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Ohio: ECOT Received Even More than $1 Billion in State Money!

By dianeravitch
September 20, 2018 //
4

The Electronic Classroom of Tomorrow (ECOT) is the biggest online charter scandal in the nation, for now. The state poured more than $1 billion over 17 years into this for-profit enterprise, with no accountability until recently. After the state finally audited ECOT, it learned that there was no system in place to know whether students logged in, whether they participated in instruction, and commenced proceedings to recover at least $80 million. ECOT fought the state in court and lost. Rather than return the money, ECOT closed its doors.

Almost every Republican official running for statewide office received campaign funding from William Lager, the entrepreneur behind ECOT. Mike DeWine, the Republican candidate for governor, returned the ECOT money, but continues to accept contributions from other for-profit charter “schools.” Online charter schools everywhere have dismal records and are typically the worst-performing schools in every state where they are allowed.

One thing became obvious: the Republican elected officials who received Lager money showered ECOT with favors, including no-accountability, no oversight, and regular appearances as graduation speakers. It is striking how little money it cost Lager to buy their loyalty.

Bill Phillis, Ohio watchdog, writes here that ECOT got even more than the $1 billion that has been reported.

He writes:

Remember the Straight A Fund grants?

State Superintendent Dr. Richard Ross hatched the idea of passing out grants for school improvement via the Straight A Fund. Millions of dollars were distributed.

Incredibly, in fiscal year 2014, ECOT received a grant of $2,951,755 in Straight A Funds. (ECOT also received a huge grant of state money that was funneled through The Ohio State University.) ECOT over the years collected $130 million in federal funds. All these funds were in addition to the billion dollars ECOT took from school districts.

When ECOT received the $3 million Straight A Fund grant, at least some Ohio Department of Education (ODE) officials should have known that ECOT was collecting money for students not participating in the ECOT program.

The $3 million Straight A Fund grant to ECOT was for “A Personalized Learning Road Map for Every Math Student Grades 6-12…” During the 2015-2016 school year ODE found less than half of ECOT students were participating in any part of the ECOT program.

Obviously the grant didn’t reach all students-possibly not any students.

At this juncture in the ECOT saga, will there be any attempt to claw back any portion of state grants and federal dollars ECOT received? Did anyone at ODE monitor the ECOT expenditures of the federal and state grants?

Who is responsible for allowing ECOT to squander hundreds of millions of dollars?

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

Bill Phillis also posted this question from a public education advocate:


Jeanne Melvin, President of Public Education Partners (PEP), reveals a Michigan charter advocate’s political campaign donations to Ohio politicians

The charter industry has birthed a network of political campaign donors devoted to the expansion of the industry. Such groups as the American Legislative Exchange Council (ALEC), All Children Matter, Inc., (formerly run by Betsy DeVos), Michigan Mackinac Center for Public Policy and Democrats for Education Reform, influence state and federal legislation in support of the charter industry.

The idea that charters would be operated by teachers and parents in the context of a school district was hijacked. A charter industry has evolved which has spawned a multi-billion dollar support group. Education policy is primarily driven by campaign contributions from charter operators and charter support groups.

To the Editor:

I respond to the Sept. 2 Dispatch.com article “Which side is right in political battle over ECOT blame?” Why is the demand for accountability concerning the largest scandal in our state’s history being called a political battle?

Speaking up for our children and their families, as well as Ohio taxpayers, should never be considered a partisan issue.

There is no excuse for allowing this $1 billion charter school fraud to continue for 18 years. Concerns were raised about the cozy relationship between charter school boards and their management companies in 2002, and our elected officials looked the other way to protect their campaign coffers.

If Electronic Classroom of Tomorrow’s structural setup had been the same since 2000, why is Ohio Attorney General Mike DeWine finally taking legal action against William Lager? If it’s illegal now for Lager to direct taxpayer money to his companies, why wasn’t that problem handled years ago?

It’s nice to see that DeWine recently donated $12,533 in Lager contributions to charity, but sadly, he continues to take campaign cash from for-profit charter school companies.

On Aug. 31, his campaign received $10,000 from J. C. Huizenga, a member of the board of directors of the Mackinac Center for Public Policy “think tank.”

Huizenga is also one of the major funders of All Children Matter Inc., which still owes Ohio a $5.3 million election fine. The unpaid fine dates back to 2008, when All Children Matter – a group that lobbied for school-choice legislation and was run by Betsy DeVos – broke Ohio election law by funneling $870,000 in contributions through its nationwide PAC to its Ohio affiliate, according to the Ohio Elections Commission.

Huizenga’s company, National Heritage Academies, is affiliated with the American Legislative Exchange Council and sits on its Education Task Force. Through ALEC, corporations, ideologues and their politician allies follow an aggressive agenda to legalize spending public tax dollars to subsidize private K-12 education such as charter schools.

It’s time for Ohio voters to elect pro-public education candidates in November. Our children are counting on us.

Jeanne Melvin, Columbus

Huizenga’s charter chain, National Heritage Academies, operates for profit. He is a close associate of Betsy DeVos.

Categories Corruption, For-Profit, Ohio, Virtual Charter Schools

Mercedes Schneider: Conflicts of Interest, Common Core, Gates Foundation, and the Thomas B. Fordham Institute

By dianeravitch
September 20, 2018 //
37

Mercedes Schneider reviews an exhaustive report by Richard Phelps about the origins, policies, and practices of the Thomas B. Fordham Institute.

I approach this topic with caution because I was a founding board member of the Thomas B. Fordham Foundation and Institute. I was a close friend of Checker Finn, until I broke ranks and turned against the conservative activism in which TBF is a prominent actor. I don’t say bad things about Checker or Mike Petrilli. But I don’t agree with them, I think they are doing immeasurable damage to public education, and I regret that they lack the ability to be self-critical or reflective. When I was on the board, I strongly opposed the decision to accept funding from the Gates Foundation. I said it would compromise TBF’s independence. I was right. I opposed the board’s decision to become a charter authorizer in Ohio, where TBF is technically located. I thought that a think tank should not be a charter authorizer. That was well before I took issue with the whole conservative package of standards, testing, accountability, and choice.

Read the entire Phelps’ report.

Phelps raises a serious issue of “donor intent” and whether it was honored. The TBF Funds were intended by their owner to be used strictly for charitable purposes, Phelps writes, never to benefit any individual nor to influence legislation. When I was a member of the board, I was unaware of these restrictions. Mrs. Thelma Fordham Pruett’s lawyer was Checker Finn’s father. He was chairman of the board of the TBF foundation. He decided that the funds—about $35 Million—were not restricted, and he turned them over to his son, who became CEO of the new foundation and used the funds to promote a highly political agenda of education reform. The Fordham Institute has led the way in advancing privatization by charters and vouchers in Ohio. Nationally, it was and is a leading voice in promoting the Common Core standards. Gates paid millions of dollars to TBF both to evaluate the Common Core and to advocate for it.

This is a very troubling report.

Categories Accountability, Common Core, Education Reform, Gates Foundation, Bill Gates, Ohio, Philanthropy

Ohio: After ECOT Scandal, Why is Mike DeWine Still Taking Money From For-Profit Charter Operators?

By dianeravitch
September 16, 2018 //
10

An ally in Ohio read NPE’s “Hijacked by Billionaires,” about the purchase of elections by the rich, and she wrote this letter to the editor:


There is no excuse for allowing the ECOT $1 billion charter school fraud to continue for 18 years. Concerns were raised beginning in 2002, and our elected officials looked the other way to protect their campaign coffers.

Why is Ohio Attorney General Mike DeWine finally taking legal action against William Lager? If it’s illegal now for Lager to direct taxpayer money to his companies, why wasn’t that a crime years ago?

AG DeWine donated $12,533 in Lager contributions to charity, but Mike DeWine continues to take campaign cash from for-profit charter school companies.

The DeWine/Husted gubernatorial campaign recently received $10,000 from J. C. Huizenga, a member of the board of directors of the Mackinac Center for Public Policy “think-tank.” Huizenga is also one of the major funders of All Children Matter, Inc., which still owes Ohio a $5 million election fine that DeWine’s office has been reluctant to collect. Huizenga’s charter school company, National Heritage Academies, is closely affiliated with the American Legislative Exchange Council (ALEC.) Like his colleague Betsy DeVos, does Mr. Huizenga also expect a favorable return on his investment?

It’s time for Ohio voters to elect pro-public education candidates in November. Our children are counting on us!

Jeanne Melvin,

Columbus

Categories Accountability, Billionaires, Charter Schools, Corruption, Dark Money, Ohio, Privatization

Jan Resseger: Who Allowed ECOT to Scam Ohio Taxpayers of $1 Billion Over 17 Years?

By dianeravitch
September 15, 2018 //
3

Jan Resseger nails the politicians who are responsible for ignoring the ECOT scam. The $1 billion that ECOT took to produce inferior education (or none at all) was purchased with campaign contributions, 92% of it to Republicans.

As it happens, the guilty politicians are running for state office this November. In only a few weeks, they will be judged by the voters.

Jon Husted, the Republican candidate for lieutenant governor; Keith Faber, the Republican candidate for state auditor; Mike DeWine, the Republican candidate for governor; and Dave Yost, the Republican candidate for attorney general.

Will the voters in Ohio remember in November who skimmed millions from their public schools to enrich the owner of ECOT?

Categories Education Reform, For-Profit, Fraud, Ohio, Virtual Charter Schools

Ohio Releases School Grades: Richest Schools Get A’s, Charters Get More D’s and F’s than Public Schools

By dianeravitch
September 14, 2018 //
18

Let’s be clear on this point: Giving single letter grades to schools is a terrible, stupid, invalid idea. It has no scientific basis. It rewards affluent districts and stigmatizes poor schools.

Jan Resseger reports that the state’s letter grades performed as expected. The schools in the most affluent districts get the most A grades. The schools in the poorest districts get the lowest grades.

She concludes:

“Instead of branding Ohio’s poorest African American and Hispanic school districts with “F”s and punishing the state’s very poorest school districts with state takeover, the state should significantly increase its financial support for public schools in poor communities and encourage the development of full-service wraparound schools that provide medical and social services for families right at school. Ohio’s system of branding the state’s poorest schools with “F” grades and imposing sanctions like state takeover undermines support for public education in school districts that desperately need strong community institutions. The school district report cards also encourage segregation of the state’s metropolitan areas by race and family income.”

Stephen Dyer posts graphs showing that charter schools dominate the D and F grades. Of course, that will not sway the charter lobby in Ohio or cause them to rethink their devotion to the free market.

What fascinates Dyer is that ECOT—the virtual charter that collapsed in scandals a few months ago—somehow received an A in achievement because students were not chronically absent. Huh?

He writes:

“This year, ECOT got an A in the Achievement Component.

“How can this be when ECOT has historically been the worst performing school in the state? The answer lies in the fact that ECOT closed half way through the year. So the school did not get graded on several components that it traditionally bombed. The only Achievement category indicator it was graded on was meeting state indicators — raw test score information. Schools can be graded on up to 26 different indicators, depending on how many students the schools tested that are in each category. For example, if a school doesn’t have high school students, it won’t be graded on the performance of high school students.

“Last year, ECOT met 0 of the 23 indicators it was measured on. This year it met one indicator. And it was only measured based on one indicator. What was that indicator?

“I kid you not. It was chronic absenteeism.

“Last year, 13.5% of ECOT’s kids were listed as chronically absent. This year, it was 7.5%, which met the indicator and qualified as an A.

“That’s right. The school that ripped off taxpayers by at least $200 million because it charged for kids who were never there, or were absent for whole months and seasons of time got an A from the Ohio Department of Education because kids weren’t chronically absent.“

Proof positive that school grades are a hoax.

Categories Accountability, Charter Schools, Education Industry, Hoax, Ohio, Privatization

Bill Phillis: Who Should Be Held Accountable for the ECOT Fiasco?

By dianeravitch
September 13, 2018 //
9

Bill Phillis is a retired deputy State Superintendent of Schools in Ohio and a passionate advocate of public schools, equity and accountability.

He launched the Ohio Coalition for Equity and Adequacy of School Funding. You should subscribe to his email list.

ECOT (Electronic Classroom of Tomorrow) wasted $1 billion of taxpayers’ money, diverted funding from real public schools, and was endorsed by Ohio’s most prominent Republican elected officials. Betsy Dezvos wants more virtual charters, which have an abysmal track record.

He writes:


The ECOT scandal could have been stopped many times since its beginning

After ECOT ripped off a billion dollars from Ohio school districts and collected a couple hundred million from the federal government during a 17-year run, the corrupt operation was finally exposed. How did this business enterprise feed illegally at the public tax trough in plain sight without being held accountable? That critical question is being debated in the final days before the November 2018 election. Candidates are debating who is to blame.

One person said; don’t blame Bill Lager-he is a businessman trying to make a buck. Lager used millions of tax dollars gobbled up from the public trough to buy political favors. Public officials turned a blind eye to the corruption.

Who should have been watching ECOT and other bad actors in the charter industry?

State Board of Education
Ohio Department of Education
State Superintendents
State Auditors
State Attorney Generals
Governors
Legislators
Private watchdog groups

Over the years state officials have shut down small charter operations-the kind that had meager political campaign budgets. But ECOT wasn’t on their radar.

The ECOT scandal should prompt state officials of all political stripes to put the spotlight on the other big time charter operators such as K12 Inc., Imagine Schools, Gulen Islamic charters, Accel, etc.

“The whole people must take upon themselves the education of the whole people and be willing to bear the expenses of it. There should not be a district of one mile square, without a school in it, not founded by a charitable individual, but maintained at the public expense of the people themselves.”
– John Adams, September 10, 1785

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

Categories Accountability, Charter Schools, Education Industry, For-Profit, Fraud, Funding, Ohio, Privatization, Virtual Charter Schools

Denis Smith: Can You Identify the MISSING WORD in Ohio’s Online Charter School Commercials?

By dianeravitch
September 7, 2018 //
6

Denis Smith reminds us of the old Groucho Marx television shows. If you said the “magic word,” a duck would descend and you would win a prize.

He provides readers with commercials for “online public schools,” “tuition free” and invites you to guess which is the missing word?

In the wake of the great ECOT scandal, there is one word that dare not be mentioned.

There is no prize for the right guess.

Categories Accountability, Charter Schools, Education Industry, Ohio, Privatization, Virtual Charter Schools

Ohio & Florida: Charter Scam Rips Off Taxpayers in Both States

By dianeravitch
September 3, 2018 //
14

The Network for Public Education has a Twitter handle called #anotherdayanothercharterscandal, and it is hard to keep up with them. It used to be one or two a week, Carol Burris told me, now it is one or two every day.

Here is only one among many, involving a charter scam that stretched from Ohio to Florida, ripping off taxpayers in both states.

Ohio’s top public accountant is actively investigating the case of two businessmen accused of using charter schools to defraud Florida taxpayers, students and schools — and maybe here, too.

On Friday, Ohio Auditor Dave Yost acknowledged that a probe has been ongoing for a year. Meanwhile, court documents filed this month in Florida indicate 19 Ohio charter schools were overbilled nearly $600,000. Prosecutors and forensic accountants say the money was laundered through 150 bank accounts and shell companies then returned as “rebates” and “kickbacks” to Marcus May, who once ran more than 20 charter schools in Ohio.

In 2012, May used a parent company, Newpoint Education Partners LLC., to open Cambridge Education Group, a charter school operator based in Akron. To grow business in Florida, authorities say he “falsely represented” that his Ohio schools were well managed. By 2016, prosecutors say he allegedly defrauded Florida and its public schools of more than $1 million.

May has repeatedly declined to speak with the Beacon Journal.

The pattern in Florida seems to mirror transactions in Ohio.

One forensic document in the Florida case details how Ohio schools paid $1.1 million to Apex Learning, a Seattle-based company May used to bill the 19 Cambridge schools in Ohio and 15 Newpoint schools in Florida for online and hard-copy curriculum. Russ Edgar, the lead Florida prosecutor in the white collar criminal case against May, has produced invoices that show how Apex inflated pricing to siphon $229,756.57 from Florida’s education system and $456,551.92 from Ohio schools, including four in Akron.

“After the allegations in Florida came to light, Marcus May was immediately relieved of any managerial duties and later of his equity in Cambridge,” John Stack, co-owner of Cambridge, said in a written statement. He said Cambridge hired a forensic accountant to find out if Apex negatively impacted any Ohio schools. Once the schools were identified, the money was returned.

Stack said he no longer owns a stake in Cambridge. He did not say who does owns the company now.

Of the 18 Cambridge schools still open in Ohio, 13 signed new management contracts this summer with Oakmont Education. Stack founded the company with Marty Erbaugh, an investment banker from Hudson. Oakmont will take over Cambridge’s dropout recovery high schools for struggling teenagers and young adults.

“Oakmont doesn’t believe that any of the schools we manage were negatively affected by Marcus May’s actions or Cambridge’s management,” said Stack, who filed the paperwork to create Oakmont on March 20, four days after a Florida jury convicted one of May’s associates.

How reassuring to know that the charter schools are now in the hands of an investment banker. Don’t you feel better already?

Categories Accountability, Corruption, Florida, For-Profit, Fraud, Ohio, Scandals

Stephen Dyer: Ohio Charters Present a Picture of Incompetence, Ineffectiveness, and Malfeasance

By dianeravitch
September 1, 2018 //
11

Stephen Dyer writes on his blog about the utter haplessness of the charter industry in Ohio.

In 2015, Ohio won $71 Million from Arne Duncan’s Department of Education despite widespread reports of academic failure and corruption. In the past three years, only $1 Million has been allocated.

A study commissioned by the U.S. Department of Education reported that the state had no plans to improve the effectiveness of charter schools, no plans to be sure that were serving the neeediest kids.

Maybe from this mess might come some insight into the uselessness of running two parallel publicly funded school systems, one with oversight, the other without.

Taxpayers in Ohio are very patient. They don’t care what happens to their money.

Categories Charter Schools, Disruption, Education Industry, Failure, Ohio

Ohio: There is HOPE for a Governor Who Supports the Public Schools Attended by 85% of Students!

By dianeravitch
August 28, 2018 //
15

A reader sent these hopeful thoughts about the Democratic candidate for Governor in Ohio:

There is HOPE in Ohio. The Democratic candidate for Governor, Rich Cordray, actively sought out the endorsement of OH BATS. Not only that, he met with a group of us and allowed us to tape him replying to some of our questions. He emphatically supported an END to high stakes testing in Ohio – he said he supports reducing testing to the federal minimums which in Ohio means ending High School Exit testing and the “Third Grade Reading Guarantee” (guaranteed only to give your young child anxiety about reading and testing). OH BATS was leery about endorsing ANY candidate regardless of party because both parties have been complicit in “Reform” around the nation. However, Rich Cordray has actively sought to allay our fears – I believe he is sincere and genuine in wanting to turn things around in Ohio. He is well aware of the ECOT scandal and holds great disdain for charters (He accepted a $600 Lager contribution many years ago before the corruption was apparent – when he discovered this, he immediately donated that money to his local public school! This is way different from the tens of thousands Faber, Brenner, Husted, DeWine, and Yost took from Lager). He is THE person we need in Ohio to turn things around. I hope ALL educators rally around not only OEA and OFT’s endorsed candidate, but OH BATS endorsed candidate, Rich Cordray. Any help you can give us in spreading the word that Rich is PRO PUBLIC ED would be greatly appreciated!! I have been an avid reader and admirer of yours for several years – your pro public ed heroism is unmatched! With our current slate of candidates running for the legislature and Rich Cordray leading the ticket, I am hopeful for the first time in many, many years.

Imagine that! A potential governor in Ohio who sought out the views of OHIO BATS!

If you live in Ohio, let me know what you think of Rich Cordray. Is he the anti-Kasich? Will he restore good government and support for public schools?

Categories Ohio, Supporting public schools
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