Audit Finds Five Pennsylvania Cyber Schools Increased Reserves By 144% Between 2020 & 2023 Due To Outdated State Funding Formula

A three-year audit showed that five of Pennsylvania’s cyber charter schools increased their financial reserves by 144% between July 2020 and June 2023 because the state uses an outdated funding formula that does not use actual instruction costs to determine cyber-school tuition rates. For the five cyber schools audited by the state, their aggregate reserve funds increased from $254 million as of July 1, 2020, to $619 million as of June 30, 2023. During the same period, aggregate revenue for these cyber charter schools increased by 90%, from $473 million in the 2019-2020 fiscal year to . . .