Archives for category: Ohio

 

 

William Lager, the entrepreneur who invented The Electronic Classroom of Tomorrow, had a brilliant political strategy. He has collected nearly $2 billion since the school opened in 2000, and he gave a few million each year in campaign contributions to politicians. No public school could do that. Top state officials spoke at ECOT’s graduation ceremonies, as did Jeb Bush, who is fanatically devoted to digital learning. ECOT was lucrative but had the highest dropout rate of any high school in the nation.

When the State auditor Dave Yost (a recipient of Lager funding) audited ECOT, he discovered that enrollment was inflated and reached a settlement for the mega-school to repay the state on a monthly basis. Rather than give up money to which it was not entitled, the school closed.

One of the most persistent and well-informed critics of ECOT is Bill Phillis, former Deputy Superintendent of Education for Ohio, now retired.

He asks a question: why not hold Lager personally responsible for the hundreds of millions diverted from real public schools?

He writes:

“State probably won’t be able to recover all of the over-payments to ECOT in face of its closure: but continuation of payments is not the solution

“The chairman of the House Education and Career Readiness Committee is in a tizzy because the ECOT closure stops the clawback of $4 million per month. (The chairman, a leading benefactor of ECOT campaign donations, is a consummate defender.)

“ECOT’s average monthly payment for the students “enrolled” thus far this school year is $7.7 million. $4 million per month is being held back to repay the previous fraudulent claims. Therefore the state is spending $7.7 million to get $4 million back. The $7.7 million monthly payment will stop because ECOT, at least temporarily, is out of business; hence, ECOT allegedly will no money to pay back the ill-gained money. But ECOT and the ECOT Man have assets that should be tapped.

“The two ECOT for-profit companies, the real estate and facilities and the personal real estate holdings and other assets might accrue to the amount ECOT owes. The ECOT Man has accumulated vast holdings with money that should have been spent on educating children.

“All the powers of the state should be unleashed to recover the money ECOT owes. School districts have lost hundreds of millions from ECOT’s claims for students not served. The Governor, Attorney General, Auditor, State Superintendent, State Board of Education and the sponsor should join efforts to develop a strategy for recovering every dime possible.

“The chairman and his legislative colleagues should learn from the ECOT fiasco and either eliminate charters or put the entire charter industry under the sponsorship of elected school district boards of education. The for-profit concept must be eliminated.”

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

PS: When I looked up ECOT in Wikipedia to check the founding date, I note that the only critic quoted works for the pro-choice Thomas B. Fordham Institute, not the knowledgeable Bill Phillis, who has tracked Lager’s misdeeds for years.

One of the most remarkable turnarounds in the nation happened in Ohio. There have been so many charter scandals that the major newspapers have become skeptical, as well they should be. They have noticed the scams, frauds, phantom schools, phantom students. They’ve noticed how many charters get scores lower than the public schools they were supposed to compete with.

They are no longer entranced by the marketing of the charter school industry.

In Ohio, the biggest scandal is the Electronic Classroom of Tomorrow, known as ECOT.

This editorial appeared in the Columbus Dispatch. The editorial board is no longer fooled by the charter industry.

It was founded in 2000. It developed some very bad habits that cheated the public of millions of dollars.

“Alas, the school’s owner, who had no background in education, began to realize that education is really hard. And keeping the attention of at-risk students is really, really hard. The owner began to realize that many students who signed up for his school almost never logged in. Didn’t show up. His virtual classroom was half-empty. But tracking down these students and hounding them to get online and learn something would be time-consuming, expensive and, in many cases, nearly impossible.

“The owner quickly realized something else. Keeping an honest account of how many students were logging in to meet state attendance requirements would reduce the amount he could charge the state — by millions of dollars. Every year. The owner made an unfortunate choice. He decided to charge the state for a full year of instruction for each student signed up, even if a student logged in for only a few minutes each month.

“This is the sad story of ECOT — the Electronic Classroom of Tomorrow, Ohio’s largest online charter school. Since its founding in 2000, the school consistently has billed the state for students whose participation it could not document.

“In November 2001, then-State Auditor Jim Petro determined ECOT received $1.7 million for students not enrolled. Despite these early warnings, ECOT continued to charge Ohio’s taxpayers for phantom students, in increasing numbers.

“State audits from 2000 to 2016 revealed how lucrative this pattern has been for ECOT owner Bill Lager. Although organized as a nonprofit, ECOT contracts with two Lager-owned, for-profit entities for management and software services. From 2000 to 2016, ECOT paid the two businesses a tidy $192.8 million.

“At long last, in 2016 the Department of Education had had enough. It began insisting on honest accounting. After reviewing log-in durations and offline documentation for the 2015-2016 school year, the department concluded ECOT had reported 15,322 full-time students, while only 6,313 could be verified. The State Board of Education required ECOT to repay about $60 million of the $108 million it had received.

“This upset the owner. So he sued the state and its taxpayers, claiming the education department has no right to look under the hood, no right to check whether students actually are logging in. Fortunately, this argument was rejected by both the Franklin County Common Pleas Court and Court of Appeals. The case now is before the Ohio Supreme Court.”

ECOT has the lowest graduation rate in the nation.

How much longer will the taxpayers of Ohio allow this “school” to collect millions for students who never participated in class?

The former leader of Family Foundations Academy was sentenced to 18 months in federal prison for embezzlement. He confessed that he was suffering from “‘a severe level of sexual addiction and shopping addiction.’” Yeah, that’s a pretty good reason for embezzlement of public funds.

It is almost as good as my favorite from the founder of the Lion of Judah Charter School in Cleveland, who was indicted for diverting $1.2 million to his personal businesses and was ordered to pay restitution of $195,000. His lawyer said it wasn’t right to blame him because he saw easy opportunities to make money and he got greedy.

Excuses, excuses! Greed, shopping addiction!

Stephen Dyer, a fellow with Innovation Ohio and former legislator, explains how the charter funding system in Ohio takes money away from students who are not in charters.

“It’s really easy to sit back and make esoteric arguments about how Ohio’s charter school funding system hurts kids who are not in charter schools. And there’s a recognition from leaders in the Ohio General Assembly that the funding system — which diverts state funding meant for a district to a charter — is a shell game that leave school districts with far less state revenue than the state says they need to effectively educate their students. This, in turn, forces school districts to use sometimes large segments of their locally raised revenue to make up the difference.

“But what does that mean for a kid attending a local public school district?

“As an example, I’m going to use a student in Columbus City Schools. Let’s assume he or she started first grade in the 2005-2006 school year, which would make this student a senior this year (by the way, I was first elected to the Ohio House in 2006. Wow, does this make me feel old!)

“Anyway, I looked at how much state funding this student lost each year of their career because charter schools receive so much more per pupil state funding than Columbus City Schools would have received for the same kids. (Looking at state funding reports here and doing addition and subtraction based on number of students in Columbus before and after charter students leave, as well as how much state funding comes to Columbus before and after charter students leave.)

“Yes, I know charters can’t raise local revenue. However, the legislature has chosen to not put its money where its school choice mouth is and create a separate fund to make charter schools whole. Instead, they make up a chunk of the local funding disparity by removing extra state funding from the local school district’s bottom line, forcing local property taxpayers to do their work for them.”

Check out his graphs and data.

So, for every student who began their Columbus City Schools career in 2005-2006, they have received $10,548 fewer in state revenue, with another $1,142 set to be lost this, their senior year (charter enrollment is so volatile, this figure could change substantially during the year). To give you a sense of scale, that amount equals about the amount of state funding these Columbus students received their first three years of school — in many ways the most important years.

Ohio has many failing charter schools. It has charter schools that gobble up public money and are never held accountable for poor results or wasted money. Apparently taxpayers and legislators in Ohio don’t care about how public money is spent and they don’t give a hoot about the quality of education.

Laura Chapman writes about the farce of charter “accountability.”

She begins by quoting something I wrote about the failure of oversight in California where hundreds of thousands of dollars go missing and no one notices until a whistle-blower blows the whistle. In Los Angeles, board member Ref Rodriguez was facing criminal charges of money laundering during his campaign. His defenders defended him, saying the money laundering was a “rookie” mistake that should be ignored. But then Ref’s own charter chain accused him of paying himself hundreds of thousands of dollars for no services. Didn’t look like a rookie mistake. At the same time, the charter industry in Los Angeles was asking the LAUSD to reduce oversight, accountability, and audits.

I wrote:

“If the charter industry had any sense of integrity, they would insist on annual audits of every charter.”

Laura Chapman wrote:

“The farce of some audits is illustrated in Ohio by The Office of School Sponsorship. This is an office within the Ohio Department of Education that serves as a direct sponsor of 23 charter schools called “community schools.” In effect these schools are under state control, and are supposed to adhere “to the highest standards of approval, oversight, and monitoring” for “academic, fiscal, and governance.”

“The Thomas B. Fordham Institute hatched the current plan for monitoring these state-sponsored charter schools. The auditors/evaluators are equipped with 300 criteria for determining whether the contract for each school should be renewed, terminated, or put into probationary status.

“In order to be “considered for contract renewal,” the Governing Authority for the school is expected to “meet or exceed” a minimum set of standards for (a) academic performance, (b) financial reporting, and (c) responsible operations/governance. But….“An inability to achieve minor elements of the standards may not prevent consideration of contract renewal.” What counts as a “minor element” leaves a lot of room for excuses, including excuses offered by the auditors–well they were late with reports, the reports were incomplete, and so forth.

“I have looked at the standards in this plan and the evaluations of 23 state sponsored charter schools. What a farce. All were approved, a few with a slap on the wrist.

“Not one of the 23 charters passed muster on academic performance. In some cases evaluators did note that the state tests and grading system had been changed (again), so the poor rating was not enough to terminate the charter. Seven charter schools were well below state averages and other charter averages. Three were given credit for a sign of “growth.” One was credited with a satisfactory rate of graduation but not academic performance.

“Ratings on financial reporting were generally OK, meaning the required paperwork was submitted. Six charter schools were cited for no information or failure to report financial data on staffing. One more was praised for “improvement.” One, in operation for two years, was judged to have “growing pains.”

“With one exception, all of these charters had satisfactory ratings on responsible operations/governance. That rating prevailed even though three had reports that lacked required transparency and timely submission of information, two had clear issues with pending investigation of ethics, one had “growing pains,” one was judged flawed but “improved,” and two were excused for problems due to an “new online system for reporting.”

“The brief mission statements offered in these evaluation reports were revealing. An “Honors Academy” for grades 6 to 11 had really bad ratings on academics but claimed to instill passion and self discipline.Inexplicably the charter school did not claim to serve students in grade 12.

“A “startup” said it was committed to building an “multigenerational community of lifelong learns (sic) and spirited citizens.”

“An “elective” academy enrolled only 31 students from Kindergarten through grade 9. In operation since 2006, it failed on academic performance and fiscal accountability including staffing reports. The school described itself as tech-rich with small classes geared to readiness for college, career, and/or military service. That must be a very tech-rich school, ten grade levels and 31 students. No wonder the staffing reports were less than acceptable.

“Readers of this blog are aware of the fiascos in Ohio charter school laws and accountability. These evaluations of charter schools are a farce. All of these charters continue to operate, in spite of having an elaborate point system for ratings. The ratings and rubrics, invented by the Thomas B. Fordham Institute mean nothing at all when it comes down to closing schools that fail to pass muster, including one franchise that began in 1999 and exanded to four by 2009.

http://education.ohio.gov/getattachment/Topics/Quality-School-Choice/Ohio-School-Sponsorship-Program/Final-Format-Approval-Criteria.pdf.aspx

Stephen Dyer is a Senior Fellow at Innovation Ohio and a former legislator. He has scrutinized state data exhaustively and reported that district schools outperform charter schools by every measure: test scores, graduation rates, achievement gaps. The Thomas B. Fordham Institute didn’t agree with his conclusions. Although it claims to be a think tank, it is in fact an advocacy group for school choice.

The Thomas B. Fordham Institute, which is technically based in Dayton (where the late Mr. Fordham lived) is actually based in D.C., is an authorizer of charter schools in Ohio. Authorizers are paid a commission on every student who enrol in charter schools so it is a lucrative role. I was a board member at TBF and an original founder. I opposed the decision to become an authorizer because I thought that it conflicted with the role of a think tank, which should be free to critique or praise anyone without fear or favor. I was outvoted.

In this post, Stephen Dyer responds to TBF criticism.

He explains that every public school in Ohio receives less money so charters can be funded.

“According to the final state payment made to school districts from June, there were 1.7 million students in Ohio set to receive $7.95 billion in total state aid. That’s works out to $4,657 (I’m rounding here) for every student in local public school districts.

“Then come charter schools.

“According to the report, $898 million left school districts last year for charters (a district-by-district breakdown I received from the Ohio Department of Education puts that tally at $935 million, so there’s that). Leaving with that funding were 113,613 students.

“So, after losing the funding and students to charter schools, the remaining 1.59 million children in Ohio school districts were set to receive $7.05 billion in state revenue, or $4,425 each.

“That means that the charter deduction costs every kid in Ohio school districts, on average, $231.51.

“This is why I compare charter school performance with school district performance. Because charter schools affect every kid in a school district. Profoundly. How profoundly? Let’s look at Columbus.

“Prior to the charter school deduction, every kid in Columbus City Schools is set to receive $4,559 in state funding. However, once the $145.65 million and 18,541 students are transferred to charter schools, the remaining 53,532 students who attend Columbus City School buildings receive $3,418 per pupil. That is a difference of $1,141.62. So charter schools cost students who are in Columbus City Schools about 1/4 of their state revenue. That’s every student in Columbus, regardless of wealth, race, or disability, Jamie.

“Every.

“Single.

“Student.

“So if this profound a change in state funding is going to happen for the 75 percent of children who remain in Columbus City Schools, or the 93 percent of children who remain in Ohio’s local public school districts, we’d better be damn sure it’s worth it. Is it worth removing $1,141.62 from kids in the best performing school in Columbus so thousands of kids can go to ECOT, for example (ECOT is the largest recipient of charter school transfer funding from Columbus)?

“I would say that’s a big, “No.”

“Now my friends at Fordham often complain that charters don’t get local revenue. And while that’s true, I fail to see how that justifies removing millions of state dollars from kids in local school districts. If the legislature believes in school choice so strongly, then set aside $260 million or so to make up for the lack of local revenue.

“Stop taking it from the 1.59 million kids who aren’t in charters.“

From Stephen Dyer of Innovation Ohio:

“New Ohio state report card data show that Ohio charter school grads are far less likely to earn college degrees than Ohio school district grads. These data give us an idea of how schools prepare stduents for success beyond the test score. And results aren’t good for Ohio charters overall.”

http://bit.ly/2yrT6fk

Denis Smith worked in the charter office of the Ohio Department of Education until he retired in 2011. He continues to be amazed by the growth and scale of charter fraud, waste, and abuse, which the legislature ignores. Of course, the charter industry has been shielded because charter lobbyists wrote the law!

In this post, he describes some of the most flagrant abuses, several of which involve real estate and exorbitant rentals and leases that allow the charter company to pocket taxpayers’ dollars.

Here is one of the most flagrant abuses:

“The Columbus Primary Academy, part of the Imagine Schools charter chain, is saddled with a lease that requires exorbitant rent to Imagine’s for-profit real estate subsidiary. In two other states, federal courts deemed the leases “self-dealing’’ and ordered Imagine to pay $1 million fines. The latest state audit shows the academy’s current lease extends to 2033, while the latest state report cards shows the school continues to fail our kids.”

An inflated lease that runs through 2033 for a failing Charter School!

Why do Ohioans tolerate this misuse of taxpayer dollars?

How many more scandals will be exposed before the legislature stops waste, fraud, and abuse in the charter industry?

Here’s a twist. The city of Cleveland wants to upgrade the quality of its charter schools by blocking a very poorly regarded charter authorized but the Ohio State Superintendent turned Cleveland down.

Bottom line: it is easy to close a public school, but very difficult to close down a low performing charter or authorizer.

“The first real test of whether city leaders can force higher standards for charter schools in the city – a power they fought for in the state legislature five years ago – has failed.

“Though Cleveland has some of the strongest charter schools in Ohio, it also has some of the weakest. So Mayor Frank Jackson and other city leaders have wanted to force some of the weakest operators and oversight organizations for the privately-run, tax-funded public schools to do a better job.

“Making that happen has been a challenge.

“Jackson won limited power from Gov. John Kasich and the legislature in 2012 to let his school quality panel, the Transformation Alliance, recommend to the state who can create and oversee new charter schools in the city.

“That hard fought power was much less than what Jackson had initially sought – an ability for city leaders to approve or deny each new school directly.

“But when the panel tried to use that already-reduced power this year for the first time – asking the state to block controversial charter sponsor St. Aloysius Orphanage from starting new schools here – the Ohio Department of Education did not agree.

“Piet van Lier, executive director of the Alliance, shared this week a recent letter from State Superintendent Paolo DeMaria affirming that he will not grant the Alliance’s request and will let St. Aloysius add new schools here.

“DeMaria is instead forcing St. Aloysius to better communicate with the city over its educational goals.

“We are very disappointed by ODE’s decision,” van Lier said.”We reviewed St. Aloysius’s application thoroughly and found no evidence that the sponsor is focused on providing a quality education for all Cleveland children.”

“Dave Cash, head of Charter School Specialists, the for-profit company that oversees schools for the orphanage, did not reply to an e-mail seeking comment this week.”

Mr. Cash is the appropriately named head of The for-profit company that runs the low-performing authorized.

“Members of the Alliance – Cleveland school district, union, charter school, higher education, business and philanthropic leaders – believe that the Cincinnati orphanage, which now oversees 12 charter schools in Cleveland, creates mediocre or poor schools across the state, just to offer school choices for the sake of choice, not quality.

“Alliance members also question whether the orphanage and the for-profit company that creates schools for it are mainly trying to make money.”

The authorizer gets a cut of the funding no matter how poorly the school performs.

Stephen Dyer, senior fellow at Innovation Ohio, writes that Ohio’s public schools overwhelmingly outperform its charter schools.

“Under Ohio law, school districts that score in the bottom 5 percent on the state’s “performance index score” are elligible to have charter schools open in those communities. Trouble is that 9 out of 10 charters currently score worse on the performance index score than the median district did to receive this “challenged school district” designation. http://bit.ly/2ybBV2b”

Calling Betsy DeVos! I know you are “not a numbers person,” but please don’t push failure.