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Peter Greene: Claudio Sanchez of NPR Sends a Love Note to the Charter Industry

By dianeravitch
March 2, 2017 //
48

Peter Greene reports on an NPR program explaining charter schools. Perhaps you thought the program would give equal time to charter advocates and charter critics. Perhaps you thought you thought the program might explain why charters are controversial. Perhaps you thought that NPR–supposedly a bastion of liberalism–might explain why Trump, DeVos, the Koch brothers, the Waltons, and every red-state governor–loves them. Or why blue-state Massachusetts voted overwhelmingly not to allow more of them.

http://curmudgucation.blogspot.com/2017/03/npr-explains-charter-schools.html?spref=tw

If you thought that, you guessed by now that none of those things happened.

Claudio Sanchez of NPR interviewed three charter cheerleaders and tossed them softball questions.

Maybe this is what NPR had to do to justify the subsidy it gets from the Walton Family Foundation.

For shame.

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

Arizona: Online High School,Collects $10 Million Profit in One Year, and DeVos Wants More of Them

By dianeravitch
February 28, 2017 //
12

Our new Secretary of Education Betsy DeVos is very enthusiastic about virtual charter schools, even though the research shows that students don’t learn much while enrolled in them. Apparently, good works mean less than good profits.

In Arizona, a new online high school is returning remarkable profits. Jim Hall, retired educator, started an organization called Arizonans for Charter School Accountability, and he has a well-documented, horrifying story to tell about the defrauding of taxpayers.

News Release Contact Jim Hall

Arizonans for Charter School Accountability
arizcsa1000@gmail.com
602-343-3021
February 27, 2017
Phoenix, Arizona

The Consequences of Unregulated Charter Schools:

For-Profit American Virtual Academy Nets $10 Million Profit in 2016 After Siphoning $84 Million from Non-Profit Primavera Online. (Full report)

In its first year of operation as Primavera Online High School, for-profit charter holder American Virtual Academy (AVA) made an astounding $10 million profit in 2016. American Virtual Academy was given the charter for Primavera Online by non-profit Primavera Technical Learning Center (PTLC) in 2015 without compensation.

PTLC operated Primavera Online from 2002 to 2015 and had annual revenues of over $30 million a year with accumulated total cash assets of over $44 million with no debt. PTLC was the richest non-profit charter holder in Arizona in 2015.

On May 21, 2015 the PTLC Board suddenly decided to relinquish their charter to their software supplier, American Virtual Academy. There was no money exchanged in the transaction. PTLC is now out of the charter school business and is sitting on $44 million in assets.

Both PTLC and AVA were incorporated and directed by the same man, Damian Creamer. Creamer and his family members have received over $2 million in compensation as officers of PTLC. PTLC has employed Creamer’s software company, American Virtual Academy, since 2005 – paying AVA over $84 million from 2009 -2015 just to use software created by Creamer for Primavera Online.

In 2016 Primavera Online had a record year earning over $40 million. Creamer paid his new software company, FlipSwitch Inc., $13 million for software licenses and another $2.5 million for software support. Despite these huge expenditures, AVA cleared $10 million in profit that went to the company’s only stockholder, Damian Creamer.

Jim Hall, founder of Arizonans for Charter School Accountability commented, “This is worst case of a private citizen profiting from the actions of a non-profit organization imaginable. There is a charade going on in the charter school industry, both in Arizona and around the nation, that allows charter owners like Damian Creamer to control non-profit charter schools to enrich their for-profit subsidiaries – and themselves.”

The full report is at azcsa.org

Categories Accountability, Arizona, Charter Schools, Education Industry, Education Reform, For-Profit, Privatization, Virtual Charter Schools

Florida: How Charter Schools Are Used to Hide Dropouts and Game the System

By dianeravitch
February 22, 2017 //
21

Heather Vogell and Hannah Fresques published an important piece of investigative journalism that appears in ProPublica and USA Today about a new twist on the charter scamming in Florida. The scam is the result of Jeb Bush’s high-stakes accountability system, which incentivizes schools to get rid of low-performing students in order to maintain their letter grades and rankings.

Here is the shorthand: School officials nationwide dodge accountability ratings by steering low achievers to alternative programs. In Orlando, Florida, the nation’s tenth-largest district, thousands of students who leave alternative charters run by a for-profit company aren’t counted as dropouts. Is this why nationwide graduation rates are going up? Is this what Arne Duncan claimed credit for?

It begins like this:

TUCKED AMONG POSH GATED COMMUNITIES, and meticulously landscaped shopping centers, Olympia High School in Orlando offers more than two dozen Advanced Placement courses, even more afterschool clubs, and an array of sports from bowling to water polo. U.S. News and World Report ranked it among the nation’s top 1,000 high schools last year. Big letters painted in brown on one campus building urge its more than 3,000 students to “Finish Strong.”

Olympia’s success in recent years, however, has been linked to another, quite different school five miles away. Last school year, 137 students assigned to Olympia’s attendance zone instead attended Sunshine High, a charter alternative school run by a for-profit company. Sunshine stands a few doors down from a tobacco shop and a liquor store in a strip mall. It offers no sports teams and few extra-curricular activities.

Sunshine’s 455 students — more than 85 percent of whom are black or Hispanic — sit for four hours a day in front of computers with little or no live teaching. One former student said he was left to himself to goof off or cheat on tests by looking up answers on the internet. A current student said he was robbed near the strip mall’s parking lot, twice.

Sunshine takes in cast-offs from Olympia and other Orlando high schools in a mutually beneficial arrangement. Olympia keeps its graduation rate above 90 percent — and its rating an “A” under Florida’s all-important grading system for schools — partly by shipping its worst achievers to Sunshine. Sunshine collects enough school district money to cover costs and pay its management firm, Accelerated Learning Solutions (ALS), a more than $1.5 million-a-year “management fee,” 2015 financial records show — more than what the school spends on instruction.

But students lose out, a ProPublica investigation found. Once enrolled at Sunshine, hundreds of them exit quickly with no degree and limited prospects. The departures expose a practice in which officials in the nation’s tenth-largest school district have for years quietly funneled thousands of disadvantaged students — some say against their wishes — into alternative charter schools that allow them to disappear without counting as dropouts.

Keep reading. It is a shocking story, especially in light of the fact that Betsy DeVos is so impressed with Florida’s “success” that she wants to use it as a model for the nation. She surely can’t use her home state of Michigan as a model in light of its precipitous decline in national rankings on NAEP. What Florida and Michigan have in common, however, are for-profit charter chains, where the owners profit handsomely but the kids do not.

Categories Accountability, Betsy DeVos, Charter Schools, Corporate Reformers, Education Industry, Florida, For-Profit, Fraud, Graduation rates, Hoax, Privatization

Who Profits from For-Profit “Higher Education”? Squalor, at the Expense of Students

By dianeravitch
February 21, 2017 //
3

This is a story I published last June.

It is more timely than ever now that Trump and Devos, both of who love the for-profit sector, have taken charge of the federal role in education.

For shame!

Categories For-Profit, Fraud, Higher Education

For-Profit “Universities” Set to Cash in During Trump Era

By dianeravitch
February 21, 2017 //
7

During the Obama years, it appeared that the federal government was going to start cracking down on the for-profit “higher education” industry, which typically gets horrible results and loads students with debt. (As I have reported in the past, former officials of the Obama Department of Education bought control of one of the nation’s largest for-profit college chains.)

But with the election victory of Donald Trump, sponsor of the fraudulent Trump University, the stock prices of for-profit education corporations went through the roof. Why would anyone expect a man who profited as founder of Trump University to crack down on others doing the same?

The New York Times reports:

Since Election Day, for-profit college companies have been on a hot streak. DeVry Education Group’s stock has leapt more than 40 percent. Strayer’s jumped 35 percent and Grand Canyon Education’s more than 28 percent.

You do not need an M.B.A. to figure out why. Top officials in Washington who spearheaded a relentless crackdown on the multibillion-dollar industry have been replaced by others who have profited from it.

President Trump ran the now-defunct Trump University, which wound up besieged by lawsuits from former students and New York’s attorney general, who called the operation a fraud. Within days of the election, Mr. Trump, without admitting any wrongdoing, agreed to a $25 million settlement.

Betsy DeVos, the newly installed secretary of education, is an ardent campaigner for privately run schools and has investments in for-profit educational ventures.

Please notice the use of the present tense “has.” Betsy DeVos did not divest her holdings in for-profit entities that are in direct conflict with her duties as Secretary of Education. Apparently in the Trump regime, ethics laws have been suspended for everyone, at least at the cabinet level.

While Ms. DeVos’s nomination attracted a flood of attention, most was focused on the K-through-12 system and the use of taxpayer-funded vouchers for private, online and religious schools. Higher education was barely mentioned during her confirmation hearings.

Yet colleges and universities are the institutions most directly influenced by the federal government, while public schools remain largely in the hands of states and localities. So it is in higher education that the new administration’s power is likely to be felt most keenly and quickly.

Under the Obama administration, the Education Department discouraged students from attending for-profit colleges, arguing recently that the data showed “community colleges offer a better deal than comparable programs at for-profit colleges with higher price tags.”

The for-profit sector has about 8 percent of those enrolled in higher education, according to the Education Department, but it has 15 percent of subsidized student loans.

While some career training schools delivered as promised, critics argued that too many burdened veterans, minorities and low-income strivers with unmanageable tuition debt without equipping them with jobs and skills that would enable them to pay it off.

After years of growing complaints and lawsuits, the agency moved aggressively to end abusive practices that ranged from deceptive advertising to fraud and cost students and taxpayers billions of dollars.

Two mammoth chains collapsed — Corinthian Colleges in 2015, and ITT Technical Institute in 2016 — leaving thousands of students stranded without degrees and in debt. Overall enrollment in for-profit institutions declined from 2.4 million in 2010 to 1.6 million in 2015 as hundreds of campuses closed. And as the largest provider of student loans, the federal government was left to bail out the defrauded.

Please open the article and check out the links.

Categories Accountability, For-Profit, Fraud, Higher Education

Kenyan Court Blocks For-Profit Bridge International Academies

By dianeravitch
February 19, 2017 //
4

For those of us who find for-profit schooling offensive, this is good news:

If you cannot read this email, follow http://bit.ly/2lT2vHG

Dear Diane,

A judgement delivered yesterday by a Kenyan Court upholds the action taken by Busia County Government to close down ten Bridge International Academies – the largest and most contested chain of low-cost private schools – for violating education norms and standards. It marks a turning point and must signal a move towards fulfilling the right to education in Kenya and other countries, say five organisations. This could be a landmark case as the legality of Bridge Academies’ operations is increasingly contested in Kenya and Uganda.

Nairobi, Kenya, 17 February 2017

Just over a month after the High Court of Kampala, in Uganda, allowed the Ugandan Government to close all schools run by Bridge International Academies (BIA) in the country, the High Court of Kenya in Busia County announced yesterday in a similar case that the Busia County Education Board could proceed in closing ten Bridge schools operating in the Busia county for failing to meet education standards.

Hon. Justice Korir ruled yesterday that it dismissed a complaint from Bridge, which sought to contest a decision by the Busia County Education Board to close their schools. The judge allowed Busia County to close 10 of the schools for which there were school inspection reports recommending closure, out of the 12 in the County. He ordered that the Bridge schools remain open until the end of the current school term (in April), for the County to secure placement in a public school for the affected children. The Busia County has 45 days from the date of the judgement to show evidence that another school has been found for the children.

The County Education Board had decided in November 2014 to close Bridge schools in Busia for not complying with the minimum education standards, including failure to employ trained and registered teachers and managers, inappropriate facilities, and lack of an environmental impact assessment. After the Board moved to enforce its decision in March 2016, Bridge International responded by suing it and its director on the ground that they did not follow the adequate process.

“Beyond just the case of Busia, the Kenyan Ministry of Education has held various meetings with BIA to ask the company to comply with regulations. They wrote to the company at least twice on 17th November 2014 and 17th February 2016, based on internal reports raising concerns about BIA’s compliance with the law, apparently without success. The Kenya Ministry of Education wrote again to BIA on 31st August 2016 with a 90-day deadline until 30th November last year to comply with guidelines and standards. It seems that rather than complying with Kenyan laws, which they’ve had ample time to follow since they opened in Kenya in 2009, BIA keeps on using delaying tactics. The decision shows that the County of Busia was right in demanding standards to be enforced. It is time for the rule of law to be respected. Children’s rights are not negotiable, even by powerful international companies,” reacted Abraham Ochieng, from the Kenyan organisation East African Centre for Human Rights (EACHRights).

The judgement confirms that, contrary to what the company has claimed, BIA had been duly informed by the local and national authorities of the legal requirements it had to follow, but failed to take appropriate action to meet those standards.

Boaz Waruku, from the Africa Network Campaign on Education For All (ANCEFA), commented: “This judgement adds to the similar one in Uganda and is a strong affirmation that Bridge schools do not comply with the minimum education standards in the region. We’re extremely concerned that Bridge Academies, an international profit-driven company with investments that are counted in several billions of Kenya shillings, can come to African countries and charge fees from poor children in our communities without respecting basic laws and education standards of the country.”

Sylvain Aubry, of the Global Initiative for Economic, Social and Cultural Rights (GI-ESCR) added: “Put simply, together with the Ugandan case, this judgement shows that a multi-million dollars American company, which has the means and resources to comply with regulations, is not fulfilling basic educational standards of two African countries in which it operates. Two UN human rights committee have already raised concerns about this situation. The Government and County authorities are therefore right in taking steps to fulfil their human rights obligations by engaging in dialogue with operators that do not respect standards, and eventually closing them if necessary. It will now be important for the Government to ensure all children affected have access to public schools, as requested by the Judge.”

The decision comes shortly after the Kenya education Cabinet Secretary, Dr Fred Matiang’i, declared that he agreed with a report from the Kenya National Union of Teachers (KNUT) and Education International (EI) which highlighted the low standards of Bridge schools and the contravention with national law. The report, titled Bridge vs. Reality: a study of Bridge International Academies for-profit schooling in Kenya, also emphasised the lack of training and difficult working conditions of the teachers, as well as the high hidden fees charged by the company. During the launch of the report on 5 December 2016, Dr Fred Matiang’i, indicated that he would take a decision soon as to the course of action, as reported in the local and international media.

In line with the civil society statements for the case in Uganda, the five organisations signing this statement call on the Kenyan Government to ensure timely and orderly transition of affected students to nearby government schools to ensure the uninterrupted full realisation of the right to education of all children. The signatory organisations also remain highly concerned that BIA’s shareholders, among them high profile investors such as Mark Zuckerberg, Omidyar, Novastar, the World Bank Group, the British development agency and the U.S. Government’s development finance institution could be failing on their due diligence obligations and responsibilities, which might have legal implications.

The organisations supporting this statement are ready to work with the County of Busia, the Government of Kenya, and other interested authorities to support the development of a quality public education system in which all schools comply with human rights norms and standards.

*************************
Background on Bridge International Academies
Bridge International Academies Ltd (BIA) is an American based company registered in Delaware. Operating for-profit the company runs a commercial, private chain of nursery and primary schools. With over 400 institutions and 100,000 children in enrolled BIA schools, it is the largest chain of commercial private schools worldwide.

BIA is one of the most controversial chains of private schools. The use of standardised curriculum developed abroad, the poor working conditions of teachers and the robotization of their work, profit-making by charging poor families in informal settlements, and questions about its respect for some national education and health and safety standards are some of the most debated aspects of Bridge’s operations.

BIA has received funding from several large corporations, investors and development partners including the Omidyar Network founded by the billionaire creator of eBay, Pearson (the world’s largest educational business), Novastar Ventures, Kholsa Ventures, philanthropist Bill Gates, Facebook founder’s Zuckerberg Education Ventures, the International Finance Corporation (a branch of the World Bank Group), the UK’s Commonwealth Development Corporation (with funds from the Department for International Development – DFID) and the US Government Overseas Private Investment Corporation.

The company opened its first school in Mukuru kwa Njenga slum in Kenya in 2009, by 2015 the company had 405 schools in Kenya, as well as other schools in Uganda, Nigeria, Liberia, and India. BIA seeks to grow further with the aim of reaching 10 million students by 2025.

Key Documents
· Court judgement: http://bit.ly/2kRzxnG
· Information statement on ongoing cases involving Bridge International Academies in Kenya and Uganda: http://bit.ly/2eFckEp
· Human rights bodies statements related to States’ obligations with regards to Bridge International Academies: http://bit.ly/2fXvM11
· Human rights analysis of data on Bridge Academies in Kenya http://bit.ly/2h66Br3 and related blog post http://bit.ly/2kngeEW
· Kenya National Union of Techers (KNUT) and Education International (EI) report (December 2016) on BIA in Kenya: Bridge vs. Reality: a study of Bridge International Academies for-profit schooling in Kenya: https://download.ei-ie.org/Docs/WebDepot/Bridge%20vs%20Reality_GR%20Report.pdf
· Education International report (sept 2016) on BIA in Uganda: Schooling the Poor profitably: the innovations and deprivations of Bridge International Academies in Uganda: http://bit.ly/2cSQidq
· August 2016 statement by civil society on the closure of BIA in Uganda: http://bit.ly/2fTQM8Q
· May 2015 statement signed by 120 organisations related to the World Bank’s support to BIA: http://bit.ly/statementWBprivatisation
· July 2016 UN Resolution urging States to regulate education providers and support public education: http://bit.ly/PRHRC2016eng

Key Contacts
· EACHRights: Abraham Ochieng’, info@eachrights.or.ke; abraham@eachrights.or.ke; +254701670090
· ANCEFA: Boaz Waruku, +254 722 663290⁠, boaz.waruku@gmail.com
· GI-ESCR: Sylvain Aubry, sylvain@globalinitative-escr.org, +254 7 88 28 96 34

Signatories
· Africa Network Campaign on Education For All (ANCEFA)
· East African Centre for Human Rights (EACHRights)
· Global Initiative for Economic, Social and Cultural Rights
· Hakijamii
· Right to Education Project

Categories For-Profit, International

Jeff Bryant: How DeVos Strengthened Progressive Forces in Education

By dianeravitch
February 11, 2017 //
37

Jeff Bryant pulls together persuasive evidence that Betsy DeVos energized a movement that was previously scattered and disconnected. People who had no idea that the privatization of public schools is a genuine threat became informed. Groups began forming at the grassroots level to defend their community’s public schools. Supposedly “progressive” Democrats supported privatization by charters because they were hoodwinked by fake reformers promising fake miracles. For those of us fighting privatization, DeVos clarified what is at stake: the survival of democratically-controlled, community-based public schools, responsible for all children.

Even Senators like Michael Bennett and Corey Booker voted against DeVos, even though they fundamentally agree with her view of school reform by school choice.

Make no mistake: School choice was born in racism and it promotes racism.

Jeff Bryant writes:

“Betsy DeVos may have won her contest in the Senate to become the new U.S. Secretary of Education, but her opposition wasn’t the only thing that went down to defeat that day.

“For decades, federal education policies have been governed by a “Washington Consensus” that public schools are effectively broken, especially in low-income communities of color, and the only way to fix them is to apply a dose of tough love and a business philosophy of competition from charter schools and performance measurements based on standardized tests.

“Since the 1990s, this consensus among Democrats and Republicans has enforced all kinds of unproven “reform” mandates on schools, and by 2012, as veteran education reporter Jay Mathews of The Washington Post noted that year, the two parties were “happily copying each other” on education.

“Democrats have in recent years sounded – and acted – a lot like Republicans in advancing corporate education reform, which seeks to operate public schools as if they were businesses, not civic institutions,” writes Valerie Strauss, the veteran education journalist who blogs for the Washington Post. “By embracing many of the tenets of corporate reform — including the notion of ‘school choice’ and the targeting of teachers and their unions as being blind to the needs of children – they helped make DeVos’s education views, once seen as extreme, seem less so.”

“But with the election of President Donald Trump and the ascension of DeVos to secretary, that consensus appears dead.

“She would start her job with no credibility,” Education Week quotes Democratic Senator Patty Murray of Washington. “A vote for Betsy DeVos is a vote for a secretary of education who is likely to succeed only in further dividing us on education issues.”

“The DeVos vote reflected the tribal, dysfunctional, polarized nature of our politics,” writes Woodrow Wilson Center senior scholar Linda Killian in USA Today. “It is a harbinger of things to come.”

“But what looks like the death of a political consensus on education could be the beginning of something else: an opportunity for progressives to press a new education agenda. Here’s what should they do.”

He proceeds to write about next steps. Read them.

Here is one you can take right now. Join the Network for Public Education. DeVos caused a huge spike in our membership. She has made parents and educators and graduates of public schools aware that they must stand together and fight the DeVos-Trump agenda of charters, vouchers, cybercharters, for-profit schools, homeschooling. Just remember when she speaks soothing words about public schools, she wants to take funding away from them to share with all those private choices.

When Eli Broad talks about charters, he is endorsing the DeVos agenda. When Democrats for Education Reform, Families for Excellent Schools, Stand for Children, Bill Gates, and other billionaires sing the praises of charter schools, they are singing from the DeVos privatization hymnal.

When Anthony Cody and I started the Network

Categories Accountability, Betsy DeVos, Broad Foundation, Charter Schools, Corporate Reformers, Democrats for Education Reform, Education Industry, Education Reform, For-Profit, Gates Foundation, Bill Gates, Privatization

Leonie Haimsom: After the Confirmation, What’s Next?

By dianeravitch
February 8, 2017 //
21

Leonie a Haimson, leader of Class Size Matter and board member of the Network for Public Education, reviews the drama of the last week and looks ahead.

“So it happened as predicted; Mike Pence cast the tie-breaking vote for Betsy Devos this afternoon.
Though disappointing it was in its way historic: the only time in US history that a Cabinet secretary needed the vote of the Vice President to be approved.

“The last few weeks have been historic in another way: Never have parents, teachers and concerned citizens been so outraged and activated over an education official or issue. Never have so many called, rallied, protested, faxed and written letters to their Senators, in an “avalanche” that nearly flattened Capitol Hill, overwhelming and shocking Senators of both parties….

“We need to sustain the activism and involvement we exercised in this battle and keep speaking out loudly and firmly to let education policymakers at the federal, state and local levels know that we will not stand idly by while our public schools are defunded, dismantled and privatized.

“One issue little noticed by the media: it was widely recognized how avid Betsy DeVos has been to allow for-profit charters and vouchers to draw funds from the public schools. What was little noticed is her devotion to online learning and questionable ed tech solutions. These will just as surely divert resources from the proven strategies that provide students with the support and human feedback they need. It was reported that the one financial company she refused to divest from is Neurocore that runs “brain performance centers” via biofeedback to treat autism and attention deficit disorder with no evidence of efficacy.

“In 2015, while speaking at SXSW Edu, that annual Kumbaya gathering of the technology tribe, DeVos sounded exactly like Bill Gates:

It’s a battle of Industrial Age versus the Digital Age. It’s the Model T versus the Tesla. It’s old factory model versus the new Internet model. It’s the Luddites versus the future. We must open up the education industry — and let’s not kid ourselves that it isn’t an industry — we must open it up to entrepreneurs and innovators.

This is how families without means will get access to a world-class education. This is how a student who’s not learning in their current model can find an individualized learning environment that will meet their needs.
We are the beneficiaries of start-ups, ventures, and innovation in every other area of life, but we don’t have that in education because it’s a closed system, a closed industry, a closed market. It’s a monopoly, a dead end. And the best and brightest innovators and risk-takers steer way clear of it. As long as education remains a closed system, we will never see the education equivalents of Google, Facebook, Amazon, PayPal, Wikipedia or Uber. We won’t see any real innovation that benefits more than a handful of students.”

“Surely, we will need all your activism in the battles to come – whether it be against the expansion of charters, the use of tuition tax credits or vouchers, or wasteful ed tech scams — all of which would divert precious resources from our public schools. Now that we’ve woken up our elected officials to the fact that parents and teachers and citizens fiercely love their public schools, and will do nearly anything to preserve, protect and support them, we must continue to speak out.

Categories Betsy DeVos, Education Industry, For-Profit, Online Learning, Privatization, Technology

Today the Fight to Save Our Public Schools Begins

By dianeravitch
February 8, 2017 //
39

The Network for Public Education will watch what Betsy DeVos does and report it to you immediately.

We will keep you informed about what the privatizers are doing in your state and community.

We will help you connect with other people in your state who are mobilizing to stop privatization.

The fight to save public education will happen in communities and districts, at the grassroots level.

We ask you to join us, become active, send us action alerts about meetings, protests and demonstrations in your district or town or city so we can help you get the news out.

Here is information you can use:

Get everyone you can to join NPE. Sign them up

http://networkforpubliceducation.org/become-a-member/

Tell others on Facebook to join. We will be mobilizing in the months ahead.

Create a local group in support of public schools. Use Facebook or create a website. Then join our Grassroots Network.

http://networkforpubliceducation.org/grassroots-education-network-3/

Read our emails. We will be regularly launching campaigns at the national and state level.

Make a donation. If we are to fight this we will need funds. http://networkforpubliceducation.org/about-npe/donate/

Together, we will build a movement so powerful that we can beat Donald Trump, Betsy DeVos, and all others who aim to privatize our public schools. Together we can keep the for-profit privateers and frauds out of our schools.

Work with us. We need your help.

Categories Betsy DeVos, Budget Cuts, Charter Schools, Corporate Reform, Democracy, For-Profit, Fraud, Network for Public Education, Networkfor Public Education Action Fund, Privatization, Trump, Vouchers

Jim Hall: Arizona Charter Operator Makes Millions by Real Estate Deals with Taxpayer Money

By dianeravitch
February 4, 2017 //
3

Jim Hall, whom I wrote about in the previous post, has uncovered many charter scams in Arizona. Here is his latest report. Open the link to read his attachments and documentation.

Arizonans for Charter School Accountability

arizcsa1000@gmail.com
602-343-3021

The Consequences of Unregulated Charter Schools:

The Leona Group LLC Reaps Millions in Real Estate Profits While Arizona Taxpayers (and Students) Foot the Bill

Arizonans for Charter School Accountability recently released two reports on charter school classroom spending in 2016 (see links below) finding that 191 Arizona charter schools are efficiently run and spend more money in the classroom than on administration and facilities combined. A majority of charter schools, however, spend less on classroom instruction than on administration and buildings. Imagine Inc. and the Leona Group LLC manage the majority of schools spending more on administration and facilities than in the classroom.

This report focuses on the Leona Group LLC which manages 25 schools in Arizona (and over 60 schools total in five states) to try to understand why Leona Group LLC managed schools spend so little on classroom instruction.

These were the key findings:

In 2007, Bill Coats, the sole owner of the Leona Group LLC, sold 10 schools owned by Leona Group LLC to a non-profit foundation Coats created in 1998, the American Charter Schools Foundation ACSF), for $33,890,485 more than their market value.

Bill Coats maintains the same management control over the schools as he had when Leona Group LLC owned the schools but now has set management fees that are not based on student enrollment.

ACSF schools have declined in enrollment by 25% since their purchase in 2007.

Between 2007 and 2016 overall instruction spending in ACSF schools has declined from $2090/pupil to $1455/pupil while facilities costs increased from $1455/pupil to $2479/pupil.

The real estate windfall Bill Coats received in 2007 by selling schools to his own foundation has caused ACSF to cut classroom spending to among the lowest rates of any school in Arizona – to fund the excessive mortgages.

Jim Hall, founder of Arizonans for Charter School Accountability, stated “ The Leona Group LLC has made tens of millions of dollars selling schools to their own non-profit foundation for double their market value – and still retain complete management control. The schools now spend most of their budgets on mortgages and management. Arizona doesn’t monitor charter school spending so this kind of waste and abuse goes unnoticed.”

Hall continued, “ The Arizona Auditor General needs to monitor charter spending and the Arizona Board for Charter Schools needs to sanction charter schools that divert public funds to corporate profits at the expense of children in the classroom.”

Categories Arizona, Charter Schools, Corporate Reformers, Education Industry, For-Profit, Fraud, Privatization
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