Michigan Senate Proposes Penalties for Universities with Blighted Charter Schools

News Summary

The Michigan Senate has introduced a proposal to impose financial penalties on universities that oversee charter schools leaving behind blighted buildings. This initiative highlights the state’s accountability measures in the educational sector and the issue of school closures affecting urban neighborhoods. While supporters emphasize the economic impact of dilapidated structures, critics argue for alternative solutions. The proposed legislation indicates a shift in evaluating the relationship between charter schools and their authorizing institutions amidst rising concerns about property values and educational access.

Detroit, Michigan — The Michigan Senate has introduced a financial penalty proposal aimed at universities overseeing public charter schools that leave behind blighted buildings. This initiative is part of the state’s spending plan for higher education in the 2026 budget and seeks to hold universities accountable for the condition of facilities associated with charter schools they authorize.

Under current regulations, universities can collect up to 3% of state funds allocated to charter schools per student enrolled. However, if a charter school they authorized closes, leaving its building in a dilapidated state, these universities risk losing part or all of these funds. The plan highlights the increasing scrutiny surrounding charter school closings and their implications for communities.

Supporters of the measure, including state lawmakers, have expressed concern over the visual and economic impacts of blighted school buildings on neighborhoods, particularly in urban areas like Detroit. The city’s recent study of 63 vacant school properties revealed that 24 belonged to the Detroit school district, while 39 were under city ownership, indicating a significant issue with vacant and neglected educational facilities.

Dan Quisenberry, head of the Michigan Association of Public School Academies, argues that the focus should shift away from charter schools when discussing blighted structures. He suggests that instead of imposing penalties, the state should facilitate charter schools’ access to vacant buildings previously operated by school districts. Traditional school districts often encounter more difficulties managing blighted properties due to their larger portfolios.

Compounded with this issue is the experience of charter schools in securing appropriate facilities. For example, charter operators in Detroit have faced resistance from local school districts, as seen when Detroit Public Schools opposed a charter school’s bid to acquire a former educational building. The presence of deed restrictions has further complicated this matter, making it challenging for charter schools to repurpose these sites. Nevertheless, state legislation known as the Educational Instruction Access Act, prohibits these restrictions to allow charter schools access to unutilized district-owned buildings.

There are significant concerns that school districts hoarding old buildings may adversely affect neighborhood property values and limit educational options for students. Various reports indicate that Michigan’s charter schools have faced a high rate of closures. A national analysis reported that over 25% of charter schools shut down within their first five years, with nearly half closing within 15 years. Notably, Michigan’s charter schools have a closure rate of 36% within the first five years, disproportionately higher compared to traditional public schools.

These challenges have broader implications, as they contribute to so-called public school deserts where children must travel long distances to attend school. Research suggests that as many as 70% of charter schools in Michigan operate under for-profit organizations, the highest such ratio in the country. This also raises questions about the financial benefits that charter school authorizers may receive, which can exceed $10 million annually when multiple schools are taken into account.

The measure proposed by Sen. Sean McCann from Kalamazoo concerning Senate Bill 167 received a narrow approval in the Senate and is now under consideration in the House Committee on Appropriations. The bill represents a potential shift in how the state evaluates the relationship between charter schools and their authorizing institutions.

Despite the challenges, some Michigan charter schools are achieving notable success. Pembroke Academy and Chandler Woods Charter Academy were recognized in 2024 as National Blue Ribbon Schools for their exceptional performance. In contrast, public perception remains divided, with Quisenberry noting that academic output and enrollment in charter schools are on the rise, even as the state’s overall population shrinks.

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Additional Resources

• Michigan Capitol Confidential: Charter School Blight
• CBS News: Michigan Charter Schools Failing
• Detroit News: Jalen Rose on Charter School Equity
• Livingston Post: National Blue Ribbon Schools
• Detroit Free Press: Detroit Schools Debt
• Wikipedia: Charter School
• Google Search: Michigan Charter Schools
• Google Scholar: Michigan Charter Schools
• Encyclopedia Britannica: Charter School
• Google News: Michigan Charter Schools