Archives for category: For-Profit

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.”

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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.

John Thompson of Oklahoma attended the NPE Conference in Indianapolis and learned a lot about how allies in other cities and states are resisting the Corporate Goliaths invading public schools.

He writes:

“Previously, I overestimated how much of Goliath’s failure was due to the arrogance of power. Today’s Silicon Valley Robber Barons’ hubris can match that of their 19th century counterparts, but their control of data makes them uniquely dangerous. As the latest NPE presentations enlightened me on what is working for us Davids as we successfully resist Goliath, I was mostly struck by the evidence that he only continues to exist for the purposes of privatization, profits, and the monetization of data.

“Fortunately, the 2018 NPE conference was extremely positive, so I can move beyond my errors to a post which provides an overview of a) what I learned and b) some ideas on future messaging.”

Thompson attended many workshops and all the keynotes and he weaves together a coherent narrative, answering the question:

“Why do they [the Corporate Goliaths] keep infusing money into charters?

“The answer, it is now clear, is that they are monetizing data. Pearson testing company thinks it knows more about the children they test than their parents do. As Leonie Haimson has shown, Goliath has bought 400 identifiable data points on students. And Summit Learning says it will follow your child through her entire life.

“Pasi Sahlberg’s presentation on GERM, the Global Education Reform Movement, showed graphically how the corporate reform assault undermined schools around the world. He then described counter-attacks against GERM in New Zealand, Australia, Singapore, Liberia, Scotland, Chile, and elsewhere. Educators have a duty to reclaim our professional autonomy. But we also must be willing to state some hard truths.

“Sahlberg says that people want to believe that the kids are “alright.” But, globally, they face a threat that must be explicitly addressed. The well-being of students is declining as screen time increases. Students and teachers must push back against the Goliath which profits from more eyes being glued to digital devices.

“Susan Ochshorn and Denisha Jones brought this dangerous trend closer to home. They condemned children being placed in front of keyboards before they are ready. And this may be the narrative that will really take off. Silicon Valley elites don’t put their 4-year-olds in online courses.

“During the previous generation, Goliath used charters that increased segregation to supposedly undo the damage done by segregation, but most voters didn’t send their children to the high-poverty schools that were targeted. So, many people didn’t understand why those corporate reforms were doomed to fail. Surely the broader public will grasp the absurdity of placing 70 students and 2 teachers in “personalized” learning to address toxic stress that is made worse by premature exposure to too many hours in front of keyboards.

“Helen Gym’s account of victories in Philadelphia is also encouraging. Goliath won when they rushed implementation of policies without an open discussion of their theories. After the Reformers got so overconfident they consulted parents, they lost. In other words, to know Goliath’s agenda is to understand that they grasp very little about what students need and parents want.”

We saw at her confirmation hearing two years ago how ill-prepared Secretary of Education Betsy DeVos is when questioned persistently about her views and actions. We saw a repeat performance when she was questioned by Lesley Stahl on “60 Minutes.” This is a person who is unaccustomed to being held accountable.

Now, at least five committees in the new Democratic-controlled House of Representatives intend to question her about her many controversial efforts to protect for-profit colleges, not students; to roll back protections for transgender students; to put the burden of proof on rape victims, not their alleged assailants; and many more of her policies intended to weaken civil rights protections and the duty of government to defend the weak and vulnerable, not the ruthless and powerful.

For two years, Democrats watched with fury as Education Secretary Betsy DeVos sought to dismantle nearly every significant Obama administration education policy.

Now, they’re gearing up to fight back. Lots of them.

As many as five Democratic-led House committees next year could take on DeVos over a range of issues such as her rollback of regulations aimed at predatory for-profit colleges, the stalled processing of student loan forgiveness and a rewrite of campus sexual assault policies.

“Betsy DeVos has brought a special mix of incompetence and malevolence to Washington — and that’s rocket fuel for every committee in a new Congress that will finally provide oversight,” said Seth Frotman, who resigned as the Consumer Financial Protection Bureau’s top student loan official earlier in protest of Trump administration policies likely to be examined by Democrats.

Even in a Republican-controlled Congress, DeVos had a strained relationship at times with some committees. Her main priorities, such as expanding school choice, were largely ignored as lawmakers hashed out government funding bills. Now she will have to answer to House Democrats wielding gavels, several of whom have long worked on education issues and have been among her most vocal critics.

She came to her job expecting Congress to allow her to shift $20 Billion from Title I to Vouchers. That never happened. Her only funding victory was an increase in funding for charter schools, which now get $450 million, which they certainly don’t need, since they are the plaything of the billionaires.

Many committees are waiting to interview her, including the House Education Committee, chaired by Rep. Bobby Scott of Virginia; the Appropriations subcommittee, chaired by Rep. Rosa DeLauro of Connecticut; and the Financial Services Committee, chaired by Rep.Maxine Waters of California.

Tom Ultican has written several articles about the Destroy Public Education Movement; this installment examines a failing charter chain in San Diego that continues to rake in big bucks.

The Thrive charter chain, he says, is a masterpiece of marketing, but a failure at education.

When the chain was launched, the San Diego Unified School District staff said it was not ready to open; the founders appealed and were rejected by the staff of the County Board of Education. The founders appealed to the State Board of Education, where its defective application was rubberstamped by Governor Jerry Brown’s pro-Charter State Board.

Ultican says that charter schools are supposed to perform at least as well as similar public schools or show improvement over time.

Thrive charter schools did not meet either benchmark. But that did not deter funders or founders.

They were shameless and kept growing their failing charter chain. And the money kept rolling in, to expand the failure to more children.

“Once she obtained the charter authorization from the SBE, money came. The known list of 2014 donations: Buzz Woolley’s Girard Foundation granted her $108,000; Gate’s Educause sent $254,500; Charter School Growth Fund kicked in $175,000 and the Broad Foundation delivered $150,000 for a total of $688,000. The next year, Broad gave another $50,000 and the New Schools Venture Fund pitched in $100,000. There is another $144,000 promised from Educause.

“Destroy public education (DPE) careers pay well. Tax records reveal that Nicole’s start up “non-profit” has been lucrative. Her pay: year one $122,301; year two $133,747 and year three $142,541. Her husband holds a senior management position at the CCSA which means DPE money flows his way as well.”

In 2017, the charter chain added another school, this one paid for by taxpayers, but with this addendum. The property belongs not to taxpayer who paid for it, but TO THE CHARTER OWNERS! How cool is that!

You will not be surprised to learn that the pro-privatization website “The 74,” is wild about Thrive. Nor will you be be surprised to discover that Thrive loves putting kids on computers and that one of its cheerleaders is Tom Vanderbilt Ark, a leading salesman for edtech.

Ultican reminds us that the Thrive charter chain calls itself “public schools,” but it is a private contractor that runs lucrative but failing schools. All that keeps them going is this formula:

“Bad schools like TPS survive because they are good at marketing; have deep pocketed benefactors and political allies.”

Thrive is not thriving.

Ultican says Thrive is evidence that California needs a moratorium on charter schools until lawmakers systematically root out fraud, self-dealing, waste, and abuse. That’ll be the day.

The Primavera online charter school in Arizona is rewarding himself handsomely with taxpayers’ money. Will Governor Doug Ducey or the legislature care or will regulate this self-dealing?

The CEO of Primavera, whose multimillion-dollar payments to himself spurred calls for more oversight of Arizona charter schools, received another $1.3 million from the online charter this past school year, records show.

Damian Creamer, the sole owner of the for-profit Primavera, also paid $27.6 million from the school’s state education funding to another company he owns, Strongmind. The payment was for curriculum, enrollment, technical support and other services.

Meanwhile, the school, which reported it had the third-worst dropout rate in Arizona, gave its 95 teachers a 1 percent pay raise last school year.

Primavera disclosed its spending for the period from July 1, 2017, to June 30, 2018, in an independent audit required by the Arizona State Board for Charter Schools.

Creamer did not respond to requests for comment.

The audits provide a snapshot of how lightly regulated charter operators use tax dollars. Charter schools are not subject to the same financial or governance oversight as traditional district public schools, and The Republic has found that some operators, like Creamer, have become charter school millionaires by operating the public schools.

After The Republic reported this year that Creamer had paid himself $8.8 million despite operating a school with the state’s third-highest dropout rate, Attorney General Mark Brnovich called for the law to be changed to allow his office to investigate charter schools more broadly.

Creamer has said the $8.8 million payment was for tax purposes but has not provided documents to support that claim.

“When you see public money go to line the pockets of someone who is supposed to help students become a millionaire, I can’t believe it’s not a crime,” Brnovich said at the time.

Since then, a Republican state senator and Gov. Doug Ducey have said they, too, will push to overhaul Arizona’s charter-school laws to require more transparency and compliance with the same procurement and conflict-of-interest laws that govern district schools.

Brnovich has criticized Creamer because the online charter school owner uses education funds to buy services from related businesses he owns or controls. A related-party transaction or self-dealing is illegal for school districts but common among Arizona charter schools.

Basis Charter Schools Inc., for example, pays about $10 million as an annual, no-bid management fee to a company controlled by its founders. American Leadership Academy founder Glenn Way made at least $18.4 million building schools for ALA through no-bid contracts. And state lawmaker Eddie Farnsworth is poised to make at least $11 million by selling his Benjamin Franklin schools to a non-profit company he created.

Brnovich’s office recently obtained a fraud conviction against Daniel K. Hughes, president and CEO of Discovery Creemos Academy in Goodyear, after he abruptly shuttered his charter school in January and defrauding taxpayers of at least $2.5 million by inflating the school’s enrollment.

Primavera still amassing cash

Primavera has accumulated so much money that it has set aside $8.5 million for Creamer in stockholder’s equity, records show. Creamer can take the money anytime.

The largest charter chain in Utah is American Prepartory Academy. It is operated by a for-profit entity. The schools are very profitable. The owners keep their operations secret, as they probably assume that the public would not be happy to learn how much tax dollars go into their bank accounts, not the schools.

One of its founders and its Executive Director, Carolyn Sharette, is also the registered agent of a for-profit management company, American Preparatory Schools, Inc., which will charge the school $5,805,200 for the 2018-2019 school year. That’s a bump up from the $4.6 million the company got last year.

Where’s the money going?

State funding, your taxpayer dollars, comprise 88 percent of American Prep’s budget. But what do the students get with that money?

Sharette isn’t telling – and she doesn’t have to. The State Charter School Board does not demand accountability from contracted companies working for the school.
The Board told KUTV’s Beyond the Books that it monitors a charter school’s student performance and adherence to its charter and state and federal rules. But Sharette’s for-profit company is beyond its reach.

It’s also a family affair. Two of Sharette’s siblings, brother Howard Headlee and sister Laura Campbell, are co-founders of American Prep.

Sharette and Campbell sit on its executive board. Headlee registered three 501(c)3 companies that own the school’s property and buildings and lease them back to the schools. And at least two of Sharette’s children have been employed by the for-profit management company, American Preparatory Schools, Inc.

Where’s your tax money going, Utah citizens?

None of your business!

Once it goes to this charter chain, there is no accountability.

Satisfied?