10/08/2026
Why the recent California charter school bankruptcy is a rare move:
While Highlands Community Charter School recently filed for Chapter 11 bankruptcy, formal bankruptcy filings are actually rare for public charter schools.
Experts note that Highlands' recent filing is a highly unusual tactical move used to pause a $180+ million repayment demand from the state and halt a pending shutdown.
Most struggling charter schools dissolve quietly or face charter revocation by their authorizing school districts, rather than entering a courtroom.
A state audit last year faulted the Sacramento County Office of Education and CDE for insufficient follow-through on earlier findings. The state is expected to release the results of an audit reviewing the Orange County Board of Education including its charter school approval process. Stay tuned.
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