TJCA's Attorney Defended Limited Salary Disclosure Amid Statewide Charter School Transparency Dispute

Mortellus

Nov 19, 2014

North Carolina education officials reversed their position on public access to charter school salaries in 2014, while attorney David Hostetler defended withholding employee names and questioned the extent of charter schools' public-records obligations.

What happened: In March 2014, a statewide controversy erupted over whether North Carolina's publicly funded charter schools were legally required to disclose individual employee names and salaries in response to public records requests.

The dispute began when The Charlotte Observer requested employee compensation information from 21 charter schools in the Charlotte region as part of its longstanding reporting on publicly funded salaries.

Unlike traditional public-school districts, charter schools operated through private nonprofit corporations, creating disagreement over how North Carolina's Public Records Act and personnel-confidentiality statutes applied to their employees.

Initially, the North Carolina Department of Public Instruction (DPI) informed the newspaper that charter-school employee salaries were not subject to the same public-disclosure requirements governing traditional public-school employees. Department officials explained that charter-school employees worked for private nonprofit governing boards rather than local boards of education.

That interpretation drew criticism from lawmakers, journalists, government attorneys, and transparency advocates, who argued that charter schools could not use their private corporate structures to shield the expenditure of public education funds from scrutiny.

By April 15, 2014, State Superintendent June Atkinson and State Board of Education Chairman William Cobey publicly reversed the Department's earlier position, confirming that charter schools were required to disclose employee salary information.

The controversy also involved attorney David Hostetler, who represented Carolina International School and served as legal counsel for the North Carolina Public Charter Schools Association. Hostetler, who would also represent Thomas Jefferson Classical Academy, appeared in contemporary reporting defending a more restrictive approach to employee compensation disclosures.

Hostetler argued that uncertainty in the law justified protecting employee privacy while the legal requirements remained unsettled.

The dispute ultimately prompted formal state warnings, legislative clarification, and enforcement action against charter schools that continued to resist disclosure.

What was established: Contemporary reporting by WFAE and The Charlotte Observer, along with subsequent state legislation, documents the evolution of North Carolina's position on charter-school salary transparency throughout 2014.

March 2014 — DPI Initially Supports Withholding Charter School Salaries

On March 20, 2014, WFAE reported that DPI had concluded charter schools were not legally required to disclose employee salaries in the same manner as traditional public-school districts.

DPI spokeswoman Vanessa Jeter explained that departmental attorneys had distinguished employees of private nonprofit charter boards from employees of local public-school boards.

Under that interpretation, charter-school governing boards could determine for themselves whether to release individual salary information. The position conflicted with interpretations offered by Gerry Cohen, then special counsel to the North Carolina General Assembly, and attorneys representing the North Carolina Press Association and Charlotte-Mecklenburg Schools.

Those attorneys argued that the absence of a specific personnel-records exemption for charter-school employees did not create greater confidentiality. Instead, they maintained that the Public Records Act generally favored disclosure unless a statute expressly authorized withholding. The disagreement highlighted an important feature of North Carolina charter-school governance: the institutions were legally public schools, but operated through private nonprofit corporations with employment structures distinct from traditional districts.

April 15, 2014 — State Education Leaders Reverse Course

Following public criticism and additional legal review, State Superintendent June Atkinson announced that DPI's earlier interpretation had been mistaken. Atkinson stated that the Department's attorneys had misunderstood the original question and confirmed that charter schools were required to disclose salary information. State Board Chairman William Cobey agreed, emphasizing that charter schools' use of taxpayer funds carried public accountability obligations.

The reversal was significant because the initial interpretation had already influenced how charter schools responded to the newspaper's records requests. Some schools released the requested information, while others delayed production, withheld employee names, or declined to disclose salaries pending additional legal clarification. The controversy demonstrated how contradictory guidance from state oversight officials could create confusion about records that the public was entitled to inspect.

April 2014 — David Hostetler Defends Limited Disclosure

Attorney David Hostetler appeared in the April 15 reporting as counsel for Carolina International School, whose Board had referred the newspaper's salary request to him for legal review.

Hostetler acknowledged that, as a matter of public policy, he believed charter schools receiving taxpayer funding should generally operate under disclosure standards comparable to traditional public schools. However, he also argued that unresolved legal questions required schools to consider whether releasing employee information could expose them to privacy-related claims.

In a follow-up article originally published April 18, Hostetler offered a more specific defense of withholding employee names while releasing other compensation information.

He maintained that the scope of the Public Records Act's application to charter schools remained unclear and described withholding identifying employee information as a legally reasonable compromise. The same reporting identified Hostetler as legal counsel for the North Carolina Public Charter Schools Association, whose leadership had offered member schools assistance in responding to salary-disclosure requests. These statements are significant to TJCA Truth's archive because Hostetler subsequently represented Thomas Jefferson Classical Academy in disputes and discussions concerning the Academy's public-records obligations. They establish a documented history of Hostetler publicly discussing the legal boundaries between charter schools' private nonprofit structures, employee confidentiality, and taxpayer transparency.

April 24, 2014 — State Officials Warn Schools of Potential Charter Revocation

On April 24, WFAE reported that North Carolina charter-school director Joel Medley had warned schools that refusing to comply with lawful salary-disclosure requests could jeopardize their operating charters. Medley's written communication emphasized that compliance with the Public Records Act was an established condition of charter-school authorization. The warning went beyond merely expressing a preferred disclosure policy. It identified potential consequences for schools that failed to meet their legal and contractual obligations. According to the reporting, several schools had supplied incomplete information or had not yet responded to the requests.

August 2014 — General Assembly Clarifies Charter School Personnel Records

On August 6, 2014, North Carolina enacted Session Law 2014-101, originating from Senate Bill 793.

The legislation amended the charter-school statutes to expressly address personnel-records disclosure. Under the amendment, personnel records for employees directly employed by charter-school governing boards became subject to the confidentiality and disclosure framework established under Article 21A of Chapter 115C, the same statutory article governing traditional public-school personnel records. That framework protects many sensitive employment records while requiring specified employment information, including employee names, positions, and compensation, to remain publicly accessible. The legislation clarified that charter schools could not categorically refuse to disclose employee compensation information simply because their governing boards were private nonprofit corporations.

November 2014 — State Releases Records After Further Resistance

In November, WFAE reported that several charter schools operated through Roger Bacon Academy had resisted providing salary information concerning employees supplied by the private management company. The dispute resulted in intervention by state education officials, including probationary action against four charter schools.

On November 19, WFAE reported that the state had released compensation information obtained from the remaining holdouts following intervention by state officials and the adoption of clarifying legislation. The controversy illustrated that disputes about public compensation records extended beyond direct charter-school employees to arrangements involving private contractors and educational management organizations.

What was not established: The 2014 reporting does not establish that Thomas Jefferson Classical Academy itself refused to release employee salaries, participated in the Charlotte Observer's disputed records requests, or violated the Public Records Act during this controversy.

Hostetler's documented involvement concerned Carolina International School and the North Carolina Public Charter Schools Association, not a salary-disclosure request directed to TJCA.

His legal interpretation also should not be treated as proof that he advised TJCA to withhold similar records or that the Academy adopted his position.

The reporting establishes that Hostetler defended withholding certain identifying employee information during a period of conflicting legal interpretations. It does not establish that his statements were judicially determined to constitute professional misconduct or unlawful advice.

Nor does the controversy mean that every document contained in a charter-school employee's personnel file is public. North Carolina law protects specified confidential personnel information while requiring disclosure of certain employment and compensation records.

The significance of this episode lies in the documented disagreement over public-records obligations, the subsequent reversal of state guidance, and the eventual legislative and regulatory response.

Original evidence:

The WFAE and Charlotte Observer articles preserve contemporaneous statements by state education officials, attorneys, charter-school representatives, and public-records advocates.

The legislative record independently establishes North Carolina's statutory response to the dispute.

Additional evidence:

Sunshine Request — TJCA Public Records Correspondence, May–December 2024

Subsequent developments: The 2014 salary-disclosure controversy prompted North Carolina lawmakers to clarify the public-records obligations of charter schools. Under the amended law, employees directly hired by charter-school governing boards became subject to the personnel-records provisions of Article 21A of Chapter 115C, establishing clearer requirements for public access to employee names, positions, and compensation. The distinction between charter schools' private nonprofit structures and their responsibilities as publicly funded institutions nevertheless continued to generate disputes.

In 2024, approximately a decade after the statewide salary-disclosure controversy, attorney David Hostetler represented TJCA in another disagreement over public-records access. The transparency organization Sunshine Request sought electronic communications concerning student privacy and bathroom accommodations at the Academy. In published correspondence, Hostetler maintained that TJCA could make responsive records available for in-person inspection rather than providing them electronically. Sunshine Request challenged that interpretation, and the publicly documented exchange ended without a reported agreement concerning production.

Although the two controversies involved different records and legal questions, both illustrate the continuing tension surrounding charter schools' public-records obligations. They also document Hostetler's recurring involvement in interpreting those obligations, first in statewide charter-school advocacy and later as counsel for TJCA.

TJCA Truth welcomes historical correspondence, Board records, personnel-disclosure policies, and other materials documenting how the Academy responded to the 2014 legislative clarification, including whether TJCA received or contested requests for employee compensation information during that period.

Report from the community: No independent firsthand accounts from TJCA employees, families, or community members specifically concerning the 2014 salary-disclosure controversy have yet been obtained by TJCA Truth. Contemporaneous reporting preserves statements from state education officials, government attorneys, journalists, and charter-school representatives, including Hostetler, concerning the disclosure of publicly funded employee compensation.

TJCA Truth welcomes firsthand perspectives from former charter-school employees, administrators, Board members, and individuals who requested salary or personnel records during this period. Experiences involving access to compensation information, the handling of public-records requests, or changes to disclosure practices following the 2014 legislation may provide valuable historical context. Contributors may request anonymity, and private correspondence will not be published without permission.