An organization called the Ben Gamla Charter School Foundation wants to open a virtual Jewish religious charter school in Oklahoma.
The story is not as straightforward as it appears.
Behind the Florida-based Ben Gamla charter chain is a for-profit management company called Academica, which derives huge annual profits from its connection to more than 200 charter schools across the nation.
There are fewer than 9,000 Jews in the state of Oklahoma, and they are not clamoring for a Jewish charter school.
The state charter board twice rejected the Ben Gamla application, because a previous appeal for a Catholic online charter school was turned down by Oklahoma state courts, then by a 4-4 decision in the U.S. Supreme Court because Justice Amy Coney Barret recused herself due to her friendship with a lawyer for the religious school.
The Ben Gamla Foundation filed a lawsuit on March 24, claiming that the state law banning public funding for religious schools is unconstitutional religious discrimination.
The lawsuit asks a federal judge to strike down Oklahoma’s ban on religious charter schools, and to order the state to stop denying applicants on the basis of their religious character.
“We’re asking the court to end that blatant religious targeting and allow families to choose schools that are best for them,” Peter Deutsch, a former Democratic congressman in Florida and founder of the National Ben Gamla Jewish Charter School Foundation, said in a statement.
The lawsuit alleges that Oklahoma’s requirement that charter schools be “nonsectarian” is unconstitutional, citing the First Amendment’s Free Exercise Clause and the Fourteenth Amendment’s Equal Protection Clause.
But Jewish organizations in Oklahoma are wary of the Ben Gamla application. A small group of Jews and a rabbi in Tulsa recently asked to join a lawsuit to block the Ben Gamla charter school.
The group filed a motion Wednesday in federal court in Oklahoma City seeking to intervene in the lawsuit brought by the National Ben Gamla Jewish Charter School Foundation, which is trying to become the nation’s first publicly funded religious school.
Rabbi Daniel Kaiman, the principal rabbi of Congregation B’nai Emunah in Tulsa, says he opposes the mixing of religion and government because of the potential for abuse. His own children attend a public elementary school in Tulsa.
“I am passionate about Jewish education—indeed, I have dedicated my life to it. Kaiman wrote in a declaration filed with the court. “Children in my congregation, including my own children, receive excellent, privately funded Jewish education through our synagogue and at home in accordance with our community values. But the mixing of religion and government creates opportunities for religious coercion…”
The motion was filed on behalf of the seven by the ACLU, Americans United for Separation of Church and State, the Education Law Center, the Freedom From Religion Foundation and Oklahoma Appleseed.
The Ben Gamla school would under insert religious teaching into all subjects and require all employees to uphold Jewish values in their lives. What any of that means is unclear. How would math, reading, science, and other subjects be taught from a Jewish perspective. What sort of “values” would employees uphold and who would determine whether they did?
The Ben Gamla application is opposed by state Attorney General Gentner Drummond, who is against religious charter schools. But Drummond leaves office in January and might be replaced by a supporter of religious charter schools.
The state charter school board is pro-charter and is not vigorously opposing the Ben Gamla application. In fact, the state charter board retained First Liberty Institute to represent it. It is a conservative Christian legal group that believes that religious charter schools should be legal.
Oklahoma Jews are opposed to Ben Gamla. The Jewish Federation of Greater Oklahoma City sent a statement to the state Attorney General saying that religious charter schools “risk eroding the constitutional safeguards that protect both religious freedom and government neutrality toward religion.”
Ben Gamla’s financial interdependence on the Academica charter chain should alarm Oklahomans as much as the effort to turn public money over to religious schools.
Academica is a very wealthy for-profit charter management organization.
According to Ben Gamla’s strategic plan, Academica will control its budget and finances, facilities and management, human resources, and much more. And, of course, charge a management fee.
Academica manages more than 200 charter schools in at least 22 states. Its biggest chains are Somerset Academy (at least 80 campuses), Mater Academy (40-50 schools), Doral Academy, and Pinecrest Academy.
Academica held more than $115 million in properties in Florida in 2010 and collected $19 million in profit. That’s 16 years ago, the network has vastly expanded, and no one has updated the total value of Academica’s real estate since then or its annual profits.
Academica makes its hefty profits through management fees and “related party transactions.”
This is how a “related party transaction” works:
A real estate LLC controlled by Academica allies buys or builds a school property. The nonprofit charter school, like Ben Gamla or Mater or Somerset, leases the building. The school collects public funds from the state or the city, then pays rent to the LLC. The rent is high, often as much as 20% of all public funding. The management company chooses the services provided, making contracts with its allies.
The Network for Public Education described Academica in its report on for-profit schools:
Academica: The largest EMO is Academica, based in Miami, Florida. Academica’s owner is a real estate developer, Fernando Zulueta, who opened the first charter, Somerset, as part of a housing development he had constructed. He reasoned that his real estate venture would be more attractive to buyers since students would have a school within the development. Using their real estate companies, Fernando and his brother, Ignacio, built what journalist Jessica Bakeman called “an empire of charter schools.”
Over 100 active corporations linked to Fernando Zulueta and his family members are listed as residing at Academica’s Miami headquarters at 6340 Sunset Drive and 6457 Sunset Drive in Miami.39 They include real estate corporations, holding companies, and finance corporations, as well as sub-chains both within and outside of Florida.
Like many other charter schools and chains, Academica cashed in on the COVID Paycheck Protection Program during the pandemic. Individual schools and other nonprofit and for-profit entities related to the chain received in total up to $35.7 million dollars, even though there is no evidence of revenue lost during the pandemic. In fact, during the pandemic, the EMO continued to expand. In total, charter schools cashed in on one billion dollars from the PPP program.
Mater Academy Foundation, Inc., the related non-profit corporation that oversees Academica’s Mater brand of charter schools, acquired a $127.5 million educational facilities lease revenue bond to purchase several facilities from Academica. The South Florida Business Journal detailed the purchase price of several of the facilities and the Academica-affiliated real estate entities that cashed in on the sales, concluding that “the Pandemic Profiteering deal allows Academica to cash out after investing in the development of charter schools, although it will still earn management fees for the schools.”
The connection between Fernando Zuleta’s real estate holdings and his for-profit managed charter schools goes beyond the state of Florida. According to the State Public Charter School Authority, Academica Nevada pays the lease on behalf of the charter school Mater Academy Mountain Vista of Nevada to Stephanie Development LLC. The managingmembers of Stephanie Development are Fernando and Ignacio Zulueta and Robert and Clayton Howell. Robert Howell is the manager of Academica Nevada.
About 18% of all charter students are enrolled in for-profit charter schools, like those of Academica. If Ben Gamla is approved in Oklahoma, that will open new horizons for their expansion.
Be sure to read NPE’s report:
For-Profit Charter Schools Gone Wild—Proof That Greed and Education Don’t Mix
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