Search results for: "k12"

California Attorney General Kamala Harris reached a settlement of $168.6 million with mega-virtual charter K12 Inc. This settlement reflects the good investigative reporting of Jessica Calefati of the San Jose Mercury News, whose investigative reporting led to Harris’ review of K12’s finances and practices.

There are two more investigations underway: one by the California State Department of Education and the other by the State Controller. Now that virtual charters have been discredited by studies and thrown under the bus by the rest of the charter industry, this aspect of the industry may finally be on the skids.

“California Attorney General Kamala Harris announced Friday the state Department of Justice has reached a $168.5 million settlement with for-profit online charter school operator K12 Inc. over an array of alleged violations of false claims, false advertising and unfair competition laws.

“The settlement comes almost three months after the Bay Area News Group published a two-part investigative series on the publicly-traded Virginia company, which runs a network of profitable but low-performing online charter schools serving about 15,000 students across the state.

“Harris’ office found that K12 and the “virtual” academies it operates across the state used deceptive advertising to mislead parents about students’ academic progress, parent satisfaction and their graduates’ eligibility for University of California and California State University admission.

“The Attorney General’s office also found that K12 and its affiliated schools collected more state funding from the California Department of Education than they were entitled to by submitting inflated student attendance data and that the company improperly coerced the non-profit schools it operates to sign unfavorable contracts that put them in a deep financial hole.”

Politico reports that K12 Inc. disagrees with the characterization of the settlement:

– Speaking of charter schools, California Attorney General Kamala Harris said Friday that virtual charter school operator K12 Inc. will pay $168.5 million to settle [] alleged violations of the state’s false claims, false advertising and unfair competition laws: . But K12 pushed back on the settlement amount – preferring not to include $160 million in financial relief that Harris’ office says will be provided to certain schools that K12 manages. Instead, K12 CEO Stuart Udell said the company will only pay $2.5 million to settle the case, and another $6 million for Harris’ investigative costs. Udell said his company admitted no wrongdoing. “The Attorney General’s claim of $168.5 million in today’s announcement is flat wrong,” Udell said. “Despite our full cooperation throughout the process, the Office of the Attorney General grossly mischaracterized the value of the settlement, just as it did with regard to the issues it investigated.”

– The settlement is another black eye for the virtual charter industry, which just last month had three reform-minded groups calling for it to be improved, or else problems such as low graduation rates will “overshadow the positive impacts this model currently has on some students.” [] More from Kimberly Hefling:

Jessica Calefati wrote a blistering series about Michael Milken’s K12 Inc. virtual charter school in California (called California Virtual Academy or CAVA) a few weeks ago. The series caused enough of a stir to persuade State Superintendent Tom Torklakson to order a state audit of CAVA.

Calefati reported that less than half the students at CAVA graduate, and none is qualified to attend a California public university.

The virtual charter industry is noted for high profits and poor performance. Student attrition is high, test scores and graduation rates are low. But profits are excellent, because the “school” receives full state tuition but has none of the expenses of a brick and mortar school. No grounds, no transportation, no custodian, no food services, no library, no support staff, no athletics. And classes that range from 40-more than 100 in number. As Calefati reported in the original series, students may get credit for attendance if they are online only one minute a day. The latest CREDO study found that for every 180 days enrolled in a virtual charter, students lose 180 days of instruction in math and 72 in reading. This is a lose-lose.

It is heartening to see state officials taking action to curb the fraud that runs rampant through its charter industry, unsupervised, unregulated, and unchecked.

Calefati writes:

In a rare move, California’s top education official has enlisted the state’s highest-ranking accountant to conduct a sweeping audit of California Virtual Academies, a profitable but low-performing network of online charter schools that enrolls about 15,000 students across the state.

The audit is the first that Superintendent for Public Instruction Tom Torlakson has asked the state controller’s Office to conduct since he took office in 2011. The request comes two months after this newspaper published an investigative series on K12 Inc., the publicly traded Virginia firm that operates the schools and reaps tens of millions of dollars annually in state funding.

In a statement Thursday, Torlakson said he has a duty to ensure that public money isn’t being squandered and sought the probe into the California Virtual Academies because of “serious questions raised about a number of their practices.” He said the audit would examine the relationship between the schools and the company and the “validity” of attendance, enrollment, dropout and graduation rates reported by the academies to the state.

This isn’t the first time the company has come under fire in recent weeks.

Torlakson’s request follows lawmakers’ calls last month for the state auditor to examine for-profit charter schools operations and Assemblywoman Susan Bonilla’s introduction earlier this month of legislation that would prohibit online charters from hiring for-profit companies like K12 for management or instructional services. The company is also being probed by Attorney General Kamala Harris, who launched an investigation of online charter schools last fall.

If Controller Betty Yee finds evidence of gross financial mismanagement, illegal or improper use of public money, a disregard for sound educational practices or repeated failure to improve student test scores the state Board of Education, may — based on a recommendation from Torlakson — vote to revoke the schools’ charters.

The virtual charter chain K12, Inc., held its stockholder meeting and faced a double whammy. Investors complained about the schools’ terrible academic results and voted down executive pay raises.


Meanwhile, teachers from the online chain founded by Michael and Lowell Milken picketed outside.


“The vote was another sign of discontent among shareholders of the controversial company K12 Inc., with governance advisory firm Glass Lewis & Co. citing a “substantial disconnect between compensation and performance results” in its recommendation that shareholders vote against the pay proposal.


“K12, which has made a business for itself out of operating publicly funded online charter schools across the country, is at its lowest stock price in five years, down 75% from a high in September of 2013. In the past few months, it has faced an investigation by California’s attorney general and an onslaught of criticism from the rest of the education world, which has largely turned against online schools and their operators because of their students’ poor performance.


“Glass Lewis gave the company an “F” rating for how it paid its executives compared to peers: K12’s CEO, Nathaniel Davis, was paid $5.33 million in 2015; its chief financial officer was paid $3.6 million.”



The latest report from the Stanford-based CREDO research group found that online charters deliver a poor education. Students in online charters lose 42 days of reading in a year, and 180 days of instruction in math. Zilch. K12, Inc. is the largest of the online charter chains. It was founded by the Milken brothers, Michael and Lowell. It is listed on the New York Stock Exchange.



California Teachers Association/NEA December 14, 2015
1705 Murchison Drive
Burlingame, CA 94010

Contacts: Claudia Briggs at 916-296-4087 or Mike Myslinski at 408-921-5769.

Dec. 15 Media Conference Call to Discuss Educators’
Struggle in One of Nation’s Largest Online Charter Schools to Address Major Issues Impacting 15,000 Students
California Educators to Deliver Report Card of Straight Fs
at Dec. 16 Washington, D.C. Shareholders Meeting


***Tuesday, December 15, 2015***


BURLINGAME – More than 750 educators at the Simi Valley-based California Virtual Academies (CAVA) have been seeking a stronger voice in improving working conditions and student learning for 15,000 students. The recent Public Employment Relations Board decision declaring the California Teachers Association as the exclusive bargaining agent comes at a critical time and promises to provide momentum for the teachers’ on-going efforts to make their online school more responsive to the needs of their students.

Concerned CAVA teachers have been calling for improvements at their school for years. In March 2015 they shared their experiences in an in-depth study of CAVA released by the “In the Public Interest” group that called for better oversight of the school. In June they filed complaints with school districts that authorized CAVA charters throughout California in an effort to protect students. Recently, new research from Stanford University and the University of Washington came out reinforcing many of the concerns CAVA teachers have voiced.


WHO: Educators at California’s largest virtual charter school will discuss in a Tuesday, Dec. 15, media conference call why their colleagues plan to deliver a report card with Straight Fs the next day at the annual shareholders meeting in Washington, D.C. of the controversial Virginia-based K12 Inc., a for-profit education company providing management services and curriculum to CAVA.


WHEN: Conference call is at 1 p.m. PST/ 4 p.m. EST on Tuesday, Dec. 15.


SPEAKERS: Eric Heins, president of the California Teachers Association; teachers working to improve California Virtual Academies.


Media should call toll-free 1-888-505-4368 to get on the teleconference. The password code is 4500878.


WASHINGTON, D.C. EVENT: California CAVA teachers will be educating shareholders of K12 Inc. at their annual meeting and will be joined by other concerned supporters. The event starts at 9:30 a.m. EST Wednesday, Dec. 16, at the law offices of Latham & Watkins LLP, 555 Eleventh Street, NW, Suite 1000, Washington, D.C., 20004.

While teachers across the nation have salaries lower than those of other professions and often need to take a second job to make ends meet, the executives at Michael Milken’s cyber charter chain K12, Inc. are faring very well indeed.

Their schools have high student turnover and low graduation rates, but it is a very profitable business.

The chairman of the board and CEO made $4.2 million last year.

The former CEO made $4 million.

The executive vice-president and chief financial officer made $824,000.

The president and chief operating officer made $5.5 million.

The executive Vice President, secretary, and chief counsel made $1.1 million.

The executive Vice President and manager of school services made $854,000.

Numbers are rounded.

Remember: It is all about the kids.

K12 has a well-established record as a highly profitable virtual charter school chain with low graduation rates, high turnover, and low test scores. The NCAA removed accreditation from a dozen K12 schools because of poor academics. So why is there a K12 in California?


Here is a report from Donald Cohen of “In the Public Interest”:


It says:


In every year since it began graduating students, except 2013, CAVA has had more dropouts than graduates. Its academic growth was negative for most of its history and it did not keep up with other demographically similar schools after 2005. Its Academic Performance Index scores consistently ranked poorly against oth- er demographically similar schools and the state as a whole….


Each CAVA location currently re- ceives full, per-pupil public education funding.18 Students attend school from home computers. The majority of the teachers we interviewed reported that their students are eligible to be counted as having attended with as little as one minute of log in time each day.


CAVA had an average graduation rate of 36%, compared to the state graduation rate for the same period of 78%.


Donald Cohen wrote the following in his newsletter about CAVA:



You’re receiving our newsletter a little later than usual this week. That’s because today I’m in California’s capitol to speak about ITPI’s extensive research into the largest provider of online K-12 education in California known as CAVA (California Virtual Academies) and I want to share our findings with you, too. Funded by taxpayers with public education dollars, CAVA enrolls 14,497 students in kindergarten through 12th grade at 11 virtual schools. The schools are managed by a subsidiary of K12 Inc., a publicly traded education company that produced $55 million in profits last year.


Our report shows that students at CAVA are at risk of low-quality educational outcomes, and some are falling through the cracks entirely, in a poorly resourced and troubled educational environment. The numbers show lower graduation rates and higher dropout rates, as well as lower academic performance and rankings, than in traditional schools in the state with similar demographics. Teachers we interviewed reported technological problems, limited availability of textbooks, and an environment that makes it difficult for students to thrive. The books show that in 2011-2012, the average CAVA teacher salary was close to half of average teacher pay in the state while K12 Inc. paid almost $11 million total to its top six executives.


CAVA’s problems in California are not isolated incidents. K12 Inc. managed schools have a track record of poor outcomes, including struggling academic performance and low graduation rates, in multiple states including Illinois, Colorado and Pennsylvania. K12’s reputation and CAVA’s extensive issues add up to a case study on the need for better oversight to ensure children are receiving a quality education.


It’s too easy for kids to fall through the cracks in CAVA’s current online schooling system so we are calling on California to immediately increase oversight of online education. Despite the state having passed some of the most forward-thinking regulations around virtual learning, leaders in Sacramento must revisit what the state can do to ensure quality education for students no matter what kind of institution they are enrolled in. It is their responsibility to ensure the state is spending public education dollars efficiently and wisely.



Donald Cohen
Executive Director
In The Public Interest

John Hechinger, one of the narion’s top investigative reporters, here presents a balanced but nonetheless devastating overview of K12 Inc., the for-profit virtual charter chain listed on the Néw York Stock Exchange.

K12 is the biggest purveyor of online homeschooling, paid for with public funds drawn away from traditional public schools.

This approach may be effective for some students –students training to be athletes or performers, students with illnesses–but K12 reaches out to recruit as many as it can.

“Plagued by subpar test scores, the largest operator of online public schools in the U.S. has lost management contracts or been threatened with school shutdowns in five states this year. The National Collegiate Athletic Association ruled in April that students can no longer count credits from 24 K12 high schools toward athletic scholarships.
While the company says its investments in academic quality are starting to pay off, once-soaring enrollment at the more than 60 public schools it manages has dropped almost 5 percent. Targeted by short sellers, who benefit from a company’s decline, K12 shares have tumbled by two-thirds since reaching a near-record high in Septeber 2013…..”

“Of the full-time online schools assigned ratings by their states, only one-third were considered academically acceptable in 2012-2013, the National Education Policy Center at the University of Colorado reported this year. The percentage of K12 students achieving proficiency on state math and reading tests is generally below state averages, according to the company’s 2014 academic report.

“Ohio Virtual Academy, which accounts for 10 percent of K12’s annual revenue, received failing grades on a state report card last year for student test-score progress and graduation rates. Only 37 percent of its ninth graders receive diplomas within four years.”

Several online charters have cancelled their contracts with K12. Tennessee may soon cancel its Tennessee Virtual Academy.

“In Tennessee, education commissioner Kevin Huffman is moving to close a K12-managed school unless it can improve results by the end of this school year. Tennessee Virtual Academy has test results “in the bottom of the bottom tier” and is an “abject failure” in improving student outcomes, Huffman said in a telephone interview.”

Having created a string of low-performing but profitable virtual charter schools, K12 Inc. has announced that it is entering the lucrative preschool market.

This is a new venture for the corporation founded by the Milken brothers. Equity investor Whitney Tilson warned other investors last year against K12, which he compared to the subprime mortgage industry, but the company keeps coming up with new ideas to put children in front of computers and absorb public dollars.

Here is the latest bad news for American children:

K12 Inc. Launches EmbarK12 Comprehensive, a Kindergarten-Readiness Product; New, Award-Winning Program Gets Children Ages 3 to 5 Ready for Kindergarten

New product aims to fulfill the need for high-quality early learning programs to prepare children for kindergarten and is being made available to consumers and school districts for the first time.

An early learning advantage we can’t afford to miss…

Herndon, VA (PRWEB) July 24, 2013

Industry leader K12 Inc. [NYSE: LRN], is fulfilling the need for high-quality early learning programs through the release of a product aimed at preparing children for kindergarten: EmbarK12 TM Comprehensive. The innovative, research-based, award-winning kindergarten-readiness product has already been introduced in some of the leading national pre-K learning centers. The curriculum is now being made available to consumers and school districts for the first time.

EmbarK12 is an extension of K12 Inc.’s [NYSE: LRN] commitment to offer the most engaging and innovative products and programs to inspire young minds and provide high-caliber, individualized learning options. Development was spearheaded by K12’s Dr. Melissa King, who has more than 35 years of professional experience as an educator, in conjunction with a highly skilled team of developers and designers.

EmbarK12 Comprehensive PROGRAM DESCRIPTION

A truly comprehensive, easy-to-use, all-in-one pre-K program offering both online and offline activities with rich multimedia and hands-on, minds-on engagement for children who are 3 to 5 years of age.

The customizable lesson plans can be tailored to child-specific skills and interests and include more than 450 online activities and more than 750 hands-on activities. There are 18 thematic units, each with intuitive, related content and instructional experiences for language arts, math, science, social studies, art, and music. Examples of themes include: “Family and Friends,” “My Five Senses” and “Looking at Animals.”

The program has already won multiple awards, including the Parents’ Choice Award, Association of Educational Publishers Golden Lamp Award Finalist and Association of Educational Publishers Distinguished Achievement Award.

Parents are encouraged to review “KINDERGARTEN: Is Your Child Ready?” and to play an active role in a highly individualized, early learning process.

Curriculum is aligned with state and national standards and with core principles of early childhood education established by the National Association for the Education of Young Children (NAEYC) and Core Knowledge Foundation.


“Whether your child is thriving in a neighborhood preschool or you’re juggling multiple things and have a youngster who is curious and open to learning in new and different ways at home, EmbarK12 is designed to meet you and your child where you are,” explains Dr. King. “Age 3 to 5 is such a precious time and opportunity. I think we all instinctively know this as parents. Having a program that makes the most of this important window of time is an early learning advantage we can’t afford to miss if we want our children to reach their true academic potential.”

“I’m excited about EmbarK12 because it offers the best content, the best instruction, the best materials and the best design. I’m sure parents will share my enthusiasm when they see how well EmbarK12 can prepare their children for kindergarten,” she added.

“There’s no question young children today are increasingly cyber savvy and engaging products developed with sound learning fundamentals can help prepare the next generation of young students to not just get off on the right foot, but to head into elementary school with a strong foundation and real learning momentum,” explained Dr. Margaret Jorgensen, K12’s Chief Academic Officer. “It could be game-changing for young students who deserve the brightest of futures.”

Many others in the education arena echo the importance of quality pre-K education. Educators across the U.S. have identified kindergarten-readiness as an educational priority, and even the President of the United States has made kindergarten-readiness a national issue. According to the U.S. Department of Education, there is a robust body of evidence and research demonstrating that high-quality, early learning programs help children arrive at kindergarten ready to succeed in school and in life.”

Larry Feinberg, who runs the Keystone State Education Coalition of public school advocates, offered the following summary of K12 Inc.’s Agora charter school in Pennsylvania:

Pennsylvania’s Agora Cyber Charter, managed by K12, Inc. never made adequate yearly progress under No Child Left Behind

· In 2006 its AYP status was Warning

· In 2007 its AYP status was School Improvement 1

· In 2008 its AYP status was School Improvement 2

· In 2008 its AYP status was Corrective Action 1

· In 2010 its AYP status was Corrective Action 2 (1st Year)

· In 2011 its AYP status was Corrective Action 2 (2nd Year)

· In 2012 its AYP status was Corrective Action 2 (3rd Year)

In 2013 (no more AYP) Agora’s Pennsylvania School Performance Profile score was 48.3 on a 100 point scale; Acting Sec’y of Education Carolyn Dumaresq has indicated that a score of 70 is considered passing.

In addition to never making AYP, Agora’s 2012 graduation rate was 45% while the Philly SD graduation rate was 57%.

School Choices: K12 Inc execs taking $2K per student in salary. 8 execs, 75K students, $21M in salaries. 20% of revenue in 8 pockets.

Morningstar Executive Compensation

K12 Inc. is a for-profit virtual charter school chain that trades on the New York Stock Exchange. It was founded by Michael Milken and Lloyd Milken. It is funded with taxpayer dollars. It advertises and recruits heavily to keep enrollment up. It has a high attrition rate.

Its cash-cow operation is the Ohio Virtual Academy. Look for significant lobbying in New Jersey, Illinois, Connecticut, Kentucky and New York, according to the investor conference call.

I don’t know about you, but I had a hard time reading this transcript. They might just as well have been discussing a corporation that sells tires, toothpaste, bundled mortgages, or manure. These guys are profiting from taxpayer dollars that are supposed. To pay for public schools, for bands, for nurses, for guidance counselors, for reduced class sizes, for libraries. They are taking money away from real instruction, real children, real schools. Have they no sense of shame? Would any of the investors on this call put their own children in a K12 virtual charter school? Bet not. Bet their kids are in really nice suburban schools or elite private schools.Not sitting in front of a computer and calling it a “school.” It’s not. It’s a business, and the kids it recruits don’t get an education.

NOTE: I just learned that I am allowed to quote only 400 words from the transcript, so accordingly, I will count 400 words and delete what remains.

RISK FACTORS (Page 33-48)

Page 42

“We generate significant revenues from two virtual public schools, and the termination, revocation, expiration or modification of our contracts with these virtual public schools could adversely affect our business, financial condition and results of operation.

“In fiscal year 2013, we derived approximately 11% and 14% of our revenues, respectively, from the Ohio Virtual Academy and the Agora Cyber Charter School in Pennsylvania. In aggregate, these schools accounted for approximately 25% of our total revenues. If our contracts with either of these virtual public schools are terminated, the charters to operate either of these schools are not renewed or are revoked, enrollments decline substantially, funding is reduced, or more restrictive legislation is enacted, our business, financial condition and results of operations could be adversely affected.

“Note at a k12, inc investor conference call on 10/9 the company addressed the loss of the management agreement for Agora Cyber Charter School in PA.

“The school will continue to use the k12, inc curriculum, but will self-manage.”

Here is the transcript of the investor conference call. Grab your vomit bag.

K12, Inc., 2015 Guidance/Update Call, Oct 09, 2014

Oct. 9, 2014 3:30 PM ET | About: K12 Inc. (LRN)

K12 Inc. (NYSE:LRN)

October 09, 2014 8:30 am ET


Mike Kraft – Vice President of Investor Relations

Nathaniel Alonzo Davis – Executive Chairman and Chief Executive Officer

James J. Rhyu – Chief Financial Officer and Executive Vice President

Timothy L. Murray – President and Chief Operating Officer

Jeffrey P. Meuler – Robert W. Baird & Co. Incorporated, Research Division
Corey Greendale – First Analysis Securities Corporation, Research Division
Jason P. Anderson – Stifel, Nicolaus & Company, Incorporated, Research Division
Trace A. Urdan – Wells Fargo Securities, LLC, Research Division
Sou Chien – BMO Capital Markets Canada


Greetings, and welcome to the K12 Inc. Guidance Conference Call for Fiscal Year 2015. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mike Kraft, Vice President of Finance. Please go ahead, sir.

Mike Kraft – Vice President of Investor Relations

Thank you, and good morning. Welcome to K12’s Fiscal Year 2015 Guidance Conference Call. Before we begin, I would like to remind you that in addition to historical information, certain comments made during this conference call may be considered forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and should be considered in conjunction with cautionary statements contained in our guidance release in the company’s periodic filings with the SEC.

Forward-looking statements involve risks and uncertainties that may cause actual performance or results to differ materially from those expressed or implied by such statements.

In addition, this conference call contains time-sensitive information that reflects management’s best analysis only as of the day of this live call. K12 does not undertake any obligation to publicly update or revise any forward-looking statements.

For further information concerning risks and uncertainties that could materially affect financial and operating performance and results, please refer to our reports filed with the SEC, including, without limitation, cautionary statements made in K12’s 2014 Annual Report on Form 10-K. These filings can be found on the Investor Relations section of our website at

This call is open to the public and is being webcast. The call will be available for replay on our website for 60 days.

With me on today’s call is Nate Davis, Chief Executive Officer and Chairman; Tim Murray, President and Chief Operating Officer; and James Rhyu, Chief Financial Officer. Following our prepared remarks, we will answer any questions you may have.
I would now like to turn the call over to Nate. Nate?

Nathaniel Alonzo Davis – Executive Chairman and Chief Executive Officer

Thank you, Mike. Good morning, everyone. Thanks for joining us on the call today. We wanted to provide you with an update on our fiscal year 2015 count date enrollment as well as a guidance for the first quarter and for the full year.

Today’s guidance is a reflection of the trends in the markets that I outlined during our fourth quarter earnings call. Specifically, we saw a couple of our charter schools deciding to self manage their online learning programs. We’re also seeing more traditional school districts offering their own full-time online programs, along with supplemental learning options and online summer courses.
Education is evolving for the better, and families today have more choices in choosing full-time or part time virtual programs for their child. We believe that overall demand for virtual options in education is increasing, and this is translated into stronger demand for our institutional group, Fuel Education or FuelEd, which provides content and curriculum to school districts as well as private and charter school operators. At the same time, these market dynamics have also created a challenge to enrolling students in our traditional managed programs. And to help you understand this transition, we’re providing new guidance on student enrollment and revenue to clearly outline how K12 is participating in the growth of online learning use in public school classrooms.

Student enrollment and revenue data will now be provided for Managed and Non-managed Programs. Managed Programs are where K12 provides substantially all of the administration and education program management for an online program. Non-managed Programs include schools where K12 is the primary provider of content and technology and we may even provide instruction, management or other educational services, but K12 is not providing primary administrative oversight for the virtual school program.
And as you can see from the data we provided in this morning’s release, the 4.7% reduction in student enrollment from managed schools reflects this new market dynamic. It also reflects the events in Tennessee, where the state imposed an arbitrary enrollment cap midway through the enrollment season; and in Colorado, where our school partner took longer than expected to finalize their charter and subsequently, the curriculum contract with K12. We believe that enrollment in these 2 states were impacted by over 4,000 students this season. Also, this year, K12, in collaboration with the school boards we serve, made a concerted effort to keep students enrolled only if they were truly engaged and ready to learn, which also affected Managed Program enrollments.

Our partners are serious about running high-quality charter schools, with students who realize this is hard work. And they want to succeed by putting in the work. And while this is slow to growth in the near term, it better matches students to our core curriculum strengths and improves our reputation as a firm who is serious about providing high-quality education.

Even with the market evolution that’s beginning to unfold, we continue to see strong demand in Managed Public Schools. This year, we saw solid growth in select markets, including Texas, Michigan, Florida and Georgia. And at some point, we believe states like New Jersey, Illinois, Connecticut, Kentucky and New York will become states that allow online charter schools, although these states could take quite some time before opening up.

We will also attempt to be one of the educational management organizations chosen in North Carolina as that market commences an online charter trial next year.

[NOTE: I deleted the remainder of the conference call to abide by the guidelines of the company that supplied the transcript. It was hard to know which words count towards the 400 permissible, like instructions, the operator’s comments, the names of participants, etc. I cut copiously.]