Archives for category: For-Profit

K12 Inc., widely criticized for low-quality online K-12 education, has decided to pivot its offerings to a new market: teaching job skills online.

https://www.usnews.com/news/education-news/articles/2018-12-10/controversial-virtual-school-operator-k12-pivots-to-job-training

Let’s hope they stop sucking dollars out of public school budgets.

The New York Times published this story about Juan Sanchez, who grew up in poverty but got education degrees and eventually became the owner of a private business that makes millions by incarcerating migrant children, not so different from himself. He has built an empire. His salary last year was $1.5 million. His wife was paid $500,000.

Juan Sanchez grew up along the Mexican border in a two-bedroom house so crowded with children that he didn’t have a bed. But he fought his way to another life. He earned three degrees, including a doctorate in education from Harvard, before starting a nonprofit in his Texas hometown.

Mr. Sanchez has built an empire on the back of a crisis. His organization, Southwest Key Programs, now houses more migrant children than any other in the nation. Casting himself as a social-justice warrior, he calls himself El Presidente, a title inscribed outside his office and on the government contracts that helped make him rich.

Southwest Key has collected $1.7 billion in federal grants in the past decade, including $626 million in the past year alone. But as it has grown, tripling its revenue in three years, the organization has left a record of sloppy management and possible financial improprieties, according to dozens of interviews and an examination of documents. It has stockpiled tens of millions of taxpayer dollars with little government oversight and possibly engaged in self-dealing with top executives.

Showing the ambition that brought him from the barrio to the Ivy League, Mr. Sanchez seized the chance to expand his nonprofit when thousands more unaccompanied children began crossing the border during the Obama era. When the Trump administration needed to house migrant children it had separated from their parents, Mr. Sanchez took them in.

As immigration intensifies as a flash point of the Trump presidency, with tear gas being fired at a migrant caravan and the price tag for separating families continuing to rise, Mr. Sanchez is central to the administration’s plans. Southwest Key can now house up to 5,000 children in its 24 shelters, including a converted Walmart Supercenter that has drawn criticism as a warehouse for youths. The system is nearing a breaking point, with a record 14,000 minors at about 100 sites — a human crisis, but also a moneymaking opportunity.

Though Southwest Key is, on paper, a charity, no one has benefited more than Mr. Sanchez, now 71. Serving as chief executive, he was paid $1.5 million last year — more than twice what his counterpart at the far larger

Southwest Key has created a web of for-profit companies — construction, maintenance, food services and even a florist — that has funneled money back to the charity through high management fees and helps it circumvent government limits on executive pay.

The organization, sitting on $61 million in cash as of last fall, has lent millions of dollars to real estate developers, acting more like a bank than a traditional charity. It has opted to rent shelters rather than buy them, an unusual practice that has proved lucrative for shelter owners — who include Mr. Sanchez and the charity’s chief financial officer.

Marcus Owens, the former head of tax-exempt organizations for the Internal Revenue Service under both Republican and Democratic administrations, reviewed Southwest Key’s tax returns for The New York Times. Regulators, he said, seemed to be “asleep at the switch.” Describing the financial dealings of Mr. Sanchez and his colleagues, he said, “I think the word is ‘profiteering.’”

Mr. Sanchez defended his charity. It had to move fast at times, he said in an interview. But every act, he added, has been to help children.

“There are all these kids, they’re at the border, they’re in detention,” Mr. Sanchez said. “How do we get this thing done as quickly as we can so we can start serving those kids?”

Jeff Eller, a spokesman for Southwest Key, said on Tuesday that the charity was closely examining its management practices after questioning from The Times, and that there was “general acceptance” that the charity had made mistakes.

“Could we have done things better? Yeah. And should have? Yeah,” Mr. Eller said. “But there wasn’t a desire to game the system.”

Because of the substantial growth of migrant shelters, the federal government hired an accounting firm this year to review shelter grant recipients, said Mark Weber, a spokesman for the Department of Health and Human Services. He added that the department’s Office of Refugee Resettlement, which oversees migrant shelters, had also created a new division to monitor shelters’ spending.

Separately, the Federal Bureau of Investigation is looking into another shelter provider, International Educational Services, for possible misuse of federal money, according to two people informed of the inquiry. The nonprofit’s founder, Ruben Gallegos, said he had no comment on the investigation.

Mr. Gallegos’s charity — which Mr. Sanchez helped create but cut ties with years ago — lost its federal contracts in February for renting shelters owned by charity officials and paying those officials well above the government salary cap from migrant-shelter grants.

Last year, Southwest Key paid eight people more than the federal salary cap of $187,000. In addition to Mr. Sanchez, they included his wife, Jennifer Sanchez, who earned $500,000 as a vice president, and Melody Chung, the chief financial officer, who was paid $1 million.

Robert Carey, a director of the Office of Refugee Resettlement under the Obama administration, said he found the salaries “appalling.” He acknowledged that his office was focused on providing adequate care for the children and had not examined Southwest Key’s finances. “When you think of how those funds could be used and should be used,” he said, “it doesn’t sit well.”

Mr. Eller said the charity had not done anything improper, adding that the federal government had prohibited the organization from discussing executive pay.

In recent months, Southwest Key has come under scrutiny after a series of abuse allegations.

In July, a worker at a Phoenix shelter was accused of molesting a teenage girl. In September, an H.I.V.-positive worker was convicted of sexually abusing seven teenage boys at another Arizona shelter. Southwest Key, which has relied on temporary workers to staff facilities as it has ratcheted up operations, then blew a deadline to submit proof of employees’ background checks in Arizona. (Mr. Sanchez called the missed deadline a “very small, minor thing.”)

Shortly after, the federal government temporarily shuttered a third Arizona shelter, in Youngtown, after Southwest Key staff members were accused of physically abusing three children. In a recent agreement with Arizona officials, Southwest Key was fined $73,000 and agreed to close that facility and another troubled shelter in Phoenix. Mr. Weber, the government spokesman, said there were “numerous red flags and licensure problems” with the two shelters.

“He likes to take chances,” Paula Gomez, a friend of Mr. Sanchez’s since childhood, said of him. “Juan’s that way — you can have a couple T’s that aren’t crossed and I’s that aren’t dotted.”
Mr. Sanchez wore a serape rather than a cap and gown when he graduated from Harvard with a doctorate in education. “It was just to make a statement that Latinos were here,” he said.

Mr. Sanchez wore a serape rather than a cap and gown when he graduated from Harvard with a doctorate in education. “It was just to make a statement that Latinos were here,” he said.

For much of his life, Mr. Sanchez has seen himself as an advocate for the vulnerable, but he also is an ambitious networker who sought to fit in with the powerful.

He met his first wife, Ellen, planning a protest against nonunion produce pickers; at the same time, he took up golf. His office features a portrait of Che Guevara, and his Harvard diploma. At his graduation ceremony, he wore a serape instead of a cap and gown.

“It was just to make a statement that Latinos were here,” he said.

Mr. Sanchez was ultimately accepted into influential circles: He joined the board of the nation’s largest Hispanic advocacy group, now known as UnidosUS. The Mexican government gave him its highest humanitarian award. He rounded up politicians to speak at Southwest Key celebrations and cultivated ties to government agencies.

This is not the complete story. It is an excerpt.

The St.Augustine Record knows that the choice of privatizer Richard Corcoran as Commissioner of Education is disastrous for public schools.

He is totally unqualified and he hates public schools.

To be blunt, as the editorial is, he is a hack.

Let’s not beat around the political bush: Putting former House Speaker Richard Corcoran in charge of Florida education is like hiring Genghis Kahn to head the state Department of Corrections.

The charter school fox is heading for the Department of Education hen house and, for public schooling, that’s finger-lickin’ bad.

Corcoran is a coercer, a brawler and politician who rewards fealty while marking opponents for payback. Those who know him would say he’d be flattered by the description.

He came into politics through the back door. He ran for the House in 1998 in a district outside his own. He was dubbed a “carpetbagger” by the hometown newspaper. He lost.

But he became a rising star in the party machinery, and eventually became what many describe as a political “hitman” for Marco Rubio’s bid to gain House leadership in 2006. He was rewarded by being hired as Rubio’s chief of staff at $175,000 yearly salary — considerably more than his boss, who made $29,697 a year. The governor that year was paid around $130,000.

If this gives you pause in terms of state political priorities, go to the head of the class.

In 2007, Corcoran again ran for special election, this time in the Senate. He was again portrayed as a carpetbagger — and lost.

The third time was a charm, when Corcoran won a House seat in 2010.

Governor-elect Ron DeSantis has made his pick known. But, on paper, the decision is up to the board of education — all GOP appointees, who probably like their current status.

DeSantis has made no bones about wanting to see public education dismantled, though you heard little of that during the governor campaign.

For his part, Corcoran spearheaded the state’s ongoing effort at funding charter schools with taxpayer money. And, where that was not possible, bankrolling public schools with various funding schemes, including paying for any child who deems himself “bullied” in public school to attend a private school tuition-free — and where, we must assume, bullies do not exist.

Corcoran was also the weight behind efforts this year to dismantle elected school boards and put the oversight of schools under direct legislative control.

In a twist of irony, Corcoran included this line is his speech after being named Speaker: “The enemy is us. … Left to our own devices, all too often, we’ll choose self-interest.”

His wife ran a charter school at the time and has since sought to expand to other areas. But his dark political history aside, might we not expect to have a person with some history in education — whether public or charter school — to lead an agency tasked with educating 3 million kids?

DeSantis has given Education Commissioner Pam Stewart her walking papers, though she has a year left on her contract. She takes with her 40-plus years of experience in education, including guidance counselor, teacher and principal at both elementary and high school levels. She was Deputy Chancellor for Educator Quality at the Department of Education and Deputy Superintendent for Academic Services here in St. Johns County, just prior to taking over as Education Commissioner — following a series of embarrassments by political appointees to that post.

She has been controversial. But juggling the hot potato tossed to her called Common Core was an unenviable trick to pull off.

Now a hack takes her place. And with one swift move, the Legislature accomplishes Job No. 1. That’s putting Florida’s $20.4 billion education budget out to bid in the private sector. That’s a frightening amount of political capital to be spread around to those who decide who gets charter school contracts and where those schools will be.

There ought to be a law…

The Sun-Sentinel of Florida explains why Richard Corcoran is a disastrous choice for Florida’s public schools as Commissioner of Education. He is unqualified. He has no education experience. He is hostile to public schools and their teachers. He has done everything he could think of to shift local tax monies from public schools to charter schools. During his campaign for governor, Ron DeSantis never visited a public school, although 90% of Florida’s children attend them.

Put succinctly: “Richard Corcoran for state education commissioner? Sure. Why not make Tallahassee’s hostility to public education even more apparent?…

In Corcoran, DeSantis has an education soulmate. Last year, Corcoran leveraged his power as speaker to push through legislation that for the first time gave charter schools — which use public money but may be privately operated — some of the property tax revenue that school districts use for construction and maintenance. When Florida allowed charter schools in the mid-1990s, operators said they never would need such money.

“House Bill 7069, which legislators hardly got to read, did much more. It gave charter companies $200 million to build “schools of hope” near low-performing public schools but with no guarantee that the charters would take all the students. The bill made it harder for school districts to use federal money designed to help those same struggling students.

“Former Palm Beach County Superintendent Robert Avossa called Corcoran’s creation “the single largest piece of legislation to dismantle public education that I’ve ever seen.” True, but HB 7069 simply extended the attack on public education by Republicans since they took control in Tallahassee two decades ago.”

Elections have consequences. Floridians who value their public schools will have to fight for them, or see more of their tax dollars diverted to for-profit charter entrepreneurs and religious schools that teach creationism and racism.

Angie Sullivan teaches in a low-income elementary school in Carson County, Nevada. She often writes every legislator to expose the persistent underfunding of the schools.


Remember when DeVos lied in front of the whole nation about the Nevada K12 Charter? Hardly anyone graduates – yet she claimed that charter had a 100% graduation rate. Here are the Nevada online charters again – grabbing cash and suing to keep their cash cow. Hard earned tax payer money going to whom for what?

Apparently they had $2 million in lobby money. Enough to grease all sorts of folks.

Nevada charter authority board says executive kept them in dark

I am sure there was more money than that spread around.

One for-profit online made $6500 x 3000 students = $19 million. 3000 enrolled but only 200 test? That is not “choice”. It appears no one is actually participating. Are we paying for education that is non-existent?

It annoys me that folks blame Patrick Gavin. Gavin is dirty. He is part of this – but only one part. No one has been accountable. No one has provided data. No one has asked hard questions.

Do you see all these names in this article?

Bipartisan dirty hands.

All these folks including Canavero need to be asked serious questions about this. And they need to reveal any money that has ended up in their personal bank accounts. Who has lobbied them?

All legislators running a for-profit charter or sitting on for-profit charter boards – we see you too. Unethically voting for yourself and your corporations.

I give credit to Guinasso for trying to clean up this $350 million mess. Everyone on all sides and every level is dirty. That job cannot be fun. So many folks involved in this garbage.

The Charter Authority needs legal teeth. It also needs a board willing to shut terrible charters down if they are floundering in bankruptcy and fraud. If unaccountable charters are not publishing data – they need to be closed. If failing charters are not graduating, they need to be closed. When for-profit charter corporations start suing the state, they need to be immediately closed.

Someone has to stand up to these billion dollar for-profit corporate bullies.

How is one person supposed to keep a billion charter corporation from scamming Nevada tax payers?

Folks screaming for “choice”.

This is Nevada “choice”?

Money changing hands and no one being educated?

That is not choice – that is a scam.

This is dirty dirty dirty. It is bipartisan dirty.

Canavero? Canavero? Canavero? This has your name all over it. Where are you? Busy arbitrarily attacking public schools to make way for . . . charters? There is something disgusting about that.

Accountability.

Folks seem to only like that word – when it is not applied to THEM.

Senator Woodhouse? Senator Denis? Senator Hammond? Where have you been?

30 years of looking the other way. Lots of folks got used to ignoring that $350 million was being severely wasted and abused. Were they paid well?

Former Majority Leader and newly elected Attorney General Aaron Ford – you advocated for this trash. Who donated to your campaigns? What are you going to do about it now?

God help us. The corruption is thick.

Nevada Charters are NOT a remedy. No one should want to turn a public school into this. No one should think this is fine.

This is garbage and a huge horrific wicked web. 🕷

Everyone needs to be accountable.

And all hypocrites – stop pointing your finger at CCSD public school teachers. We are actually the only ones getting real education work done. We get attacked and removed from students we serve and love. You threaten our communities with charter reform. Why? Which charter is an example of excellence? I see charter segregation by money, race and religion.

While these charter scammers get paid millions to educate no one?

This is bad leadership. And total mismanagement.

Yep accountability.

We need some of accountbility pointed at the right people. I see them crawling all around. 🕷🕷🕷

Maybe Patrick Gavin should tell us all about it.

The Teacher,

I previously reported that Arizona legislator Eddie Farnsworth was making a bundle by selling his for-profit charter chain to a nonprofit charter chain for millions of dollars, and that he had selected the members of the board of the new nonprofit and would get a contract from that board to manage the charter schools. All in all, a triumph of self-dealing.

Now new details have emerged about what a sweet deal this is for Mr. Farnsworth.

An Arizona legislator selling his state-funded charter school business will receive money from consulting work, rent and a loan to the chain beyond pocketing $13.9 million from the $56.9 million transaction itself.

The Arizona Republic reports that Gilbert Republican Rep. Eddie Farnsworth will make $78,000 of interest by loaning the Benjamin Franklin school chain $2.8 million for operating cash and be paid $79,600 in rent and an unspecified amount for consulting work.

Farnsworth declined to discuss the deal’s financial particulars but said he’s run Benjamin Franklin for 24 years and that he’s entitled to benefit from the transaction.

State Superintendent of Public Instruction Kathy Hoffman says Farnsworth is legally pocketing the money but that it’s not right.

A nonprofit whose directors Farnsworth recruited is acquiring Benjamin Franklin.

What’s new? Well, the new State Superintendent of Public Instruction was just elected, and she thinks this whole deal stinks. The previous state superintendent, Republican Diane Douglas, didn’t seem to care, didn’t raise any objection.

Kathy Hoffman, an educator, was swept into office with the blue mini-wave in Arizona a few weeks ago.

No thanks to the do-Nothing U.S. Department of Education, which sides with for-Profit, predatory “colleges,” you know, the market.

For Immediate Release
December 6, 2018
CRL Statement on Closure of Education Corp. of America Campuses

WASHINGTON, D.C. – The Birmingham, Alabama, based for-profit college owner Education Corporation of America (ECA) has announced that it is closing its campuses across the country after the Accrediting Council for Independent Colleges and Schools (ACICS) suspended their accreditation. The closure of ECA’s campuses include those operating as Brightwood College, Brightwood Career Institute, Ecotech Institute, Golf Academy of America, and Virginia College. More than 19,000 students were enrolled at ECA owned colleges.

Center for Responsible Lending (CRL) Senior Policy Counsel Whitney Barkley-Denney released the following statement:

“ECA’s closure is long overdue. Their campuses, including Virginia College, has a long record of providing substandard education at exorbitant prices. For years, CRL and other education advocates have sounded the alarm to federal and state governments about the risks and harms associated with predatory, underperforming for-profit colleges. Students who were lured to an ECA campus should have their loans discharged as they decide their next education path—being straddled with crippling student loan debt after their college failed them shouldn’t be a burden that they have to carry.”

###

For more information or to schedule an interview with a CRL spokesperson please email: ricardo.quinto@responsible

Swedish scholar German Bender reports on the negative results of market-driven reforms in his country.

Choice has produced worse outcomes and encouraged segregation.

He demonstrates how choice has increased inequality and concludes:

It is clear that the Swedish school system, once known for its egalitarian ambition and high degree of equality in outcomes, now effectively sorts children by ethnic and socio-economic background. And, although the escalating violence in many Swedish suburbs cannot directly be connected to school segregation, it is very likely that segregation is a contributing factor. Our report summarizes a large body of research on the negative effects that segregation has on a wide range of social factors, such as educational and occupational choices, income and unemployment, health and criminality, and social attitudes towards other groups. Most of these outcomes have a considerable impact both on an individual and a societal level.

The results make it painfully clear that the Swedish school system effectively works against the very idea that schools should level the playing field for students from all backgrounds and give every child equal opportunity. Even after the rise of right-wing populism in Sweden, our established political parties have proven themselves unable, or unwilling, to rein in the highly unregulated Swedish school market.

Governments seeking inspiration for school reforms should look elsewhere – unless they are looking for a cautionary tale.

Sue Legg, who chaired the education division of the Florida League of Women Voters, describes the leadership shake up in the state.

The new chair of the Florida House Education Committee, as I reported yesterday, is a woman who was home-schooled and dropped out of college. She has no education experience.

The likely state commissioner is Richard Corcoran, whose wife runs a charter school.

Legg reports that the fabulously wealthy for-profit charter chain Academica has scored a big win.

She writes:

“Manny Diaz will head the Senate Education Policy committee. Vice Chair is Senator Bill Montford D Tallahassee. Diaz was appointed in 2013 by Academica to head Doral College. This is the college that the Miami Herald skewered. It had no students and was created to provide online dual enrollment credit taught by Academica high school teachers. Remember that former Representative Erik Fresen, the brother-in-law of Academica’s CEO and a consultant to Academica, was convicted of tax evasion in 2018 for the eight years he served in the Florida House. We really do not need to have Academica lead educational policy for the state of Florida.”

She further notes that with DeSantis as governor and a choice-friendly State Board That is bostile to the public schools that enroll most students, Florida will follow the Jeb Bush-ALEC party line of privatization.

This is an agenda guaranteed to keep Florida anchored in mediocrity, perhaps falling like Michigan to the bottom 10 on NAEP.

Florida casts a vote for mediocrity!

The new chair of the Florida House Education Committee is Jennifer Sullivan, a fervent supporter of vouchers, charters, and home schooling.
She herself was home-schooled. She apparently attended a private Christian college and dropped out without a degree.

She has no experience in education.

Florida is not a model for anything to do with education.

Under Jeb Bush’s leadership and with millions of dollars in donations from the DeVos family and the Walton family, the state has plunged into privatization, with large amounts of money diverted from public schools to support for-profit charters (half the charters in the state are “for-profit”) and vouchers for religious schools (even though the State Constitution forbids sending public money to religious schools and the voters rejected doing so).

On NAEP, Florida fourth-graders do relatively well only because the state holds back low-performing third graders, thus falsely inflating fourth grade scores.

On NAEP for eighth grade, Florida shows its true colors:

In eighth grade math, Florida is below the national average, scoring #35 out of 50 states plus DC and the Department of Defense schools.

In eighth grade reading, Florida scores at the national average. Nothing to brag about.

Florida is a model of mediocrity.

And with education policy now controlled by a home-schooler, the race to the bottom will continue.