Archives for category: Charter Schools

Billy Townsend was a school board member in Polk County, Florida. He saw up close and personal how charters were sucking the high-scoring students out of public schools and excluding the students with disabilities. He saw up close and personal how the state’s voucher program was serving as a refuge from high-stakes testing and enabling the restoration of racial segregation. Billy believes, as I do, that if the day ever comes when so-called reformers see the harm they are doing to kids and to our democratic institution of public education, they might repent. Will shame move them more than the pursuit of profit and power? Perhaps we are naive to think it might. But hope springs eternal that even the profiteers and entrepreneurs and shady fly-by-night grifters might someday see the light.

Billy has written a powerful series about the Jeb Crow school industry and how its sole purpose is to destroy public education without helping kids. All of the articles are referenced in this post, the last of the series. He has demonstrated how the voucher schools are highly segregated and low-quality. He refers to the choice schools as “failure factories” but now calls them “Jeb Crow” schools to credit former Governor Jeb Bush for creating the Big Lie that school choice saves children. It doesn’t.

Townsend throws out a challenge to reformers who are sincere, if there are any, about equity and helping kids:

Serious “reformers” — those who actually mean it when they use the moral, racialized language of equity in justifying punitive policies that destroy public education capacity — know today that their entire life’s work is bullshit that failed on its own terms. 

They know it. Every single one of them. Some of them will cry about America’s super awesome graduation rate; but they know that’s manipulated data bullshit, too. Mostly, they’ve just gone silent while think tanks beg to keep getting useless test data and grifters use the language and weaponry “reformers” provided them to demolish public education capacity for everyone. 

The question now: if, when, and how will “reformers” ever break their shamed silence about their failures and decide to help us fix them?

Jeb Crow means wealthier, whiter kids get high capital charters; more vulnerable, less white kids get no capital vouchers; and we kill/privatize public schools altogether.

The grifting and cheating by state education officials is breath-taking. They know that school choice is a cynical ploy to shift money from taxpayers to private corporations. They know that the corporation that handles the voucher funding now has assets of nearly $700 million. They know where power lies in Florida. They know how corrupt the Legislature is. But everyone goes along to get along.

If you read one thing today, read Billy Townsend’s reports on Florida’s massive crime against children and the state’s own future.

You may recall that the Oklahoma State Board of Education recently voted 4-3 to allow charter schools to share in local tax revenues, over the opposition of State Commissioner Joy Hofmeister, who said that the decision might violate state law. You may also recall that the virtual charter school in Oklahoma called EPIC has been embroiled in scandal after scandal (just google “Oklahoma EPIC scandal” and you will get lots of references to allegations of theft, embezzlement, ghost students, etc.). For example, in fall 2020, the state auditor reported that EPIC owes the state $8.9 million for inaccurate reporting, improper transfer of funds, and a multitude of other egregious (you might say “epic”) calculations. That $8.9 million was the tip of a very large iceberg. The state auditor said that about 1 of every 4 dollars that the state paid to EPIC (a total of $458 million) was deposited as profit by the school’s owners. The story is breathtaking.

The Oklahoma Parent Legislative Action Committee (PLAC) posted this on its Facebook page:


Oklahoma PLAC
  Facebook post:

TRANSPARENCY, ACCOUNTABILITY??? 🔎 Where art thou?

We’re wondering why State Board of Education member Jennifer Monies did not recuse herself during last week’s vote to settle a lawsuit that directly benefited another entity of which she serves as board member. She is both plaintiff and defendant in this case yet she still cast a vote. 

“On numerous occasions in the board’s public meetings, Monies has mentioned her service on the board of her son’s school, John Rex Charter Elementary in Oklahoma City, which would stand to benefit from the settlement and which is listed as a member of the Oklahoma Public Charter School Association on the organizations’ website.”

And another tragic Farce

EPIC Charter Schools named Charter School of the Year by Choice Matters

The Texas Senate Education Committee bowed to the wishes of the powerful charter lobby and granted sole power to the State Commissioner (appointed by the Governor) to approve charter schools. His decisions can be vetoed only by a supermajority of the State Board of Education.

The State Commissioner of Education is Mike Morath. He is not an educator. He is a software executive who served on the Dallas school board and advocated for charter schools.

Local elected authorities—including mayors and school boards—are prohibited from blocking a charter school that wants to open in its jurisdiction. Charters can locate wherever they choose without regard to the views of local communities that want to protect their own public schools from rapacious charters.

Right now, Texas is being overrun by corporate charter chains aiming to grab market share. This bill will help them by canceling democracy and the will of the people.

This is the bill that passed the committee.

CSSB 28 (Bettencourt), as substituted, increases the threshold – from a majority to a supermajority – required for a State Board of Education veto of a charter awarded by the commissioner and defines reasons why the SBOE may veto a charter. It also prohibits a local governmental entity from enacting or enforcing an ordinance, order, regulation, resolution, rule, or policy or taking action that prohibits an open-enrollment charter school from operating a public school campus, educational support facility, or administrative office in its jurisdiction.

I like this post by Peter Greene a lot because it clears up confusion about what defines a public school. Many people think that charter schools are public schools because most state laws define them as “public charter schools.” The charter industry wrote the state laws, and they desperately wanted to be considered “public schools” so they could qualify for the same funding as public schools (in Texas, they get even more funding than real public schools). The proliferation of corporate charter chains make it even harder to see charter schools as public schools, since nowhere in the history of public schools were multiple schools managed by a corporation.

Greene asks the questions that define what a real public school is.

Here are a few of them:

Is the school and its resources owned by the public?

Who owns the building? If the school closed tomorrow, who would take possession of the building, the desks, the chairs, the books, the music stands, etc etc etc. If the physical resources of the building are owned by the public, it’s probably a public school.


Is the school run by local elected officials?

When we get to the very top level of management, do we find a board of local people elected by local taxpayers? If so, it’s probably a public school. We’re in a fuzzy grey area in districts under mayoral control, but not at all fuzzy when discussing upper management that is not elected by anybody at all.

Did those local officials open the school?

Who decided this school should exist, and that local taxpayers should pay for it? If that decision was made by a board of local citizens elected by local taxpayers, it’s probably a public school.

Are those local official required by law to meet only ever in public?

Can the board of local citizens elected by the local taxpayers meet in secret? Or must their meetings be announced and in public, with exceptions only for times when the group must adjourn for privacy regarding, say, personnel or student issues? Public school boards don’t get to meet unannounced, privately.

Are all financial records available upon request, and subject to state audit?

If you’ve gone to court to block the state from auditing your school financial records, you are not a public school. It’s simple, really– you’re spending taxpayer money, and the taxpayers are entitled to an accounting of it. Any taxpayer should be able to access your financials. The state should audit you regularly.

If your school doesn’t meet these minimal requirements, it is not a public school.


Over the opposition of Joy Hofmeister, the state superintendent, the Oklahoma State Board of Education voted 4-3 to allow charter schools to have a share in property taxes and motor vehicle taxes that previously were reserved for public schools.

A groundbreaking settlement will fundamentally change the way charter schools are funded in Oklahoma, despite vehement opposition from the state’s top education official.

The Oklahoma State Board of Education voted 4-3 on Thursday in favor of an agreement with the Oklahoma Public Charter School Association to settle a 2017 lawsuit.

The charter school association called the agreement a “tremendous step” for equality in school funding.

State schools Superintendent Joy Hofmeister said the settlement could violate state law and have “seismic” implications by redistributing school funding.

“Today’s board action circumvents the will of the people of Oklahoma and the state legislature by unilaterally determining how public education is to be funded,” Hofmeister said in a statement Thursday evening. “I fear this action knowingly violated Oklahoma statute and the Oklahoma Constitution.”

The original promise of charter schools when they started thirty years ago was that they would cost less than public schools because of their lack of bureaucracy. That pledge has long been forgotten as charters fight to have equal funding–or in some states, like Texas–more funding than public schools.

This decision will mean less money for Oklahoma’s underfunded public schools.

Joy Hofmeister is one of those rare state chiefs in a red state who puts public schools first.

Fiorina Rodov wanted to teach, and, as she writes, she believed the glowing claims about charter schools as beacons of hope for the neediest students. She saw “Waiting for ‘Superman'” and cheered for the kids who wanted to get into a charter. She believed the movie’s hype about the magic of charters. So she got in 2016 a job teaching in a charter school in Los Angeles.

There she learned the truth about charter schools, or at least the one where she was teaching.

The school was non-union. Teacher turnover was high every year. Student attrition was high.

But the chasm between the hype and reality became evident to me immediately upon starting work. There were high attrition rates of students and teachers. Over the summer, more than half the faculty resigned and were replaced by new teachers. About three-quarters of the students hadn’t returned either, and though new kids had registered, the enrollment wasn’t anywhere near what was needed in order to be fiscally stable, because funding was tied to enrollment. There were legal violations: The special education teacher had 43 students, though the law capped class sizes at 28. The overage made him fall behind on students’ individualized education plans (IEPs), making the school noncompliant on special education requirements.

Rodov also learned about the big-money forces promoting the charter myth. She was in L.A. for the election campaign between charter skeptic Steve Zimmer (chair of the LAUSD school board and former TFA) and charter zealot Nick Melvoin. The charter leaders across the city strongly supported Melvoin, of course.

I learned that billionaires fund local school board elections across America in order to accelerate charter school growth. In District 4 in Los Angeles, Steve Zimmer was financed by teachers’ unions while Nick Melvoin was reportedly bankrolled by California billionaires Eli Broad, Netflix co-founder Reed Hastings, and Gap clothing company co-founder Doris Fisher, as well as out-of-towners like former New York City Mayor Mike Bloomberg, Walmart heirs and siblings Jim and Alice Walton, and others in an expensive race...

Furthermore, CCSA [California Charter Schools Association] Advocates donated to an organization called Speak UP, which was a “strong opponent” of Zimmer, according to the Los Angeles Times, and whose co-founder and CEO Katie Braude resides in the Pacific Palisades, where the median home price is about $3.4 million. Braude helped launch the Palisades Charter School Complex, which sought to serve “all students in an ethnically and economically diverse student body,” according to her bio on the Speak UP website. But at Palisades Charter High School, “[w]hite students are 2.8 times as likely to be enrolled in at least one AP class as Black students,” while “Black students are 7 times as likely to be suspended as [w]hite students,” according to ProPublica. In 2016 and 2017, Black students were victims of hate crimes at Palisades Charter High School, and in 2020, a Black teacher sued the school for racial discrimination, wrongful termination, harassment and “intentional infliction of emotional distress.” According to the Pacific Palisades Patch, Pamela Magee, the school’s executive director and principal, responded to the teacher’s allegations via email, “PCHS is an equal opportunity employer, and we take allegations of discrimination seriously…”

Melvoin’s list of individual donations, according to the Los Angeles City Ethics Commission, is filled with some of the same moguls who donated to CCSA Advocates, such as Eli Broad and Reed Hastings. It also includes then-co-chairman of Walt Disney Studios Alan F. Horn, president of the Emerson Collective Laurene Powell Jobs, and Martha L. Karsh and her husband Bruce Karsh, who at the time of the election was the chair of the Tribune Media Company, which then owned the Los Angeles Times. (Bruce Karsh stepped down from the Tribune in October 2017, five months after the school board election.)

The billionaires who fund school board races across the country also finance education reporting. The Eli and Edythe Broad Foundation, which was partly behind a $490 million plan reported in 2015 to enroll half of LAUSD’s students in charters by 2023, funded the Los Angeles Times’ reporting initiative Education Matters with the Baxter Family Foundation and the Wasserman Foundation, which also support charters. The Bill and Melinda Gates Foundation and Amazon (whose founder and former CEO—now executive chairman—Jeff Bezos also owns the Washington Post) fund the Seattle Times’ Education Lab. The Bezos Family Foundation, the Gates Foundation, Bloomberg Philanthropies and the Chan Zuckerberg Initiative, founded by Facebook’s Mark Zuckerberg and his wife Priscilla Chan, fund Chalkbeat. The Chan Zuckerberg Initiative, the Gates Foundation and the Walton Family Foundation fund Education Week and The 74, which owns the LA School Report. The Gates Foundation finances the Solutions Journalism Network (SJN), whose “Fixes” column in the New York Times covers education and other issues. And Powell Jobs’ Emerson Collective owns the Atlantic, which has a robust education section.

The infusion of billionaire cash and media ownership helps to explain why the mainstream media seldom reports on the failures of charter schools or expose their lies and propaganda.

Rodov goes on to explain that her school was finally closed, but no one in the mainstream media in Los Angeles bothered to interview teachers about “the climate of terror at the school.”

She ends with the hope that Biden’s election will mean an end to favoritism towards charter schools and a beginning of focus on public schools, which are a vital democratic institution.

Those of us who are sick of charter school lies and propaganda share her hope. We will know in time whether Biden will keep his promise to cut off federal funding of for-profit charters, whether he will eliminate the $440 million federal Charter Schools Program (which Betsy DeVos used as her private slush fund), and whether he will make the strengthening of public schools his top education priority. Six percent of America’s students attend charter schools, and they are the darling of billionaires like Bill Gates, Reed Hastings, Laurene Powell Jobs, Charles Koch, Michael Bloomberg, and many more (I wrote a chapter in my recent book Slaying Goliath naming the billionaires and corporations that pour money into charter schools). Let the billionaires pay for them.

 

The charter industry is turning its lobbyists loose in Texas. Despite the large number of charters in the state (more than 800), the lobbyists want more. More. More. $$$. The Legislature is now debating changes in state law to remove obstacles to charter entrepreneurs and corporations that want more locations. Texas doesn’t need more charters: Charters in Texas are regularly outperformed by public schools.

The Houston Chronicle reports:

Companion bills filed in the Texas House and Senate, seeking to do away with hurdles facing charter schools that try to open or expand, have bipartisan support but will move the sharp debate over their rapid growth into the legislative arena.

Supporters of Senate Bill 28, called the Charter School Equity Act, say it would level the playing field for new and existing charter schools across the state by preventing local governments from treating them differently from traditional public schools and by relaxing state controls.Advocates for traditional public school districts say the playing field is tilted in favor of charter schools and the way to level it would require more state oversight and local input, not less.

Among other changes, Senate Bill 28 and its accompanying House Bill 3279 would require open-enrollment charter schools to be considered public school districts for the purposes of “zoning, permitting, (subdivision) plat approvals, fees or other assessments, construction or site development work, code compliance, development” and any other type of local government approval.

This would reduce the “red tape” that charter schools face from local authorities after being approved to operate by state officials, the bills’ sponsors say.

It also would make it impossible for cities to act in ways that were advocated by the superintendents of the two largest school districts in Bexar County in 2018, when they suggested San Antonio could use its zoning authority to geographically restrict charter expansion to prevent financial damage to traditional public schools.

“We think charter schools, and open-enrollment charter schools, are good for the state of Texas. That’s the bottom line here,” said the Senate bill’s sponsor, Sen. Paul Bettencourt, R-Houston, in a recent online news conference. “We are simply putting charter schools on the equity they should have. No city should treat charter schools differently than how they treat somebody else…”

“Right now communities have almost no say on whether a charter school comes in or not,” said Kevin Brown, executive director of the Texas Association of School Administrators.

Brown, who led Alamo Heights ISD as superintendent for 10 years, said leveling the playing field should include requiring charter schools to seek voter approval for funding their expansion and to elect their boards.“Anytime a charter school is being considered in a local community, that local community should have a large amount of input,” Brown said. “And right now they just don’t have that. So I think there should be much more transparency at the local level.”If anything, the SBOE should have more input, not less, on any expansion that would result in public school districts sharing taxpayer funds to educate students, Brown added.

Woods, the Northside ISD superintendent, said the bills, in their current form, ignore the public process that all public school districts must go through to fund and build a new campus. Planning takes years, and voters decide if they want to fund it, Woods said. School districts then have to work with cities and counties to assess the impact of construction in certain areas and get the project approved.

“We elect school board members, city council members and county judges to make decisions locally because they know the community,” Woods said. “And this (legislation) is just another example, in a long line of examples, where local control seems not to be prioritized in the Texas Legislature.”

Peter Greene reviewed the Network for Public Education’s report on for-profit charter schools in Forbes, where he is a regular columnist.

He writes:

It has become cliche for politicians and policy makers to oppose “for profit” charter schools. It’s also a safe stance, because most people agree they’re a bad idea; for-profit charter schools are not legal in almost all states. 

But charter school profiteers have found many loopholes, so that while they may not be able to set up for-profit charters, they can absolutely run charter schools for a profit. That may seem like a distinction without a difference, but the difference is that one is illegal in almost all states, and the other, as outlined in a new report, can be found from coast to coast. The new report, “Chartered for Profit,” from the Network for Public Education examines the size and reach of “the hidden world of charter schools operated for financial gain.” (Full disclosure: I am a member of NPE.)

The most common workaround for operating a charter school for profit is a management corporation. In this arrangement, I set up East Egg Charter School as a non-profit; I then hire East Egg Charter Management Organization to run the school, and that is a for-profit operation (known as an EMO).

An EMO is an educational management operator.

In some cases, the school and EMO are enmeshed with each other, sometimes with family ties. In Arizona, Reginald Barr runs a non-profit EMO that manages four charter schools; he also, with his wife Sandra, runs for-profit Edventure, which collects $125 per student for managing the schools. The schools lease property from a company owned by the Barrs and hire another Barr company to handle payroll. The four charter schools are controlled by a single board; Sandra Barr and her mother hold two of the three seats.

Some of these management operations are large scale; the report finds that just seven corporations manage 555 charter schools across the country. But chartering for profit can work on a small scale as well; of the 138 for-profit management companies NPE studied, 73 ran only one or two schools. In other words, the EMO is created specifically to run one particular school, not as a stand-alone business venture...

No matter the scale, “sweeps” contracts are a common tool. The management company provides virtually all of the school’s services (building, maintenance, curriculum, payroll, etc) and may even contract not for a set fee, but, as one EMO contract states, it receives “as renumeration for its services an amount equal to the total revenue received” by the school “from all revenue sources.”

There are other ways to pull profits from these operations. Many charter schools are part of lucrative real estate deals. One audit in New York found that the Diocese of New York was renting a facility to NHA for $264,000 per year; National Heritage Academy (NHA) sublet that space to its charter school $2.76 million. Jon Hage, CEO of Charter Schools USA, also owns Red Apple Development, whose website displays 66 CSUSA schools that Red Apple developed and, in most cases, owns and leases.

Cyber-charters are particularly profitable, with one recent report suggesting that Californians are overpaying cyber charters by $600 million.

Please open the link and read about the vultures feeding on public school money.

The charter industry has set its sights on Montana. This is an odd decision, since the state has no big cities and is almost 90% white. The African American population is less than 1%. The biggest city is Billings, with about 110,000 residents; the second largest is Missoula, which has about 75,000 residents. Montana ranks above the national averages on NAEP.

Montana has two existing charter schools, but the industry wants to make it easier to grow.

Alex Sakariassan of the Montana Free Press reported:

The Montana Legislature once more took up the issue of school choice during a lengthy hearing on a bill that would open the door to public charter schools in Montana.

Speaking before the House Education Committee Wednesday, Rep. Ed Hill, R-Havre, informed fellow lawmakers that Montana is one of only five states in the nation that has not yet embraced charter schools, which are funded by taxpayers but operate independently of the public school system. Hill said he hopes to change that with House Bill 633. The measure would authorize the establishment of such schools in Montana, grant them autonomy over their finances, their curriculum and their staff, and create a new commission and approval framework to oversee those schools.

“This public charter school bill will provide an option for innovation outside our current traditional public school,” Hill said. 

Hill and other speakers noted that legislation similar to HB 633 has been introduced numerous times in the past, specifically during the 2011, 2013, 2015 and 2017 sessions. None of those efforts cleared the Legislature.

“Montanans like choice, and we’re told we have choice in everything we do except when it comes to publicly educating our kids. Somehow when it comes to public education, we’re told, ‘No, that square peg is going to fit in that round hole or we’re going to make it.’”

ATTORNEY GENERAL AUSTIN KNUDSEN

Throughout the more than two-hour discussion, supporters framed charter schools as giving Montana parents and students more choices in K-12 education

Public school supporters opposed the bill.

Opponents countered that HB 633 would stretch education funding in Montana and build a parallel and duplicative school system to the one currently overseen by the Board of Public Education. Amanda Curtis, president of the Montana Federation of Public Employees, said that would equate to “growing government.” The issue was also addressed in a legal review note compiled by the Legislative Services Division, which said HB 633 could raise constitutional questions related to the BPE’s authority over public schools. Curtis also highlighted concerns about how the bill would ensure adequate oversight of newly established charter schools...

Curtis’ opposition was echoed by several other major public education associations, including the Montana School Boards Association and the School Administrators of Montana. BPE Executive Director McCall Flynn testified that charter schools established under HB 633 would be exempt from the licensing and accreditation standards required of public schools. Flynn added that an administrative rule adopted by the board in 2012 already allows for the formation of charter schools, citing the presence of the Bridger Charter Academy in Bozeman.

“This bill is unnecessary,” Flynn said. “The Board of Public Education already has a process in place to establish public charter schools.”

As the discussion turned to members of the committee, several lawmakers tried to gain a better grasp of the scope of HB 633’s impacts. MTSBA Executive Director Lance Melton fielded numerous questions about the financial implications a charter school system would carry. He noted that, as written, the bill would grant a separate basic entitlement to new charter schools, meaning those schools would draw money directly from Montana’s education budget. Depending on the number and size of such schools that crop up, Melton said, the added funding obligation to the state could run into the hundreds of millions of dollars.

Keila Szpaller wrote in the Daily Montanan about the legislative debate.

Its leading opponent is Rep. Wendy McKamey, a Republican legislator, who insisted that families have plenty of choices already.

Opponents…said the bill is riddled with shortcomings and saddles taxpayers with higher costs.

For example, it could add $321,000 in public cost for each new high school in the state, according to the Montana School Boards Association. At the same time, it would take away a requirement that schools teach students with special needs or pay employees prevailing wages, according to the Montana Federation of Public Employees. And it would remove minimum teacher licensing standards, according to the Montana Board of Public Education.

“It’s my understanding that we wouldn’t want anyone off the street coming into our homes to do plumbing,” said McCall Flynn, executive director of the Board of Public Education. “Nor should we expect someone without any kind of educator preparation to teach our children in our public schools, even if that is a public charter school…”

Several representatives from Montana’s education associations argued against the bill, but they weren’t the only opponents. Kim Mangold, with the Montana Farmers Union, said students who attend rural schools in Montana are a vulnerable population.

Rural schools are critical to the largest farming and ranch organization in the state, Mangold said: “These schools are the lifeblood of rural Montana.”

“This act has the potential to remove resources from public schools, especially rural public schools, that are important to farm and ranching today,” Mangold said.

Lance Melton, with the Montana School Boards Association, explained the potential costs to both state coffers and local property taxpayers given the “technically flawed way” the bill was written. In short, he said it would require an elementary charter school with even just one pupil to receive $53,000, or a high school with just one student to receive $321,000.

If every Class I and II district in the state was converted into a series of public charter schools of 200 students each, the bill would end up costing the state of Montana $350 million — an estimated 25 percent on top of the money already going to fund all K12 public education, he said.

“You’d have a nice little gift-wrapped surprise when you arrived in the next legislative session if and when this was to occur,” Melton said of the extra costs.

A very bad bill for Montana that could blow a hole in the state budget and break up communities while enriching charter operators and corporate charter chains. If Montanans are conservative, they will reject this bill.

Thanks to reader “Montana Teacher” for sending these links.


Valerie Strauss of the Washington Post reviews the Network for Public Education report on for-profit charters, which explains how such money-grabbers function in states where they are supposedly illegal. Arizona is the only state where for-profit charters are legal, yet the report says they operate in 26 states and D.C. In Florida and Michigan, the majority of charters are run by for-profit companies.

Strauss points out that Joe Biden promised to cut off federal funding to for-profit charters. Here is a road map he can use to keep his promise.

She writes:

Now a new report, titled “Chartered For Profit: The Hidden World of Charter Schools Operated for Financial Gain,” details how many for-profit management companies (referred to as EMOs) evade state laws banning for-profit charters.


They set up nonprofit schools and then direct the schools’ business operations to related corporations. For example, it says, one of the largest EMOs, National Heritage Academies, “locks schools in with a ‘sweeps contract’ where virtually all revenue is passed to the for-profit management corporation, NHA, that runs the school.”


“In other cases, the EMO recommends their own related companies for services that include leasing, personnel services, and curriculum,” it says.


The report was produced by the Network for Public Education, an education advocacy group that opposes charter schools. It was written by Carol Burris, executive director of the Network for Public Education and a former award-winning New York principal, and Darcie Cimarusti, the network’s communications director.


The authors wrote that despite “strict regulations against the disbursement of funds from the federal Charter Schools Program (CSP) to charter schools operated by for-profit entities,” they identified more than 440 charter schools operated for profit that received grants totaling approximately $158 million between 2006 and 2017.


They also found that fewer disadvantaged students, proportionally, attend charters run for profit than at traditional public schools.


“Comparing the five cities with the most for-profit charter schools (by the proportion of students attending these schools) revealed that in all but one city — Detroit — for-profit run charters served far fewer students who are eligible for free or reduced-price lunch,” the report says. “In all cities, for-profit-run schools serve fewer students who receive services” under the federal Individuals With Disabilities Education Act.


Charters schools are publicly financed but privately operated. About 6 percent of U.S. schoolchildren attend charter schools, with 44 states plus the District of Columbia, Guam and Puerto Rico having laws permitting them.


Charter advocates say that these schools offer choices to families who want alternatives to troubled schools in traditional public school districts. Critics say that charter schools take money from public districts that educate most American children and are part of a movement to privatize public education.
This report is the third on federal funding of charter schools that the Network for Public Education has published since 2019. The earlier reports chronicle the waste of hundreds of millions of taxpayer dollars on charter schools that did not open or were shut down — and revealed that the U.S. Education Department failed to adequately monitor federal grants to these schools. You can learn about the first two reports here and here.


For years, charter schools enjoyed bipartisan support — and were backed by the administrations of presidents George W. Bush, Barack Obama and Donald Trump. But more recently, many Democrats have become skeptical of the charter movement, especially those schools that are operated or managed by for-profit entities — and Biden has vowed to stop federal funding for-profit charters.


But what is a for-profit charter?
“The term ‘for-profit charter school,’ while commonly used, does not accurately describe the vast majority of charters designed to create private profit,” the new report says.


While only one state — Arizona — legally allows for-profit entities to be licensed to operate charter schools, for-profit entities find ways to set up schools in states that only allow nonprofits to operate, it says.
The new report explains that typically, an EMO would find individuals interested in operating a charter school and then help “them create a nonprofit organization and apply for a charter license.”


Then, the board of the nonprofit group “enters into a contract with the for-profit EMO to run the school,” the report says. For-profit owners “maximize their revenue through self-dealing, excessive fees, real estate transactions, and under-serving students who need the most expensive services,” the Network for Public Education says.


Between September 2020 and February 2021, the authors said they identified more than 1,100 charter schools that have contracts with one of 138 for-profit organizations to control the schools’ key — or total — operations, including management, personnel and curriculum...

The report’s authors make recommendations to the U.S. Education Department and states regarding charters that are operated for profit, including:


• The Education Department “should conduct an extensive audit of present and former grantees to ascertain compliance with all regulations that define the for-profit relationship.”

• The federal government “should define a for-profit charter school as a school in which more than 30 percent of all revenue flows directly or indirectly to for-profit vendors.”

• All states should “follow the lead of Ohio by listing the management providers and posting their contracts with charter schools. To that information, the profit status of the EMO should be added.”

• Sweeps contracts should “be outlawed in every state.”• Related corporations of for-profit and nonprofit management companies should “be prohibited from doing business with their managed charter schools.”

• All charters should “be held by the school or campus itself, and not by a nonprofit subsidiary.”• A national database should “be developed that lists all charter EMOs and their corporate status (for-profit or nonprofit), along with their address and the name(s) of the private corporation’s owner(s).”