Archives for category: Education Industry

A school should be the anchor of its community. It should be a place where children and families feel welcome, a place where they learn to work and engage with others who are different from themselves but share common concerns. A public school is a mainstay of our democracy, because for many people, it is the first place where they have a chance to learn and work with others to achieve their goals for their community.

But read this story, and what do you see? Two charter schools were sold to an eager investor.

Colliers International Education Services Group brokered the sale of two Florida charter schools totaling 134,000 square feet. ESJ Capital Partners and MG3 Developer Group sold the properties for $30.5 million to AEP Charter KCC II LLC and AEP Charter Renaissance LLC, entities affiliated with Portland-based Charter School Capital, according to public records.

The assets included in the transaction are the 105,002-square-foot Renaissance Charter School at University located at 8399 N. University Drive in Tamarac, Fla., and the 28,998-square-foot Kid’s Community College Southeast Riverview at 11515 and 11519 McMullen Road in Riverview, Fla. Charter School Capital’s facilities arm, American Education Properties, paid $22.3 million for the Renaissance property and $8.2 million for the Kid’s Community College asset.

SKILLED MANAGEMENT ORGANIZATIONS

Renaissance Charter School at University opened in 2012 and will serve 1,426 students in the 2017-2018 school year. Managed by Charter Schools USA, the building was built in 1982 and underwent renovations in 2015. Kid’s Community College Southeast Riverview opened in 2003 and is slated to serve 397 students in the 2017-2018 school year. It is independently operated by Kid’s Community College, a charter management organization that manages a total of eight charter schools serving Pre-K through high school.

As part of the acquisition, Charter School Capital assumed the existing 20-year leases on both schools, which expire in 2032 and 2033, respectively. Charter schools have enjoyed rising popularity in the state since their inception in 1996. The deal is indicative of the continued interest in educational-based real estate.

“We enjoyed working once again with ESJ and MG3 to arrive at terms that will give the charter school operators the peace of mind that comes in knowing their facilities are securely theirs to operate for years to come,” said Stuart Ellis, president & CEO of Charter School Capital, in a prepared statement.

Todd Noel, executive vice president & national director of the Education Services Group based out of Phoenix, along with Achikam Yogev, senior vice president based in South Florida, represented the seller in the transaction. ESJ Capital Partners is the manager of ESJ Real Estate Fund LLC and focuses on investing in charter schools and medical office buildings. Charter School Capital provides growth capital and facilities financing services to charter schools.

GROWING INVESTOR INTEREST
“Because of the complexities, charter schools have traditionally sold individually and rarely as a portfolio, but the continued interest in this asset class has paved the way for more creative strategies and more complex deals being done on behalf of our clients,” stated Yogev, in prepared remarks.

This isn’t the first deal between ESJ Capital Partners and Charter School Capital. The Aventura-based investment advisor sold a portfolio of five Florida charter schools in November 2016 to Charter School Capital in a $72 million transaction.

No surprise, it happened in Florida, where charter schools open and close with unsurprising rapidity. They are not the anchor of their community. They are exemplars of commerce and consumerism.

My reaction on reading this story: revulsion. It is stories like this that persuades me that the very concept of charter schools is wrong, especially when they operate for-profit and when they are part of a corporate chain. They are not about education; they are not about learning; they are not about children; they are about money and profit.

Allowing the education of American children to be distorted by this greedy industry is a blight on American society.

A reader sent a letter signed by Governor Rick Snyder and the State Superintendent Brian Whiston lamenting the poor performance of Michigan’s schools on the National Assessment of Educational Progress.

Please note that the Governor makes no reference to the failure of the state’s obsession with school choice over the past 15 years.

Nor does he say anything about the proliferation of charters, most of which operate for-profit, and most of which perform worse than the public schools.

Nor does he acknowledge that the state’s education agenda is a wholly owned enterprise of the DeVos family.

Nor does he mention the disaster of the Educational Achievement Authority, into which the state of Michigan poured millions of dollars and overpaid administrators sent by the Broad Academy, only to see the EAA collapse in failure.

This is a politician who does not know the meaning of the word accountability. He is accountable for nothing and responsible for nothing. He should be held accountable not only for the Flint Water Crisis but for the dismantling of what was once a great public school system in the state of Michigan.

For shame, Governor Snyder.

Sad. Very sad.

Ann Cronin, a retired teacher of English in Connecticut, writes about what charters were supposed to be and how they have failed to fulfill their original promise. Nowhere have they been more disappointing than in Connecticut, where the harsh “no excuses” model prevails. The charters in the Nutmeg State have won generous state funding, thanks to the campaign contributions to Democratic Governor Malloy by hedge fund managers and the OxyContin billionaire Sackler Family.

Cronin thanks the NAACP for speaking truth to power.

She writes:

“An English teacher friend of mine was a finalist for Connecticut Teacher of the Year in the mid 90’s. As one of the culminating steps in the selection process, the four finalists were assigned a topic little was known about at the time. They were instructed to research it and present their findings to an audience.

“The topic was charter schools.There were no charter schools in Connecticut at the time. My friend concluded that the worth of charter schools would depend on the answers to two questions:

“1) Will the innovations created at charter schools inform and improve the public schools that the vast majority of children and adolescents in the U.S. attend?

“2) Will charter schools be held accountable to address student needs as traditional public schools are required to do?

“Fast forward to 2017: We now have had charter schools in Connecticut for 21 years. The answers to my friend’s two questions came from the NAACP.”

The answer to number 1: NO.

The answer to number 2: Not yet.

Howard Blume in the Los Angeles Times describes the flood of campaign cash that managed to sink School Board President Steve Zimmer and another candidate and put a pro-charter majority in charge of the school board.

The billionaires pulled out all the stops to gain control of the board. Now the president of the LAUSD board is Ref Rodriguez, who launched a charter chain in LAUSD. Contrary to my first report, Rodriguez stepped down from the board of his charter chain (PUC). But his sympathies are clear.

A last-minute splurge of donations from billionaire Eli Broad and businessman Bill Bloomfield swept the pro-charter candidates to victory. More than $15 million was spent by both sides, the most ever spent on a school board election in American history.

Netflix founder Reed Hastings alone spent more than $7 million. The Waltons added a few shekels.

The billionaires strike again, intent on destroying public education and democracy, and opening even more privately managed, privately owned and nonunion charters.

Mercedes Schneider was invited to screen a film titled “Passion to Teach,” which was produced and directed by career teachers, Bart Nourse and Sandria Parsons.

She loved it! She provides information about how you can arrange a screening.

She writes:

Passion to Teach is a phenomenal film that poignantly defies the processed-food-product nature of top-down, politically-popular, test-score-centered education reforms.

I have two favorite parts. The first involves an assignment in which students and volunteer adults recreate immigrant arrival at Ellis Island and the subsequent application process for gaining US citizenship.

The second involves the end of the film, an ending that celebrates the teacher-student connection that extends well beyond a student’s time in a beloved teacher’s classroom.

However, the major point of the Parsons-Nourse film is not merely to celebrate the teacher-student relationship. It is to fuel pro-public-school activism.

I have found a sensible person writing about school “reform.” His name is Martin Levine and he writes for the Nonprofit Quarterly. Thus far, everything he has written shows a depth of common sense and wisdom that is utterly lacking among the “reformers,” especially the billionaire reformers. He must have gone to public school, unlike those user-wealthy philanthropists who have decided that they can remake American education to fit their own ideology (though never to provide urban kids the same quality of education that the philanthropists enjoyed as children). I see from his bio that he is a graduate of City College of New York, a public institution of higher education, so he is certainly a public school graduate.

Levine’s latest article ponders the failure of “reform” in Detroit. Poor Detroit has been a playground for the meddlesome and clueless rich. But Levine does not describe the collapse of the Education Achievement Authority or of Eli Broad’s failed interventions into Detroit education or DeVos’s endorsement of charters, both for-profit and nonprofit. That will wait for the next chronicler of Detroit’s fate.

Having the ability to invest billions is not enough to guarantee success. That’s one of the lessons a growing list of mega-donors and large foundations is learning from their efforts to transform and improve public education. In many cases, the initiatives they have launched have been more disruptive than effective. Missing from much of their work has been a recognition of the need to work with families and communities and a willingness to engage in the often-messy work of building success from the bottom up.

At the end of June, the multi-year, multimillion-dollar Excellent Schools Detroit announced it was quietly going out of business after seven years of trying to improve the schools of their home city. According to Bridge Michigan, “Excellent Schools Detroit began as a coalition to support the opening of good schools, the closure of underperformers and to grade the city’s traditional, charter and private schools to help inform parents…Excellent Schools Detroit received funding from numerous foundations, including Skillman, The Kresge Foundation, W.K. Kellogg Foundation and the McGregor Fund.”

He goes on to briefly touch on the Reverse Midas touch of Bill Gates and Mark Zuckerberg. Whatever they have touched in education has blown up. Unfortunately, they refuse to address the root causes of low performance. Until they do, they will continue to experience failure.

Steven Singer is sorry, really sorry for the self-proclaimed crybabies who call themselves reformers.

Their efforts to privatize public education were going well, they were under the radar, until Trump and DeVos came along and joined forces with them.

How could they continue to sell charters as a crusade for poor children when Trump and DeVos want the same?

How could they get away with the ridiculous assertion that turning public money over to private contractors was a matter of civil rights, when the most reactionary, anti-civil rights administration in generations shares their cause?

What’s next? Will they hold a joint press conference with DeVos and Jeff Sessions to denounce the NAACP for daring to demand that charters cease to operate for profit and meet minimal standards of financial and academic accountability?

It was bad enough when they took their cues from the Waltons, ALEC, and the Koch brothers. Now their champions are Trump and DeVos.

Sad.

Singer writes:

“It’s gotta’ be tough to be a corporate school reformer these days.

“Betsy DeVos is Education Secretary. Donald Trump is President. Their entire Koch Brothers-funded, ALEC-written agenda is national policy.

“But their stripes are showing – big time.

“The NAACP has turned against their school privatization schemes. The Journey for Justice Alliance is having none of it. The Movement for Black Lives is skeptical. Even their trusty neoliberal Democratic allies are seeking to put some distance between them.

“And it’s making them look… sad.

“You’d think they’d have much to celebrate. Their policies are right up there with voter disenfranchisement, the Muslim ban and building a wall.

“Charter schools – YES! Voucher schools – YES! Public schools – NO.

“High stakes testing is going gangbusters pushed by the federal government with little interference from the states.

“Common Core is in almost every school while the most state legislatures do about it is consider giving it a name change.

“And in every district serving students of color and the poor, budgets are being slashed to pieces to make room for another juicy tax cut for the rich.

“They’ve taken George W. Bush’s education vision – which neoliberal Barack Obama increased – and somehow found a way to double-triple down on it!

“They should be dancing in the streets. But somehow they just don’t feel like dancing.”

Steven J. Klees of the University of Maryland wrote this post. He is former president of the Comparative and International Education Society.

He writes:

This spring, the Florida legislature passed and this summer Governor Rick Scott signed House Bill 7069, a school reform promoted by organizations linked to the Koch Brothers and Betsy DeVos. Florida has been a poster child for conservative ideological education reform for some time. Going beyond even the federal No Child Left Behind – or as the critics call it, No Child Left Un-tested — reform of the elder Bush era, it became one of the most frequent testers of students in the nation. Basically, from February to May, students in Florida prepare for and take an endless array of tests. Florida instituted evaluation of teachers tied to student test scores years ago, motivating teachers to spend the whole year teaching to the test. On top of this testing regime, Florida has enacted many right-wing reforms: eliminating K-12 teacher tenure; grading schools A to F; and changing curricula to emphasize only what is tested, for example, eliminating recess.

Well, after a decade of this, parents began to revolt. Last year, a statewide survey highlighted two priorities for needed school reform: stop all this testing or at least cut way back – and restore recess for our children. PTAs mobilized behind these changes. The Florida State legislature began to respond by formulating the “Recess Bill” – intended to cut testing and restore recess. However, the ending point of this effort was very different than the starting point. Basically, the Recess Bill was hijacked by business – two businesses in particular – the testing industry and the charter school promotors. Testing in Florida is a half billion dollar a year business, and Pearson and other testing companies lobbied hard against cutting testing. Moreover, the budget for public education is $14bn a year, and charter advocates saw the bill as a way to capture a lot more of that money.

The result, passed in the last two hours of the the legislative session, with scarcely any discussion, was House Bill 7069. This terrifying school reform is being called “the death of public education” by its critics. The bill gives a sop to the protesting parents – it restores 20 minutes of daily recess in K-5. But it only eliminates two of the many tests that students are forced to take. It also allows school districts to opt out of evaluating teachers by their students’ test scores. However, this was just the superficial bow that tied up a major reform package that basically turns public education over to private companies to start charter schools.

There were several dimensions to this reform package. Any school in the state that received low or failing grades in the state rating system (Ds and Fs) would be closed and likely re-opened by a private corporate charter school company, the so-called “Schools of Hope.” These and other charter start-ups would be freed from most regulation and oversight by school districts. They would no longer have to test their students to see if they were doing as well as regular public schools. There would be no curriculum guidelines for charters, no need to hire certified teachers. Charter schools would even be exempt from the new recess requirement. For the first time, school districts had to share their money for capital expenditures with the charter schools.

Perhaps most astonishing is that many of the Florida Legislators who designed, promoted, and voted for this bill have strong ties to the charter school industry. Many of them or their families have become wealthy from running charter schools and, with the enactment of HB 7069, stand to make much more money. Yet there was no talk of conflicts of interest or violation of ethics laws. Contrary to Florida’s Sunshine laws, the final version of HB 7069 was put together by the Republican leadership in secret, in the last 3 days of the legislative session, turning a 7-page bill into a 278-page bill by tacking on the content of 55 other school reform bills that had been considered in the past. Analysts are still not sure what this now very complex reform will yield in practice.

There was a strong effort to get Governor Rick Scott to veto the bill as parents, teachers, school administrators, and the general public sent thousands of messages demanding a veto. But, in the final days, the charter school industry responded by giving charter school parents and students incentives, like discounts or extra credit, for sending in messages of support. The resultant legislation will be turning over a substantial segment of public education to unaccountable private sector, often for-profit, corporate managers. And this is what Betsy DeVos wants for the nation.

A charter school in Clay County, Florida, received two consecutive F grades from the state and is losing its contract.

But never fear!

The Orange Park Performing Arts Academy will not close! It is converting to a private school and has assured its students that they are all eligible to receive scholarships from the state of Florida!

“The charter has been terminated, the school has not closed. The district has no power to close Orange Park Performing Arts Academy, they can terminate their contract. We need to be very clear because at the end of the day, it’s all about the students,” said Chris Norwood, president and founder of the Miami-based Florida Association of Independent Charter Schools Inc.

Yes, it is all about the students!

Here is the letter that the school sent to parents.

Who will save these children from a failing charter school that will now be a failing private school?

#FailureIsAnOption

Carol Burris has written a bombshell piece exposing the links that connect charter schools, political money, and teacher certification.

Wall Street gives heavily to Governor Cuomo. Hedge fund managers love charter schools, those entrepreneurial start-ups that they identify with. Charter schools in New York have a serious problem retaining teachers. Some charters have a teacher turnover rate exceeding 50% every year. Several charters authorized by the State University of New York (SUNY) had teacher attrition rates of at least 70%. The charter committee of SUNY was appointed by Governor Cuomo. It is considering a plan to allow new teachers to bypass the state’s high standards and to gain their teaching credential from the charter. This credential would not be recognized by any public schools in New York State.

Want to know what’s behind all of these machinations?

Let’s look at the confluence of Cuomo-appointed SUNY board members to large contributions of charter boards to Cuomo’s campaigns[1].

“The corporation with the largest number of charter schools under the control of the SUNY Charter School Institute is the Success Academy charter chain, run by Eva Moskowitz. Her political action committee, the Great Public Schools PAC, contributed $65,000 to Cuomo in 2011-2012 and another $50,000 to date in 2017. Success Academy Chairman Daniel Loeb, founder and chief executive of Third Rock Capital, and his wife, have directly contributed over $133,000 to Cuomo. Since 2015, Loeb has added $300,000 to Moskowitz’s PAC, and another $270,000 to other PACs that support Cuomo. That’s more than $700,000.

“Other Success Academy present or former board member families who contributed over $100,000 either directly to, or to PACS, supporting Cuomo include: Andrew and Dana Stone ($280,000), Bruce Kovner ($130,000); Joel and Julia Greenblatt ($280,000), John and Regina Scully of California ($110,000), John Petry ($130,000) and Daniel Nir and his wife Jill Braufman ($152,500). An additional nine other Success Academy Board members, including three who live outside New York state, collectively contributed hundreds of thousands directly or indirectly to Cuomo. Most of the contributions are direct donations.

“The Success Board is only one example of many. Paul Tudor Jones is the founder of Excellence Boys Charter School of Bedford Stuyvesant, which is also authorized by the SUNY Charter Board. He and his wife, who both live in Connecticut, contributed $400,000, with most of the contributions going into PACs that gave to the governor. Even the charter-loving Waltons, who don’t live in New York, have jumped in — nearly $100,000 in direct contributions to Cuomo and over $100,000 into PACs. And it doesn’t end there. Charter board members from the Harlem Children’s Zone to Hebrew Academy Charter Schools contribute large sums of money to Cuomo.”

That kind of money buys a lot of friendship.

We will see if it is enough to establish a special route for charter school teachers: one with lower standards.