Archives for category: Equity

Harold Meyerson writes here about Jennifer Abruzzo’s request to the National Labor Relations Board to ban “captive audience” meetings, in which employers lecture their employees about the dangers of joining a union. Abruzzo is the recently appointed general counsel of the agency, where she has worked for many years. She is in a hurry to restore the original purpose of the NLRB, which was to create a level field for employers and employees.

Meyerson writes in The American Prospect:

By now, it’s clear that Jennifer Abruzzo, the general counsel at the National Labor Relations Board, is both an originalist and an adherent to the belief that the National Labor Relations Act is a law whose interpretations must have some relation to current realities.

One of those realities is that a succession of Board and court rulings over many decades has eroded the act itself, and with it, the very worker rights the act was written to ensure. One of those erosions is the “captive audience” meeting, which employees are compelled to attend, at which their managers subject them to arguments against their going union. The very fact that attendance is compulsory underscores the imbalance of power between boss and worker, such that the meetings constitute an implicit—and sometimes explicit—threat to the workers. The authors of the NLRA meant to give workers the right to freely choose whether to unionize. Compelling workers to attend these meetings (and forbidding union advocates from holding even voluntary meetings at the worksite), Abruzzo argues, erodes that right of free choice.

In a memo she sent to NLRB staff today, Abruzzo announced she would ask the Board to ban such captive audience meetings for violating both the letter and spirit of the NLRA. The act, she wrote, “protects employees’ right to listen as well as their right to refrain from listening to employer speech concerning the exercise of their Section 7 rights”—that is, their rights to freely choose whether or not to unionize and to have a voice on the job. “Forcing employees to listen to such employer speech under threat of discipline—directly leveraging the employees’ dependence on their jobs—plainly chills employees’ protected right to refrain from listening to this speech,” she asserted.

Today’s memo is of a piece with Abruzzo’s previous memos, all of which seek to restore the NLRA to what its authors intended: an act enabling workers to freely choose whether to organize and, if they do so choose, to bargain collectively. As I’ve reported in my profile of Abruzzo, which appears in our April print issue, she has emerged as the most potent champion of worker rights that the government has seen in a great many years, and as such, by happy coincidence, as the most potent ally of the generation of workers we’ve seen unionizing on campuses, at Starbucks, and now, at an Amazon warehouse.

Abruzzo writes lots of these potentially very impactful memos. I’ll try to keep you posted on them as she turns them out.

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

The letter was signed by 96 organizations.

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

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

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

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

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

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

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

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

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

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

Recommendations:

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

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

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

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

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

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

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

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

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

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

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

L

Proposed Selection Criterion for CMO Grants

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

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

Recommendations:

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

Our Co-Signers

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

The American Federation of Teachers released the following statement about the U.S. Department of Education’s proposals to reform the federal Charter Schools Program, which grants $440 million annually to open or expand charter schools. Authorized in 1994, when there were a small number of charter schools, the CSP has never been reformed in its nearly three decade history. The industry captured the program and glossed over widespread waste, fraud, and abuse in federally-funded charter schools.

The AFT wrote:

For Immediate Release
Wednesday, April 20

Contact:
Andrew Crook
607/280-6603
acrook@aft.org
AFT Responds to Department of Education on Charter School Regulations

WASHINGTON—American Federation of Teachers President Randi Weingarten sent the following letter to the U.S. Department of Education responding to proposed regulations on Charter Schools Program grants.

The text of the letter follows, and it can be read online with additional footnoting and formatting here.

~April 11, 2022

Ms. Porscheoy Brice

U.S. Department of Education

400 Maryland Avenue SW

Washington, DC 20202-5970

Dear Ms. Brice,

The American Federation of Teachers welcomes the opportunity to comment on the U.S. Department of Education’s proposed regulations to the Charter Schools Program grant programs. These proposed regulations represent a positive development for America’s children, and if fully implemented, these improvements to the Charter Schools Program grant applications will not only advance equity, but also move to restore charter schools to their original purpose by integrating them into the broader education community.

We applaud the department’s proposed regulations, which seek to improve community integration of charter schools. We also applaud the department for taking steps to prevent for-profit charter schools—which studies have shown underperform, compared with both public schools and their nonprofit counterparts—from receiving charter school grants. These steps will undoubtedly improve educational outcomes for children in both charter and traditional public schools. As a union of 1.7 million educators, healthcare workers and public service workers, including educators at more than 250 charter schools, we appreciate that the department is seeking to increase collaboration between charters schools and traditional public schools

The AFT strongly supports the department’s collaboration priority:

We appreciate that the department is recognizing the need for collaboration between charter schools and district schools. Charter schools were originally intended to be vehicles for experimentation and collaboration, not walled gardens within our education system, and these proposed regulations reflect that the charter industry has strayed from that original intent. As a union of education professionals, we have concerns over the pervasiveness of noncompete and nondisclosure agreement practices in charter schools and the chilling effect that such agreements are already having on charter-district collaboration. 

We recommend that the Charter Schools Program grant applications be modified to have applicants certify that they will void all such noncompete/nondisclosure provisions, if they exist, during the life of the grant.

Noncompete clauses, which prevent charter teachers from taking jobs in traditional public schools for a set period of time (or within a geographic region proximate to the charter school), are obvious barriers to the department’s proposed priority of fostering district-charter collaboration. For example, according to Donald Cohen and Allen Mikaelian’s recently released book The Privatization of Everything, Summit Academy Schools of Ohio sued 50 teachers in three years for violating noncompete clauses.

There have been repeated suggestions that, beyond chilling collaboration, nondisclosure agreements prevented charter school teachers from blowing the whistle on fraud and malfeasance occurring at their schools.

We would ask that, in support of this priority, the CSP grant application be modified to include a certification by applicants that they either 1) do not utilize nondisclosure agreements and/or noncompete agreements at their schools, or 2) will void all such agreements for the life of the grant.

Collaboration between district schools and charter schools would be enhanced by putting district schools and charters on the same footing with respect to enrollment requirements:

Practices at certain charter schools have the effect of filtering out some subpopulations of students, leading to the concentration of higher-needs students in district schools. This behavior includes the counseling out of special education students; the use of entrance barriers that disincentivize enrollments of English language learners, low-income students and students with disabilities; and a reluctance to backfill when students leave the charter school. Charter schools that create enrollment barriers for ELLs, students with disabilities and low-income students are often already doing so in violation of federal law, but other disparate policies are not currently unlawful. The interests of district-charter collaboration would be furthered by asking applicants to disclose whether they engage in discriminatory enrollment practices.

Practices that exclude certain students from charter schools create divisions between district and charter teachers and administrators. In our experience, the prevalence of these practices varies significantly across the country and is unfortunately common in some states. The ACLU examined charter school enrollment barriers statewide in both Arizona and California, finding that more than 20 percent of California charter schools and 50 percent of surveyed Arizona charter schools utilized exclusionary enrollment practices.

These practices included denying applicants on the basis of prior academic performance, requiring application fees, capping special education enrollments, discouraging immigrant applicants and requiring parent volunteer hours.

While many exclusionary charter application practices amount to violations of the letter or spirit of the law (or both), charter schools are permitted under federal law to decline to backfill student vacancies created as a result of a student withdrawal or expulsion. When charter schools refuse to backfill vacancies, it both compounds existing student population disparities between district and charter schools and creates new ones. Student mobility is associated with lower student performance, so limiting midyear entrants gives charter schools an advantage that comes at the expense of the district schools that are required to accept all enrollments.

To preserve the department’s proposed priority of fostering district-charter collaboration, we suggest amending the proposed regulations to request that charter school applicants disclose information about their application, selection, turnover and backfilling practices. Specifically, applicants should certify that application materials are available in all languages spoken in the community; that they do not cap the number of students with a disability (or the type of students with a disability they accept); and that they do not charge a fee for applicants. If applicants currently operate charter schools, they should disclose annual student turnover figures for the past five years. The regulations should also be modified so that charter school applicants disclose whether they use admissions tests, consider past academic or behavioral issues during admissions, and backfill vacancies either midyear or between school years, and they should require applicants to disclose how they have recruited students from diverse populations across their catchment areas.

Unions can help facilitate a collaborative school atmosphere, and regulations should be modified to reward applicants who pledge to support their workers’ right to organize:

Collaboration between district school and charter school teachers would be easier if both groups were on the same professional footing. Unfortunately charter school teachers are often underpaid, and turnover in the industry is alarmingly high. Some charter schools operate with teaching staffs that are largely uncredentialed. Many operators in the charter school industry seem to have abandoned any attempt at employee retention, choosing instead to focus on building recruitment “pipelines” to solve the rapid turnover of their teaching force. The department’s laudable goal of fostering collaboration between district and charter schools will be difficult in high-turnover conditions and where significant disparities exist between district school and charter school staff.

We have seen, however, how beneficial it can be when charter and district teachers belong to the same union. In Chicago, several charter schools in the city are organized with the Chicago Teachers Union, with charter and district teachers belonging to the same union. The Chicago Teachers Union QUEST Center brings together both charter and district teachers for professional development courses. Unions can be the space where collaboration across district schools and charter schools can occur—but when charter teachers want to organize a union, their school management often stands in the way. In furtherance of the department’s stated goal of district-charter collaboration, as envisioned within these proposed regulations, we submit that the proposed regulations should be modified to reward schools that pledge not to interfere with teachers who wish to exercise their rights to organize and bargain collectively.

The AFT respectfully requests that language be inserted into the grant application to allow applicants to make a good-faith certification that they will remain neutral in any union organizing effort for the term of the grant award.

We applaud the department on the introduction of a community impact analysis and recommend a few minor improvements:

The AFT supports provisions that would have applicants analyze the impact of charter expansion on the schools that the applicant is, or would be, drawing students from. The focus on preventing charter school expansion from undermining district desegregation efforts is a welcome metric, and we are pleased to see it included in the impact analysis. We would suggest that the regulations be expanded to include an analysis on the fiscal impact of proposed charter growth.

Charter school growth is universally understood to negatively affect the financial condition of the sending districts. Credit ratings agencies and academia have reached a consensus on this point. The ratings agency Moody’s has opined that charter school growth can drag down the finances of their host districts, writing that “charter schools can pull students and revenues away from districts faster than the districts can reduce their costs.” Districts, being unable to reduce costs as quickly as they lose funding for charter schools, are left with diminished resources for students in their public schools. That finding has been bolstered by academic research, which has endeavored to estimate the net fiscal impact of charter school growth on district finances.

While charter school proponents have suggested that charter competition will improve district resources, academic and credit rating agency opinion has coalesced around the opposite conclusion.

Moody’s has said that “A city that begins to lose students to a charter school can be forced to weaken educational programs because funding is tighter, which then begins to encourage more students to leave which then results in additional losses.’’ University of Michigan researcher David Arsen has conducted research in Michigan that supports this conclusion, noting that “contrary to expectations, Michigan school districts respond to charter competition by devoting a smaller share of their spending to instructional services.”6 Faced with decreased revenues, which “decline more rapidly than costs in districts losing students to charter schools,” school districts are simply unable to free up the resources needed to improve education for the students remaining in traditional public schools.

For far too long, the Charter Schools Programs grant programs have ignored the economic reality of charter school growth and its impact on the resources available to traditional public school students. When charter schools expand, traditional public school students are left with fewer resources. We urge the department to amend its community impact analysis guidelines to ask applicants whether a credit rating agency has identified charter school growth as a credit negative for the sending district(s) from which the proposed (or current) school intends to draw its students.

We appreciate the proposed regulations’ increased attention to the problems of the for-profit charter school industry: The proposed regulations’ focus on tightening disclosure regulations around education management organization contracts is well-warranted and consistent with ensuring that CSP funds are allocated to high-performing charter schools. The for-profit charter school industry is disgraceful, and charter operators should not be able to evade the eligibility requirements of the Charter Schools Program by utilizing complex organizational structures and service contracts.

Research shows that for-profit virtual charter schools—which comprise a significant portion of all for-profit schools—are poorly serving America’s students. Additionally, a recent National Education Policy Center study found that for-profit virtual charter schools underperform compared with their nonprofit and publicly run counterparts, suggesting that profit-seeking itself undermines educational success.

We appreciate the department’s proposed regulations:

We thank the Department of Education for these proposed regulations, which will significantly improve outcomes for students in both charter and traditional public schools. While this comment contains some minor suggestions we feel would make these proposed regulations more robust, the substance and spirit of the proposed regulations are a welcome indication that the department is serious about unifying a fractured education system and improving educational outcomes for all children, regardless of the type of public school they attend.

Sincerely,

Randi Weingarten

President, American Federation of Teachers

 ######


The American Federation of Teachers is a union of 1.7 million professionals that champions fairness; democracy; economic opportunity; and high-quality public education, healthcare and public services for our students, their families and our communities. We are committed to advancing these principles through community engagement, organizing, collective bargaining and political activism, and especially through the work our members do.

Randi Weingarten Fedrick C. Ingram Evelyn DeJesus
PRESIDENT SECRETARY-TREASURER EXECUTIVE VICE PRESIDENT

American Federation of Teachers, AFL-CIO
Communications Department • 555 New Jersey Ave. N.W. • Washington, DC 20001 • T: 202-879-4458 • F: 202-879-4580 •  www.aft.org

Have you lost faith in our elected officials? Let me introduce you to my personal hero. Rosa DeLauro. I have met with her several times, and she was always attentive and thoughtful. I love her values, and I love her too. It’s a very small tribute to this great woman, but I take this opportunity to add her to the blog’s honor roll for standing up forcefully to the bullying of the charter lobby.

Congresswoman Rosa DeLauro is one of the most powerful members of Congress. She is a Democrat from Connecticut. She is an outstanding liberal who fights for children and working people.

Please read her bio.

Rosa DeLauro is the Congresswoman from Connecticut’s Third Congressional District, which stretches from the Long Island Sound and New Haven, to the Naugatuck Valley and Waterbury. Rosa serves as the Chair of the House Appropriations Committee and sits on the Democratic Steering and Policy Committee, and she is the Chair of the Labor, Health and Human Services, and Education Appropriations Subcommittee, where she oversees our nation’s investments in education, health, and employment.

At the core of Rosa’s work is her fight for America’s working families. Rosa believes that we must raise the nation’s minimum wage, give all employees access to paid sick days, allow employees to take paid family and medical leave, and ensure equal pay for equal work. Every day, Rosa fights for legislation that would give all working families an opportunity to succeed.

Rosa believes that our first priority must be to strengthen the economy and create good middle class jobs. She supports tax cuts for working and middle class families, fought to expand the Child Tax Credit to provide tax relief to millions of families, and introduced the Young Child Tax Credit to give families with young children an economic lift.

Rosa has also fought to stop trade agreements that lower wages and ships jobs overseas, while also protecting the rights of employees and unions. She believes that we need to grow our economy by making smart innovative investments in our infrastructure, which is why she introduced legislation to create a National Infrastructure bank.

Rosa is a leader in fighting to improve and expand federal support for child nutrition and for modernizing our food safety system. She believes that the U.S. should have one agency assigned the responsibility for food safety, rather than the 15 different agencies that lay claim to different parts of our food system. Rosa fights against special interests, like tobacco and e-cigarettes, which seek to skirt our public health and safety rules.

As the Chair dealing with appropriations for Labor, Health, Human Services, and Education, Rosa is determined to increase support for education and make college more affordable for more American students and their families. She is also fighting to protect the Affordable Care Act so that all Americans have access to affordable care. Rosa strongly believes in the power of biomedical research and she is working to increase funding so that we can make lifesaving breakthroughs in science and medicine.

Rosa believes that we have a moral obligation to our nation’s veterans and their families, and her concern for these heroes extends to both their physical and mental well-being. Rosa supports a transformation in how the Department of Veterans Affairs is funded, including advanced appropriations for health services, to ensure its fiscal soundness; and she successfully championed legislation to guarantee that troops deploying to combat theaters get the mental health screening they need both before and after deployment, as well as championed legislation that now provides assistance to today’s Post-9/11 veterans choosing to pursue on-the-job training and apprenticeship programs.

Rosa belongs to 62 House caucus groups and is the co-chair of the Baby Caucus, the Long Island Sound Caucus, and the Food Safety Caucus.

Soon after earning degrees from Marymount College and Columbia University, Rosa followed her parents’ footsteps into public service, serving as the first Executive Director of EMILY’s List, a national organization dedicated to increasing the number of women in elected office; Executive Director of Countdown ’87, the national campaign that successfully stopped U.S. military aid to the Nicaraguan Contras; and as Chief of Staff to U.S. Senator Christopher Dodd. In 1990, Rosa was elected to the House of Representatives, and she has served as the Congresswoman from Connecticut’s Third Congressional District ever since.

Rosa is married to Stanley Greenberg. Their children—Anna, Kathryn, and Jonathan Greenberg—all are grown and pursuing careers. Rosa and Stan have six grandchildren, Rigby, Teo, Sadie, Jasper, Paola and Gus.

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Congresswoman Rosa DeLauro and I in 2018: My hero.

Today is the world-famous Boston Marathon. It is a good time to remember Kathrine Switzer.

Kathrine Switzer was the first woman to enter the Boston Marathon, in 1967. She applied to run by using her initials instead of her first name.

For the previous 70 years, the famous marathon was open to male athletes only.

She ran with her coach and her boyfriend alongside her. They were both students at Syracuse University.

When race officials realized there was a woman running, they tried to drag her out of the race and rip the numbers off her back.

Her boyfriend pushed the older men out of the way, so that Kathrine could continue.

She was asked by the press, “Are you a suffragette? Are you a crusader?”

She said, “No, I am just trying to run.”

Employees at two Starbucks in Massachusetts have voted to join a union. There are 9,000 or so Starbucks. More of them in the state and other states are considering unionizing. Is a revival of unions in the private sector beginning?

Baristas at the two locations first petitioned to unionize in December, inspired by similar action at cafes in Buffalo, New York. A total of 15 Massachusetts Starbucks — and nearly 200 across 29 states — have since taken steps to form a union.

Employees at two Boston-area Starbucks cafes voted unanimously to formally unionize Monday afternoon — a first for the coffee giant in Massachusetts.

This report comes from the Center for Educational Equity at Teachers College, Columbia University. The Leandro case ordered equitable funding for the state’s public schools, but the funding has not been delivered due to the Tea Party Republican control of the legislature (General Assembly). Republicans have chosen to focus on charters and vouchers, not equitable funding.

Seeking to end the long-pending Leandro/Hoke litigation, Superior Court Judge David Lee last June approved a comprehensive, 8-year plan that aims to ensure all students in the state the opportunity for a sound basic education guaranteed by the state constitution. When the legislature failed to approve the initial funding to support the plan, in November, the Judge ordered the state of North Carolina to transfer $1.7 billion from its reserves to fund the first phase of the plan. At the end of November, the North Carolina Court of Appeals overruled Judge Lee’s order, holding that although the lower court was correct in saying that the state must fund the plan, it is not within its power to order money be appropriated.

Late last month, North Carolina Supreme Court Chief Justice Paul Newby, a registered Republican, suddenly replaced Judge Lee, a registered Democrat, as the presiding trial court judge for the case, without any advance notice. Justice Newby then ordered special Superior Court Judge Michael Robinson, a registered republican, to take over the case. Judge Robinson is required to determine how much of the $1.7 billion that is necessary to fund a comprehensive remedial school improvement plan was included in the current state budget. Judge Robinson must present his findings to the state Supreme Court by April 20.

For the first time in 25 years, Pennsylvania officials imposed new regulations on charter schools. Charter advocates were not happy, nor were the Republicans who control the legislature.

Pennsylvania’s charter schools may be required to follow certain accounting and audit standards, comply with state ethics requirements, and post enrollment policies on their websites under new rules opposed by charter advocates and Republican lawmakers.

The rules, passed by the state’s Independent Regulatory Review Commission on Monday in a 3-2 vote, were proposed by Gov. Tom Wolf as part of a broader effort to overhaul how charters are regulated and funded — a perennially contentious issue in the education world. Charters, which educate 170,000 students across Pennsylvania, including one-third of all Philadelphia public school students, are paid by school districts based on enrollment….

Mastery Schools, Philadelphia’s largest charter network, said in written comments submitted to the commission that the regulations “threaten the very existence of the public charter schools that have been transformative to our children’s lives.”

The same regulations that public schools must follow are somehow a mortal threat to charters.

Leonard Pitts Jr., a columnist for the Miami Herald, opines that conservatives have always been on the wrong side of history. They fought the civil rights movement. They fought women’s rights. Now they’re fighting gay rights.

He writes:

They have never once been right.

Did you ever notice that? Do you ever think about it? Never once.

Oh, in matters of, say, foreign affairs or military strategy, one might contend that conservatives have had their moments, made arguments that, arguably, made sense. But on matters of social evolution, they’ve compiled a remarkable record: They’ve never been vindicated by history. Rather, they’ve always been repudiated by it, always been wrong…

Barry Goldwater once saying that he had nothing against a woman running for vice president, “just so she can cook and get home on time…”

Nor are the right’s wrongs limited to matters of human freedom. Every art form that ever dared deviate from status quo — music, film, books, comic books — has had to run a gauntlet of conservative opprobrium. As far back as the 1920s, they were up in arms over a new music called jazz.

It’s a history that provides a jaundiced context for the latest right wing crusade. Meaning the one against LGBTQ kids. Florida’s Legislature passed its obnoxious “Don’t Say Gay” bill last week. Gov. Ron DeSantis, evidently determined to leave no principle untrampled in his hoped-for march to the White House, is expected to sign it….

Which brings them into conflict with conservatism’s reflexive terror of anything that does not fit inside the white picket fence of its imagination. That tendency to look ever backward toward an imagined better past, that timorous inability to face the future — heck, to face the present — and the challenges of change, is what had conservatives at odds with everyone from Louis Armstrong to Martin Luther King to Gloria Steinem.

Now it has them standing between children and their teachers and doctors. It is cold comfort to know that these acts of invasive cruelty will one day stand condemned by history, but they will. We’ve seen this movie too many times to doubt it. You’d think that would matter to conservatives; you’d think they’d think about it. Then you remember that fear and thought are incompatible; it’s almost impossible for them to exist in the same space.

So LGBTQ kids and their allies can only put their heads down, work for change and take such satisfaction as they may find in the fact that, where social evolution is concerned, conservatives lost the 20th century.

Now they’re about to lose the 21st.

Sweden is debating the effects of its program for school privatization, which began under a conservative government in 1992.

The following article, translated from Swedish, was written by Lars Anell. Anell is an economist with a degree from the Stockholm School of Economics. He has worked at the Ministry of Finance and the Ministry of Foreign Affairs. He was head of the development agency SAREC 1980-83, and was on the Prime Minister’s Committee under Olof Palme. In the years 1994–2001, he was responsible for social issues at Volvo. He has also been chairman of FAS, the Research Council for Working Life and Social Sciences, as well as UN Ambassador and EU Ambassador. Lars Anell is currently Chairman of the Board of the Arena Group.”

The article has lessons for the U.S. First, the bold promises of privatization are seldom, if ever, realized. Second, once privatization takes root, its economic and political beneficiaries strongly defend it, regardless of the consequences for students and society.

Lars Anell writes:

The author of the book Barnexperimentet, Per Kornhall, wrote an article in Dagens Nyheter in 2012 under the heading The principle of a good school for everyone no longer applies in Sweden. He had then decided to leave the National Agency for Education but was formally still employed there – and realized that he had probably crossed the line of what an official should say in public. When he entered the coffee room on Monday morning, the employees raised a spontaneous applause. Those who worked with school issues knew that the activities no longer met the school law’s requirements for an equivalent school. But politically, nothing happened. There was no debate at all

There is a short narrative about how this came about. When joint-stock companies were allowed to run tax-financed schools in the early 1990s, they received compensation that corresponded to 85 percent of the municipal cost per student. An inquiry found this too generous and suggested a level of 75 percent. Instead, a Social Democratic government gave the school entrepreneurs more than what they could have dreamt of – 100 percent. This story is not entirely true. Many would probably say that it is misleading. On the other hand, it is obvious that no one thought about the consequences of allowing schools run for profit.

Stage 1

In September 1991, Ingvar Carlsson’s Social Democratic government commissioned the school director in Stockholm, Mr Sven-Åke Johansson, to investigate “certain issues concerning fees at independent schools.” At this time, there were no for-profit schools. The assignment essentially concerned Waldorf schools, Montessori-inspired and confessional schools that were largely financed by fees and parents’ voluntary efforts. In total, less than 1 percent of pupils with compulsory school attendance were in the schools affected.

The investigator emphasized that the basis for assessing student costs was shaky. Questionnaires were “incomplete and forms not properly filled in.” All schools concerned were dependent on extensive voluntary efforts, but “only a small number of schools in the survey have been able to assess this value.”

If you took the actual cost per pupil, it stayed at SEK 28,000 – 40 percent less than the municipal schools´ average cost. After trying to estimate the value of parents´ voluntary contributions, the investigator calculated that the student cost in independent schools was 13 percent lower.

An interesting aspect is that the investigator took a clear political position. The activities at the independent schools were characterized by a lack of money, low salaries and large non-profit efforts. “Now we notice,” writes the lone investigator, “a clear will to change these unfair conditions. The change is justified and positive. “

However, the investigator was bypassed by Carl Bildt´s right-of center government, which took office after the 1991 election. The new Minister of Education, Ms Beatrice Ask, proposed, in bill 1991/92:95, that municipalities should be allowed to reduce the compensation to private for-profit schools by 15 percent.

The investigator nevertheless completed his assignment and pointed out that the municipalities responsibility for the whole system justified a larger deduction. Most independent schools would fully cover their costs with a public subsidy of 75 – 85 percent of the municipal average cost. He also pointed out that the establishment of independent schools inevitably led to increased costs – especially for premises.

The central conclusion in this context is:

“The basic and statutory grant percentage for independent schools must be set so that competition between municipal and independent schools takes place on equal terms. According to my analysis, its lowest limit can then not exceed 75 percent of the municipality’s average cost per pupil.”

But this conclusion must be qualified. The investigator was tasked to design a system that would free non-profit schools from the obligation to charge fees to finance the activities. He also suggested that these schools should continue to be able to charge certain student fees.

Stage 2

The above-mentioned bill 1991/92:95 on Freedom of choice and independent schools is surprisingly short, which is due to the fact that there was no basis whatsoever to refer to. The ongoing inquiry is mentioned in passing but its report was not yet available. The dramatic change in the Swedish school system, unparalleled in the surrounding world, which this bill portended was not preceded by any preparation and was not met by any organized political opposition.

As said, one explanation is that there were no profit-driven schools yet – dreaming was allowed. And Swedish pupils still scored exceptionally well in international competition.

It is quite clear that Ms Ask, wanted to see more alternatives to the municipal school in order to increase the opportunity for students and parents to choose freely. This would also increase parental involvement and municipalities’ sensitivity to citizens’ wishes. Above all, there was a need for new ideas and pedagogical creativity. “It can be about parent cooperatives, focus on special subjects or schools in sparsely populated areas that can get a new chance under new leadership.” Ms Ask said that this would lead to “better incentives for cost-effectiveness” so that we get “a more efficient use of resources within the overall school system.”

She emphasizes commitments that independent schools can avoid (health care, school transport, home language teaching, especially resource-intensive students and the obligation to take care of students who have left an independent school) but still maintains that the student grant may not be reduced by more than 15 percent. But nowhere is it said that a municipality must adapt the grant to the independent school’s lower cost. It is worth adding that neither Mr Johansson’s 75 nor Ms Ask’s 85 percent are based on any reported analysis.

We must continue to keep in mind that this bill was presented when all independent schools were non-profit and still had the right to charge tuition fees. Ms Ask announces that she intends to return to the Riksdag in the matter. Bill 1991/92: 95 is therefore in many ways a signal of what is yet to come.

However, two sentences are worth remembering:

“My aim is to control the activities of independent schools as little as possible. At the same time, however, there are strong reasons to make it clear that, as they receive general grants similar to the public school system, they must not contribute to economic and social segregation “

The Bildt Government´s second bill on freedom of choice in schools (1992/93: 230) is a somewhat more comprehensive document that is based on an internal paper (Ds 1992: 115) and a public report on grants and student fees (SOU 1992: 38).

The paper dealt with opportunities to choose a school, financial conditions for independent upper secondary schools and opportunities to outsource all or part of an education to another principal. The proposal is that “municipalities and county councils may enter into agreements with a joint-stock company, a trading company, an economic association, a non-profit association or a foundation to perform some of the tasks for which the municipalities and county councils are responsible according to the Education Act.” However, the public responsibility for the school system may not be transferred. The municipality must have full control and a municipal employee must “perform some of the principal’s tasks that involve the exercise of authority, e.g. the issuance of grades. ” Swedish Employers´ Association and the Swedish Association of Local Authorities were in favor of outsourcing schools, but most other consultative bodies were negative. The National Audit Office pointed out that the memorandum did not contain any impact assessment or even a discussion of whether there was a need for contracting solutions.

In the above-mentioned public report, reference was made to the Riksdag decision that the minimum contribution to independent schools shall be 85 per cent of the municipality’s student costs. ” This means that “there is a risk that the independent schools will have more favorable conditions for running activities than the municipal schools.” To create equal conditions, the level should be 75 percent. Only a few of many institutions that provided comments (Nacka and Västerås municipalities and the National Association for Waldorf Pedagogy) wanted to keep a minimum contribution corresponding to 85 percent of the municipality’s own costs. Virtually everyone else wanted to reduce it to 75 percent – some municipalities (Haninge, Hudiksvall and Sundsvall) wanted to go even further. Several consultative bodies pointed to the risk that municipal schools will be disadvantaged.

The bill is interesting in several ways. The ideological attitude is that more independent schools is positive in all dimensions – above all, it leads to pedagogical renewal and increased freedom of choice – and problem-free for all concerned. Even increased bureaucracy is welcomed – “the municipal accounting systems have become more sophisticated when the municipalities have been forced to produce different types of costs and average costs for the school system.” The fact that parents and pupils will be forced “to make an active choice of school” is seen as progress. For some unknown reason it is asserted that competition between several principals is expected to give “the municipalities completely new opportunities to achieve coordination and synergy benefits.”

Against this background, it is interesting that the actual proposals are so timid. “I am not prepared to propose a general opportunity to outsource primary schools,” writes Ms Ask. However, it will be possible for the government to grant an application from a municipality to contract out a school to another principal.” As regards upper secondary schools, the area that will primarily be relevant is vocational training related to relevant companies. Education in economics, technology and aesthetic subjects may also be considered if the teaching has a “vocational character.” In other respects, special reasons are required for the government to approve an independent school.

Most surprising is that the principal and her duties cannot be relinquished. The municipality’s control is thus guaranteed by the requirement to appoint a head-master for independent schools. This means that the term grades are set by teachers, while the principal is responsible for the grade documents issued in the municipality’s name.

The consultative bodies’ solid support for lowering the minimum level for the student allowance to 75 per cent is rejected. But the only argument is that the decision of 85 percent was made less than a year ago.

This bill was written when the expansion of independent schools had begun. In just one year, the number of students had doubled. But there are no thoughts at all about what this development could lead to. The language is toned down. In the internal paper there was talk of joint-stock companies. The bill calls the contractors natural and legal persons and the word profit is never mentioned. But there was nothing that presaged the coming of a capitalist school market.

Stage 3

After the 1994 election, responsibility for the country’s education system again fell to a government led by Ingvar Carlsson. The first measure was to give municipalities the opportunity to reduce the student grant to independent schools by a maximum of 25 percent of their own average cost (Bill 1994/95: 157). The Minister of Education, Ms Ylva Johansson, bases this position entirely on the investigation Mr Johansson made three years earlier. Nothing is said about the risk that independent schools will still receive more than the full cost. The municipalities are not forced to stay at the minimum level.

One year later, in bill 1995/96: 200, the minimum level is replaced by the rule that a student in an independent school must receive a grant according to the same principles that apply to the municipality’s own schools based on the school’s commitment and students’ needs. This opens the way for a powerful overcompensation of independent schools.

The bill is based on two investigations. The report Equal education on equal terms is permeated, like all other documents from this time, by the notion that independent schools are a complement that enriches the municipal school system by increasing diversity and pedagogical creativity. Equal conditions for schools with different principals are seen as “a prerequisite for all parents and students to have freedom of choice and not just financially strong groups.”

The report emphasizes the teachers’ competence as a prerequisite for a school to be able to respond to the requirements of the School Act and the goals of the curriculum. No special admission principles should be applied, but the Education Act should not force an independent school to accept a student “if the reception would lead to significant organizational or financial problems.” The municipality’s contribution shall be based on “the school’s commitment and the students’ needs on the same grounds and according to the same principles” that apply to its own compulsory school. A municipality must be able to prevent the establishment of an independent school if it has “significant negative consequences for other students” or if it “can have serious effects on the municipality’s compulsory school activities as a whole.”

The report Independent upper secondary schools (SOU 1995: 113) initially states that independent schools often “received grants that were higher than the amounts prescribed by the government” and emphasized that equal conditions are a prerequisite for equivalent education. It is then determined that “nationally prescribed amounts” shall no longer occur. Municipalities must calculate the student allowance on the basis of the school’s actual costs, based on the school’s commitments and the students’ needs. The calculation shall be made on the same basis and according to the same principles that the municipality applies in terms of costs for students who attend a corresponding program in a municipal school. “

Bill 1995/96: 200 is dominated, like all other texts, by promises of a good and equal education for all students, regardless of where they live, socio-economic conditions and the school’s owner. This will be achieved through competition on equal terms between municipal and independent schools. “Diversity itself is positive and does not stand in opposition to equality and good quality. On the contrary, diversity is usually a prerequisite for development and pedagogical renewal.” Great emphasis is placed on the influence of parents and students over school and teaching, while the role of teachers is given a less prominent place.

Ms Johansson, followed the inquiry’s (SOU 1995:109) advice regarding the size of school fees. The current order was considered to have been too rigid. The proposal was thus that grants should be given “according to the same principles that are applied to the municipality’s own” schools “based on the school’s commitment and the students’ needs.” If the establishment of a school can have significant negative consequences for a municipality’s school system, the National Agency for Education may refuse to pay grants.

A key aspect that was only touched on by a few consultative bodies was that the municipalities have dual roles – they finance and compete with independent schools. Surely there was a risk that a municipality would favour its own schools? I do not see that Ms Johansson answered this question. The only thing said is “that the municipalities develop clear rules for their resource allocation that can be evaluated.”

This bill sets out the basics for calculating school fees, which does not mean that all schools should receive the same amount. According to the public report A common concern (SOU 2020: 46), however, an agreement with the Green Party led to the level of compensation being raised to 100 percent in 1997. This laid the foundation for the sharp overcompensation and competitive advantage for profit-driven schools that still applies.

It is worth mentioning that the Bildt government’s proposal was to outsource teaching. This indicates an agreement between the municipalities and the contractor in which the assignment to be performed is specified. The Social Democrats did not argue against the idea of independent schools but opposed it being done on a contract basis. In reality, the joint-stock companies that established themselves came to enjoy almost total freedom from oversight.

In the rearview mirror:

With the fragile authority of hindsight, it is easy to judge these bills, investigations and memoranda as clueless and vacuous – and full of hopes that proved pious. If you want to find a single insight into possible consequences, you have to look in the rich harvest of comments from consultative bodies – and even there they are thin on the ground. It must therefore be repeated that even in the mid-1990s, only a few percent of the students went to what could still be called independent schools. And most of them applied an alternative pedagogy. There were not yet any school companies with the venture capitalist’s required rate of return and tax domicile in Luxembourg.

It is only in the rearview mirror that we see that it was unfortunate to abandon the model with a recommended minimum level for grants to independent schools. Judging by the consultation responses to the report Grants and student fees (SOU 1992:38), there was solid support for a compensation level of 75 percent. The argument in Bill 1995/96:200 that it means “an overly rigid allocation of resources, without regard to the needs of the students or the commitment of the schools” is not true. It is not a standard rigidly applied but a guaranteed minimum level for the entrepreneur who wants to establish an independent school and takes into account the fact that municipalities have a greater and more costly responsibility. From this floor, municipalities have all the flexibility in the world to adapt the grant to the commitment of independent schools in addition to the minimum requirements.

Another fundamental condition is that the market to be exposed to competition is autonomous in the sense that effects do not spill over into the surrounding society. If we accept that human capital is a nation’s most important asset – a rule of thumb says that it is worth five times more than other physical production resources – then the school market is by far the least autonomous. This is also a reason to nationalize the school. The state has an extraordinarily strong reason to guarantee that that all young people receive a solid education and opportunities to realize their full potential. This incentive is not at all as strong in municipalities that lose all their young people to universities in larger cities.

Why did we not see it coming?

In fact, it should have been possible to see what would happen. It is extremely attractive to sell goods and services to public authorities. The customer is not only flushed with cash but legally obliged to buy; the cost of capital is low; it is easy to enter the market; the risk is almost non-existent; advance payment is common and the cost of product development is negligible. In the early 1990s, the “school market” in Sweden was opened to virtually anyone who could rent a square room for thirty students. The state abdicated and during the first fifteen years, in practice, all applicants were approved.

The main players in this market were municipalities; a number of companies of varying size that ran schools for profit as well as students and parents who were free to choose school. Students brought with them a voucher of a fixed value. Crucial to the success of private actors was therefore to fill the classrooms. They could choose between two strategies. The hope expressed in the government’s bills was that they would invest in high quality and pedagogical renewal at the same time as competition would guarantee a wise management of resources. This strategy requires investment over a longer period of time. The company must be able to recruit the best teachers; provide attractive premises; have a well-equipped library and access to various types of support staff. It may work, but it requires at least two things. There must be an independent body that evaluates and informs about the high quality and customers must demand a good education and not primarily be interested in good grades. A faster way is to keep costs down. If this strategy is chosen, the quality-adjusted teacher density will be lower; the school library may be missing; premises and schoolyards are less efficient and the nurse is seldom seen. The most important thing for frugal school entrepreneurs is to be able to select students. If it succeeds, the dividend will be doubled. Caring and problem-free students with highly educated parents create an attractive study environment that attracts other students and teachers while keeping costs down. A troubled boy with reading and writing difficulties costs more than school fees. For a school that invests in reducing costs, it becomes almost inevitable to dog-whistle that high grades can be obtained without too much work.

That competition would lead to grade inflation should not have come as a surprise. It arises in all markets where schools have a financial incentive to compete for students. This is very true for many American universities. Michael Parkin states in his textbook Macroeconomics that “grade inflation, well documented in many schools, is particularly characteristic of Ivy League universities.” The cost of studying at the top universities is very high. It is then natural that the customer wants value for money and the universities have every reason to oblige. At Princeton, the situation became so alarming that management was forced to decide that only a third of the students could be considered for the highest grade. It is actually quite obvious that schools-for-profit will provide high grades if that is what the customer demands. Swedish parents and students are very keen to get good grades – they may be worth millions – and Swedish for-profit schools have at least as strong arguments as American universities to satisfy the customer’s wishes. However, we are alone in letting the taxpayer foot the bill.

If high grades become a desirable benefit for students and parents (regardless of whether they reflect knowledge and skills), we should expect that this demand is primarily met in municipalities where private and municipal schools compete. Profit-driven schools must fill the classrooms and the municipal ones must keep up. The high grades are then not necessarily a result of increased knowledge but of the competition itself. The effect is likely to be visibly greater in upper secondary schools than in primary schools.

We can now see the results. The quality-adjusted teacher density is and has always been much higher in municipal schools and the difference is greatest at upper secondary school level. The cost of students is clearly lower in schools run by joint-stock companies. These companies have been extremely successful in selecting students from socio-economically strong backgrounds. Admission on the basis of queuing time practically excludes newly arrived young people.

High school diplomas are worth many millions because they provide access to attractive higher education. All indications show that parents and students prioritize grades over education and educational experiments. Children of highly educated parents manage even if the school’s teaching is mediocre. Teachers complain about late evening calls from aggressive parents. Complaints are almost always about grades – rarely about substandard education. It is therefore inevitable that competition drives joy ratings. At the same time as Swedish students’ performance according to all measurements has fallen since the mid-1990s, the grades have skyrocketed. The tendency to give joy ratings is greater in profit-driven schools and in municipalities where competition with municipal schools is stronger.

When the state handed over the responsibility of education to the municipalities, several school politicians warned of what would happen. What no one seems to have expected is that many municipal politicians would abandon their own schools and wholeheartedly invest in attracting profit-driven schools to establish themselves. The large school groups, especially the International English School, have not only been overcompensated by the regular school fees. In many cases, they have also received bespoke subsidies from municipalities.

Who gets the money and what did we get for it?

Despite the fact that schools run by joint-stock companies since almost thirty years have received 10 – 25 percent more than they have earned, they apparently have a hard time making ends meet. The standard answer from the National Association of Independent Schools is that the profit margin is a modest 3,5 percent. This is reminiscent of the old story of the CEO who asked his auditor what the profit was and got the counter-question: What do you want it to be? When Mr Ilmar Reepalu was commissioned to investigate a profit ceiling of 7 percent, we were told that the industry would wither away if this became a reality. The finance company in Luxembourg, Paradigm Capital, which in 2020 bought out the International English School from the stock exchange for just over SEK 3 billion, is not known for investing in low-yielding assets. The capital that forms the basis for the percentage is a highly malleable entity. The traditional way to hide an uncomfortably large profit is to buy services from other companies in the group (which are often in a more attractive tax jurisdiction) at a premium. For instance, school companies can pay high rents for the premises they have in many cases acquired for a song from a friendly-minded municipality. High executive salaries also lower profits. Managers in private companies have a remuneration that the country’s prime minister does not even dare to dream of. Ann-Marie Lindgren reports, in her well-documented paper Every wasted tax crown, that the CEO salaries in the six largest health and care companies in 2019 averaged 7 million or 580,000 a month. In the same year, the directors general who led three authorities with supervisory responsibility for healthcare (the National Board of Health and Welfare, the Swedish Public Health Agency and the Swedish Health and Care Inspectorate) together received a monthly salary of approximately 370,000.

We can also be sure that the money does not go to high teacher salaries and student care. In both these respects, private schools have clearly lower costs. Many municipalities have also used the opportunity to subsidize rents. Mr Tobias Johansson-Berg, professor of business administration, has recently suggested that instead of limiting profits, school companies should open their books and openly show what money is used for.

But more important, of course, is the added value we are promised as a result of competition between municipal schools and those run as joint-stock companies. The award-winning journalist Mr Kristoffer Örstadius has for several years studied results and grades in Swedish schools. In a popular article, he anonymised some schools’ PISA results and was able to show that the students in the acclaimed English school in Bromma had clearly worse results in mathematics than those who went to the municipal low-performing Petrus Magni school in Vadstena – but the girls and boys in Bromma received better grades. His latest fact-checked article in Dagens Nyheter (2022-02-18) is mainly about primary schools and is based on a comparison between the schools’ final grades and the national tests. It then turns out that “the grades are…systematically more generous in independent schools than in municipal schools. The difference is significant in all school subjects with national tests except Swedish” An interesting circumstance is that the independent schools that are run as joint-stock companies are more likely to give joy ratings than those that are run in the form of foundations. It is also clear that national tests have a restraining effect. In uncontrolled subjects such as art, music and home economics, all inhibitions are thrown to the winds as far as grade inflation is concerned in private schools – especially in the three largest groups.

Örstadius refers to several studies that show that independent upper secondary schools give more generous grades than municipal ones. But despite its lower grade point average, “municipal” students perform better in the first year of university than students from high schools that are run as joint-stock companies. This is in line with the conclusion of a study from the National Agency for Education, From upper secondary school to university, which studied the students who went directly from high schools to the university in the academic year 2014/15:

“The students who have attended an independent upper secondary school have lower performance – despite the fact that this group generally has slightly higher grades from upper secondary school. This difference applies to students at different levels of grade points, and to each of the college preparatory programs.”

The School Commission stated, like many others, that the Swedish schools no longer provide equivalent education for all pupils. Above all, the young people who have the worst conditions have been left in the lurch. The growing segregation is essentially due to other factors, but the promised reduction has not materialized. That competition would contribute to cooperation and synergy was never credible. Home and School associations no longer have a meaningful role in municipalities with a fragmented school system. The pedagogical renewal is not visible. If we accept that higher education credits are an adequate way of measuring the quality of the school, the experiment that began in 1991/92 seems to have produced negative added value.

Towards a brighter future?

The legal institution of limited companies was created in order to give entrepreneurs the opportunity to run profitable businesses with limited personal risk. As long as we allow these companies to sell educational services in Sweden, it will be difficult and expensive to steer development in the right direction with rules and controls. The incentives to provide customers with joy ratings and keep costs down by choosing “cheap” students are compellingly strong. When the “children’s experiment” (Barnexperimentet) began shortly after the school was communalized, the state largely relinquished responsibility for the activities. For a short time, even the activities of private schools were classified. As the need for transparency and control increases, a chorus of teachers testifies to the documentation hysteria that has befallen them.

Nationalizing the school is a step in the right direction, even if part of the business is still run by profit-motivated joint-stock companies. Education from an early age to university studies is society’s most important “production” of genuine public benefit. As shown, the state has a clearly stronger interest than municipalities in giving students a solid foundation for a future professional career and competence to pursue university studies. No matter how a grant system is designed, it must be equal in all municipalities according to the Education Act.

It is of course possible to let university entrance exams determine who gets admission to university studies. However, it will be expensive and opportunistic. The training would focus on passing a test. But above all, we would lose the information value of the grades. An old-fashioned high school diploma – a teacher’s assessment after following their students for three years – has proved to be an excellent and broad proof of competence. The focus should preferably be on strengthening the legitimacy of the grades.

Magnus Henrekson et. al. mention, in the book Kunskapssyn och pedagogi the possibility of having anonymised tests corrected by independent assessors. One such system – the International Baccalaurate Diploma Program – is available in 127 countries and offers tuition at 30 upper secondary schools in Sweden. It is expensive but possible.

Penalty fees against schools that obviously issue joy grades are not appealing. Neither is it possible to tolerate that some schools raise the grades and steal university places from young people who have earned them. In a state system, it would be easier to solve this problem for the simple reason that the state really wants to do something about it.

A simpler alternative is to set the minimum subsidy at 75 percent of the average municipal school fee (it was enough once upon a time) and pay private schools for reported extra costs. This would require the open accounting of the school groups that professor Johansson-Berg advocates.

All these proposals will be met with furious criticism from the school groups’ advocates. It is then important to remember that the experiment was never aimed at creating profitable joint-stock companies that ran schools, but at developing a school system that give all children and young people a chance to “realize the desire of their best moods.”

The program that the present Minister of Education, Ms Lina Axelsson Kihlbom, recently announced is very promising. It addresses a number of issues. Student admission should be fair. The school’s focus on knowledge must be strengthened. We will have better conditions for security and study peace – and the teachers will decide in the classroom. Municipalities should be given the opportunity to reduce the compensation to profit-driven schools because they have a lower cost responsibility. It is all well and good but what happens if municipalities want to overcompensate the school groups?