Archives for category: Charter Schools

During the Clinton administration, Congress enacted a program called EB-5, which promised green cards to foreign investors who put their money into job-creating projects. One of those designated projects for foreign investors was charter schools. Give a lot of money, invest in charter school construction, get a green card.

The middle-men quickly figured out how to make this exchange pay off in profits.

Example: a charter school in North Carolina that won $3 million from foreign investors (six green cards), but has accumulated staggering debt.

The Center for Immigration Studies tells this sordid tale:

We have suggested in the past that the combination of the loosely run charter school movement with the loosely managed EB-5 immigrant investor program shows every sign of being a disaster for everyone involved(students, teachers, and taxpayers) — except for the middlemen.

They usually do just fine, thank you.

We have been following, among others, the case of one specific charter school in the suburbs of Charlotte, N.C., where until recently the state government has been, at the very least, more lax than most states in its supervision of charter schools.

This is a school in which six (probably Chinese) aliens have invested $500,000 each in the hopes of getting a family-sized set of green cards through the Homeland Security-managed EB-5 program. It is the Lakeside Preparatory Academy in Cornelius, N.C., sometimes known as the Lakeside Charter Academy, and as Thunderbird Preparatory Academy, Inc.

Financial Background. The struggling school opened a few years ago with four financial handicaps:

  • As we recorded in some detail, the campus had been sold, and resold and resold, apparently never at arms’ length, among Utah-based firms, some with the same postal address, so that several middlemen made major profits as its paper value moved up from $1.3 million to $9.5 million — despite a real estate assessment, for tax purposes, of $3.3 million (there was also a couple of million dollars worth of remodeling done during this time);
  • Somewhere along the way, the campus’ landlords collected $3 million from the alien investors which helped underwrite the aforementioned profits;
  • There was a falling-out among the middlemen that resulted in the school accepting a $450,000 judgment against it, a sum it had to borrow; and
  • Much of this debt remains, and is subject to a 20 percent interest rate (public school debt rarely exceeds 2 percent or 3 percent).

Bear in mind that the campus is owned by a for-profit entity in Utah, which had the advantage of the EB-5 funding; the school itself, though apparently controlled by the landlord, is a non-profit entity, and receives tax moneys for the education it provides.

In this dismal setting, a recent audit found that the school lost $103,875 in the 2017-2018 school year, and then a loss of $292,463 in the more recent 2018-2019 school year. The most recent loss occurred while the school reported a gross income of $983,091, down from a gross of $1,252,807 the prior year. So the gross was falling and the loss rising. At the end of the last school year, the cumulative loss was $363,471.

The Prospect of Bankruptcy. If one reads the audit carefully — what follows is not stressed anywhere — one finds that during the most recent school year the school paid the Utah landlords only some $23,000 in rent, and that in its current year it is obligated to pay 25 percent of its gross or, if the experience of the most recent year is to continue, $246,522, or about $223,000 more in rent than the previous year, which, if income and expenses remain the same, would suggest a loss in the current year of well over $500,000.

This would mean that the school went from about $100,000 in losses, to about $300,000 in losses the most recent school year, to more than $500,000 in losses for the current year.

Given those prospects, how in the world will the EB-5 investors get their money back?

The True Numbers. What we have reported above reflects the most recent audit by Rives & Associates, a North Carolina CPA firm. Local critics of the audit say that even these grim numbers do not reflect the dire state of the school.

We have a copy of an invoice, for example, that shows that the non-profit school owed the for-profit landlord (Lakeside Charter Holdings LLC) $1,720,503 at the end of the 2018-2019 school year; the date that debt is due is not shown, this debt is about double the school’s entire income for that year, and it apparently is not recorded in this audit. What we do see, on p. 14 of the audit is this, perhaps Delphic, statement: “Some liabilities, including bonds payable and accrued interest, are not due and payable in the current period and therefore are not reported in the funds.”

So, discounting a bit of auditing sleight of hand, the true debt of the school — with about 100 pupils — is well over $2 million!

It may well be in the interest of the landlord, and of the EB-5 middlemen, to seek to hide the true level of the school’s debt.

With all this in mind, EB-5 investors should look carefully at the proposed investments, and they should look at least twice if a charter school is involved.

The EB-5 program calls for 10 new jobs to be created by each $500,000 investment; since charter schools do not create jobs (they just take them away from the public schools), it is hard to agree with the underlying DHS decision to accept any charter school investment as appropriate in the EB-5 program.

One can only hope that the taxpayers will not be forced to bail out this little school.

In this post, Peter Greene reviews Edspeak and Doubletalk, the glossary co-written by me and Nancy Bailey.

This is the book you need, the scorecard, to identify the players in the fast-moving world of reform propaganda and over-hyped programs.

This resulting book, Edspeak and Doubletalk: A Glossary to Decipher Hypocrisy and Save Public Schooling, is exceptionally useful as a quick-reference resource. If you are a regular reader of this or other education blogs, you know that there is a forest of acronyms, a Grand Canyon’s worth of program names and purposes, and enough different edu-focused organizations to pave a road to the moon and back. This book makes for a quick and easy reference for it all, and more. Chapters are organized by general topic, such as Charter Schools and Choice, English Language Learners, Technology, and Separation of Church and State. There are guides to the various players, both in the chapter on Groups Fighting Corporate “Reform” and School Reform Groups and Terms, or “Money Talks.”

Greene writes:
The book comes with an on-line supplement–an e-book– and the promise of online updates to come. It’s enlightening to browse the book– I’ve already encountered many terms and programs and policies that I had never heard of before (Paideia Program, anyone?)– but I’ve also already used it as a substitute for my usual research assistant (Dr. Google) to look up a couple of terms and organizations. 
 
Explanations are short, clear, and to the point, which is half the battle, since eduspeak relies on a cloud of smoke and fuzz to obscure what’s really going on. Well, Bailey and Ravitch know what’s really going on in debates that have become “highly politicized.” This book will be useful to the general reader, but I’d recommend it for every teacher. Keep a copy in your desk drawer and every time a communique comes across your desk that makes you think, “What the heck is this? Who are these people anyway, and what the heck are they talking about?” just pull out your copy and start translating. 

Stuart Egan is an National Board Certified Teacher in North Carolina. He writes here about the horrible policies imposed on public schools in North Carolina since Tea Party Republicans took over the state’s General Assembly.

North Carolina was once considered the most progressive state in the South, for its dedication to improving public schools and honoring fine teachers. It had the highest proportion of National Board Certified teachers in the nation.

But then the Tea Party arrived in 2010 with an ALEC agenda of disruption and destruction.

Egan writes:

When the GOP won control of both houses in the North Carolina General Assembly in the elections of 2010, it was the first time that the Republicans had that sort of power since 1896. Add to that the election of Pat McCrory as governor in 2012, and the GOP has been able to run through multiple pieces of legislation that have literally changed a once progressive state into one of regression. From the Voter ID law to HB2 to fast tracking fracking to neglecting coal ash pools, the powers that-now-be have furthered an agenda that has simply been exclusionary, discriminatory, and narrow-minded.

And nowhere is that more evident than the treatment of public education.

Make no mistake. The GOP-led General Assembly has been using a deliberate playbook that other states have seen implemented in various ways. Look at Ohio and New Orleans and their for-profit charter school implementation. Look at New York State and the Opt-Out Movement against standardized testing.  Look at Florida and its Jeb Bush school grading system. In fact, look anywhere in the country and you will see a variety of “reform” movements that are not really meant to “reform” public schools, but rather re-form public schools in an image of a profit making enterprise that excludes the very students, teachers, and communities that rely on the public schools to help as the Rev. William Barber would say “create the public.”

North Carolina’s situation may be no different than what other states are experiencing, but how our politicians have proceeded in their attempt to dismantle public education is worth exploring.

Specifically, the last nine-year period in North Carolina has been a calculated attempt at undermining public schools with over twenty different actions that have been deliberately crafted and executed along three different fronts: actions against teachers, actions against public schools, and actions to deceive the public.

Read on to learn about the calculated and vicious attack on public schools and their teachers. This is a record of shame that undermines the public good.

Nancy Bailey is an experienced classroom teacher who is now retired. She and I co-authored a glossary to explain the duplicity of today’s phony school “reforms,” called Edspeak and Doublespeak. We discovered that we shared the same disdain for hypocrisy and hype.

Nancy posted a letter here by a teacher in a suburban school about how corporate reform is ruining education in her district.

Here is an excerpt from her essay.

Who remembers when elementary age children’s schedules included daily periods of recess, English, social studies, science & math, with a rotation of daily enriching specials, such as art, music, gym, library, etc.?

Who remembers when change was slow and steady in school districts, because they knew children needed stability and predictability?

Who remembers when there were no charter schools siphoning public school money away from public schools?

Who remembers when public schools were a valued public service for the greater good of the country?

Who remembers school before corporate education reform? Not sure what that is?

She goes on to e plain how the misguided and failed ideas of “corporate reform” have changed schools for the worse, even on the best districts.

The ever-present theme of corporate reform is DISRUPTION. Not better education: disruption. That’s why in my new book SLAYING GOLIATH, I refer to the faux reformers as DISRUPTERS. I don’t allow them to corrupt and appropriate the honorable term “reform” or to call themselves “reformers.” They are not. They are DISRUPTERS.

Earlier this year, LAUSD board member Scott Schmerelson revealed that 82% of the charter schools in Los Angeles have empty seats (no waiting lists).

Yet because of California’s charter-friendly environment, the privately managed schools continue to open.

A report in 2017 found that charters in Los Angeles are proliferating where they are not needed. 

The report points out that traditional school districts can’t build new schools when real or potential enrollment fails to justify expansion. But those rules don’t apply to charter schools, which can open anywhere and qualify for state funding or subsidies to build or lease facilities. The report says public funds helped open and sustain at least 450 charters in areas with plenty of existing classroom space.

“Paying for more schools than are needed wastes taxpayer dollars,” the report says. “Furthermore, an oversupply of schools serves to undermine the viability of any individual school.”

The latter argument has been made repeatedly by L.A. Unified officials, who say that rapid and widespread charter growth is one of several factors threatening the solvency of the nation’s second-largest school system.

The report’s lead researcher, Gordon Lafer, an associate professor at the University of Oregon’s Labor Education and Research Center, attributes the problem to a lack of clarity and vision in state policy.

Why do the Disrupters continue to insist that charter schools will “save poor kids from failing schools,” when the evidence continues to accumulate that this is simply not true.

According to the latest state data for Indiana, the graduation rate is about 87%, with variations among different groups of students.

For charter schools, the graduation rate is 40%. 

Indiana’s high school graduation rate dipped slightly in 2019, with the rate of students needing waivers from the state to earn a diploma, noticeably higher than previous years. 

The state graduation rate has hovered around 87 percent since 2016, but a higher rate of students needed a waiver to get a diploma in 2019 – students get one if they don’t pass their final state exams..

Schools graduated black, English Language Learner (ELL) and special education students at the lowest rates among student groups, at 78, 77 and 71 percent, respectively.

State data also shows non-public and traditional public school graduation rates landed at or above 90 percent for all students. Meanwhile, charter schools graduated students at a rate of 40.2 percent. 

This is an astonishing graduation rate gap between public schools and charter schools.

Who will save poor kids from failing charter schools?

Former superintendent Tom Dunn wrote a blistering critique of federal and state interventions into education that were lies, all lies.

And the promises and lies continue despite the failure of all the previous promises.

He writes:

As a former school superintendent, one of my most important, difficult, and frustrating responsibilities was trying to stay abreast of state and federal laws governing education. It was during this time that I had my eyes opened to how politics at the state and federal level really works. Suffice it to say that what I learned was disturbing.

First of all, to this day, the sheer number of proposed and/or passed bills makes the task of staying current nearly impossible. I imagine this is a political strategy meant to keep people as confused and overwhelmed as possible. The number of laws that made no sense and were sold to the public with misinformation and lies was staggering.

I felt perpetually conflicted about being forced to implement mandates that were, frankly, bad for kids. The irony is how often the very politicians who denounce bullying use their power to beat adults into submission with their ill-conceived laws. In education, they do this through threats of financial penalty against districts that dare disobey them, by threatening the professional licensure of educators who don’t do as they are told, and/or through character assassination of those who dare question them.

For at least three decades, politicians have claimed their goal has been to close the achievement gap between children who are successful in school and those who are not, and, by their own admission, their laws haven’t worked. They have failed while wasting billions of our tax dollars.

In the early 1990’s, politicians told us that if they could force all schools to follow the same academic standards, the achievement gap would be eliminated. But, the gap still exists.

Similarly, politicians promised us that forcing kids to take state approved tests, with schools, teachers, and principals being “held accountable” for their students’ performance, the achievement gap would be eliminated. But, the gap still exists.

The public was also assured that if laws were enacted “guaranteeing” that every child must achieve a politically determined level of achievement, all children would be successful. But, the gap still exists.

They lied, because none of these factors are primarily responsible for the gap.

One of their most egregious lies has been that the lack of competition in public education has been the culprit. People pushing this narrative actually pretended as if competition didn’t already exist. But, of course, it did through private and home school options, not to mention other opportunities, such as boarding schools. But, that fact interfered with their narrative, so they ignored it.

We were told that just a little more competition would generate new, more successful learning environments in which kids who were failing could flourish. It would also, we were assured, force the public schools to improve.

Early on, this expansion of competition was in the form of charter schools. Politicians told us kids deserved them, because they would no longer be “trapped” in poor public schools. Of course, they failed to mention that many of these charter schools were owned by large campaign contributors who were becoming quite wealthy on the backs of our neediest kids.

These same politicians remained strangely silent when the test data that they worship clearly showed that kids were often leaving higher performing public schools to attend lower performing charter schools. In other words, what they said would happen wasn’t happening.

But, ignoring that fact, politicians continued to expand school choice options to allow parents to use tax dollars to attend private schools. This was done through the Education Choice Scholarship (EdChoice) Program. The Ohio Department of Education web site claims that EdChoice “provides students from underperforming public schools the opportunity to attend participating private schools.”

The problem with this justification is that it isn’t true. The criteria for “underperforming” is written in such a way that even the highest performing public schools can be defined as such. In other words, the law allows parents to use tax dollars to fund their children’s private school education while “escaping” very high performing schools. This exact scenario has occurred in one of the top scoring school districts in the state, the Solon Schools.

At last, in Ohio, a fearless truth-teller, fed up with lies and empty promises.

Carol Burris, executive director of the Network for Public Education, writes here about Superintendent Joe Roy, a champion for students and public schools. I add him now to the honor roll of the blog.

Superintendent Joe Roy is a fearless fighter for better opportunities for the students that attend his small city school district of Bethlehem, Pennsylvania.  His district is diverse, and about 60% receive free or reduced price lunch.
 
In 2016, he was the Pennsylvania Superintendent of the Year. This is what he said when honored, “I’m one person out of 2,000 people in the district who do great work. So many people contribute, and it’s nice to have the recognition, but it shouldn’t be one person.”  That is who Joe Roy is.
 
Two years ago, I spoke with Joe Roy who told me how his district is being drained of funding by charter schools and cyber charters. I was shocked by how much they cost. You can read about our conversation and what I learned here.
 
Now Joe is fighting side by side with other superintendents of Pennsylvania city districts whose finances are becoming unsustainable due to charter school drain. Joe therefore has become a target of the charter lobby. At a public meeting he said the following.
 

“During the question-and-answer portion of the news conference, a reporter asked Roy why parents choose charter schools. The superintendent listed a variety of reasons like academic programs, transportation — for some parents the limited busing to the district’s neighborhood schools is a turn off — and uniforms. The longer school day at some charters paired with the bus ride can mean real child-care savings for families, Roy said.

And some parents send their children to charter schools “to avoid having their kids be with kids coming from poverty or kids with skin that doesn’t look like theirs,” Roy said.”

What Joe Roy said, which anyone who has ever worked in schools knows, is that some parents engage in  “white flight.”  They do so through curriculum tracking or leaving a district for a private or charter school. 
 
The charter lobby of Pennsylvania was outraged! He is calling white parents who choose a charter school “racists”, they claimed. They called for a public apology. They called for his resignation. They did what many charter proponents have been doing lately since pushback against charters has begun–they twisted a statement and then bullied their target.
 
But Joe Roy works for a good board elected by the people of Bethlehem. This was their response:
 
“This board, all nine publicly elected members, support Dr. Roy and echo his comments,” board President Michael Faccinetto said. “We will not back down in this fight for charter reform, and we will not ask Dr. Roy to back down or be silenced because a few unelected lobbyists disagree with the facts.”
 
You can read the full story here
 
Joe Roy is a hero. He does not hate charter schools. But he hates what the 30 million dollars his district must handover to charter schools is doing to his students and taxpayers. He is seeing neighboring districts fall into real financial crisis. He believes in public education and so does his Board of Education.
 
Hooray for the leadership of Bethlehem for speaking the truth to the powerful charter lobby!

Liat Olenick was a charter school teacher. Fatima Geidi was a parent of a charter student.

They write in a joint article that proposals by Bernie Sanders and Elizabeth Warren should not be controversial. Charter advocates have reacted fiercely against any effort to regulate the privately-run schools. But, say the authors, charters will improve if they are both accountable and transparent, as Sanders and Warren propose.

They write:

 

As a former charter school parent and a former charter school teacher, we support these proposals – and we believe, that if implemented both at the federal level and with a similar approach at the state level, this agenda would actually improve charter schools while also limiting some of the harm they have done to district public schools.

First, a little about our experiences, which are, sadly, far from unique. 

I, Liat, spent my first year teaching at a Brooklyn charter school that was started by non-educators and suffered from extreme turnover in administrators and staff. We had six principals over the course of the first year, and ten teachers either quit or were fired. We also lost special education students because our school wouldn’t or couldn’t provide the services they needed. Instead, they were sent to nearby public schools. Now that I work in a public school in District 14, we experience the reverse process — my school has no choice but to accept the many students pushed out by charter schools when they don’t conform to their rigid academic or behavioral expectations.

I, Fatima, am a single mother whose son was suspended over 30 times by his charter school, Upper West Success Academy, starting in first grade, including for very minor issues, such as walking up the stairs too slowly. He was also denied his mandated special education services, which worsened the situation. The school demanded that I pick him up so frequently in the middle of the day that I was forced to drop out of college myself. When I finally pulled him out of the school, his therapist told me he suffered from symptoms of post-traumatic stress. 

Then when my son and I were subsequently interviewed on the PBS Newshour about how he had been treated at the school, Success Academy officials at the network sent copies of his disciplinary files, full of trumped-up charges, to every education reporter they could find and posted it online. Eva Moskowitz, the Success Academy CEO, also recounted false stories about his behaviorin her published memoirs. 

Although the US Department of Education eventually found her and the school guilty of violating the federal student privacy law called FERPA more than three years after I filed my initial complaint, Success officials have refused to comply with the law and continue to retaliate in the same way against other parents who dare to speak out against the unfair treatment of their children by releasing their confidential files to reporters. Meanwhile, the New York State Education Department has confirmed that Success Academy has systematically failed to provide students with their mandated special education services, even after having been ordered to do so by hearing officers.

Since my son left Success Academy, he is slowly recovering, and is now doing better in high school, but it took him years to undo the damage he experienced. I have met many other parents whose children suffered similar or worse fates. Success Academy charters are currently facing five different federal education lawsuits for violating student rights, and yet are the fastest growing charter chain in the state of New York, having received more than $60 million in grants from the federal government since 2006 to aid in their expansion and replication.

John Thompson is a historian and a retired teacher, who blogs often, here and on other blogs. He has keen insight into what’s happening in Oklahoma.

He writes:

Since 2015, the Tulsa Public Schools have cut $22 million from its budget, even dipping into its reserve fund to balance the books. Now it must cut another $20 million.

Given the huge support for the TPS by local and national edu-philanthropists, patrons should ask why it faces such a crisis, even after the state has started to restore funding. Despite the assistance of the outcome-driven Billionaires Boys Club, the TPS has lost 5,000 students, especially to the suburbs and online charters. But that raises the question of why Chief for Change Superintendent Deborah Gist and her staff of Broad Academy administrators have produced such awful outcomes.

https://www.gkff.org/what-we-do/parent-engagement-early-education/prek-12-education/

After a series of community meeting, Gist recommended school closures designed to save $2 to 3 million. Gist also seeks $3 million in saving by increasing class sizes. Then, Gist proposed $13 to 14 million in cuts to district office administrators.

It’s great that most of the burden will be carried by the central office. But that raises the question why the district has such a well-funded administration.

Even though the Oklahoma press wouldn’t dare ask what the corporate reform-subsidized administration has accomplished, Tulsans should ask why the district in near the nation’s bottom in student performance from 3rd to 8th grades. Why does it have more emergency certified and inexperienced teachers than other districts after being awarded Gates Foundation “teacher quality” grants?

https://www.tulsaworld.com/news/local/education/tulsa-public-schools-patrons-weigh-in-on-million-budget-cut/article_fecdcb9d-f914-578c-913a-433ecb90d7b7.html

Participants in the recent community engagement process “were most willing to make budget reductions related to student transportation and bell times, teacher leadership opportunities, building utilization and district office services.” Perhaps as a repudiation of the Gates Foundation’s experiment, cutting teacher coaches was the recommendation that received the most votes. Tulsans were most protective of teacher pay, class sizes, and social-emotional learning and behavioral supports.

The fear is that closures and increased class sizes will result in more patrons leaving the district. Community participants also expressed concerns that closures will lead to more charter schools. The Tulsa World’s report on community meetings noted the worries of a parent, Wanda Coggburn:

Many shared Coggburn’s suspicion of a charter school taking over Jones or the other targeted elementary school buildings. But Gist said the needs of the six TPS-sponsored charter schools did not factor into the recommendation to close the schools.

The World also reported the fears of parents with disabilities. The parents of a child who has cerebral palsy and a developmental delay that causes behavioral issues say he was moved from a special education to a general education class against their wishes, and “they worry that adding more students would hinder his progress even further.”

Betty Casey of TulsaKids also describes the protests of parents whose deaf children attend Wright Elementary, which the superintendent wants to close. She talked with a mom who said of Wright:

She fears that it will be given to Collegiate Hall Academy, a charter school which currently shares space with Marshall Elementary. She wants her child to continue at Wright, not a charter school. She pointed out that Marshall has two gyms and a swimming pool currently not being used that could be put to use by public school students. Why not close College Bound Academy and put those students in Wright and Marshall? Closing a small charter school without a building would be much less disruptive.

https://www.tulsaworld.com/news/local/education/tulsa-s-jones-elementary-school-was-closed-once-before-and/article_2a08579f-2236-5bb8-b2a5-feb9db156682.html
https://www.tulsakids.com/where-does-tps-find-20-million/

Why would patrons have such fears? Maybe it’s because Gist responded to a question about a closed building saying “she’s confident the growing TPS-sponsored charter schools are interested in the potential space and are closely watching this process.”

I previously said that the traditional press hasn’t dared to investigate the results of corporate reform in Tulsa. However, Ms. Casey’s TulsaKids is a parents’ magazine that asks the questions that journalists have ducked. She recently wrote:

Why is it that when public schools are starved, and resources are stretched to the breaking point, that TPS is supporting a parallel school system of charters that drain more resources from the public schools? … The savings in closing schools is a drop in the bucket, but once the school is closed, it’s very difficult to go backward. Didn’t the superintendent say she was going to try to draw families back to TPS? Where will those returning families put their children? If Wright becomes a College Bound Charter, the families who wish to remain at a neighborhood school will have only one “choice” of a charter school.

Casey further explains:

I’m glad that Superintendent Gist has vowed to interview all the families leaving TPS. But, it seems a little late to wonder why people are leaving as they walk out the door. Why not work to create public schools that families love right now? …

Maybe it’s time to look at the “reforms” being implemented by the superintendent, and prior to that, Dr. Ballard’s acceptance of Gate’s Foundation money (MAP testing), and admit that those changes aren’t working for our kids, and families are leaving as a result.

https://www.tulsakids.com/where-does-tps-find-20-million/