The nonpartisan group In the Public Interest has released a major new report on wasteful spending on charter schools in California. It is called Spending Blind: The Failure of Policy Planning in California’s Charter School Facility Funding.
The bottom line is that California spends on charter schools without planning, without supervision, and without accountability. Vast sums of public money have disappeared, as charters close or mismanage funds. Every attempt to impose accountability on the charter industry has been vetoed by Governor Brown. The State Board of Education, which the governor appoints, does not demand accountability. California thinks of itself as a blue state, but when it comes to education funding, it is a Trump/DeVos state.
The key findings:
The report’s key findings include:
Over the past 15 years, California charter schools have received more than $2.5 billion in tax dollars or taxpayer subsidized funds to lease, build, or buy school buildings.
Nearly 450 charter schools have opened in places that already had enough classroom space for all students—and this overproduction of schools was made possible by generous public support, including $111 million in rent, lease, or mortgage payments picked up by taxpayers, $135 million in general obligation bonds, and $425 million in private investments subsidized with tax credits or tax exemptions.
For three-quarters of California charter schools, the quality of education on offer—based on state and charter industry standards—is worse than that of a nearby traditional public school that serves a demographically similar population. Taxpayers have provided these schools with an estimated three-quarters of a billion dollars in direct funding and an additional $1.1 billion in taxpayer-subsidized financing.
Even by the charter industry’s standards, the worst charter schools receive generous facility funding. The California Charter Schools Association identified 161 charter schools that ranked in the bottom 10% of schools serving comparable populations last year, but even these schools received more than $200 million in tax dollars and tax-subsidized funding.
At least 30% of charter schools were both opened in places that had no need for additional seats and also failed to provide an education superior to that available in nearby public schools. This number is almost certainly underestimated, but even at this rate, Californians provided these schools combined facilities funding of more than $750 million, at a net cost to taxpayers of nearly $400 million.
Public facilities funding has been disproportionately concentrated among the less than one-third of schools that are owned by Charter Management Organizations (CMOs) that operate chains of between three and 30 schools. An even more disproportionate share of funding has been taken by just four large CMO chains—Aspire, KIPP, Alliance, and Animo/Green Dot.
Since 2009, the 253 schools found by the American Civil Liberties Union of Southern California to maintain discriminatory enrollment policies have been awarded a collective $75 million under the SB740 program, $120 million in general obligation bonds, and $150 million in conduit bond financing.
CMOs have used public tax dollars to buy private property. The Alliance College-Ready Public Schools network of charter schools, for instance, has benefited from more than $110 million in federal and state taxpayer support for its facilities, which are not owned by the public, but are part of a growing empire of privately owned Los Angeles-area real estate now worth in excess of $200 million.
This squandering of public funds is outrageous. Will the Legislature and the Governor demand accountability?

This shows why the state will do nothing about fraud, waste, abuse. This is current information about charter school financing in California.
Begin Quote:
Through the passage of Propositions 47, 55, and 1D, and most recently, Proposition 51, $1.4 billion has been made available to charter schools for construction of new facilities or rehabilitation of existing school district facilities.
The state-funded Charter School Facilities Program (CSFP) is jointly administered by the California School Finance Authority (CSFA) and the Office of Public School Construction (OPSC). CSFA directs the financial soundness review process for the CSFP and provides certification of financial soundness for purposes of Preliminary, Advance, and Final Apportionments.
The Charter School Facilities Program (CSFP) provides fixed rate, long-term debt to schools at underwriting terms that are set by the state – not the capital markets.
A $1.4 billion program, CSFP provides low-cost financing for charter school facilities; 50% grant, 50% loan. This money is used to finance the construction of new, permanent school facilities or rehabilitation of existing school district facilities for charter schools throughout the state.
End Quote.
Nobody cares about fraud waste and abuse.
A quick check at the Gates Foundation website shows $31 million invested in amping up charter school facilities in Los Angeles, 24 million in the state of Washington, and some recent funding to promote facilities financing in Boston–not much about $20,000–sent to Bellwether Education Partners , the go-to consultancy for all things for all charter schools.
From http://www.treasurer.ca.gov/csfa/charter.asp
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And what’s offered is NOT GOOD PEDAGOGY, too.
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Wow! They steal from kids.
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Brown has consistently obstructed ANY effort to make funding more equitable or hold charter schools accountable. It is extremely frustrating for us CA residents. The only glimmer of hope is that the situation is getting so bad that even the Cal Charter School Association is recognizing that some amount of transparency is necessary for the sector to have any credibility whatsoever. http://www.scpr.org/news/2017/04/04/70439/could-fragile-peace-between-political-rivals-ultim/
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Very disturbing news, but not surprising.
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It’s as if legislators turned on a faucet of money & walked away.
That’s exactly what it’s like.
That’s what they want, though, politicians. They want to contract-out public education and just hand everyone a voucher. That way they’re not accountable for anything.
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Speaking of California schools, look what just occurred:
*BREAKING NEWS*
Four people have been shot at an elementary school in an apparent murder-suicide in San Bernardino, Calif., a police official said.
Two students have been hospitalized.
San Bernardino County fire spokesman Eric Sherwin says the shooting happened Monday morning at the North Park School in San Bernardino.
On Mon, Apr 10, 2017 at 1:00 PM, Diane Ravitch’s blog wrote:
> dianeravitch posted: “The nonpartisan group In the Public Interest has > released a major new report on wasteful spending on charter schools in > California. It is called Spending Blind: The Failure of Policy Planning in > California’s Charter School Facility Funding. The bottom” >
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This is WHY they regulated school finances, locally. So the regulator would be close to the school. Because they knew the state couldn’t regulate thousands of schools from a central location.
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The Office of Inspector General of the U.S. Department of Education has issued a report that, because of their lack of accountability to the public, charter schools pose a risk to the Department of Education’s goals. The report finds that “Charter schools and their management organizations pose a potential risk to federal funds even as they threaten to fall short of meeting the goals” because of financial fraud and the artful skimming of tax money into private pockets.
Even the staunchly pro-charter school Los Angeles Times (which acknowledges that its favorable reporting on charter schools is paid for by a billionaire charter school advocate) complained in an editorial that “the only serious scrutiny that charter operators typically get is when they are issued their right to operate, and then five years later when they apply for renewal.” Without needed oversight of what charter schools are actually doing with the public’s tax dollars, hundreds of millions of tax dollars that are intended to be spent on educating the public’s children is being siphoned away into private pockets and to the bottom lines of hedge funds.
The Washington State Supreme Court, the New York State Supreme Court, and the National Labor Relations Board have ruled that charter schools are not public schools at all because they aren’t accountable to the public since they aren’t governed by publicly-elected boards and aren’t subdivisions of public government entities, in spite of the fact that some state laws enabling charter schools say they are government subdivisions. That’s common sense to any taxpayer: Charter schools are clearly private schools, owned and operated by private entities. Nevertheless, they get public tax money but have virtually no public record accountability of what they do with the tax money they divert from genuine public schools.
There are many tactics used by many charter school operators to reap profit from their schools, even the so-called “non-profits”, such as private charter school boards paying exorbitant sums to lease building space for their school in buildings that are owned by corporations that are in turn owned or controlled by the charter school board members or are REIT investments that are part of a hedge fund’s portfolio. There are many other avenues of making a hidden profit from operating private charter schools.
In addition to the siphoning away of money from needy schools, reports from the NAACP and ACLU have revealed facts about just how charter schools are resegregating our nation’s schools, as well as discriminating racially and socioeconomically against American children of color; and, very detailed nationwide research by The Center for Civil Rights Remedies at UCLA shows in clear terms that private charter schools suspend extraordinary numbers of black students. Based on these and other findings of racial discrimination in charter schools, the NAACP Board of Directors has passed a resolution calling for a moratorium on charter school expansion and for the strengthening of oversight in governance and practice.
Therefore, in order to assure that tax dollars are being spent wisely and that there is no racism in charter schools, charter schools should minimally (1) be required by law to be governed by school boards elected by the voters so that the charter schools are accountable to the public; (2) be a subdivision of a publicly-elected governmental body; (3) be required to file the same detailed public-domain audited annual financial reports under penalty of perjury that genuine public schools file; and, (4) be required to operate so that anything a charter school buys with the public’s money should be the public’s property.
Those aren’t unreasonable requirements. In fact, they are common sense to taxpayers and to anyone who seeks to assure that America’s children — especially her neediest children — are optimally benefiting from public tax dollars intended for their education. But, after the internal scams of charter schools become exposed to taxpayers through routine public reporting, the charter school industry will dry up and disappear, and the money that the charter school industry has been draining away from America’s neediest children will again flow to those in need.
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Follow Defend Public Education Now! on Facebook. We will be collecting signatures for an initiative to end public funding of charter schools in California. This same initiative did not qualify for the 2016 election partly because it was opposed by the California Teachers Association and the California Federation of Teachers which support charter schools and hope to make them “accountable,” through the legislative process.
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