California's AB84 Advances, Proposing Up to 30% Funding Adjustments and Enhanced Oversight for Non-Classroom-Based Charter Schools

The California Assembly has advanced Assembly Bill 84 (AB84), a legislative measure aimed at significantly increasing oversight and accountability for the state's charter schools, particularly those offering non-classroom-based instruction. Authored by Assemblymember Al Muratsuchi, the bill has ignited a fierce debate, with proponents citing the need to curb fraud and critics, including prominent figures like Steve Hilton, decrying it as an "assault on parents' rights" and a threat to educational freedom. The bill's provisions, some slated to take effect by July 1, 2026, introduce new financial and operational requirements for charter schools across California.

Proponents of AB84 assert that the legislation is a necessary response to past instances of large-scale fraud within the charter school system, such as the A3 scandal in San Diego, which involved over $50 million in misused public funds. Assemblymember Muratsuchi stated the bill aims to "crack down on bad actors" and protect taxpayer dollars, emphasizing that it is not intended to harm well-run charter schools. Backers, including Assemblymember Robert Garcia, argue the bill aligns with recommendations from nonpartisan organizations like the Legislative Analyst’s Office (LAO) to ensure greater transparency and accountability.

However, the bill faces strong opposition from parent advocates and charter school organizations who argue it will severely restrict educational choices. Critics contend that AB84 could lead to a 30% cut in funding for non-classroom-based charter schools, which often serve homeschooling families. According to a Reddit post from r/homeschool, the bill would "Ban families from choosing curriculum, vendors, or enrichment options" and "Force schools to drop partnerships with community-based educators." Steve Hilton, in a recent tweet, explicitly called for people to "STOP THE HOMESCHOOLING BAN!" and vowed to "fight this."

A key provision of AB84 establishes an Office of the Education Inspector General, granting it broad authority to investigate charter school operations and finances. The bill also mandates that funds for direct services to pupils cannot be used to pay tuition at private schools and that materials and organizations providing services must be "nonsectarian." Furthermore, it stipulates that enrichment activities paid for by the local educational agency must be "provided by a credentialed employee." While the 30% funding adjustment is a major point of contention, bill analysis indicates it specifically applies to average daily attendance (ADA) funding for non-classroom-based instruction when less than 19% of instruction is classroom-based, with different reduction percentages for varying levels of in-person instruction.

The legislation also introduces stricter audit requirements and increases the cap on oversight fees for authorizers from 1% to 3%, which critics argue will divert funds from educational resources to bureaucracy. Opponents warn that these changes disproportionately affect low-income and diverse families who rely on the flexibility offered by non-classroom-based programs, potentially limiting access to specialized instruction and community partnerships. The ongoing legislative debate underscores a broader tension between state oversight and the autonomy of alternative educational models, highlighting deep divisions over the future of educational choice in California.