Archives for category: Corruption

Perhaps you remember the A3 charter scam in California. The online charter chain managed to collect hundreds of millions of dollars from the state for ghost students. Its leaders were eventually arrested, charged, and convicted. They are still repaying their ill-gotten gains.

Kristina Taketa of the San Diego Union-Tribune reports that the latest installment of their restitution was $18.8 million.

She writes:

An additional $18.8 million has been paid to San Diego County as restitution for the statewide A3 charter school scam in which the state was defrauded of hundreds of millions of school dollars, the San Diego County District Attorney announced Wednesday.

Sean McManus of Australia, along with Jason Schrock of Long Beach, led a statewide charter school scheme from 2016 to 2019 in which they used a network of mostly online charter schools to defraud the state of approximately $400 million and used $50 million of that amount for personal use. They did so by falsely enrolling students and manipulating enrollment and attendance reporting across their schools to get more money per student than schools are supposed to, prosecutors said.

In total, about $240 million of the $400 million has been recovered. The District Attorney’s Office said it is not trying to get back all of the $400 million because some of the money ended up going to noncriminal actors, such as teachers, youth programs and others, who provided services for the A3 schools and who did not know the money was obtained illegally.

Of the $240 million that has been recovered, about $95 million has been returned to the state treasury, with an additional $90 million expected to be returned to the state within the next few months.

Debbie L. Sklar of the Times of San Diego provided more details on how the scam worked.

More than $37 million in fines has been paid to San Diego County as part of a court judgment stemming from a charter school fraud scheme that took millions in public school funds and led to criminal charges against 11 people, the San Diego County District Attorney’s Office announced Wednesday.

The total fine amount includes $18.75 million recently paid by Sean McManus, CEO and president of A3 Education, who pleaded guilty to stealing more than $50 million in public funds and was sentenced to four years in prison.

Prosecutors say McManus and co-defendant Jason Schrock directed subordinates to open up 19 “A3 charter schools” in San Diego County and elsewhere across the state, and collected state funds by alleging students were enrolled in programs run by the schools.

The District Attorney’s Office, which called the case “one of the nation’s largest fraud schemes targeting taxpayer dollars intended for primary education,” said the men paid for student information and used the info to enroll children in summer school programs at their online campuses. Prosecutors say some parents were unaware their children were enrolled in a charter school at all.

The defendants then took measures to inflate the amount of money the state paid the charter schools by falsifying documentation, which included backdating documents to indicate that students were enrolled in the charter schools for longer than they were or switching students between different A3 schools to increase funding per student or per school beyond legal limits, prosecutors said.

The perpetrators were very clever and very, very rich until they were caught.

In a curious coincidence, I had breakfast at a hotel in January 2019 in Newport Beach, California, with a friend. At the table next to us sat a man and woman discussing education and a business transaction. I tried not to eavesdrop, yet found myself fascinated by the curious combination of topics. As they got up to leave, I stopped the man and said, “Excuse me, but I wonder if you are in the charter school business.” He responded, “Yes, I am Sean McManus, and I run a chain of charter schools.” The boom fell not long after.

I watched the hearings from start to finish. They were gripping. The first fact that was established was that the people closest to Trump told him that he had lost the election. His Attorney General William Barr told Trump in no uncertain terms that his claims that the election was stolen were “bullshit.” The outcome was not affected by election fraud, Barr said. Barr said his refusal to accept the result was hurting the country. Ivanka testified that she believed Bill Barr.

But unlike every other American president, Trump refused to admit he lost. He listened to Rudy Guiliani, Sidney Powell, and Michael Flynn, who encouraged his fantasy that he could overturn the election. His advisors tried to separate him from the loonies, but they were unsuccessful.

He and his lawyers filed 60+ lawsuits alleging fraud, but all of them failed because of lack of evidence.

Trump encouraged his zealous MAGA followers to believe that the election was rigged and stolen. His extremist followers—the Proud Boys and the Oath Keepers—were eager to help. On December 19, after meeting with Guiliani, Powell, and Flynn, he tweeted to his followers to come to DC on January 6, the day the election results were to be certified. He predicted “it will be wild.” On January 5, Steve Bannon said that on the following day, “All hell will break loose.”

The Proud Boys and the Oath keepers were there, as were thousands of other MAGA zealots. Trump encouraged his followers to March on the Capitol. He said that everything hinges on Mike Pence “doing the right thing,” I.e. refusing to accept the results from states where the votes were close.

When the mob attacked the Capitol, they chanted “Hang Mike Pence.” They sought Nancy Pelosi. No one knows what they would have done had they broken into the chambers while members of Congress were present.

The committee showed video of the insurrection that had not been seen before. It was a violent and wild scene, with men beating police officers repeatedly, using clubs and even flag poles as weapons. It was a scene of carnage. The video was powerful and shocking. As the video ended, Trump’s voice was superimposed, saying something like “There was a lot of love that day.” But the scene of his MAGA buddies pummeling and brutalizing cops was not loving.

Through the hours in which the mob stormed the Capitol, Trump refused to call for help. He did not call out the National Guard or the Secretary of Defense or Homeland Security. Mike Pence, from his secret location, called desperately for help. So did other Republican members of Congress. But it was hours before reinforcements arrived.

Just for the hell of it, when the hearing was over, I turned on FOX News. It was sickening. Laura Ingraham ridiculed Liz Cheney and said she was interminable and boring. No mention of the evidence of Trump’s lies and inaction. Most outrageous was Ingraham’s spin: Our democracy was never at risk. The Democrats and traitor Cheney exaggerated, she lied. No, democracy was never at risk. So what if hundreds and thousands of violent insurrectionists tried to stop the peaceful transfer of power, a tradition that began with George Washington. So what if the Trump mob beat up the law officers. So what if one of the police died of a stroke and four committed suicide.

What if the cops had not held the mob out as long as they did? What if they had seized Pence, Pelosi, Schiff, Raskin and others they hated?

No threat to our democracy? How could Laura Ingraham lie so egregiously with a straight face?

Trump issued a statement about the blood assault on the seat of the US government:

“January 6th was not simply a protest, it represented the greatest movement in the history of our Country to Make America Great Again,” he wrote in a statement.

Dana Milbank wrote this after watching the hearings last night:

Liz Cheney was addressing her fellow Republicans. But more than that, she was speaking to posterity.
“I say this to my Republican colleagues who are defending the indefensible,” she said at Thursday night’s opening hearing of the Jan. 6 House select committee. “There will come a day when Donald Trump is gone, but your dishonor will remain.”


The Wyoming congresswoman, daughter of the former vice president, and vice chair of the committee, outlined for the country, and for history, two contrasting stories about the bloody insurrection.

One was a tale of honor and duty. Officials in the Justice Department and White House, to a greater extent than was previously known, confronted Trump about his election lies and repeatedly threatened to resign if he followed through with his darkest impulses.

The other was a tale of brutality and deceit by Trump and a small band of loyalists. They knew he had lost, and yet, as Cheney put it, “Trump oversaw and coordinated a sophisticated, seven-part plan to overturn the presidential election and prevent the transfer of presidential power.”

In perhaps the most chilling moment of the hearing, Cheney spoke of former White House officials’ testimony about Trump’s bloodthirstiness toward his own vice president. “Aware of the rioters’ chants to hang Mike Pence, the president responded with this sentiment, quote, ‘Maybe our supporters have the right idea.’ Mike Pence, quote, ‘deserves it.’ ”

I never thought I would say this but it’s true: Mike Pence saved our democracy by refusing to follow Trump’s demand to hand him the election that he lost. Pence followed the Constitution and foiled the coup.

And after watching the hearings, I sent $100 to Liz Cheney’s re-election campaign.

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Another fine piece by Jan Resseger about the sorry state of politics in Ohio, where the Legislature ignores pressing problems, but passes bills for spite and political gain.

She begins:

In its legislative update last Friday, Honesty for Ohio Education reported: “It was an appalling and heartbreaking week in the Statehouse as Ohio legislators passed two bills to arm school personnel and ban transgender girls in female sports, and held hearings for bills censoring education about race, sexuality, and gender and banning gender-affirming healthcare for minors.”

The Plain Dealer’s Laura Hancock explains how, without a hearing, the House banned transgender girls from female sports when legislators added the amendment to another bill: “The Ohio House passed a bill shortly before midnight Wednesday, the first day of Pride Month, with an amendment to ban transgender girls and women from playing high school and college women’s sports… As originally introduced, HB 151 would change the Ohio Resident Educator Program, which assists new teachers with mentoring and professional development as they begin their careers… But on the Ohio House floor late Wednesday night, Rep. Jena Powell, a Darke County Republican, offered an amendment to the bill, which a majority of the house accepted…. House Bill 151 passed 56 to 28 with Democrats voting in opposition. It now heads to the Ohio Senate, which is in summer recess and won’t return until the fall.”

A big part of our problem in Ohio is a long run of gerrymandering—leaving both chambers of our state legislature with huge Republican supermajorities. A committee of legislators from House and Senate were charged to create fair and balanced legislative district maps. The Ohio Redistricting Commission spent the winter and spring redrawing the maps, which were rejected five times by the Ohio Supreme Courtbecause a Court majority found the new maps gerrymandered to favor the election of Republicans. At the end of May, however, a federal district court ruled that the state must end the battle over gerrymandering by using maps—for this year’s August primary and the November general election—which were rejected twice in the spring by the state’s supreme court because they favor Republican candidates.

Citizens in a democracy are not supposed to be utterly powerless, but that is how it feels right now in Ohio.

The legislature also passed bills to increase school privatization, despite the woeful performance of charter schools and vouchers. The 90% of students in public schools will suffer so that the failing charter schools and vouchers may thrive, at least financially.

When I suggested that the way to eliminate gun violence in America was to have one billionaire buy the votes of Republicans in Congress and state legislatures, I was walking a line between reality and satire. I thought that $1 billion would be enough to do the job (make the purchase, sale or manufacture of assault weapons illegal), in tandem with a gun buyback program.

Well, friends, the tobacco industry is already doing that, but for way less money.

To hold off the danger of laws making menthol cigarettes illegal, Reynolds American—maker of Newport and Camel cigarettes—has given out almost $6 million to more than 800 legislators.

Menthol in cigarettes and flavored cigars could soon be outlawed, as the US Food and Drug Administration and state legislatures carefully prepare to regulate or legislate them into history.

But one tobacco giant — Reynolds American— is actively spreading millions of dollars to hundreds of state-level political candidates and political action committees, according to an internal corporate governance document reviewed by Insider.

Cheapskates!

Andrea Gabor is Bloomberg Professor of Business Journalism at Baruch College of the City of New York. She writes often for the Bloomberg website, where this article appears. Michael Bloomberg has written in opposition to Biden’s proposed regulations for the federal Charter School Program. Hopefully, he will read this article and change his views. The National Aliance for Public Charter Schools has been running a full-fledged panic attack in opposition to the sensible regulations, claiming falsely that they are a mortal threat to all charter schools; they are not. The lobbyists have even paid for ads on MSNBC, paid for by one of their billionaire funders, assailing the regulations.

Gabor is the author of “After the Education Wars: How Smart Schools Upend the Business of Reform.” It contains one of the best—maybe the best—analyses of what happened to New Orleans after Hurricane Katrina.

Andrea Gabor explains why the regulations will improve the charter sector.

She writes:

Forget the battle over critical race theory. The latest salvos in the public-school culture wars are being fired over the federal charter schools program and the sensible guidelines that are being proposed by the administration of President Joe Biden.

Congress extended the program in March, approving $440 million for state agencies to help charters with startup expenses such as staffing and technology. Almost immediately, the White House is received a barrage of criticism for issuing guidelines intended, most importantly, to rein in charter-school funding abuses.

In particular, the proposed regulations would prevent for-profit management companies that run nonprofit charters from accessing federal funds. Even ardent charter supporters shun for-profit charters, which significantly underperform traditional public schools, and the new guidelines would close loopholes that have fostered fraud nationwide and especially in states including Arizonawhere loose regulations have emboldened legislators to enrich themselves on the taxpayer’s dime.

That kind of common-sense rule should serve as a first step toward a truce in the decades-long conflict over the role of charters in public education. Alas, it probably won’t.

The debate about charter-school regulations has become a proxy for a wider and even higher-stakes fight over the proper role of government. Since at least the era of President Ronald Reagan, conservatives have seen privatization as a way to undermine public schools and teachers unions, rejecting guardrails and often ignoring the original mission of charters to foster educational innovation.

Meanwhile, public-school advocates have been so busy defending the traditional public-school system, which they correctly argue is essential to democracy, that they rarely focus on finding ways to improve it.

Indeed, rancor between charter and public-school proponents is so toxic that a potentially mutually beneficial Biden proposal for granting funding to charter schools — that they demonstrate collaboration with a public school or district — seems almost impossible to achieve.

That’s a shame because the new guidelines offer quite a few possibilities to find common ground; ways to strengthen the charter sector while also protecting public schools.

Consider the proposed requirement that new charters reflect the movement’s original promise of promoting teacher innovation and “robust family and community engagement.” Such an approach could rebuild public trust in charter-friendly cities like New Orleans, which dismantled its public school system and replaced it with private operators over 15 years ago following Hurricane Katrina and, in the process, alienated much of its African-American community.

Instead of engaging local families, officials began by firing the city’s mostly African-American teachers — a sizeable swath of its middle class — and replacing them with inexperienced Teach-for-Americarecruits, most of whom only lasted a year or two. At the same time, charter authorizers recruited out-of-state charter-management organizations that established a harsh-discipline schooling model that often worked against the interests of New Orleans’s poorest and most vulnerable children. The authorizers explicitly excluded even well-regarded local groups from winning charters.

Given no say in the new education system, community groups rebelled — not just in New Orleans, but in Indianapolis, Kansas City and other cities where the same model was being imposed.

New Orleans belatedly and reluctantly recognized the need for community engagement and eventually made room for a handful of independent, community-led charters like Morris Jeff, which fought an uphill battle for authorization and funding and was launched with the express intention of allowing teachers to unionize and have a say in school policies. The well-regarded school offers an international baccalaureate program and is among a minority of integrated schools, but New Orleans is still dominated by large charter management organizations.

Increasing community engagement would mean supporting more schools like Morris Jeff and inviting more family input. It should also mean giving teachers a role in school decision-making, which has been shown to improve both public and charterschools. To that end, charter schools should reserve a percentage of governing-board seats for family members elected by parent-teacher organizations, as well as teachers elected by colleagues. (Unlike public schools, which have elected boards, charters have appointed boards and sometimes exclude family members from serving.)

The new guidelines also could be used to promote racial integration. Charters “can be a great vehicle” for doing so by drawing on students from multiple neighborhoods and appealing to students of diverse backgrounds, said Halley Potter an educational researcher at the Century Foundation.

There are also important elements of the White House guidelines that predictably inflame charter advocates. For example, they might keep some charters from opening when they threaten the stability of nearby public schools as they have in the East Harlem neighborhood of New York City. There, high concentrations of charters led regular public elementary and middle schools to enroll double and sometimes triple the proportion of special-needs kids of nearby charter schools, which often discourage special-needs applicants.

Traditional public schools still educate the vast majority of American children. The hostility to almost every aspect of the Biden guidelines is sad confirmation of the animosity toward this vital institution itself. It also shows the difficulty of finding common ground that could quell the education wars and foster improvements across sectors.

Historian Heather Cox Richardson wrote a fascinating column about Steve Schmidt’s recent revelations about important political figures. Like the good historian she is, she connects the dots.

At home, a big story broke over the weekend, reminding us that the ties of the Republican Party to Russians and the effect of those ties on Ukraine reach back not just to former president Trump, but at least to the 2008 presidential campaign of Arizona senator John McCain.

Late Saturday night, political strategist Steve Schmidt, who worked on a number of Republican political campaigns including McCain’s when he ran for president in 2008, began to spill what he knows about that 2008 campaign. Initially, this accounting took the form of Twitter threads, but on Sunday, Schmidt put the highlights into a post on a Substack publication called The Warning. The post’s title distinguished the author from those journalists and members of the Trump administration who held back key information about the dangerous behavior in Trump’s White House in order to include it in their books. The post was titled: “No Books. No Money. Just the Truth.”

Schmidt left the Republican Party in 2018, tweeting that by then it was “fully the party of Trump. It is corrupt, indecent and immoral. With the exception of a few governors…it is filled with feckless cowards who disgrace and dishonor the legacies of the party’s greatest leaders…. Today the GOP has become a danger to our democracy and our values.” Schmidt helped to start The Lincoln Project, designed to sink Trump Republicans through attack ads and fundraising, in late 2019.

The apparent trigger for Schmidt’s accounting was goading from McCain’s daughter Meghan McCain, a sometime media personality who, after years of slighting Schmidt, recently called him a pedophile, which seems to have been a reference to the fact that a colleague with whom Schmidt started The Lincoln Project was accused of online sexual harassment of men and boys. Schmidt resigned over the scandal.

Schmidt was fiercely loyal to Senator McCain and had stayed silent for years over accusations that he was the person who had chosen then–Alaska governor Sarah Palin as McCain’s vice presidential candidate, lending legitimacy to her brand of uninformed fire-breathing radicalism, and about his knowledge of McCain’s alleged affair with a lobbyist.

In his tweetstorm, Schmidt set the record straight, attributing the choice of Palin to McCain’s campaign director and McCain himself, and acknowledging that the New York Times had been correct in the reporting of McCain’s relationship with the lobbyist, despite the campaign’s angry denial.

More, though, Schmidt’s point was to warn Americans that the mythmaking that turns ordinary people into political heroes makes us unwilling to face reality about their behavior and, crucially, makes the media unwilling to tell us the truth about it. As journalist Sarah Jones wrote in PoliticusUSA, Schmidt’s “broader point is how we, as Americans, don’t like to be told the truth and how our media so loves mythology that they work to deliver lies to us instead of holding the powerful accountable.”

Schmidt’s biggest reminder, though, was that the director of the 2008 McCain campaign was Richard (Rick) Davis, a founding partner of Davis Manafort, the political consulting firm formed in 1996. By 2003, the men were representing pro-Russia Ukrainian oligarch Viktor Yanukovych; in July 2004, U.S. journalist Paul Klebnikov was murdered in Moscow for exposing Russian government corruption; and in June 2005, Manafort proposed that he would work for Putin’s government in former Soviet republics, Europe, and the United States by influencing politics, business dealings, and news coverage.

From 2004 to 2014, Manafort worked for Yanukovych and his party, trying to make what the U.S. State Department called a party of “mobsters and oligarchs” look legitimate. In 2016, Manafort went on to lead Donald Trump’s campaign, and the ties between him, the campaign, and Russia are well known. Less well known is that in 2008, Manafort’s partner Rick Davis ran Republican candidate John McCain’s presidential campaign.

Schmidt writes that McCain turned a blind eye to the dealings of Davis and Manafort, apparently because he was distracted by the fallout when the story of his personal life hit the newspapers. Davis and Manafort were making millions by advancing Putin’s interests in Ukraine and eastern Europe, working for Yanukovych and Russian oligarch Oleg Deripaska. Schmidt notes that “McCain spent his 70th birthday with Oleg Deripaska and Rick Davis on a Russian yacht at anchor in Montenegro.”

“There were two factions in the campaign,” Schmidt tweeted, “a pro-democracy faction and…a pro Russia faction,” led by Davis, who—like Manafort—had a residence in Trump Tower. It was Davis who was in charge of vetting Palin.

McCain was well known for promising to stand up to Putin, and Palin’s claim that she could counter the growing power of Russia in part because “[t]hey’re our next-door neighbors, and you can actually see Russia from land here in Alaska, from an island in Alaska” became a long-running joke (the comment about seeing Russia from her house came from a Saturday Night Live skit).

But a terrific piece in The Nation by Mark Ames and Ari Berman in October 2008 noted: “He may talk tough about Russia, but John McCain’s political advisors have advanced Putin’s imperial ambitions.” The authors detailed Davis’s work to bring the Balkan country of Montenegro under Putin’s control and concluded that either McCain “was utterly clueless while his top advisers and political allies ran around the former Soviet domain promoting the Kremlin’s interests for cash, or he was aware of it and didn’t care.”

Trump’s campaign and presidency, along with Putin’s deadly assault on Ukraine, puts into a new light the fact that McCain’s campaign manager was Paul Manafort’s business partner all the way back in 2008.

Note: Richardson has a list of sources at the end of her post. For some unknown reason, WordPress did not permit me to copy her notes. I inserted some but not all. Open the post to check the links.

Tom Ultican, retired teacher of advanced mathematics and physics in California, is now a significant chronicler of the Destroy Public Education movement. He attended the recent national conference of the Network for Public Education in Philadelphia and recapitulates the excitement we shared at being in person after a 2-year hiatus.

After every conference, attendees say, “This was the best one yet.” They enjoy meeting people who are doing the same work to fight privatization of their public schools. By the end of the conference, attendees say they feel energized, hopeful, and happy to know that they are not alone.

I urge you to read Tom’s post. You will get a sense of the embarrassment of riches available to attendees.

I should add that the Nebraska Save Our Schools group shared the Phyllis Bush Award for Grassroots Activism. Nebraska is one of the few states that has managed to protect its public schools and keep out both charters and vouchers, despite being a Red State.

The Pastors for Texas Children, a co-winner of the award, has repeatedly blocked vouchers in the Texas Legislature and has consistently fought for funding for public schools. PTC has opened chapters in other Red states, where they mobilize clergy to support public schools.

A high point for me was interviewing “Little Stevie” Van Zandt, a legendary rock star and actor (“The Sopranos”), who is dedicated to getting the arts into schools, not as an extra, but across the curriculum. we had a wonderful conversation. He has funded lesson plans based on rock and roll, available free at his website TeachRock.

All of the general sessions were taped. I will post them when they become available.

This article posted today on the CNN website is a handy guide to “reputation laundering” by Russian and American oligarchs. We knew about the Sacklers, who put their name on prestigious institutions for years to wash away the stain of the opioids that made them billionaires. Then there is pedophile Jeffrey Epstein, who bought his way into MIT. And now there is a panoply of Russian oligarchs, who became wealthy during an era of massive corruption in the transition from the Soviet Union to Russia. They are philanthropists now.

Mercedes Schneider writes here about the plight of two experienced Black educators who were fired by District of Columbia officials for refusing to adopt a scripted “no excuses” program developed by the Relay “Graduate School of Education.” I put scare quotes around the last four words because Relay is not really a graduate school of any kinds. It was created by a group of charter chains to teach the methods favored by charter schools—strict discipline, no-excuses, and the pedagogical strategies to raise test scores. Unlike real graduate schools, it has no campus, no library, no faculty with earned doctorates, no programs in research and the social sciences.

The educators—one of them a veteran principal—objected to the Relay approach and thought it contributed to the school-to-prison pipeline. They were fired, and they are suing, all out of their own pockets. I will help them as best I can. Tom Ultican write about them here.

Schneider wrote:

Below are excerpts fron a lawsuit put forth by two former employees of DC’s Boone Elementary School, who took issue with DC Public Schools (DCPS) higher admin wishing to impose controversial scripted and harsh practices at the direction of the so-named Relay Graduate School of Education (“graduate school” as a brand name and worth as much as my legally changing my own name to “Mercedes Schneider, MD” to deceptively promote the idea that I practice medicine).

Former Boone principal, Carolyn Jackson-King, repeatedly voiced her concerns about DCPS pooling lower-income, predominately Black schools under the jurisdiction of Relay and the fact that the administrator overseeing this requirement was formerly with “no excuses” KIPP schools (as in highly-scripted conformity at the expense of developing critical thinking and self-value for low-income students). Jackson-King even collected data to support no need for this concocted “Relay remediation” plan for Boone students, to no avail. Within one year, she was brought from being a principal deemed worthy of mentoring others to one released from her duties as principal and given the lowest rating of her career.

Fellow Boone employee and director of strategy and logistics, Marlon Ray, was arguably singled out and punitively required to work in person throughout the pre-vaccination period of COVID and later terminated due to “reduction in force” after he filed a 2020 whistleblower suit with the Office of Inspector General (OIG) about Relay, including contracts and payments under two distinct codings and that did not line up.

Jackson-King and Ray are suing DCPS and requesting a jury trial “to remedy the effects of the illegal conduct described [in the suit]” and to “award damages for back pay and other monetary losses” incurred by DCPS “[having] violated the provisions of District of Columbia law recited [in the suit].”

The lawsuit itself is 35 pages long and is posted at the end of this piece. I wish I could post the entire document as I believe it is worth a full read for its value on many fronts, including how those in education reform are able to all-too-quickly position themselves in upper administration and through their connections promote other entites selling ill-informed ideas that are contrary to sound educational practice; how such education businesses are often particularly positioned to prey on lower income students and students of color; how genuinely concerned, career-invested stakeholders are often wrongfully punished for voicing their concerns and seeking remedy (including being told that the issue should be kept “in house,” a strategy also often employed by domestic abusers), and how the underdog often has to pay out of pocket to seek relief in the courts.

Please continue reading. The educators acted ethically. The district punished them for acting ethically.

Please read the letter from the Network for Public Education to the U.S. Department of Zeducation, supporting its proposed regulations for federal funding of charter schools.

The letter was signed by 96 organizations.

On behalf of the undersigned organizations, we submit the following response to the Department of Education’s request for comments related to the proposed priorities, requirements, definitions, and selection criteria of the Charter Schools Program (CSP). We commend the Department for proposing thoughtful and well-reasoned regulations that will end funding to start or expand charter schools managed in whole or substantially by for-profit organizations, provide greater supervision to the program, ensure that the charter school does not increase segregation and via impact analysis, demonstrate that the charter school is truly needed.

The Charter Schools Program (CSP) is a statutorily established grant program that began in 1994 with the purpose of expanding high-quality charter schools when charter schools were experimental and intended to supplement, not supplant, public schools. Since its modest beginnings, the program has expanded as has the charter school sector. The CSP has been responsible, in great part, for the expansion of the charter sector and therefore indirectly responsible for problems in the charter sector that include the frequent closures of charter schools, the drain on public school funding, and the fraud and mismanagement that is frequently reported in the press. We believe that your proposed regulations are a good first step in addressing those problems.

We the undersigned further believe that all charter schools, like public schools, must provide their students with a free education that guards students’ civil rights, provides a rich educational opportunity and protects their health and safety. Further, we believe that any school that is financed by the public must ensure that tax dollars are judiciously spent in compliance with the law. That means we support compliance with open meetings and public records laws; prohibitions against profiteering as enforced by conflict of interest, financial disclosure, and auditing requirements. We believe that all students deserve to be taught by teachers who have met state certification requirements in a classroom where they have an opportunity to engage with their teacher and their peers. We do not support virtual charter schools which are ineffective in meeting the academic and socio-emotional needs of students.

Eliminating CSP Funding to Charter Schools Managed by For-profit Corporations

We strongly support the proposed regulations to ensure that charter schools operated by for-profit corporations do not receive CSP grants.

The federal definition of a public school under IDEA and ESEA is “a nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under State law.” 20 U. S.C. §§ 1401(6) (IDEA), 7801(18) (ESEA) Similarly, the statutes define a “secondary school” as “a nonprofit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under State law․” 20 U.S.C. §§ 1401(27) (IDEA), 7801(38) (ESEA).

Former for-profit entities have created non-profit facades that allow the for-profit and its related organizations to run and profit from the charter school, following the judgment of the Ninth Circuit Court of Appeals in Arizona State Bd. For Charter Schools v. U.S. Dept. of Educ. in 2006 (464 F.3d 1003).[i]

Ineffective provisions undermine the present regulations against the disbursement of funds from the federal Charter Schools Program (CSP) to charter schools operated by for-profit entities. We identified over 440 charter schools operated for profit that received grants totaling approximately $158 million between 2006 and 2017, including CSP grants to schools managed with for-profit sweeps contracts.[ii]

The relationship between a for-profit charter school management organization, commonly referred to as an EMO, is quite different from the relationship between a vendor who provides a single service. A school can sever a bus contract and still have a building, desks, curriculum, and teachers. However, in cases where charter schools have attempted to fire the for-profit operator, they find it impossible to do without destroying the schools in the process.

Many for-profit organizations operate by steering business to their for-profit-related entities. They are often located at the same address, and the owner of the management company or a member of the immediate family is the owner of the related entity. Therefore, it is recommended that wherever references to for-profit organizations appear, the phrase “and its related entities” is added.

Recommendations:

(a)   Each charter school receiving CSP funding must provide an assurance that it has not and will not enter into a contract with a for-profit management organization, including a non-profit management organization operated by or on behalf of a for-profit entity, under which the management organization and its related entities exercise(s) full or substantial administrative control over the charter school and, thereby, the CSP project.

Quality Control of Awards and the Importance of Meeting Community Need via Impact Analysis

We strongly support the proposed regulations that seek to bring greater transparency and better judgment to the process of awarding CSP grants. We especially support the inclusion of a community impact analysis.

We are pleased that “the community impact analysis must describe how the plan for the proposed charter school take into account the student demographics of the schools from which students are, or would be, drawn to attend the charter school,” and provide “evidence that demonstrates that the number of charter schools proposed to be opened, replicated, or expanded under the grant does not exceed the number of public schools needed to accommodate the demand in the community.”

More than one in four charter schools close by the end of year five.[iii] A foremost reason for both public school and charter closure and the disruption such closures bring to the lives of children is low enrollment, as seen this past month in Oakland.[iv] In New Orleans, school closures have resulted in children being forced to attend multiple schools during their elementary school years, often traveling long distances. Between 1999 and 2017, nearly one million children were displaced due to the closure of their schools, yet only nine states have significant caps to regulate charter growth.[v]

We applaud language that states, “The community impact analysis must also describe the steps the charter school has taken or will take to ensure that the proposed charter school would not hamper, delay, or in any manner negatively affect any desegregation efforts in the public school districts from which students are, or would be, drawn or in which the charter school is or would be located, including efforts to comply with a court order, statutory obligation, or voluntary efforts to create and maintain desegregated public schools…”

In some states, charter schools have been magnets for white flight from integrated schools.[vi] Other charter schools have attracted high achieving students while discouraging students with special needs from attending.[vii] And, as you know from the letter you received in June of 2021 from 67 public education advocacy and civil rights groups, the North Carolina SE CSP sub-grants were awarded to charter schools that actively exacerbated segregation, serving in some cases, as white flight academies[viii] The information requested by the Department is reasonable and will help reviewers make sound decisions.

In addition to our support for the proposed regulations, we have two additional recommendations to strengthen the impact analysis proposal.

Recommendations: (1) That impact analysis requirements include a profile of the students with disabilities and English Language Learners in the community along with an assurance that the applicant will provide the full range of services that meet the needs of students with disabilities and English Language Learners. (2) That applicants include a signed affidavit provided by district or state education department officials attesting to the accuracy of the information provided.

Regarding proposed rules regarding transparency, we note that in the past, schools were awarded grants without providing even one letter of support[ix], or provided false information indicating support that did not exist.[x]

We also strongly support the requirement state entities provide additional supervision of grants. The Department should require a forensic audit for any charter school applying for CSP consideration. Furthermore, any charter school that does not operate as a classroom-based entity or is operated by a for-profit entity should be barred from being awarded grant money under the CSP. We also believe these requirements can be strengthened by requiring review teams to include at least one reviewer representative from the district public school community and that applications be posted and easily accessible for the public to review and comment upon for a period of no less than 60 days before awarding decisions.

L

Proposed Selection Criterion for CMO Grants

ESSA places the following restriction on grants awarded to State Entities: No State entity may receive a grant under this section for use in a State in which a State entity is currently using a grant received under this section. However, ESSA is silent regarding the awarding of grants to CMOs. This has resulted in CMOs having several active grants at the same time, with new grants being issued without proper inspection of the efficacy of former grants. For example, it has resulted in the IDEA charter CMO receiving six grants in a ten-year period totaling nearly $300 million.[xi] These grants occurred under a leadership structure that engaged in questionable practices, including the attempted yearly lease of a private jet,[xii] related-party transactions, and the rental of a luxury box at San Antonio Spurs games.[xiii]

IDEA received two awards, in 2019 and 2020, totaling more than $188 million even as the 2019 audit of the Inspector General found that IDEA submitted incomplete and inaccurate reports on three prior grants. The IG report also looked at a randomly selected sample of expenses and found that IDEA’s charges to the grants did not always include only allowable and adequately documented non-personnel expenses.

Recommendations:

That department regulations disallow the awarding of grants to any CMO currently using a grant received under the CMO program and that for any grant exceeding $25 million, the Department’s OIG conducts an audit before an additional grant is awarded.

We thank you for the time and thought that went into the proposed regulations.


[i] Arizona State Board for Charter Schools v. Department of Education. No. 05-17349 (9th Cir. 2006)

[ii] Burris, Carol and Darcie Cimarusti. (n.d.) Chartered for Profit: The Hidden World of Charter Schools Operated for Financial Gain. Network for Public Education. Retrieved on March 23, 2022 from   https://networkforpubliceducation.org/chartered-for-profit/

[iii] Burris, Carol and Pfleger, Ryan. (n.d.) Broken Promises: An Analysis of Charter School Closures from 1999-2017. Network for Public Education. Retrieved on March 23, 2022, from https://networkforpubliceducation.org/wp-content/uploads/2020/08/Broken-Promises-PDF.pdf

[iv] McBride, Ashley. (2022, February 9). “Oakland school board votes to close seven schools over the next two years.” The Oaklandside. Retrieved March 23, 2022, from https://oaklandside.org/2022/02/09/oakland-school-board-votes-to-close-seven-schools-over-the-next-two-years/

[v] Burris, Carol and Pfleger, Ryan. (n.d.) Broken Promises: An Analysis of Charter School Closures from 1999-2017. Network for Public Education. Retrieved on March 23, 2022, from https://networkforpubliceducation.org/wp-content/uploads/2020/08/Broken-Promises-PDF.pdf

[vi] Wilson, Erika K. (2019). “The New White Flight.” HeinOnline. Retrieved on March 23, 2022 from https://heinonline.org/HOL/LandingPage?handle=hein.journals/dukpup14&div=8&id=&page=

[vii] Mommandi, Wagma and Kevin Welner. (2021, September 10). School’s Choice: How Charter Schools Control Access and Shape Enrollment. Teachers College Press.

[viii] Letter to Secretary Cardona from 67 education and civil rights advocacy organizations. (2021, June 16). Retrieved on March 23, 2022, from https://networkforpubliceducation.org/wp-content/uploads/2021/07/Letter-to-Secretary-Cardona-re_-North-Carolina-grant-6.16.pdf.

[ix] Strauss, Valerie. (2020, December 3), How a soccer club won a 126 million dollar grant from Betsy Devos’s education department to open a charter school.  The Washington Post. Retrieved March 23, 2022, from https://www.washingtonpost.com/education/2020/12/03/how-soccer-club-won-126-million-grant-devoss-education-department-open-charter-school/

[x] Winerip, Michael. (2012, January, 8). Rejected three times, school may still open soon, and with a grant, too. The New York Times. Retrieved March 24, 2022, from https://www.nytimes.com/2012/01/09/education/hebrew-charter-school-in-new-jersey-has-grant-to-go-with-application.html.

[xi] Office of Elementary and Secondary Education (n.d.). “Charter Schools Program Grants to Charter Management Organizations for the Replication and Expansion of High-Quality Charter Schools (CMO Grants).” U.S. Department of Education. Retrieved on March 23, 2022, from https://oese.ed.gov/offices/office-of-discretionary-grants-support-services/charter-school-programs/charter-schools-program-grants-for-replications-and-expansion-of-high-quality-charter-schools/

[xii] DeMatthews, David and David S. Knight. (2020, February 10). “Commentary: Private jets and Spurs tickets? Texas needs more charter school oversight.” My San Antonio. Retrieved on March 23, 2022, from https://www.mysanantonio.com/opinion/commentary/article/Commentary-Charter-school-backlash-shows-why-15045357.php

[xiii] Carpenter, Jacob. (2020, January 30). “After jet backlash, IDEA charter schools curbing more ‘hard to defend” spending.” My San Antonio. Retrieved on March 23, 2022, from https://www.mysanantonio.com/news/education/article/After-jet-backlash-IDEA-charter-schools-curbing-15019295.php

Our Co-Signers

  • Network for Public Education
  • National Education Association
  • Southern Poverty Law Center
  • National Black Caucus of State Legislators
  • Journey for Justice
  • AFSCME        
  • NCBCP/Black Women’s Roundtable
  • National Indian Education Association (NIEA)
  • In the Public Interest
  • Superintendent’s Roundtable
  • Advancement Project National Office
  • Education Deans for Justice and Equity (EDJE)
  • Education Law Center
  • Asian Pacific American Labor Alliance
  • Horace Mann League
  • Badass Teachers Association
  • The Democracy Collaborative
  • Advocates for Public Education Policy
  • Alliance for Philadelphia Public Schools
  • Alliance for Quality Education
  • Arizona Educators United
  • Arizonans for Charter School Accountability
  • California Teachers Association
  • Citizens for Public Schools
  • Class Size Matters
  • Close the Gap
  • Coalition for Equity in Public Schools
  • Colorado PTA
  • Democratic Public Education Caucus of Florida
  • Economic Opportunity Network
  • Education Voters of PA
  • Educators for Democratic Schools
  • El Paso Alliance for Just Schools
  • Empowering Pacific Islander Communities (EPIC)
  • First Focus on Children
  • Florida BATs
  • Florida Council of Churches
  • ­­­­Frey Evaluation
  • Hillsborough Public School Advocates
  • Indiana Coalition for Public Education
  • Indiana Coalition for Public Education – Monroe County
  • Jobs to Move America
  • Kentucky NAACP
  • Knox DSA
  • Long Beach Alliance for Clean Energy
  • MI Ed Justice
  • Michigan Education Association
  • Missouri Jobs with Justice
  • Moms and Dads Now Enduring Surrealistic Stupidity (#MADNESS)
  • Mon Valley Unemployed Committee
  • New Rochelle Federation of United School Employees (FUSE)
  • newCAP (New Community Action Pac)
  • North Carolina Justice Center
  • Northeast Indiana Friends of Public Education
  • Northwest Ohio Friends of Public Education
  • Oklahoma Parent Legislative Action Committee
  • Opt Out Georgia
  • Oregon BATs
  • Oregon Save Our Schools
  • Our Children/Our Schools
  • Parents Educating Parents Inc
  • Parents for Public Schools, Inc.
  • Parents for Public Schools, Milwaukee
  • Pastors for Florida Children
  • Pastors for Kentucky Children
  • Pastors for Tennessee Children
  • Pastors for Texas Children
  • Paterson Education Fund
  • PowerSwitch Action
  • Progressive Caucus of the North Carolina Democratic Party
  • Public Advocacy for Kids
  • Public Education Partners – Ohio
  • Public Schools First NC
  • Public Trust Alliance
  • Richmond for All
  • Rochester Coalition for Public Education
  • Saphron Initiative
  • Save Our Schools NJ (SOSNJ)
  • Schools and Communities United
  • Stand for Schools
  • Step Up Louisiana
  • STL Not for Sale
  • SUPPORT OUR SCHOOLS
  • Support Our Students
  • Tennessee BATs
  • Texas AFT
  • Texas Kids Can’t Wait!
  • United for Florida Children
  • United Methodist Advocates for Public Schools
  • Virginia BATs
  • Virginia Educators United
  • Virginia Public Education Partners
  • WA BATs
  • Wake NCAE
  • Washington Township Parent Council Network
  • Wear Red for Public Ed
  • Wellstone Democratic Renewal Club
  • Wisconsin Alliance for Public Schools/Wisconsin Public Education Network