Chicago Public Faculties have requested the varsity district inspector common to analyze whether or not greater than a dozen constitution colleges ought to have acquired thousands and thousands of {dollars} by federal loans from the plan. paycheck safety designed to assist small companies deal with the monetary fallout from the coronavirus pandemic.

“CPS has not authorised paycheck safety plan mortgage functions submitted by constitution faculty operators, and the district is in search of extra data on claims which have been made to the federal authorities,” CPS mentioned. in a press launch.

The district has requested its inspector common to analyze the legitimacy of constitution colleges’ requests for forgivable loans. PPP candidates needed to reveal that pandemic situations made continued operations unsure.

The inspector common mentioned his workplace was wanting into the matter.

The federal authorities launched on Monday names of companies and organizations authorised for loans to keep away from layoffs and overcome financial challenges brought on by the coronavirus pandemic. A couple of dozen constitution colleges and at the very least 100 impartial colleges, together with early childhood schooling facilities, in Chicago have utilized for and acquired loans, which flip into grants if layoffs are averted.

The district maintains that constitution colleges have been absolutely funded during the 2019-2020 faculty yr, which is the interval lined by the P3 software. As well as, the state is distributing $ 570 million in aid funds from the federal CARES coronavirus aid program to districts in Illinois. Chicago receives $ 206 million.

However advocates for constitution colleges say charters, which obtain public funds however are run by personal teams, are nonprofits and face distinctive challenges.

“All Illinois nonprofits have been eligible to use if they may meet the standards of the federal pointers… that is how we stack up in a different way from different public colleges,” mentioned Andrew Broy, president of the Faculty Community. Illinois constitution colleges.

He added that constitution colleges had not acquired extra funding by the CARES Act thus far to assist cowl new prices related to the pandemic.

Broy argues that when colleges switched to distance studying in March, many charters confronted unexpected prices “to cowl issues like buying Chromebooks, connectivity, offering lunches and contemplating due to this fact to take go away or layoffs to fulfill these prices ”.

He additionally mentioned that constitution colleges have important set up prices that conventional public colleges don’t face. “By renting out a constructing or paying off debt incurred to purchase a constructing, it diverts cash in any other case supposed for the classroom.”

Are constitution colleges duplicating?

The PPP loans for constitution colleges in Chicago and throughout the nation have sparked heated discussions about whether or not constitution colleges are utilizing their distinctive standing as personal organizations to leverage extra funds. Faculty districts are usually not eligible for PPP loans.

Constitution faculty officers argue that the funds given to them by CPS final yr to cowl this faculty yr have been based mostly on calculations that didn’t take into consideration new spending introduced on by the pandemic.

“I do not suppose it is a double dipping,” mentioned Carlos Perez, govt director of Erie Elementary Constitution Faculty, which is positioned in Humboldt Park on the northwest facet. Erie obtained between $ 350,000 and $ 1 million to maintain 66 jobs. The federal authorities didn’t launch actual mortgage quantities.

Along with funding Chicago’s public colleges, Erie attracts on philanthropic and company funds, which have declined dramatically in the course of the pandemic.

“We’re not constructing a reserve right here,” Perez mentioned. Regardless of securing 90 Chromebooks from CPS, Erie needed to fundraise and use present funds to make sure her 419 college students may take computer systems dwelling.

Perez mentioned he did not perceive why the CPS Inspector Normal would want to analyze. “We adopted the instructions of Congress, we adopted the instructions of the Small Enterprise Administration, our candidacy was drafted to the letter of the regulation.”

Faculty officers with Catalyst Faculties, a two-campus community and greater than 1,600 college students mentioned they acquired $ 767,965 in P3 loans. “We thought it was clever, prudent and accountable to take a low curiosity mortgage that we certified for, given the present financial uncertainty,” a faculty official mentioned in an e-mail.

Different constitution faculty networks have acquired between $ 2 million and $ 5 million, together with Signature Faculties, KIPP Chicago, and Perspective Constitution Faculties. The LEARN Constitution faculty community, which operates seven campuses in Chicago, acquired between $ 5 million and $ 10 million. LEARN faculty officers didn’t reply to WBEZ’s request for remark.

Not less than 100 personal colleges and a few Catholic colleges have additionally acquired PPP loans. This contains the Bernard Zell Anshe Emet Day Faculty, Chicago Waldorf Faculty, and Cristo Rey Jesuit Excessive Faculty. Earlier this yr, the Latin Faculty of Chicago, a prestigious personal faculty on the North Facet, got here beneath fireplace for attacking small enterprise lending, in accordance with Crain’s Chicago Enterprise. The varsity board determined to return the cash.

However officers from different personal colleges like Cristo Rey, a Catholic faculty within the Pilsen district, mentioned they actually wanted the mortgage. Cristo Rey acquired simply over $ 1 million to retain 80 staff. The varsity depends closely on company assist to offer monetary assist or scholarships to 90% of the scholars.

“It gave us a while to work on our monetary mannequin and check out our earnings streams for the approaching yr,” mentioned Morgan Collier, govt vice chairman of Cristo Rey.

Adriana Cardona-Maguigad covers schooling for WBEZ. Fobserve her on twitter @WBEZeducation and @AdrianaCardMag.