Fiscal Oversight Board demands explanations from Education over $13M charter school deficit
The board approved 20 transactions worth $43.7 million conditionally in August and set a Nov. 30 deadline for the Department of Education and OMB to identify funding sources and strengthen controls.
The short version
- El Vocero reported the Oversight Board sent a letter on Oct. 14 to Education Secretary Eliezer Ramos Parés and OMB Director Orlando Rivera Berríos requesting details on fiscal reviews for Alianza Public Schools
- Metro Puerto Rico reports the board highlighted that the $13,093,924 shortfall for fiscal 2027 was disclosed after OMB had already certified fund availability for the $43.7 million in contracts
- NotiCel states 21 charter schools operated in 2025-2026, 18 more than in 2020-2021, with five additional schools authorized for 2026-2027 and four now operating
- All three outlets note the board is concerned that the department continues to solicit new charter schools for 2027-2028 despite the identified shortfall
Oversight board seeks answers on approvals
The Junta de Supervisión Fiscal (JSF) has requested detailed information from the Departamento de Educación (DE) and the Oficina de Gerencia y Presupuesto (OGP) regarding fiscal controls applied to the Escuelas Públicas Alianza (EPA), also known as charter schools. El Vocero reported that in a letter dated Oct. 14 and addressed to Education Secretary Eliezer Ramos Parés and OGP Director Orlando Rivera Berríos, the board asked for explanations on the fiscal review conducted before approving contractual commitments. The board noted that between June and July 2026, Educación submitted two proposed constitutive letters and 18 amendments to existing agreements, totaling 20 transactions valued at $43,716,949.58.
According to the letter, Educación later reported an estimated general fund insufficiency of $13,093,924 for EPA expenses in fiscal year 2027 while coordinating with the OGP to address it. Metro Puerto Rico reported that the transactions had already passed through the OGP authorization process, which requires agencies to certify fund availability and no projected budget overrun. The JSF approved the 20 transactions conditionally on Aug. 14 and required both agencies to identify funds to cover costs for the 2026-2027 school year based on certified enrollment and submit the corresponding budget adjustment no later than Nov. 30.
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What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Por consiguiente, el impacto fiscal de cualquier expansión propuesta, incluida la disponibilidad y sostenibilidad de los fondos necesarios para respaldarla, debería evaluarse antes de que el DEPR inicie una solicitud o avance de cualquier otra manera el proceso de autorización de EPA adicionales.
Our translation: Therefore, the fiscal impact of any proposed expansion, including the availability and sustainability of the necessary funds to support it, should be evaluated before the DEPR initiates a request or otherwise advances the process of authorizing additional EPAs.
The source's own statement, as quoted by El Vocero. Not verified by PuertoRico.com.
Concerns over program expansion
The Oversight Board expressed concern that the Department of Education continues to pursue expansion of the EPA program despite the identified shortfall. NotiCel reported that 21 charter schools operated during the 2025-2026 school year, an increase of 18 from 2020-2021, and five additional schools were authorized for 2026-2027 with four having begun operations. The department maintains an open process to authorize new EPAs for the 2027-2028 school year.
The board stated that any new authorizations carry multi-year financial obligations whose fiscal impact must be analyzed beforehand. It also called for greater OGP participation in evaluating proposed expansions and strengthening fiscal analysis during contract reviews to ensure contracts are not approved without identified sufficient resources. The JSF requested a breakdown for each authorized or operating EPA since fiscal 2026, including enrollment, budgets, actual and projected expenses, funding sources, and any recorded or anticipated deficits, along with all related contracts and OGP approvals.
Where the sources differ
All three sources agree on the $13,093,924 deficit figure for fiscal 2027, the $43.7 million value of the 20 transactions submitted between June and July 2026, the conditional approval on Aug. 14, and the Nov. 30 deadline for submitting funding identification and budget adjustments. El Vocero and Metro Puerto Rico focus on the letter sent Oct. 14 by JSF Executive Director Robert F. Mujica and the fact that OGP had already certified funds. NotiCel adds details on prior Inspector General findings of internal control deficiencies over $35.7 million and provides more granular requirements for the information to be submitted, including multi-year contract impacts and data for schools not reviewed by the board because they fell below the threshold.
What the reports do not say
The reports do not state whether the Department of Education or the OGP has responded to the letter or identified specific funding sources to cover the shortfall. They also do not disclose the exact amount of any additional contracts approved by OGP and Education that were not submitted to the board because they fell below the review threshold, nor do they specify the total projected cost or funding plan for the new schools sought for the 2027-2028 school year. The sources do not indicate what consequences, if any, the board might impose if the November deadline is not met or if controls are not strengthened.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Junta fiscal exige a Educación explicaciones por déficit de $13 millones en Escuelas Públicas Alianza
- Reporting Junta fiscal exige a Educación explicaciones por déficit de $13 millones en Escuelas Públicas Alianza
- Reporting Junta levanta bandera por déficit millonario de Educación con las escuelas chárter
- Reporting La Junta quiere más visibilidad sobre las escuelas alianza del Departamento de Educación
How we checked this
El Vocero, Metro Puerto Rico and NotiCel all based their coverage on the same Oct. 14 letter from the Junta de Supervisión Fiscal. The growth statistics for charter schools and prior Inspector General findings appear only in NotiCel, while the precise wording of the board's concerns about OGP certification is most detailed in Metro Puerto Rico and El Vocero.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.