Archives for category: For-Profit

Ohio has been a profitable state for the charter school industry. Charter leaders make huge contributions to politicians. Politicians make sure that the industry’s cash cows are lightly regulated, if at all. With the right political connections, charters may be rated D or F without any consequences. Should charters be audited? Should they be held accountable for their academic and financial performance? Bear in mind that the essential premise if charter schools was that they were willing to be held accountable inexcjangefpr producing “results.” (Higher test scores.). You might say that this deal has actually warped almost all discourse about the purpose of schooling. It rests on the premise that higher test scores are the fundamental goal of education.

Ohio State Auditor Dave Yost wrote a thoughtful newspaper article describing the dilemma of auditing public-private partnerships.

When does public money trigger public audits? Not when the money flows to a purely private business, like a janitorial service. But what about charter schools?

He writes:

“There’s a messy place where the public and private meet, and the old ideas about accountability aren’t good enough to sort it out. The subject is lurking in the background of the debate over charter-school reform, but it’s wider than that and needs some hard thinking.

The distinction between what’s public and private drives many things in the law. A public entity is subject to open-meetings laws, public-records requirements, public audit and stringent ethics requirements. A purely private entity, such as a sole proprietorship or your family, is not.

But that neat set of labels doesn’t work as well when a thing is both public and private. Lawmakers here and elsewhere are deliberately blending the two — and it seems to be the trend, not the exception.

So, when an entity is a little private and a little public, which rules apply?
For example, a government office generally is cleaned by a contract service, not by government employees. Joe’s Janitorial Service shouldn’t have to open its books to public audit or abide by public-records law. The government is buying services from Joe, and as long as he provides the promised quality of service, it’s no business of anyone’s how he does it or how he spends his money.

On the other hand, if Brave New World, Inc., contracts to be the police department for your town … well, that’s a different story. Brave New World is no longer simply selling services; it is functioning as the government. Lawyers and political philosophers would say it is exercising the sovereign power of the state — and Brave New World probably ought to be subject to the traditional transparency requirements we impose upon our government.

And in between, there are all these other entities that aren’t quite private, but aren’t really public, either.

There are good reasons for blending the public and the private. Government, because its decisions apply to all of us, is designed to go slow. We shouldn’t make decisions at the speed of business when it’s about liberty, or education, or spending money that was collected by law (taxes).

On the other hand, the private sector has the freedom to move quickly, to react to market forces, to innovate — and to fail. So in certain areas where the government process has become bogged down, it makes sense to bring those private-sector virtues into the mix. That’s the idea with many hybrid organizations empowered by state government (and our tax dollars), from charter schools to privatized prisons to the Ohio Air Quality Development Authority.

But then, what does accountability look like?

In Ohio, like elsewhere, the answers are all over the board. There are custom mechanisms drawn into contracts, such as the contract with the state’s private prison contractor. Charter-school management companies are required by statute to provide certain financial information to their schools. The schools then import that information into their own financial statements — which are subject to public audit….

At the same time, it’s mostly or all our money and, therefore, the public’s business. Somehow, treating these entities — usually private corporations — as though they were a sole proprietorship, operating in private, doesn’t seem right, either.
The ongoing debate over charter-school reform is going to happen smack in the middle of this disorganized space in our public life.

How do we protect the public interest while harnessing the best qualities of a mostly private-sector actor? I don’t have a comprehensive answer, but meaningful reform will have these characteristics:

• Information. Although making all the papers of a private corporation public is the wrong answer, the law should require certain relevant information to be provided at particular intervals.

• Independent verification. Some information needs external, independent verification. This could be provided by a firm’s certified public accountants or subject to review by another body. But corporations are used to dealing with this — banks require audited financial information to ensure the numbers are adequate. It’s not growing government to make sure that the information is true. As President Ronald Reagan urged: trust, but verify.

• Segregation of duties. Businesses and governments both make sure that certain duties are done by different people. The IRS has published some criteria for how to think about segregation of duties, which I cited in our report on charter schools earlier this year.

• Governing Board independence.

“Outside directors” — board members who are not otherwise affiliated with the organization — have become a best practice in the private sector, ensuring divergent points of view and oversight of management decisions.

How to approach these factors, and how much weight should be given to them, should be driven at least in part by how much discretion the entity has in exercising the authority of the state. In our examples, Joe’s Janitorial exercises no government discretion, and Brave New World exercised a huge amount.

The details are matters for serious debate. One thing seems utterly clear to me, though: the oval peg of accountability for these hybrid organizations fits neither the square nor the round peg holes we already have. We owe it to Ohio taxpayers and families to fill that hole and repair their doubts about this public-private part of our system of government.

Peter Greene uses the example of Coke to show how market competition does not produce a better product. When faced with a loss of market share, Coca-Cola decided to put the same product into smaller cans. Maybe the failure of “Néw Coke” in 1985 taught them not to mess with the formula.

Similarly, in education, competition has not produced better education. Vouchers are used to send children to schools that teach creationism, that have no curriculum or certified teachers or to charter schools that push out low-scoring students and spend inordinate time on test prep.

Our slavish devotion to competition is destroying education.

One of my favorite charter school stories is the one about the Lion of Judah charter in Ohio. When it was learned that more than a million dollars had been transferred from the charter school, the lawyer for the church asked the judge to forgive his client because it wasn’t his fault: he saw the easy money and greed got the best of him, what an original defense!

Here is the latest from Bill Phillis of the Ohio Coalition for Equity and Adequacy:

“Finally, the Ohio Attorney General files a lawsuit in charterland

Extremely late, but it may be a good sign. The Ohio Attorney General is going after individuals and entities who received $2 million from a now-closed charter school-Lion of Judah. Financial fraud has been a continuing thread in some sectors of the charter industry since the beginning.

Why didn’t Ohio’s Attorney General sue White Hat Management several years ago when Scripps Howard News Service documented that the company was receiving funding for students enrolled but not attending? The Scripps report-GHOST SCHOOLS-documented a vast difference between enrollment and attendance. In one case, a White Hat charter school had a 64% absentee rate for the 2004-2005 school year. The Scripps Howard report quoted a former principal of the Life Skills Center of Cincinnati, “It’s a cash cow! We all used to sit around and joke about it.” Further he said, “I spent less than $1 million on a $3 million operation. What the *%@& are they (executives at his former company) doing with the other $2 million?”

A recent report by the State Auditor showed a great disparity between attendance and enrollment in several charter schools. In March 4 testimony before the House Education Committee, State Auditor David Yost admonished the committee to craft legislation to correct this type of abuse and enforce it via criminal penalties.

The Attorney General should be aggressively protecting taxpayers and students from blatant charter fraud. The lawsuit against those associated with the Lion of Judah charter is a good start.

William Phillis.

Ohio E & A | 100 S. 3rd Street | Columbus | OH | 43215

A few days ago, I posted about a proposal by powerful Republicans to “reform” public education with a grab-bag of failed policies that punish public schools and demoralize teachers while creating a flow of public dollars to the private sector.

 

In this article, the brilliant and persistent Sara Stevenson explains the details of the proposal. Stevenson, a member of the blog’s honor roll, is a librarian at O. Henry Middle School in Austin. She has had more letters published in the Wall Street Journal than anyone I know. She believes in setting the record straight, and she believes in public education. That’s why this destructive proposal made her blood boil.

 

The bill could well have been written in ALEC’s corporate offices. It has everything on the corporate free-market wish list.

 

Stevenson writes:

 

Lt. Gov. Dan Patrick and Senate Education Committee Chairman Larry
Taylor, R-Friendswood, delivered the terrible news last week: The
Senate education plan contains no financial help for school districts,
600 of which are already suing the state for inadequate and
inequitable funding. It offers no testing relief for students in
grades 3 through 8 who must sit for up to four hours at a stretch
taking multiple standardized tests.

 

Furthermore, their proposals are
merely warmed up, stale leftovers written by the American Legislative
Exchange Council, a corporation-funded group that emphasizes free
markets and limited government. Here’s a sample serving:

 

Giving letter grades (A-F) to individual public schools.

A “parent trigger” law, which allows the majority of parents at
individual failing schools to petition for new management.

Removing limits on full-time virtual schools and online courses.

Tying teacher performance to compensation.

Creating a “college and career readiness” course for Texas middle
school students.

Creation of a statewide district to manage failing schools.

 

The most dispiriting part of this education plan is that it proposes
absolutely nothing that will help educators with the serious charge of
preparing our young citizens for their adult lives. Our schools are
terribly underfunded. After the Texas Legislature cut $5.4 billion in
education dollars in 2011, Texas ranked 49th among the fifty states in
per pupil spending. Today we are spending less money per student than
we did ten years ago. How can the Legislature’s continued starving of
school districts help us with the very real challenges we face?

 

Less state funding for schools translates into larger class sizes,
fewer teaching assistants and painful cuts to electives, arts, PE,
libraries and clinics. Texas educators are willing to work hard in
daunting circumstances, but the more our legislators insult us with
unoriginal, ineffective schemes as they deprive us of necessary
resources, the more those of us with choices will flee our beloved
profession. The best teachers will refuse to work in an environment in
which they cannot be successful. I give this lazy, irresponsible
education plan a big, fat zero.”

 

Never mind that not one of these proposals is new or that not one of them has been successful anywhere.

 

Ideologues don’t care about evidence. The goal is to dismantle public education, a fundamental, essential institution of our democracy. In doing so, they override local control and funnel taxpayers’ dollars to entrepreneurs and religious institutions. There is not a shred of evidence that any of their proposals will improve education.

 

These men are not conservatives. Conservatives conserve. Conservatives don’t blow up community institutions. These men are radicals and anarchists, destroying heedlessly, mindlessly, zealously, without regard for the damage they do to the lives of children, families, educators, and communities.

Denish Jones is a contributor to EmPower magazine. She holds a Ph.D. in Curriculum and Instruction from Indiana University. She has taught kindergarten, preschool, served as a campus based preschool director, and taught college for over 10 years. Currently she is a Visiting Assistant Professor of Early Childhood Education at Howard University.

 

In this article, Jones warns that so-called “reformers” have stolen the language of the civil rights movement to advance their goals of privatization and deprofessionalization. Their aims actually contradict the aims of the civil rights movement.

 

 

She writes:

 

1. Privatization is inherently unequal.

The corporate reform movement that is waging war against public education has one goal in mind: privatization. Free-market advocates do not believe in a system of public education and are on a mission to see every aspect of a public society privatized from our prisons to our schools. But with privatization comes the loss of public ownership. Public systems are open to inspection by the public. Records are made public and the process is transparent so that community members can understand what is happening and voice their concerns. Privatization removes the ability of the public to know what is happening with their tax dollars. Private companies can use proprietary laws to prevent them from disclosing documents and following laws pertaining to public records….

 

Without the transparency of how our tax dollars are spent how do we hold private corporations accountable? Some businesses do well but others fail to garner enough capital to stay afloat; that is the nature of capitalism. But when the business model of winners and losers is applied to public education, the losers tend to be children who struggle academically and families without the social capital needed to advocate for their children. The winners are CEO’s and stock holders who earn high salaries with public money but can use their private status to shield themselves from public accountability.

 

2. School choice is not about parents choosing good schools it’s about schools choosing good students.

 

School choice has been pushed by corporate reformers since the creation of charter schools and vouchers. Using the plight of underfunded poverty ridden urban schools reformers argued that low-income and minority families should be given a choice in where they send their child to school. Choice and competition would force low-performing schools to compete for students or be closed. Why should low-income and minority families have to settle for a failing neighborhood schools when parents with more money could choose better schools? This is how the argument for school choice is often framed as a benefit for certain groups. But the research paints a different picture….

The push for privatization distorts the picture of who really gets to choose under school choice schemes. Reformers would have us believe that parents are doing the choosing but in reality it is the charter schools, many which are for-profit corporations, who get to choose.

 

3. Underprepared teachers for other people’s children.

 

Privatization of public education cannot be fully implemented unless the system for educating teachers is also privatized. Typically teachers were prepared through colleges and universities were they took a variety of courses and completed a semester long student teaching internship before they could apply for a teaching license through their state. Today fast-track teacher preparation programs like Teach for America (TFA) are turning teacher preparation into a business. Recent college graduates are recruited to spend a few years teaching in inner-city schools with high needs students. Armed with five weeks of training and a desire to give back, these recruits are placed in classrooms and expected to outperform educators with teaching degrees and years of experience. TFA is touted as noble program that will change the teaching profession by removing the union thugs who only care about themselves and replacing them with young idealistic people who have the commitment to do what needs to be done and will not use poverty as an excuse.

 

Armed with language of from the Civil Rights movement, TFA claims to be champion of low-income and minority children. Statements like this, “Nearly 50 years after landmark civil rights marches throughout the region, deep, entrenched poverty still persists along racial lines” and “From Birmingham to Selma, corps members are helping to prove that all kids can achieve at high levels, even those living in poverty” can be found on their website and are clear examples of how TFA has co-opted the language of the Civil Rights movement. But hidden behind these nice quotes is the assumption that other people’s children deserve underprepared “saviors” as their teacher…..What the richest and most educated parent wants for their own child should be what we aspire to give all children.

 

Denisha Jones concludes:

 

There is much work to done as we continue to march towards Dr. King’s dream. Corporate education reform is not an ally in our fight for educational justice. We must not be fooled by those who seek to use the legacy of our struggle to turn a profit at the expense of our children’s education. A strong democratic republic needs high quality public schools that offer a free and appropriate public education to all.

 

 

Every so often, I run into someone who says that he or she cannot take seriously the claim that there is such a thing as a “privatization” movement. They think that charter schools are public schools (I do not) and they scoff at any concern about for-profit schools. They say things like, “There have always been for-profit businesses in education, selling tests, textbooks, supplies, etc., why does it matter if some corporations run schools for profit?” In their eyes, corporate reform is innovative and risky, and no one—not even the for-profit corporations—is trying to privatize public education.

 

To anyone who questions the existence of the privatization movement, I recommend Doug Martin’s “Hoosier School Heist.” Martin is a blogger who holds a Ph.D. in nineteenth century American literature. He is a native of Indiana who is deeply versed in that state’s school politics and its major (and minor) players. His book is eye-opening; actually, his book is eye-popping. It is a no-holds-barred critique of Indiana’s politically and financially powerful privatization movement.

 

Martin’s critique shows the linkages among the free-marketeers, the Religious Right, and the greedy.

 

A few examples of his snappy style:

 

“Academic progress is irrelevant to voucher supporters, for the goal is not to improve schools through competition, as they claim, but to completely dismantle traditional public schools altogether. In fact, those calling for school privatization don’t want to hold anyone with profit motives accountable, as Florida has proven.”

 

He recognizes that vouchers and charters drain funding from public schools, leaving the latter with fewer teachers, fewer aides, fewer programs—“so for-profit education management companies can take them over with temporary teachers or justify starting charter schools by deeming the neighborhood schools as ‘failing.’”

 

He sees why Wall Street is involved in the charter industry. “Making money from disasters is a Wall Street specialty, and investors have jumped on the opportunity for school privatization. Besides generating tax-exempt bonds, stocks, and other shady financial gimmicks, school privatization allows big bank CEOs, private equity firm honchos, and hedge fund managers to collect interest on loans to non-unionized charter schools which employ a temporary teacher workforce….Unlike traditional public school boards, charter school boards are unelected, undemocratic, and cloaked in mystery. Their conflicts of interest enable schemes like high rent to waste public education money.”

 

Martin challenges the corporate-sponsored claims that the public schools are failing to produce a good workforce. He says that Indiana’s newspapers and TV stations “advertise corporate school talking points, portray front group spokespeople as ‘experts,’ and seldom, if ever, question that profit motives and rigged research behind the corporate-sponsored statements that our schools are failing.”

 

The Republican-dominated legislature has taken steps to cripple the funding of public schools. “To sneak more politically connected for-profit charter schools into Indiana, in 2010 legislators cut $300 million annually from the public school budget and mandated tax caps to purposely ensure the destruction of public schools….Since the state controls the purse strings, Republican lawmakers have purposely bolted in place everything needed to start closing down Indiana schools and expanding for-profit charter schools.”

 

Martin shows how the overuse of standardized testing has benefited corporate politicians like Mitch Daniels. Not only do they stifle the critical thinking skills needed in a democratic society, not only do they send millions to testing corporations, but they demoralize and drive out good teachers. This too sets public schools up for failure.

 

One of the valuable aspects of Doug Martin’s book is his careful dissection of the sponsors of corporate reform in Indiana. A key player is called the Mind Trust, which Martin cites as an exemplar of “crony capitalism.” Martin writes:

 

“The Mind Trust typifies America’s counterfeit political Left. Mouthing the rhetoric of class warfare, civil rights, and female empowerment, the mock liberals at Education Sector, the Center for American Progress, and the New America Foundation, all supportive of the Mind Trust specifically or school privatization in general (and most bringing home six-figure salaries), attack teachers unions and public schools and connive to mount in place a school system based on corporate profit, one which disenfranchises the female teachers and minority and poor students they claim to be helping.”

 

Martin calls out the enablers of the school privatization movement, such as Eli Lilly and the Lilly Endowment, reliable funders of privatization activities, and of Teach for America and the New Teacher Project, which will recruit the temporary teachers needed for the charters. He cites the power of ALEC in the Indiana legislature, whose members pushed to evaluate teachers by their students’ test scores and to judge colleges of education by the test scores of students taught by their graduates. He provides overviews of the anti-teacher, anti-union, privatization agenda of Stand for Children, DFER (Democrats for Education Reform), the Christian right, the Bradley Foundation, the DeVos family of Michigan, and the Black Alliance for Educational Options (BAEO), which promotes charters and vouchers.

 

Martin doesn’t offer any suggestions about how to combat the well-funded, interconnected organizations that are advancing the privatization agenda. His book contains valuable information about the privatization movement, its goals, its major players, and its strategies. He leaves it to voters to figure out how to save public education in Indiana.

 

Whether or not you live in Indiana, you should read this book. The major players like DFER and BAEO operate nationally. The activities in Indiana follow a script that is being enacted in many states, probably including yours.

 

Hoosier School Heist is listed on amazon.com, or you can obtain a copy by going to the website http://www.hoosierschoolheist.com.

This is an excellent series of articles on the rise of the privatization movement in Pennsylvania. The bottom line, as usual: Follow the money.

 

If you want to understand the growth of charter schools in Pennsylvania, you must read this bombshell article by Daniel Simmons-Ritchie.

 

The charter lobby has spent millions to influence legislators. It also has the ability to mobilize hundreds of children to pack legislators’ offices, a tactic unavailable to public schools.

 

Pennsylvania does not allow for-profit charter schools, yet there are many for-profit charter schools in the state.

 

Do you want to know who is making money by sponsoring charters? The article has the names and details.

 

It’s no secret that Harrisburg is a hive of lobbyists, each representing industries and interests that spend millions to persuade state lawmakers to bend laws in their favor.

 

But perhaps what makes the charter-school lobby unique among the pack, says State Rep. Bernie O’Neill, a Republican from Bucks County, is its ability to deploy children to its cause.

 

In 2014, O’Neill experienced that first hand after proposing changes to a funding formula that would affect charter schools. Parents and children stormed his office and barraged him with calls and emails.

 

“They were calling me the anti-Christ of everything,” O’Neill said. “Everybody was coming after me.”

 

In recent years, as charter schools have proliferated – particularly those run by for-profit management companies – so too has their influence on legislators. In few other places has that been more true than Pennsylvania, which is one of only 11 states that has no limits on campaign contributions from PACs or individuals.

 

According to a PennLive analysis of donations on Follow The Money, a campaign donation database, charter school advocates have donated more than $10 million to Pennsylvania politicians over the past nine years.

 

To be sure, charter-school advocacy groups aren’t the only ones spending big to influence education policy in the Keystone State. The Pennsylvania State Education Association, which represents 170,000 teachers and related professionals, has spent about $8.3 million over the same time period according to Follow The Money.

 

But what perhaps makes the influx of money from charter-school groups unique in Pennsylvania is the magnitude of spending by only a handful of donors and, in recent years, some of their high-profile successes in moving and blocking legislation.

 

“They are mobilized,” O’Neill said. “Let me tell you something: they are mobilized.”

 

 

The series is introduced with this summation:

 

“It’s a plan reviled by teachers, loathed by parents, and decried by local politicians, but against huge opposition, York may become the third city in America to privatize the entirety of one of its public school districts.

 

“How did a public school system in the midstate rise to the forefront of a national experiment in education reform? And how did an entire community lose control of its own decision-making ability? The answer to both those questions, education researchers and public watchdogs say, lies in large part on a concerted, multi-million dollar campaign over the past decade by for-profit schools to alter Pennsylvania law.

 

“Those changes, and the industry lobbying that continues behind-the-scenes, have implications for teachers and students across the entire state. It’s a subject we have tackled in a series entitled “The Rise of Charter Schools in Pa.”

Peter Greene discovered a bold new policy plan in Milwaukee. It turns the war on poverty into a war on the poor.

He writes;

“On Wednesday, Senator Alberta Darling and Representative Dale Kooyenga released “New Opportunities for Milwaukee.” It’stunning. It’s a blueprint, a plan, a carefully-crafted rhetorical stance that turns the war on poverty into a war on the poor. Does it present new opportunities? It surely does– but they are opportunities for more privateers to use the language of civil rights to mask the same old profiteering game.

“Make sure your seat belts and safety harnesses are locked in place, because we are about to travel to a place where up is down and forward is backward. The first chunk is directly related to education; the rest is not, but I’m going to go the distance anyway because it helps lay out a particular point of view that is driving some reformsters. The full report is twenty-five pages; I’ve read them so that you don’t have to, but you may still want to. Forewarned is forearmed.”

The report begins with this claim;

“2014 marked the 50-year anniversary of the war on poverty. Since 1964, taxpayers spent over $22 trillion to combat poverty. Little, if any, progress has been achieved.”

“”Two-thirds of the incarcerated African-American men come from six zip codes in Milwaukee and it is no coincidence that those zip codes are also home to the greatest density of failing schools and the highest unemployment in the state.” Boy, and that’s true. It’s also no coincidence that every time I see a building on fire, there’s a fire truck right nearby, or that every time find water dripping off my car, there’s rain. Say it with me, boys and girls– correlation is not causation.”

The plan not only declares the war on poverty a failure (no point throwing money at poverty, even though lack of money defines poverty) but declares the civil rights movement a success, therefore matters like segregation are unworthy of our attention.

Peter, in his inimitable style, dissects the recommendations for ending poverty without spending money. It starts with charter schools…

Jeb Bush prides himself on being a master of technology. He was one of the main movers behind a report called “Digital Learning NOW!,” which was underwritten by a score of technology companies. Many of those same companies are sponsors of Bush’s Foundation for Educational Excellence, and he has actively promoted replacing teachers with technology. A reporter in Maine traced the links between Bush and his sponsors and won a major journalism award for this story.

 

But technologically speaking, this was a bad week for Jeb Bush. First, in an effort to demonstrate transparency, he released a trove of private emails, not knowing that he was making public the emails, addresses, phone numbers, and in some cases, social security numbers of people who had corresponded with him. Then, he had another tech problem. He hired some guy to be his campaign’s technology director who had a long trail of misogynistic statements, referring to women as “sluts,” for example.

 

Read about it here.

Imagine Schools is one of the nation’s largest for-profit charter chains. Its schools were closed down in St. Louis and in Georgia for poor performance, but the corporation is undeterred.

Problems continue, however, as Imagine’s business model doesn’t always pass muster.

Here is the latest, written in the Fort Wayne Journal-Gazette about Imagine’s legal troubles in Missouri:

“U.S. District Judge Nanette K. Laughrey ruled in December that Imagine Schools Inc. profited from a “double-dealing” lease scheme and that it must pay the local board of the now-closed Kansas City school nearly $1 million.

“The national charter school chain used its own finance company, Schoolhouse Finance, to sell Imagine Renaissance’s two campuses to obtain lower lease rates, according to the suit. While it benefited from the lower rate, it continued to collect taxpayer dollars through the local charter board at the higher rate.

“There is not evidence that Imagine Schools ever told any Renaissance board member how Imagine Schools would benefit from the leases,” the judge wrote.

“The Kansas City Star reported that Imagine Inc. did not appeal the ruling, as the company and the local charter board have reached a confidential settlement.

“The judge’s findings are remarkable for their parallels with the charter operator’s Fort Wayne experience. The company opened the city’s third charter school, Imagine MASTer Academy, at the former YWCA campus on North Wells Street in 2006. Oversight was supposedly provided by the Imagine-Fort Wayne Charter School Inc., a local board once headed by businessman Don Willis, but the board came under fire from its authorizer, Ball State University, for lax oversight.

“Imagine’s local real estate dealings were complex from the start. The YWCA campus was purchased in 2006 by North Wells Schoolhouse LLC, an Indiana company with the same Arlington, Va., mailing address as the for-profit Imagine Schools Inc. The sale price was $2.9 million. The local Imagine school board then subleased a portion of the campus from Schoolhouse Finance, Imagine Inc.’s real estate subsidiary. Schoolhouse, in turn, sold the property to JERIT CS Fund, a wholly owned subsidiary of Entertainment Properties Trust, a Kansas City-based real estate investment trust. The same company owned the Kansas City school at the heart of the lawsuit.

“The REIT, in fact, still lists the North Wells campus among its charter school real estate holdings, although Imagine MASTer Academy – threatened with closing by Ball State – relinquished its charter and reopened as Horizon Christian Academy. Three Fort Wayne Horizon schools collected nearly $2 million in tax-funded vouchers from Indiana last year. An Imagine spokesman said at the time of the switch that Horizon would pay Imagine for operation and facility support under terms of a private agreement. About $3.6 million in state loans made to Imagine were forgiven.”

Funny. Usually you need educators to figure out what went wrong. In the case of for-profit charter chains, you need an accountant and several lawyers.

The editorialist in Fort Wayne noted that this is a cautionary tale that was not told during National School Choice Week.