STB Achieves Win in NYS Court of Appeals on Constitutional Law Issue
06.25.09
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The New York State Court of Appeals ruled 7-0 today that the State Constitution precludes the Legislature from directing the Comptroller to conduct audits of charter schools. The firm successfully represented a group of charter schools and two charter school organizations in seeking reversal of an Appellate Division decision that had permitted the Comptroller to conduct such audits.
In 1998, the Legislature authorized the creation of charter schools to provide "opportunities for teachers, parents, and community members to establish and maintain schools that operate independently of existing schools and school districts." The Legislature was particularly concerned about expanding educational opportunities for the State's large number of at-risk students, many of whom reside in urban school districts with a long history of educational failure.
Charter schools in New York City are now among the highest performing schools in the state. Charter schools are independent public schools governed by their own boards of trustees and subject to extensive oversight by the Board of Regents and other state education officials and agencies. Despite this independence and existing oversight, the Legislature in 2005 directed the Comptroller to undertake fiscal and performance audits of charter schools. The charter schools challenged this action in the lower courts, concerned that the Comptroller's broad, intrusive and burdensome performance audits threatened their independence and could be used to further the political aims of charter school opponents.
The trial ruled in favor of the the charter schools, the Appellate Division reversed, and the firm was then retained to represent the charter schools on appeal to the Court of Appeals. In reversing the Appellate Division, the Court recognized that the State Constitution expressly limits the Comptroller's audit authority to "political subdivisions" and to "administrative duties" that are "incidental to" the audits of political subdivisions. The Court held that the Legislature exceeded its constitutional authority in directing broad performance audits of charter schools, which are not political subdivisions.
The STB team included Joe Wayland, who argued the case before the Court of Appeals in Albany on June 2, and associates Helena Almeida and Hiral Mehta, who took the lead in drafting our briefs. Summer associate Ben Berlin provided valuable assistance during our preparation for oral argument.