February 2026 Quarterly Training Resources
Information and resources from the bonus February 2026 Quarterly Training, presented by the Charter Authorizer Support Initiative (CASI).Beyond the Moratorium: Essential Nonclassroom-Based Charter School Oversight
CASI presented a special bonus Quarterly Training on February 6, 2026. The training covered practical strategies for: conducting rigorous petition reviews; identifying red flags in vendor relationships, attendance reporting, and related-party transactions; implementing effective monitoring protocols; applying financial oversight best practices; and incorporating lessons learned from both oversight failures and successful interventions.
Disclaimer
The information contained on this page is provided as a reference only. Charter schools and chartering authorities are encouraged to review the laws and regulations and consult with their own legal counsel regarding the application to their specific situations.
Live Video Recording
CASI Bonus Quarterly Training, February 2026
(Video; 1:32:31) (Note: Portions of the video have been edited for length and content.)
Section Menu
Definitions and Terms
- California Education Code (EC) Section 47612.5
defines nonclassroom-based (NCB) as instruction that includes, but is not limited to, independent study, home study, work study, and distance and computer-based education. For the purposes of funding, a charter school is considered NCB if less than 80 percent of its average daily attendance (ADA) is classroom-based.
- Nonclassroom-Based: More than 20 percent of instruction is offered in an alternative setting.
- Independent Study: Students work independently, according to a written agreement and under the general supervision of a credentialed teacher(s).
- Online/Virtual Program: There is no definition in Education Code, but this term does appear in Title 5, California Code of Regulations, Section 11963.5: “A virtual or on-line charter school is one in which at least 80 percent of teaching and pupil interaction occurs via the Internet.”
- Distance Learning: A term that was used in COVID legislation, meaning instruction in which the pupil and instructor are in different locations.
- Home Study: Publicly funded instruction, through a charter school, where parents/guardians may educate their children at home, with state oversight requirements.
- Home School: Parents/Guardians who opt to privately educate or "home school" their children.
- Hybrid: This term appears in EC Section 51744, but it is not formally defined. In practice, "hybrid" typically refers to programs that combine in-person classroom instruction with independent study.
- Flex-Based: A term most recently used in the introduction of Senate Bill 414 in 2025 as a replacement for nonclassroom-based. It is not a term used in Education Code.
Funding Determinations Resoures
- California Department of Education (CDE) Nonclassroom-Based Determination of Funding
- CDE Independent Study Ratio Calculation
- Legislative Analyst’s Office report: Review of the Funding Determination Process for Nonclassroom-Based Charter Schools
- California 2025–26 Audit Guide
Frequently Asked Questions and Answers
How can a nonclassroom-based (NCB) charter receive average daily attendance (ADA) for a student that enrolls in the summer and returns to their traditional high school in the fall and spring where they also receive ADA?
Some NCB charter schools operate on multiple tracks so they are able to operate year round from July 1 through June 30 with at least 175 days on each track. A student might enroll at a charter school on July 15 and attend through August 31 and then disenroll from the charter school and enroll in their local district school and attend for the remainder of the school year. Under the current ADA accounting system, there is no mechanism to cap the total number of days a student can generate ADA across multiple local educational agencies (LEA). As a result, if a student attends two different LEAs between July 1 and June 30 and accumulates a combined 190 days of ADA, both LEAs would receive full ADA funding for the days the student was enrolled at each respective school.
How do nonclassroom-based (NCB) charters achieve over 100 percent average daily attendance (ADA)?
NCB charter schools can operate multiple tracks simultaneously, each with a full school year with at least 175 instructional days, even though those tracks overlap on the calendar. Because the school operates year-round, it can continuously enroll new students at any point during the year, and each enrollment generates ADA for as long as that student attends. When ADA is aggregated across multiple overlapping tracks and a rolling enrollment window, the total can significantly exceed what would be expected based on the school's California Basic Educational Data System (CBEDS) enrollment snapshot. CBEDS only captures enrollment at a single point in time and does not reflect the full volume of students who will cycle through the school over the course of the year.
Should authorizers monitor the 40/80 percentages for nonclassroom-based funding determinations?
Auditors request a functional expense file of the charter school’s trial balance during the audit each year. If the charter school’s functional expense breakdown does not meet the 40/80 spending requirements, then the California Department of Education's Funding Determination review team may question this when reviewing the charter school’s funding determination submission. Authorizers may monitor a charter school’s audit reports as part of their annual oversight.
What might an authorizer site visit look like for an all-virtual charter school?
There is no definitive answer in California Education Code about what a site visit should include. As part of an authorizer’s site visit process, authorizers may observe synchronous instruction, request to meet with educational partners (teachers, parents, and students), review student work, etc.
Are all nonclassroom-based charters schools required to have an independent study master agreement for each student?
Yes, any program where students spend more than 20 percent of their instructional time offsite is classified as Independent Study, which requires an Independent Study policy and a compliant Master Agreement for each enrolled student.
If a student turns in all work listed in their independent study contract, but it is not considered meeting expectations set by the teacher of record, can the school still collect average daily attendance (ADA) for that student’s work?
Yes, the charter school can still claim ADA for that student’s completed work. If the student’s work is not meeting expectations, it would be up to the teacher of record to determine grades and if students are meeting standards.
Does synchronous instruction need to be delivered by a credentialed teacher? Would a recorded video of the teacher count as synchronous instruction?
Pursuant to California Education Code (EC) Section 51747.5, synchronous instruction shall be provided by a teacher or teachers of record for that student. Under EC Section 51745.5(d), "synchronous instruction" is defined as classroom-style instruction or designated small group or one-on-one instruction delivered in person, or in the form of internet or telephonic communications, and involving live two-way communication between the teacher and student. Because the definition requires live two-way communication, pre-recorded video cannot be counted as synchronous instruction.
If a charter is using a vendor that provides credentialed teachers, is that considered “employed” by the charter school?
Vendors, even if they are credentialed, are not employees of the local educational agency. A vendor should not be the supervising teacher for the purposes of the Master Agreement.
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