Archives for category: Education Industry

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Josh Cowen of Michigan State University read the latest GOP tax bill closely. He explains what it contains for schools. It’s a plan to set up tax havens in every state for the wealthiest Americans. It forces vouchers for religious and private schools into every state, even states that don’t want them. It allows every voucher school to determine its own admissions policy.

It enables discrimination. It enriches those who are already rich.

It is a spike in the heart of public schools, which admit everyone and bring people from different backgrounds together.

Cowen is the author of the recently published book about vouchers, called THE PRIVATEERS: HOW BILLIONAIRES CREATED A CULTURE WAR AND SOLD SCHOOL VOUCHERS.

Writing in The Progressive, Carol Burris explains why the charter lobby is worried about how the Supreme Court will rule on the case of a religious charter school. They don’t want religious schools to be identified as charter schools. Burris, who is executive director of the Network for Public Education, explains their concern.

She writes:

The National Alliance for Public Charter Schools never met a charter school it did not like—until it met St. Isidore of Seville in Oklahoma City. St. Isidore of Seville Catholic Virtual School is the proposed Oklahoma charter school whose fate is currently being consideredby the U.S. Supreme Court, which is expected to issue its decision before summer’s end.

The Alliance’s objection to St. Isidore being allowed to open what would be the nation’s first religious charter is not because the school would be religious—an argument the Alliance’s CEO Starlee Coleman characterizes as an “ivory tower” question—but because, should the Court rule in favor of the religious charter, the decision could jeopardize charter schools having access to public funding, something all charter schools currently depend on. According to the Alliance, every state with charter school laws mandates that charter schools operate as public schools, and the federal Charter School Program, which finances charter expansion, can only fund public charter schools by law. But St. Isidore argues that it should be allowed to open a religious charter because it is a private organization.

So to settle the question of whether St. Isidore can open a religious school, the Supreme Court must decide whether charter schools are public actors, like district schools, or private contractors that provide educational services. Those arguing in favor of St. Isidore claim that, at least in the state of Oklahoma, charter schools are not truly public schools, despite the public label assigned to them by the legislature. But a Court ruling in favor of that argument could set a legal precedent going forward that the public status—and therefore the public funding—of charter schools everywhere is in question.

Oklahoma is one of thirty-four states that require all charter schools to have a private charter school operator—some entity that enters into the agreement to open the school and has a board which governs its operations. Most of these states require the operator to be an incorporated nonprofit, except for Arizona and Delaware, which also permit for-profit charter school governance. In the case of St. Isidore, the nonprofit operator is St. Isidore of Seville Virtual Charter School, Inc.

However, in five states—Alaska, Kansas, Maryland, Montana, and Virginia—the charter school operator is the public school district in which the school is located and the charter school is part of the public school district. In these states, charter schools exist as they were originally intended—as innovative schools largely free of restrictions so they’re better able to serve a purpose the local public school cannot. Alaska’s charter schools, rated by the pro-charter EdNext as the number one charter state for student performance, include Ayaprun Elitnaurvik, a Yugtun immersion charter school. These schools are part of the school district and their teachers enjoy all the rights and protections of being a public school employee.

Seven other states—Arkansas, California, Iowa, Louisiana, Texas, Utah, and Wisconsin—allow both district-run and independent charters. School districts govern 75 percent of all Wisconsin charter schools. Twenty-one percent of California charter schools are dependent charter schools, meaning they are part of a public school district.  

Because district-run charter schools are operated directly by the state without a private operator standing in between, these charter schools are government-run entities and would continue to receive public funding no matter the fate of St. Isidore.

An advantage of having charter schools run by public school districts is that they are less apt to be plagued by the fraud and mismanagement issues that are regular occurrences in the charter school sector operated by private entities, such asinsider deals, related party transactions, for-profit operations, and outright financial misappropriation. That’s because, unlike with private operators, school operations—such as procurement, employee compensation, and  contracting—are as transparent as in any public school in the district. Teachers are professionally prepared and certified, and can claim the rights and protections of district employees. Parents and voters can voice complaints or concerns to an elected school board that governs all district-run schools, including charter schools.

And yet any suggestion to have charter schools governed exclusively by public school districts so they can continue to operate transparently and receive federal and state funding seems to be the Alliance’s worst nightmare. According to The 74,should the Supreme Court rule in favor of St. Isidore and prompt states to reevaluate the public/private status of charters, the Alliance fears “school districts could just absorb existing charter schools to keep them public, or at least add more government oversight.”

It is difficult to understand why profiteering, a lack of transparency, and the ability to commit fraud would be needed for school innovation. The states that operate charter schools publicly have developed stable and innovative schools responsive to the needs of their community. But the charter lobby will likely fight tooth and nail to preserve the status quo.

The powerful charter chains—with their high-salaried executives, for-profit operator owners, and the real estate empires that have emerged—have enormous sway over charter schools proponents like the Alliance. Within the first five years after the opening of the original charter schools in 1992, four for-profit chains emerged: Leona, Charter Schools U.S.A, National Heritage Academies, and Academica, soon followed by the giant for-profit online charter chains, K12/Stride and Connections Academy. And they, along with corporate nonprofit chains, will work around the clock to protect their interests if the Supreme Court rules in St. Isidore’s favor.

But there may be hope for those who fight for charter school accountability, transparency, and reform. As we contemplate the possibility of a ruling in favor of St. Isidore, we should think deeply about reforms that will restore charter schools to their original mission as places where educators and parents have the freedom to create new learning models in which public schooling is a reality, not just a label.

The National Education Association analyzed Trump ‘s proposed budget and finds that it contains deep cuts and massive support for privatization by promoting vouchers and charter schools. The proposal mirrors Project 2025 by turning Titl 1 for low-income students and IDEA funding into block grants that can be converted to vouchers. The overall goal is to undermine public schools and cut funding.

FY2026 Budget Request Slashes Education Funding, Shortchanges Students

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President Trump’s FY2026 “skinny” budget request to Congress, released on May 2, cuts non-defense domestic spending by 22.6%.  The Department of Education sustains a $12 billion reduction, a cut of approximately 15.3%. 

! Since the President’s budget does not list specific funding requests for every federal program, the 46-page document is a “skinny” budget. Congress ultimately has the power of the purse, but the proposal is a clear signal of the White House’s priorities: a massive 24 percent cut to U.S. domestic spending, and, privitazing our nation’s public education system.  

 

 The narrative says the budget “maintains full funding for Title I,” but the numbers tell a different story. Title I and 18 unidentified programs are combined to create a single block grant, dubbed the “K-12 Simplified Funding Program,” then that block fund is cut by $4.535 billion cut.

 

 All seven Individuals with Disabilities Education Act (IDEA) programs are combined to create a single block grant called the “Special Education Simplified Funding Program.” The approach perpetuates the current shortfall—the federal government now covers 13% of special education costs, far short of the 40% Congress promised when the law was passed. 

 

 Programs slated for elimination include English Language Acquisition (Title III) and the Teacher Quality Partnership, which addresses the teacher shortage through deep clinical practice. 

 

 The budget shifts costs to states and institutions of higher education to reduce the federal investment in today’s students—our nation’s future leaders and workforce—as much as possible.  

 

 Regrouping specific, separate programs into block grants, in theory gives states more flexibility on how the money is spent. In reality, block grants usually lead to less funding and less accountability for our most vulnerable students. As the strings attached to the funding are cut, many states could maneuver block grant funds over to private school voucher programs. 

 

 Amidst these cuts, the proposal calls for investing $500 million, an increase of $60 million, to expand the number of charter schools across the country. Charter schools, along with private school vouchers, drain scarce resources for traditional public schools. 

 

May 2025

Governor Gregg Abbott signed his big voucher bill into law yesterday, repeating promises he has made that are most certainly false. He claimed that vouchers will put Texas on a path to being the number one school system in the nation. Several other states have large voucher programs–e.g., Florida, Arizona, and Ohio–and none of them is the number one rated school system in the nation.

If anything, vouchers and charter schools break up the common school system that states pledge in their constitutions to support. Public schools are one system, regulated by the state, subject to elected local school boards. Charter schools are another, lightly regulated by the state, some for-profit, some as corporate chains, managed by private boards. Voucher schools are a third system, almost entirely deregulated, not required to accept all students, as public schools are. Voucher schools are not required to have certified teachers, as public schools are. Voucher schools are exempt from state testing. Most voucher schools are religious schools, managed by their religious leader. Private and religious schools choose their students.

Vouchers have been a big issue since the early 1990s. The first voucher program was launched in Milwaukee in 1990. The second started in Cleveland in 1996, ostensibly to save poor kids from failing public schools. Neither Cleveland nor Milwaukee is a high-performing district.

What we have learned in the past 30-35 years about vouchers is this:

  1. Most students who use vouchers were already enrolled in nonpublic schools.
  2. The students who transfer from public to private schools are likely to fall behind their peers in public schools. Many return to public schools.
  3. The public does not want their taxes to be spent on religious schools or on the children of affluent families. In nearly two dozen state referenda, voters defeated vouchers every time.
  4. The academic performance of students who leave public schools to attend nonpublic schools is either the same or much worse than students in public schools.
  5. Vouchers drain funding from public schools, where the vast majority of students are enrolled. This, the majority of students will have larger classes and fewer electives to subsidize vouchers.
  6. Vouchers are expensive. Arizona is projecting a cost of $1 billion annually. Florida currently is paying $4 billion annually.

To learn more about the research, read Joshua Cowen’s book The Privateers: How Billionaires Created a Culture War and Sold School Vouchers (Harvard Educatuon Press).

Governor Abbott surely knows these facts, but he determined that vouchers were his highest priority. Certainly they make him the champion of parents who send their children to private and religious school. All will be eligible for a subsidy from the state. And Abbott delivered for the billionaires who funded his voucher campaign.

Edward McKinley of the Houston Chronicle wrote:

Gov. Greg Abbott signed a $1 billion school voucher program into law Saturday, cementing the biggest legislative victory of his decade in office before a huge crowd including families, legislators and GOP donors.

Abbott framed the ceremony as the climax of a multiyear effort by himself and advocates around the state, and touted the state’s new program as the largest to ever launch in the nation. 

“Today is the culmination of a movement that has swept across our state and across our country,” he said, using the speech to call out parents in the crowd who had already pulled their students from “low-performing” public schools to put them into private ones. “It’s time we put our children on a pathway to have the number one-ranked education system in the United States of America.”

He put pen to paper at a wooden desk in front of the Governor’s Mansion, as a gaggle of children stood around him wearing their private school colors and logos. Someone shouted, “Thank you, governor!” before the crowd of nearly 1,400 people erupted in applause. Abbott pumped his fist in the air. 

The ceremony marked a major moment for the third-term Republican, who threw his full political weight and millions of campaign dollars into a push for private school vouchers, overcoming a legislative blockade that had lasted for decades. The bill he signed into law will give Texas students roughly $10,000 a year that they can put toward private school tuition, tutoring, textbooks and other expenses…

Texas Education Agency Commissioner Mike Morath and Pennsylvania billionaire Jeff Yass mingled in the crowd. Yass contributed more than $12 million to Abbott’s campaign last cycle, as the governor sought to unseat anti-voucher Republicans in the 2024 primary election.

Abbott was joined on stage by U.S. Sen. John Cornyn, Lt. Gov. Dan Patrick, House Speaker Dustin Burrows and the House and Senate authors of the bill. Also in attendance were private school leaders, including Joel Enge, director of Kingdom Life Academy. 

After Abbott’s address, Enge told the crowd he founded his Christian school after working in public schools in a low-income area of Tyler and watching children fall behind. His speech had the feel of a sermon.

“Children who have been beaten down by the struggles in the academic system that did not fit the system will now be empowered as they begin to find the right school setting that’s going to support them and to allow them to grow in confidence in who God created them to be,” he yelled, to raucous cheers. “Amen!…”

Hours earlier, Democratic legislators, union leaders and public educators gathered in the parking lot of the AFL-CIO building across the street from the governor’s mansion, where they had a much different message. 

Echoing lines used throughout committee hearings and legislative debates for the past few years, they warned that vouchers would hurt already struggling neighborhood public schools by stripping away their funding. About two dozen people swayed under the direct sun, waving signs that said “public dollars belong in public schools” and “students over billionaires.” 

“Today, big money won and the students of Texas lost,” said state Rep. James Talarico, an Austin Democrat. “Remember this day next time a school closes in your neighborhood. Remember this day next time a beloved teacher quits because they can’t support their family on their salary.”

Several speakers pointed out that while Republicans fast-tracked the voucher bill, they have yet to agree on a package to increase funding to public schools and raise teacher pay.

State Rep. Gina Hinojosa, an Austin Democrat, said she hoped this defeat could sow the seeds of future victories. Abbott and most legislators are up for reelection next year.

“He may have won this battle, but the war is not over,” she said. “There will be a vote on vouchers and he can’t stop it, and it will be in November 2026.”

What’s in the bill

The new law stands to remake education in Texas, granting parents access to more than $10,000 in state funds to pay for private school tuition and expenses, or $2,000 for homeschoolers. The first year of operation will begin in 2027, and in the run-up, the state will choose nonprofits to run the program, develop the application process and pick which families will have access.

All students will be eligible, although families making more than 500% of the federal poverty line, about $160,750 in income for a family of four, cannot take up more than 20% of the funds. The funds will be tied roughly to the amount of money the students would have received in public schools, meaning students with disabilities will receive extra.

School vouchers have become a signature of Abbott’s three terms in office. 

After the COVID-19 pandemic, other Republican-controlled states such as Florida, Arizona, Iowa and Indiana created or expanded their own voucher programs. But school choice advocates repeatedly fell short in Texas thanks to an alliance between Democrats and rural Republicans. Bills passed the Senate but failed to gain traction in the House. 

Then, in May 2022, Abbott announced in a speech at San Antonio’s Southside that he’d be throwing his full weight behind the policy. Even as public schools struggled to keep teachers in the classroom and balance their budgets, the governor told lawmakers he wouldn’t approve extra funds until a voucher bill made it to his desk. When it didn’t happen, even in special sessions, he took to the campaign trail, spending millions to unseat about a dozen key GOP lawmakers who stood in his way.

This session, he enlisted President Donald Trump’s help at the last minute to rally Republican House members, some of whom said they felt forced to back the policy.

Critics warn the state’s voucher program lacks safeguards to ensure it reaches the children it was designed to help and say they expect many of the slots to go to students already in private schools, which can pick and choose who they educate. The majority of private schools in Texas are religiously affiliated, and the average tuition costs upwards of $10,900, according to Private School Review.

Though $1 billion is set aside for the program in the first biennium, the nonpartisan Legislative Budget Board projects it could grow exponentially in the next decade amid huge demand from students currently in private or home schools.

It remains to be seen how many private schools will accept the vouchers, but many advocated their passage, including Catholic, Jewish and Muslim schools.

Although Abbott has said repeatedly that the program won’t pull funds from public schools, because schools are funded based on attendance, the LBB analysis showed that the program would reduce state payments to public schools by more than $1 billion by 2030. 

John Thompson, historians and retired teacher, keeps us informed about the news from Oklahoma. In this post, he looks at the blame game surrounding the Tulsa public schools.

He writes:

As the Tulsa World recently explained, State Auditor Cindy Byrd issued a “scathing new forensic audit of Tulsa Public Schools” which “laid the blame on the administration of former Superintendent Deborah Gist, who served as Tulsa superintendent for the audited time of 2015-2023.” Byrd “also said multiple school district administrators ‘created and fostered a culture’ of noncompliance and systemic lack of internal controls that ‘potentially placed millions of taxpayer dollars in jeopardy.’”

I’m not qualified to comment on the financial side of the audit, but I strongly agree with the World that Byrd has an impeccable record as a financial auditor.

And as I completed this post, another impeccable institution, The Frontier, discovered, “Deborah Gist and her deputies were quietly arranging an exit plan for the official behind it (Fletcher) — and using secret payments to a private consultant to manage the transition, according to internal district records obtained by The Frontier.” It further explained: 

The newly obtained documents — including auditors’ notes and memos, internal district emails, and procurement records — shed new light on these gaps. They show that Gist and her deputies began planning Fletcher’s departure as early as December 2021, more than six months before the district reported his scheme to the police. 

Moreover:

Gist and former assistant superintendent Paula Shannon hired a New York-based human resources consultant, Talia Shaull, to manage Fletcher’s exit, paying her $175 per hour through the Foundation for Tulsa Schools, emails and contracts show. According to the documents, the arrangement to pay her directly through the foundation was designed “to avoid Board approval, keeping the project confidential” and violated district procurement policy.

Getting back to the history I witnessed, in 2019, a comment by a Tulsa teacher was posted on the Diane Ravitch blog with the title of Tulsa: Broadie Swarm Alert. It began with the teacher’s statement, “Welcome to my Hell in Tulsa.” The introduction explained that a Broadie “is someone ‘trained’ in the top-down management philosophy of Eli Broad at the unaccredited Broad Superintendents Academy. They are known for setting high goals and meeting none of them.”

In other words, their methods foreshadowed those of today’s Elon Musk.

The Broad Center was a “venture philanthropy” committed to everyone being on the same page for test-driven accountability, mass firings of teachers, and charter schools. It had an extensive record of spreading disruption, imposing script-driven instruction, and driving teachers out of the profession, while failing to improve student outcomes.

Byrd’s audit found that during the Gist administration the TPS “received payments totaling $554,772 from the Broad Center.  It “utilized at least 23 different vendors with Broad Academy connections. The majority of these vendors did not have a relationship with [the] TPS prior to the hiring of the Broad related alumni.” Moreover, the “TPS retained 33% of the employees who received the recruitment or retention bonus payments, 40% of these employees did not continue their employment for more than five years, with 25% remaining for less than two years.”

The audit and reporting on the Gist administration are consistent with my experience with Broadies, and their questionable approaches to data. During the first meeting I had with a consultant hired to implement their agenda, I showed him scatter-grams from the TPS web site that showed how difficult (or completely impossible) it would be to take into account the effect of the district’s segregation when trying to measure individual secondary school teachers’ effectiveness. He replied in a scientific manner, “Oh Sh__!” I repeatedly spoke with consultants who, like him and like me, could not get Gist or her Broadies to listen to social and cognitive science, or to teachers.

Similarly, when the OKCPS hired John Q. Porter, a Broadie from an affluent district’s finance department, he would blow off concerns expressed by my students, colleagues, and researchers. He was adamant in demanding frequent surprise visits by administrators and, then, placing a camera in every classroom so he could see if each teacher was teaching the same lessons in the same way according to the same schedule. Porter was forced to resign in less than a year due to seemingly small violations of district policy, but the Washington Post later reported that he had not properly divested from “Spectrum International, the document management company he founded in 1993.”

Finally, I’m not in a position to comment on the Tulsa World’s concern that Cindy Byrd, who is running for lieutenant governor, was being political when investigating diversity, equity and inclusion efforts,  and whether its funds could be “associated with violations of House Bill 1775.” The World acknowledged that Byrd “stops short of saying any law, such as the mean-spirited House Bill 1775 or Gov. Kevin Stitt’s order to report school DEI expenses, was violated.” It properly noted that, “Classifying DEI or HB 1775 programs is subjective, but it’s already being seized upon by anti-TPS and anti-public education critics.”

And that brings me back to the real harm done to Tulsa by the ideology-driven “Billionaires Boys Club” – not DEI. Back when Deborah Gist and her funders were imposing test-and-punish on schools, I found that many or most conservative legislators who I knew were opposed to the campaign to run schools like venture capitalist institutions. I hope they will remember that the real scandals that fostered a destructive culture that the audit documented were linked to corporate school reformers, not DEI or the efforts to defend meaningful teaching and learning in public schools.  

Samuel Abrams has deep experience in the study of education privatization; for many years, he directed an institute on that subject at Teachers College, Columbia University. He is now working with the International Partnership for the Study of Educational Privatization.

He is also affiliated with the National Education Policy Center at the University of Colorado at Boulder, where he published a new report on the problems with education savings accounts (aka, vouchers).

Read the report.

Here is his executive summary:

Education Savings Accounts (ESAs) were first enacted in Arizona in 2011 as a particularly deregulated way to offer vouchers for specific students, particularly those with disabilities. As opposed to conventional private school tuition vouchers, ESAs could be used to cover tuition plus a range of other educational services. Soon thereafter, four additional states substantially replicated this new form of funding. But in 2022, Arizona and West Virginia took ESAs to another level, constructing them as universal vouchers, with all students eligible to participate, without regard to family income, prior public school attendance, or student disability. ESAs in these states could be used to cover either tuition at minimally regulated private schools or pods (mini schools with children of likeminded parents); or costs associated with homeschooling, from books and online curricula to field trips and ancillary goods and services deemed essential. Nine states have since followed suit and more appear poised to do the same. These ESAs constitute a dramatic elevation of educational outsourcing, at once fulfilling Milton Friedman’s long-argued libertarian vision for vouchers and comport-ing with the Trump administration’s commitment to downsize government and let the market fill the void.

Because of the unregulated nature of ESAs, accountability issues quickly emerged regarding both spending and pedagogy. Proper monitoring of spending by parents dispersed throughout a given state, for so many different types of goods and services, has swamped the capacity of state offices. The same holds regarding accountability for the quality of instruction in private schools, pods, and homeschools now supported with taxpayer money.

Meanwhile, because ESAs and other voucher programs tend to serve families who have already opted for private schools or homeschooling, two fiscal outcomes have become apparent. First, the programs create a new entitlement burden for taxpayers; rather than merely shifting an existing subsidy from public to private schools, the programs obligate taxpayers to support new groups of students. Second, the new subsidies have incentivized private schools to bump up tuition, on the grounds that families now have extra money to pay the higher tuition.

In addition, ESAs impact public schools. These schools suffer when substantial funding follows students who use ESAs for homeschooling or attendance at private schools or pods. The stubbornness of fixed costs for core operations for public schools often necessitates cuts to staff, from teachers to nurses, and resources, from microscopes to musical instruments. The impact on rural public schools and thus rural civic life may be greatest. Charter schools and conventional vouchers have played little role in rural America, as filling seats in charter or private schools in sparsely populated parts of the country represents a steep challenge. But with ESAs, students may leave public schools for pods or homeschooling. If enough students leave some small rural schools, those schools will have to consolidate with schools in neighboring towns, meaning significant travel for students and the forfeiture of much community life.

As with conventional vouchers, ESAs can lead to inequities and discrimination in student admissions and retention. Few protections exist in private schools, particularly religious schools, against discrimination based on disabilities, religion, or sexual orientation. Participating schools have also been documented to push out low-achieving students, thus adding to the problem of concentrating these students in default neighborhood public schools. For faculty and most staff, participating religious schools also generally afford no protection from dismissal on the grounds of religious affiliation or sexual orientation.

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RECOMMENDATIONS:

Given the damage Education Savings Accounts can do, the following measures are recommended:

State Departments of Education

• Implement stricter oversight of what goods and services may be purchased with ESA funds.

• Strengthen state capacity to monitor ESA-related purchases.

• Require publication of all participating schools, their graduation rates, and their availability to students with disabilities.

State Lawmakers

• Most importantly, legislators should repeal existing programs.

• If ESAs cannot be repealed in states where they have already taken hold:

o Oppose any expansion of these programs to include new groups or cohorts.

o Pass legislation that imposes clear budget and spending limits on ESA programs to rein in cost overruns that have become common with these programs.o Require stricter oversight of what goods and services can be purchased with ESA funds and strengthen state capacity to monitor ESA-related purchases.

o Mandate periodic audits of curriculum and instructional practices in ESA-receiving schools.

o Require ESA-receiving schools to hire certified teachers.

o Require ESA-receiving schools to conduct the same annual academic assessments that public schools are required to administer.

o Require ESA-receiving schools to abide by existing federal and state civil rights and anti-discrimination laws, especially related to students with disabilities and LGBTQ+ students and faculty.

o Require that any effort to create a new ESA program be subject to open public hearings and, if feasible, public referenda.

Local Government Officials

• In states where ESAs exist, document the effects these programs have on students, families, and local public schools.

• In these same states, seek legislation to alleviate negative effects.

• Engage in awareness-raising efforts, such as informing local constituents of the po-

tential harms of ESAs, especially in rural communities, and adopting resolutions opposing ESAs.

We all make mistakes. You know how sometimes you misplace a $20 bill? You are sure you left it on top of your dresser. But it’s not there. It happens.

Don Wiener of the Center for Media and Democracy writes that KIPP can’t identify what happened to $52 million. It’s not on the dresser. Where might it be?

Wiener writes:

Roughly 7% of public school students nationwide now attend charter schools, and while traditional public school enrollment has declined, enrollment in charter schools is increasing every year, according to the Pew Research Center.

The Knowledge is Power Program — known as KIPP — is one of the largest charter school networks in the country, operating 278 K–12 “college-preparatory” schools nationwide. More than half of these schools are concentrated in six locations: Texas, Los Angeles, the District of Columbia, New York City, the San Francisco Bay Area, and Atlanta.

A Center for Media and Democracy (CMD) review of KIPP’s fiscal year 2023 IRS filings reveals that its schools in the U.S. reported more than $52 million in unexplained spending under the category “all other expenses.”

“The lack of transparency in charter schools and their [management organizations] invites profiteering, grift, and fraud,” said Carol Burris, executive director of the Network for Public Education.

Founded in 1994, KIPP has been criticized for high teacher turnoverclosing selected schools because of low graduation rates and low test scores, and exaggerating the college graduation rate of its students. KIPP has also been accused of over-reporting its primary and secondary school graduation rates by not counting many of the students who drop out along the way.

KIPP’s lack of transparency in reporting how it spends taxpayer dollars is notable. “Since its revenue from taxpayers is commingled with its revenues from wealthy charter school advocates and the foundations they control, there is no way to sort out how much taxpayer money has directly gone into luxurious trips for KIPP employees,” wrote Lisa Graves, CMD’s former director and current board president, in a 2016 study.

In her review of previously unreleased documents, Graves found that in addition to spending on already notoriously high salaries for school managers, KIPP’s central office was paying for expensive resort vacations and trips to Disney World for staff members, for example.

In 2022, a KIPP official in Washington, D.C., embezzled $2.2 million to buy automobiles and other items for personal use.

Insight into how KIPP schools spend taxpayer money should be readily available from the annual IRS 990 forms that all nonprofits file detailing their revenue and expenses, management, and governance. But in its IRS filings, KIPP consistently lumps together large unidentified expenditures in the single “all other expenses” line item.

Clearly listed expenses fall into ordinary categories such as personnel salary and benefits; student expenses; occupancy expenses; office expenses; and general expenses, such as insurance. Payments to contractors are also listed.

For the 2022–23 academic year, each of the 278 KIPP schools averaged $151,000 in “other” or unitemized expenses. The network’s nonprofit charter management organization (CMO) does not explain how that $52 million was spent.

“These findings do not surprise me at all,” said Burris, who has researched the charter school world for years. “Charter chains like KIPP create related organizations, divide salaries between individual schools and the CMO, and at times will even create for-profit related entities, making it impossible to understand how money is spent.”

Even though audits can help provide more information, they generally “do not include real detail,” Burris added. “This contrasts with public school districts that present detailed budgets and where any expenditure can be viewed with a FOIA [Freedom of Information Act request], no matter how small.”

The 11 charter schools in the Kipp Metro Atlanta Collaborative reported total expenses of $112.7 million. Of that, almost $11 million — approximately $1 million per school — is listed under “all other expenses.”

The IRS requires that each of the “other expenses” be itemized if the total in that category accounts for more than 10% of total expenses. As with many other KIPP schools, the “all other expenses” reported for Atlanta’s charter network fall just shy of the threshold for itemization.

IRS filings for the 2022–23 school year show the KIPP Texas network spent a total of almost $481 million, with almost $6.5 million of that reported as “all other expenses.”

For the same school year, Kipp Social Public Schools in Los Angeles reported almost $4 million in “all other expenses,” with a total of $195 million in overall expenses for its 23 schools.

Given this leeway in IRS reporting, there is no way to confirm whether taxpayer money is being used for extravagant travel or is otherwise spent inappropriately at some KIPP schools.

Carol Burris is the executive director of the Network for Public Education. She was a high school teacher and principal in New York State, where she was honored by the state principal’s association as principal of the year. She is a tireless advocate of public schools and an equally tireless opponent of privatization.

She writes:

On April 30, the U.S. Supreme Court will hear a pivotal case concerning whether a charter school can teach a religious curriculum. The Oklahoma Statewide Virtual Charter School Board v. Drummond addresses Oklahoma’s St. Isidore of Seville Catholic Virtual School’s attempt to become the nation’s first publicly funded religious charter school. 

This case was always intended to go to the Supreme Court, testing the limits of the separation of Church and State. What is surprising, however, is who has entered the fight against St. Isadore. The National Alliance for Public Charter Schools (NAPCS), which has never met a charter school it did not like, has filed an amicus brief against its existence. This is unexpected from an organization that has supported charter schools run by for-profit corporations, virtual schools with poor outcomes, and even micro-schools, claiming that different models provide needed choice and innovation. When public money is allocated to religious private schools via vouchers, the charter lobby is either supportive or silent in the name of “choice.”

The reason for their present opposition is self-interest. According to the National Alliance for Public Charter Schools, “a decision to allow religious charter schools will throw charter laws into chaos nationwide, resulting in significant financial and operational uncertainties.”  Nina Rees, the former long-time CEO of the organization, lamented that a ruling in favor of St. Isadore “could also jeopardize the myriad federal and state funding streams they [charters] currently qualify for—funding that the sector has fought hard to secure and continues to fight for on the premise that students attending public charter schools are entitled to the same funds they would receive in district schools.”

On what basis, then, will SCOTUS make its decision? At the heart of the case is whether charter schools are state actors or state contractors providing educational services. The Oklahoma State Virtual Charter Board argues that merely because the state legislature declares a charter school “public,” it does not transform it into a public school. Furthermore, even if charter schools are state actors for some functions, they might not be state actors for purposes of the First Amendment, specifically regarding curriculum matters.

There is precedent for their argument.

In 2010, both a federal court and the U.S. Court of Appeals for the 9th Circuit, in San Francisco, determined, in an employment case, that an Arizona charter school was not a “state actor” and thus a wrongful termination lawsuit could not be brought forth by a former teacher.  “This case presents the special situation of a private nonprofit corporation running a charter school that is defined as a ‘public school’ by state law,” the three-judge appeals court panel said in its unanimous Jan. 4 decision in Caviness v. Horizon Community Learning Center. The court concluded that the corporation running the charter school (private non-profit or for-profit corporations run most charter schools) was not a state actor but a contractor providing a service.

In some states, where districts are the only authorizers of charter schools, charter schools likely fully meet the “state actor” test. That was the original intent of the charter movement—schools within a district free of some restraints to try innovative practices. However, only a few states still embrace that model, thanks to the relentless pressure from organizations like NAPCS, which have provided St. Isadore with more than enough fodder for its arguments. Over the years, charter trade organizations have successfully lobbied for looser charter laws, expanded charter management organizations, and vigorously defended for-profit corporations like Academica and Charter Schools USA, which use nonprofit schools as a façade. In short, they have made charter schools as “private” and profitable as possible. 

Remember how charter schools could secure Paycheck Protection Program (PPP) funds during COVID-19 when public schools could not? Charter trade organizations, including NAPCS, encouraged charter schools to leverage their corporate status, resulting in the sector securing billions of dollars. Some even provided talking points for justification.

The truth is that charter schools have used their private status when it is in their interest, even as they secure an advantage from the public label. And that is why they have only themselves to blame if the chicken comes home to roost and the sector is thrown into chaos. If that results in a shake-up of the charter industry and a return to truly public charter schools in most states, that may not be a terrible outcome. 

If your memory is good, you may recall Arne Duncan’s Race to the Top, which had $5 billion of unrestricted funds with which to spur education reform. Duncan had a contest in which states competed for a piece of that big pie. To be eligible to compete, states had to pass a law authorizing charter schools, and almost every state did. They had to agree to adopt national standards, which meant the unfinished, untried Common Core State Standards, as well as the tests based on the standards. They had to agree to evaluate individual teachers based on the rise or fall of the test scores of their students.

Eighteen states “won.”

The biggest winner was Tennessee, which won $500 million. Tennessee’s biggest new program was the creation of its so-called Achievement School District. The ASD would gather the lowest performing schools in the state into a non-contiguous district and turn them into charter schoools.

The ASD hired Chris Barbic, leader of Houston’s YES Prep charter chain, to run the ASD. Barbic pledged that he would raise the state’s lowest-performing schools into top-performing schools in five years.

He failed. The state’s lowest performing schools continued to have low scores. In 2015, he resigned, saying he needed to focus on his health and family.

The ASD limped along for another decade, without success. Nonetheless, some other states–including Nevada and North Carolina–copied the model, creating their own all-charter districts. They also failed.

The Tennessee Legislature voted this week to shut down the ASD.

The ASD removed low-performing schools from local control and placed them under a state-run district, with the goal to push Tennessee’s bottom 5% of schools to the top 25%. Many of the schools were turned over to charter operators to run under 10-year contracts.

Research showed the ASD led to high teacher turnover, and did not generate long-term improvements for students. The district also faced community backlash for taking over schools in districts that served mostly low-income communities and predominantly Black student populations. The ASD cost taxpayers over $1 billion. Only three schools remain in the ASD.

Every other part of Race to the Top failed. Evaluating teachers by test scores was a disaster: it rewarded teachers in affluent districts and schools while penalizing those who taught the neediest students. Charter schools did not have higher scores than public schools unless they chose their students carefully, excluding the neediest. The Common Core standards, with which tests, textbooks and teacher education were aligned, had no impact on test scores. The U.S. Department of Education evaluated Race to the Top and declared it a failure., in a report quietly released on the last day of the Obama administration.

On to vouchers! Since voucher students don’t take state tests, no one will know that this is a boondoggle that benefits those already in private and religious schools.

The search for miracles and panaceas goes on.

Trump’s answer. Parents know best.

Next time you get surgery, make sure the surgeon is not licensed. Next time you take a flight, be sure to fly with an unlicensed pilot.

Denis Smith retired from his position at the Ohio Department of Education, where he oversaw charter schools (which are called “community schools” in Ohio). In this post, he describes what he saw at the Network for Public Education Conference in Columbus, Ohio, in early April.

He wrote:

When It’s About Hands Off! That Also Applies to Public Schools

The Hands Off! demonstrations at the Ohio Statehouse that drew thousands of protestors wasn’t the only gathering of activists last weekend in downtown Columbus. Just a short distance away at the Hyatt Regency Hotel, a smaller but equally passionate gathering of concerned citizens from across the nation came to Ohio’s capital city to attend the Network for Public Education’s National Conference and affirm their support for the common school, the very symbol of democracy in this increasingly divided nation.

That disunion is driven in part by the rapid growth of universal educational vouchers and charter schools, where public funds flow to private and religious schools as well as privately operated charter schools and where public accountability and oversight of taxpayer funds is limited or even absent. In many states, including Ohio, those public funds in the form of vouchers are drawn from the very state budget line item that is earmarked for public schools.

Of particular concern to the conference attendees is the division in communities fueled by vouchers, which have been shown in some states to subsidize private and religious school tuition exceeding 80% of those enrolled. In Ohio, according to research conducted by former Ohio legislator Stephen Dyer, the figure is 91%.Several speakers referred to this situation as “welfare for the rich” and “an entitlement for the wealthy.” 

The research shared at the conference also confirmed the findings of the National Coalition for Public Education that “most recipients of private school vouchers in universal programs are wealthy families whose children never attended public schools in the first place.” So much for the tired Republican rhetoric of vouchers being a lifeline of escape from “failing schools” for poor inner-city children.

Another strong area of concern shared at the NPE event was the growing intrusion of religious organizations like Life Wise Academy which recruit students for release time Bible study during the school day. While attendees were told that school guidelines direct that such activities are to be scheduled during electives and lunch, the programs still conflict with the normal school routine and put a burden on school resources, where time is needed for separating release time students and adjusting the instructional routine because of the arrival and departure of a group within the classroom.

One presenter, concerned about students receiving conflicting information, said that his experience as a science teacher found situations where there was a disconnect between what he termed “Biblical stories and objective facts.” In addition, he shared that a group of LifeWise students missed a solar eclipse because of their time in religious instruction.  

Some Ohio school districts, including Westerville and Worthington in Franklin County, had to amend their policies in the wake of HB 8, which mandated that districts have religious instruction release time policies in place. The district policies had been written as an attempt to lessen the possibility of other religious programs wanting access to students and the further disruption that would cause to the school routine. 

The recent legislative activity about accommodating religious groups like Life Wise is at variance with history, as conference chair and Network for Public Education founder Dr. Diane Ravitch pointed out in her remarks about the founding of Ohio. As part of the Northwest Territory, she noted that Ohio was originally divided into 32 plots, with plot 16, being reserved for a public school. No plot was set aside for a religious school.

Ohio became the first state to be formed from the Northwest Territory, and its provision for public education would become a prototype for the young republic. The common school, an idea central to the founders of the state, would be located such “that local schools would have an income and that the community schoolhouses would be centrally located for all children.”

Unfortunately, the idea of the common school being centrally located in every community is an idea not centrally located within the minds of right-wing Republican legislators. From the information exchanged at the conference, that is the case in the great majority of statehouses, and a matter of great concern for continuing national cohesiveness.

The theme of the NPE National Conference, Public Schools – Where All Students Are Welcome, stands in marked contrast with the exclusionary practices of private and religious schools where, unlike public schools, there are no requirements to accept and enroll every student interested in attending. While these schools are reluctant to accept students who may need additional instructional support, they show no reluctance in accepting state voucher payments.

Texas Rep. Gina Hinojosa. Photo: Texas House of Representatives

Texas State Representative Gina Hinojosa, one of the keynote speakers, told the audience about her experience in fighting Gov. Greg Abbott’s voucher scheme and the double meaning of the term school choice. “School choice is also the school’s choice,” she told the audience, as she estimated that 80% or more of state funds will go to kids who are already enrolled in private and religious schools.

Her battle with the Texas governor, who has defined the passage of voucher legislation in the Lone Star State as his “urgent priority,” is a tale of his alliance with Jeff Yass, a pro-voucher Pennsylvania billionaire who has donated $12 million so far to Abbott’s voucher crusade. 

Hinojosa was scathing in her criticism of Abbott and his fellow Republicans and of a party that once “worshipped at the altar of accountability.” Now, she told the attendees, “they want free cash money, with no strings attached.” 

“Grift, graft, and greed” is the narrative of appropriating public funds for private purposes, Hinojosa believes, a tale of supporting “free taxpayer money with no accountability.”

Minnesota Gov. Tim Walz. Photo: Denis Smith

The NPE conference ended with an address by Minnesota Gov. Tim Walz, the 2024 Democratic Vice-Presidential nominee. With his background as a former teacher and coach, Walz had a strong connect with an audience comprised mostly of educators and public school advocates. His folksy language and sense of humor further endeared him to the conference attendees.

Based on the continuing bad behavior of Jeff Yass and other affluent actors in the voucher and charter wars, greedy bastards is a better descriptor than oligarchs, he observed. From the reaction of the audience and what they heard previously from Gina Hinojosa and other presenters, the language offered by Walz was a more accurate definition of welfare for the wealthy. 

At the end of his remarks, Walz encouraged educators not to despair but to accept their key place in society. “There is a sense that servant leadership comes out of serving in public education.”

Attendees at the NPE conference included educators, school board members, attorneys, legislators, clergy, and policy makers – a cross-section of America. Their presence affirmed a core belief that the public school, open to all, represents the very essence of a democratic society. And there is no debate about whether or notthose schools are under attack by right-wing legislatures intent on rewarding higher-income constituents with tuition support to schools that choose their students as they exercise the “school’s choice.”(As a devotee of the Apostrophe Protection Society, I applaud this distinction.)

So what are we going to do about this? Attendees left the conference with some strong themes.

The choir needs to sing louder.

Hope over fear. Aspiration over despair.

The road to totalitarianism is littered with people who say you’re overreacting.

Who are the leaders of the Democratic Party? They’re out there. On the streets.

It’s not just don’t give up. Be an activist.

As the loudness about the subject of what is more aptly described as “the school’s choice” gets louder,” you can bet that servant leaders like Diane Ravitch, Gina Hinojosa, Tim Walz and others are making a difference in responding to the challenge of servant leadership to ensure that the common school, so central to 19th century communities in the Northwest Territory and beyond, continues to be the choice of every community for defining America and the democracy it represents.