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Questions for Ann O’Leary: Why Are You Protecting California’s Corrupt, Wasteful Charter Industry?

By dianeravitch
April 16, 2019 //
39

Ann O’Leary is Chief of Staff to California Governor Gavin Newsom. Previously she was education advisor to Presidential candidate Hillary Clinton. She is a lawyer and a very accomplished person, with a long history in Democratic politics. She was leading the Clinton transition team right before the election of 2016. For several years, she was a senior fellow at the Center for American Progress, which strongly defends charter schools and Obama’s failed Race to the Top program.

During the 2016 campaign, when it was clear Hillary would be the nominee, Carol Burris of the Network for Public Education and I went to see O’Leary at the Clinton headquarters in Brooklyn. We tried to persuade her that Hillary should oppose charters. After all, school choice is a Republican priority. It is supported by the Waltons, the Koch brothers, ALEC, the DeVos family, and every Red State Governor. Democrats should support public schools, we argued, not privatization. We failed. We went back again, after the convention. O’Leary was unmovable. The best we could get from her was a promise that Hillary would oppose for-profit charters.

We knew that was a meaningless offer, because large numbers of nonprofit charters hire for-profit management companies.

We were thrilled when Gavin Newsom and Tony Thurmond were elected, because the charter industry placed its bets on Antonio Villaraigosa for Governor, who ran third, and on Marshall Tuck for Secretary of Education. Tuck’s campaign spent twice as much as Thurmond’s and vilified him with false advertising. Thurmond barely beat Tuck, the charter industry’s favorite and former leader of a charter chain.

Newsom promised to create a task force to advise on reforming the state’s notoriously weak charter law, which has enabled fraud, embezzlement, and grifters to cash in. Thurmond would chair the task force.

But then the task force was named, and it was clear that the charter industry was running the show. Of the 11 members, seven are connected to the charter industry. Two appointees are directly employed by the charter lobby.

Here are the members:

The task force members are:

  • Cristina de Jesus, president and chief executive officer, Green Dot Public Schools California (charter chain);
  • Dolores Duran, California School Employees Association;
  • Margaret Fortune, California Charter Schools Association board chair; Fortune School of Education, president & CEO (charter lobby);
  • Lester Garcia, political director, SEIU Local 99 (Local 99 took $100,000 from Eli Broad to oppose Jackie Goldberg, a critic of charters, and its former national president, Andy Stern, is CEO of the Eli Broad Center);
  • Alia Griffing, political director, American Federation of State, County and Municipal Employees (AFSCME) Council 57;
  • Beth Hunkapiller, educator and administrator, Aspire Public Schools (charter chain);
  • Erika Jones, board of directors, California Teachers Association;
  • Ed Manansala, superintendent, El Dorado County; the El Dorado County Office set up a Special Education Local Plan Area (SELPA) specifically to service students with disabilities in charter schools and wooed charter students away from their local districts, even students who live hundreds of miles away; 
  • Cindy Marten,  superintendent, San Diego Unified School District;
  • Gina Plate, vice president of special education, California Charter Schools Association (charter lobby);
  • Edgar Zazueta, senior director, policy & governmental relations, Association of California School Administrators (ACSA endorsed Marshall Tuck against Tony Thurmond). 

Only four members of the task force are not connected, politically or financially, to the charter industry: Cindy Marten; Dolores Duran; Alia Griffing; and Erika Jones.

Who selected this skewed task force?

A tip came from someone with a direct line to the Governor’s Office.

Ann O’Leary.

Ann, I hope you read this because I want you to know that you are protecting an industry that tolerates corruption and malfeasance.

Please read this report, “Charters and Consequences,” written by Carol Burris, which begins with a description of charter operators in California who hire family members, run multiple charters with appallingly low graduation rates and continues to describe a state law that is sorely in need of real reform.

Why does California have a law that ignores graft and corruption? The California Charter Schools Association fought any reform. Yet you put the chair of the board of this lobby on the task force to reform the charter law! And to make it worse, you added another employee of CCSA! This is the lobby that fought any reform of the law, that fought previous efforts to ban nepotism and conflicts of interest, that fought accountability and transparency.

And now the Network for Public Education has documented how charter operators in California have wasted millions of federal dollars. 

Nationally, about one-third of federally-funded charter schools either never opened or closed soon after getting the money. In California alone, the state with the most charter schools, the failure rate for federally funded charters is 39%.

California charters won almost $326 million from the federal Charter School Program between 2006-2014. To be exact: $325,812,827. Of that amount, $108,518,463 went to 306 charter schools that either never opened or soon shut down. Of that 306, 75 never opened at all. But the charter operator kept the money.

In addition, the ACLU of Southern California in its 2016 report, ”Unequal Access,” identified 253 charters in the state that engage in discriminatory—often illegal—practices. That number, they said, was the tip of the iceberg, because these were the charters that put their discriminatory policies on their website! Thirty-four California charter schools that received federal CSP grants appear on the ACLU of Southern California’s updated list of charters that discriminate—in some cases illegally—in admissions.

One can only imagine how much the waste has grown since 2014, with the Obama and Trump administrations adding even more millions to expand charters that divert resources from public schools.

So, this is on you, Ann.

Will the task force protect the charter industry? Will it come up with meaningless “reforms” that do nothing to rein in waste, fraud, and abuse?

Will it protect the power of districts to authorize charters in other districts, far away, without the permission of the receiving district, so the authorizers gets a fee and the charter has no oversight?

Will it continue to allow charters to open with no consideration of the fiscal impact on the district where it chooses to open?

Will it continue to allow endless appeals when the host district rejects a new charter?

Will it continue to allow corporate chains to Walmartize what were once public schools? Will it continue to allow non-educators to open and operate charter schools?

Will it ignore the expansion of Gulen schools, schools run by a Turkish imam who lives in seclusion in Pennsylvania, schools which import Turkish teachers and relies on Turkish boards?

Is it possible for a task force to regulate an industry when industry insiders are a majority of the task force?

I know you are very busy, but I hope you will take the time to think about these questions and respond.

 

 

 

 

 

 

Categories Accountability, California, Charter Schools, For-Profit, Fraud

Ohio: School Districts Sue Facebook for Helping to Defraud Them

By dianeravitch
April 15, 2019 //
2

Eight school districts in Ohio are suing Facebook for recruiting students for the failing online charter school ECOT (Electronic Classroom of Tomorrow). Real public schools that enroll and educate real students lost money to the for-profit virtual charter school, whose owner pocketed millions and ultimately went bankrupt rather than pay back any of the millions it collected from the state. Over the nearly 20 years that ECOT operated, it received close to a billion dollars that did not go to public schools where students actually showed up and were counted.

Ohio School Districts Sue Facebook Over Failed Online Charter School

By Doug Livingston, The Akron Beacon Journal Education Week April 14, 2019

Cuyahoga Falls, Woodridge and six other Ohio school districts are suing Facebook for about $250,000 in public education funding lost when the Electronic Classroom of Tomorrow imploded last year.

The districts, which may never be made whole for state funding they lost when ECOT inflated attendance, are alleging that Facebook knew the online charter school was financially failing when it sold ads to help ECOT boost enrollment. That, under Ohio law, would be an illegal and “fraudulent transfer.”

Founded in 2000, ECOT grew to be the largest charter school in Ohio, claiming 15,239 students enrolled in 2016 when the Ohio Department of Education ran an attendance audit.

The virtual headcount found students spending as little as an hour a day on home computers. But the state was funding the charter school, using tax dollars diverted from local school districts, as if kids were attending full time.

Related

The attendance scandal forced ECOT founder Bill Lager, who had donated $2.1 million to school choice supporters, to return $2.5 million monthly until taxpayers got back the $80 million the school overbilled the state in just 2016 and 2017.

ECOT folded in January 2018 before making the first repayment.

Now, every public school district in Ohio that lost students and state funding to ECOT is in line for what’s left. Governor and then-Attorney General Mike DeWine announced in August a lawsuit to hold Lager, his companies and top ECOT executives personally liable for the lost public funds.

 

From Bill Phillis, unofficial ombudsman for school funding in Ohio:

School Bus
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Districts that are attempting to intervene in the Attorney General’s lawsuit against the ECOT gang have added Facebook to their pursuit for recovery of funds
Attorney General DeWine brought suit against ECOT, ECOT companies and some employees of ECOT. Eight school districts are attempting to intervene in the suit. Additionally, the districts are pursuing claims against three companies with which ECOT did business. Most recently the districts added Facebook to the list. They are alleging Facebook knew ECOT was financially failing when it sold ads to help ECOT enroll students.
A lot of individuals and companies were attracted to ECOT for the purpose of making easy money. Taxpayers were the losers.
William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540 | ohioeanda@sbcglobal.net| www.ohiocoalition.org
Categories Accountability, Charter Schools, Education Industry, For-Profit, Fraud, Funding, Ohio, Privatization, Virtual Charter Schools

Critics Protest Outrageous Award for Corporation Hawking Online Instruction for Pre-Schoolers

By dianeravitch
April 14, 2019 //
20

 

The Campaign for a Commercial-Free Childhood is outraged that The Audacious Project is honoring the Waterford online preschool program, which will use this platform to expand their efforts to open additional  online preschools. Early childhood experts agree that this is harmful to children. I say it is a mean and stupid idea. Efforts to put little children in online schools should be denounced, not celebrated. Children need real interaction with real human beings.

Please sign the petition.

 

For Immediate Release

Contact:
David Monahan, CCFC: david@commercialfreechildhood.org; (617) 896-9397

Early Childhood Advocates Call On The Audacious Project to Reconsider Major Award for Online Preschool
A TED philanthropy project would widen educational inequality and deprive children of the hands-on preschool experiences they deserve.

BOSTON, MA – April 12, 2019 – Early childhood advocates are calling on The Audacious Project, housed at TED and designed to fund ideas for social change, to postpone plans to designate Waterford UPSTART, an online “preschool” program, as one of the participants in its funding program for 2019.  Award winners will be announced at TED2019 in Vancouver on April 16. Last year’s award winners averaged $63 million in new funding. According to a Waterford representative, the funding will allow UPSTART to dramatically increase the number of children enrolled in its program.

In their call for The Audacious Project to postpone funding, Campaign for a Commercial-Free Childhood (CCFC) and Defending the Early Years (DEY) point to their October 2018 Position Statement on Online Preschool, which has been endorsed by more than 100 experts in child development and early education. The experts and advocates say that online preschool programs like UPSTART are poor substitutes for high-quality early education, and that funding online programs instead of high-quality early education will make inequality worse, not better.

“There is a tremendous need for universal pre-K, and it’s admirable that The Audacious Project wants to address educational inequalities, but online preschool is not the answer,” said Nancy Carlsson-Paige, EdD, Professor Emerita at Lesley University and DEY Senior Advisor. “Kids learn by playing, exploring, and interacting with peers and caring adults – not by memorizing letters, numbers, and colors presented to them on screens. Children who receive UPSTART’s screen-based version of a preschool experience will be disadvantaged compared to children from more resourced communities who have play-based, experiential early education. A truly audacious project would take the funding intended for these online programs and direct it instead to giving low-income, rural, or otherwise underserved children the high quality, face-to-face education they deserve.”

UPSTART, which started with public funding from the state of Utah and has spread to at least seven other states, claims to promote “kindergarten readiness” through 15 – 20 minutes per day of online instruction. But advocates say that UPSTART’s lessons are poorly designed and developmentally inappropriate. An analysis of one UPSTART lesson by DEY found it was pedagogically unsound, “confusing” and “overloaded with distracting images.” UPSTART also recommends that children wear headphones and complete lessons alone, contrary to the American Academy of Pediatrics’ recommendation that parents “co-view with your children [and] help children understand what they are seeing.”

“Online preschool should never be rewarded or considered a legitimate alternative to high-quality early care and education,” said Denisha Jones, PhD, JD, Director of Teacher Education at Trinity Washington University and Director of Organizing for DEY.  “I implore The Audacious Project to reconsider giving money to a screen-based program at a time where early childhood experts are increasingly concerned with screen time and the loss of high-quality interactions between children and educated early childhood teachers. Programs like UPSTART may be less expensive than real universal preschool, but those savings come at the expense of the low-income kids and kids of color they purport to help. We should be investing our money, time, and resources to ensure all children have access to affordable, high-quality, early childhood education.”

Last year, seven of The Audacious Project designees were granted a total of $441 million from partners including the Bill and Melinda Gates Foundation and the MacArthur Foundation. It is not yet known which groups are funding UPSTART, or exactly how much money the program will receive, but an email from a Waterford PR representative indicated that the award will be enough to “provide an opportunity for every four-year-old to be ready for kindergarten.” (Emphasis in original.)

The DEY/CCFC letter pointedly states, “We don’t believe your impressive list of funders and partners would be satisfied if their own children spent 75 minutes a week on a computer in isolation as a substitute for face-to-face preschool rooted in caring relationships and social interaction.” It also warns that a major expansion of online preschool could derail the growing movement for real universal preschool. It asks The Audacious Project to postpone the award and meet with advocates to better understand their concerns.

Added Josh Golin, Executive Director of CCFC, “Over and over, we’ve seen educational technology such as 1:1 programs, virtual charter schools, and personalized learning software falsely marketed as a panacea for inequality. Now the EdTech evangelists have set their sights on preschoolers. Isolated children on computers guided by algorithms can never replicate the joyful exploration and interactions at the core of the preschool experience. We urge The Audacious Project to rethink this award.”

The DEY/CCFC letter can be read in full here.

Categories Childhood, Childhood, Pre-K, K, Corruption, Disruption, Education Industry, For-Profit, Fraud, Online Education

Florida: The Graveyard of American Public Education

By dianeravitch
April 12, 2019 //
36

 

Florida has the worst education policies of any state in the nation, and it is about to get even more destructive, more ignorant, more backward.

Read this alarming article and remember that Betsy DeVos points to Florida as a model.

A model, yes. A model of how religious extremists, rightwing ideologues, and uneducated political hacks can destroy public education, drive away teachers, and fund “schools” that indoctrinate students in religious dogma.

The post was written by Kathleen Oropeza Parent Activist in Orlando.

Jeb Bush started the descent into the swamp of ignorance. Now the torch is carried by Ron DeSantis, who wants to arm teachers, expand the state’s voucher programs to include middle-class families with income up to $100,000 a year, reduce the power of local school boards so they can’t block new charter schools, and undercut public schools in every way their little minds can imagine.

Oropeza writes:

“Pay attention, because what happens in Florida usually shows up in the thirty or so other states under GOP control.

“Step one for DeSantis was to stock the State Supreme Court with three conservative judges. Next, DeSantis charged the Board of Education with appointing Richard Corcoran as State Commissioner of Education. As the immediate past Speaker of the Florida House, Corcoran was the architect of the “school choice” expansions logrolled into multi-subject, opaque omnibus bills that became law over the past several sessions.

“DeSantis, a known Trump ally, made it clear in his proposed education visionto legislators before the the start of the 2019 session that they should “send me a bill” for a new private school tax-funded voucher program. The DeSantis voucher became SB 7070/HB 7075, the radical Family Empowerment Scholarship Program. Funded through the Florida Education Finance Program from property taxes, this is a dangerous co-mingling of the already thin dollars designated for Florida’s district public schools.

“In a state that prizes high-stakes accountability for its public-school students, these vouchers go to unregulated private schools that maintain their right to discriminate against certain students, charge more than the voucher for tuition, teach extreme curriculums, and are not required to ensure student safety or hire certified teachers. This dramatic expansion of private religious school vouchers, once meant for low-income recipients, is morphing into a middle-class entitlement program for families of four making close to $100,000 a year….

”On teacher pay, DeSantis wants to double down on the awful policy of providing bonuses instead of raises via SB7070. Teacher pay in Florida ranks 45th in the nation: $47,858 on average. The state is struggling with a massive teacher shortage projected by the Florida Department of Education to reach 10,000 vacancies by the start of next school year.”

As Oropeza points out, no one ever bought a home with a one-time bonus (except on Wall Street).

”DeSantis supporter Representative Kim Daniels continues to insert religioninto public schools this session by sponsoring HB 195. This is model legislation from ALEC-like Christian Nationalist Project Blitz. Daniels, a Democrat, passed a 2018 law requiring “In God We Trust” to be displayed in public schools. This year Daniels is pushing Blitz legislation requiring public high schools to offer a religion class that teaches only Christianity.”

Another bill allows schools to withdraw any book that is “morally offensive,” such as Frank McCourt’s “Angela’s Ashes.” Expect to see demands to remove a lot of “morally offensive” classics by authors such as John Steinbeck, Ernest Hemingway, Harper Lee, and Mark Twain.

“Another bill, HB 330 by Senator Dennis Baxley, the original sponsor of Florida’s Stand Your Ground law, seeks to revise curriculum standards and force public schools to teach “science” theories such as creationism and alternate views to subjects such as climate change.”

Florida is indeed a model: a model of kakistocracy.

Look it up.

 

 

Categories Accountability, Betsy DeVos, Bush, Jeb, Charter Schools, Education Reform, Florida, For-Profit, Funding, Privatization, Religion, Standardized Testing, Vouchers

Bernie Sanders’ Staff Called Me to Talk About Education Policy

By dianeravitch
April 12, 2019 //
186

 

I got an e-mail recently from Senator Bernie Sanders’s education advisor. She said she reads the blog and wondered if we could talk. I said sure but I was not ready to endorse anyone in the Democratic primaries.

I asked for and got her permission to share that this conversation occurred. As everyone knows who ever gave me confidential information, I never write or speak about what I was told in confidence.

We set a date to speak on the phone since I am in New York and she is in D.C.

She called and conferenced in the campaign’s chief of staff.

Here is what happened.

I told them that I was upset that Democrats talk about pre-K and college costs—important but safe topics—and skip K-12, as though it doesn’t exist. Every poll I get from Democrats asks me which issues matter most but doesn’t mention K-12.

I expressed my hope that Bernie would recognize that charter schools are privately managed (in 2016, he said in a town hall that he supports “public charter schools but not private charter schools). No matter what they call themselves, they are not “public” schools. They are all privately managed. I recounted for them the sources of financial support for charters: Wall Street, hedge fund managers, billionaires, the DeVos family, the Waltons, Bill Gates, Eli Broad, ALEC, and of course, the federal government, which gave $440 million to charters this year, one-third of which will never open or close soon after opening. (See “Asleep At the Wheel: How Athens Federal Charter Schools Program Recklessly Takes Taxpayers and Students for a Ride,” Network for Public Education).

I proposed a way to encourage states to increase funding for teachers’ salaries. I won’t reveal it now. I think it is an amazingly innovative concept that offers money to states without mandates but assures that the end result would be significant investment by states in teacher compensation, across the board, untethered to test scores.

I recommended a repeal of the annual testing in grades 3-8, a leftover of George W. Bush’s failed No Child Left Behind. I pointed out to them that all the Democrats on the Education Committee in the Senate had voted for the Murphy Amendment (sponsored by Senator Chris Murphy of Ct), which would have preserved all the original punishments of NCLB but which was fortunately voted down by Republicans. I suggested that grade span testing is common in other developed countries, I.e., once in elementary school, once in middle school, once in high school.

We had a lively conversation. Our values are closely aligned.

They are in it to win it. I will watch to see if Bernie moves forward with a progressive K-12 plan. No one else has.

My options are open. My priorities are clear.

Let’s draw a line in the sand. We will not support any candidate for the Democratic nomination unless he or she comes out with strong policy proposals that strengthen public schools, protect the civil rights of all students, curb federal overreach into curriculum and assessment and teacher evaluation, and oppose DeVos-style privatization (vouchers, charters, cybercharters, for-profit charters, home schooling, for-profit higher education).

Silence is not a policy.

Democrats support public schools.

 

Categories Accountability, Betsy DeVos, Charter Schools, Civil Rights, Education Industry, For-Profit, Privatization, Sanders, School Choice, Teacher Pay, Testing, U.S. Department of Education, Vouchers

Pearson Invests in the Business of Education

By dianeravitch
April 11, 2019 //
46

 

The British giant Pearson announced that it was creating a venture capital fund to invest in new technologies to transform education.

Yuch!

More tech trash on the way!

Protect your child from tech capitalization and monetization!

Press release:

“We are launching Pearson Ventures, a fund to invest in growth stage start-ups that are building the future of education and employment. Pearson Ventures will build on the success of Pearson’s Affordable Learning Fund and will continue to lead our ongoing partnership with Learn Capital.”

Today Pearson, the world’s learning company, made an announcement regarding how they plan to support startups in building the groundwork for the next era of education and employment.

Here’s the gist of the news:

  • Because education will look very different in 2030, Pearson, like learners all over the world, will need to continue to learn, adapt and reinvent itself: finding new business models, incorporating emerging technologies into its products and services, and finding new ways to collaborate with education institutions, government, and businesses.
  • To do so, Pearson is launching Pearson Ventures, a fund to invest in early stage start-ups who are building the future of education and employment.
  • With an initial capital commitment of $50M over three years, Pearson Ventures will invest in companies building new market opportunities with innovative business models, future technologies and new educational experiences.
  • Pearson Ventures will focus primary in early-stage startups with Series A and B rounds.

Below, please see the blog post regarding the announcement, or find it here.

Let me know if you have any other questions on the news. Thanks!

-XX

Pearson Ventures: The Future of Learning

Jonathan Chocqueel-Mangan, Chief Strategy Officer at Pearson

Students entering school today face the possibility of being the first generation of 100-year-old workers. Just let that sink in. Having a career that lasts late into life means the skills and knowledge learned in childhood, or a degree earned at 20 years old, won’t be enough for success in a rapidly changing economy. Whether it is a student seeking help with math homework, or an adult seeking a masters degree, we know learners need education that is convenient, flexible and life changing. We also know education will look different in the future, so finding new business models, incorporating emerging technologies into our products and seeking new partners for collaboration is becoming more important than ever.

That’s why we are launching Pearson Ventures, a fund to invest in growth stage start-ups that are building the future of education and employment. Pearson Ventures will build on the success of Pearson’s Affordable Learning Fund and will continue to lead our ongoing partnership with Learn Capital. PALF has invested over $20M in some of the world’s most impactful education startups, improving education for underserved populations, while returning more than $7 million to the company. But as we look to the future, this new approach is a way to shift our investment work to align more closely with Pearson’s five-year strategy, especially our focus on lifelong learning and employability.

With an initial capital commitment of $50M over three years, Pearson Ventures will invest in companies building new market opportunities using innovative business models, future technologies, and new educational experiences. While Pearson Ventures will pursue competitive financial returns, equally important is its ability to collect shareable insights and drive organizational learning to help future-proof the company. As a result, we will be doing things a bit differently than a typical venture fund.

Investment Criteria: Pearson Ventures will focus primarily in early-stage startups with Series A and B rounds, typically partnering with venture firms and accelerators through a co-investment structure. While we will have a global remit, we will focus on geographies where Pearson already has a significant footprint, both to maximize the strategic benefits to our investees and the relevance to Pearson.

Investment Focus: We will prioritize companies who are working in areas of high strategic importance, including employability, lifelong learning, and next-generation assessment; offering new technological capabilities such as artificial intelligence, mobile-first delivery, remote proctoring, or augmented/virtual reality; creating social impact through upskilling, income share agreements, or increasing higher-ed access.

Leveraging Pearson’s Scale and Reach:Pearson Ventures will deliver unique benefits beyond just capital. As a global learning company, Pearson Ventures will proactively connect its portfolio companies with relevant experts in content, product design, and business development, as well as advise on geographic and market expansion. In most cases, new investments will have a Pearson advocate or sponsor as a touch point, in addition to the investment team. On a case-by-case, and mutually agreed, basis, portfolio companies can also receive a seconded Pearson employee, or join a Pearson team or office as an entrepreneur-in-residence.

Through Pearson Ventures, we will continue our commitment to invest in businesses that have a social impact on learners. Alongside our commitments to improve learner outcomes and use digital to reach more people, Pearson Ventures is one more way we’re becoming more innovative, learner-centered, and future-focused.

Categories For-Profit, Online Education, Pearson

Bill Phillis: Ohio and Indiana Race to the Bottom to Waste Money on Cybercharters

By dianeravitch
April 11, 2019 //
2

 

Bill Phillis, retired deputy superintendent of the Ohio Department of Education, writes here about a sector with a reputation for providing a lossy Education but high profits, this ripping off taxpayers:

 

 

Indiana and Ohio are in a tight race to the bottom in the online charter industry
 
Whether in Ohio or Indiana, the online charter fraud seems to continue unabated.
 
Some entrepreneurs can smell a dollar a mile away. Online charters have an enticing fiscal aroma. The fact is that the online charters have a guaranteed income based on all students whether or not they participate in the program.
 
These privately-operated charters should be shut down. School districts have the capacity to provide online services to the students who need such programs. Let the online entrepreneurs switch to growing earthworms.
 
 
 
 
 
William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540| ohioeanda@sbcglobal.net| www.ohiocoalition.org
Categories Accountability, For-Profit, Fraud, Indiana, Ohio, Virtual Charter Schools

Alan Singer: Is Promesa the “Worst Charter Chain” in the Nation?

By dianeravitch
April 5, 2019 //
11

 

Alan Singer writes here about Promesa, a charter chain in Texas owned by Southwest Key, the same company that runs detention center for immigrant children.

As is often the case, the big profits are in real estate.

Here is an excerpt from a powerful article:

At one Texas Promesa charter school site, vermin roam the halls, offices, and classrooms and the roof leaks when it rains. The non-profit Southwest Key school pays its non-profit Southwest Key Foundation landlord almost a million dollars a year in state tax money for use of the building. Not only does Southwest Key collect rent from its four Southwest Key charters, but it forces them to purchase services including maintenance and school lunches from Southwest Key affiliate companies at above market rates. Southwest Key Maintenance charges almost $200,000 for janitorial work that an outside company offered to do for $93,000. The food served at Promesa’s schools is purchased from Southwest Key’s for-profit food company, Café del Sol. It is so bad that students have gone on a hunger strike. In addition, Southwest Key charged Promesa over $300,000 this year as a “management” fee and bills the schools for “accounting.”

Southwest Key uses its “non-profit” profits to pay hefty salaries to corporate and charity leaders and to stockpile tens of millions of dollars in reserves. Its former president and his wife were paid a combined $2 million a year. The foundation is now under federal investigation.

Texas Promesea schools are so badly run that when teachers quit they are not replaced. At one school someone hired to teach Spanish was assigned to teach history and someone hired for special-education is teaching photography. At Corpus Christi Promesa graduating senior have difficulty filing college applications and financial aid forms because the chief guidance counselor was laid-off. The Corpus Christi school is in a crumbling former shopping center rented by Promesa for $360,000 a year from a shell company operated by real estate developers tied to Southwest Key’s shelter operation.

The charter operation has tried to escape its reputation by rebranding and now calls itself Promesa Public Schools. It opened new campuses in fall 2018 in Corpus Christi and Brownsville.

As usual, the question is why parents choose to send their children to these terrible profit centers that call themselves “schools.” Betsy DeVos would say that as long as parents “choose” to send their children to vermin-infested profit centers, then all is well. As usual, the answer probably lies in marketing, branding, and promises that ignore reality. Sadly, many parents are gullible and believe the former.

 

Categories Accountability, Charter Schools, Education Industry, For-Profit, Privatization

Houston: Charter Founder Pays Her Companies $17 Million a Year

By dianeravitch
April 3, 2019 //
7

 

The board of Houston Independent School District is reviewing three charter networks founded by one woman, who is both the highest ranking employee and pays her “related companies” $17 million dollars.

Lois Bullock runs the networks and pays rent to companies she owns.

“Over the past half-decade, Bullock’s company has served as the landlord for Energized For Excellence Academy, taking in $10.8 million in lease payments, and received a $4.2 million loan from the organization, records show. Bullock’s company also earned about $2 million over five years for her “labor and job benefits,” an annual amount roughly equivalent to the compensation of HISD’s superintendent. The three charter networks enroll about 4,000 students at eight campuses, while HISD serves nearly 210,000 students.

“HISD trustees are scheduled to vote Thursday on whether to authorize the renewal of contracts with the three charter networks, as well as five other in-district charter operators. The vote will determine whether the eight networks, which have a combined enrollment of about 11,000 students, can remain open past the 2018-19 school year.”

Remember, this is taxpayers’ money, intended for classrooms and instruction.

Categories Accountability, Charter Schools, Education Industry, For-Profit, Houston, Privatization

North Carolina: Judge Rules Charter School Requirement of Skirts for Girls Is Discriminatory

By dianeravitch
April 3, 2019 //
10

 

A federal judge ruled that Charter Day School’s dress code–which requires girls to wear skirts and does not permit them to wear trousers or shorts–is unconstitutional.

“Yes, the boys at the school must conform to a uniform policy as well,” Senior U.S. District Judge Malcolm J. Howard wrote. “But plaintiffs in this case have shown that the girls are subject to a specific clothing requirement that renders them unable to play as freely during recess, requires them to sit in an uncomfortable manner in the classroom, causes them to be overly focused on how they are sitting, distracts them from learning, and subjects them to cold temperatures on their legs … .”

Also, the judge ruled that the organization that holds the charter for the Charter Day School, a K-8 school in Leland, N.C., acted under state authority, or “color of state law,” when it incorporated its disparate dress code into its disciplinary code.

“In this matter, CDS, Inc. has brought the uniform policy under extensive regulation of the state by making violations of the uniform policy a disciplinary violation,” the judge said.

Howard went on to rule that the manager of Charter Day School, an entity known as Roger Bacon Academy Inc., was not a state actor because it does not contract with or received funding directly from the state and had no power to change the dress code, which was set by the CDS board.

CDS is a “traditional values” themed school and the school’s founder, Baker Mitchell, has asserted that the dress code requirement that girls wear skirts was part of a climate of “chivalry” and “mutual respect.”

Too bad that Education Week did not delve deeper into the management company of this charter school. Roger Bacon Academy operates the charter school. RBA is a for-profit corporation owned by Baker Mitchell and is a favorite of the Koch brothers. Marian Wang of ProPublica investigated RBA in 2014 and reported that it was making millions for Mr. Mitchell, a politically-connected businessman with deeply libertarian views.

Every year, millions of public education dollars flow through Mitchell’s chain of four nonprofit charter schools to for-profit companies he controls.

How Public Dollars for Charters Flow to For-Profit Companies

Over six years, Mitchell’s two companies have taken in close to $20 million in fees and rent — some of the schools’ biggest expenses. That’s from audited financial statements for just two schools. Mitchell has recently opened two more.

The schools buy or lease nearly everything from companies owned by Mitchell. Their desks. Their computers. The training they provide to teachers. Most of the land and buildings. Unlike with traditional school districts, at Mitchell’s charter schools there’s no competitive bidding. No evidence of haggling over rent or contracts.

The schools have all hired the same for-profit management company to run their day-to-day operations. The company, Roger Bacon Academy, is owned by Mitchell. It functions as the schools’ administrative arm, taking the lead in hiring and firing school staff. It handles most of the bookkeeping. The treasurer of the nonprofit that controls the four schools is also the chief financial officer of Mitchell’s management company. The two organizations even share a bank account.

Mitchell’s management company was chosen by the schools’ nonprofit board, which Mitchell was on at the time — an arrangement that is illegal in many other states.

Hello, Education Week! How about reporting on Baker Mitchell’s charter chain and its outlandish profits?

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Categories Accountability, Charter Schools, Education Industry, Education Reform, For-Profit, North Carolina, Privatization
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