SC charter schools to face more scrutiny under finalized accountability bill

COLUMBIA — Charter schools, their authorizers and the management companies they hire will face more oversight after legislators sent a bill meant to increase accountability to the governor’s desk Wednesday.

SC charter schools are growing yearly. Senators want more accountability.

For years, legislators have worried about the lack of accountability for schools and the sponsors holding the contracts that allow them to operate.

The proposal is meant to create more state-level oversight, reduce conflicts of interest and increase transparency, especial for the schools’ financials.

Two major waves in the state’s charter school system helped build momentum to get the bill over the finish line this year.

The first came in April 2025, when Limestone University announced it would close. The Gaffney college held contracts for 17 charter schools, which were sent scrambling for new authorizers so they could stay open.

Then, late last year, the state’s auditor released a report that found potential misspending and conflicts of interest at the Charter Institute at Erskine, the state’s second-largest authorizer.

While none of the issues raised broke state law, the report noted that was often because existing law was vague or silent on many matters.

Meanwhile, the number of charter schools and students attending them continued to grow, with about 80 new schools planned for the 2027-2028 school year.

The final bill, which both the House and Senate approved this week, requires charter schools to report more financial reports on their websites and adds oversight from the state education agency.

Authorizers would have to apply to open a new school instead of simply notifying the Department of Education about their plans. The agency would have the power to review potential charter schools and authorizers to make sure they meet the qualifications laid out in the bill.

During the school’s operation, the education department would have more oversight capabilities, allowing the agency to order the closure of low-performing schools or revoke an authorizer’s ability to hold their contracts.

Schools trying to switch authorizers would need permission from both, and either authorizer could turn down a school’s request if they determined the move was intended to escape accountability.

That was intended to cut down on what Senate Education Chairman Greg Hembree, a Little River Republican, referred to as “hopping and shopping,” where schools at risk of closure moved to another authorizer with lower standards.

Any school that received a score below average on its report cards for three years in a row, not including its first year of operation, would have to close.

The bill is also meant to cut down on conflicts of interest between authorizers and charter schools, cracking down on what Hembree called “cross-contamination” between the schools’ boards and their sponsors.

Members of local school boards and the for-profit companies hired to run charter schools, along with their family members, couldn’t serve on the elected charter school boards. And authorizers couldn’t require charter schools buy any services or products directly from them.

Senate bill boosting oversight for SC charter schools wins unanimous support

Schools would have to post their annual budget documents, regular audits, and all purchases over $100 or made with a company credit card to their websites for the public to see.

Any charter school or authorizer that violated the law would risk losing up to 10% of their annual funding from the state.

The Public Charter School District, a statewide authorizer created in a 2006 law, praised the bill’s passage Wednesday, saying it would lead to a stronger school system.

“This bill represents a significant step forward in promoting accountability, transparency, and strong governance within the state’s charter school sector,” Superintendent Chris Neeley said in a statement.

Courtesy of South Carolina Daily Gazette