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NCGA may tap school privatization advocates to hand out taxpayer funds to charter schools

State lawmakers could soon decide to anoint pro-school privatization nonprofit Parents for Educational Freedom in North Carolina (PEFNC) to distribute taxpayer dollars to new charter schools in the state, according to the Associated Press.

From the AP:

The budget proposal being considered by the General Assembly may break new ground in state spending by letting Parents for Educational Freedom in North Carolina decide which fledgling charter schools get a piece of $1 million a year, N.C. Center for Nonprofits vice president David Heinen said.

“This is probably unique to have a completely independent 501(c)(3) nonprofit having discretion without a lot of criteria,” said Heinen, citing the chapter of federal tax law describing charity and educational groups. “I don’t know of any other that is quite like this.”

If the Senate endorses what is currently a House proposal, PEFNC would be tasked with doling out up to $1 million annually in start-up funds for new charter schools (up to $100,000 each) to set up shop in geographic areas where charter schools are few in number.

When the House rolled out this idea earlier this year, lawmakers on both sides of the aisle expressed concern over the idea that a private group beholden to virtually no public oversight could be tasked with handing out taxpayer dollars.

Legislative efforts have attempted to direct similar responsibilities to PEFNC in years past.

In 2013, lawmakers proposed giving the nonprofit $1 million over two years to develop charter schools in rural parts of the state, but that measure did not pass. A similar bill was filed last year too, but also did not survive.

None of the taxpayer funds can go toward administrative or management fees, according to the current proposal. Darrell Allison, executive director of PEFNC, already receives a large compensation package that has has increased considerably over a short time.

In 2010, Allison received $107,889 for his work running the non-profit; in 2012, Allison reported an income of $156,582—a 45 percent pay increase in just two years. In 2013, his salary bumped up again to $167,085, according to tax records.

PEFNC has received millions of dollars from the Walton Family Foundation (owners of Wal-Mart) over the past several years. The Waltons are known for supporting education initiatives such as vouchers, charter schools and other privatization measures.

For more background on PEFNC, click here.

The Senate begins the process of rolling out their budget later today in committee meetings. I’ll be tweeting from Senate Ed at 4pm — follow me on Twitter @LindsayWagnerNC.

One Comment


  1. […] in the House proposal, no funds appear to be slated for Parents for Educational Freedom NC (PEFNC), a private nonprofit that hopes to receive $2 million over two years to run a program aimed at […]

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