omitted). Therefore,

considering an applicant’s most recent SPP scores in reviewing a charter school

merger decision furthers these expressed intentions by permitting CAB to more

accurately consider the potential merger’s impact on the affected students.

Accordingly, this Court concludes that CAB properly denied Propel’s appeal from

the Hearing Officer’s decision granting the Motion to Supplement. Further, because

Propel failed to meet Section 1729.1-A(b)(1) of the CSL’s threshold requirements

pertaining to SPP data, it did not qualify for MCSO approval.21

For the foregoing reasons, CAB’s order is affirmed.

_________________________________

ANNE E. COVEY, Judge

21

CAB correctly concluded:

For purposes of the Application, the “most recent two (2) school

years” were 2016-17 and 2017-18; and, given as much, Propel does

not meet the application requirements for an MCSO under [Section]

[]1729.1-A(b)(1) [of the CSL] because its [A]pplication does not

reference a school within the [top 25th percentile] of Pennsylvania

[c]harter [s]chools for the two most recent school years for which

scores are available, as is evidenced by the updated MCSO

Eligibility List.

....

Upon giving due consideration to the findings of the School Board,

the evidentiary record, and the requirements of CSL, [] CAB finds

that the District’s denial of the [] Application in this case was proper.

CAB Dec. at 28, R.R. at 5845a.

26

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Propel Charter Schools, :

Petitioner :

:

v. :

:

School District of Pittsburgh :

(State Charter School Appeal Board), : No. 1210 C.D. 2020

Respondent :

ORDER

AND NOW, this 19th day of November, 2021, the State Charter School

Appeal Board’s December 22, 2020 order is affirmed.

_________________________________

ANNE E. COVEY, Judge

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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