MERIT ACADEMY/WPSD PARTNERSHIP
Partnership Overview
Woodland Park School District has published information about its partnership with Merit Academy (https://www.wpsdk12.org/o/wpsd/page/wpsd-merit-partnership). While portions of that information are accurate, important legal context, documents, and details regarding the authorizer-charter relationship under Colorado law are lacking in totality and veracity. Merit Academy has prepared the following information to provide families and community members with a more complete and accurate understanding of the framework that governs our partnership.
The Legal Framework of the Authorizer-Charter Relationship
Under Colorado law, the relationship between a school district authorizer and a charter school is not a traditional hierarchical one. The Charter Schools Act establishes specific duties for the authorizer.
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The primary role of an authorizer is to support the charter school in delivering its educational program. (C.R.S. § 22-30.5-104)
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An authorizer serves as the fiscal agent and flow-through entity for state and local per-pupil funding on behalf of the charter school. (C.R.S. § 22-30.5-112)
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An authorizer must protect and preserve the charter school’s operational and educational autonomy as granted by the Charter Schools Act. (C.R.S. § 22-30.5-104 and C.R.S. § 22-30.5-105)
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An authorizer is responsible for ensuring the charter school’s compliance with applicable state and federal law while avoiding unnecessary interference in the school’s day-to-day operations. (C.R.S. § 22-30.5-104)
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An authorizer must minimize administrative requirements imposed on the charter school beyond those necessary to fulfill its oversight responsibilities. (C.R.S. § 22-30.5-104(2))
These statutory duties define the proper scope of the partnership. The authorizer’s role is to facilitate the charter school’s success within a framework of accountability, not to direct or subordinate the charter school’s operations.
State Framework and Legal Boundaries
On WPSD's partnership page, WPSD references the Colorado Association of Charter School Authorizers (CACSA) as a guiding framework. The following clarifies the actual legal structure and boundaries that govern the authorizer-charter relationship.
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The Colorado Charter Schools Act (C.R.S. § 22-30.5-101 et seq.) is the primary and binding state law that defines the rights and responsibilities of both charter schools and their authorizers.
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Under the Charter Schools Act, charter schools are granted significant autonomy as well as guidelines for accountability. Authorizers are required to respect and protect that independence. (C.R.S. § 22-30.5-104)
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Authorizer conduct is further guided by the Colorado Code of Regulations, specifically 1 CCR 301-88 (Standards for Charter Schools and Charter School Authorizers).
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1 CCR 301-88, Section 3.01 establishes the Three Core Principles of Charter Authorizing that authorizers must follow:
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Maintain high standards for schools,
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Uphold school autonomy, and
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Protect student and public interests.
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Specifically, 1 CCR 301-88, 3.01(B) requires authorizers to uphold school autonomy by honoring and preserving core rights, including governing board independence, personnel decisions, instructional programming, school culture, and budgeting, amongst other operations.
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The Charter Schools Act and its implementing regulations establish clear legal boundaries: Authorizers may hold charter schools accountable for performance and compliance, but they must do so while respecting the autonomy and operational independence granted to charter schools by law.
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While WPSD references CACSA for authorizer guidance, please note it is a voluntary professional association and holds no statutory or regulatory authority over charter schools or authorizers. NACSA (the National Association of Charter School Authorizers) has worked closely with the CO League of Charter Schools to develop resources available to authorizers, subject to State law and Code of Regulations.
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While authorizers may voluntarily consult resources such as those from CACSA or NACSA, these documents do not replace or supersede the requirements of the Charter Schools Act or 1 CCR 301-88.
The governing legal framework for this partnership is the Colorado Charter Schools Act and 1 CCR 301-88, which together define both the authority and the limits placed on the authorizer.
Charter Contract
The Charter Contract is the legally binding agreement between Merit Academy and Woodland Park School District. It establishes the school’s educational mission, academic and operational expectations, governance structure, financial requirements, and the terms under which the school operates and may be renewed.
The Charter Contract does not exist in isolation. It is subject to and must be interpreted in accordance with Colorado State Statutes, including the Charter Schools Act and the School Finance Act, as well as the Colorado Code of Regulations. In the event any provision of the Charter Contract conflicts with state statute or regulation, that specific provision is unenforceable, while the remainder of the contract remains in full force and effect.
Colorado law requires charter contracts to be reviewed and renewed on a multi-year cycle. In addition, both parties are expected to fulfill their obligations in good faith and in a manner consistent with the implied covenant of good faith and fair dealing, as is the intent of law.
Facility Use Agreement
Merit Academy occupies district-owned space under a Facility Use Agreement (FUA). The active agreement governs use of the building, maintenance responsibilities, scheduling, and the terms of occupancy.
WPSD’s published materials reference the February 2023 Facility Use Agreement as the latest FUA and lists as Inactive, despite the noted agreement through June, 2027. However, that version was executed at a time when Merit Academy was still expected to share the building with Woodland Park Middle School.
In August 2023, the parties executed an updated Facility Use Agreement that reflects the current arrangement in which Merit Academy is the sole tenant of the building.
The August 2023 Facility Use Agreement contains a scrivener’s error regarding the stated end date. Under established principles of contract law, a scrivener’s error — defined as a clerical or drafting mistake that does not reflect the true intent of the parties — does not invalidate a contract when the parties’ actual intent can be determined from the surrounding documents and communications. See Restatement (Second) of Contracts § 155 (1981). In this case, the paper trail of prior signed agreements, along with a November 2025 email from District legal counsel to District leadership, confirms that the parties intended the agreement to remain active and in effect through June 2027.
The August 2023 Facility Use Agreement is the current and active agreement and remains in force. At that time, both parties will work together to execute the renewal of Facility Use Agreement.
Most FUA's are for a term of five years, unless there is a need for a longer term (i.e. the school needs a longer term in order to access outside financing for capital improvements). The current, active agreement and the prior agreement are available below.
Charter School/Authorizer FAQ's
WHAT IS THE PRIMARY ROLE OF THE AUTHORIZER? In Colorado, a school district that serves as a charter school’s authorizer acts under the authority granted by the Colorado Charter Schools Act. The authorizer’s primary role is to review and approve the charter application and to enter into a binding charter contract with the school. Through this contract, the charter school is granted significant operating autonomy in areas such as curriculum, instruction, governance, and budget, in exchange for accountability to the performance standards and terms outlined in the agreement. subject to Statute and Codes. The authorizer is responsible for monitoring the charter school’s academic, financial, and organizational performance against those agreed-upon standards and for ensuring compliance with applicable state and federal law.
IS MERIT ACADEMY A PART OF THE WOODLAND PARK SCHOOL DISTRICT? Yes. Merit Academy is a public charter school authorized by Woodland Park School District. As a public charter school, Merit Academy serves local students and families who choice-in to Merit Academy. Merit Academy was established in response to strong interest from area families seeking a classical education with high standards in academics and conduct. This model of school choice provides families in the District with another option for the educational program that best fits their children’s needs.
HOW IS MERIT ACADEMY FUNDED? School funding is complicated and involves a formula, as described in the School Finance Act. Merit Academy's FAQ page discusses funding, and WPSD's partnership page also has a solid explanation. Essentially, the authorizer (WPSD) is simply the "pass through" entity of funding from state, local, and federal sources. In this, there is effort on the side of the District with reports to these entities for the determination of the charter school flow-through. However, on the WPSD page, it mentions the 5% central administrative overhead fee. Please note, this is a fee that the Distrct is allowed to withhold, but must refund a portion if it is found that the actual cost of providing services that are actually necessary to benefit the charter school do not meet that 5% withholding. By law, the District is required to submit to the charter school the financial statements and evidence of said suport activities and their actual cost within 90 days of the close of the fiscal year. Also, WPSD's webpage mentions title and federal funding as an independent search by the charter school. This is actually incorrect. The authorizer is responsible for all "title" and "categorical" grants through the federal and state government, so in several cases, the charter school relies upon the district to not only apply for and then flow through the proper revenues for special categories of student funding. By law, a charter school who provides services to these students is due those funds, even if the authorizer mistakenly does not include the charter school in those applications.
IS MERIT ACADEMY'S CAMPUS A DISTRICT FACILITY? Yes. Merit Academy operates in a public school facility that was built and paid for by local taxpayers to serve students in the Woodland Park community. As a public charter school, Merit Academy educates local children, fulfilling the same purpose for which these community-funded facilities were created. At a recent WPSD board meeting, Director Laura Gordon correctly noted that taxpayers are the true owners of these buildings and that the district serves as the property manager. Merit Academy takes this same responsibility for this campus seriously. Just as a district manages the public assets on behalf of taxpayers, Merit Academy acts as a responsible steward of the facility entrusted to its care. The school uses its own funding to maintain, repair, and operate the building, including fully paying for the property insurance and utilities. In accordance with Colorado law, Merit Academy does not pay rent to the district for the use of this taxpayer-funded facility. The current Facility Use Agreement governing the school’s occupancy is the active agreement and is due for renewal. Most Facility Use Agreements in Colorado are structured for terms of five years or longer to support stable, long-term planning for both the school and the facility.
WILL MERIT ACADEMY PAY WPSD FOR ROUTE TRANSPORTATION? No. Merit Academy will not pay Woodland Park School District the rate proposed for transportation services. WPSD has presented a per-student transportation fee of approximately $2,500 per rider. This figure is roughly twice the national average for school transportation and includes expenses that fall outside of standard bus route operations—the only transportation service Merit Academy students would utilize. When isolating the costs associated with general bus routes, a more accurate per-rider charge appears to fall between $950 and $1,300, depending on actual ridership levels and the true expenditures and revenues associated with the service. Unfortunately, WPSD has not provided detailed documentation, such as original agreements with Durham or itemized expense statements, to support its transportation cost or formula calculations. Without transparent and verifiable data, Merit Academy cannot justify paying the significantly higher rate proposed by the district. Merit Academy remains committed to investing in competitive compensation for our dedicated staff, maintaining high academic standards, and supporting the continued growth of our athletic and extracurricular programs. We will not divert resources from these core priorities to subsidize an unsubstantiated transportation rate.
WHAT IS A HOSTILE DISTRICT? In Colorado charter school law, a district may be considered hostile toward charter schools when it demonstrates a pattern of behavior that undermines the purposes of the Charter Schools Act or creates unreasonable barriers to charter school success. Colorado law and regulation recognize that authorizers have both powers and responsibilities, and that they must exercise their authority in good faith. In fact, the CO Appellate Court warned districts of using their superior bargaining position to harm their charter schools. Under the Colorado Charter Schools Act, charter schools are intended to operate with meaningful autonomy while remaining accountable for results. When a district engages in practices such as imposing excessive administrative burdens, unreasonably withholding approvals, applying inconsistent standards, or creating an environment that discourages charter school growth or stability, it may be viewed as failing to uphold the spirit and intent of the law. The State Board of Education has the authority to address such situations. Under Colorado law, the State Board may revoke or limit a school district’s exclusive chartering authority when it determines that the district is not fulfilling its responsibilities as an authorizer in a fair and effective manner. In these cases, the Charter School Institute (CSI) may be granted the ability to authorize new charter schools within that district’s boundaries. This intervention mechanism exists to protect the charter school sector and ensure that families have access to high-quality public school options, even in districts that have demonstrated hostility or unwillingness to work constructively with charter schools.
WHAT HAPPENS IF AN AUTHORIZING DISTRICT LOSES FINANCIAL ACCREDITATION? When a school district demonstrates ongoing and serious financial distress, the Colorado Department of Education (CDE) and the State Board of Education may determine that the district has lost financial accreditation or is in a state of financial emergency. This determination is typically based on multiple years of concerning financial indicators, including missed audit deadlines, repeated disclaimed audit opinions or material weaknesses, declining enrollment, operating deficits that deplete fund balance, misuse of restricted revenues, and underutilized facilities. Under Colorado law, the State Board of Education has the authority to intervene when a district is unable to meet its financial obligations, fails to maintain sound fiscal practices, or misappropriates charter funding for district use. Intervention can include placing the district under increased state oversight, requiring the submission of corrective action plans, or appointing an external financial manager to oversee district operations. Furthermore, the State Board may direct the district to take significant corrective measures, such as liquidating assets, reducing liabilities, or restructuring operations to restore financial stability. Districts in this situation may be required to consider the sale or transfer of underutilized facilities. In that, the charter school may be called on to assist the district through the purchase of their school building, and the district may also need to sell a facility or other property to another party like a local municipality. Sales like these come with a clause that protects the district, the charter school, the municipality, and the taxpayer's asset through fair actions in good faith. Other potential actions include reducing district operations to the minimum level necessary to serve students, merging with neighboring districts, or closing additional schools. Districts that fail to meet their authorizing responsibilities in good faith may also lose their exclusive chartering authority, allowing the Charter School Institute (CSI) to authorize new charter schools within the district’s boundaries. These interventions are designed to protect students, taxpayers, and the long-term viability of public education in the affected community. The specific actions taken depend on the severity and duration of the district’s financial condition, as well as its willingness to improve the district's status by implementing meaningful corrective measures.