Archives for category: For-Profit

Michael Hiltzik, a columnist for the Los Angeles Times, reviews the context of the drive for unions at Starbucks. it’s CEO, billionaire Howard Schultz, wants to portray the far-flung coffee shop empire as worker-friendly, and he is flatly opposed to unions. He insists that the unions bring an adversarial edge and downplays the likelihood that unions would mean higher wages and benefits at the cost of profit margins.

Hiltzik writes:

Many American consumer companies, including Amazon and McDonalds, have been dealing with a surging interest in unionization by their employees, spurred in part by the pandemic-driven recognition that their employers have consistently undervalued their contributions to business success.

But few such union drives are as high-profile as the one at Starbucks. One reason may be the company’s warm and comforting image and its efforts to project a friendly relationship between customers and workers, who are designated in company parlance as “partners.” That’s very much at odds with the image of an employer so cold to the welfare of its workers that they’re spurred to organize.

Another may be the rapidity of the unionization drive’s expansion, which began with pro-union votes at three Buffalo-area stores. Workers United, an affiliate of the Service Employees International Union that is organizing union votes, says 223 Starbucks locations in 31 states have filed for votes with the NLRB.

That’s a fraction of the roughly 9,000 company-operated stores in the U.S., but reports of new successful votes are streaming in on virtually a daily basis. Five stores in the Richmond, Va., area voted for unions by overwhelming margins on April 19 alone, and workers at the company’s Seattle Reserve Roastery, a flagship tourist draw in Starbucks’ home city, announced a successful vote on April 21.

Workers United says 28 Starbucks stores have now voted to unionize, up from nine that had done so as of April 1.

“Because Starbucks is a front-facing company considered ‘essential,’” Workers United organizing chief Richard Minter says, “the pandemic exacerbated the employer-employee relationship. The partners were left in the crosshairs without the resources necessary to handle what was happening, without the right precautions and protocols that allowed them to feel safe.”

The company has mounted a fierce counterattack against the organizing drive. In videotaped town hall presentations, written communications to workers and managers, and in meetings with workers around the country, Schultz has repeatedly characterized unions as a menace to the company’s economics and future.

“Outside labor unions are attempting to sell a very different view of what Starbucks should be,” he wrote in an open letter posted on the company’s website April 10.

Employees “supporting unionization are colluding with outside union forces,” he wrote. “The critical point is that I do not believe conflict, division and dissension — which has been a focus of union organizing — benefits Starbucks or our partners…”

The union threat, Shultz said in a town hall meeting shortly after his reappointment as CEO, extends beyond Starbucks: “Companies throughout the country [are] being assaulted in many ways by the threat of unionization.”

Starbucks, in an anti-union FAQ posted on its website, warns that “unions get their revenue from dues, which could come out of your pay each week or month.” It says, “unions use dues to pay for their office overhead, staff salaries and other expenses,” though it doesn’t mention the expense of negotiating contracts and enforcing their provisions, which are of course the chief duties of unions.

The company also has hired the law firm of Littler Mendelson, which boasts of its skill at guiding companies “in developing and initiating strategies that lawfully avoid unions.” These include advising management on “precise and compliant messaging to employees … that may include informational signs and posters, home letters, meeting materials, testimonial videos, social media postings, handouts and campaign websites.”

Followers of labor-management relations will recognize that Schultz’s words come directly out of the canonical corporate anti-union playbook:

Paint the unions as “outsiders.” Imply that their only goal is to add members. Say they’ll disrupt the smooth working of the company or even drive it out of business. Say they’ll make it impossible for workers to deal directly with management. Talk about how much money workers will lose to dues…

Starbucks is plainly aware of the complaints about pay and working conditions that are fueling the organizing drive. The company has displayed on its website a poster it says reflects “issues we have been hearing from partners…”

Starbucks is not new to the arena of fraught labor relations. Its animosity toward unions dates back to Schultz’s 1987 acquisition of the company, then a local chain of coffee spots in Seattle. At that time, Starbucks employees were represented by the United Food and Commercial Workers Union. Former workers say Schultz promised to honor the UFCW contract but almost immediately tried to renegotiate it.

It’s conceivable that Schultz honestly sees himself as the hand that can improve Starbucks’ relationship with its workers, and that unions will only get in the way. He’s adept at projecting sincerity, as when he says in an employee video of the worker meetings that “it was difficult and emotional at times to hear the challenges and the issues that partners are facing.”

Unlike some other companies, Starbucks has not turned a cold shoulder to unions that have been voted in at its stores; Workers United says the company has begun to meet with union representatives at two of the Buffalo stores that touched off the organizing trend, though they have not reached contracts.

The real question is whether the company will draw the right lessons from the union organizing drive: that unions and management can be partners, not invariably adversaries, that demonizing unions won’t improve labor relations, and that workers’ interest in unionization doesn’t mean they hate the company.

Valerie Strauss of the Washington Post recently summarized the efforts by Florida Governor Ron DeSantis to destroy public schools in his state.

Florida Gov. Ron DeSantis (R) has been fighting with the Walt Disney Co. for weeks now since it angered him by criticizing a law he championed that limits discussions of gender issues in public school classrooms. But his attacks on public school districts began just as soon as he took office in 2019.

DeSantis had been governor barely a month when he offered a new definition of public education that eliminated the traditional division between public and private schools. To DeSantis and his allies, “public education” includes any school — including religious ones — that receives public funding through voucher and similar programs. “Look, if it’s public dollars, it’s public education,” he said in February 2019. “In Florida, public education is going to have a meaning that is directed by the parents, where the parents are the drivers because they know what’s best for their kids.”

That was the start of what has evolved into the most aggressive anti-public education battle waged by any governor in the country. In the past year — and especially in recent months — as he has worked to amass more than $100 million for his 2022 reelection campaign, and possibly for a 2024 Republican presidential run, he has quickened the pace of his attacks.

He has, among other things: limited what teachers can say in classrooms about race, gender and other topics and appointed anti-public education figures to his administration, including a QAnon supporter, and, as education commissioner, an employee of a charter school management organization. He has also legally empowered parents to sue school districts as part of his “parental rights” initiative and micromanaged and limited the power of local school districts.

In what his critics say is a revealing move about their educational intentions, DeSantis and Florida legislators routinely exempt charter and private/religious schools from many of the restrictions and actions they take against public school districts. For example, the law that restricts classroom discussions on gender and sex education — known as the Parental Rights in Education law — applies to a state statute dealing with school board powers, according to the Tampa Bay Times. The Florida Department of Education did not respond to a query about this.

DeSantis and his like-minded compatriots make no secret about wanting to privatize public education — arguably the country’s most important civic institution. Their “school choice” movement means expanding alternatives to public school district. They include charter schools — which are publicly funded but privately managed — as well as voucher and similar programs that use taxpayer money to pay for tuition and other costs at private and religious schools. These schools can legally discriminate against LGBTQ and other students and adults.

To these activists, public schools are not the mainstay of America’s democratic system of government that tries to instill civic values to students from different racial, ethnic and religious backgrounds. Rather, as the libertarian Cato Institute says on its website: “Government schooling often forces citizens into political combat. Different families have different priorities on topics ranging from academics and the arts to questions of morality and religion. No single school can possibly reflect the wide range of mutually exclusive views on these fundamental subjects.”
Critics say this mind-set rejects the notion that America is a melting pot that flourishes by the coming together of people from different places, backgrounds, races and religions. They also say that school “choice” efforts to use public funding for private and privately run education take vital resources away from the public districts that enroll the vast majority of the country’s schoolchildren.

They point out that the public has no way to hold private and many charter schools accountable, because their operations are not transparent. There is irony, they say, in the fact that the people pushing the “parental rights” movement seeking transparency in public school districts don’t demand it of nonpublic schools that they want funded with public funds.

Last year, DeSantis visited a Catholic school in Hialeah to sign a bill that greatly expanded voucher programs while reducing public oversight. Originally intended for students from low-income families, DeSantis’s administration now also allows vouchers to go to a family of four earning nearly $100,000.

He has also played a leading role in the right-wing movement to restrict what teachers can and can’t say in the classroom about subjects including race, racism, gender and sex education. On April 22, he signed into law the “Stop WOKE Act,” which limits how race-related topics can be discussed in public school classrooms and workplace training, while essentially accusing public school teachers of trying to indoctrinate students.

About three weeks earlier, on March 28, he signed what critics dubbed the “don’t say gay” bill that limits teachers from discussing sexual orientation or gender identity. While numerous similar bills have been considered in legislatures in years past, it was DeSantis who pushed through the first one to become law.

On April 15, his administration announced that it had rejected publisher-submitted math textbooks books for including passages his administration doesn’t like, including those it says are about critical race theory and social-emotional learning.

DeSantis’s appointments to his administration reveal his attitude about public education. On April 21, he nominated state Sen. Manny Diaz (R) — who works at an affiliate of Academica, a for-profit Miami-based charter school management firm — as the state’s new education commissioner. Diaz will almost certainly be approved by the Florida Board of Education.

Diaz — who is chief operating officer of Doral College, a private college owned by Academica — has been instrumental in the legislature in expanding charter school growth. Florida, where charter schools have virtually no oversight, has seen a raft of financial scandals related to the industry.

Ten days before appointing Diaz, DeSantis’s administration appointed Esther Byrd, an office manager at her husband’s law firm, to the Board of Education. Byrd has on social media expressed sympathy with QAnon beliefs and offered a defense of those “peacefully protesting” the confirmation of the 2020 presidential election on Jan. 6, 2021, when the U.S. Capitol was overrun by a pro-Trump mob. She has alluded to “coming civil wars.” According to the Florida Times-Union, she and her husband, state Rep. Cord Byrd (R), flew a QAnon flag on their boat.

DeSantis also appointed to the Board of Education radiologist Grazie Pozo Christie, a senior fellow for the Catholic Association who wrote an article a few years ago saying the best thing parents can do for their children is to take them out of public schools.


Last October, while discussing “parental rights” in education and touting mask-optional policies at a news conference, DeSantis invited Quisha King, a leader of the right-wing Moms for Liberty group, to join him. King has called for “a mass exodus from the public school system.”

During the pandemic, DeSantis became a leader among governors of the anti-mask movement when he issued a ban on mask mandates in public schools — and then proceeded to penalize districts that required masks in compliance with federal government recommendations. His administration withheld the salaries of some superintendents and school board members that defied him — prompting the Biden administration to promise to make up for the deficit. He has also backed a plan to withhold a total of $200 million in different funding from districts that angered him.

His wrath at local school boards that don’t do his bidding has blown apart the Republican Party’s traditional stance that local education is the business of local issues. In March, one of the bills he signed into law included a provision that limits local school board terms to 12 years — without asking local voters if that’s what they wanted.
He also established a charter school commissioner office inside the Florida Department of Education, which has the power to approve or reject applications for charter schools without local school district input. Even the National Association of Charter School Authorizers thought it was a bad idea, writing on its website:

“Once a school is approved, the Commission would have no other authorizing responsibilities and the local district would be required to do all other authorizing duties. This goes against national best practice. … This is a bad idea since research shows that an authorizer’s commitment and capacity are essential to strong charter schools.

Last June, the DeSantis administration intervened in a local decision by the Hillsborough County School Board, which met to discuss a dozen proposals to open charter schools or extend the operating agreements on others. After it voted to close four existing charters, it received a letter from the Florida Department of Education saying that unless it kept those schools open, it would lose millions of dollars in state funding.

Finally, whatever the governor’s reason, Florida was the last state to tell the U.S. Education Department how it intended to use $2.3 billion in federal American Rescue Plan funds, which had been approved by Congress to help public schools recover from the pandemic. The deadline for states to apply for the money was in June 2021. Months later, on Oct. 4, Ian Rosenblum, then deputy assistant secretary for policy and programs in the U.S. Education Department, sent a letter to the DeSantis administration noting that Florida’s delay in applying for the funding was creating “unnecessary uncertainty” for school districts that needed the cash. Florida filed it a few days later.

DeSantis’s star power in the school “choice” movement is such that one of its longtime leading figures, former education secretary Betsy DeVos — who has called public education a “dead end” — solicited DeSantis’s help to promote a petition in her home state of Michigan to establish a voucherlike program. She and her family have donated hundreds of thousands of dollars to DeSantis.

I wrote this article that was published in the New York Daily News. It could be subtitled: “Lies that the Charter Lobby Says to Protect Its Money Pit.”

Fix this wasteful federal charter-school fund

By Diane Ravitch

New York Daily News

April 28, 2022 at 5:00 am

The federal Charter School Programs (CSP) began in 1995 as a modest program intended to jump-start new, independent, publicly funded schools free of most regulations. The idea was to free educators from bureaucracy and enable them to create laboratories of innovative practices that could be used to improve district schools. At the time, there were only about 100 charter schools in the nation. It was a bold idea. Having worked in the George H.W. Bush administration, I supported it.

Soon, however, entrepreneurs with no background in education at all realized that the new funding stream could present a profit-making opportunity.

Businessman Ron Packard, with experience at McKinsey and Goldman Sachs, saw a chance to use federal funds to help build the highly profitable K12 Inc. online charter chain (now called Stride), which gets dismal academic results but paid him $19 million during a four-year period.

J.C. Huizenga, the Waste Management heir, used federal CSP dollars to launch his for-profit National Heritage Academies, which helped him amass a real estate empire.

Marcus May, now serving time in prison for massive fraud, got substantial funding from the feds for his New Point Education Partner charter schools, some of which he used to buy a yacht and enjoy extravagant vacations.

Marcus May, the CEO of charter school management company Newpoint Education Partners, was found guilty of racketeering and fraud. He was sentenced to 20 years in prison and fined $5 million.

The program that began with only $6 million has grown into a $440 million fund rife with fraud, waste and abuse. Now there are more than 7,000 charters. The Network for Public Education, an organization I lead, prepared a report called “Still Asleep at the Wheel,” which used data from the U.S. Department of Education to show that 12% of the schools that got federal tax dollars never even opened and another 25% closed within a few years, but the federal money often landed in the entrepreneurs’ bank accounts.

Almost three decades later, the Biden administration has proposed modest reforms to restore the program’s original purposes, such as barring for-profit charter operators. The charter industry has reacted to his effort to regulate the program with outrage, falsely claiming that he is trying to shut down charter schools. Rather than supporting reform, commentators from the Washington Post to the far-right-wing Newsmax have pummeled the proposed regulations.

Opinion pieces defending the status quo sound as if they were written by the charter industry’s lobbyists. Their lies have become so bold that the chair of the House Appropriations Committee, Rosa DeLauro, issued a scathing condemnation, lambasting the “unserious efforts and false claims” advanced by the “national trade organization of low-quality for-profit companies,” arguments that according to DeLauro are intended to “shift outrage and attention away from the risky, low-quality for-profit charter schools they represent.”

What these proposed regulations will do is make sure that federal funds do not flow to charter schools operated by for-profit corporations. The for-profit operators can still open schools if their state allows them, but they won’t get federal dollars to do it.

The regulations would give a few bonus (priority) points to charter schools that try to be good neighbors with local public schools and find ways to share ideas and services. Is it a requirement? No. But remember, cooperation between charters and publics was one of the original purposes of the program. It makes sense that both sectors should share best practices.

Contrary to the critics’ claims, the local public schools would not have to be over-enrolled for a charter school to get a grant. The proposed regulations are clear. Over-enrollment is only one of many ways that a new charter school can demonstrate that it is needed.

Some critics claim that the regulations will force new charters to be diverse, but this is not true. Under the changes, charter schools in areas where there is no racial diversity would still be able to get CSP funds. And if you are in a diverse community and you want to open a white-flight charter school you can still do it, but not with federal start-up funds. CSP money should not be used to fund white-flight charters.

Finally, the regulations would require states to supervise how the money is being spent — something that has been sorely lacking. That would be a big improvement over the status quo, which has wasted a billion dollars since 1995 on schools that never opened or opened and eventually closed.

Conservatives always prided themselves on being good stewards of tax dollars. There is nothing conservative about refusing to regulate a federal program that hands over $440 million a year to entrepreneurs and grifters without oversight.

Ravitch is president of the Network for Public Education, a nonprofit nonpartisan organization that exists to support and improve public schools. An education historian recently retired from New York University, she served as assistant secretary of education for research under U.S. Secretary of Education Lamar Alexander.

Say this for Jeb Bush: he is not dissuaded by failure. No matter how many studies show the failure of vouchers, he doesn’t care. No matter how many studies show that charter schools do not get better results than public schools, he doesn’t care. No matter how many grifters have drained millions through privatization of schools, he doesn’t care. No matter how little evidence he has for any of his proposals, he still pushes them.

His ideas are old and tired and incoherent. But count on him to package them as fresh and innovative, which they are not.

He is the male counterpart to Betsy DeVos.

He just cares about destroying public schools.

He wrote recently in The Miami Herald:

Last month marked two years since the pandemic swept across the country, causing the largest disruption to our nation’s education system in modern history. But at last, this spring brings an academic revival of sorts. Schools are remaining open, mask mandates are disappearing and plexiglass dividers between students in their classrooms are coming down.

In the rush to return to normal, we owe it to our nation’s children to emerge from this pandemic transformed, not by going backwards, but ready to forge a better future for them with all we’ve learned.

Our starting point is challenging. Prior to the pandemic, America’s public schools were struggling to serve the needs of students, and since the pandemic, a study by McKinsey found students have fallen months behind as a result of school closures and disruptions. There were severe impacts on student mental health, too. Pew Charitable Trusts found students are reporting significantly increased levels of grief, anxiety and depression.

It’s also no surprise that there’s a growing distrust in public education. A survey by Ipsos found trust in teachers declined during the pandemic, and there’s been a subsequent decrease in the number of students enrolling in public school.

Those are serious setbacks, but there are reasons for optimism. The pandemic put a spotlight on a myriad of possibilities for the future of education. Notably, it illustrated a desperate need by families for a broadened ecosystem of options for their children, with funding flexibility to create more equity in choice. And it elevated the power of parents to blaze new educational pathways for their children.

The Associated Press recently reported that homeschooling remains a popular choice for parents, despite schools reopening. And, private schools and public charter schools have witnessed increased enrollment. But choice, in and of itself, isn’t enough. Policymakers must continue to seek new ways to unbundle education systems, transforming old approaches into new and better learning options.

In Indiana, lawmakers, led by House Speaker Todd Huston, took the first step toward creating the nation’s first “parent-teacher compact” law. This innovative policy would allow parents to directly hire teachers. Educators would continue to be paid by the state and receive their health and retirement benefits, but this policy would enable parents and educators to enter into a peer-to-peer relationship to benefit individual students, without the hurdle of a district middleman. This individualized approach to education would give educators more freedom, families more flexibility and individual students the personalized experience they may need.

As we unbundle education, we need to reimagine all aspects of how education is delivered to students. One approach is enacting new part-time enrollment policies. Right now, students are defined by the school in which they’re enrolled.

Lawmakers can improve the education experience by allowing students to have more flexibility, whereby a student can enroll in their local public school and easily access a portion of their education funding to also enroll part-time in a private school, with an online provider, or engage in another learning experience that benefits the child’s education.

Another approach that complements unbundling is rethinking education transportation options. Last year, Gov. Doug Ducey awarded $18 million in grants to modernize Arizona’s K-12 transportation system, including direct-to-family grants to help close transportation gaps. In Oklahoma this year, Gov. Kevin Stitt proposed changing Oklahoma’s school transportation funding formula to expand how public school buses can serve students. And Florida’s Legislature recently passed legislation to create a new $15 million transportation grant program that encourages districts to create innovate approaches to school transportation, including carpooling and ride sharing apps, for both school-of-choice families and traditional school students.

Those are just a few examples, and we must continually look for more ways to unbundle and reimagine education. The pandemic saw an explosion of families, in all communities and from all demographics, embrace micro schools, homeschooling and customized learning pods. Rather than trying to limit these families, we should give them access to direct funds to further personalize and benefit their child’s out-of-school learning experience.

That’s what Gov. Brad Little has championed in Idaho. In response to school closures in 2020, Little used federal emergency COVID relief funds to provide direct grants to families to support students who were no longer learning in school. And this year, Little signed the Empowering Parents Grant Program into law, giving qualifying families up to $3,000 to use for tutoring, educational material, digital devices or internet connectivity….

Transforming our nation’s education system and ensuring students receive the individualized experience to unlock potential and lifelong success require continual forward momentum, especially after two years of disruptions. We have to keep moving, keep reimagining, keep transforming. This commitment to excellence is a point of pride for Florida.

Last year, Florida’s Legislature passed some of the most significant improvements and expansions to the state’s school-choice programs. And this year, lawmakers strengthened the charter school law, expanded the Florida Empowerment scholarship program, created a new financial literacy requirement for high school graduates and ensured parents are better informed of their child’s progress through online diagnostic progress monitoring and end-of-year summative tests.

This Pied Piper plays a tune meant to deceive. Ignore him.

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

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Kris Nordstrom of the NC Policy Watch notes the loud whining by charter advocates who are outraged by the common sense reforms proposed b6 the Biden administration’s Department of Education. They are whining, writes Nordstrom, because they are guilty of every malpractice that the reforms aim to cure.

Nordstrom begins:

Advocates for charter schools have long justified the existence of charters by claiming they serve as laboratories of innovation for traditional schools. They have claimed that operational flexibility and exemption from regulation allows them to operate more efficiently than traditional public schools. And they have claimed that they are not only willing – but better suited – to serve students from families with low incomes.

These premises have been disproven over the course of North Carolina’s nearly 30-year-long experiment with charter schools. There are no examples of charter school innovations that have offered new approaches for traditional schools (after all, traditional schools can’t follow the example of “successful” charters that garner high test scores by pushing out struggling students). Nor have charters delivered efficiency gains. Charters spend substantially more on administration than their traditional school counterparts. Most North Carolina charters outspend their neighboring traditional schools while serving a more advantaged student population and delivering weaker academic outcomes. Meanwhile, North Carolina charters continue to exacerbate racial segregation and raise costs for traditional inclusive public schools.

Charter advocates have long disputed the overwhelming evidence of their ineffectiveness. But now, they are making the case themselves.

At issue are recent changes to the terms of the federal Charter School Program (CSP) grant programs. The CSP provides money to states to run grant programs, “to open and prepare for the operation of new charter schools and to replicate and expand high-quality charter schools.” North Carolina was awarded these federal grant funds specifically to support charters, “focused on meeting the needs of educationally disadvantaged students.”

Unfortunately, the program run by North Carolina’s Department of Public Instruction has failed to meet these goals. Much of the federal funding has been awarded to schools with a history of serving as white flight charter schools and that enroll substantially fewer students from families with low incomes than nearby inclusive public schools. Incredibly, Torchlight Academy was awarded a $500,000 grant in 2020. Just two years later, this school has had its charter revoked for rampant corruption and poor student results

Are high-quality charters unwilling to operate if they can no longer divert as much money as possible into the pockets of corporations? Are charters unwilling to serve as laboratories for innovation that work with traditional public schools to expand promising practices? Are charters unable to craft community impact statements because they are unable to demonstrate community benefits? Are they unwilling to commit to greater school integration efforts because they’d rather effectively pick and choose who their students are?

By opposing the CSP rule changes, charter supporters are implicitly answering the above questions in the affirmative. Their protests affirm the arguments made by charter critics that such schools are overly focused on profit-hoarding, unable to serve as collaborative partners in developing and scaling instructional innovation, exacerbate budget challenges, and contribute to segregation.

The proposed CSP rule changes do not in any way undermine charter schools. They simply ask charters seeking supplemental federal funds to try to live up to the promises made by charter advocates. The protests of charter advocates indicate that – as many of us have been arguing for years – charter schools are largely unable to live up to these promises.

And if charters are – as they now admit – unable to meet these promises, then policymakers should question not just whether they deserve supplemental federal funding through the CSP…but whether such schools are deserving of public funding at all.

Congresswoman Rosa DeLauro of Connecticut is one of the most important members of the U.S. House of Representatives. She is chair of the House Appropriations Committee.

She sent the following letter to Education Secretary Miguel Cardona, endorsing the Department’s proposed reform of the federal Charter School Program and criticizing the charter lobby for spreading lies:

Dear Secretary Cardona,

In July 2021, House Democrats passed the fiscal year 2022 Labor, Health and Human Services, Education, and Related Agencies appropriations bill which included a landmark provision prohibiting federal funding to charter schools run by for-profit education management organizations (EMOs). Under these management relationships, charters accept federal funds only to have their schools run by low-quality, for-profit companies rife with conflicts of interest. The provision was designed to safeguard our critical federal investments in education and protect us all from the financial risks posed by for-profit charter schools.

Predictably, the for-profit charter EMOs were not pleased with this legislative development. In response, their national trade organization led a well-funded misinformation campaign incorrectly claiming that the provision would prevent federal funds from going to any charter school that uses a contractor for any discrete service. These unserious efforts and false claims were advanced by their national trade organization to shift outrage and attention away from the risky, low-quality for-profit charter schools they represent.

Their national trade organization is employing similar tactics through the exaggerations and misrepresentations they are spreading in opposition to the Department’s reasonable proposed regulations for the fiscal year 2022 Charter Schools Program (CSP) competitions. Rather than accommodate the bad faith efforts of a trade organization that advocates for for-profit EMOs, the Department should move forward with its strong proposals to improve accountability and transparency for the CSP program.

For-profit EMOs

The Department has long recognized the particular risks posed by for-profit EMOs. In response to a 2016 audit, the Department conceded to the Inspector General, “ED is well aware of the challenges and risks posed by CMOs and, in particular, EMOs, that enter into contracts to manage the day-to-day operations of charter schools that receive Federal funds. We recognize that the proliferation of charter schools with these relationships has introduced potential risks with respect to conflicts of interest, related-party transactions, and fiscal accountability, particularly in regard to the use of federal funds.”

Such EMO-related conflicts are on clear display in the example of AmeriSchools in Arizona. Four AmeriSchools charter schools were chartered by Reginald Barr. His late wife Sandra was the president of the schools’ board. The schools pay the EMO Edventure to manage all activities and programs; Sixty Five Plus to lease their building; and One Employment Plus to pay school employee salaries. All three for-profit companies are owned by the Barrs. Ownership of One Employment Plus is also shared by the Barrs’ daughter, Deborah LeBlanc, who also sits on the schools’ board.

In addition, for-profit charter schools, including those run by for-profit EMOs, deliver concerning outcomes for students. A 2017 report from Stanford University’s Center for Research on Education Outcomes compared student performance at non-profit charters, for-profit charters, and traditional public schools and found that for-profit charters perform worse in reading, and significantly worse in math, than non-profit charters. In addition, the report found that for-profit charters perform worse in math than traditional public schools.

In light of these serious concerns, I am pleased that the proposed rule includes a clear requirement that a charter school receiving CSP funding cannot contract with a for-profit EMO; however, when considering the complicated web of for-profit conflicts in the AmeriSchools example, I recommend a modest edit to the proposed language:

  1. 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 entitiesexercise(s) full or substantial administrative control over the charter school and, thereby, the CSP project.

Community Impact Analysis

The Department’s proposed requirement for CSP recipients to provide a community impact analysis will generate essential information to assist the Department’s grantmaking decisions. The language, which requires “descriptions of the community support and unmet demand for the charter school, including any over-enrollment of existing public schools or other information that demonstrates demand for the charter school…,” will generate helpful information for the Department and the public. I strongly urge you to retain this specific language in the final rule.

In addition, the Department’s proposed language aimed at determining whether a proposed charter school will increase racial or socio-economic segregation or isolation in the schools that the students currently attend is vitally important. I strongly urge the Department to retain this language to guarantee that CSP grants do not inadvertently exacerbate inequities in our public education system.

Charter School and Traditional Public School or District Collaborations That Benefit Students and Families

I strongly agree with the Department’s goal to support more CSP grants that strengthen both charter schools as well as the local public school system by establishing a new competitive preference priority (CPP). I am encouraged by the potential for CSP grants to support charters and districts through collaborations around curricula, teacher and school leader development, transportation, and other areas of shared interest. For this vision of collaboration to succeed within CSP, I urge the Department to include this priority as a CPP in the fiscal year 2022 CMO and Developer Grants competitions.

I applaud the Department for its efforts to introduce greater accountability and transparency in the CSP program. Further, I urge the Department to disregard bad faith arguments from self-interested organizations that misrepresent these important proposals. Thank you for your attention to this matter.

Sincerely,

Rosa L. DeLauro

Chair

House Appropriations Committee

# # #

delauro.house.gov

The U.S. Department of Education has extended the deadline for public comments about proposed regulations for the federal Charter Schools Program. This program started in 1995 with $6 million, when there were very few charter schools. Now there are more than 7,000 charters, many of them operated by for-profit corporations. The new regulations would ban federal funding to for-profit school operators and require new charters to do an impact analysis, showing the need for a new charter. Contrary to the charter industry lobbyists, no existing charter would be affected by these regulations, only new charters that seek federal funding.

Carol Burris, executive director of the Network for Public Education, asks for your support:

The US DOE has extended the comment period on their proposed tough Charter Schools Regulations until April 18.

If you have not done so, take one more easy action to stop for-profit-run charters from getting federal Charter Schools Program funds.

Click HERE and send your comment to the U.S. Department of Education via the National Education Association. The NEA has made it easy to do!

If you have sent that quick message, now personalize a longer, more thoughtful commentand submit it through the Department’s portal. Here is a sample you can cut and paste.

I support the proposed rule that schools run by for-profits should not get grants. Charter schools that are run in part or whole to create profit should not benefit from federal expansion or start-up funds.

The relationship between a for-profit management organization is quite different from the relationship between our district vendors who provide a single service. A public 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 their for-profit operator, they find it impossible to do without destroying the schools in the process. In addition, the spending of the for-profit is hidden from public inspection and is not subject to FOIA requests.

I fully support the proposed regulation 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.” The reporting of needs based on enrollment patterns as well as the impact on local desegregation efforts is most welcome.

In the past, one of the most segregated charter chains in the country received CSP grants. Arizona’s BASIS schools, do not provide free or reduced-priced lunch nor transportation. BASIS expects parents to make donations to subsidize teacher salaries. In a state where 52% of all students are eligible for free or reduced-price lunch, the percentage in BASIS schools is only 1%. While 13% of Arizona’s public school students are students with disabilities, the percentage in BASIS schools is 3%. Latinx and Black students are dramatically underrepresented in the schools in this chain. Eight Arizona BASIS charter schools were recipients of CSP sub-grants between 2010-2017 receiving over $5 million dollars.

The inclusion of an impact statement will help reviewers make the best decisions regarding which schools should get awards. The impact analysis requirements should 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 all students. Too often, the neediest students are left behind in our districts, while funding leaves the schools along with students who require fewer services.

I fully support priorities one and two. They will help us get back to the original purpose of charter schools—innovative places run by teachers and families in cooperation with our local schools. I do not want my tax dollars to go to create new schools for the benefit of the big EMO and CMO chains.

Submit your comment by cutting and pasting it here.

And then keep sending those tweets by clicking here.

Thanks for all you do.


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The National Education Association issued an appeal for educators and other concerned citizens: Raise your voice to stop the federal funding of corporate charter schools!

Now is your chance to be heard.

NEA writes:

Email the U.S. Department of Education to advocate for the end of corporate charter schools and support accountability and transparency for all schools taking our tax dollars.

  • All schools that receive public funds should be held to the same excellence, equity, and transparency standards as district-run public schools. The original intent of charter schools was to provide a space for educators to be more flexible and innovative.

Instead, big business boards and billionaires turned it into a money-making machine that benefits only themselves. The growth of these corporate charters has undermined local public schools and communities—taking taxpayer money with no oversight or any overall increase in student learning and growth.

The U.S. Department of Education is taking these very real issues seriously and is proposing an end to the support of corporate charter schools. We applaud this effort, but there will be loud voices paid by the billionaires running these schools to speak out against this positive step.

That’s why we need your voice. You can speak out in support of the Department of Education’s proposal to ban for-profit schools from applying for grants and receiving funds to open charters, and demand that charter schools be held to the same standards as traditional public schools.

You may use the sample message provided, but we encourage you to share your personal stories and examples. Tell the U.S. Department of Education how important it is to you personally that for-profit charter schools be held to the same accountability and transparency rules as public schools.

What is the federal comment period and what can I do to help?

The Department of Education is seeking comments from the public about the proposed standards. When you send your letter through this form, it will be added to the federal register as part of the official request for comments and be made public. Written comments on this final rule should be received on or before April 13, 2022.

You can help by writing a personalized letter detailing stories and examples. The more personal the better!

Open the link to see the sample letter and instructions about contacting the Department of Education.

Billy Townsend remembers Florida Governor Ron DeSantis’s servile devotion to Trump while he was president. Now DeSantis is positioning himself to run for President against the old fool in 2024. But Ron D. has a serious liability: his continued friendship with a corrupt lobbyist for the charter industry.

DeSantis…banished Ralph Arza in 2018 from the sight of his campaign with much public dudgeon, for a pretty good reason: Ralph is a convicted criminal witness tamperer kicked out of the Legislature for making drunken, threatening, racial-slur filled phone calls. Ralph also happens to be director of governmental affairs for the Florida Charter School Alliance (FCSA) and chief political hit man for the Florida charter school industry…

Since DeSantis appointed Richard Corcoran, Ralph has been acting as the de facto second in command at the collapsing DeSantis Florida Department of Education, which has been run by disgraced, outgoing Florida Education Commissioner Richard Corcoran. Corcoran once told me face-to-face he considers Ralph a “friend.”

Ralph is also a crucial figure in the ongoing DoE/Jefferson/MGT consultant bid-rigging scandal. Four of Ralph’s relatives worked for the Academica-owned charter school that Sen. Manny Diaz and Richard Corcoran forced on Jefferson County before it quit. And Ralph was present for no good reason during a potentially corrupt official meeting last fall, first reported by the Tampa Bay Times/Miami Herald. Full rundown of Ralph’s still not fully explained role in it here.