In a continuing crackdown on unqualified applicants for choice school funding, the state Department of Public Instruction said Monday that it denied funding to three applicants this year because they don't provide the required 875 hours of instruction and consequently don't meet the definition of a private school.

Nine other applicants were told that they won't get payments unless they can prove by Thursday that they are private schools that meet the minimum for hours of instruction and provide the required curriculum in six basic subjects, the DPI said.

Combined with applicants sent letters last week, that adds up to 17 choice schools or proposed schools from which the DPI has withheld or threatened to withhold funding. That's nearly 15% of the 114 applicants for the program this year.

Seven of the 12 applicants in Monday's announcement received choice funding last year. The other five were new to the choice program for this school year.

"These schools are in essence day care providers saying, `Hmm, I'd like to get some choice dollars,' " said Bob Soldner, the DPI's director of school management services. "You need to be a private school."

DPI officials said the tougher stance this year signals a new era - - a move from establishing choice schools to administering them.

"Starting this year, we're putting schools on notice: The DPI is going to administer the rules according to the law. That is a change in philosophy," Soldner said.

Participation in the Milwaukee Parental Choice Program, a voucher program, is limited to private schools. To be considered a private school, an applicant must provide at least 875 hours of instruction per year and offer classes in reading, language arts, mathematics, social studies, science and health, DPI officials said.

A large majority of schools participating in the choice program have complied with state regulations. The program has about 10,000 children enrolled this school year.

One of the applicants denied funding, Sherman Park Preschool, 2703 N. Sherman Blvd., received funding last year, Soldner said. The other two -- Zebaoth Learning Center, 615 W. Melvina St., and Harbor Cross School, 4022 N. 27th St. -- were new to the choice program this year, Soldner said.

All three applicants said Monday that they planned to appeal the state's decision. They have 30 days to request hearings.

Sherman Park Preschool was stunned by the state's move.

"We are a private school. We've met all their requirements," said the preschool's administrator, Jeanette Gross.

Gross said she thinks the state erred in calculating the hours of instruction her facility provides.

"We provide over 900 hours," she said.

Sherman Park Preschool had expected to receive $135,813 from the state this year, and the first of four installments was to be issued Thursday.

Gross said the DPI decision on funding was ill-timed, coming after school was under way this year and even though the DPI funded the school last year.

"I think for them to decide over a month into the school year could very well put many families in jeopardy as to where to go with their children," Gross said.

"How can we pay our teachers? How can we pay our building use bills?" she said.

Brandi Fauver, director of Zebaoth Learning Center, said she was under the impression that preschools had to provide only half of the 875 hours of instruction. Zebaoth had expected to receive $7,989 in state funding this year.

"I'm hoping we can figure something out," she said.

But Soldner said: "The law doesn't allow you to receive choice dollars as a stand-alone preschool. The law says you must be a private school before you can add on preschool/kindergarten."

Harbor Cross's director, Portia Draeving, also disputed the DPI's findings, saying Harbor Cross offers more than 900 hours of instruction. Harbor Cross had expected to receive $23,967.

Of the nine other applicants notified that funding would be withheld, the DPI said it has been unable to verify that the applicants meet the definition of private schools because they have failed to provide necessary documentation.

That paperwork includes a school calendar indicating hours of instruction and documents on the curriculum for each grade, Soldner said.

Soldner said about half of the nine applicants probably would not qualify as private schools.

The nine applicants and their estimated state funding for the year are:

-- Ceria M. Travis Academy, 2733 W. Wisconsin Ave., $708,358.

-- Early View Academy of Excellence, 4300 N. Green Bay Ave., $1,528,562.

-- Grace Preparatory School of Excellence, 4365 N. 27th St., $76,694. Grace is a new applicant for the choice program.

-- Gregory B. Flood Christian Academy, 4260 N. Teutonia Ave., $61,249.

-- Immanuel Christian Academy, 2009 S. 19th St., $248,192. Immanuel is a new applicant. Immanuel also was among the applicants targeted last week, when the DPI said it hadn't provided a copy of its occupancy permit.

-- Kindergarten Plus, 3201 N. 40th St., $108,650.

-- Lakeshore Montessori School, 1841 N. Prospect Ave., $37,282.

-- Louis Tucker Academy, 331 S. 68th St., $415,428.

-- Stepping Stone Learning Center, 4960 N. 18th St., $21,304. Stepping Stone is a new applicant.

The DPI's move to deny funding is the latest step the state is taking to "ensure that these are viable schools," said Greg Doyle, a DPI spokesman.

Last week, the DPI threatened to withhold funding from six applicants -- four because they did not have the required occupancy permits to show their buildings meet health and safety codes for schools and two for failing to refund to the state overpayments they received last year. Sending the DPI a copy of the occupancy permit is a new requirement this year.

The DPI gave those applicants until Thursday to meet the requirements.

Of the four applicants that had not submitted occupancy permits, only Woodson Academy, 5510 W. Blue Mound Road, has since complied, by submitting a temporary permit.

The three applicants that have not yet submitted the permits are Immanuel Christian Academy; Sensas-Utcha Institute of Holistic Learning, 2470 W. Keefe Ave.; and Victory Preparatory Academy, 3132 N. King Drive.

Sensas-Utcha does not even have a building to house a school.

Of the two applicants that owed refunds, Blyden Delany Academy, 2466 W. McKinley Ave., has paid the $11,030 it owed, the DPI said Monday. However, the school has yet to submit to the DPI a financial audit required by law. Until it does, the school will not receive state funding, said Tricia Collins, who oversees the choice program for the DPI. Holy Redeemer Christian Academy, 3500 W. Mother Daniels Way, has promised to send a check for $2,447 to the DPI, Collins said. The state initially contended Holy Redeemer owed $15,390, but the figure was adjusted after records were reviewed, Collins said.