This report on what we might term, the charter school industrial complex in the San Antonio Express-News should irk any taxpayer with a heart beat.
For those wanting to address this more fully, here is a helpful piece from the Texas House Research Organization in 2021 titled, "Charter school not entitled to tax exemption under recent ruling by Texas Supreme Court." The HRO presents a legal case, Odyssey 2020 Academy v. Galveston Central Appraisal District, where this particular charter school was not permitted a tax exemption its operators had requested. This case has broader implications germane to this Express-News report. Read on.
-Angela Valenzuela
Good morning, readers.
We're starting the week off with a pair of investigations into Texas' property tax rules and who is reaping benefits at taxpayers' expense.
First, consider a 2020 land purchase by Universal Academy. A nonprofit formed to support the Texas charter school bought a luxury horse ranch and equestrian center. Sales prices aren't public in Texas, but the property had been listed for $12 million when former ExxonMobil Chairman Rex Tillerson bought it in 2009. Because of the foundation's nonprofit status and its plans to offer equine therapy, the parcel was removed from the tax rolls.
An analysis by Hearst Newspapers found cases in which charter schools collected valuable real estate at great cost to taxpayers but with a tenuous connection to student learning. In others, administrators own the school facilities and have collected millions from charging rent to the same schools they run.
Meanwhile, Texas' Chapter 313 program expired Dec. 31, but a rush of applications as the law expired has put taxpayers on the hook for a projected $31 billion in tax breaks for nearly three decades to come.
-Cameron Songer, newsletter editor
Lax Texas charter school laws allow splashy land buys, profits for leaders
In some cases, administrators own school facilities and collect millions from charging the schools rent.
Just over two years ago, Universal Academy, a Texas charter school with two campuses in the Dallas area, made a surprising move.
In November 2020, a nonprofit foundation formed to support the school bought a luxury horse ranch and equestrian center from former ExxonMobil Chairman Rex Tillerson. The 12-building complex features a show barn “designed with Normandy-style cathedral ceilings,” a 120,000 square foot climate-controlled riding arena and a viewing pavilion with kitchen and bathrooms.
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Last summer the Texas Education Agency granted Universal Academy permission to create a new elementary campus on the horse property’s manicured grounds. It will offer students riding lessons, according to a brochure, for $9,500.
Sales prices aren't public in Texas, but the 100-acre property had been listed for $12 million when Tillerson, who also served as secretary of state under former President Donald Trump, bought it in 2009. Because of the foundation’s nonprofit status and its plans to offer equine therapy, the parcel has been removed from the tax rolls.
School board President Janice Blackmon said Universal hopes to use the facility to start a 4H chapter and Western-style horsemanship training, among other programs that take advantage of its rural location. “We’re trying to broaden the students and connect them to their Texas roots,” she said.
Splashy purchases like the horse arena are receiving increasing public scrutiny as charter schools continue to expand aggressively across Texas. Under state law, charter schools are public schools — just owned and managed privately, unlike traditional school districts.
An analysis by Hearst Newspapers found cases in which charter schools collected valuable real estate at great cost to taxpayers but with a tenuous connection to student learning. In others, administrators own the school facilities and have collected millions from charging rent to the same schools they run.
In Houston, the superintendent and founder of Diversity, Roots and Wings Academy, or DRAW, owns or controls four facilities used by the school, allowing him to bill millions to schools he oversees. DRAW’s most recent financial report shows signed lease agreements to pay Fernando Donatti, the superintendent, and his companies more than $6.5 million through 2031.
In an email, superintendent Donetti at DRAW said the property transactions were ethical, in the best interest of DRAW’s students and properly reported to state regulators. He said his school was “lucky” he was able to purchase the property because of challenges charters can face finding proper facilities.
DRAW Academy, center, photographed Thursday, Jan. 19, 2023, in Houston.Jon Shapley/Staff photographer
