Archives for category: For-Profit

Anita Senkowski is a fearless investigative blogger in Michigan who is the scourge of charter frauds. Her blogs, for example, exposed fraud at a charter chain that involved the misappropriation of millions of dollars, and the fraudster is bound for prison.

 

In this post, she examines the evangelical Christian roots of Neurocore, the biofeedback company that Betsy DeVos likes so much that she refuses to sell her stock despite the obvious conflict of interest with her role as Secretary of Education. Decisions made by the Department could enrich the company and her stock portfolio. Not that she needs the money.

 

Under normal circumstances, if a nominee for the Cabinet refused to divest a conflict of interest, that would be the end of his or her nomination. But these are not normal circumstances. We have a president who never released his tax returns and refuses to separate himself from control of his business empire, which is rife with conflicts of interest. He hasn’t even given up the 60-year lease on the Trump Hotel in D.C., a block from the White House, even though the lease with the Government Services Administration explicitly says that no elected official may be a beneficiary of the lease. Trump seems to live by the saying, “Never apologize, never explain.”

 

Senkowski also points out that the head of the company received his “degrees” from a for-profit online “university.”

 

Her Facebook site has this motto: “So sue me already.” Apparently no one has, because she is still biting the frauds, cons, and scams in northern Michigan. It sounds like a full-time job!

 

 

 

 

Democrats on the Senate Health, Education, Labor, and Pensions Committee requested another opportunity to question Betsy DeVos about her financial conflicts of interest, but Republicans quickly rejected their request. 

 

She may may enhance her family fortune by holding on to stocks in her portfolio that her actions will affect. Please don’t believe that billionaires don’t care about making more money. Some do, some don’t. DeVos’s refusal to eliminate all her education investments shows which kind of billionaire she is.

 

DeVos was so ill-informed at her only hearing that her remarks turned her into a national laughing stock. Republicans are protecting her by not giving Democrats another chance to allow her to embarrass herself.

 

The New York Times reports that billionaire Betsy DeVos refuses to sell her interest in Neurocore, a company that uses biofeedback to enhance brain functioning. She has a direct conflict of interest. Will that stop her nomination? I wouldn’t bet on it. It didn’t faze Republicans that she knows nothing about federal law regarding children with disabilities. Why should they care that she will use her position to enrich herself? When is enough enough?

 

The committee vote on DeVos will take place on January 31. Call your Senators’ offices. Speak to his or her aides. Urge them to vote NO on this unqualified, uninformed party debutante. She is not entitled to be Secretary of Education as payback for hundreds of millions of donations to the Republican Party.

 

 

“Betsy DeVos, the billionaire school choice advocate selected by President Donald J. Trump to serve as education secretary, is a strong supporter of using biofeedback technology to help children and teenagers enhance their performance in school.

 
“Ms. DeVos and her husband, Richard DeVos Jr., are major financial backers of Neurocore, a Michigan company that operates drug-free “brain performance centers” that claim to have worked with 10,000 children and adults to overcome problems with attention deficit disorder, autism, sleeplessness and stress.

 
“In an agreement with the Office of Government Ethics made public Friday, Ms. DeVos said that she had stepped down from the Neurocore board but that she would retain her financial interest in the company. She valued that stake at $5 million to $25 million in her financial disclosure statement.

 
“On Friday evening, Senator Lamar Alexander of Tennessee, the Republican chairman of the Health, Education, Labor and Pensions Committee, said he would delay the initial vote on Ms. DeVos’s nomination by a week, until Jan. 31, as Democrats argued that the process had been rushed through, without enough time to answer remaining questions about her financial disclosures.

 
“Ms. DeVos and her husband promote Neurocore heavily on the website for Windquest Group, a family office the couple use to manage some of their many investments. The website, for instance, includes a link to a Washington Post article about Kirk Cousins, a Washington Redskins quarterback who describes how he “retrained” his brain to better perform on the field by going to a Neurocore center.

 
“But the claims that Neurocore’s methods can help children improve their performance in school could present a conflict for Ms. DeVos if she is confirmed as education secretary — especially given that the company is moving to expand its national reach.

 
“Neurocore, founded about a decade ago, operates seven of the brain performance centers in Michigan and recently opened two in Florida. It has said it has plans to open as many as seven other centers across the country this year. Ms. DeVos’s financial disclosure shows that she and her husband have an indirect interest in the company through a family partnership.

 
“Richard W. Painter, a White House ethics adviser under President George W. Bush, said he was familiar with Neurocore and applauded the business and education concepts behind it — but he said the DeVoses would be better off selling their interests in the company.”

 

California teacher Jack Covey sent the following comment on this news story:

 

“I am very sensitive to the needs of students
with disabilities.”
— Betsy Devos, at her confirmation hearing,
in response to a question from Senator Murray.

 

I think we now may have a little clarity as to what
she meant by that remark … as in when such needs
benefit her investment portfolio.

 

QUICK BACKGROUND:

 

Neurocore — a totally unscientific, quack medical
“bio-feedback” company that claims to cure autism, ADHD, etc.
where it operates nine “brain performance centers,” where
the controversial “drug free” cures offered there are not recognized by
any entity or anyone in the mainstream medical establishment.
Despite its grandiose claims of success, Neurocore has never consented
to have these practices tested or investigated in peer-reviewed
studies.

 

… “snake oil” is how Jennifer “Edushyster” Berkshire
referred to it in a recent tweet:
https://twitter.com/EduShyster/status/822793877614710788

 

 

Indeed, the Michigan Dept. of Insurance has upheld
insurance company denials of coverage for any Neurocore
“cures” on the grounds that there is zero evidence supporting
the efficacy of any of their treatments. These repeated
denials and upholding of these denials contradict
Neurocore’s website, which claims that their treatments
are covered by insurance carriers.

 

Betsy and her husband are two of Neurocore’s main investors
via their umbrella company Windcrest, which also is the
main backer of that Boxed Water being peddled to
the struggling citizens of Flint, Michigan. (a photo
of Betsy at a school site, included a product placement
for this “Boxed Water.”)

 

Her stock ownership and membership on Neurocore board of directors
was discovered two days ago — alas, after her confirmation
hearings.”

 

The Trump administration is committed to bashing, trashing, and underfunding the nation’s public schools, while diverting federal funds to charters, religious schools, home schooling, and cybercharters.

 

There are three things we must do:

 

1) Fight back with every resource at hand

 

2) Laugh and keep up our spirits

 

3) Never lose hope

 

In the service of #2, I offer you the Bald Piano Guy, a teacher who will make you laugh out loud as he sings about the DeVos agenda for education.

This story was originally posted in May 2014. In light of the Trump-Pence privatization agenda, it bears reading again.

 

The Florida League of Women Voters released a bombshell study of charters across the state. The study shows that charter schools do not perform better than public schools; that charters are more segregated than public schools; that many charters funnel money to religious organizations; that a significant number of charters operate for profit; and that the charter industry has captured control of key seats in the legislature.

 

Here is the press release. Open the links and read the study. At the end of the press release is a list of state legislators identified by the LWV with “Conflict of Interest Concerns.”

 

FOR IMMEDIATE RELEASE
May 27, 2014

 

Contact:
Deirdre Macnab
LWVF President
Email: floridaleague@earthlink.net
Phone: (407) 415-4559

 

League of Women Voters Releases

State-Wide Study on School Choice

 

Tallahassee, Fla — Twenty percent of the state’s charter schools close because of financial mismanagement or poor academic standards, according to the League of Women Voters of Florida after a year-long study of charter schools in 28 Florida counties.

“Charter schools could fill a niche in Florida’s educational spectrum, but for many, their biggest contribution may be to corporate bottom lines,” said Deirdre Macnab, President of the League of Women Voters of Florida.

With over 576 charter schools in the state, the League of Women Voters of Florida conducted a study in order to better understand the oversight, management, accountability and transparency of charter and private schools in Florida.

The study found that:

Approximately one-third of charters are run by for-profit management companies. Many screen students, then drop those who are not successful, which public schools are prohibited from doing. Charters also serve particular socio-economic groups, increasing segregation in schools.

Although charters tend to be smaller than traditional schools, there is no consistent difference in achievement for charter school and public school students.

Many charters blur the distinction between religious and non-secular schools. Some churches receive as much as a million dollars in lease payments annually for their facilities from charter schools.

In areas with declining enrollments, neither the charters nor regular public schools are large enough to adequately provide support for staff like nurses or counselors. Retaining teachers is also a problem; most charters offer lower salaries and benefits than public schools.

The League’s study produced several recommendations:

Charters should be limited to those that fill unmet needs in identified local school districts.

Stronger local management oversight and disclosure policies are needed.

Financial mismanagement issues must be addressed, as too often the privatization of schools leads to financial abuse.

For more information, including further findings and recommendations, please see the state-wide study, along with the individual studies conducted by eighteen local Leagues across Florida.

###

The League of Women Voters of Florida, a nonpartisan political organization, encourages informed and active participation in government, works to increase understanding of major public policy issues, and influences public policy through education and advocacy. For more information, please visit the League’s website at: http://www.TheFloridaVoter.org.

FLORIDA LEGISLATORS WITH A DIRECT INTEREST IN CHARTER SCHOOLS:

Conflict of Interest Concerns

 Senator John Legg Chair of Senate Education Committee is co-founder and business administrator of Daysprings Academy in Port Richey.

 Senator Kelli Stargel from Orange County is on board of McKeel Academies. She is on the Education Committee and sponsored the Parent Trigger Bill.

http://www.theledger.com/article/20130429/EDIT02/130429282

 House Budget Chairman Seth McKeel is on the board of McKeel Academy Schools in Polk
County.

 Anne Corcoran, wife of future House Speaker Richard Corcoran has a charter school in
Pasco County. http://www.tampabay.com/news/education/k12/pascos-classical-prep- charter-school-delays-opening-for-a-year/1276912. Richard Corcoran is Chair of the House Appropriations Committee.

 Senator Anitere Flores of Miami is president of an Academica managed charter school in Doral.

 Florida Representative Erik Fresen is Chair of the House Education subcommittee on appropriations. Representative Fresen’s sister is the Vice President of Academica and is married to the president. http://www.tampabay.com/blogs/the-buzz-florida- politics/content/ethics-commission-clears-miami-rep-erik-fresen-alleged-voting-conflict.
http://www.miamiherald.com/2011/12/14/2545708_p2/company-cultivates-links-to-
lawmakers.html

 George Levesque, Florida House lawyer cleared Erik Fresen of conflict of interest
concerns over charter schools. He is the husband of Patricia Levesque, former Jeb Bush Deputy Chief of Staff and currently Executive Director of the Foundation for Excellence in Education which promotes school choice. http://www.truthabouteducation.org/1/archives/01-2010/1.html.

 Representative Manny Diaz is Dean of Doral Academy, an Academica managed school. He is the leader for the new statewide contract bill in the Florida House. Doral College was cited by the Florida Auditor General for a $400,000 loan from Doral Charter High School. Conflict of Interest and procurement for Charters with federal grants: http://floridacharterschools.org/schools/taps/conflictinterest_att.pdf

I originally posted this story in October 2016. In light of the Trump-Pence privatization agenda, it is worth reading again.

Pat Hall and Sue Legg of the Florida League of Women Voters have performed a public service by detailing how for-profit charter companies rip off taxpayers and cheat children.

You can be sure Jeb Bush will not assign this report when he lectures at Harvard this fall about the Florida “miracle” that no one can see other than himself and his hirelings.

Here is the beginning. Please note that 40% of taxpayer funds goes to the management company, not to educating students. What a racket!

Hall and Legg write:

“ANALYSIS OF CHARTER SCHOOL USA REAL ESTATE BUSINESS PRACTICES

“Florida now educates more than 230,000 students at more than 650 publicly funded charter schools. While many of these schools are providing good educational opportunities, we have found that the fundamental structure of the for-profit management companies, specifically Charter Schools USA, must be questioned. The following outline summarizes a very detailed report given the LWVF Board this past summer.

“1. CSUSA has six non-profit school boards that operate 49 schools in 12 urban counties in Florida. Additionally, CSUSA operates 17 schools in 6 other states.

“2. The six governing school boards cover the 49 charters and are run by CSUSA; they are not independent of the management companies.

“3. Inter related affiliated businesses include Red Apple Development, Ryan Construction Company, the Florida Charter Education Foundation and Connex (curriculum software). Furthermore, we found over 300 limited liability companies (LLCs) initiated by CSUSA.

“4. Facilities financing incorporates all aspects of land acquisition, site clearing, construction, bond financing and multimillion dollar lease fees. CSUSA charges the Hillsborough County School district at one of their four schools more than $30/square foot, significantly higher than downtown Tampa skyscrapers!

“5. Tracking expenditures of taxpayer monies is impossible due to for-profit business practices which are not transparent.

“6. Long term lease agreements, after flipping (changing deeds from one related company to the next) from Ryan Construction to Red Apple Development, are charged out 40 years, and charge rent and interest amounts on top of the lease payments. Most CSUSA lease fees in Hillsborough County take 25% of all taxpayer dollars designated for educating children. Some are even higher.

“7. Another 13% to 15% is charged by CSUSA for management fees, hence 40% of public money is not spent instructing children. State auditors have questioned how these costs are reported.

“8. Evidence exists of real estate “flipping” by CSUSA in Hillsborough County. This results in new real estate appraisals to increase value. Lease and rent costs use these values to justify cost charged to charter budgets.

“INTERIM REPORT: ANALYSIS OF CSUSA REAL ESTATE BUSINESS PRACTICES

“By Pat Hall and Sue Legg, LWVF Education Team, June 2016

“Introduction. District school boards grant charter school contracts to private entities and monitor their financial balance sheets, but by legislative intent, they do not have responsibility for their management and operation. Charters have little regulation, and the result has been a continuing saga of scandals. This report goes beyond the mismanagement and corruption issues to the fundamental structure of for-profit management companies, and it questions the accountability of these companies for their use of public funds. Charters may be self-managed or operated by non-profit or for-profit companies. We focus on one for-profit charter management company, Charter Schools, USA (CSUSA). Florida has several others including, Academica which was the focus of a federal investigation, and Newpoint charters which face indictments. A detailed example of the complex facility transactions for CSUSA’s Woodmont K-8 school raises the issue of excessive profiteering. We have data that indicate these business practices are not specific to one school or one company. CSUSA organizational structure: CSUSA is owned and operated by the CEO, Jonathan Hage. It has multiple interrelated entities whose operations are difficult to track. CSUSA has created six non-profit charter school boards to operate 49 publically funded, privately managed charter schools in 12 Florida counties. Additionally CSUSA operates 17 schools in 6 other states. These non-profit boards subcontract to the CSUSA for profit educational management firm which founded them.”

Excellent video on DeVos focusing on failure of charter schools in Detroit/Michigan, her support of for-profit charters; privatization agenda. Less than 10 minutes long; well produced; interviews with parents, film clips, etc.

 

Please circulate, especially to people who will call Senators on Health, Education, Labor Committee. DeVos hearing is this Tuesday.

 

Facebook link:

 
YouTube link: https://www.youtube.com/watch?v=47OC7wZbwzM&feature=youtu.be

 

 

Michigan has one of the worst charter sectors in the nation, according to the Detroit Free Press, which conducted a year-long investigation of charters in the state. The people of Michigan pay $1 billion a year for a sector in which 80% of the charters operate for profit, in which there is neither accountability nor transparency, in which conflicts of interests don’t matter. Billionaire Betsy DeVos and her husband Dick and other members of the DeVos family control education issues in the Republican-dominated legislature with their generous campaign contributions. Governor Rick Snyder is DeVos’s personal puppet. And the state continues to waste public money on failing schools because they are privately run. No regulation needed!

 

This is Billionaire Betsy DeVos’s idea of how education should work!

 

The Detroit Free Press writes:

 

Michigan taxpayers pour nearly $1 billion a year into charter schools — but state laws regulating charters are among the nation’s weakest, and the state demands little accountability in how taxpayer dollars are spent and how well children are educated.

 

A yearlong investigation by the Detroit Free Press reveals that Michigan’s lax oversight has enabled a range of abuses in a system now responsible for more than 140,000 Michigan children. That figure is growing as more parents try charter schools as an alternative to traditional districts.

 

In reviewing two decades of charter school records, the Free Press found:

 

Wasteful spending and double-dipping. Board members, school founders and employees steering lucrative deals to themselves or insiders. Schools allowed to operate for years despite poor academic records. No state standards for who operates charter schools or how to oversee them.

 

And a record number of charter schools run by for-profit companies that rake in taxpayer money and refuse to detail how they spend it, saying they’re private and not subject to disclosure laws. Michigan leads the nation in schools run by for-profits.

 

“People should get a fair return on their investment,” said former state schools Superintendent Tom Watkins, a longtime charter advocate who has argued for higher standards for all schools. “But it has to come after the bottom line of meeting the educational needs of the children. And in a number of cases, people are making a boatload of money, and the kids aren’t getting educated.”

 

According to the Free Press’ review, 38% of charter schools that received state academic rankings during the 2012-13 school year fell below the 25th percentile, meaning at least 75% of all schools in the state performed better. Only 23% of traditional public schools fell below the 25th percentile.

 

Advocates argue that charter schools have a much higher percentage of children in poverty compared with traditional schools. But traditional schools, on average, perform slightly better on standardized tests even when poverty levels are taken into account.

 

In late 2011, Michigan lawmakers removed limits on how many charters can operate here —opening the door to a slew of new management companies. In 2013-14, the state had 296 charters operating some 370 schools — in 61% of them, charter boards have enlisted a full-service, for-profit management company. Another 17% rely on for-profits for other services, mostly staffing and human resources, according to Free Press research.

 

Michigan far exceeds states like Florida, Ohio and Missouri, where only about one-third of charters were run by a full-service, for-profit management company in 2011-12, according to research by Western Michigan University professor Gary Miron, who has studied charters extensively.

 

While the Free Press found disclosure issues with both for-profit and nonprofit companies, the state’s failure to insist on more financial transparency by for-profits — teacher salaries, executive compensation, vendor payments and more — is particularly troubling to charter critics because the for-profit companies receive the bulk of the money that goes to charter schools. In some cases, even charter school board members don’t get detailed information.

 

Without that, experts say there is no way to determine if a school is getting the most for its money.

 

Authorizers in Michigan receive 3% of the state tuition money for every student who attends a charter school they authorize. That means millions of dollars flow to the authorizing groups, who have no responsibility or accountability. Anyone can open a charter school in Michigan. Charter schools can fail and be reauthorized. Charter operators can run failing schools and get to open new ones. Success is unimportant. Michigan is a free-for-all with public money.

 

State law sets no qualifications for charter applicants

 

In Michigan, anyone and everyone can apply to open a charter school. There are no state guidelines for screening applicants.

 

And in many cases, authorizers have given additional charters to schools managed by companies that haven’t demonstrated academic success with their existing schools.

 

Central Michigan University, for example, gave two additional charters to schools managed by the for-profit Hanley-Harper Group Inc. in Harper Woods, before its first school had any state ranking and despite test scores that showed it below statewide proficiency rates in reading and math. The school’s first ranking, released last year, put it in the 14th percentile, meaning that 86% of schools in Michigan did better academically.

 

“We have a product, yes, we are trying to sell and constantly working to make … better and better and better,” company founder Beata Chochla, who has run several small businesses, including janitorial and home health care, told the Free Press in an interview.

 

Ferris State University has authorized a fourth Hanley-Harper school, expected to open this fall in Oak Park.

 

“We were convinced they had a good plan,” Ferris State’s interim charter schools director Ronald Rizzo said, adding that critics who believe an operator should have a successful academic track record before adding schools are “welcome” to their views.

 

Authorizers also have been slow to close poor performers. Among the oldest and poorest performing schools in metro Detroit:

 

■ Hope Academy, founded in Detroit in 1998, ranked almost rock-bottom — in the first percentile — in 2012-13.

 

■ Commonwealth Community Development Academy, founded in Detroit in 1996, ranked in the third percentile.

 

Both schools are authorized by Eastern Michigan University, which said in a statement that it is not satisfied with either. Yet just last year, EMU renewed Hope Academy’s charter.

 

The article includes a list of recent charter scandals:

 

■ A Sault Ste. Marie charter school board gave its administrator a severance package worth $520,000 in taxpayer money.

 

■ A Bedford Township charter school spent more than $1 million on swampland.

 

■ A mostly online charter school in Charlotte spent $263,000 on a Dale Carnegie confidence-building class, $100,000 more than it spent on laptops and iPads.

 

■ Two board members who challenged their Romulus school’s management company over finances and transparency were ousted when the length of their terms was summarily reduced by Grand Valley State University.

 

■ National Heritage Academies, the state’s largest for-profit school management company, charges 14 of its Michigan schools $1 million or more in rent — which many real estate experts say is excessive.

 

■ A charter school in Pittsfield Township gave jobs and millions of dollars in business to multiple members of the founder’s family.

 

■ Charter authorizers have allowed management companies to open multiple schools without a proven track record of success.

 

Want to get rich quick? Move to Michigan and open a charter school.

 

 

The Salt Lake City Tribune published an impassioned opinion piece by educators in opposition to billionaire Betsy DeVos.

 

Here is a part of the article:

 

Now is the time to contact your members of Congress to proclaim — unequivocally — that the hope for the future of our children is directly connected to support for public education. President-elect Donald Trump’s nomination of Betsy DeVos as the next secretary of education delivers a severe blow to the future of public education. While her statements indicate a desire to provide all parents the opportunity to choose the best schools for their children, a deeper look into her promotion of unregulated, for-profit charters and vouchers indicates a very different agenda.

 

From the Reagan administration through the Obama administration, a market-based agenda has spread an often-inaccurate narrative — leading Americans to believe that our public schools, teachers and students are failing miserably. This story was used to steamroll the country with privatization mandates while shifting billions of tax dollars to those who manufactured the narrative.
This is a fine article that echoes both research and common sense.

 

Stop Billionaire Betsy before she does to the nation what she has done to Detroit.

K12 Inc. is the largest provider of online charter schools. This sector is probably the worst part of the charter industry. CREDO reported last year that for every 180 days of online enrollment, a student will lose 180 days in math, and 72 in reading.

 

At its shareholder meeting on December 15, a group of shareholders proposed that the corporation become transparent as to how much it spends on lobbying.

 

As reported on Valerie Strauss’s blog, shareholders wanted to know more:

 

At a meeting scheduled for Thursday, shareholders are going to ask for a vote on whether the company should be required to publicly disclose details about its lobbying efforts in various states. The Arjuna Capital shareholder resolution asks that K12 prepare an annual report showing:

 

Company policy and procedures governing lobbying, both direct and indirect, and grass-roots lobbying communications.
Payments by K12 used for (a) direct or indirect lobbying or (b) grass-roots lobbying communications, in each case including the amount of the payment and the recipient.
K12’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.
Description of the decision-making process and oversight by management and the board for making payments lobbying payments.

 

It is not known whether their efforts to get the company to disclose its lobbying activities were successful.

 

One of the proponents of transparency is Bertis Downs, who owns K12 Inc. stock and is a member of the board of directors of the Network for Public Education. He is a public school parent in Athens, Georgia.

 

Strauss wrote about him:

 

The new shareholder effort is being led by Bertis Downs, a public school advocate in Athens, Ga., who spent his career providing legal counsel and managing the rock group R.E.M., and who bought K12 stock a few years ago. Asked why he is taking this action, Downs said in an email:

 

My motivation in filing for this disclosure of K-12’s lobbying activities stems from my overall curiosity and interest as a parent and a shareholder in knowing more about what lobbying is done, whether through ALEC or directly, that leads to the so-called “education reform” laws being passed all over the country. How much does the company spend and how do they spend it and what results do they get for it? And is any of that good for meaningful teaching and learning in our schools? And is it good for the company and its shareholders?

 

At some point, parents should wake up and stop sending their children to these “schools.”