Morgan Smith of the Texas Tribune (published in thr New York Times) wrote about the secrecy that surrounds the finances of private corporations that manage schools and claim to be “public.”
They are “public” when it is time to get the money but their finances are private when asked to account for taxpayer money.
Basis, an Arizona charter chain, submitted an application to open a charter in San Antonio and this is what happened:
“On a recently approved Texas charter school application, blacked-out paragraphs appear on almost 100 of its 393 pages.
“Redactions on the publicly available online version of the application often extend for pages at a time. They include sections on the school’s plan to support students’ academic success, its extracurricular activities and the “extent to which any private entity, including any management company” will be involved in the school’s operation. The “shaded material,” according to footnotes, is confidential proprietary or financial information.”
Smith writes:
“In Texas, commercial entities cannot run public schools. But when a school’s management — including accounting, marketing and hiring decisions — is contracted out to a private company, the distinction can become artificial. Such an arrangement raises questions about how to ensure financial accountability when the boundary between public and private is blurred, and the rules of public disclosure governing expenditures of taxpayer money do not apply.”
Some of the most secretive companies run virtual schools, paid for with public money:
“When The Texas Tribune made an open-records request for employee salary records and marketing expenses at the state’s full-time virtual schools, it received responses from all but one of those connected with for-profit entities indicating either that the records were not available or were not subject to public information laws.
“The Huntsville Independent School District, which went into partnership with K12 Inc. to open a virtual academy this year, said the district did not have documents responding to the request at the virtual campus as “it contracts with a private company to handle all employment of personnel and staffing-related data.”
“In other instances, The Tribune was directed to make a request to the private company. A lawyer for Responsive Ed Solutions, a charter school that also contracts with K12 Inc., wrote that most employees of its virtual school were hired by the company and provided the email address of a K12 lawyer. A K12 Inc. spokesman then told The Tribune that “confidential information about K12’s employees” could not be disclosed.”

It’s called Taxation Without Representation …
You’d think the TEA Party would be dumping iPads in all the harbors by now …
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Jon Awbrey: you’d think so, but perhaps you didn’t get the latest memo pointing out that they only object to “crony edupreneurs.”
Or maybe you’re not on the Hasty Optimist Emailing List?
😎
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“They are “public” when it is time to get the money but their finances are private when asked to account for taxpayer money.”
Call me naive, but isn’t this illegal?
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I think it’s largely standard in government contracting. No one expects to see Lockheed Martin’s books and records because they are a private company, even though they get public money. I think it has only finally occurred to us how messed up this is because they’re trying to privatize things that have always been publicly provided and publicly accountable. Maybe we should have been paying better attention when they started handing out defense contracts.
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That doesn’t square with my (admittedly 30-y.o.) experience in govt purchasing. You couldn’t entertain contracts with outfits who hadn’t been thoroughly vetted financially for exactly this reason– you didn’t want them folding on you in the middle of a job. Smaller companies had to be bonded to ensure that the gov received monies to replace them in that event. Maybe taxpayers in Ohio can find a legal route forward by checking out that angle?
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http://www.dispatch.com/content/stories/local/2014/01/12/charter-failure.html
This is the Columbus Dispatch, which is a conservative paper that has actively promoted charters for at least a decade. Big piece on the churn and chaos in charter schools:
“At the beginning of 2013, one long-struggling charter school closed. Over the summer, five more did. And in the fall, 11 more Columbus charters closed their doors, most of them brand new.
That’s 17 charter schools in Columbus closed in one year, which records show is unprecedented.
“It shows the power of a couple of players with standards that are not up to par really affecting an overall market,” said Chad Aldis, a vice president at the Thomas B. Fordham Institute, which sponsors 10 charter schools in Ohio, some in Columbus.”
I find it truly remarkable that the Fordham Institute can adopt this ridiculous passive tone on this, babbling about “markets”.
This experiment has cost Ohio taxpayers millions, and created chaos in this system, never mind the effect on these kids, and not to mention that our single-minded focus on charters has harmed every public school student in the state.
The Fordham Institute is a huge player in lobbying for charter schools.
Who, exactly, is responsible for this disaster, if not them? When are ed reformers going to be held accountable for the mess they’ve created in this state?
“Looking back, some in the charter-school community and at the Ohio Department of Education question whether some of the new schools ever should have opened. How, they wondered, did this happen?”
Incredible. The engineers of this wonder..”how did this happen?”
Are there any grown ups in ed reform? Anyone who is EVER willing to say “no”?
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Chiara Duggan: whatever happened to that old conservative standby “you can’t solve a problem by throwing money at it”? Oh yes, and “there’s no free lunch”?
So it’s public funding but private or pseudo-private management and ROI [disguised or open]—and the public bears the risk when they fail? Risk-aversion investment in action!
Rheeally!
So right—where’s the responsibility for all the wasted time, effort and resources taken from under-resourced public schools? Who takes the responsibility for replacing all that was shamelessly wasted?
Paul Vallas spoke the soul of the leading charterites/privatizers: “I go in, fix the system, I move on to something else.”
Link: http://www.nbcchicago.com/blogs/ward-room/Paul-Vallas–213999671.html
They move on, we get stuck with the results—and we’re expected to clean up their messes. And then get blamed for not getting best results, so they start up the wrecking ball all over again.
But not to fret. Where $tudent $ucce$$ is concerned, they zealously follow this advice [?] from an old dead Greek guy:
“Profit is sweet, even when it comes from deception.” [Sophocles]
😎
P.S. Too bad they forgot something else that old dead Greek guy said:
“Things gained through unjust fraud are never secure.” [Sophocles]
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“So it’s public funding but private or pseudo-private management and ROI [disguised or open]—and the public bears the risk when they fail? Risk-aversion investment in action!”
The other part that bothers me is how this system, of private operators and hands-off authorization, allows ELECTED leaders (like the Mayor of Columbus, for example) to completely avoid responsibility for public schools.
The Dispatch doesn’t even bother to ask the mayor of Columbus what’s going on with the charter schools there. Apparently, he has “relinquished” the entire responsibility for the health of the school system in that city to think tanks and various appointed “charter boards”.
Is this really what we want? The ability of governors and mayors to just wash their hands of public schools, and let someone else run them? I mean, talk about a disaster as far as accountable and responsive government. Who came up with that great idea? The Fordham Institute?
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After having cheered for charters for so long, how does the Columbus Dispatch print a report like this without major apologies? I guess they can’t see the egg on their own faces.
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Sorry I had Ohio in mind when I posted a reply above. Taxpayers should see if ed dept is actually following state purchasing laws when they contract work to what are apparently financially unsound outfits.
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I must be naive too because I cannot believe this is legal.
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Sure it’s legal–if you or someone you know well is a legislator….or rich…or both.
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Very easy to tell what is legal or illegal these days – how much is in your bank account? If you’re poor, breathing itself is pretty much illegal. If you’re rich, murder is legal. For those of us in between, we can get away with a reasonable amount until we piss off the rich, at which point, remember, murder is legal (for them).
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This feels more like a legal gray area that they’re playing for as long as they can while working to keep it gray.
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Agree! Are there no financial standards for vendors of services to the state?
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Here’s the ed reform response to Ohio’s charter mess, a mess that they created:
“But of the closings, he said he doesn’t think the ESC is particularly at fault. It was a difficult market, and some of the operators simply weren’t ready to handle running a school.
“It’s a hazard of the business,” he said.”
“Hazard”. Hah! It’s absolute nonsense. This is all public money. These charter operators are risking nothing, financially. The one and only people carrying the risk are the public, which is why the charter operators can be so cavalier about opening and then closing these schools.
Ohio taxpayers took the downside of this “hazard” and so did the students in these closed schools, and so did the public school kids who also lost, because existing public schools were harmed.
The charter operators risked nothing, and lost nothing.
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The same thing is happening in Chicago with UNO charters: “Charter School Operator Won’t Say How It Spent Your Tax Dollars: UNO Fights to Keep Financial Records Secret”
http://www.chicagoreader.com/chicago/charter-schools-spending-foia-united-neighborhood-organization/Content?oid=11880450
And we are talking BIG money. The above article described only the $98M of free taxpayer money UNO received in 2009 and failed to mention that the charter chain also got $280M of free taxpayer dollars over the previous five years. This, in a city that shut down 49 neighborhood schools six months ago supposedly to “rightsize” because it’s cash strapped, and yet they are planning to open up 21 new charter schools over the next 2 years.
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Something smells fishy. If it seems too good to be true, it’s not.
Sent from my T-Mobile 4G LTE Device
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Most of thread deals with redactions of financial records (to which I respond that surely there must be state purchasing regs requiring the financial vetting of service-providers). But there is that other elephant in the room– that so many charters in so many states are not required to meet the state’s curriculum/ assessment/ teacher-evaluation standards. (One could not assess the posted vendor’s ability to do this with all the redactions regarding description of services).
Although it is probably a more difficult avenue legally than vetting the financials of a charter, taxpayers need to come to grips with the way in which charters are skirting what is probably the ed law in most states regarding what publicly-funded charters are supposed to be: an experiment. Thet are given a pass on state ed regulations in order to see if they can innovate & come up with methods that improve on the standard model, which can then be fed back into that model. Charter laws need to be enhanced with feedback loops and limits, so they are not allowed to spend public monies while producing no innovations or improvements. One would think that if ed-charter laws were tightened up so as to be results-oriented in this regard, many would have lost their charters already.
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Morgan Smith is smart and a credit to NYT and Texas Tribune. In fact, we need her to get onto the secrecy of dirty politics in the Texas school systems, where the lack of transparency causes us to ask, “What are they hiding behind closed doors?”. The large urban districts that have become so corrosive, Austin, Houston, and Dallas spend unlimited money promoting themselves to look pretty for the public, but behind closed doors they are operating like the mafia. There is probably a deal that links the Texas prison system to the public schools, especially Title I Schools, since the school administrators are doing a great job of supplying the demand for the prison population.
It is the beast known as the Texas-School-Prison-Mental Health-Industrial Complex.
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Why are schools responsible for someone going to prison? Why are they to blame more than any group or family member?
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Dear Diane: Good seeing you in Chicago this past Saturday. All the best.Don
Donald M. Stewart
5555 S. Everett Ave., Apt. B1
Chicago, IL 60637
donstewart74@gmail.com
(773) 684-9044
_____
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