Archives for category: Education Industry

Throughout this presidential campaign, we have been treated (or subjected) to statements by both Democratic candidates Clinton and Sanders about charters: They don’t like “private charters” (Sanders) or “for-profit charters” (Clinton).

There are no “private charters.” All charters receive public funding. That’s what makes them so attractive to investors. That secure stream of government funding.

At the very least, we can be glad that Clinton is opposed to the for-profits, which rip off taxpayers and divert public funding to their stockholders and owners. Let’s hope that means she is prepared to cut off federal funding that goes to the scam artists of the charter world. No more 3-card Monte with public dollars.

But is there a difference between “for-profit charters” and “non-profit charters”?

Peter Greene says it is a distinction without a difference.

He writes:


In this scenario, I set up my non-profit school– and then I hire a profitable management company to run the school for me. The examples of this dodge are nearly endless, but let’s consider a classic. There’s the White hat management company that was being dragged into court way back in 2011. This particular type of arrangement was known as a “sweeps contract,’ in which the school turns over close to all of its public tax dollars and the company operates the school with that money– and keeps whatever they don’t spend. The White Hat story is particularly impressive, because the court decided that White Hat got to keep all of the materials and resources that it bought with the public tax dollars.

Or consider North Carolina businessman Baker Mitchell, who set up some non-profit charter schools and promptly had them buy and lease everything– from desks to computers to teacher training to the buildings and the land– from companies belonging to Baker Mitchell. From Marian Wang’s 2014 profile:

To Mitchell, his schools are simply an example of the triumph of the free market. “People here think it’s unholy if you make a profit” from schools, he said in July, while attending a country-club luncheon to celebrate the legacy of free-market sage Milton Friedman.

Real estate grabs

All charter schools– even the non-profits– can get into the real estate business as a tasty sideline for providing a school-like product. Charter producers can find money to fund a building and then– voila– they own a tasty piece of real estate. Remember– thanks to some Clinton-era tax breaks, an investor in a charter school can double the original investment in just seven years!

In fact, there are real estate companies in the charter school business. And this can be a particularly terrible deal for the taxpayers. Bruce Baker lays out here how the public can pay for the same building twice– and end up not owning it. Read the whole thing– it’s absolutely astonishing.

Write a big fat check

If you have the giant cojones for it, you can just write yourself a big fat check with all those public taxpayer dollars. To use one of everyone’s favorite data points– Carmen farina is paid $200,000 to oversee 135,000 employees and 1.1 million students. Eva Moskowitz’s Success Academy chain handles 9,000 students, for which Moskowitz is paid almost half a million dollars. And while Moskowitz gets plenty of attention, she is by no means unique….

And that’s just the profit issue

This is before we talk about every anti-democratic, school-destroying, segregation-spreading, education-failing, community-disrupting, and achievement-gap-increasing aspect of charter schools. As readers of this blog know, while charters can (and once were) a good thing, the modern charter movement has turned them into one of the most destructive forces in education today.

But we’re going to maintain focus

We’re going to stick to one point, and the point is this– to pretend that there is a substantive difference between profit and non-profit charter schools is either willfully ignorant or deliberately misleading. I’ve said it many times– a modern non-profit charter school is just a for-profit school with a good money-laundering plan.

This alarming article describes the destruction of the Highland Park, Michigan, school district.

Once a thriving community, Highland Park suffered as the automobile industry declined. Its schools declined as the community became poorer and blacker.

The Highland Park district is more than 90% black. That makes it just right for a state takeover because it does not have political power. So, get ready for the “civil rights movement of our time” to step in, take charge of the schools, and kill off the district.

Governor Rick Snyder thought he knew how to fix the ills of Highland Park: He appointed an emergency manager to set its financial house in order in 2012. The emergency manager was an accountant. He also had spent some time working for White Hat, the for-profit charter company in Ohio, which has perfected the extraction of funds from public money for private gain.

The first emergency manager was gone in a few months, and a new one was installed.

Instability and churn were the watchwords of the districts that Governor Synder took over.

In all, the Highland Park School District has had five emergency managers at the helm over the 4 1/2 years it has been under state control.

Still, Highland Park’s public school system continued to disintegrate, finally reaching the point today where it barely exists at all.

For anyone seeking a measuring stick to assess the job done by the district’s emergency managers and the for-profit charter school company hired to run Highland Park schools, the most telling statistic may be this:

At the time of the takeover, the district had 969 students. Today, that number, according to the state’s school data web site, is 311 — a drop of nearly 70 percent. Moreover, all of the students attend the district’s last remaining school, which serves both elementary and middle school students.

The state takeover was complicated:

Operating under a paradigm similar to the new system created for Detroit Public Schools, there are two public school districts operating side-by-side in Highland Park.

One is the “old” district, known as the School District of the City of Highland Park.

That district is overseen by an elected school board that has virtually no power and nothing to do with governing the education provided to the city’s children.

The “old” district exists only to pay accumulated debt.

Just how much is owed?

School board members have been asking for that number. But, according to the state of Michigan, no one — including the emergency manager put in place by Snyder to ensure the debt gets paid off — can say exactly what it really is, because legally required financial audits haven’t been filed for the past two years.

A second, “new” district was created in 2012 by Joyce Parker, the second of five EMs appointed by Snyder to control education in Highland Park. This new district, unencumbered by the debt being paid off by the “old” district, was supposed to flourish because all per-pupil state funding was, ostensibly, able to go toward education and not toward satisfying the demands of bondholders.

However, in 2014, Michigan Radio reported that the new district was already facing a deficit of about $600,000, a shortfall attributed in large part to a continued decline in enrollment.

This new district — known as the Highland Park Public School Academy System — is operated by The Leona Group, a private, for-profit charter school management company with a checkered past.

The entire district was handed over to a for-profit charter chain. No more public education. Families are fleeing. Soon there won’t be a district.

Michigan has perfected a formula for destroying an entire school district.

The Charlotte Observer in North Carolina reports that Chinese investors put up $3 million to start up a new charter school, which is now struggling for survival.

Is a foreign-financed charter school a public school?

They did it in exchange for green cards,

Chinese investors provided $3 million in startup money for Thunderbird Preparatory Academy, a Cornelius charter school that’s fighting for survival.

That’s one of the insights that emerged from last week’s state review of the school’s finances, governance and facilities.

Thunderbird’s network of investors and lenders left Charter School Advisory Board members shaking their heads and palming their faces. “A spider web,” one member dubbed it. “Exceedingly messy and complex,” said board Chair Alex Quigley.

But as North Carolina has opened itself to rapid charter school expansion, a growing number of startup schools are turning to charter-school finance companies to pay for facilities. Some also tap a network of companies and consultants to help them run the schools. That means tax money from North Carolina is flowing across the country and around the globe to repay debts and cover outsourced services.

Lee Teague, executive director of the N.C. Charter Schools Association, said he had never heard of the Chinese investment in charter schools. But because charter schools don’t get public money for facilities – and because schools must begin paying bills before the first state check arrives – it’s common to see new schools taking out loans, he said.

Thunderbird, which opened in 2014, got its $3 million through the EB-5 program, which provides green cards to foreign investors who create U.S. jobs. Although charter school salaries are paid with public money, an Arizona-based company called Education Fund of America offers the opportunity to invest in charter schools, claim the job-creation visa benefit and rely on government support of such schools to secure the investment.

Parents at the Thunderbird Charter School are angry, and they have called for the removal of the principal and the chair of the charter board. The school opened in 2014 and has struggled with staff, rodents, finances, and academics.


After probing topics ranging from rodent infestation to high-interest loans, a state charter panel Thursday backed away from a call to close Thunderbird Preparatory Academy in Cornelius.

But the Charter School Advisory Board voted unanimously to demand intense scrutiny in the coming year.

“I think you have a very short period of time to right this ship,” board Chairman Alex Quigley told school leaders.

The advisory board called Thursday’s special meeting after voting June 14 to recommend closing the school when Thunderbird leaders missed a regular meeting where they had been summoned to discuss financial, academic and health/safety concerns.

Thunderbird board Chair Peter Mojica said Thursday that bad publicity has damaged recruitment for the coming year, with enrollment dropping from 500 at the start of last year to 432 enrolled for 2016-17. The school has also lost 11 of the 23 teachers it had last year.

But Mojica said the board and the school’s recently hired principal are committed to fixing problems and reviving the school.

“We have a great school that is not absent of its problems,” he said. “We are well aware of them and are trying to address them.”

Thunderbird, which opened in 2014, has struggled to find and pay for a building, establish leadership and show academic gains – challenges that face many new charter schools. The problems have been compounded by spring flooding and a bitter rift dividing board members, faculty and families.

The school has had three principals in three years. Some parents vow to return to the public schools. Others say they are satisfied. The state has gotten more complaints about this charter than any other.

The Chinese investors have their green cards, so they are not complaining.

Read more here: http://www.charlotteobserver.com/news/local/education/article87268177.html#storylink=cpy

This petition was started by a Florida BAT.

Maybe Hillary will meet with me if enough people sign.

Diane

No state is more in need of advocates for children and public schools in its legislature than Florida.

The Florida legislature at present is in the pockets or the hands (or both) of the privatization lobby. It enacts bill after bill to outsource its schools to private companies, many operating for profit. It pours millions into failing charter schools and failing voucher schools. It authorizes crooked operators and funds charters that never open. It enacts legislation that demoralizes and harms its teachers. Hurting teachers hurts children.

It is time for a change.

That is why the NPE Action Fund proudly endorses Rick Roach, a champion for public schools, who is running for a seat in the Florida State Senate.

If you live in District 13, please help Rick get elected. If you don’t, consider sending him a contribution.

Rick is the school board member in Orange County who took the state standardized test and wrote about it.

“I won’t beat around the bush. The math section had 60 questions. I knew the answers to none of them, but managed to guess ten out of the 60 correctly. On the reading test, I got 62% . In our system, that’s a ‘D,’ and would get me a mandatory assignment to a double block of reading instruction.

“It seems to me something is seriously wrong. I have a bachelor of science degree, two masters degrees, and 15 credit hours toward a doctorate. I help oversee an organization with 22,000 employees and a $3 billion operations and capital budget, and am able to make sense of complex data related to those responsibilities….

“It might be argued that I’ve been out of school too long, that if I’d actually been in the 10th grade prior to taking the test, the material would have been fresh. But doesn’t that miss the point? A test that can determine a student’s future life chances should surely relate in some practical way to the requirements of life. I can’t see how that could possibly be true of the test I took.”

Politico reports that Hillary Clinton was booed when she spoke of cooperation between public schools and “public charter schools.”

I don’t think she has any idea of the depth of antagonism towards charter schools among teachers.

Maybe she doesn’t know that 90% of charters are non-union.

Maybe she doesn’t know that the far-right Walton Family Foundation (which hates unions) funded one of every four charters in the nation and has pledged to spend at least $200 million annually to create more non-union schools.

Maybe she doesn’t know that ALEC (which hates unions and public schools) is a huge supporter of charter schools.

Maybe she doesn’t know that the same “vast rightwing conspiracy” that hates her loves charter schools.

Maybe she doesn’t know that every Republican governor, as well as Donald Trump, is enthusiastic about charter schools.

Maybe she doesn’t know that charter schools have become the favorite ploy of those who want to privatize and monetize public education.

I have been trying to arrange a meeting with her, face to face, but so far have had no success.

I will keep trying.

I would really like to explain to her what is happening, how it threatens the future of public education, and how far it is from the original idea of charter schools.

The Chicago Sun-Times reports that Chicago is experiencing an exodus of experienced principals.

Forty-two Chicago Public Schools principals resigned this year, the most since Mayor Rahm Emanuel took office.

And 23 principals, out of about 515 total, decided to retire, a number somewhat higher than the last several years. The 65 school leaders departing this past school year saw more budget cuts, including unprecedented cuts midyear. Since 2011, the next highest number was 37 resignations in 2014. In 2012, only 13 departed, but 96 retired that year.

Mayor Emanuel has made his contempt for public schools clear, as well as his preference for privately managed, non-union charter schools.

CPS’ chief education officer Janice Jackson acknowledged the financial pressures, saying, “Our principals and teachers are leaving for jobs where their district doesn’t have to take hundreds of millions of dollars out of the classroom to fund their pensions.”

Ousted CPS principal Troy LaRaviere, who recently took office as head of the Chicago Principals and Administrators Association, said the pressure has been building for years.

“It’s the cumulative effects of being consistently under the weight of a district that finds one way after another to undermine the efforts [principals] put forth on behalf of their students,” he said. “Our ability to do our job depends on resources, and they take more of them away every year impairing our ability to do our job more and more.”

Until Thursday, when a temporary state budget was finally approved, principals were bracing themselves for cuts to their school budget of 26 percent on average. That was on top of cuts earlier in the school year to special education and warnings to stockpile cash so CPS could afford $676 million toward teacher pensions. They still don’t have budgets for September — and won’t for at least another week.

In recent years, the district privatized school cleaning, taking away principals’ power to manage janitors in their buildings. CPS shuttered a record 50 neighborhood schools. Budgets were cut sharply the same summer that former CEO Barbara Byrd-Bennett pushed a $20 million no-bid contract for principal training that participants immediately denounced as shoddy.

Mayor Emanuel is effectively driving the public schools and their personnel into the ground. He is a poor steward of public education. What public responsibility is greater than the education of the city’s children?

Edushyster interviewed Joanne Barkan, one of our most perceptive writers about the farce/hoax called “education reform.”

Barkan has written a series of important articles about the reformers, they of high stature, who want to run the nation’s public schools that they do not patronize. “Got Dough?” is a classic. She quickly understood that the billionaires don’t trust democracy. And that is a theme of her work on education.

In response to one of EduShyster’s questions, Barkan replies:

Some of the wealthiest people in the United States have had an easy go of it. They started with wealth, likely went to private schools, and have no sense of what public education is and why it’s necessary. And, of course, there are also those who started with nothing and made their own fortunes. It seems that by the time they’ve made a lot of money, they’ve lost touch with the role of public education. The vast majority of the super wealthy send their own kids to private schools, which they do for a variety of reasons, including prestige. What’s interesting to me is that there are some states that have written into their constitutions that the primary obligation of state government is public education. When those constitutions were being written in the late nineteenth and early twentieth centuries, government was much more limited. We have a situation today where so many states are under tremendous financial pressure, and the first place they go when they have to cut is public education, as if public education were somehow an extra, as opposed to being a fundamental responsibility.

EduShyster: I was smitten by the subtitle of your article: *Bill Gates, Washington State and the Nuisance of Democracy.* What is it about democracy that plutocrats find so irksome?

Barkan: The plutocrats—people like Bill and Melinda Gates, Michael Bloomberg, John Arnold, or Eli Broad—have very set ideas about what they want to do. It doesn’t matter to them, or perhaps they just don’t understand, that their ideas may not be based on sound research or principles. They know what they want, and they come out of professional experiences where they’ve had complete authority. When they get to public education, they expect to be in control and to make things happen as quickly as if they were still running their companies. But as everyone should know, democracy is slow, and it’s messy, and that turns out to be a great nuisance for plutocrats.

The rest of the interview is fascinating and enlightening.

T.C. Weber, a public school dad in Nashville, attended the annual convention of the National Alliance for Public Charter Schools, which was held in his hometown, and describes the tone he heard and the people he met.

The leaders, the ones who gave keynote speeches, were militantly insistent on the expansion of charter schools and militantly determined to portray public schools as failures. They think they are fighting a “civil rights” battle against bastions of injustice (public schools) and that they are akin to the freedom fighters in Iran. No talk of collaboration, of being in common cause with those who work in public schools.

The people he met, the teachers and principals, not so much. Many of those he met were doing good work, not at war with public schools.

The movement, however, is implacable and determined to destroy public schools.

Worst of all, they credit their greatest successes to Presidents George W. Bush and Barack Obama.

Carol Burris, executive director of the Network for Public Education and retired New York State high school principal, reviews Samuel Abrams’ Education and the Commercial Mindset. To sum up, she loved it! It gives an important overview of today’s privatization movement, which attempts to make schools function like businesses.

Carol writes:

Kate Zernike of The New York Times recently wrote a scathing report of what school choice has done to the city of Detroit. The report, which appeared on June 28, tells the story of how an already strained public school system was further beaten down due to the influx of for-profit charter chains eager to grab a share of the market at any cost. Although the promise of choice was to improve all schools through competition, the outcome for Detroit has been a total collapse.

There is no better book to help explain the reasons why such a collapse would occur than Education and the Corporate Mindset, recently published by Harvard University Press. Author Samuel Abrams does a remarkable job tracing choice and market-based school reforms from their early beginnings in the for-profit Edison Schools, to the contemporary choice systems today.

Abrams, a former high school teacher of history and economics and the present Director of the National Center for the Study of Privatization in Education at Teachers College, Columbia University, is exactly the right author to help the public understand why market-place reforms are doomed to fail when imposed upon schools. His thoughtful, scholarly arguments are easy to understand. Sam Abrams makes the complicated clear.

The book begins with a history of Chris Whittle’s for-profit Edison Project that sought to impose the rigors of business on what Whittle perceived to be a poorly run and inefficient education system. The beginning chapters take the reader from Edison’s philosophical beginnings, through its marketing and implementation, its transformation from Edison Schools to Edison Learning, and to its eventual demise. Although Edison may be gone, its story is still important. Despite its failure, its influence continues because both ideas and players moved from Edison to the present charter school and online learning world. And of course Edison was the door through which Wall Street first walked to enter the business of school reform.

After telling the Edison story, Abrams pulls from his background in economic theory to explain why market-place reforms like Edison do not work in schools. Because students are both an “input” as well as a customer in the “production function” of schools, the rules of the marketplace are a bad fit. He also argues that good schooling must serve the needs of both the individual and the collective, and to meet the needs of both, shared investments and sacrifices are needed—an ethos not aligned with commercial interests.

Chapter 9 focuses on the emergence of the Charter Management Organization (CMO) as the replacement for the for-profit model. The profit motive may have disappeared (although as Abrams points out, some of the charter leaders receive compensation similar to business CEOs), however, the corporate language, marketing and management styles are very much a part of the CMO model. This is not surprising given that key Edison people—Scott Hamilton, Donald Fisher, John Fisher and Richard Barth moved from Edison to KIPP.

Abrams’ critical analysis of KIPPs’ scores, as well as the advantages that result from a more selective student body and philanthropic support, are well worth the read. In Chapter 10, Abrams frankly discusses the problems that CMOs face–teacher burnout, attrition, student exodus and the exacting code of discipline in the “no excuses” schools that drives both students and teachers out the door.

His most powerful arguments against market-based reforms, however, are left for the end. In Chapters 11 and 12, Abrams contrasts the school reform visions of two Nordic nations —Sweden and Finland. The first followed the course of choice and vouchers. The second followed equity-based public reforms.

In the late 1990s, Abrams explains how Sweden embarked on a course of privatization as the driver of school reform. The country embraced choice, corporate reforms, vouchers and privatization. Former Florida governor Jeb Bush and current Louisiana state education Superintendent John White were, not surprisingly, fans of the Swedish model of reform. Rupert Murdoch and Joel Klein, the former chancellor of New York City schools, visited to see how Swedish schools put self-paced curricula on computer tablets with minimal instruction provided to students by teachers.

Over a decade of Swedish market-based reforms, however, proved to be a flop. In 2011 the model came under fire. Abrams describes scandals and bankruptcies, grade inflation due to school marketing, higher costs, increased segregation, and patterns of clear advantage for the children of savvy parents. The municipal schools were left to educate the neediest children—an unequal system had gotten much worse. The country went into “PISA shock” when Sweden was the only nation in the Organization for Economic Cooperation and Development to see its scores decline every time on that international test since PISA began in 2000.

Finland, in contrast, chose equity reforms and a very different course. The Finns rejected privatization and chose smaller class sizes, higher teacher pay, no curriculum tracking until Grade 10, schools as a community centerpiece, free hot lunch for all students, strong university-based teacher preparation programs, the elimination of “school inspections” and the limiting of testing to “micro-samples” across all areas of curriculum including music and the arts. Finnish students consistently earn top or near top scores on PISA in reading, math and science. They outscore their Nordic neighbors, including Sweden, even though they have demographically similar populations.

When speaking with teachers and parents, I often find them bewildered by the rapid pace of school privatization coded as “school reform”. The allure of “choice” has brought false promise, along with a host of unintended negative consequences for their neighborhood schools. And yet, despite the evidence, the commercial mindset of choice and market practices continues to drive school change. If not stopped, the democratically governed school, anchored in a neighborhood in which parents and community have voice, will be a relic of the past. One only has to look to Sweden or Detroit to see the corruption, problems and failure that will result when the commercial mindset is in charge.

Education and the Commercial Mindset deserves to be at the top of your summer reading list. It connects the dots and sheds much needed light on the origins of corporate reforms. It makes a sound, research-based argument for why the commercial mindset has no place as a driver of change in our schools.