There are two types of community schools in Ohio: a conversion and a start-up. Most community schools in Ohio are start-ups, with approximately 80% start-ups and 20% conversions.

Conversions are created by converting all or part of a traditional public school or a building operated by an educational service center (“ESC”) to a community school.

Anyone may propose a conversion by submitting a proposal to the board of the district school or to the board of the ESC. If the board wishes to consider the idea, the board enters into a preliminary agreement with the proposing person or group. A board of directors/governing authority of the proposed school is formed and the two boards negotiate a conversion school sponsor contract.

A start-up is created by a person or group submitting an application to a sponsor (called “authorizers” in other states and used interchangeably throughout this website). Start-ups formerly could can only be established in certain areas of the state, but now are permitted statewide.

SPONSORS INCLUDE:

• The Ohio Department of Education – Office of School Sponsorship
• The board of education of the local school district where the school will be located;
• Joint vocational school districts
• The board of education of any other city, local or exempted village school district with territory in the county where the majority of that local school district is located
• The board of an educational service center if approved by the Department of Education
• The board of trustees of the thirteen state universities as long as the mission of the proposed school is demonstration of teaching practices included in the university’s teacher preparation program
• A tax-exempt entity that has operated for at least five years, has assets of at least $500,000 and a record of financial responsibility; and has been determined by the State Board of Education and the Ohio Department of Education to be an education-oriented entity with a demonstrated record of successful implementation of education programs

In response to a proposal (often called an application), a sponsor can enter into a preliminary agreement with the proposing group. The preliminary agreement is filed with the superintendent of public instruction. Plans for the school continue to be developed, including establishing a governing authority (also referred to as “Board of Directors” or “Board,” used interchangeably throughout this website) and negotiating the sponsor contract. The sponsor contract must be adopted by the school’s governing board by March 15th, and the final sponsor contract must be signed by May 15^th prior to the start of the school year.

ROLES AND RESPONSIBILITIES OF CHARTER SCHOOL BOARDS

The Board of Directors of an Ohio Community School oversees the operations of the School to ensure compliance with applicable laws and Sponsor Contract requirements and in accordance with the mission and purpose of the School. Often the Board of Directors will contract with a management company: an Educational Management Organization “EMO” or a Charter Management Organization “CMO” to run the day-to-day operations of the school. CMOs are non-profit organizations that manage two or more charter schools; whereas, EMOs tend to be for-profit entities. The term “management company” is often used in general and Ohio law refers to both as “operators.” Regardless of whether a Charter School Board contracts with either an EMO or a CMO or decides to manage the school itself (often referred to as “Mom and Pops”), the responsibility for the school’s success ultimately lies with the Board. 

Board member obligations derive from four main sources: 1) general corporate and non-profit board duties; 2) federal, state and local laws; 3) duties required under the charter/sponsor contract; and 4) duties pursuant to board policies.

Members of the Board of Directors of an Ohio community school, have the same general responsibilities as the directors of any Ohio non-profit corporation. Directors must perform all duties:

• Duty of Care
• Duty of Loyalty
• Duty of Compliance
• Duty to Maintain Accounts

The Duty of Care requires board members to act in good faith, in a manner they reasonably believe is in the best interest of the school, and with the same care that they would exercise in handling their own affairs. Community school board members should actively participate in governing the school and staying informed. The duty of care can be met by attending board meetings, reviewing meeting materials, asking questions, refraining from “rubber stamping,” and overseeing and evaluating administration/management. 

The Duty of Loyalty requires that the interests of the school take precedence over personal (family and business) interests. Conflicts of Interest are extremely important for board members to avoid. 

Over the years, increasing restrictions have been imposed on who can serve on a community school board. Currently the following individuals are prohibited from serving on a board:

• An individual who owes the state money or is in a dispute over owing the state money concerning the operation of a community school that has closed;
• An individual who has pled guilty to or been convicted of “theft in office”;
• An individual who has a disqualifying offense as listed in ORC 3319.39, which governs the criminal background checks for individuals with care, custody, and control of children; 
• An individual employed by the school district of ESC that is sponsoring the school;
• An individual who is currently serving on any school district board of education

Additional limitations apply to community school board members. For example, individuals are limited to serving on five start-up community schools at one  unless the person receives no compensation from any governing authority on which the person serves and for any school that has an operator, the operator is a nonprofit organization.

In addition to the general non-profit responsibilities, because community schools are public entities, community school board members are public officials and have the same ethical obligations as other Ohio public officials. 

The Duty of Compliance broadly requires that board members remain faithful to the vision and mission of the school and comply with all laws, contracts, and policies. 

The Duty to Manage Finances for community school board members is extremely important as the funds of the school are public funds and misuse of the money is often the story in the news regarding charter school officials. Community School Board Members can be held strictly liable to the state for the loss of public funds. Cordray v. Internatl. Preparatory School, 128 Ohio St.3d 50, 2010-Ohio-6136. (Strict liability means liability that does not depend on actual negligence or intent to harm; once the tort itself is proven, the liability attaches.) 

Ohio community schools are required to appoint a designated fiscal officer (ORC 3314.011). The fiscal officer must be licensed in accordance with ORC 3301.074, the same licensure requirements of a traditional public district school. The fiscal officer must also have a bond conditioned for the faithful performance of all his/her official duties delivered to the board. 

PUBLIC ACCOUNTABILITY AND TRANSPARENCY: PUBLIC FUNDS, PUBLIC RECORDS AND OPEN MEETINGS

Ohio’s Sunshine Laws require openness and visibility in the actions of public bodies allowing the “sun to shine” on the happenings of public matters.

Sunshine laws apply to community school boards, as they are public entities.

Open Meetings Act – Ohio Revised Code 121.22

The Open Meetings Act requires public bodies to hold deliberations and conduct business in open meetings where a quorum is present.

• Public notice of meeting place and times must be provided
• Accurate minutes of meetings must be kept
• Presence of board members is required.
  • A board member must be present in person in order to vote or be considered for quorum.
• Upon proper procedure, Boards can adjourn into executive session to discuss matters privately only under specific circumstances:
  • personnel issues
  • purchase of property
  • consult with legal counsel regarding litigation
  • collective bargaining
  • security/emergency arrangements
  • other select matters that by law require confidentiality
• Penalties for Violation: fines, injunction, attorney fees, action invalidated, etc.

PUBLIC RECORDS ACT  – OHIO REVISED CODE 149.43

In Ohio, a public record is defined broadly as a record kept by a public office.

The Act gives people and entities the right to inspect and receive copies of public records at reasonable times during regular business hours. The Act also disallows release of certain protected records.