A new proposal aims to ratchet up oversight of Indiana’s most troubled virtual charter schools

Indiana lawmakers quietly took an initial step Wednesday that could eventually lead to the closures of the state’s most troubled virtual charter schools, Indiana Virtual School and Indiana Virtual Pathways Academy.

A provision to stop school districts from overseeing statewide virtual charter schools was tucked into a widely supported proposal to require students and their families to take an annual orientation before they can enroll in an online school. The bill passed the House Education Committee by an 8-0 vote and will be sent to the full House for consideration.

The move would prevent Daleville Community Schools, the oversight agency for Indiana Virtual School and Indiana Virtual Pathways Academy, from renewing those charters. Indiana Virtual School’s charter agreement runs through the 2020 school year. Daleville has not publicly posted the charter for Indiana Virtual Pathways Academy, which opened in 2017, so it is unclear when it expires.

If the two virtual charter schools were to remain open after their charters expire, the bill would require them to seek what education leaders hope would be a stronger oversight agency — a statewide charter authority such as the Indiana Charter School Board or Ball State University.

Bill author Rep. Bob Behning, R-Indianapolis, said he was “trying to do more than engagement, and improve the performance of our virtual charter schools.” He has previously told Chalkbeat that he does not think school districts should oversee large, statewide virtual charter schools.

Read more: Why Indiana education officials want to stop this school district from overseeing online schools

Daleville schools superintendent Paul Garrison attended the committee hearing and testified in favor of the orientation requirement — his suggestion to make the onboarding process an annual requirement was added to the proposal — but he did not address the authorizing provision. Chalkbeat was unable to reach Garrison or Indiana Virtual School Superintendent Percy Clark for further comment.

Indiana Virtual School and Indiana Virtual Pathways Academy have in recent years had some of the lowest graduation rates in the state. In 2018, Indiana Virtual Pathways Academy graduated just 2 percent of its 1,009 seniors, and it also failed to test enough of its students to receive an A-F letter grade from the state, Chalkbeat found.

A 2017 Chalkbeat investigation showed that as Indiana Virtual School ballooned in size and posted dismal academic results, it had business ties that stood to financially benefit its founder.

Despite receiving $1 million in fees last year to oversee Indiana Virtual School and Indiana Virtual Pathways Academy, education officials have raised concerns that Daleville is not holding the schools accountable.

“They’ve done a terrible job, and it would be my strong preference that they not be protected any further for their atrocious performance,” Indiana State Board of Education member Gordon Hendry has said.

Chalkbeat’s investigations and the continual low performance of virtual charter schools prompted the state board to recommend stricter regulations, including strengthening the oversight of online schools and improving engagement efforts with students.

Read more: Indiana education officials call for a crackdown on ‘too big to fail’ virtual schools

The authorizing provision also seeks to stop other school districts from following in Daleville’s footsteps, closing what some see as a loophole in Indiana law. School districts are only allowed to authorize charter schools within their boundaries, but they are not expressly prohibited from overseeing virtual charter schools.

Last summer, a Chalkbeat investigation examined an agricultural school that sought to open as a full-time virtual charter school overseen by the Nineveh-Hensley-Jackson school district. But state officials warned the district that they believed it did not have the authority to oversee a statewide virtual charter school, and Indiana Agriculture and Technology School backed off its plans, opening instead as a blended school offering half of its instruction online and half in-person.