Archives for category: For-Profit
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Emily Talmadge: Be Like Lisa

By dianeravitch
September 20, 2017 //
22

Emily Talmadge salutes Lisa Haver, who wrote an article in a Philadelphia newspaper asking why the billionaires who play with public schools are never held accountable. She recommends that all of us should “be like Lisa,” speak up, stand up, demand that billionaires keep their hands off our public schools with their half-baked ideas.

Emily has the advantage of having gone to school with Mark Zuckerberg. Maybe she can answer a question that has bothered me whenever I see a picture of him. Does he own any shirts that are not solid color T-shirts? Is he pretending to be Steve Jobs? Does he own a shirt with buttons? Has he ever worn a tie? None of these are necessary, but I imagine him at a black-tie dinner wearing a T-shirt. Just because he is richer than everyone else.

Anyway…

Emily writes:

Sixteen years ago, Mark Zuckerberg and I sat across from each other in Latin class at Phillips Exeter Academy.

A few years after Exeter, I began teaching public school.

Mark, meanwhile, invented Facebook and became a billionaire.

Now, the one who never worked a day in his life in a public school (Mark) is crusading nationwide to “remake” public schools.

Without bothering to hear from those who actually work in those schools (I wrote Mark an open letter a couple of years ago that was picked up by a number of popular media outlets, but never heard back), Mark and his wife are striving to build a public school system that in no way resembles the intimate, discussion-based, mostly tech-free education (with no more than twelve students per class) that we got at Exeter.

Chan and Zuckerberg – along with a long list of other billionaires like Reed Hastings, Laurene Powell Jobs, Eli Broad, and the Waltons – are currently pushing an education agenda that puts an electronic device at the hands of each student, tracking their every move with “personalized learning plans” that will warn you in big red letters if at any time you fall off-track and aren’t meeting the standards as you should be.

There’s a giant profit motive behind this frighteningly technocratic vision, and anyone who cares about public schools should be fighting tooth and nail against it.

Unfortunately, based on the speed at which schools are adopting Mark’s “Summit Personalized Learning” program and the amount of money his LLC is throwing at public policy initiatives, Mark and his billionaire buddies are currently winning this war.

Most of the billionaires who want to reshape education want to make it completely reliant on technology, even though they don’t send their own children to schools like that. They prefer the kind where an experienced teacher sits at a seminar table with a dozen students and discusses what they are learning. The Waltons are different; they are not in the tech sector. They want to bust unions, and they have found that funding charters is the best way to achieve that goal.

Be like Lisa, she writes. Blow the whistle. Call foul. Speak up. Now.

Categories For-Profit, Philanthropy, Technology

Nancy Bailey: DeVos’ “Let’s Get Rid of Public Schools” Tour

By dianeravitch
September 19, 2017 //
21

Nancy Bailey valiantly followed Betsy DeVos’s national tour, from a distance.

Her message everywhere was the same: Public schools suck! Private schools are awesome!

In public schools, children sit in desks arranged in rows. In private schools, well, maybe the same but it doesn’t matter.

In public schools, children hate going to school. In private schools, they are enthusiastic and happy.

This woman is an ideologue. She knows nothing and learns nothing. Whatever she proposes is meant to damage public schools and communities.

Education is a learning profession, and she is not open to learning anything!

We will wait her out, fight her at every turn, and return to the task of improving and strengthening public schools for all children, a concept unknown to her.

Categories Accountability, Betsy DeVos, Charter Schools, Education Industry, For-Profit, Privatization, School Choice, Virtual Charter Schools, Vouchers

Pennsylvania: How Charter Schools Make Handsome Profits in States Where For-Profits Are Not Allowed

By dianeravitch
September 16, 2017 //
5

Remember that scene in the Dustin Hoffman movie “The Graduate” where a sharp guy whispers to the young Hoffman that the business of the future is “plastics!”

In the charter industry, the profits are not in tuition money. They are in real estate.

Pennsylvania theoretically does not permit for-profit charters. But that doesn’t mean that charters don’t make a handsome profit. It is all about real estate, or leasing the property you own to yourself for a fine fee.

The five-story brick and concrete building overlooking Brighton Road in Perry South features a Propel schools banner over its front door, with signs for the charter network at every approach.

The 99,155-square-foot Propel Northside is owned, though, by School Facilities Development Inc., a nonprofit corporation with a very narrow role: Leasing property to Propel.

SFD’s ownership allows Propel to collect around $322,000 in annual lease reimbursements from the state — money it wouldn’t get if it owned its school buildings. It’s an arrangement that had drawn criticism from the state’s top auditor and is threatened by proposed legislation.

“You’ve created this nonprofit and sort of in a sense, you control it,” said Auditor General Eugene DePasquale, a critic of the state’s charter school law. “You’re getting a lease reimbursement for renting to yourself.”

Since 2004, SFD has spent $32.6 million buying a portfolio of seven schools, comprising most of Propel’s 11 locations. With no employees and just a few volunteers and part-time consultants, the nonprofit receives $3 million in annual lease payments from Propel schools, and after debt payments runs annual six-figure surpluses.

From 1965 to 2006, the Pittsburgh Public Schools owned the Brighton Road building, maintained it and used it as Columbus Middle School. That simple arrangement isn’t mirrored in the charter school world, where specialized nonprofits take on various roles and receive millions of dollars in public money.

“Real estate is held in a separate company,” said Propel Executive Director Jeremy Resnick, recounting the advice he’s gotten from attorneys and financiers during Propel’s 15-year history. “This is how it’s being done.”

Jeremy Resnick–founder of the Propel Charter Chain–is the son of the esteemed education researcher Dr. Lauren Resnick of the LRDC at the University of Pittsburgh.

Categories Accountability, Charter Schools, Corporate Reformers, Education Industry, For-Profit, Pennsylvania, Privatization

Bill Phillis: Ohio Allows ECOT to Spend $33 Million on Ads, Lobbying, Lawsuits, and Profits

By dianeravitch
September 16, 2017 //
11

Bill Phillis, watchdog extraordinaire for Ohio, reports that the state of Ohio has allowed the Electronic Classroom of Tomorrow (ECOT) to use public money in its public relations blitz to avoid accountability for inflation of enrollment and the state’s efforts to claw back more than $60 million. ECOT is notable for having the lowest graduation rate of any high school in the nation, as well as dubious quality standards. Its founder is a major contributor to elected officials. In return, he has collected many millions of dollars of profit.

Bill Phillis writes:

“ECOT has spent $33 million on ads, lobbyists, profits and lawsuits
since January 2016

“According to a September 3 Columbus Dispatch article, ECOT has spent $33 million on TV ads, lobbyists, lawsuits and William Lager’s for-profit companies since January 2016, all in pursuit of gaining state approval to continue to count students that are not participating.

“Over 400 school buses could have been purchased with the $33 million ECOT has spent recklessly. While Ohio students ride on worn-out buses, the ECOT Man spent money extracted from school districts to rev-up his tax-consuming machine.

“It is amazing that public officials have tolerated payments to ECOT’s for students not participating during a span of 15 years. Now that ECOT has finally been audited and exposed, this business is in the process of submitting a plan to transition to the totally unregulated dropout recovery charter scheme.

“Will state officials allow this duplicity to proceed? This will be an ethical and moral test for state officials and the Ohio Department of Education.”

You can contact Bill Phillis or join his organization at:

William L. Phillis
Ohio Coalition for Equity & Adequacy of School Funding
614.228.6540
ohioeanda@sbcglobal.net
http://www.ohiocoalition.org

Categories Failure, For-Profit, Ohio, Online Education, Virtual Charter Schools

Anita Senkowski to the New York Times: Please Look at Charter Rip-Offs in Northern Michigan

By dianeravitch
September 12, 2017 //
2

Anita Senkowski is a blogger in northern Michigan who has written numerous posts about a for-profit charter operator who ripped off taxpayers and is now serving a term in jail for his financial crimes. She read Mark Binelli’s piece in the New York Times about charter schools in Detroit and its surroundings and hopes that he will come to Northern Michigan to see how the fraudster mentality permeates the DeVos charter industry throughout the state.

She writes:

Binelli’s fine piece, focused primarily on districts south of Eight Mile Road, the northern border of Detroit made infamous by former Detroit Mayor Coleman Young in his 1973 inaugural address. Telling “rip-off artists and muggers” to “hit Eight Mile Road” and leave Detroit, Young made few friends in suburban Detroit, especially Oakland County.

As they say in Las Vegas, the house always wins.

And although Michigan gambled on charter schools and its children lost, there have been winners.

One, former optometrist Steven Ingersoll, (whose story I’ve beaten like a rented mule for three years), walked away with millions. Although he’s serving a 41-month federal prison term, no Michigan authority (state or local law enforcement) has expressed any interest in prosecuting Ingersoll for his admitted fraudulent conversion of approximately $5.0 million from the Grand Traverse Academy and another roughly $1.4 million from the Bay City Academy.

If Ingersoll had lived in Mississippi and not Michigan, John Grisham would have already written a not-very-fictitious-sounding novel about him.

In its theory of the case, the federal government asserted Ingersoll’s federal tax evasion case demonstrated the truth of the sayings that “money gives power” and “unchecked power corrupts”.

“Steven Ingersoll obtained control over millions of dollars by creating and running the public charter schools known as the Grand Traverse Academy. The power of that money enabled Steven Ingersoll to corrupt himself, his wife Deborah Ingersoll, his brother Gayle Ingersoll, Roy Bradley, Sr., and Tammy Bradley.

As the person who controlled the accounting books and public funds intended for the operation of the Grand Traverse Academy, Steven Ingersoll ignored his obligation to separate his personal finances from the finances of the Grand Traverse Academy.

Instead, Steven Ingersoll treated the tax dollars provided for public education as his personal piggy bank, ultimately diverting approximately $3.5 million from the Grand Traverse Academy to uses other than the operation of the Grand Traverse Academy.

Steven Ingersoll also manipulated the books of entities he controlled, including Smart Schools Management and Smart Schools Incorporated, to hide his diversion of the public money that had been entrusted to him.”

And Ingersoll, on who reported to FCI Duluth on February 2, 2017 to serve a 41 month sentence for his federal tax evasion and conspiracy convictions, filed a “pro se” motion to vacate on January 24, 2017, seeking “post-conviction relief” based on attorney Martin Crandall’s alleged “ineffective assistance of counsel” — an attorney who’d sued him for nonpayment of nearly $362,000 in outstanding legal fees.

Ingersoll’s motion was denied, and he’s sitting in stir until January 22, 2020 — ironic, since he was an optometrist.

Let’s hope Binelli takes a look back here in Michigan…about 250 miles north of Eight Mile Road.

Categories Accountability, Betsy DeVos, Charter Schools, Corporate Reformers, Detroit, Education Industry, For-Profit, Fraud, Michigan, Privatization

Peter Greene: The Branded Classroom of Tomorrow

By dianeravitch
September 11, 2017 //
6

Peter Greene read the story in the New York Times about the new trend of paging teachers to promote your brand, inside and outside the classroom, and he imagined the classroom of the future, where commercialism reigns.


“Good morning,children, and welcome to today’s classes in the Mr. Edbrand Fifth Grade Room, brought to you by Exxon here at Apple Elementary School. I’ll remind you that all Samsung devices and Microsoft Surface tablets must be placed in the big box just outside the door. As usual we’ll be recording and webcasting today, and only properly sponsored materials can be shown on camera.

Oh, Chris– you brought in your signed clearances from home? Excellent– you can finally move your desk out of the cupboard and join your classmates on camera.

Today we’re going to continue working on this week’s essay, “Why Pepsi Is the Most Refreshing Drink.” Remember, we’re going to be writing them with the new Edutech Markotron 5000s that came in yesterday. No, Ronny– you’re trying to hold your Markotron like a pen or pencil– just flip your wrist so your hand is upside down and backwards– the Markotrons work fine if you just change the way you write. At recess we’ll be trying out the new game from EduGo– did everyone sign their decline-of-liability forms? And while at your work stations, remember not to slouch so that the new DataGrabber Mining Module can track every part of your facial expressions.

I’ll also remind you that part of your class requirement is to post a picture from class on Instagram or Twitter; remember, you only get credit if you use the hashtag #MrEdbrandTeaches, because every day what…? That’s right– “Every day I’m increasing my digital footprint.”

After lunch we’ll be filming the spots for the demo of EduGadget’s Gramminator– the ones we rehearsed for the last few days– so make sure you get your face and hair all straightened out before then. Remember– we’re doing two versions, one with all the white kids in the front and another with all the white kids in the back. It’s so EduGadget can use them in different markets, dear. We’ll do that right after the Faberware Super Writing Center.

Categories For-Profit, Privatization, Propaganda

Samuel Abrams Responds to Barron’s Takedown of His Book and the Editor Makes a Snarky Comment

By dianeravitch
September 11, 2017 //
18

Samuel Abrams, veteran high school teacher and now Director of the National Center for the Study of Privatization in Education, at Teachers College, Columbia University, wrote an excellent book about the perils of for-profit schooling. Most of the book tells the story of the rise and calamitous fall of the Edison Project. The business magazine Barron’s published a scathing review of the book by anti-public school ideologue Bob Bowdon, whose film “The Cartel” compared the New Jersey teachers’ union to the mafia.

Samuel Abrams wrote a response to the review. Here is the original letter, followed by the heavily edited published version:

The original letter to the editor:

To the Editor:

In faulting me in his review of Education and the Commercial Mindset for focusing on the failure of Edison Schools rather than the success of National Heritage Academies (NHA), Bob Bowdon misses a central point of my book (“Balancing the Books: Slurring Charter Schools,” Sept. 4).

Edison was the standard-bearer of a movement hailed by Wall Street analysts in the 1990s to outsource the operation of public schools to for-profit educational management organizations (EMOs). Analysts forecasted that Edison and similar EMOs surfacing in its wake would run 10 to 20 percent of the country’s public schools by 2010 and reward investors handsomely. By 2010, the portion of public schools run by EMOs was 0.7 percent and has not changed since. Moreover, investors in Edison saw the stock plummet 90 percent from when it was taken public with much fanfare by Merrill Lynch in 1999 to the time it was taken over in 2003 by the private equity firm Liberty Partners, which, in turn, sold the company in 2013 for 80 percent less than it had paid.

While NHA has indeed tripled in size since 2001 to 84 schools today, as Bowdon writes, this growth along with that of other for-profit EMOs such as the Leona Group and Mosaica constitutes a blip relative to what analysts had predicted.

Furthermore, in contending that I ignored the consistent proliferation of charter schools, Bowdon misses another central point of my book. As I wrote in my prologue, “With the number of charter schools as a whole—from solo operations to network members—growing from 2 in Minnesota in 1992 to 6,440 across 42 states and the District of Columbia by 2013, the appeal and force of educational outsourcing cannot be questioned.”

Finally, in dismissing my argument that the complexity of primary and secondary schooling does not afford parents the transparency essential to conventional contract enforcement, Bowdon cites the complexity of Android and Apple smartphones as proof that complexity itself presents no barrier to the commercial model. Bowdon thus misses yet a third central point of my book.

While smartphones as well as their networks are clearly complex, they are discrete goods and services, respectively, and consequently comport with the commercial model because their effectiveness may be easily judged. In the case of primary and secondary schooling, however, the immediate consumer is a child or adolescent while the parent is at a necessary distance. School districts are accordingly well justified in outsourcing discrete services like busing or food preparation to commercial operators but not a complex service like school management. The implicit information asymmetry in the latter case generates significant potential for moral hazard.

Samuel E. Abrams

New York, N.Y.

Here is the heavily edited and sharply reduced version that Barron’s published, along with a defensive comment by the book editor:

Missing the Point

To the Editor:

In faulting me in his review of Education and the Commercial Mindset for focusing on the failure of Edison Schools rather than the success of National Heritage Academies, or NHA, Bob Bowdon misses a central point of my book (“Slurring Charter Schools,” Balancing the Books, Sept. 2).

Edison was the standard-bearer of a movement hailed by Wall Street analysts in the 1990s to outsource the operation of public schools to for-profit educational management organizations. Analysts forecasted that Edison and similar EMOs surfacing in its wake would run 10% to 20% of the country’s public schools by 2010 and reward investors handsomely. By 2010, the portion of public schools run by EMOs was 0.7% and hasn’t changed since. Moreover, investors in Edison saw the stock plummet 90% from when it was taken public with much fanfare by Merrill Lynch in 1999, to the time it was taken over in 2003 by the private-equity firm Liberty Partners, which, in turn, sold Edison in 2013 for 80% less than it had paid.

Samuel E. Abrams
New York City

Editor Gene Epstein replies: Bowdon wrote that Edison was a case of “switching a government-run monopoly for a privately run monopoly.” That was the reason he dismissed Edison for not being an example of competitive alternatives to government-run schools. Abrams misses this central point, apparently expecting Bowdon to be impressed by the fact that Edison was “hailed by Wall Street analysts.”

Categories Corporate Reformers, Education Industry, Education Reform, For-Profit, Privatization

Bad News for Bridge International Academies

By dianeravitch
September 10, 2017 //
26

The Liberian government received a report on the various for-profit corporations providing schooling. The bottom line: scores went up, but the cost of services varied dramatically. The most expensive of all the providers was Bridge International Academies, the for-profit corporation that is funded by Bill Gates, Mark Zuckerberg, and other luminaries of the tech sector. Their costs were so much higher than that of any other service that it is doubtful that they are sustainable.

The so-called Partnership schools received double the funding of the public schools: $100 instead of only $50. And the Ministry of Education made sure that the Partnership schools were well-supplied with teachers, including the best-trained.

Four of the networks managed to produce results for less than $100 per pupil. Bridge, however, cost more than $1,000 per pupil, a figure dramatically higher than any other network, and their results were not markedly better.

Will Nicholas Kristof reconsider his fulsome praise for Bridge International Academies? The skeptics were right to be concerned about sustainability and scalability. Why did the billionaires think it was a good idea to try to turn a profit off the backs of the poorest people in the world? These Silicon Valley geniuses may be good at selling product, but they are not very good at creating or providing an education system.

Download the brief here.  Download the report here.

 

Categories Education Industry, Education Reform, For-Profit, International, Privatization

How Michigan Gambled on Charter Schools and the Children Lost

By dianeravitch
September 6, 2017 //
9

More than any other state, Michigan placed its bets on charter schools. This article shows what happened. Republican Governor John Engler sold his party on the miracle of school choice. Betsy DeVos jumped on the Choice bandwagon and financed its grip on the legislature. Although the article doesn’t mention it, Betsy and her husband funded a voucher referendum in 2000 that was overwhelmingly defeated.

The author Mark Binelli describes the mess that choice and charters have made of the state’s education system. The state is overrun by unaccountable charters, most of which operate for profit.

The damage has fallen most heavily on black children, especially in Detroit and in the districts where the state installed emergency managers and gave the public schools to for-profit charter operators.

Rich districts still have public schools.

Binelli writes:

“Michigan’s aggressively free-market approach to schools has resulted in one of the most deregulated educational environments in the country, a laboratory in which consumer choice and a shifting landscape of supply and demand (and profit motive, in the case of many charters) were pitched as ways to improve life in the classroom for the state’s 1.5 million public-school students. But a Brookings Institution analysis done this year of national test scores ranked Michigan last among all states when it came to improvements in student proficiency. And a 2016 analysis by the Education Trust-Midwest, a nonpartisan education policy and research organization, found that 70 percent of Michigan charters were in the bottom half of the state’s rankings. Michigan has the most for-profit charter schools in the country and some of the least state oversight. Even staunch charter advocates have blanched at the Michigan model.

“The story of Carver is the story of Michigan’s grand educational experiment writ small. It spans more than two decades, three governors and, now, the United States Secretary of Education, Betsy DeVos, whose relentless advocacy for unchecked “school choice” in her home state might soon, her critics fear, be going national. But it’s important to understand that what happened to Michigan’s schools isn’t solely, or even primarily, an education story: It’s a business story. Today in Michigan, hundreds of nonprofit public charters have become potential financial assets to outside entities, inevitably complicating their broader social missions. In the case of Carver, interested parties have included a for-profit educational management organization, or E.M.O., in Georgia; an Indian tribe in a remote section of Michigan’s Upper Peninsula; and a financial firm in Minnesota. “That’s all it is now — it’s moneymaking,” Darrel Redrick, a charter-school proponent and an administrator at Carver at the time I visited, told me.”

Categories Accountability, Betsy DeVos, Charter Schools, Corporate Reformers, Deregulation, Detroit, Education Industry, Education Reform, For-Profit, Michigan

Peter Greene: The Branded Classroom of Tomorrow

By dianeravitch
September 4, 2017 //
19

Peter Greene read the article in the New York Times about the new trend to introduce brands into the classroom and imagined what the classroom of Tomorrow would look like.

He begins:

“Good morning,children, and welcome to today’s classes in the Mr. Edbrand Fifth Grade Room, brought to you by Exxon here at Apple Elementary School. I’ll remind you that all Samsung devices and Microsoft Surface tablets must be placed in the big box just outside the door. As usual we’ll be recording and webcasting today, and only properly sponsored materials can be shown on camera.

“Oh, Chris– you brought in your signed clearances from home? Excellent– you can finally move your desk out of the cupboard and join your classmates on camera.

“Today we’re going to continue working on this week’s essay, “Why Pepsi Is the Most Refreshing Drink.” Remember, we’re going to be writing them with the new Edutech Markotron 5000s that came in yesterday. No, Ronny– you’re trying to hold your Markotron like a pen or pencil– just flip your wrist so your hand is upside down and backwards– the Markotrons work fine if you just change the way you write. At recess we’ll be trying out the new game from EduGo– did everyone sign their decline-of-liability forms? And while at your work stations, remember not to slouch so that the new DataGrabber Mining Module can track every part of your facial expressions.

“I’ll also remind you that part of your class requirement is to post a picture from class on Instagram or Twitter; remember, you only get credit if you use the hashtag #MrEdbrandTeaches, because every day what…? That’s right– “Every day I’m increasing my digital footprint.”

Categories Corporate Reformers, Education Industry, For-Profit
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