As a new year begins, and as a new administration prepares to take charge of the U.S. government, our fight to support and improve public education goes on.
The Network for Public Education is and will continue to be the single largest voluntary group advocating on behalf of public schools. We had humble beginnings, starting with a bank account of a couple of thousand dollars and a board of enthusiastic parents and educators. We now have a full-time executive director (Carol Burris) who is helped by three amazing part-time workers.
We are not like the City Fund, which opened its doors in 2018 with $200 million in the bank (thanks to billionaire John Arnold and billionaire Reed Hastings). The City Fund exists to push high-stakes testing and to destroy community-based, democratically-controlled public schools. It has no members; we have about 350,000 who work with us. The “reformers” have tons of money and malevolent intentions.
Last year, we issued two bombshell reports that showed the failure of the federal Charter Schools Program, which doles out $440 million every year, mostly to corporate charter chains. We discovered and documented–using U.S. Department of Education data–that about 35-40 percent of the federally funded charters either never opened or closed not long after opening. They are the day lilies of American education, and they waste money that should go to support under-resourced public schools.
We published a report about the 1,200 or so charters that double-dipped into CARES funds intended to save small businesses. The charters, whose funding from public sources, never ceased, collected from $1-2 Billion from the Paycheck Protection Program. All of the data are available in public sources, but you have to know where to look to see that some very savvy charters and charter lobbyists cleared huge sums of PPP money (some collected $1 million or more) while public schools each collected only about $134,500.
We will continue to support real public schools, the kind that are publicly accountable to public officials. We will push the Biden administration to regulate or eliminate the federal Charter Schools Program and stop funding failure. We will fight against high-stakes testing and the misuse of standardized tests.
We will demand a suspension of federally mandated testing this spring and turn our energies toward removing the federal mandate for annual testing, which has manifestly failed to provide equity or excellence. We will remind the public that tests do not reduce achievement gaps; they are measures, not remedies. Mainly, they measure family income. Why waste hundreds of millions of dollars measuring family income?
Yes, knowledge is power, and we generate the knowledge you need to fight for public schools as the democratic institution that they are.
We welcome your financial support. Whatever you want to give, we are grateful.
The answer is that Cardona will do what Joe Biden and Dr. Jill Biden want him to do.
He remains an unknown quantity. The only thing we know for sure is that he will roll back whatever damage DeVos did in her four year tenure.
Will he grant waivers from the federally mandated standardized tests this spring?
Will he seek to roll back 20 years of failed education policy?
Will he pare back or ask Congress to eliminate the federal Charter Schools Program, which hands out $440 million every year to start new charters? CSP started during the Clinton administration with the intent of helping little teacher-led or mom-and-pop charters get a start. It has since turned into a behemoth that helps corporate charter chains like KIPP, Success Academy, and IDEA expand.
No, this was Education Secretary Betsy DeVos’s plea to Education Department staffers as she ends her term in office. As reported in The Hill, she specifically implored them to “Be the resistance against forces that will derail you from doing what’s right for students.” DeVos evoking the language of progressive activism is rich – almost as rich as DeVos herself.
She has gotten scant attention in the chaos of these last days. It seems unjust to allow her to go so quietly from the party. It is only in the shadow of Bill Barr, Scott Pruitt, Michael Flynn, Wilbur Ross, Steve Bannon, Paul Manafort, Mike Pompeo, Ben Carson, Stephen Miller and many others that DeVos’s breathtaking awfulness would go uncelebrated.
I am here to right that wrong.
As with other Trump appointees, her most luminous qualification for the position was absolute disdain for the mission she was tapped to lead. She had demonstrated decades of hostility toward public education and her antipathy has continued unabated on the job.
Her educational “philosophy” is built on several premises that have informed her life’s work.
Her education activism and support of reform are, in her words, “a means to advance God’s Kingdom.” She has proclaimed that “the system of education in the country . . . really may have greater Kingdom gain in the long run.” To this end she has been a tireless advocate for voucher programs which allow parents to use tax dollars for their children’s enrollment in religious schools. In Florida, for example, 80% of vouchers, to the tune of $1 billion, go to religious schools, where evolution is just theory, gay students are unwelcome and every course is offered through a Christian lens.
Her advocacy for charter schools is built on the second premise: Profit is a divine right and any budding entrepreneur who can walk and chew gum is qualified to give education a shot. In her home state of Michigan this has resulted in a checkerboard of charter schools that fail as often as Trump casinos and where the odds of getting a good education are like playing the roulette wheel. The shifting of public money to charters has hollowed out the public system in Detroit, for example, where kids of color are often shuffled to and from a half dozen startups and shutdowns in just one school year. To extend the simile, it’s a bad deal for children.
This manifestation of her “activism” seems very much like the source of her immense wealth: Amway. The very American Amway system also allows any budding entrepreneur who can walk and chew gum to give Amway a whirl. The odds of success are similar to the odds of success for charter startups – meaning very low indeed. Unless, of course, you are at the top of the pyramid. Every sucker who loses is a gain for the house.
Amway aside, her business acumen is a bit suspect. She was a major investor in Theranos, a remarkable scam whose founder is facing felony counts of fraud. She and her husband are also up to their corrupt ears in another corporate scam, Neurocore, which has been charged for using unapproved (FDA) devices and deceptive (FTC) marketing. As a kicker, they invested in a Broadway show that closed after three weeks. Like her patron saint Trump, it’s just so much winning.
I would be remiss if not pointing out that she is, in these respects, an iconic representative of the contemporary Grand Old Party which is committed to the same principles: that we are a Christian nation and that everything done for private profit is de facto better and more efficient than anything done for public good.
A few other highlights:
She supports using federal funds to arm teachers.
She dramatically altered Title IX to give more rights to boys and men accused of sexual misconduct and to significantly limit the authority of educational institutions to support women or use their own discretion.
In her confirmation hearing, she knew nothing about the Individuals with Disabilities Education Act (IDEA), saying states should do whatever they want.
She called historically black colleges and universities (HBCUs) “pioneers of school choice,” seeming to miss that they were the result of segregation and that they were founded because black students had no choices. It’s like admiring a particularly fine porcelain drinking fountain in Jim-Crow-era Alabama and praising it as a pioneer in hydration choice.
President-elect Biden has selected Dr. Miguel Cardona to replace DeVos. He is a vast improvement. For those who continue to work in the Department of Education, we must say, “Resist!”
Joe Biden was very clear about his position on privately managed charter schools during the campaign.
In this video, he was asked by Lily Eskelsen Garcia what he would do about charter schools, and his position was clear: Charter schools should not be funded at the expense of public schools. No federal funds for privately funded charter schools. Charter schools should be subject to the oversight and governance of school boards. Charter schools should be held to the same standards of transparency and accountability as public schools.
Wendy Lecker is a civil rights attorney who writes frequently for the Stamford Advocate. In this column, she reviews two important books: One shows how deeply embedded public schools are in our democratic ideology, the other describes that coordinated assault on the very concept of public schooling. The first is low professor Derek Black’s Schoolhouse Burning, the other is A Wolf at the Schoollhouse Door, by journalist Jennifer Berkshire and historian Jack Schneider.
Lecker writes:
In his scrupulously researched book, Derek Black emphasizes that the recognition that education is essential to democracy predated public schools and even the U.S. Constitution. He describes how the Northwest Ordinances of 1785 and 1787, which applied to 31 future states, mandated funding and land for public schools, declaring that education was “necessary to good government and the happiness of mankind.” Education was not explicitly included in the U.S. Constitution. However, after the Civil War, the United States required Southern states guarantee a right to education in their state constitutions as a condition for readmission. Northern states followed suit. State education articles were based on the notion that education was necessary to citizenship and democracy.
These lofty ideals were often not matched by reality. Enslaved African Americans neither had their freedom nor education. However, African Americans recognized early on that education was the key to full citizenship, and fought for the right to equal access and treatment for all. For Black, the struggle of ensuring equality in public education is intertwined with the struggle for political equality.
Black posits that attacks on public education throughout American history are attacks on democracy itself. Recent events prove his point. For example, Rutgers’ Domingo Morel showed that when majority African-American elected school boards won gains such as increased school funding, states took over those school districts, neutralizing the boards’ power. Northwestern’s Sally Nuamah found that in Chicago, where there is no elected school board, the city’s closure of 50 schools in one year despite protest by the African-American community decreased political participation by that community afterward.…
“A Wolf at the Schoolhouse Door” complements “Schoolhouse Burning” by detailing the specific mechanisms those who attack public education have employed in recent years. In this eminently readable book, the authors describe the “unmaking” of public education and the players behind this effort. They explain how the attacks on public schools are part of a larger effort shrink government and in general what the public expects from the public sphere. One target is the largest part of any education budget: teachers. Anti-public education advocates have pushed cutting state spending on education, attacking job protections, de-professionalizing teaching, weakening unions and promoting failed educational ideas like virtual learning- where teachers are replaced by computers. These “unmakers” also aim to deregulate education, including expanding unaccountable voucher and charter schools.
Schneider and Berkshire demonstrate that attacking public education has also torn at the social fabric of America. Attacking unions weakened the base for democratic electoral support. Deregulation resulted in the gutting of civil rights protections for vulnerable students in charter and voucher schools.
Put them both on your Christmas-Chanukah-Kwanzaa shopping list. They are important wake-up calls.
President-Elect announced that Bruce Reed will be his Deputy Chief of Staff. This is alarming news, though not surprising. Reed previously served as Biden’s chief of staff when he was vice president. The toxic Broad Foundation gave grants to some of Betsy DeVos’s favorite causes.
This report from TYT (The Young Turks) describes why we should keep a close watch on Reed. He is not a friend of public schools. The Broad Foundation has spent many millions of dollars underwriting charter schools and funding campaigns for candidates who oppose public schools. Eli Broad has tried to buy control of LAUSD to replace more public schools with charters.
Reed has been an outspoken proponent of charter schools for decades, championing their rise inside the Clinton White House, where he led the Domestic Policy Council. But although Reed has publicly drawn the line at for-profit charter schools and vouchers, the Broad Foundation funded organizations that support both.
Reed also frowned on community, or “mom-and-pop” charter schools, telling the Los Angeles Times in 2014, “There are high-quality charter management organizations that do extraordinary work.” He said, “School districts have made the mistake of thinking they know best.”
Pressed about Eli Broad’s controversial donations to pro-charter candidates for Los Angeles school boards, Reed said, “My general experience with political elected bodies is that the odds of them being thoughtful and well informed are never very good.”
It’s not clear how involved Reed was in directing the foundation’s funds, but in his L.A. Times interview, Reed named some of his allies. “We’re looking to partner with other like-minded foundations — Bloomberg, Gates, Walton, the Emerson Collective,” he said. (The Emerson Collective is a project of Laurene Powell Jobs.)
Reed did not name Dick and Betsy DeVos, but they had spent years building alliances with Democrats interested in education reform. Eli Broad, a Democrat, had sat alongside Dick DeVos on the Children’s Scholarship Fund advisory board co-chaired by John Walton. And although Broad in 2017 publicly opposed DeVos’s nomination to lead the Dept. of Education under Trump, he and Reed were backing her groups just a couple years before.
DeVos Connections
The Broad Foundation had already been funding groups tied to the DeVos family when Reed came on board in November 2013.
The Alliance for School Choice, for instance, was an early proponent of charter schools, including for-profits. A partner of Betsy DeVos’s American Federation for Children, the Alliance’s founding board included both her and Walton.
Soon after the Alliance launched, the DeVoses reached out to Sen. Cory Booker (D-NJ), who was then a Newark City Council member. Booker joined the group and found common cause with the DeVoses. The board has also included Carrie Walton Penner, the Walton Family Foundation chair who was reportedly close to Hillary Clinton.
I recently received a letter from a teacher in Chester-Upland, Pennsylvania. I have written about this district many times, as a large charter company owned by a Philadelphia lawyer is draining it of resources and students for his low-performing charter school. The district is like a lamb led to slaughter, with rapacious wolves ready to gobble it up. See here and here and here and here. See Carol Burris on the takeover of the district here. See Peter Greene on the evisceration of the Chester-Upland schools here (also posted on the blog here).
In case you think that Chester Community Charter School is “helping save poor students from failing public schools,” consider that only 7% of the charter’s students were proficient in math, compared to a state average of 45%, and only 17% of its students were proficient in reading/language arts, compared to a state average of 63%.
Why would state and county officials permit a failing for-profit charter school to take over an entire public school district? Is it because the district is overwhelmingly low-income and black and no one cares?
The teacher asked to remain anonymous for obvious reasons.
He wrote:
My name is XXXXXXXXXX, and I’m a teacher in the Chester Upland School District, which is located in Chester, Pa. Chester is a predominately black, low income, high crime area. We have had 3 students murdered this year, and several others shot. Even though it is a dangerous area, I wouldn’t want to work anywhere else because I love the kids, and I want them to succeed. But our leaders are greedy, and our district is going to be sold off to charter schools if we don’t receive some sort of help.
Here is an overview of what has been taking place:
It seems that the entire district is going to be run by one or several different charter schools which would dissolve all public schools in the city. Besides New Orleans, this is almost unheard of in our country.
A few months ago, the district hired a new superintendent with a checkered past. She was recently fired from her position in New Haven, Conn., which you can read about here:
It seems that it is quite a coincidence that Dr. Birks is also a supporter of charter schools. She also became one of the highest paid superintendents in the state which is surprising considering her history and the financial state of the district.
Our school board is being paid by charter schools; there doesn’t seem to be any other explanation. One school board member put out a flyer last December, recruiting community members to come to the courthouse to support the charter schools. Those community members that agreed to show up were provided dinner afterwards, and had their names put into a raffle to receive free TV’s and other devices. It’s hard to see this as anything other than a conflict of interest.
On January 14th, 2021 RFP’s (Request for Proposals) will be held for charter schools to show why they should take over schools in the district. Unfortunately the review board for the RFs is filled with charter school supporters. The community hasn’t had any input about this process. Here are the board members:
Anthony Johnson the board president, receiver Dr. Juan Baughn, Fred Green (who is a board member that rarely attend meetings, and charter advocate for CCCS), Lamont Popley (during the board meeting on December 17th, Baughn said Mr. Lamont Popley was a member of the review board, he’s the principal at Toby Farms. His staff members asked him about this and he said this was the first he heard about being on the review board. He said he hadn’t spoken to Baughn since the spring), 2 other board members, plus Leroy Nunery (former consultant for the school district of Philadelphia’s charter school office), and Jack Pund (he sits on the board of several charter schools, including Agora.)
This would not happen in a white school district. This is racially motivated. This poor community is being taken advantage of, and being sold to the highest bidder, and no one cares. If this community wasn’t poor, and black, people would be outraged with what is going on. But no one is helping. We need help.
Andrew Ujifusa explains here what the latest COVID relief bill contains for education. Republicans refused to fund cities and states, which supply most of the funding for schools. They also insisted on setting aside $2.75 billion specifically for private schools. It remains to be seen whether charter schools will double dip into both the public school money and the money set aside for small businesses, as they did in the previous COVID relief.
K-12 schools would receive about $57 billion in direct aid under a new $900 billion federal COVID-19 relief deal reached over the weekend by congressional negotiators.
The vast majority of that amount, $54.3 billion, would be for public schools in an education stabilization fund, and 90 percent of that must ultimately go to local school districts, including charter schools that function as districts. According to the legislation, schools could use the relief to address learning loss, to improve school facilities and infrastructure to reduce the risk of transmitting the coronavirus, and to purchase education technology. This funding would be available through September 2022.
Education organizations that have long pushed for additional aid for schools grappling with the effects of the pandemic characterized the bill, which is much smaller than some previous proposals, as a down payment. President-elect Joe Biden has suggested he will pursue an additional relief deal after his inauguration.
The legislation does not include more funding for the E-Rate program that supports internet service for schools and libraries. The bill does provide $3.2 billion to an emergency broadband connectivity fund.
There is also $4.1 billion in a fund for governors to direct to both K-12 and higher education. Of that fund, $2.75 billion is reserved for private schools. This funding cannot be used to support tax-credit scholarships, vouchers, and other forms of school choice. Private schools seeking this aid must agree not to obtain additional funding from the Paycheck Protection Program. In addition, private schools that serve low-income students and have been “most impacted” by the virus are supposed to get priority for this funding.
The aid included in the bill “will help states deliver safe, high-quality education, expand access to technology, and recover academic learning loss,” Carissa Moffat Miller, chief executive officer of the Council of Chief State School Officers, said in a statement.
The deal does not include relief for state and local governments, a major source of contention during COVID-19 negotiations; a large portion of such aid would end up benefiting K-12 school budgets.
The bill says states must agree to maintain a certain level of education funding that’s proportional to prior funding levels, in order to receive the aid; however, the secretary of education may waive this requirement for states experiencing a “precipitous decline in financial resources.”
Ronn Nozoe, chief executive officer of the National Association of Secondary School Principals, called the agreement “woefully inadequate as the final word on COVID relief for schools.” The organization had pushed for $175 billion for K-12 relief and $12 billion for the E-rate program.
“Budgets are shrinking while needs are expanding from the pandemic,” Nozoe said in a statement. “Schools need funding not just to stabilize budgets shaken by local economies, but to accelerate learning after the pandemic. Unless Congress gets serious for the long term about supporting their own public schools, we’ll be cutting into bone—fewer teachers, larger classes, and less social support for kids at precisely their time of greatest need.”
While praising new funding for schools and vaccine distribution, American Federation of Teachers President Randi Weingarten faulted Senate Majority Leader Mitch McConnell for “obstructing the resources states and localities need to respond to the pandemic.”
“I worry that the package will be grossly insufficient to alleviate the hardships so many Americans are suffering,” she wrote in a column posted on the union’s website.
Congress was expected to approve the package Monday and send it to President Donald Trump for his signature. Unlike previous proposals by GOP lawmakers backed by Trump, the new deal does not require schools to hold in-person learning to receive aid.
Educators have been pressuring Washington for months, ever since the CARES Act became law, for more relief.
Although a large share of schools have reopened for in-person instruction, many in the education community say that schools need additional aid to address ailing HVAC systems, implement COVID-19 mitigation measures, and shore up shaky budgets amid fiscal uncertainty.
President-elect Joe Biden is set to nominate the commissioner of public schools in Connecticut as his education secretary, settling on a low-profile candidate who has pushed to reopen schools and is not aligned with either side in education policy battles of recent years, two people familiar with the matter said Monday.
Miguel Cardona was named Connecticut’s top schools official last year and if confirmed will have achieved a meteoric rise, moving from an assistant superintendent in Meriden, Conn., a district with 9,000 students, to secretary of education in less than two years.
He was born in Meriden to Puerto Rican parents who lived in public housing. He began his career as a fourth-grade teacher and rocketed up the ranks, becoming the state’s youngest principal at age 28. He was named the state’s principal of the year in 2012...
A finalist for the job was Leslie Fenwick, former dean of the Howard University School of Education and a fierce critic of education policies such as test-based accountability for schools and teachers who have been popular with centrists in both political parties.
Cardona represented a safer selection. He does not appear to have been a combatant in those education wars, though he did challenge teachers unions as he worked to reopen schools this fall.
Democrats who support accountability-type education changes, concerned that Fenwick would get the job, lobbied for Cardona, and although he is not a leader from their faction, his selection marks a win for them. The Congressional Hispanic Caucus also endorsed him in recent days.
So this much is clear. Biden rejected the progressive candidate, Dr. Leslie T. Fenwick. However, Dr. Cardona is not a Broadie, not a DFER favorite, not a member of Jeb Bush’s “Chiefs for Change.” All of this is good news. We know that these fake “reformers” lobbied hard for one of their own. They lost. That’s good news too.
Dr. Cardona has not taken a position on the major issues that define the major education policy battles of the past two decades. He has been critical of excessive testing, but does not oppose the use of standardized testing on principle. He has been critical of test-based evaluation of teachers (a major element of Race to the Top), because he knows that it doesn’t work. He is neither for nor against charter schools, even though Connecticut experienced some of the worst charter scandals in the nation (think the Jumoke charter chain), is the home base of the Sackler-funded ConnCAN (which morphed into 50CAN, to spread the privatization movement nationally), and is the home base of Achievement First, one of the premier no-excuses charter chain, known in the past for harsh discipline (three in the AF chain are currently on probation, despite their high test scores). The fact that three of the politically powerful AF no-excuses charters are on probation is a hopeful sign that he intends to hold charters to the same standards as public schools.
Having read his Twitter feed (@teachcardona), I get the impression that he is a very decent and concerned administrator who cheers on students and teachers. He has not weighed in on political issues that roil the education policy world.
I am still hoping for a Secretary who recognizes that the past twenty years have been a nightmare for American public schools, their students, and their teachers. I am still hoping for someone who will publicly admit that federal education policy has been a disaster since No Child Left Behind and its kissing-cousin Race to the Top, modified slightly by the “Every Student Succeeds Act.” Maybe Dr. Cardona will be that person. We will see.
I believe that the federal government has exceeded its competence for twenty years and has dramatically overreached by trying to tell schools how to reform themselves when there is hardly a soul in Washington, D.C., who knows how to reform schools. Our nearly 100,000 public schools are still choking on the toxic fumes of No Child Left Behind, a law that was built on the hoax of the Texas “miracle.” We now know that there was no Texas miracle, but federal and state policymakers still proceed mindlessly on the same simple-minded track that was set into law in 2001.
Perhaps Dr. Cardona will introduce a note of humility into federal policy. If so, he will have to push hard to lift the heavy hand of the federal government. Twenty years of Bush-Obama-Trump policies have squeezed the joy out of education. Many schools have concentrated on testing and test-prepping while eliminating recess and extinguishing the arts. As an experienced educator, Dr. Cardona knows this. He will be in a position to set a new course.
If he does, he will push back against the mandated annual testing regime that is not known in any nation with high-performing schools.
If he intends to set a new course, he will grant waivers to every state to suspend the federal tests in 2021.
If he intends to set a new course, he will ask Congress to defund the $440 million federal Charter Schools Program, which is not needed and has proved effective only in spreading corporate charter chains where they are not wanted. Two NPE studies (here and here), based on federal data, showed that nearly 40% of the charters funded by the federal CSP either never opened or closed soon after opening. More than $1 billion in federal funds was wasted on failed charters. Let the billionaires pay for them, not taxpayers, whose first obligation is to provide adequate funding for public schools.
Further, if he wants genuine reform, he will begin the process of writing a new federal law to replace the Every Student Succeeds Act and dramatically reduce the burdens imposed by clueless politicians on our nation’s schools.
Dr. Cardona is known for his efforts to reopen the schools during the pandemic. He knows that this can’t happen without the resources to reopen safely. The pandemic is surging again. It is not over. He knows this, and he will have to move with caution not to put the lives of staff or students at risk.
I will not judge him until I see how he handles not only the present dire moment, but the legacy of twenty years of failed federal policy. I am hoping to be pleasantly surprised. Hope springs eternal. We can’t live without it.
The federal CARES Act included the Paycheck Protection Program to help struggling small businesses and nonprofits survive the pandemic. Lobbyists for the charter industry slipped in a provision enabling charter schools to apply for PPP funding, even though they experienced no financial losses. Charter schools got a share of the $13.2 billion allotted to the nation’s early 100,000 public schools. The average public school received about $135,000 to meet the expenses of the pandemic. On the advice of their lobbyists, some 1200 charters also sought and won PPP funding. Thus charters drew funding from two sources; public schools were not eligible for PPP funding. Charters that applied for PPP funding won six times as much federal money as public schools.
Primavera online charter school, like many businesses this spring, sought help from the federal Paycheck Protection Program to weather the economic disruption of the COVID-19 pandemic.
The Chandler-based school received a PPP loan of nearly $2.2 million, the largest forgivable loan among the 132 Arizona charter schools that obtained them.
But Primavera’s loan appears to have been more of a bonus than a lifeline.
The school, which like all Arizona public schools didn’t lose state funding because of the pandemic, ended its fiscal year on June 30 with $8.8 million in the bank — almost double the annual payroll costs for its 85 teachers, records show.
The school also shipped $10 million to its lone shareholder: StrongMind, an affiliated company owned by Primavera’s founder and former CEO Damian Creamer.
The school’s annual audit indicates Creamer controls both Primavera and StrongMind, noting he has “the ability to influence the school’s operations for the benefit of StrongMind.” Primavera paid StrongMind nearly $23 million this past fiscal year for software and curriculum services, records show.
Creamer declined to comment.
An Arizona Republic review of more than 100 charter school financial records, audits and federal Small Business Administration documents found the overwhelming majority of the Arizona charter schools that obtained PPP loans didn’t need the money.
John Todd, a longtime auditor of Arizona charter schools, said there are numerous problems with fully funded charter schools getting PPP loans intended to help struggling businesses.
“The PPP loans are taxpayer dollars intended to help the needy, not the greedy,” Todd said.
A few charters, including Legacy Traditional Schools, repaid several million dollars worth of PPP loans after The Republic reported in August that Legacy and other operators had millions of dollars in the bank when they received loans.
Most charters that got loans didn’t need them
The Republic found that most of the charter schools getting PPP funds padded their cash balances (savings accounts), and a few for-profit charter operations, like Primavera, gave money away to shareholders that matched or exceeded their PPP loan amounts.
Further, The Republic found that PPP loans didn’t significantly enhance teacher pay at schools that received them. The 132 Arizona charter school loan recipients, on average, paid their teachers several thousands dollars less than the statewide average.The 132 charter schools receiving PPP loans increased teacher pay by an average of 5% — an amount similar to all 555 charter operations and 263 school districts.
Arizona public schools saw no major job losses or layoffs this year because the state Legislature fully funded schools and gave them additional money to raise teacher pay.
Creamer is among the prominent figures who’ve made millions of dollars operating Arizona charter schools. His online alternative school boasts more than 20,000 full- and part-time students. Primavera paid Creamer $10.1 million in 2017 and 2018.
A spokesman for StrongMind declined to say how much the company paid Creamer.
Ian Kidd, superintendent of Pima Prevention Partnership, said financially strong charter schools that took PPP loans open themselves to criticism and scrutiny.
“I don’t subscribe to making money off of students. It’s not appropriate,” Kidd said.
Kidd said he obtained PPP loans for his three charter schools, but the money was used to cover social and behavioral services for low-income, at-risk kids. His three charters had a combined negative $7,031 in cash balances, even after getting PPP loans.
The SBA, under pressure from news outlets, recently released specific figures for all PPP loan recipients. Previously, it released only the names of the borrowers and loan ranges above $150,000.
The earlier SBA records had indicated about 100 Arizona charter schools had received up to $100 million in PPP loans. The new data shows about 30 more charter schools got loans.
Several watchdog groups, including Accountable.Us, have panned the loan program for enriching companies that didn’t need the money while shutting out many minority- and women-owned businesses.
Kyle Herrig, president of Accountable.Us, which compiled a database of all PPP recipients, said there has been widespread fraud and abuse of the program, including celebrities and wealthy companies getting loans.
“The Trump administration’s faulty design and mismanagement of the Paycheck Protection Program let thousands of mom-and-pop businesses slip through the cracks without adequate aid while charter schools cashed in,” Herrig said…
Arizona Schools Superintendent Kathy Hoffman, who also is a member of the Charter Board, said she was astonished by The Republic’s findings.
“It saddens me those dollars are not going to students,” she said. “It’s very excessive. These dollars should be going where they are needed most, and that’s the students and instructional needs.”
Hoffman, a Democrat, said Republican Gov. Doug Ducey and the GOP-controlled Legislature should consider reducing state funding for full-time virtual charter schools like Primavera, which receives nearly the same per-student funding as brick-and-mortar schools that have more costs.
Ducey, at a news conference Wednesday, declined to answer questions regarding Hoffman’s proposal. He also declined to answer whether charter schools that received the PPP loans should return the money or have their state funding reduced by an amount equal to the loans.
Ducey said the PPP loans were a federal issue, but added: “I want to make sure all public schools have available funding.”
Creamer has been a major political donor to Ducey, records show.
Creamer spent at least $137,650 during the past two elections to mostly help conservative Republicans retain control of the Legislature. Among his political giving was $50,000 in December 2019 to the Republican Legislative Victory Fund, state campaign finance records show.
There has been no significant effort by Republicans in the Legislature to change the funding formula for online charter schools. A few of those lawmakers have financial interests in charter schools…
Paying shareholders, boosting reserves
In addition to Primavera, at least three other charter school operators that received PPP loans paid distributions to shareholders. Most of the rest put large sums in savings.
• The year-end cash balance for the 132 Arizona charter schools that received $51.8 million in PPP loans in April and May, increased by $62.6 million. Individually, cash balances increased for 87% of the loan recipients.
• Twenty-one charter schools that received PPP loans increased their cash reserves by at least $1 million, with Primavera seeing a $3.3 million increase.
Educational Options Foundation of Peoria, which got a $278,292 loan, saw its cash balance increase by $2 million to $13.7 million. The school has enough money to operate for four years without additional money. The state Charter Board only requires schools to have one month of cash liquidity. A call to the school was not returned.
• For-profit charters Humanities and Sciences Academy in Tempe and Accelerated Learning Center in Phoenix made shareholder distributions of $388,770 and $230,000 this past fiscal year, respectively. Both amounts exceed the charters’ PPP loans.
The Montessori Schoolhouse of Tucson gave a shareholder distribution of $92,372, equal to about 72% of its PPP loan.
Calls to the three schools were not returned.
Jim Hall, a former public school administrator who runs Arizonans for Charter School Accountability, compiled financial records from charter schools that received PPP loans and said he concluded that they didn’t need the money.
Hall said those loans should have gone to small businesses that have struggled to make payroll or mortgage payments. He said several of the charter operators engaged in “unmitigated greed.”
Diane Ravitch's blog 