The DeKalb County School District agreed to pay $29.5 million to seven charter schools who won a lawsuit accusing the district of withholding funding.
A judge ruled in 2022 that the district breached its contracts with the schools when it withheld state and federal funding, failed to meet minimum funding requirements and improperly withheld a portion of the schools’ funding for an “administrative fee” without providing administrative services.
Charter schools are public schools and receive public funding, but they are privately operated under district oversight. State law requires that districts fund charter schools “no less favorably” than other schools.
The Georgia Court of Appeals affirmed the ruling in 2023, with the district and charter schools due back in court this summer to determine the amount owed. They signed the settlement in June, before the trial was started. The DeKalb County Board of Education approved the settlement at its June meeting.
The Museum School of Avondale Estates, one of the plaintiffs, said in an update to families this week that the school is “thrilled.”
“The charter schools appreciate this resolution, and hope that it marks a turning point in their relationship with the District,” the message stated. “The charters believe firmly in the importance of collaboration and mutual respect to better serve all students across DeKalb County.”
The schools originally claimed that more than $10 million in funding was withheld, but the district agreed to pay $29.5 million, according to the settlement agreement obtained by The Atlanta Journal-Constitution.
The settlement described a specific amount going to each of the schools:
- DeKalb Agriculture Technology and Environment: $4.66 million
- DeKalb Preparatory Academy: $4.01 million
- The Globe Academy: $5.99 million
- The Museum School of Avondale Estates: $4.07 million
- Leadership Preparatory Academy: $3.66 million
- DeKalb Path Academy: $3.78 million
- Tapestry Public Charter School: $3.33 million
The settlement also requires the district to provide monthly “wire sheets” showing how it calculates monthly funding distributions to the schools, for as long as the schools remain in operation.
Interim Superintendent Norman Sauce III said in an emailed statement that the board’s decision to approve the settlement is an important step forward for the state’s third-largest school system.
“This action allows us to turn the page and move forward together with a renewed focus on serving our students and families,” he said.
The charter schools originally filed the lawsuit in 2020, and claimed funding problems dating back to 2015.
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