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Craig Harris: Charter Schools and Federal PPP Money: Part 2

By dianeravitch
March 22, 2022 //
5

Craig Harris of USA Today wrote a blockbuster three-part series about the charter schools that grabbed at least $1 billion in federal funds from the COVID Payroll Protection Program, passed in 2020 to help struggling small businesses stay alive and retain their employees. Today the second part was posted. Because charter schools are “technically small businesses,” about 1,000 of them applied for the forgivable loans. None of the charter schools lost revenue or laid off employees but they asked for the money anyway. Even the charter school lobbyist—the National Alliance for Public charter Schools—asked for a $680,000 loan, which was forgiven.

Harris writes in this second part about charters that knew it was wrong to ask for PPP funding when they had no need, and others did. (I can’t find the link: if any reader can, please add.)

He starts:

‘The ethical thing to do’: Why this small San Diego charter school passed on COVID PPP loans

Albert Einstein Academies, a small San Diego charter school chain, turned down a forgivable $3 million Paycheck Protection Program loan.

Story Highlights

  • Learn4Life, a charter chain, got a combined $32.7 million in PPP loans through 12 related firms.
  • California charter schools had six of the eight largest PPP loans in the U.S. among charters.
  • In Arizona, two prominent charter chains also turned down the money, saying they didn’t meet the requirements.

SAN DIEGO – The Albert Einstein Academies, which educate 1,450 students from kindergarten through eighth grade at two inner-city campuses here, could have used a forgivable loan from the federal Paycheck Protection Program.

Half of the middle school students and close to one-third of the elementary kids come from low-income homes and qualify for free or reduced-price lunches at the charter schools, its superintendent said.

But while the academies were eligible for up to $3 million in forgivable loans based on revenuesthat largely came from taxes, Superintendent David Sciarretta didn’t feel right about taking the money.

He said the loan program, started by Congress in March 2020 at the beginning of the pandemic, was intended to help financially struggling small businesses stay open and avoid laying off employees.

Charters are privately operated schools that are publicly funded.

We could have always used the money. But, growing up, my mom told me: ‘If there’s food on the table and there are other folks who are hungrier than you, then you need to let them eat because they have a greater need than you do.’

Sciarretta said Einstein, whose charter school campuses are minutes from downtown, didn’t suffer financially because California continued its pre-pandemic level of public school funding during the health crisis even if enrollment declined, giving some schools additional money.He said refraining from taking the loans was “the ethical thing to do.”

“We could have always used the money,” said Sciarretta, recently awarded the 2022 Hart Vision Award Winner for California Charter Leader of the Year. “But, growing up, my mom told me: ‘If there’s food on the table and there are other folks who are hungrier than you, then you need to let them eat because they have a greater need than you do.'”

Other schools took PPP loans

That wasn’t the view of at least 268 other California charter operators, who run some of the state’s largest and wealthiest publicly funded charter chains.

Those operators had at least $335 million forgiven, a USA TODAY investigation hasfound, the most of any state with charter schools. That’s about one-third of the $1 billion in loans obtained by more than 1,100 U.S. charter schools, which educate a fraction of the nation’s children and had the loans forgiven — even though most lost no money during the pandemic.

Several of those schools also employed more than 500 workers, the limit to qualify under the program, USA TODAY found.

Kathleen Hermsmeyer, superintendent of Springs Charter Schools in Temecula, said while California didn’t cut funding, it also did not increase it for charter schools like hers that specialize in at-home, remote or hybrid learning.

Those types of charter schools,which aren’t based in classrooms, experienced significant enrollment increases because of the need for distance learning during COVID,

She said her network added 1,000 students during the pandemic and needed its nearly $9.9 million loan —the largest of any charter operator in the country. The Small Business Administration, which is in charge of the PPP program that ended last May, forgave that loan on Dec. 1.

“It was exactly what PPP was designed for — to help us provide a great quality education for our children through the most difficult years ever,” Hermsmeyer said. “We kept our programs and services, and we did not cut salaries.”

The federal government promised to forgive the loans if the money was used to keep workers on the job and to pay for pandemic-related issues.

Researchers have found the SBA has forgiven most of the loans for all industries with little auditing done to see if the money was properly used. Meanwhile, up to three-fourths of the money went into the pockets of business owners, according to a recent study.

Which charter schools near you took federal PPP money?

Search USA TODAY’s database of more than 1,100 charter schools that had Paycheck Protection Program loans totalling more than $1 billion forgiven.

California, which in 1992 became the second state to allow charter schools, had more than 1,300 of the schools and seven all-charter districts at the beginning of this school year, according to the state’s department of education. That’s roughly 11.5% of the entire public school student population in California.

The state had six of the top eight forgiven loans for charter schools in America, all in excess of $5.5 million, records show.

California Congressman Judy Chu has been highly critical of the federal oversight, saying the agency and Treasury Department prioritized speed in getting money to businesses instead of scrutiny over who needed the cash.

Learn4Life gets most PPP loans

The largest block of forgiven loans, a combined $32.7 million, went to the same address in Lancaster, California, for 12 related nonprofit companiesthat are part of Learn4Life, a charter chain whose firms reported to the IRS that they employed a combined 4,567 workers during 2019.

The loans were obtained in April and May 2020, and forgiven throughout last year, federal records show.

The combined employment would be more than nine times the threshold for obtaining a PPP loan.

Learn4Life spokeswoman Ann Abajian said the organization had 1,685 employees among its companies.

She said the discrepancy occurred because the companies had previously counted seasonal and part-time employees in their staff totals and that information was disclosed to the federal government to have the loans forgiven.

Federal tax returns for the 2019-2020 fiscal year from those 12 nonprofits, which were signed by company executives, showed the higher staffing numbers.

For example, Learn4Life’s Antelope Valley Learning Academy Inc. reported employing1,302 staff, while Western Educational Corporation and Vista Real Public Charter employed 527 and 668 people, respectively.

“Each entity — as a separate charter nonprofit, with less than 500 employees and its own independent governing board — applied with accuracy and transparency, met the criteria, and was awarded the loans and later forgiven. Proper documentation with supplemental justification and backup was presented to SBA,” Abajian said.

The chain said it used the loans to purchase and distribute 20,000 laptops and 15,000 hotspots, baby supplies for hundreds of parenting students as well as an online curriculum. In addition, the organization said its technology support desk hired more staff.

Eric Cross (middle) teaches seventh-grade science at Einstein Middle School in San Diego. The school was eligible for a federal Paycheck Protection Program loan, but school officials turned it down because the state of California did not cut any funding to public schools.CRAIG HARRIS

Other businesses, such as Shake Shack, also counted separate locations to qualify for a PPP loan. That publicly traded company with more than 7,000 employees and 205 restaurants in the U.S., was one of the first to get a PPP loan. However, Shake Shack returned its $10 million loan following public scrutiny.

In Arizona, prominent, successful chains Basis Charter Schools Inc. and Great Hearts Academies said they didn’t seek the loans even though their individual campuses employed fewer than 500 workers. Basis and Great Heart officials said they read the SBA rules as requiring all employees within an organization to be counted and both were too big.

Meanwhile, other California schools that had jumbo loans forgiven included Granada Hills Charter in Granada Hills ($8.5 million), Antelope Valley Learning Academy in Lancaster ($7.9 million), Summit Public Schools in Redwood City ($6.9 million), Western Educational Corporation in Lancaster ($6.2 million) and Magnolia Educational & Research Foundation in Los Angeles ($5.5 million).

Categories Accountability, Charter Schools, Education Reform, Funding, Scandal, Shame

California: ALERT! Charter Insiders Infiltrate Democratic Party Platform Committee!

By dianeravitch
March 22, 2022 //
23

Sara Roos, a blogger who writes under the name “Red Queen in LA,” reports on a dangerous development in California. Charter school insiders took charge of writing the California Democratic Party’s education platform and made changes that undercut longstanding Democratic Party opposition to charter schools. Suddenly, charter schools are referred to not as privatization but as “public charter schools,” the preferred language of the charter lobby. The new language dropped the Democratic Party’s insistence that the boards of charter schools must be elected and replaced it with the requirement only that they be authorized by local school boards. A big change, among others that put the Democratic Party platform in the pocket of the charter billionaires.

Roos wrote:

What actually happened with the CA Democratic Party’s (CADEM) platform adopted Sunday (3/6/22) at its convention?

At the eleventh hour, following an eleven-hour meeting finalizing draft proposalsfor updating the 2022 CADEM platform, it came to light that one of its 23 platform “planks”, that of Education, had been tampered with by charter school (CS) industry insiders.

As a consequence, CADEM delegate and California Federation of Teachers legislative advocate, Tristan Brown, urged from the floor that fellow delegates vote “no” on the entirety of the proposed platform changes, since the rules forbade focusing on specifics to excise.

It was argued that the new language altered the hard-won, former mandate that charter school boards must be elected, because democracy demands public, elected accountability. The platform’s new language morphed this fundamental demand, requiring instead that charter schools simply be authorized and monitored by a school board. The language of conditional support was removed altogether.

On the strength of the Union recommendation by the statewide federation of teachers, and the leadership of several key caucus chairs and leaders, the final floor vote passing the platform was far shy of consensus at 57% aye (691 votes), 43% nay (510 votes). [The absolute numbers are extracted from the meeting transcript and are a little different from the poll result percentages shown to delegates via zoom].

From a convention of 3,037 elected delegates + 80 proxies, that translates to passage by just 22% (=691/3117) of total eligible voters at the convention. But the total number of delegates voting for the platform was not presented. If quorum were just reached for the vote with its 1559 members, then a bare minimum of 358, or nearly one-quarter of delegates (23% of the eligible quorum (=358/1559)), abstained from the platform vote altogether. The sum total of those failing to vote for the platform {“nay”+abstain} far outstrips those who did.

As it happens, the reality of the platform language change is far worse than what was hastily presented on the floor. And befitting their shepherding by charter school operators (including the board chair of the charter school lobbying association), these changes do very much advantage charter school operations.

The former language of bullet 23 in the K-12 Education plank conditioned circumstances for the Party’s support of charter schools on five contingencies [emphasis mine]:

  • Support only those charter schools that are managed by public and elected boards, not-for-profit, and transparent in governance; have equitable admissions; adopt fair labor practices and respect labor neutrality; and, supplement rather than supplant public education programs.

The draft language posted in advance of the convention eliminates rules for conditional support altogether. Instead conditions are replaced by definitions. The term “charter school” is redefined through use of the modifying adjective, “public”. A list of characteristics is simply inserted, absent any conditioning on support. And the long-standing federal exhortation acknowledging and specifying the fungibility of money to ‘supplement not supplant’ (ie, do not rob Peter to pay Paul), is lost:

  • Support public charter schools that are governed by not-for-profit, elected, public boards with transparent governance, have equitable admissions, adopt fair labor practices, respect labor neutrality, and supplement public education programs for students in historically low performing subgroups such as low income, English learners, Black, American Indian, and Alaskan Native students, foster children and students with disabilities

The real problem came from a change inserted after the posted draft platform. Support is urged for these entities now defined not by their governance but by the circumstance of their chartering: authorization and monitoring [emphasis mine]:

  • Support public charter schools that are authorized and monitored by public and elected boards, not-for-profit, and transparent in governance; have equitable admissions; adopt fair labor practices and respect labor neutrality; and, supplement public education programs for students in historically low performing subgroups such as low income, English learners, Black or African American, American Indian, and Alaskan Native students, foster children and students with disabilities

The change amounts to saying “I exist therefore I am”. It asserts support of charter schools no matter what, and defines them as “public”, a characteristic denied by the courts. Reversing the stringent conditional acceptance terms delineated formerly, this incarnation accepts charter schools as the choice of the Democratic Party.

Another change instigated by the charter school lobbyist who volunteered their services to the platform committee, softens the field for two competing ballot initiatives to privatize our public schools through the use of vouchers.

Under cover of redundancy, bullet 14 that unequivocally and expressly “opposes voucher systems for schools,” is eliminated. Its declaration is diluted by sending it lower in the long list of bullet points, and combining it with Education Savings Accounts. The real problem comes in conditioning this opposition to their effect. Since charter schools are defined in the platform now as “public”, vouchers would not be found to “take away from public school funding”.

  • Oppose K-12 Education Savings Accounts, school vouchers, or any programs that would take away from public school funding;

This change was not a mere correction of duplication, it substantively prepares the field for a statewide fight about “school choice,” launched and led from the left. The platform now states that because we define charter schools as “public”, vouchers are a system we no longer oppose because they do not take money away from the public-charter entity. Just as this new platform accepts charter schools de facto, we also now fail to oppose voucher systems.

Trickiness gonna be tricky. Voters gotta be vigilant. Special, monied-interests are persistent and focused; the rest of us are harried volunteers.

Categories Accountability, California, Charter Schools, Democracy, Democrats, Education Industry, Privatization

Angie Sullivan: Nevada Is Killing Off Its Public Schools

By dianeravitch
March 22, 2022 //
9

Angie Sullivan teaches in a Title 1 elementary school in Las Vegas, Nevada (Clark County). She frequently sends letters to every legislator in the state about the need to fund schools like hers adequately and the dismal failure of charter schools.

She responded to a post that featured an interview with Jennifer Berkshire, who predicted that some states would phase out public schools in the next few years.

Sullivan responded:

There would have been a time I would have said this will never happen. Public Schools are such an American Insitution. They are protected by laws.

Now I know charter schools are built to go around the laws. Our Nevada Constitution states one district one county. But charters claim they are not a district. And when necessary they are not even a school. The beauty of the EMO/CMO makes them slippery too. They are often a combination for-profit/non-profit. What law can apply to all of the above: a non-profit education.business, managed by a for-profit management corporation which can then also take advantage of all public school resources and tax advantages, while also applying for all the small business grants and money.

Nevada never got the immediate overnight conversion Elaine Wynn and her reformers wanted. That was too quick and shocking. The ASD grabbing 30 schools at a time did not work. [Elaine Wynn is chair of the state Board of Education and wife of a major casino owner.]

So neoliberals have settled for a slow and steady 5 or 6 charters a year. Along with adding to charter chains by grade level every year – 100 students here and 100 students there.

Jana Wilcox-Lavin uses the $22 million in grant money to grease wheels and find favor. Rebecca Feiden is one of the most powerful women in the state. She grants charters; She refuses charters. Rebecca gives some chance after chance after chance to start their charter business. Others, she stops dead in their tracks. They both inherited a dysfunctional and failing charter business. The Charter Authority is still mired in failing charters – failing financially, failing academically, and failing to enroll diversity. Charters in Nevada are obvious segregation and white flight. There is limited appetite to serve poor students.

Mayors in Clark County seem to think running a school is easy. The pandemic allowed them to use education money to offer micro-charters. This seems to have whet some appetites to own a district of their own.

Mayor Goodman of the City of Las Vegas wants a charter. For some unknown reason she paired up with the EMO TNTP (Michelle Rhee’s Group). She signed on the who’s who of education reform. The City of Las Vegas is now in the school business. Interestingly enough Mayor Goodman was successful at running an expensive private school. She does know education. She has zero experience running a school for diverse poor students. She is about to get a wake-up call. Cedric Creer was only voice of reason when this was discussed. He has the failing Agassi, Rainbow, and 100 Academies in his area – he warned the City Council not to go into the school business. Those charters have had few successes and much more failure. Turnover is constant both teachers and students. Mayor Goodman is about to learn that loads of donations and cash from the City of Las Vegas will not be enough if you let Michelle Rhee’s teaching hating group abuse labor. Interestingly enough, Goodman will retire and the City Council will then run this charter school.

Things I did not think were possible.

Are happening.

I thought our straight forward laws would prevent the Mayors from owning a district through their City Councils.. But charters are not in “districts”. Nor are they schools. Nor are they businesses. They become whatever they need to be to skirt the rules the rest of us live by daily. They claim it is “innovation”. Grifters do it everyday. I do not find it new.

I watched Rebecca Feiden define EMO/CMO very differently to the Nevada Legislature the other day – than she has ever defined it is a Charter Authority Meeting. Perhaps she does not even know or want to know. She was certainly snippy like legislators should already know.

I think this year, The Nevada State Public Charter School Authority will become the second largest district (yes, I know they claim they are not one, but they act like one) in Nevada. It is the size of the Reno/Washoe School District almost. And it serves mainly rich white students inside the middle of Clark County. Yes I know it has a hand full of diverse charters – those are not the norm. Yes I know there are charters in other counties. The bulk of the Nevada charters are serving rich white students inside CCSD. Creating a systematic segregation in Clark County. White Flight is obvious.

Charters segregate by religion, race, and money. They are actually tracking special education, language learning, and free and reduce lunch because those categories earn businesses more pupil center funding dollars. This tracking does not help with Mormon charters, all black or all white charters, and charter locations which are obviously limiting access.

Rebecca Feiden is focused on trying to get more free and reduced lunch children into charters. The Charter Authority is sending the charters a letter, inviting them to participate in “Weighted Lotteries” to help correct their diversity issues. All the charters are getting a “Weighted Lottery” and the Charter Authority is claiming this is a tool to diversify. Weighted Lotteries do not help at all. Especially with new charter enrollment which required diversity by law. Weighted Lotteries only go into affect if charters are full. Technically if a charter has even one spot open – the lottery is not triggered.

The irony of all this is not lost on me. CCSD is one of the most diverse districts in the United States. Yet our Nevada Charters which are predominantly EMO’d For-Profit Academica – serve the rich and white. Now Nevada Charters are spending money to attract diversity to their charters – advertising, flyers, walking door-to-door, or so they claim they tried to find a diverse child to enroll. The Tax Payer has to pay these businesses to admit a few IEP, language learners or poor children. For some perspective, my public school is 100% diverse on every and all levels – we do not try at all to add diversity. In fact

Nevada never closes a failing charter. Even charters that cannot fill out the application or meet the requirements just sue until they are finally allowed to do whatever they want. There is not remedy to stop this. $950 million in Nevada Charters and not a single soul can tell you where it is or what it was spent on.

This is why I think Jennifer Berkshire is correct. Eventually, there will be no place called public schools. There will be a selection list and rich people will be able to pay to have a teacher and school. Others will accept cash and their children will not receive anything and that will be fine because it is their “choice”. And most will meet in a charter warehouse somewhere to sit in front of a device with software teaching them. The poor will be used to privatized and receive the lesser quality of the lists.

It will be slow. CCSD has a parasite. At this rate, the Charter Authority will just keep growing and making more messes which use up more education dollars. It takes from some to give to others. And folx are just fine with allowing a corporation take everything from the disadvantaged so their own children can get ahead. The so called “progressives” are leading the charge.

It is wrong and I hope we fight it. I believe in our imperfect public schools. I see nothing the charters offer that is new. I do not see them being a remedy at all. There is some limited liability advantages for businesses – is that good use of tax dollars?

I hope I am wrong.

Logically I am just afraid Jennifer Berkshire is right.

She followed up with another comment:

Sadly CCSD and Nevada “Leadership” are TFA. They are here to stay. Having catapaulted themselves above everyone.

An example is the very powerful Rebecca Feiden who control $950 million in Nevada Education Dollars which go to Nevada Charters.

Another is Jana Wilcox-Lavin in Opportunity 180 which spreads charters and gives “grants” to them.

No one wants to be a teacher – seems there will always be an appetite to make six figures and control everyone and everything for an eduphilantrophist like Elaine Wynn.

Categories Accountability, Charter Schools, Democracy, Disruption, Education Industry, Nevada, Privatization

Newark: Black Students Walk Out of North Star Charter to Protest Mistreatment

By dianeravitch
March 21, 2022 //
24

On Friday, a large continent of Black students walked out of North Star Academy, a high-scoring no-excuses charter school in Newark, New Jersey. The students were protesting the mistreatment of Black students and teachers.

Chalkbeat reports:

Hundreds of students walked out of a Newark charter school and rallied outside City Hall on Friday to call attention to what students said is the frequent mistreatment of Black students and faculty.

Around 9 a.m., students began streaming out of the Lincoln Park High School campus of North Star Academy, which is New Jersey’s largest charter school operator with more than 6,000 students in Newark and Camden. After marching from the Central Ward campus to nearby City Hall, student organizers and a former teacher gave speeches about a culture of anti-Blackness they said pervades the school, while scores of students cheered and waved signs.

“We’re tired and we’ve been fed up,” 12th grader Kwadjo Otoo called out from the steps of the historic building, adding that some Black teachers and students continue to feel disrespected despite efforts by the charter operator’s leadership to address complaintsabout the schools. “Now they’re trying to pretend like something changed, but we know it’s the same school we’ve been going to forever now.”

Several students said multiple Black teachers over the years have left the school, which the students said is because the teachers felt overworked and undervalued. When well-liked Black teachers depart, their absence can leave students feeling isolated, they said.

“It’s very upsetting for us to build bonds with our teachers, to build relationships and connect,” said L. Drummond, a senior at the Lincoln Park campus, “and then see them chased out by the school.”

The school went into lockdown during the protest, and students who left were not allowed back in after they returned from City Hall. Locked out of school, the students began to disperse around 10:30 a.m.; some said they planned to walk home while others set out for a different North Star campus downtown.

Categories Accountability, Charter Schools, Discipline and Suspensions, Disruption, Education Industry, Newark, Racism, Resistance, Students

USA Today: Charter Schools Collected $1 Billion in COVID Funds They Did Not Need

By dianeravitch
March 20, 2022 //
9

Craig Harris of USA Today wrote a blistering expose of the money grab by charter schools for federal COVID funds. Harris was previously a reporter for the Arizona Republic who often covered charter school scandals in that state where deregulation has enabled grifters to get rich by opening charter schools. This story is a national scandal. Unfortunately, it is behind a paywall, so I urge you to run out and buy the Sunday March 20 USA Today.

The story begins:

America’s charter schools received at least a $1 billion windfall during the pandemic, an unneeded cash infusion for most from a federal program intended to bail out struggling small businesses, USA TODAY has found. 

More than 1,000 of the publicly funded but privately operated schools that educate a fraction of U.S. children jumped at the chance to collect forgivable loans up to $10 million after Congress created the Paycheck Protection Program in March 2020.

The hastily launched program was designed to save small businesses during the pandemic by helping them cover employee salaries and other costs.

While more than 90% of all eligible businesses across the country took the roughly $800 billion inloan allocations, charter schools were among the first to get the money — ahead of mom-and-pop shops and minority-owned companies — during the early days of the crisis when the economy was cratering and many business owners scrambled to get a financial lifeline.

And charter schools were uniquely positioned to get the loans — even though they continually received funding from taxes, just like traditional public schools. But unlike those schools, which educate the vast majority of American children, charters qualified for what would eventually become pots of free money because they are considered a business. 

A USA TODAY investigation, based on public records,found 93%of the charter schools may not have needed the money because they were in states that continued to fund them at the same level as before the pandemic, or at even higher levels in some cases. These schools also had access to federal COVID grants. 

Records show some of the private companies that operate the charter schools used the money to pad savings accounts or, in one case, hand millions of dollars to an investor.

USA TODAY’s investigation is based on publicly available documents from 1,139 charter schools, as well as federal and state agencies, including 37 departments of education that oversee local funding for charter schools.

“It makes me furious because there was absolutely no reason for those (charter) schools to get that money and take it from small businesses,” said Carol Corbett Burris, a critic of charter schools and executive director of the Network for Public Education Foundation, an advocacy group in New York City. “They successfully double-dipped….”

Charter school advocates said operators were entitled to the loans, which ranged from $150,746 to $9.8 million,because they are technically private businesses. 

“Funding is always difficult to secure but was even more challenging during the pandemic,”  said Nina Rees, president and CEO of the National Alliance for Public Charter Schools.

Rees added that charter schools typically receive less public funding than traditional school districts and Congress intended for them to get the money because of “the special nature of these unique public schools.”

Critics have a different view. 

A congresswoman who has monitored the program said that while the schools may have done nothing legally wrong, their decisions to take the money were “terrible.” And one superintendent who leads an inner-city San Diego charter operation said that despite the legality, the behavior was unethical because financially strong charter businesses took money from those truly in need. 

“At the time PPP became available, we had not suffered financially,” said David Sciarretta, superintendent of the Albert Einstein Academies, which has 1,450 students from kindergarten to eighth grade at two San Diego campuses. “I saw PPP as a way to help small businesses, especially those in the service sector…There is a fiscal way to look at it, and there’s a moral and ethical way to look at it.”

While Sciarretta declined to call out specifics schools, USA TODAY found, for example, that at least 14 affiliates of the California-based charter chainKnowledge Is Power Program (KIPP) took a collective $28.4 million in loans and had them forgiven at locations around the U.S.

Its national headquarters in San Francisco, meanwhile, saw its bottom line swell 56% to $75 million during the first year of the pandemic….

The concerns about charter schools have spurred critics to pressure the federal Small Business Administration, which is in charge of forgiving the loans if companies used them to save jobs and cover COVID-related expenses, to claw back the money.

The SBA declined repeated requests for interviews in response to questions about financially solid charter schools having their loans forgiven. 

The agency in a late December email told USA TODAY it was committed to helping businesses reopen and that it had removed hindrances for small businesses to have their loans forgiven.

SBA two months later, following additional questions from USA TODAY, blamed the Trump administration for issues of “fraud, waste and abuse” in the program. Yet, nearly all of the loan forgiveness has happened at SBA during the Biden administration.

California Congresswoman Judy Chu is a member of the House Small Business Committee, and she has sought answers about where the money went and which businesses received loan forgiveness. Shamed by media attention in the early days of the pandemic, the Los Angeles Lakers and the national chain Shake Shack returned their multi-million dollar PPP loans.

Congresswoman Chu said:

It was never the intent of Congress to forgive loans to companies, such as charter schools, that experienced no economic loss.

“It’s terrible,” Chu said about the charter schools. “But nonetheless, it is in the realm of what is permissible.”

Permissible, but not ethical. Charter schools got their ”loans” early on because of their relationships with their banks, but minority-owned businesses waited for months.

The PPP program was a boon to the charter industry, which never lost its state funding, but it was ineffective. Harris quotes a study by the National Bureau of Educational Research which found that the program “the program kept up to three million workers employed an additional year at a cost of up to $258,000 per job retained.”

This is a very powerful, well researched article that raises important questions. if charter schools are “businesses,” how can they call themselves ”public schools?” Public schools were not eligible for PPP funds because they are not businesses. Charter schools qualified for public school funding and for PPP funding. They are both fish and fowl. They did not lose money, like the mom-and -pop stores that had to close their doors. But they eagerly took the money that was supposed to save the jobs of people who lost them and save the businesses on the edge of bankruptcy.

Permissible? Perhaps. Ethical? No.


Categories Accountability, Charter Schools, Education Industry, For-Profit, Funding, Hypocrisy, Privatization

Kentucky: Charter Bill Appears to be Dead for Now

By dianeravitch
March 18, 2022 //
1

Tina Bojanowski, a teacher and member of the Kentucky legislature, tweeted last night that HB 9, the charter funding bill, appears to be dead for this session. A great victory for parents, students, teachers, and taxpayers in Kentucky!

She tweeted:

HB9, the charter school bill, was pulled from the committee agenda. It’s likely we stopped it – for this session.

@TinaForKentucky

Categories Charter Schools, Corporate Reform, Education Industry, Kentucky, Resistance

Jan Resseger: Federal Education Budget Is Disappointing

By dianeravitch
March 17, 2022 //
7

Jan Resseger reviewed the federal education budget for next year and found it disappointing. Although schools received large grants to get them through the COVID crisis, the other big budget promises evaporated. With private school choice programs draining money away from the public schools that educate the vast majority of our children, this is bad news indeed. The scandal-scarred federal Charter Schools Program was once again funded at $440 million, after being heavily lobbied by the charter school lobby. This means that the federal Department of Education is the biggest funder in the nation of charter schools, which also are supported by a plethora of billionaires like Gates, Waltons, DeVos, Koch, Bloomberg, and more. The Network for Public Education published two in-depth studies of the federal Charter Schools Program (see here and here), which showed that nearly 40% of the schools funded by the program either closed soon after opening or never opened at all, wasting more than $1 billion. But charter school friends like Senator Booker of New Jersey and Senator Bennett of Colorado fought to keep the money flowing. The Senate also removed a provision banning the funding of for-profit charter corporations. So, despite President Biden’s promise to get rid of for-profit charters, they will continue to feed at the public trough.

Last spring, in his first proposed federal budget for the Department of Education, President Biden tried to begin fulfilling campaign promises that defined his commitment to alleviating educational inequity.  He proposed an astounding $443 million investment in full-service, wraparound Community Schools, far above the previous year’s investment of $30 million; $36.5 billion for Title I, the Education Department’s largest program for schools serving concentrations of children in poverty; $15.5 billion for the Individuals with Disabilities Education Act; $1 billion to help schools hire counselors, nurses, and mental health professionals; and a new $100 million grant program to support diversity in public schools.

But last Thursday night, in order to prevent a federal government shutdown, Biden signeda federal budget whose whose investments in primary and secondary public education are far below what he had hoped for.

Chalkbeat’s Matt Barnum reports: “Biden hoped to reshape school funding. A new budget deal shows that’s not likely anytime soon…  While campaigning for president, Joe Biden vowed to triple funding for Title I.  Last year, Biden aimed to get much of the way there by proposing to more than double the program, which sends extra money to high-poverty schools. Now, it looks like schools will have to settle for far less… A bipartisan budget package… increases Title I by just… $1 billion, and includes a smaller-than-requested boost for funding to support students with disabilities…. In total, the K-12 portion of Department of Education spending would increase by about 5%.”

On the positive side, Biden and Congress have been able to increase the Department of Education’s largest and key programs, while under President Trump, Congress only increased funding slightly for K-12 education while fighting to prevent cuts proposed by Trump and his education secretary, Betsy DeVos.

Writing for FutureEd, Phyllis W. Jordan itemizes the education budget allocations Congress passed last week:

  • Title I — $17.5 billion
  • IDEA Grants — $13.3 billion
  • Educator Professional Development and Support — $2.2 billion
  • School Safety and Student Health — $1.2 billion
  • Mental Health Professionals in Schools — $111 million
  • School-Based Mental Health Services Grants — $56 million
  • Demonstration Grants — $55 million
  • Social-Emotional Learning — $82 million
  • Full Service Community Schools — $75 million

One of the biggest disappointments for educators and many families is Congressional failure to fulfill the President’s attempt significantly to expand the federal investment in Full-Service Community Schools.  These are the schools with wraparound medical and social services located right at school for students and families. Community Schools also often provide enriched after school and summer programs.  President Biden had proposed to expand the federal investment in these programs from the Trump era amount of $30 million to $430 million annually.  In the end, Congress budgeted $75 million for this program, an increase but not what advocates had hoped would expand this proven strategy for assisting struggling families and children in an era when over 10 percent of New York City’s public school students are homeless.

Please open the link and keep reading.

Categories Charter Schools, Education Industry, Education Reform, For-Profit, Funding, Poverty, U.S. Department of Education

Andy Spears on Privatization in Tennessee

By dianeravitch
March 14, 2022 //
24

Andy Spears is the publisher of the Tennessee Education Report. He writes in the current issue of The Progressive about the well-funded effort to privatize education funding in Tennessee. Republican Governor Bill Lee and the legislature are determined to gut local control and to outsource taxpayer dollars to out-of-state organizations to open charter schools. This drive for privatization ignores the abject failure of the Tennessee Educational Achievement Authority, which burned through $100 million without achieving anything.

Spears writes:

If you are wondering what it looks like when school privatizers are close to total victory, Tennessee is a prime example. Here, the forces that want to take public money and hand it over to private entities are on the verge of completing their conquest.

Tennessee’s current legislative session features a range of attacks on public schools. Some of these would have immediate impacts, while others take a longer-term approach to fully privatizing K-12 education in the state.

First, it is important to understand that groups backing privatization in the form of charter schools and vouchers are among the top spenders when it comes to lobbying state legislators. For example, the American Federation for Children—an organization founded and previously led by the family of Betsy DeVos, a school privatization advocate and former President Donald Trump’s Secretary of Education—spent $887,500. Another big spender, the Tennessee Charter School Center, spent $732,500.

Based on this year’s full-frontal assault, these investments appear to be paying off. There are three key issues that currently pose the most significant threat to Tennessee’s public schools. They include: a partnership with Hillsdale College, a private fundamentalist Christian college in Michigan, to run fifty or more charter schools; legislation that would create a charter school real estate grab; and school funding reforms that set the stage for a statewide voucher program.

In his State of the State address, Governor Bill Lee restated his commitment to set aside $32 million to help launch new charters in Tennessee and announced the Hillsdale College partnership, which could bring close to fifty Hillsdale-run charter schools into the state.

Beyond the use of public funds to open schools run by a private, Christian college, there is reason to be concerned about the nature of the Hillsdale curriculum. As educator and blogger Peter Greene explained, “[Hillsdale President Larry] Arnn has been a Trump supporter, and the college has fallen right into MAGAland as well. . . . The college uses Trump mailing lists to raise money. They used to sponsor Rush Limbaugh’s show. They get grads placed on the staff of legislators such as Jim Jordan and Kevin McCarthy.”

Over the past decade, I have consistently referred to charters as part of the privatization movement, a first decisive step towards vouchers. Charter advocates have frequently written to insist that charter schools are “public schools.” They are, because the state law (drafter by charter lobbyists) calls them “public schools.”

But the Tennessee push for charter schools makes clear that they have become a Trojan horse for privatization. Governor Lee is rewriting the school funding formula so “the money follows the child,” a back door path to vouchers, which a state court ruled unconstitutional.

Spears writes:

Potentially millions of dollars worth of real estate assets in local districts across Tennessee could soon be up for grabs at prices below market value. No wonder privatizers tied to the charter industry have spent $8 million lobbying the legislature.

The final element in the push for privatization is being billed as a “reform” of the state’s school funding formula. Governor Lee recently released his plan to revamp how the state directs money to local school districts for public schools. The bottom line, according to Lee, is that the approach is “student-centered” and that funds “follow the child” no matter what. This plan is based on model legislation from the rightwing American Legislative Exchange Council (ALEC).

This statement, first of all, creates the erroneous impression that charter schools operate as “public” schools. Although called public schools under Tennessee law (as in most states), these schools function with less government oversight and an array of private operations, from real estate management to the sourcing of substitute teachers to overall school management.

Lee has been fighting to redirect public money to private schools since before he was elected governor.

Second, the proposed change to school funding is quite simply the gateway to a full-on voucher scheme. As Tennessee teacher Mike Stein wrote on his personal blog, the final form of funding reform is a workaround for a school voucher law that Lee enacted and was ruled unconstitutional.

Can the privatizers be stopped? Will charters pave the way for vouchers? Will Governor Lee succeed in destroying local control of public schools?

Stay tuned.

Categories Accountability, Charter Schools, Democracy, Disruption, Education Industry, Privatization, Tennessee, Vouchers

Peter Greene Is Happy about the Declining Number of TFA Recruits

By dianeravitch
March 14, 2022 //
12

Peter Greene was pleased to learn that the number of applications to Teach for America has steadily declined since 2013. In a way, it’s not surprising because “the entire teaching professional pipeline has been drying up.” TFA blames the pandemic but it’s decline started long before the pandemic.

TFA used to boast that it’s ill-trained recruits were superior to those with professional training, even to experienced teachers (who allegedly did not have “high expectations” like TFA). But you don’t hear much of that boasting any more.

Greene writes:

TFA has long been mocked for putting their people in classrooms with little training or support, but the damage done by unqualified rookies in the classroom has been dwarfed by the damage done by their products after they leave the classroom. TFA has unleashed a small army of “former teachers” and “education experts” who spent two whole years in the classroom (knowing full well that they weren’t going to stay, and therefor had no real reason to try to learn and develop professional understanding) but now feel qualified to tell actual teachers what to do. It has become predictably cliche–scratch almost every clueless edupreneur and amateur hour policy leader who claims to have started out as a teacher, and you find a TFA product.

Worse, for the past few years they’ve been leaning into that part of their mission, that “spend a couple of years in a classroom as a way to launch your career as a policy leader and education thought leader who can spread the gospel of reformsterism.” This has turned out to be the most damaging legacy of TFA, and the fewer people they recruit to carry it on, the better of the world of US education will be.

Categories Charter Schools, Education Industry, Teach for America, Teachers and Teaching

Washington State: State Audit Finds Charter Schools Hiring Uncertified Teachers

By dianeravitch
March 14, 2022 //
27

Bill Gates struggled for years to bring charter schools to Washington State, over the opposition of parent groups, teachers, and civil rights organizations. He lost three state referenda, but won the fourth—barely—by blitzing voters with a multimillion dollar campaign that the opponents could not match.

Be careful what you want. First a CREDO report found that the charters did not outperform the much-maligned public schools.

Now a state audit reports that charters in Seattle and Tacoma are breaking the law by hiring uncertified teachers.

Teachers who lacked proper accreditation taught at charter schools in Seattle and Tacoma, in violation of state rules. This was discovered through an audit; State Auditor Pat McCarthy called these findings “unprecedented.”

The state audit found that Summit Sierra and Summit Atlas, schools in Seattle, and Summit Olympus, a school in Tacoma, received nearly $4 million in funding related to the positions, which may now need to be repaid…

The auditor’s office estimated that Summit schools received $3.89 million in state funding more than it should have related to the teaching positions filled by uncertificated staff.

In a formal response to the audit findings, an attorney for Summit Public Schools challenged all of them, and the state’s repayment calculations.

“It is simply not the case that a person is only qualified to teach under Washington law if he or she has a state-issued teacher certificate,” wrote attorney David Stearns.

The auditors, Stearns wrote, failed “to recognize the explicit exception to the teacher certification requirement that applies to charter schools.”

Jessica de Barros, interim executive director of the Washington State Charter School Commission, which authorizes and oversees Summit Public Schools, disagreed.

“All public charter schools are required to employ certificated teachers,” de Barros said. “The Commission supports full compliance with all of the audit recommendations,” including repayment of inappropriately-granted state dollars.

“We have since strengthened our systems to ensure these inadvertent reporting issues will not happen again,” said Kate Gottfredson, spokesperson for Summit Public Schools. “We will work with the [Office of Superintendent of Public Instruction] to develop an appropriate plan to address the findings.”

It is not clear why the spokesperson for the charter chain thought the problem was a “reporting issue,” not a breaking-the-law issue.

Categories Accountability, Charter Schools, Corporate Reform, Education Industry, Gates Foundation, Bill Gates, Teachers, Washington State
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