With a final vote set for today, the commission has an opportunity to usher in a new era in school reform by shutting down a charter school for the first time since the movement began in the city 11 years ago.

Three charter schools are under federal investigation. The time has come for more accountability and oversight by the School District and the state Department of Education.

Last spring, the commission was given at least 11 valid reasons - mainly academic and financial woes - to close Germantown Settlement Charter. It voted in April not to renew the school's five-year charter, but the final decision will be made today. And there's a new scandal to consider.

It was reported Sunday that Germantown Settlement Charter is being investigated by federal authorities. It allegedly diverted some of the $31 million in taxpayer funding it has received to other nonprofits also operated by the same community development group.

Germantown Settlement has become the third Philadelphia charter school to fall under federal scrutiny in a widening probe of publicly funded charter schools accused of mismanagement, misuse of public funds, and cronyism. Also being investigated are Philadelphia Academy Charter School and Northwood Academy Charter School.

The city's 63 charters enroll 30,000 students and remain a viable alternative to failing traditional schools. But clearly, the system that pumps $279 million in taxpayer money into Philadelphia's charter schools must be fixed.

With 456 fifth- through eighth-grade students, Germantown Settlement Charter is a textbook example of a charter school in crisis. Its test scores dramatically lag state benchmarks in language arts and math.

An Inquirer analysis shows the school spent only 38.4 percent of its 2006-07 budget on instruction - the fifth-lowest percentage of 118 charter schools in the state.

Meanwhile, vendors have not been paid, and the school has been threatened with eviction. The school's accounts reportedly have been drained, and its deficits have run as high as $406,617.

The state attorney general is also looking into Germantown Settlement Charter. That investigation is said to center on missing funds, improper spending, and conflicts of interest.

Emanuel Freeman, president of the charter school's board, has denied any wrongdoing and has vowed to appeal any move to close the school. He also is a landlord for a building the school rents.

Some parents praise the charter for its staff, safe environment and small classes. But Freeman has a lot of explaining to do, beginning with money the charter "loaned" to other entities also operated by the Germantown Settlement community development organization.

By closing Germantown Settlement Charter, the SRC would send a strong message that all city charter schools must spend tax dollars wisely or face the consequences.