Epic Charter Schools budget shrinks with enrollment, superintendent contract extended

As its sky-high enrollment comes back to earth, Epic Charter Schools budgeted tens of millions less in revenue and spending for the next school year.

The public virtual charter school system experienced a stunning increase in enrollment in 2020 as droves of families sought online learning during the COVID-19 pandemic.

Epic leaders long said they anticipated the spike was temporary, and as expected, about 23,000 students have since left for other schools. The virtual charter school system still educated more Oklahoma students than any traditional school district this academic year, despite the loss.

Oklahoma public school funding is tied to enrollment, so any school that loses students also loses dollars.

Epic's latest budget anticipates revenues to fall by $75 million, or 22%, in the 2023 fiscal year, which begins July 1. The school system budgeted almost $26 million less in spending than last year, representing a 17% drop.

Epic's school board on Wednesday approved a revenue budget of $266 million and almost $241 million in expenses across the school system's two branches, Epic One-on-One and Epic Blended Charter.

The school system is in the process of consolidating those two branches in hopes of achieving more efficiency. Right now, they're separate school districts that together make up Epic Charter Schools.

Budgets for both sides would combine if One-on-One and Blended merge, said Jeanise Wynn, Epic's deputy superintendent of finance.

"This is kind of a muddy crystal ball for me right now, especially with consolidation on the horizon," Wynn said at Monday's school board meeting. "That's probably the biggest question mark on budget that I've been asked is what if we approve Epic One and Epic Blended (budgets) tonight and then we consolidate. Are we in a black hole of budget? I'm of the understanding the answer is no."

The board would vote again on a new yearly financial plan for a consolidated Epic, creating what Wynn called "the beautiful marriage of two budgets into one, big budget."

Wynn said the budgets approved Monday night contain a conservative outlook on revenue and a larger-than-expected $48.7 million carryover balance. The school system has enough funds to keep all its current staff, she said.

Plus, it enters its second fiscal year with its former management company, Epic Youth Services, off the books. The private company, owned by Epic's co-founders, used to earn 10% of the school system's revenue every year as a management fee.

Epic severed ties with its co-founders and their company in May 2021, a move that freed up millions in funds.

Despite parting ways with former leadership, Epic's school board stuck with Superintendent Bart Banfield. It will do so for another year.

The board agreed on Monday to a one-year extension to Banfield's contract.

A large group of Epic teachers attended the board meeting to support the superintendent. Some held signs while others spoke in public comment.

Erin McAdoo, an Epic teacher of six years, said Banfield has been a steadying presence in times of transition and controversy. The school system has long been at the center of criminal investigations, audits and embezzlement allegations, all stemming from the management of Epic's co-founders and their company.

"We are ready for some smooth waters and consistency, and with superintendent Banfield at the helm I feel hopeful," McAdoo said.

Reporter Nuria Martinez-Keel covers K-12 and higher education throughout the state of Oklahoma. Have a story idea for Nuria? She can be reached at nmartinez-keel@oklahoman.com or on Twitter at @NuriaMKeel. Support Nuria’s work and that of other Oklahoman journalists by purchasing a digital subscription today at subscribe.oklahoman.com.

This article originally appeared on Oklahoman: Epic Charter Schools budget shrinks, superintendent extended