[Congressional Record Volume 143, Number 153 (Wednesday, November 5, 1997)]
[Senate]
[Pages S11775-S11778]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COATS (for himself, Mr. Lieberman, Mr. D'Amato, and Mr. 
        Kerrey):
  S. 1380. A bill to amend the Elementary and Secondary Education Act 
of 1965 regarding charter schools; to the Committee on Labor and Human 
Resources.


                the charter school expansion act of 1997

  Mr. COATS. Mr. President, I am so pleased to join my good friend, 
Senator Lieberman, in introducing another bill which has as its primary 
aim the expansion of educational opportunities for children. Senator 
Lieberman has been a leader in promoting educational alternatives, and 
his efforts in the charter school movement have contributed to the 
tremendous growth in the number of charter schools since 1994. I 
commend him for his work in this area and am honored to join him in 
introducing the Charter School Expansion Act of 1997.
  This bill builds on the great success of the original charter school 
legislation which Senator Lieberman introduced in 1994. The Federal 
Charter School Grant Program provided seed money to charter school 
operators to help them cover the startup costs of beginning a charter 
school. In the last 3 years, the number of charter schools in operation 
around the country has tripled, with more than 700 charter schools now 
in 23 States.
  The purpose of this bill is to further encourage the growth of high-
quality charter schools around the country.
  This bill provides incentives to encourage States to increase the 
number of charter schools in their State. The bill also tightens the 
eligibility definitions to better direct funds to those States who are 
committed to developing strong charter schools.
  To ensure that charter schools have enough funding to continue once 
their doors are opened, this bill provides that charter schools get 
their fair share of Federal programs for which they are eligible, such 
as title 1 and IDEA.
  This bill also increases the financing options available to charter 
schools and allows them to utilize funds from the title VI block grant 
program for startup costs.
  And finally, the Secretary of Education and each State education 
agency is directed to inform every school district about the charter 
school option so that this educational alternative will be an option 
for any parent who is interested.


                       what are charter schools?

  Charter schools are independent public schools that have been freed 
from onerous bureaucratic and regulatory burdens and able to design and 
deliver educational programs tailored to meet the needs of their 
students and their communities.
  The individualized education available to students through charter 
schools makes this a very desirable educational alternative. Charter 
schools give families an opportunity to choose the educational setting 
that best meet their child's needs. For many low-income families in 
particular, charter schools provide their first opportunity to select 
educational setting which is best for their child.
  These innovative charter schools are having tremendous academic 
success serving the same population of students who are struggling in 
more traditional public school settings. Several recent studies have 
highlighted the success of charter schools around the country in 
serving at-risk students. A study conducted by the Hudson Institute 
found dramatic improvement for minority and low income students who had 
been failing in their previous school. These students are flourishing 
in the smaller, challenging environments found in charter schools.
  With results like these, it is no wonder that some of the strongest 
support

[[Page S11776]]

for charter legislation comes from low-income families. Low-income 
families not only have real educational choices, but are actually 
needed in the charter school environment for everything from 
volunteering, to coaching, for fundraising, and even teaching. This 
direct involvement of families is helping to build small communities 
centered around the school.
  Charter schools can be started by anyone interested in providing a 
quality education: Parents, teachers, school administrators, community 
groups, businesses, and colleges can all apply for a charter. And, 
importantly, if these schools fail to deliver a high-quality education, 
they will be closed--either through a district or State's 
accountability measures or due to lack of customers. Accountability is 
literally built in to the charter school process--a school's charter 
must be complied with and unhappy parents and students can leave if 
they are not satisfied.
  In addition to the positive impact on the charter's students and 
their families, the overall charter movement is serving as a catalyst 
for change in the public schools. A foundational principle of the 
charter concept is that fair competition can stimulate improvement. And 
improvement in public schools has been spurred around the country due 
to the rapid growth of charter schools.

  Recently, several studies have been released highlighting some of the 
success of charter schools around the country. In May, the Department 
of Education released its first formal report on its study of charter 
schools. Key first-year findings include:
  The two most common reasons for starting public charter schools are 
flexibility from bureaucratic laws and regulations and the chance to 
realize an educational vision.
  In most States, charter schools have a racial composition similar to 
statewide averages or have a higher proportion of minority students.
  Charter schools enroll roughly the same proportion of low income 
students, on average, as other public schools.
  Over the last 2 years, the Hudson Institute has undertaken its own 
study of charter schools, entitled ``Charter Schools in Action.'' Their 
research team traveled to 14 States, visited 60 schools, and surveyed 
thousands of parents, teachers, and students.
  Some of this study's key findings include:
  Three-fifths of charter school students report that their charter 
school teachers are better than their previous school's teacher.
  Over two-thirds of parents say their charter school is better than 
their child's previous schools with respect to class size, school size, 
and individual attention.
  Over 90 percent of teachers are satisfied with their charter school's 
educational philosophy, size, fellow teachers, and students.
  Among students who said they were failing at their previous school, 
more than half are now doing excellent or good work. These gains were 
dramatic for minority and low-income youngsters, and were confirmed by 
their parents.
  The example of these schools point to important ways to improve and 
reinvent public education as a whole. The implications from the success 
of charter schools indicate that successful public schools should be 
consumer-oriented, diverse, results-oriented, and professional places 
that also function as mediating institutions in their communities.
  The tremendous success of charter schools in the last 6 years gives 
me great hope for the success of overall education reform. The more 
than 700 charter schools in this country that have sprung up in such a 
short period of time provide solid evidence that parents are interested 
in improving their children's educational opportunities and they will 
do whatever it takes.
  With the introduction of this bill, the Charter School Expansion Act, 
Senator Lieberman and I hope to send a signal to parents all across 
this country that they are not alone in their struggle to improve 
education for their children. We hope to ease their struggle by 
enabling new charter schools to be developed. More charter schools will 
result in greater accountability, broader flexibility for classroom 
innovation, and ultimately more choice in public education. I urge my 
colleagues to support this bill and to increase educational 
opportunities for all children.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1380

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Charter School Expansion Act 
     of 1997''.

     SEC 2. INNOVATIVE CHARTER SCHOOLS.

       Title VI of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7301 et seq.) is amended--
       (1) in section 6201(a) (20 U.S.C. 7331(a))--
       (A) in paragraph (1)(C), by striking ``and'' after the 
     semicolon;
       (B) by redesignating paragraph (2) as paragraph (3); and
       (C) by inserting after paragraph (1) the following:
       ``(2) support for planning, designing, and initial 
     implementation of charter schools as described in part C of 
     title X; and''; and
       (2) in section 6301(b) (20 U.S.C. 7351(b))--
       (A) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (B) by redesignating paragraph (8) as paragraph (9); and
       (C) by inserting after paragraph (7) the following:
       ``(8) planning, designing, and initial implementation of 
     charter schools as described in part C of title X; and''.

     SEC. 3. CHARTER SCHOOLS.

       (a) Purpose.--Section 10301(b) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8061(b)) is 
     amended--
       (1) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(3) expanding the number of high-quality charter schools 
     available to students across the Nation.''.
       (b) Criteria for Priority Treatment.--Section 10302 of such 
     Act of 1965 (20 U.S.C. 8062) is amended by adding at the end 
     the following:
       ``(e) Priority Treatment.--
       ``(1) In general.--
       ``(A) Fiscal years 1998, 1999, and 2000.--In awarding 
     grants under this part for any of the fiscal years 1998, 
     1999, and 2000 from funds appropriated under section 10311 
     that are in excess of $51,000,000 for the fiscal year, the 
     Secretary shall give priority to States to the extent that 
     the States meet 1 or more of the criteria described in 
     paragraph (2).
       ``(B) Succeeding fiscal years.--In awarding grants under 
     this part for fiscal year 2001 or any succeeding fiscal year 
     from any funds appropriated under section 10311, the 
     Secretary shall give priority to States to the extent that 
     the States meet 1 or more of the criteria described in 
     paragraph (2).
       ``(2) Priority criteria.--The criteria referred to in 
     paragraph (1) are as follows:
       ``(A) The State has demonstrated significant progress in 
     increasing the number of charter schools in the period prior 
     to the period for which a State educational agency or 
     eligible applicant applies for a grant under this part.
       ``(B) The State law regarding charter schools--
       ``(i) provides for at least 1 authorized public chartering 
     agency that is not a local educational agency for each 
     individual or entity seeking to operate a charter school 
     pursuant to such State law; or
       ``(ii) in the case of a State in which local educational 
     agencies are the only authorized public chartering agencies, 
     allows for an appeals process for the denial of an 
     application for a charter school.
       ``(C) The State law regarding charter schools provides for 
     the automatic waiver of most State and local education laws 
     and regulations, except those laws and regulations related to 
     health, safety, and civil rights.
       ``(D) The State law regarding charter schools provides for 
     periodic review and evaluation by the authorized public 
     chartering agency of each charter school to determine whether 
     the charter school is meeting or exceeding the academic 
     performance requirements and goals for charter schools as set 
     forth under State law or the school's charter.
       ``(f) Amount Criteria.--In determining the amount of a 
     grant to be awarded under this part to a State educational 
     agency, the Secretary shall take into consideration the 
     number of charter schools that will be created under this 
     part in the State.''.
       (c) Applications.--Section 10303(b) of such Act (20 U.S.C. 
     8063(b)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) describe how the State educational agency--
       ``(A) will inform each charter school in the State 
     regarding--
       ``(i) Federal funds that the charter school is eligible to 
     receive; and
       ``(ii) Federal programs in which the charter school may 
     participate;

[[Page S11777]]

       ``(B) will ensure that each charter school in the State 
     receives the charter school's commensurate share of Federal 
     education funds that are allocated by formula; and
       ``(C) will disseminate best or promising practices of 
     charter schools to each local educational agency in the 
     State; and''.
       (d) National Activities.--Section 10305 of such Act (20 
     U.S.C. 8065) is amended to read as follows:

     ``SEC. 10305. NATIONAL ACTIVITIES.

       ``The Secretary shall reserve for each fiscal year the 
     lesser of 5 percent of the amount appropriated to carry out 
     this part for the fiscal year or $5,000,000, to carry out the 
     following activities:
       ``(1) To provide charter schools, either directly or 
     through State educational agencies, with--
       ``(A) information regarding--
       ``(i) Federal funds that charter schools are eligible to 
     receive; and
       ``(ii) other Federal programs in which charter schools may 
     participate; and
       ``(B) assistance in applying for Federal education funds 
     that are allocated by formula, including assistance with 
     filing deadlines and submission of applications.
       ``(2) To provide for the completion of the 4-year national 
     study (which began in 1995) of charter schools.
       ``(3) To provide--
       ``(A) information to applicants for assistance under this 
     part;
       ``(B) assistance to applicants for assistance under this 
     part with the preparation of applications under section 
     10303;
       ``(C) assistance in the planning and startup of charter 
     schools;
       ``(D) training and technical assistance to existing charter 
     schools;
       ``(E) information to applicants and charter schools 
     regarding gaining access to private capital to support 
     charter schools; and
       ``(F) for the dissemination of best or promising practices 
     in charter schools to other public schools.''.
       (e) Commensurate Treatment; Records Transfer; Paperwork 
     Reduction.--Part C of title X of such Act (20 U.S.C. 8061 et 
     seq.) is amended--
       (1) by redesignating sections 10306 and 10307 as sections 
     10310 and 10311, respectively; and
       (2) by inserting after section 10305 the following:

     ``SEC. 10306. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR 
                   AND FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

       ``For purposes of the allocation to schools by the States 
     or their agencies of funds under part A of title I, and any 
     other Federal funds which the Secretary allocates to States 
     on a formula basis, the Secretary and each State educational 
     agency shall take such measures not later than 6 months after 
     the date of enactment of the Charter School Expansion Act of 
     1997 as are necessary to ensure that every charter school 
     receives the Federal funding for which the charter school is 
     eligible not later than 5 months after the charter school 
     first opens, notwithstanding the fact that the identity and 
     characteristics of the students enrolling in that charter 
     school are not fully and completely determined until that 
     charter school actually opens. The measures similarly shall 
     ensure that every charter school expanding its enrollment in 
     any subsequent year of operation receives the Federal funding 
     for which the charter school is eligible not later than 5 
     months after such expansion.

     ``SEC. 10307. SOLICITATION OF INPUT FROM CHARTER SCHOOL 
                   OPERATORS.

       ``To the extent practicable, the Secretary shall ensure 
     that administrators, teachers, and other individuals directly 
     involved in the operation of charter schools are consulted in 
     the development of any rules or regulations required to 
     implement this part, as well as in the development of any 
     rules or regulations relevant to charter schools that are 
     required to implement part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), the 
     Individuals with Disabilities Education Act (20 U.S.C. 1400 
     et seq.), or any other program administered by the Secretary 
     that provides education funds to charter schools or regulates 
     the activities of charter schools.

     ``SEC. 10308. RECORDS TRANSFER.

       ``State educational agencies and local educational 
     agencies, to the extent practicable, shall ensure that a 
     student's records and, if applicable, a student's 
     individualized education program as defined in section 
     602(11) of the Individuals with Disabilities Education Act 
     (20 U.S.C. 1401(11)), are transferred to a charter school 
     upon the transfer of the student to the charter school, in 
     accordance with applicable State law.

     ``SEC. 10309. PAPERWORK REDUCTION.

       ``To the extent practicable, the Secretary and each 
     authorized public chartering agency shall ensure that 
     implementation of this part results in a minimum of paperwork 
     for any eligible applicant or charter school.''.
       (f) Part C Definitions.--Section 10310(1) of such Act (as 
     redesignated by subsection (e)(1)) (20 U.S.C. 8066(1)) is 
     amended--
       (1) in subparagraph (A), by striking ``an enabling 
     statute'' and inserting ``a specific State statute 
     authorizing the granting of charters to schools'';
       (2) in subparagraph (H), by inserting ``is a school to 
     which parents choose to send their children, and that'' 
     before ``admits'';
       (3) in subparagraph (J), by striking ``and'' after the 
     semicolon;
       (4) in subparagraph (K), by striking the period and 
     inserting ``; and''; and
       (5) by adding at the end the following:
       ``(L) has a written performance contract with the 
     authorized public chartering agency in the State.''.
       (g) Authorization of Appropriations.--Section 10311 of such 
     Act (as redesignated by subsection (e)(1)) (20 U.S.C. 8067) 
     is amended by striking ``$15,000,000 for fiscal year 1995'' 
     and inserting ``$100,000,000 for fiscal year 1998''.
       (h) Title XIV Definitions.--Section 14101 of such Act (20 
     U.S.C. 8801) is amended--
       (1) in paragraph (14), by inserting ``, including a public 
     elementary charter school,'' after ``residential school''; 
     and
       (2) in paragraph (25), by inserting ``, including a public 
     secondary charter school,'' after ``residential school''.
       (i) Conforming Amendment.--The matter preceding paragraph 
     (1) of section 10304(e) of such Act (20 U.S.C. 8064(e)) is 
     amended by striking ``10306(1)'' and inserting ``10310(1)''.

  Mr. LIEBERMAN. Mr. President, I rise today to join my good friend and 
partner Senator Coats in introducing legislation that would speed the 
progress of what is arguably the most promising engine of education 
reform in America today, the charter school movement.
  Before discussing the legislation itself, I think it's important to 
talk first about the context in which it is being introduced and the 
ongoing debates here in Congress over how best to improve our public 
schools and expand educational opportunities for all students. In 
listening to much of the back and forth recently, particularly about 
efforts to promote a limited school choice program, it seems that too 
often these battles are being waged, in the words of the great John 
Gardner, between uncritical lovers and unloving critics, those who 
would defend the status quo in public education at all costs and those 
who would attack it at the drop of a hat, with neither side doing much 
listening.
  Making matters worse, the uncritical lovers have helped reduce this 
challenging, vitally important discussion to a simplistic either-or 
equation. Either you are for public education, which means you 
subscribe to a certain orthodoxy and dare not depart from it, or you 
are against it. Either you subscribe to a small set of educationally 
correct methods of reform or you are subverting public education as we 
know it.
  In my view, this shortsightedness is shortchanging our children. 
Given how many students are being served poorly by the status quo, 
particularly those living in urban areas who are trapped in deadening 
and in some cases deadly public schools, and given the crucial role 
that education will play in determining whether the American dream can 
be made real for those kids in the information age, we have an 
obligation to leave no policy stone unturned or untested and judge 
ideas by the simple, unalloyed standard of what works. We must be open 
to trying any plan or program that offers the hope of better education 
for our children.
  That is why Senator Coats and I have been advocating for some time 
that we experiment with private school choice, sponsoring a series of 
bills to set up pilot programs in our cities to see if giving low-
income students the chance to attend a private or faith-based school 
will enhance their learning and force those failing public schools to 
improve.
  And that is why today we want to take this opportunity to express our 
support for the growing public charter school movement and to outline 
our plans to help make these innovative, independent programs the norm 
rather than a novelty in this country.
  I have been a long-time advocate of the charter approach, which 
grants educators freedom from top-heavy bureaucracies and their redtape 
in exchange for a commitment to meet high academic standards. After 
visiting, this week, with a group of passionate charter school 
operators and teachers at a national conference here in town, I am all 
the more convinced that charter schools represent what may be the 
future of public education. These folks are driving a grassroots 
revolution that is seeking to reinvent the public school and take it 
back to the future, reconnecting public education to some of our 
oldest, most basic values--ingenuity, responsibility, accountability--
and refocusing its mission on doing what's best for the child instead 
of what's best for the system.

  The results speak for themselves. Over the past 3 years, the number 
of public charter schools have more than

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tripled, with more than 700 of them operating in 23 different States 
and the District of Columbia, and parents in turn have given these 
programs overwhelmingly high marks for their responsiveness to them as 
consumers. Broad-based studies done by the Hudson Institute and the 
Education Department show that charters are effectively serving diverse 
populations, particularly many of the disadvantaged and at-risk 
children that traditional public schools have struggled to educate. And 
while it's too soon to determine what impact charter schools are having 
on overall academic performance, the early returns in places like 
Massachusetts suggest that charters are succeeding where it matters 
most, in the classroom.
  Perhaps most heartening of all, a recent survey done by the National 
School Board Association found that the charter movement is already 
having a ripple effect that is being felt in many local school 
districts. The NSBA report cites evidence that traditional schools are 
working harder to please local families so they won't abandon them to 
competing charter schools, and that central administrators often see 
charters as a powerful tool to develop new ideas and programs without 
fearing regulatory roadblocks.
  The most remarkable aspect of this movement may be that it has 
managed to bring together educators, parents, community activists, 
business leaders, and politicians from across the political spectrum on 
common ground in support of a common goal to better educate our 
children through more choice, more flexibility, and more accountability 
in our public schools. In these grassroots may lie the roots of a 
consensus for renewing the promise of public education.
  We want to build on this agreement and the successes of charter 
schools and do what we can at the Federal level to encourage the growth 
of this movement. So today we will be introducing bipartisan 
legislation that will strengthen the Federal investment in charter 
schools and help remove some of the hurdles preventing charters from 
flourishing in every State.
  Our bill, the Charter School Expansion Act, would revamp the Federal 
Charter School Grant Program to make it more focused on helping States 
and local groups create new schools and meet the President's goal of 
creating 3,000 charters by the year 2000. We want to increase funding 
for grants to new schools, which help charter operators meet the high 
costs of starting a school from scratch, and better target that aid to 
the States that are serious about expanding their charter program. Our 
hope is that these changes will give States that have been slow to 
embrace the charter movement an incentive to get on board.
  In the near term, we feel this bill can be a starting point for 
overcoming our partisan and ideological differences and reaching a 
consensus on how to improve our schools and safeguard the hopes of our 
children. This proposal has already generated bipartisan interest both 
here in the Senate and the House, the administration has expressed its 
support, and we are optimistic it will be passed next year 
overwhelmingly.
  In closing, I would like to thank Senator Kerry and Senator D'Amato 
for joining Senator Coats and myself as original cosponsors of this 
bill. I would urge the rest of our colleagues, if they have not yet 
already done so, to take a close look at some of the truly innovative 
charter school programs being run in your home States and around the 
country. And I would ask you to join us in supporting this legislation 
to build on all the great work that's being done at the State and local 
level and help us chart a new course in education reform in America.
                                 ______