v.
Illinois State Charter School Commission
Digitally signed by Reporter of Decisions Reason: I attest to the Illinois Official Reports accuracy and integrity of this document Appellate Court Date: 2018.04.12 10:51:41 -05'00'
Board of Education of Waukegan Community Unit School District 60 v. Illinois State Charter School Comm’n, 2018 IL App (1st) 162084 Appellate Court THE BOARD OF EDUCATION OF WAUKEGAN COMMUNITY Caption UNIT SCHOOL DISTRICT 60, Plaintiff-Appellant, v. THE ILLINOIS STATE CHARTER SCHOOL COMMISSION, THE ILLINOIS STATE BOARD OF EDUCATION, and THE LAWNDALE EDUCATIONAL AND REGIONAL NETWORK CHARTER SCHOOL, Defendants-Appellees. District & No. First District, Fourth Division Docket No. 1-16-2084 Filed January 25, 2018 Decision Under Appeal from the Circuit Court of Cook County, No. 15-CH-8889; the Review Hon. Anna Helen Demacopoulos, Judge, presiding. Judgment Affirmed. Counsel on Patricia J. Whitten, Respicio F. Vazquez, and Nicki B. Bazer, of Appeal Franczek Radelet P.C., of Chicago, for appellant. Lisa Madigan, Attorney General, of Chicago (David L. Franklin, Solicitor General, and Valerie Quinn, Assistant Attorney General, of counsel), for appellees. Panel PRESIDING JUSTICE BURKE delivered the judgment of the court, with opinion. Justices Gordon and Ellis concurred in the judgment and opinion. OPINION ¶1 Defendant, the Lawndale Educational and Regional Network Charter School (LEARN), an operator of several charter schools in the Chicago area, submitted a proposal to plaintiff, the Board of Education of Waukegan Community Unit School District 60 (District 60), to open a charter school in Waukegan. After reviewing the submission, District 60 found several inadequacies with LEARN’s proposal and denied the application to open the school. LEARN appealed the denial to defendant, the Illinois State Charter School Commission (Commission), who concluded that LEARN’s proposal was in compliance with the requirements of the Charter Schools Law (105 ILCS 5/27A-1 et seq. (West 2014)) and in the best interests of the students the school was designed to serve. The Commission accordingly reversed the decision of District 60 and agreed to a charter with LEARN, which was certified by defendant, the Illinois State Board of Education (ISBE), thus establishing the charter school. District 60 subsequently filed a complaint in the circuit court for administrative review and alleged that the Commission committed multiple violations of the Open Meetings Act (5 ILCS 120/1 et seq. (West 2014)). The circuit court affirmed the Commission’s decision and dismissed the remaining counts of District 60’s complaint. Meanwhile, in the fall of 2015 and during the pendency of the circuit court proceedings, LEARN began operating its charter school in Waukegan with approximately 200 students from kindergarten to third grade. ¶2 Before this court, District 60 contends that (1) the Commission and ISBE lost jurisdiction over LEARN’s appeal and certification when they failed to adhere to the statutory timeline of the Charter Schools Law, (2) the Commission improperly reversed the district’s decision to deny LEARN’s proposal where the application was deficient in several manners and not in the best interests of the students the school was designed to serve, (3) the Commission violated the district’s due process rights, (4) the Commission committed multiple violations of the Open Meetings Act, and (5) the circuit court erred in dismissing the remaining counts of its complaint. For the reasons that follow, we affirm. ¶3 I. BACKGROUND ¶4 A. The Charter Schools Law ¶5 A charter school is a tuition-free public school supported by public funds but operated by a nonprofit entity independent from the school district in which it operates. 105 ILCS 5/27A-5(a), (e) (West 2014); Comprehensive Community Solutions, Inc. v. Rockford School District No. 205, 216 Ill. 2d 455, 458 (2005). In 1996, the Illinois legislature enacted the Charter Schools Law as a means to provide alternative public education models that were innovative and flexible but still maintained high levels of student performance with a particular focus on students who were less likely to succeed in a traditional educational environment because of “physical, emotional, socioeconomic, or cultural factors.” 105 ILCS 5/27A-2(a), 27A-2(b), 27A-3 (West 2014). To promote innovation and flexibility, the Charter Schools Law
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exempts charter schools from several state laws and regulations that are applicable to traditional schools. Id. § 27A-5(g). A charter school operates under a charter, or contract, between the nonprofit entity and the school’s authorizer, which may be the local school board or the Commission, depending on who ultimately approves the charter. Id. §§ 27A-6(a), 27A-9(f). ¶6 Charter schools are open for enrollment “to any pupil who resides within the geographic boundaries of the area served by the local school board.” Id. § 27A-4(d). If there are more applicants to the school than spaces available, enrollees must be selected by a lottery. Id. § 27A-4(h). Because charter schools are supported by public funds and enroll students who otherwise would attend traditional public schools, they take funding away from the local school district. Id. §§ 27A-9(f), 27A-11(b). Part of the charter school’s funding is based on a percentage of the local school district’s per capita tuition charge, at the time of LEARN’s proposal between 75% and 125%, multiplied by the amount of students enrolled in the charter school that reside in the local school district.[1] Id. § 27A-11(b). ¶7 An entity that wants to open a charter school must submit a proposal to the school board in the district where the charter school would be located. Id. § 27A-7(a). In order to demonstrate that the proposed charter school would be a suitable educational alternative, the proposal must contain several requirements, including identifying two potential locations for the school; describing the school’s educational program, goals, objectives and performance standards; and providing evidence that the terms of the proposed charter are “economically sound” for both the school and the district. Id. § 27A-7(a)(3), (5), (7), (9). ¶8 Following the submission of the proposal, the local school board must vote to either grant or deny the charter school’s application. Id. § 27A-8(e). If the board denies the application, the applicant may appeal the denial to the Commission, who subsequently conducts a de novo review of the proposal. Id. § 27A-8(g); 23 Ill. Adm. Code 650.110(d)(1) (2012). The Commission may reverse the denial if it “finds that the proposal (i) is in compliance with [the Charter Schools Law] and (ii) is in the best interests of the students the charter school is designed to serve.” 105 ILCS 5/27A-8(h) (West 2014). ¶9 If the Commission reverses the local school board’s denial, the Commission itself becomes the charter school’s authorizer, meaning it oversees the charter school rather the school board. Id. §§ 27A-3, 27A-9(f). Under these circumstances, the charter school also becomes its own local educational agency (id. § 27A-5(k)), which under federal law has a specific meaning. See 20 U.S.C. § 7801(26)(A) (2012). As its own local educational agency, the charter school becomes entirely responsible for implementing services required by law that ordinarily would be the responsibility of the local school district, such as implementing procedures to comply with the Individuals with Disabilities Education Act (20 U.S.C. § 1400 et seq. (2012)); see 105 ILCS 5/14-1.01 et seq. (West 2014). Regardless of who authorizes the charter school, ISBE must certify the application and charter before the school begins to operate. 105 ILCS
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5/27A-6(d), 27A-9(f) (West 2014).
¶ 10 B. Waukegan Community Unit School District 60 ¶ 11 During the 2013-14 school year, District 60 served approximately 16,300 students. Among its students, 77% were Hispanic, 16% were black, and 4% were white. Additionally, 72% of District 60’s students were low-income; 29% were English language learners (ELL), generally students whose native language is not English; and 12% had disabilities. In the Illinois Standards Achievement Test (ISAT), 39% of District 60’s students met or exceeded the state standards compared to the statewide average of 59%. District 60’s graduation rate was 76% compared to the statewide average of 86%, and 18% of its students were “college ready” compared to the statewide average of 46%.
¶ 12 C. LEARN’s Proposal ¶ 13 In 2014, LEARN, a 501(c)(3) nonprofit entity whose first charter school opened in 2001, operated eight charter schools in the Chicago area, including one in North Chicago, and served approximately 3600 elementary and middle school students. LEARN’s mission was to provide minority and low-income students “with the academic foundation and ambition to earn a college degree,” and to that end, it focused on elementary education where it believed “the ambition and academic foundation for college must be sown and cultivated.” Among LEARN’s students, 89% were black, 9% were Hispanic, and 89% were low-income. LEARN touted that 95% of its students graduated from high school and attended college. ¶ 14 During the spring of 2014, LEARN conducted a needs assessment of various communities in the Chicago area and identified District 60 as one that could benefit from a LEARN charter school. On November 14, 2014, based on this perceived need, LEARN submitted a proposal to District 60 to open a charter school in Waukegan that would open in September 2015. LEARN envisioned that the Waukegan campus would initially enroll 200 students in kindergarten through third grade and add one grade per year until the school had 600 students enrolled in 2021 and was a fully functioning kindergarten through eighth grade (K-8) school. ¶ 15 In its proposal, LEARN supplied various data that compared the academic performance of its students to District 60’s students. In particular, in 2013 ISAT testing, 54% of LEARN’s Chicago students met or exceeded the state standards. However, among students who had attended a LEARN school for five or more years, 66% met or exceeded the state standards whereas, among students who had attended a LEARN school for only one year, 39% met or exceeded the state standards. Additionally, in 2013 ISAT testing, LEARN’s students outperformed District 60’s students overall in reading and mathematics, as well as in those subjects for the Hispanic, low-income, limited English proficiency, and black subgroups. The data also showed that LEARN’s students overall fell below the statewide average in reading and mathematics, but exceeded the statewide average in those subjects for the Hispanic, low-income, limited English proficiency, and black subgroups. ¶ 16 The proposal stated that LEARN would utilize the Common Core standards and focus on four core subjects: English language arts, mathematics, science, and social studies. LEARN provided a detailed description of its proposed curriculum on these subjects and noted that its educational plan also placed a “special emphasis” on STEM (science, technology, engineering, and mathematics) learning. LEARN also would ensure that its students received weekly
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“enrichment” classes in visual and performance arts, technology, physical education, and Spanish. ¶ 17 LEARN’s proposal described how it would meet the needs of ELL students and students with disabilities. Concerning ELL students, the proposal indicated that LEARN would identify them through a survey, use different educational models depending on how many students had been identified, and monitor their progress with various assessments. Concerning students with disabilities, LEARN noted how students would be identified and believed that such students were “better served” with “an inclusion program rather than a pullout program.” LEARN accordingly would first attempt to provide accommodations in the general classroom. LEARN also stated that it employed occupational therapists, physical therapists, speech therapists, social workers, counselors, and psychologists. ¶ 18 The proposal discussed LEARN’s utilization of data-based instruction, its academic performance goals, its school culture and climate, and what the school calendar and daily schedule would look like. The proposal provided various school policies, including a student code of conduct, school safety protocols, and how teachers would be evaluated. Additionally, the proposal talked about LEARN’s student recruitment strategy, the school’s proposed operational structure, and many other details necessary to the functioning of a school. ¶ 19 LEARN identified two different locations for the school. The first site, an 18,000-square foot stand-alone facility, was located at 2634 Grand Avenue in Waukegan, and had previously been used as a medical office building. As constructed, the building could support a kindergarten through fifth grade school, but with an addition could support a K-8 school. The facility was available for lease or purchase but would require a zoning variance. Capital improvements were also necessary, and the building had one current tenant. The second site, a 91,000 square foot facility connected to a retail mall, was located at 2700 North Belvidere Road in Waukegan. The building was available only to lease but large enough to accommodate a K-8 school. The building required rezoning and capital improvements. LEARN provided an estimated five- to six-month timeline to make either location operational and noted its past experience in transforming other facilities into schools. ¶ 20 Additionally, LEARN’s proposal discussed the finances of LEARN itself and included an audited financial statement as well as provided a budget and budget narrative for the proposed school. According to LEARN’s most recent audit, as of June 30, 2012, it had approximately $16.6 million in assets and $8.7 million in liabilities. In each year from 2012 to 2014, LEARN had raised over $3 million. The budget for the proposed school assumed certain enrollment numbers and forecasted the school’s financial position for six years, projecting its income, expenses, and potential capital expenditures. Concerning income, LEARN sought a per capita tuition charge of $10,132 but also intended to obtain additional funding from loans, grants, and other contributions from foundations and individuals. Concerning expenses, LEARN stated that, based on its experience, it would need “a contingency expense” equal to 10% of its total expenses to withstand any unexpected costs. ¶ 21 Lastly, the proposal contained the proposed charter agreement between LEARN and District 60, insurance information, and several appendices of documents, including detailed program frameworks for different subjects, sample sequence reports, and a sample Common Core standards teaching training agenda.
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¶ 22 D. District 60’s Decision ¶ 23 On January 6, 2015, District 60 denied LEARN’s proposal, finding several inadequacies, including (1) the lack of community support, (2) “serious flaws and gaps” with the proposed educational program concerning, in particular, services to special education students and ELL students, (3) the lack of “significant achievement” of LEARN North Chicago, which was located in a community with comparable demographics to Waukegan, and (4) “lingering questions about climate and culture in LEARN schools.” ¶ 24 Additionally, District 60 determined that the proposed school would not be economically sound and identified multiple issues with the financial aspect of the proposal. These included that LEARN’s “year end fund balance was negative indicating a deficit” as of June 30, 2012, and its “current ratio,” a measure of liquidity determined by dividing assets by liabilities, was 1.91, thus below “the commonly accepted threshold of 2.0.” District 60 also observed that LEARN had not provided audited financial reports from the 2013 fiscal year, suggesting to the district that LEARN’s financial position had worsened. District 60 also pinpointed several issues with the school’s proposed budget, including that LEARN failed to provide evidence of specific funding sources, did not take into consideration transportation costs for its students, neglected to provide sufficient information on a food service program, and failed to adequately consider the financial impact of serving students with special needs. ¶ 25 Moreover, District 60 found that the proposed school would “cause grievous financial harm” to the district by shifting “scarce” resources away from it. District 60 determined that it would lose nearly $23 million over six years if the school operated as intended, which would “significantly impair[ ]” the district’s ability to meet its fixed overhead and operational costs. District 60 further asserted that it would have to make significant reductions in services, forgo current educational initiatives, and add to its $49.6 million of long-term debt.
¶ 26 E. LEARN’s Appeal to the Commission ¶ 27 On February 5, 2015, LEARN appealed District 60’s decision to the Commission. In its appeal, LEARN included a memorandum that reiterated the information contained in its proposal, responded to the alleged inadequacies raised by District 60, and included information not contained in its proposal to provide added support and update its proposal “based on progress” that had occurred after the original submission. District 60 did not object to LEARN’s request, and the Commission accepted the new information. The additional information included two new proposed locations for the charter school, further financial information, supplementary curriculum information, elaboration on its strategy for serving ELL students, and plans for becoming its own local educational agency. ¶ 28 The first new site was a 32,000-square foot two-story facility located at 800 South Genesee Street in Waukegan. The building was built in 2005; was in excellent condition; and already had more than 30 classrooms, a full gym, a cafeteria, offices, and other space necessary for a school. The building only needed a minimal investment in order to become operational as a school and also could accommodate the school’s anticipated growth. LEARN also noted that the building’s owner had expressed a desire to lease the facility to it. Given these details, LEARN deemed the site “the most viable option.” The second new site was a 37,000-square foot two-story facility located at 202 North Genesee Street in Waukegan. The facility was relatively new and had an open, unfinished design inside that could be refurbished to function as a school more quickly than the original two sites. It was also large enough to accommodate
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the anticipated growth of the school. LEARN stated that construction could be performed in phases and segregated from school activities. ¶ 29 LEARN also responded to District 60’s assertions concerning its financial health, the projected budget for the school, and the financial impact on the district. LEARN disputed District 60’s computation of its year-end fund balance, insisting it was not negative, but rather a positive $7.9 million for the 2012 fiscal year. LEARN provided an update on its current assets and liabilities, which resulted in a current ratio of 2.16 as of January 2015, as well as audited financial statements from 2013 and 2014. According to LEARN, it meant to, but did not, submit the 2013 audit as part of its proposal while the 2014 audit had not yet been completed at the time of the submission. Regarding the school’s projected budget, LEARN stated that it had recently authorized funding of up to $1 million in start-up costs for the campus and secured commitments for donations from five donors, which were listed, for approximately $8 million over five years. LEARN further updated its original budget to include a food service plan and disputed District 60’s concerns over the sufficiency of its funding plan for special education students. ¶ 30 Concerning the financial impact on District 60, LEARN asserted that, as of the 2013 fiscal year, the district had a fund balance of $37 million, which was higher than the 2011 or 2012 fiscal years. Additionally, LEARN highlighted that District 60 had approximately $36 million of cash on hand, or 75 days’ worth, an amount which had been increasing over the past years. LEARN further highlighted that, between 2011 and 2013, District 60 had operated at a surplus every year with its revenues growing every year. LEARN’s data also showed that District 60’s surplus had decreased each year since 2011 and was approximately $2 million as of 2013. Based on District 60’s alleged “robust” financial position, LEARN concluded that, even when considering its request for funding at a 100% per capita tuition charge, its Waukegan campus would represent 1% to 2% of District 60’s budget and the district would maintain its “strong financial” position and remain “financially solvent” with the school’s presence. ¶ 31 Additionally, LEARN acknowledged that, if it was successful on appeal, its school would not be part of District 60 but rather its own local educational agency. Consequently, LEARN stated that it had conversations with charter schools that were operating as local educational agencies, reviewed revenue data from charter schools authorized by the Commission, and obtained further guidance from its legal counsel. LEARN asserted that it was prepared to dedicate the resources necessary to be fully responsible for the instruction of special education and ELL students and the transportation of its students. LEARN provided corresponding plans on these matters and submitted a revised budget to include the added expenses, including line items on transportation, food service and special education services. ¶ 32 District 60 responded to LEARN’s memorandum, arguing that, even when considering the new information on appeal, the proposal still did not satisfy the criteria enumerated in the Charter Schools Law, specifically as it related to serving special education, ELL, and at-risk students; the fiscal capability of LEARN to operate the school; and the financial impact on the district. District 60 also highlighted that, while the proposed location at 800 South Genesee Street had been “described positively,” there was no evidence that an architect had reviewed the facility and determined whether a school could operate there. Furthermore, District 60 posited that LEARN did not sufficiently address whether the location could meet the transportation or food service needs of the school. District 60 also included a report prepared
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by Dr. Benjamin Ditkowsky, which was based on data from the Illinois Report Card.[2] Dr. Ditkowsky’s report acknowledged that the academic performance of LEARN’s students “appear[ed] impressive” but could be explained by variables unique to its schools. In particular, the report noted a high rate of attrition of LEARN’s students as they matriculated through school grades, suggesting that the students who left the schools were academically inferior to those who remained. Additionally, the report found that the level of chronic truancy, i.e., missing 10 days or more of school the prior year, at LEARN’s schools was more than twice the rate of District 60’s schools and more than three to four times the statewide average, suggesting that this level of truancy led to lower test participation and higher test scores, as those who took the test were academically superior to those who did not. ¶ 33 LEARN responded to the critiques of its academic success, asserting that the “mobility rate,” a statistic measuring the percentage of students who transfer in and out of a school, for its Chicago schools was lower than District 60’s schools for each of the past five years and lower than the statewide average for four of the last five years. LEARN acknowledged that its North Chicago school had a high mobility rate, but explained that the school, and the North Chicago Community Unit School District 187 as a whole, had a high percentage of military families who relocated often as part of their careers. Furthermore, LEARN acknowledged that the Illinois Report Card showed that over one-third of its Chicago students were chronically truant but noted that its “[a]ttendance data,” also from the Illinois Report Card, showed that its Chicago students attended school at a higher rate than students in District 60 and the statewide average. LEARN stated that the “discrepancy” between its chronic truancy and attendance data was “severe” and would be “investigate[d].” ¶ 34 On March 12, 2015, the Commission, as part of its due diligence process, held interviews with several representatives of LEARN and several representatives of District 60. ¶ 35 Four days later, Dr. Michael Anderson, an education consultant with the Lake County Regional Office of Education, issued a report on whether the facility located at 800 South Genesee Street could pass various safety and health codes. Dr. Anderson observed that the facility was “clean,” was well-maintained, and had “many facilities that one would find in a regular public school,” such as a large gymnasium, offices, a cafeteria, a kitchen, and several classrooms. Although Dr. Anderson determined that the building met the safety and health codes in several respects, he also found that “a few stairways” did not, some floor tiles “probably contain[ed] asbestos,” and certain windows would need to be modified to “allow for quick and easy escape.” Dr. Anderson also noted issues with the parking lot and the size of the classrooms. ¶ 36 On March 30, 2015, an employee of LEARN e-mailed the Commission, stating that it was no longer considering the facility at 2634 Grand Avenue due to necessary renovations being too costly. The employee stated that the other three locations were still viable options for the school but highlighted 800 South Genesee Street as the preferred site and noted an architectural review of the facility revealed that the location would be able to open in the fall of 2015 despite “some items” needing “attention.”
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¶ 37 The next day, the Commission held a public hearing. According to a summary of the hearing, 105 people signed in to support LEARN while 80 signed in to support District 60. Among the people who spoke at the hearing, 28 supported LEARN while 29 supported District 60. During the week following the hearing, the Commission received 40 e-mails in support of LEARN and 32 e-mails in support of District 60. ¶ 38 On April 9, 2015, IFF Real Estate Services, LLC (IFF) submitted a “desk review” in response to the Commission’s request to assess the feasibility of having a charter school located at 800 South Genesee Street and 2700 North Belvidere Road. In order to render the assessment, IFF reviewed various documentation, including an analysis performed by an architecture firm on each of the properties, LEARN’s memorandum on appeal, and a proposed term sheet for 800 South Genesee Street. Concerning 800 South Genesee Street, although IFF generally concluded that the building could be converted to accommodate a charter school, it required clarification on the square footage of the building, noting a discrepancy between LEARN’s memorandum on appeal and the proposed term sheet. IFF determined that, if the square footage of the term sheet was correct, LEARN would eventually outgrow the facility, but the facility would be a “good option” if LEARN reduced its proposed student population or increased the size of the facility. Concerning 2700 North Belvidere Road, IFF concluded that the facility could be converted to accommodate the charter school but that it would likely require more funding than the $750,000 LEARN had initially allocated. ¶ 39 On April 15, 2015, the Commission’s staff issued a report, recommending that the Commission grant LEARN’s appeal with a funding level of 91% of District 60’s per capita tuition charge. The report noted that the academic performance in LEARN’s schools was “very strong” and highlighted that, in 2013 ISAT testing for low-income students in mathematics and reading, LEARN’s schools outperformed all of District 60’s schools except for one “admissions-based magnet school.” Additionally, in 2014 ISAT testing, LEARN’s schools outperformed District 60’s schools “in all tested subjects overall, and for low-income/at-risk students.” With regard to ELL students, although LEARN had a small population of them at its schools, those attending LEARN North Chicago, a location demographically similar to Waukegan, significantly outperformed both District 60 and the statewide average in reading and mathematics scores in 2014 ISAT testing. The report also indicated that “independent analyses by outside experts confirm LEARN’s academic data and do not support [District 60’s] challenges,” specifically citing Dr. Ditkowsky’s analysis. ¶ 40 Concerning LEARN’s finances, the report concluded that it had “a 14-year track record of running a financially sound network of charter schools.” The report found that District 60’s expenses and revenues had risen during the past three years, and although its net income had been declining each year, its cash on hand had increased. The report noted that District 60’s enrollment had been “accelerating,” which would “significantly offset” the loss of students to the charter school. The report concluded that, contrary to District 60’s claim, the district was not “likely to suffer economic hardship” if the Commission granted LEARN’s appeal with funding at 91% of the district’s per capita tuition charge, the staff’s recommended award, or even 100%. ¶ 41 Concerning LEARN’s facility plan, the report highlighted that LEARN had built or remodeled four campuses in the past decade. The report found that LEARN had “experience negotiating contracts, obtaining zoning and permits and incentivizing contractors to timely” complete their projects. The report observed that LEARN had identified a total of four
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locations for the school, two in its proposal to District 60 and two on appeal to the Commission, but as of April 2015, LEARN had focused on 800 South Genesee Street and 2700 North Belvidere Road. However, the report noted that, given the material available on appeal, independent financial and construction evaluators could not determine whether LEARN would be able to open the Waukegan campus on time. The report further observed that LEARN did not have much experience with ELL or Hispanic students and had never operated a school as a local educational agency. However, the report concluded that, due to LEARN’s experience and “track record” of success at its other eight schools, it should have the opportunity to replicate its success in Waukegan. Although the staff recommended granting LEARN’s appeal, it suggested that, because of the “limited time for opening in September, 2015,” the grant should be contingent on LEARN satisfying a performance agreement that required it to “finalize its facility plan, pre-opening budget, and timeline” by May 15, 2015. ¶ 42 Leading up to the Commission’s scheduled public meeting, in which it would vote on LEARN’s appeal, set to begin in the afternoon of April 21, 2015, its staff met with representatives from LEARN and District 60. The staff informed the parties that its recommendation was to grant LEARN’s appeal subject to the performance agreement. ¶ 43 On the morning of April 21, 2015, the Commission e-mailed the parties with several attachments, including one where the Commission requested District 60 to provide “any evidence and/or verification” on its assertions that it would suffer grievous financial harm if the appeal was granted. That document also informed the parties that two of the commissioners would participate in the meeting by telephone. Another attachment, which was a recommended motion to grant LEARN’s appeal, stated that LEARN would be allowed to satisfy the conditions of the performance agreement by July 1, 2015, rather than May 15, 2015. ¶ 44 Shortly after receiving this e-mail, District 60’s general counsel, Thomas Morris, replied, objecting to the Commission’s request for additional evidence of financial harm because of the short notice. Morris asserted that additional evidence existed but was impossible to gather by the time of the meeting. Morris also complained that it was unfair LEARN would have additional time to satisfy the conditions of the performance agreement while District 60 had been required to meet its deadlines. Morris argued that extending the deadlines to only one party showed that the Commission was biased and acting “arbitrar[ily] and capricious[ly].”
¶ 45 F. The Commission’s Public Meeting ¶ 46 On April 21, 2015, at 3:05 p.m., Greg Richmond, the chairman of the Commission, took roll call. Seven of the commissioners were physically present while two others appeared telephonically, with their telephonic presence being approved unanimously by motion. After tending to a separate matter on the agenda, the Commission heard public comments on LEARN’s appeal. Thereafter, the Commission discussed reports from Richmond, its various committees, its legal counsel, and its interim executive director. Commissioner Bill Farmer then made a motion for the Commission to hold a closed session “for the expressed purpose of considering the following subject, consideration of evidence by the Commission or a committee of the Commission as a quasi-[adjudicative] body.” The motion passed unanimously, and the Commission adjourned into a closed session. ¶ 47 When the Commission returned to an open session, it began consideration of LEARN’s appeal. Hosanna Mahaley-Jones, the interim executive director of the Commission, gave a presentation summarizing the staff’s recommendation to grant LEARN’s appeal and its two
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key reasons: (1) “performance” and (2) “capacity.” First, she highlighted that, in ISAT testing, LEARN’s schools generally outperformed District 60’s schools overall and for low-income students, at-risk students, ELL students, students with disabilities, black students, and Hispanic students. Second, Mahaley-Jones observed that LEARN had a lengthy track record “of running financially sound schools,” and although LEARN would be operating as a local educational agency for the first time, it had “the capacity” to do so. She also addressed District 60’s concerns about the proposed school and deemed them unwarranted. ¶ 48 Following Mahaley-Jones’s presentation, LEARN gave a presentation and requested that it be funded at 100% of District 60’s per capita tuition charge, arguing that anything less would result in drastic consequences for the proposed school. District 60 also gave a presentation, in which its outside counsel responded to many of the statements made by Mahaley-Jones and LEARN in their presentations. District 60’s counsel further informed the Commission that it could not “sufficiently respond” to the request for additional evidence of financial harm due to its receipt of the request on such short notice. Counsel concluded that LEARN’s proposal was not in the best interests of the students the school was designed to serve for various reasons, including that LEARN lacked a viable facility to house the school and was not prepared to undertake the responsibilities required of a local educational agency. ¶ 49 The commissioners subsequently asked questions of LEARN and District 60’s representatives and held their own discussions of various issues, including the impact of funding the school at 91% versus 100% of the district’s per capita tuition charge and about LEARN’s preferred location of 800 South Genesee Street. Eventually, the commissioners voted 5-4 to grant LEARN’s appeal to establish the Waukegan charter school at a funding level of 100% of District 60’s per capita tuition charge provided that, by July 1, 2015, LEARN had to (1) execute a facility lease, (2) obtain approval from the Commission’s staff on a facility plan that would allow the Waukegan campus to open by September 15, 2015, and (3) obtain approval from the Commission’s staff on a revised budget plan with a 100% funding level. ¶ 50 On April 29, 2015, the Commission sent a report summarizing its vote to ISBE.
¶ 51 G. The Commission’s Written Decision ¶ 52 The next day, the Commission sent LEARN and District 60 its final written decision. In the decision, the Commission discussed several aspects of LEARN’s proposal. Concerning the facility plan, the Commission noted that LEARN initially proposed locating its Waukegan campus at either 2634 Grand Avenue or 2700 North Belvidere Road, but observed that LEARN later amended the proposal to include facilities located at 800 South Genesee Street and 202 North Genesee Street. The Commission found that LEARN identified “three viable facilities,” all but the 2634 Grand Avenue facility, and noted that the Charter Schools Law only required an applicant to identify two facilities. ¶ 53 Concerning LEARN’s finances, the Commission observed that LEARN’s assets were $14.8 million while its liabilities were $6.8 million and that LEARN projected a positive net income for the first five years of the Waukegan campus. The Commission noted that LEARN’s Waukegan budget contained a 3% contingency and found that LEARN had appropriate internal financial controls and reporting mechanisms. Furthermore, the Commission highlighted that LEARN had raised over $3 million each year since 2012 and had secured enough funding to support the school’s start-up costs. The Commission further highlighted that it had a precedent of funding Commission-authorized charter schools at 100% of the local
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school district’s per capita tuition charge and determined that amount to be the appropriate level of funding for the Waukegan school. The Commission asserted that a 100% funding level “did not materially harm” District 60 or impact its financial solvency, as LEARN’s impact on the district’s total budget would range from less than 1% in 2016 to slightly more than 2% in 2020. Based on the evidence before it, the Commission concluded that LEARN’s proposed Waukegan campus complied with the Charter Schools Law. ¶ 54 The Commission next analyzed if the proposal was in the best interests of the students the school was designed to serve, observing that its analysis focused on the sufficiency of LEARN’s educational plan, organizational plan, and business plan and its capacity to execute. The Commission highlighted the superior academic performance of LEARN’s students compared to District 60’s students, but acknowledged that LEARN’s experience with ELL students was “limited.” Nevertheless, the Commission noted that LEARN’s ELL students “greatly outperformed” the students in District 60 and statewide in reading and mathematics test scores. Moreover, the Commission asserted that LEARN’s organizational plan, business plan, and capacity to execute “met or exceeded the standards required.” All told, the Commission determined that the proposal was in the best interests of the students the school was designed to serve. Accordingly, the Commission granted LEARN’s appeal and reversed District 60’s denial subject to LEARN satisfying the conditions of the performance agreement.
¶ 55 H. Post-Decision Proceedings ¶ 56 Approximately two months later, LEARN submitted the documentation required by the performance agreement, including a lease for a building located at 540 South McAlister Avenue in Waukegan, a facility plan with a renovation schedule, and a revised budget. On July 1, 2015, the Commission’s staff issued a compliance report, finding that LEARN had complied with all of the requirements of the performance agreement. Consequently, on that same day, LEARN and the Commission executed a charter agreement for a term of five years. The Commission subsequently informed ISBE of the agreement. Over the next two months, LEARN worked with ISBE to clarify and correct some issues with the charter agreement. Ultimately, on August 27, 2015, ISBE certified the charter.
¶ 57 I. Circuit Court Proceedings ¶ 58 On June 4, 2015, District 60 filed a complaint in the circuit court against the Commission, ISBE, and LEARN, alleging four counts. Count I sought administrative review against all three defendants and alleged that the Commission’s decision to grant LEARN’s appeal was clearly erroneous because LEARN failed to (1) provide two viable facilities for the charter school, (2) propose an adequate educational plan for the school, in particular for ELL students and students with disabilities, (3) submit a complete description of the governance and operations of the school, (4) demonstrate how it would meet the needs of Waukegan’s high population of at-risk students, and (5) provide sufficient evidence to show that the terms of the charter were economically sound for both the school and District 60. In addition, District 60 claimed that the Commission’s decision was “late and unlawful” because it e-mailed ISBE the vote summary “after 5:00 p.m. on April 30th,” or “after the close of business on the seventh day after the Commission’s meeting approving the charter school.” Further, District 60 alleged that the Commission set conditions under which it would approve LEARN’s appeal “without
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the legal authority to do so” and had “exceed[ed] its jurisdiction” when it gave LEARN until July 1, 2015, to satisfy the performance agreement. ¶ 59 Count II alleged that the Commission violated the Open Meetings Act (5 ILCS 120/1 et seq. (West 2014)) when it allowed two commissioners to participate telephonically without prior notice and a lawful justification. Count III alleged that the Commission violated the Open Meetings Act (id.) by holding a closed session without identifying a proper exception. Lastly, count IV sought a declaratory judgment against all three defendants, seeking a declaration that the Commission’s decision was clearly erroneous. ¶ 60 Approximately a week later, District 60 filed an unsuccessful emergency motion to stay the final decision of the Commission pending resolution of its lawsuit. Eventually, on June 23, 2016, following several motions being filed and various briefings, the circuit court affirmed the Commission’s decision to grant LEARN’s appeal and dismissed counts II, III, and IV of District 60’s complaint, finding that administrative review was the sole means for District 60 to obtain relief and the counts were “duplicative of the relief sought by way of administrative review.” District 60 timely appealed.[3], 4
¶ 61 II. ANALYSIS ¶ 62 A. Compliance With Supreme Court Rules ¶ 63 Initially, we must address ISBE and the Commission’s contention that District 60’s opening brief violated our supreme court rules in multiple respects. While we agree that District 60 violated multiple rules by not providing a citation to authority for its purported standard of review (Ill. S. Ct. R. 341(h)(3) (eff. Nov. [1], 2017)), copiously arguing and failing to provide appropriate references in several places to the record on appeal in its statement of facts (Ill. S. Ct. R. 341(h)(6) (eff. Nov. [1], 2017)), and neglecting to include a complete appendix with the required documents (Ill. S. Ct. R. 342 (eff. July 1, 2017)), we disagree with ISBE and the Commission that we should sanction these violations by dismissing District 60’s appeal or striking its brief. Such punishments are permissible for violating the supreme court rules, but they are particularly harsh. North Community Bank v. 17011 South Park Ave., LLC, 2015 IL App (1st) 133672, ¶ 14. Although we do not find such a punitive sanction warranted in this case, we will disregard any arguments raised by District 60 in its statement of facts and consider only those properly raised in the argument section of its brief. Thus, despite District 60’s noncompliance with the rules, we nevertheless consider the merits of its appeal.