Archives for category: Privatization

The Wall Street Journal editorial board has three core beliefs about education.

1. Public schools are horrible.

2. Teachers’ unions are evil.

3. Non-unionized charters and vouchers are the remedy to all that ails American education.

Wrong. Wrong. Wrong.

The three highest performing states in the nation—Massachusetts, Connecticut, and New Jersey—have strong teachers’ unions. None of the non-union states are at the top of the National Assessment of Educational Progress. Unions fight for adequate resources and decent salaries for teachers, in addition to fighting for teachers’ right to fair treatment on the job. The resources help their students, and the job rights help retain career teachers.

Most recently the WSJ wrote a glowing editorial about the alleged success of vouchers in Florida, one of its favorite states because its governor and legislature have diverted $3 billion from public schools to non-union charters and vouchers. The editorialists are thrilled because Florida just recently expanded its voucher program.

Most vouchers in Florida are used in religious schools, most of which are evangelical Christian schools. The voucher schools are not required to take state tests. They are not required to be accountable in any way. They are not required to hire certified teachers or principals. The voucher schools are allowed to discriminate against gay students, staff, and families. They do not have to adopt the state standards and may use the Bible as their science textbook if they wish. The Orlando Sentinel wrote a revealing series about Florida’s voucher program, called “Schools Without Rules.”

Bear in mind that the size of a voucher—less than $8,000–guarantees that it will be accepted only by low-tuition schools, not by the schools of elite families, where tuition may be as high as $35,000-40,000 a year.

Here is the text of the WSJ editorial:

The headline is “Florida’s School Choice Blowout.”

The subtitle is: “The State Expands Its Successful K-12 Scholarship Program.”

Good news from Florida. Gov. Ron DeSantis on Thursday signed the biggest private school voucher expansion in U.S. history—giving families in Democratic, union-controlled states another reason to move to the Sunshine State.

Florida established the Family Empowerment Scholarship last year for low and middle-income families. The private school vouchers run between $6,775 and $7,250 per student depending on the grade level, and 87% of recipients come from households below 185% of the federal poverty level (about $48,470 for a family of four). Most are black or Hispanic.

Vouchers had been limited to 18,000 students this year with annual growth capped at about 7,000. This wasn’t enough to meet parental demand, and there are 35,000 eligible students on scholarship waiting lists. Republicans have now quadrupled the cap on annual growth so that 28,000 more students can benefit each year. If the voucher program’s capacity exceeds demand from eligible families, the new law will increase the household-income limit (currently 300% of the poverty line) by 25% so more middle-income families can apply. In short, supply of vouchers will now automatically expand to meet demand.

As a political trade, Mr. DeSantis gave public schools $500 million for salary increases—not that this appeased the teachers unions that oppose all school choice because it forces unionized public schools to compete for students. While voucher studies have shown mixed effects on academic performance, one reason is probably that giving parents more choice forces improvements at public schools. A National Bureau of Economic Research study this year found higher standardized test scores and lower absenteeism among students, especially low-income ones, who attended Florida public schools in areas where more students had access to private-school choice.

Notably, fourth-graders in Washington, D.C., and Miami-Dade in Florida showed the most improvement on the National Assessment of Educational Progress test scores among large urban school districts since 2011. Both Florida and Washington, D.C., offer robust private-school choice and have eliminated teacher tenure. By contrast, student scores in most districts including Houston, Philadelphia and Baltimore have been flat or declined.

Jeb Bush kicked off Florida’s school choice movement two decades ago, and Rick Scott (now Senator) and Mr. DeSantis have built on his success. More than 130,000 students in Florida now receive scholarships. Florida is helping to increase social mobility and future incomes by expanding educational opportunity for all.

Here are the facts:

Florida’s scores on the National Assessment of Educational Progress, a sample test of reading and mathematics in grades 4 and 8 for the nation, states, and some urban districts, have been mostly flat over the past decade. The NAEP scores don’t include voucher schools, because they are not held accountable in any way. The WSJ asserts that Florida is a great “success” story, that its fourth graders showed dramatic improvement from 2011-2019, but that is false. Why leave out the eighth graders? Could it be because the eighth grade scores in both Florida and Miami were flat?

Here are the NAEP results for 2019 in reading.

Here are the NAEP results in mathematics for 2019.

You can look at average scores over time for every state and for urban districts that asked to be tested, including Miami-Dade.

You can compare 2019 to previous years. The WSJ chose to compare 2019 to 2011, but I chose to compare 2019 to 2009. It’s not impressive for Florida or Miami no matter which year you choose.

Let’s check the progress of Florida and Miami on NAEP (public schools only):

Fourth grade reading: Scores unchanged since 2009.

Eighth grade reading: Scores unchanged since 2009.

Fourth grade mathematics: Scores unchanged since 2011 (Remember that Florida retains low-scoring third graders, which tends to inflate fourth -grade scores).

Eighth grade math: Scores unchanged from 2009-2019.

Since the WSJ refers to NAEP as evidence of Florida’s amazing performance, it’s worth noting that Florida has flat-lined for the last decade on NAEP.

We don’t know anything about the “success” of vouchers in Florida, since their students don’t take state tests or NAEP.

But we do know that rigorous voucher studies in other states—Louisiana, Ohio, Indiana, the District of Columbia—have shown that voucher students lose ground compared to their peers in public schools. (See here and here and here.)

Far from “expanding opportunity,” vouchers enable children to attend low-cost schools where they abandon their civil rights protections at the door, are instructed by uncertified teachers, and are likely to fall behind academically or return to their public school. One of the unexplored issues associated with voucher schools is their high attrition rates. When voucher boosters boast about their high school graduation rate, they fail to mention the number of kids who didn’t make it to senior year. Only the elitist Wall Street Journal would think of this as a boon for children and families.

The Relay “Graduate School of Education” was created by charter schools to train charter school teachers on test-score-raising and no-excuses discipline, while using Doug Lemov’s Bible “Teach Like a Champion.” It’s teachers mostly taught in charters.

Relay is called a graduate school, but it has no research faculty, no campus, no library, and at last review, no scholars or anyone with a doctorate.

Nonetheless, Relay has landed some contracts for professional development in districts run by corporate reformers and Broadies. The chancellor in D.C. is Lewis Ferebee, who previously led privatization efforts in Indianapolis.

In D.C., it does professional development for principals.

One principal in D.C. didn’t like Relay’s philosophy.

She was fired.

Parents were not happy.

Ceaira Richardson recited the challenges that make life in her Southeast D.C. neighborhood difficult.

Grocery options are sparse, making it tough to find fresh produce. Crime rates are higher than in other parts of the city. Keeping children safe is not always easy.

But she feels at ease at Lawrence E. Boone Elementary School, a recently modernized, light-filled campus not far from Richardson’s home. There, her three-year-old daughter is already reading. She senses teachers truly care about her child, so much so that she persuaded family members to send their children to the school.

“I told everybody, ‘Enroll in Boone. Enroll in Boone,’” Richardson said.

In recent months, Richardson and other members of the Boone community have rallied around the school’s principal, Carolyn Jackson-King, after they learned the veteran educator was fired and will not return to the position for the 2020-2021 academic year.

Teachers, parents and some D.C. lawmakers have demanded D.C. Public Schools reverse its decision. Jackson-King and her supporters say she was dismissed by the school system because she resisted teaching practices that educators at Boone felt were militaristic and racist.

“I just feel they attempted to control Black bodies,” Jackson-King said.

Ferebee had no comment.

Peter Greene tells the story of the Pacific Charter School, located in the Los Angeles District. When PCS got news that they were eligible to get millions of dollars from the federal Paycheck Protection Program—whose purpose was to save small businesses at risk of closing forever—they saw an opportunity, and they took it.

PCHS is a charter school, and like many other such outfits, they have heard the siren song of the Paycheck Protection Program, the loan program designed to help small businesses stay afloat during the current pandemic mess (the second one, meant to clean up after the first one that ran out of money almost instantly). They are not alone–many charter schools are deciding that, for purposes of grabbing some money, they will go ahead and admit they are small private businesses and not public schools. Two thirds of the charter school businesses in New Orleans have put in for the loans.

What makes Palisades special is that we have video of their board discussing the issues of accepting the loan. (A hat tip to Carl Peterson, who has been watching these folks for a while.)

The discussion of the loan starts in the video about six minutes into the May 12 meeting. Chief Business Officer Greg Wood brings the news to the board that they’ve found a bank (in Utah) and landed approval for a $4.6 million loan.

If you’re wondering if they agonized over issues like tying up four and a half million dollars that might otherwise have been used by an actual small bus9iness that is currently struggling to stay afloat, the answer is, not so much. Wood acknowledges that there could be some rough press with such a move; nobody much cares. A member also mentions that he has friends with small businesses who were not able to be approved. The group gets a little confused about whether or not they’re eligible for the loan, and one member says “Well, the answer is, let’s get it anyway.” Wood says that they could be seen as “double dipping.”

They are eligible, and Wood has already applied and been approved pending board approval. Wood doesn’t know if the loan will be forgivable. In particular he dances around the idea that in order for the loan to be forgivable, they might lose the freedom to fire staff as they wish.

Payback is steep– they get two years, with six months before repayment has to start and a big balloon payment at the end. This does not seem to bother the board because they are mostly considering to grab this money in the off chance that they might need it, and if they don’t need it, they can just give it back in two years– basically a line of credit just in case, which I’m sure would be a big comfort to a business that goes under because there is no money for them in the PPP. But this meeting is marked by phrases like “get the money while the getting’s good” and “get the loan first…worry about that part later.” No payback plan was raised.

A bitter coda to all this. There is just one public comment submitted to the meeting, from a woman who is a Pali High grad and who taught there for thirty years and who is retiring. She’s speaking up because the rest of the staff is afraid of retribution. The teachers worked 2019-2020 without a contract, and while the praise and attaboy’s they’ve gotten for making the pandemic-pushed jump to distance crisis schooling are swell, the board could put their money where their mouths are by offering the teachers a decent raise– particularly since it looks like PCHS is finishing the year with a $2 million surplus. Her comments are read into the record, and then the board just moves on to authorizing the bank that will manage the loan.

David Pettiette is a CPA who volunteered at a KIPP elementary school in Memphis. He was shocked when two KIPP schools suddenly closed their doors and left their families scrambling for a new school.

He wrote:

In April, it was announced that KIPP Memphis Preparatory Elementary and KIPP Memphis Preparatory Middle on Corry Road would be permanently closing without notice. Between the two schools, over 650 students have been displaced without so much as a plan or opportunity to rebut the decision.

The decision to close a school in an underserved community is not uncommon. It is however a decision that is typically given six months to a year’s notice, not April of the current school year. The Knowledge is Power Program (KIPP) is the largest network of public charter schools in the nation, with several schools in Memphis. With that size apparently comes unprecedented autonomy considering the schools’ primary funding is local and state money.

In an effort to limit bad press, KIPP offered a Q&A conference call to address the school closures so that the community’s voices could be heard. However, this session, which did not provide any A’s or responses from KIPP, was yet another unthoughtful decision made by the organization and proved to be an unsuitable forum.

Many families had trouble accessing the call due to technical difficulties generated from the third-party conferencing system used. The call itself went just about as you’d expect. It opened with two pre-recorded statements from KIPP’s board of directors and regional team, which were both vague and painfully insincere.

The comments from parents and staff were anxious, frustrated and morose –a wide variety of emotions. While listening to the call, I couldn’t help but think that the occasion warranted a more personal approach.

In reality, KIPP gave up. They gave up on their students, families, faculty and staff after only a few years of operation. Make no mistake, this was a financial decision that is inequitable to the historic Alcy Ball community in South Memphis.

KIPP cited a “failure to fulfill academic promise” which resulted in the closures, and the only excuse provided for the late notice was that they did not want to mislead the schools’ key stakeholders regarding their future.

This was a cheap and inaccurate shot at the integrity of the teachers and faculty, who spent money out of their own pockets to make sure that their students were adequately clothed, fed and supplied.

At the end of the day this decision is not what is best for the kids, who should have been KIPP’s only focus throughout this whole process. The situation is awful, but the approach was worse. If there is anyone looking for a textbook example of institutional racism, look no further.

Della Hasselle of the New Orleans Times-Picayune describes how charter schools in New Orleans have collected coronavirus relief funds from money meant for public schools as well as federal funds meant for small private businesses. Most received money from the Payroll Protection Program, up to $5.1 million for a single school, even though they have suffered no loss of revenues.


More than two-thirds of New Orleans’ charter school organizations have applied for federal loans through the congressional act to help keep businesses afloat during the coronavirus pandemic, garnering criticism from some groups for tapping into a program that hasn’t been available to traditional public schools.

Dozens of New Orleans schools have applied for Payroll Protection Program loans, aimed at shielding small businesses from closure due to COVID-19, according to interviews and a review of documents from over 40 boards operating schools in New Orleans.

At least a third of the charters had received loans, with officials from those organizations saying they got anywhere from about $97,000 to more than $5.1 million in funds, based on their payroll.

“The COVID-19 pandemic has severely impacted the city of New Orleans and created great economic uncertainty for our schools about how we can continue to operate, employ all of our employees, and not dramatically cut services for students, many of whom will return to school with learning gaps and needing additional social and emotional supports,” said Kate Mehok, CEO of Crescent City Schools, which received $3 million.

The money, which comes from a $349 billion stimulus established by the $2 trillion federal CARES Act, can be forgiven if all employees are kept on the payroll for eight weeks and if the money is used for salary, rent, mortgage interest, or utilities, according to the U.S. Small Business Administration, which along with the Treasury Department is implementing the program.

Critics had already lambasted charter schools around the country for the applications, accusing the non-profits of abusing their status and double-dipping, and were miffed to learn about the dozens of applications to come out of New Orleans, which this year became the first major American city to have no traditional schools.

Like traditional schools, local charters have already received some CARES Act funding through the Louisiana Department of Education. But unlike the charters, district-run schools weren’t eligible for the extra payroll loans.

The charter organizations each got hundreds of thousands of dollars from the $260 million doled out to districts and charters in late April as part of the Elementary and Secondary School Relief Fund, another part of the CARES Act, mostly for technology and distance learning.

I recently had a conversation with Julian Vasquez Heilig, the dean of the College of Education at the University of Kentucky.

Dr. Heilig discusses his own background, a trajectory that took him from Michigan to Stanford, then to Texas, California, and now Kentucky. He is a scholar and an activist who now seeks to lead a new conversation about education in a Kentucky, bringing the community into close connection with the schools.

I have known Julian since 2012, when he became a founding member of the board of the Network for Public Education.

His blog, “Cloaking Inequity,” is one of the liveliest on the web. He has a passion for equity and inclusion that shines through his scholarship, his blog, and his activism.

Karen Francisco, editor of the editorial page of the Fort Wayne Journal Gazette, is grateful that Indiana Governor Eric Holcomb will not cut the budget of the state’s schools, but wonders whether the state can afford to maintain more than one system of publicly-funded schools. She might well have also asked whether the state can afford a third system of privately-managed charter schools.

Currently, there are 326 private and religious schools in the state receiving $172.7 million annually. Taxpayers have paid more than $1 billion to non-public schools since the choice program began nine years ago. Researchers have found that voucher schools do not provide better education than public schools; typically the students in voucher schools perform worse than their peers in public schools or at best, keep up with them.

When the fall campaign season gets underway, Statehouse candidates should be prepared to share their views on the growing cost of funding two Indiana school systems. In a struggling economy, can we afford it?

As the cost of the voucher program increased by 7%, the number of students participating increased by just over 1%. Voucher enrollment actually declined in the fall, the first time in the program’s nine-year history, according to the report. But voucher eligibility was expanded to add a second enrollment period from Nov. 1 to Jan. 15, so that 459 more students enrolled for spring.

Coincidentally, President Donald Trump and Vice President Mike Pence chose this week to tout school choice as an answer to racial injustice.

“We’re fighting for school choice, which really is the civil rights of all time in this country,” Trump said in remarks in a White House Rose Garden news conference. “Frankly, school choice is the civil rights statement of the year, of the decade and probably beyond because all children have to have access to quality education.”

But Indiana’s school choice program is not a civil rights program.

Indiana’s Choice Scholarship program hasn’t seen a stampede of minority students to private and parochial schools. Fewer black students received vouchers this past year than in the previous school year. While the percentage of Indiana children younger than 18 who are black is 14%, the percentage of black students participating in the voucher program is 11.79%. Hispanic youth make up 25% of Indiana youth 18 and under but 22% receive vouchers. White youth make up 50% of Hoosiers under 18 but nearly 57% of voucher recipients.

Meanwhile, the costs of reopening the schools safely will be substantial. Last year’s budget will be I sifficient to ensure that schools can reopen safely. It is time to ask whether the state can afford two separate publicly-funded school systems.

This is an interview with Russ Roberts of the Hoover Institution about SLAYING GOLIATH.

The Hoover Institution has a huge endowment, and it is committed to free markets. Its funders do not like public schools. They disparage them as “government schools.” They like vouchers and charters.

Russ is a nice guy, and he believes in choice and charter schools. We disagreed. You might enjoy this podcast.

I was a Senior Fellow at Hoover from 1999-2009. Then when I realized that testing and choice were failing and were doing damage to schools and students, I left and began a campaign to stop what I once supported. At Hoover, testing and choice are dogma, and I no longer was a true believer. Hoover is situated on the Stanford University campus but has touchy relations with the university. While I was attached to Hoover, I donated my papers to the Hoover archives, which has a fabulous collection of personal papers of all sorts of people, including educators.

Over 600 educators of color and education scholars of color have signed a statement opposing failed billionaire-backed “reforms” intended to privatize public schools and deprofessionalize teaching.

The statement was drafted by Kevin Kumashiro and can be found on his website, along with the list of those who signed it. People continue to sign on to demonstrate to the public that their rightwing campaign is not fooling educators and scholars of color.

All Educators of Color and Educational Scholars of Color in the U.S. are invited to sign on (please scroll down to sign)

THIS MUST END NOW:

Educators & Scholars of Color Against Failed Educational “Reforms”

The public is being misled. Billionaire philanthropists are increasingly foisting so-called “reform” initiatives upon the schools that serve predominantly students of color and low-income students, and are using black and brown voices to echo claims of improving schools or advancing civil rights in order to rally community support. However, the evidence to the contrary is clear: these initiatives have not systematically improved student success, are faulty by design, and have already proven to widen racial and economic disparities. Therefore, we must heed the growing body of research and support communities and civil-rights organizations in their calls for a more accurate and nuanced understanding of the problems facing our schools, for a retreat from failed “reforms,” and for better solutions:

• Our school systems need more public investment, not philanthropic experimentation; more democratic governance, not disenfranchisement; more guidance from the profession, the community, and researchers, not from those looking to privatize and profiteer; and more attention to legacies of systemic injustice, racism, and poverty, not neoliberal, market-based initiatives that function merely to incentivize, blame, and punish.

• Our teachers and leaders need more, better, and ongoing preparation and support, more professional experience and community connections, and more involvement in shared governance and collective bargaining for the common good, not less.

• Our vision should be that every student receives the very best that our country has to offer as a fundamental right and a public good; not be forced to compete in a marketplace where some have and some have not, and where some win and many others lose.

The offer for “help” is alluring, and is reinforced by Hollywood’s long history of deficit-oriented films about white teachers saving poorer black and brown students from suffering, as if the solution consisted merely of uplifting and inspiring individuals, rather than of tackling the broader system of stratification that functions to fail them in the first place. Today, more than ever before, the “help” comes in the form of contingent financing for education, and the pressure to accept is intense: shrinking public resources, resounding claims of scarcity, and urgent calls for austerity make it seem negligent to turn down sizable financial incentives, even when such aid is tied to problematic reforms.

The growing number of funders includes high-profile foundations and obscure new funders (including but not limited to the Arnold Foundation, Bloomberg Philanthropies, Bradley Foundation, Broad Foundation, Chan Zuckerberg Initiative, City Fund, DeVos family foundations, Gates Foundation, Koch family foundations, and Walton Family Foundation), and for the most part, have converged on what counts as worthwhile and fundable, whether leaning conservative or liberal, Republican or Democrat (see, for example, the platform of Democrats for Education Reform). Such funders may be supporting some grassroots initiatives, but overall, mega-philanthropy in public education exemplifies the 21st-century shift from traditional donating that supported others’ initiatives with relatively smaller grants, to venture financing that offers funding pools of unprecedented size and scale but only to those who agree to implement the funders’ experiments. Belying the rhetoric of improving schools is the reality that such experiments are making struggling schools look less and less like the top performing schools for the elite, and do so by design, as with the following:

• The Portfolio Model. 



Exemplified in the early 2000s by the turnaround-school reforms in Chicago Public Schools and Race to the Top, and increasingly shaping urban districts across the country today, the “portfolio model” decentralizes decision making, expands school choice, holds schools accountable through performance measures like student testing, and sanctions failing schools with restructuring or closure, incentivizing their replacements in the form of charter schools. This model purports that marketizing school systems will lead to system improvement, and that student testing carries both validity and reliability for high-stakes decisions, neither of which is true.



Instead of improving struggling schools, what results are growing racial disparities that fuel gentrification for the richer alongside disinvestment from the poorer. The racially disparate outcomes should not be surprising, given the historical ties between mass standardized testing and eugenics, and even today, given the ways that “norm referencing” in test construction guarantees the perpetuation of a racialized achievement curve. Yet, the hallmarks of the portfolio model are taught in the Broad Superintendents Academy that prepares an increasingly steady flow of new leaders for urban districts, and not surprisingly, that has produced the leaders that have been ousted in some of the highest profile protests by parents and teachers in recent years. This is the model that propels the funding and incubation of school-choice expansion, particularly via charter schools, through such organizations as the NewSchools Venture Fund and various charter networks whose leaders are among the trainers in the Broad Academy. Imposing this model on poorer communities of color is nefarious, disingenuous, and must end.


• Choice, Vouchers, Charters. 



The expansion of school choice, including vouchers (and neo-voucher initiatives, like tax credits) and charter schools, purports to give children and parents the freedom to leave a “failing” school. However, the research on decades of such programs does not give any compelling evidence that such reforms lead to system improvement, instead showing increased racial segregation, diversion of public funding from the neediest of communities, neglect of students with disabilities and English-language learners, and more racial disparities in educational opportunity. This should not be surprising: choice emerged during the Civil Rights Movement as a way to resist desegregation; vouchers also emerged during this time, when the federal government was growing its investment into public education, as a way to privatize public school systems and divert funding to private schools for the elite; and charter schools emerged in the 1990s as laboratories for communities to shape their own schools, but have become the primary tool to privatize school systems.



Yes, choice and vouchers give some students a better education, but in many areas, students of color and low-income students are in the minority of those using vouchers. Yes, some charters are high performing, but overall, the under-regulation of and disproportionate funding for charter schools has resulted in hundreds of millions of dollars in waste (and even more in corporate profits) that could otherwise have gone to traditional public schools. The NAACP was right when it resolved that privatization is a threat to public education, and in particular, called for a moratorium on charter-school expansion; and the NAACP, MALDEF, ACLU, and other national civil-rights organizations have opposed voucher expansion. Diverting funds towards vouchers, neo-vouchers, and charters must end.


• Teacher Deprofessionalization. 



The deprofessionalization of teaching—including the undermining of collective bargaining and shared governance, and the preferential hiring of underprepared teachers—is foregrounded in charter schools (which often prohibit unionization and hire a disproportionate number of Teach for America teachers), but affects the teaching force in public schools, writ large. The mega-philanthropies are not only anti-union, having supported (sometimes rhetorically, sometimes resourcefully) the recent wave of anti-union bills across the states; but more broadly, are anti-shared governance, supporting the shift toward top-down management forms (including by for-profit management at the school level, and unelected, mayor-appointed boards at the district level). 



The weakening of the profession is also apparent in the philanthropies’ funding of fast-track routes to certification, not only for leaders (like with New Leaders for New Schools), but also for classroom teachers, like with the American Board for Certification of Teaching Excellence, and more notably, Teach for America (TFA). TFA accelerates the revolving door of teachers by turning teaching into a brief service obligation, justified by a redefining of quality teacher away from preparedness, experience, and community connectedness to merely being knowledgeable of subject matter (and notably, after the courts found that TFA teachers did not meet the definition of “highly qualified,” Congress would remove the requirement that every student have a “highly qualified” teacher in its 2015 reauthorization of ESEA, thus authorizing the placement of underprepared teachers in the neediest of schools). 



Parents are being lied to when told that these “reforms” of weakening unions and lessening professional preparation will raise the quality of teachers for their children. Yes, some teachers and leaders from alternative routes are effective and well-intended, but outliers should not drive policy. Students are being lied to when told that choosing such pathways is akin to joining the legacy of civil-rights struggles for poorer communities of color. Not surprisingly, the NAACP and the Movement for Black Lives have called out how initiatives like TFA appeal to our desire to serve and help, but shortchange the students who need and deserve more.

We, as a nationwide collective of educators of color and educational scholars of color, oppose the failed reforms that are being forced by wealthy philanthropists onto our communities with problematic and often devastating results. These must end now. We support reforms that better serve our students, particularly in poorer communities of color, and we will continue to work with lawmakers, leaders, school systems, and the public to make such goals a reality.

The nonprofit, nonpartisan “In the Public Interest” joined forces with Parents United for Public Schools in Oakland to investigate whether charter schools in that city were double-dipping, taking public school money and also taking federal funds intended for small businesses. Their conclusion: Oakland charters have collected close to $19 million that was intended for small businesses.

Their joint report begins:

The COVID-19 pandemic has caused immense job loss, social isolation, and economic hardship. Despite falling short of what’s truly needed, both the federal government and state governments have provided relief through a number of programs, such as the federal Paycheck Protection Program (PPP), which is directed at small businesses in an effort to maintain employment.
Other programs have provided relief to public entities, including public schools. However, some charter schools—which are publicly funded but privately managed—have applied for and received PPP loans despite having no loss in public funding.1 This data brief examines PPP funding within the boundaries of just one public school district in California, the Oakland Unified School District (OUSD), and finds that Oakland’s charter schools have received a total of at least $18,909,300 in loans from the PPP.

The crisis has made clear that public schools are a critical resource for communities, providing information, technology, and food for children and families, even when school buildings are closed. The need for social distancing and sheltering in place has resulted in crisis education strategies that have left families desperate to return to regular schooling. In order to ensure some continuity of education, California Governor Gavin Newsom issued an order maintaining full funding for all public schools, including charter schools, through the end of the school year.2 The order makes clear that the intended use of the continued funding includes paying school employees. This has enabled California public schools to continue to employ all staff with no reduction in state funding, while using additional funds to implement distance learning. In addition, Federal CARES Act funding has been granted to the state of California and will be distributed to all Local Education Agencies (LEAs) that apply and qualify.3 Also, the California State Legislature allocated $100,000,000 to all LEAs (including charter schools) for emergency measures needed to deal with the immediate crisis.4

Separate from state and federal aid for public education, the federal CARES Act established the Paycheck Protection Program (PPP) in order to allow small businesses (as opposed to public agencies and schools) to maintain employment. As described
by the U.S. Small Business Administration: “The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.”5 A subsequent bill extended the covered period to 24 weeks from the date of the loan’s origination, or December 31, 2020, whichever comes earlier.6

The intent of the program is clear: “With the COVID-19 emergency, many small businesses nationwide are experiencing economic hardship as a direct result of the Federal, State, and local public health measures that are being taken to minimize
the public’s exposure to the virus. These measures, some of which are government- mandated, are being implemented nationwide and include the closures of restaurants, bars, and gyms. In addition, based on the advice of public health officials, other measures, such as keeping a safe distance from others or even stay-at-home orders, are being implemented, resulting in a dramatic decrease in economic activity as the public avoids malls, retail stores, and other businesses.”7

Thus far, the PPP has been criticized for a lack of guidance and being difficult to
access for many small businesses.8 For example, Octavio Diaz, owner of the Oakland restaurant Agave Uptown, was forced in April to lay off over 60 percent of staff because the business didn’t have the financial resources to keep a full payroll.9 He’d previously reported applying for a PPP loan but was waiting for a response.10 Beninni, a men’s formalwear store in Hayward, California, was forced to close and lay off employees shortly after the area’s lockdown began.11 After waiting weeks to get an update on its PPP application, the small business finally received a loan through the program only after a reporter reached out to the lending bank for information. A May U.S. Census Bureau survey of 90,000 small businesses found that almost 40 percent had not received PPP assistance.12

While small businesses wither and die, 70% of the charter schools in Oakland have taken money from the PPP intended to help those businesses.

Please open the brief and see how charter schools are double-dipping: first, taking the money intended for public schools, then, taking the federal PPP funding intended for small businesses, even though charter schools have not lost any revenue unlike the tens of thousands of small businesses forced to close because of the pandemic.

What the charter schools have done is not illegal, but it is certainly raises ethical questions. They are taking money from the businesses that are failing and that employ the parents of their students.

As “In the Public Interest” said in a press release,

CONTACT: Jamie Horwitz 202-549-4921, jhdcpr@starpower.net & Jeremy Mohler 301-752-8413, jmohler@inthepublicinterest.org

New Report Reveals that Many of the Nation’s Charter Schools are “Double Dipping,” Taking Millions of Paycheck Protection Dollars Intended for Small Businesses and the Unemployed

Joint study by In the Public Interest and Parents United for Public Schools shows that in Oakland, Calif. alone 30 charter schools received nearly $19 million in federal PPP dollars meant for those in need, despite unchanged state public education funding.

OAKLAND – A new report released yesterday shows that millions of dollars in federal relief funds intended for those in need have been siphoned off by charter schools that have suffered no loss in state education funding while thousands of small businesses remain shuttered and their employees go without work due to the pandemic.

The report focuses on 43 charter schools located in Oakland where 70 percent of the publicly-funded but privately-managed charter schools within the boundaries of the Oakland Unified School District applied for and received federal Paycheck Protection Program (PPP) awards established by the federal CARES Act. Traditional public schools in Oakland and elsewhere are not eligible for PPP funding. The report, entitled Are Oakland Charter Schools Double Dipping?, was conducted by the Oakland-based Parents United for Public Schools and the nonprofit research and policy center In the Public Interest.

The findings are significant because California’s open meetings laws require board meetings and the minutes of charter schools to be made public.. In most of the country, charter school finances are less transparent, and the U.S. Department of the Treasury has refused to release the names of recipients of PPP awards. The United States has 7,000 charter schools.

“This report shows the need for more oversight and transparency in the charter school sector,” said Clare Crawford, senior policy advisor with In the Public Interest. “It’s not right for charters to act like a business on Monday and a public school on Tuesday. Having it both ways leads to double dipping and unethical raids on the public till. We deserve to have the full picture on how precious public dollars are being spent, especially now, during this time of need,” she said. “Every local public official and reporter should be asking if their charters took PPP money and how much.”

The New York Times cites the Oakland study in a story yesterday, “Charter Schools, Some With Billionaire Benefactors, Tap Coronavirus Relief,” that finds further examples of double dipping by charter schools all across the nation and documents how the charter school industry has sought federal dollars intended for private business’ struggling due to the pandemic.

Some key elements of the Parents United for Public Schools/ In the Public Interest report include:

Oakland charter schools have received a total of at least $18,909,300 in forgivable loans from the PPP.
Thirty charter schools have received PPP loans despite having no loss in public education funding.
Charter schools that received both PPP loans and CARES Act education relief funding received an average of $2,000 more per student than either Oakland Unifed School District public schools or charter schools that did not.
“It’s really concerning that so many charter schools are choosing to take these funds from local small businesses that employ Oakland families. If charter schools receive funds as a ‘public school,’ they should not then be eligible for small business loans intended to help keep families from being laid off,” said Kim Davis, a parent and co-founder of Parents United for Public Schools.

Charter schools are considered public schools under California law, as they are in many other states, yet they are also incorporated as nonprofit organizations. This has allowed them to access both public school funding and aid intended to support maintaining employment at small businesses and nonprofits.

Parents United for Public Schools is an independent, parent-led organization focused on building a strong parent voice on behalf of Oakland’s public schools. In the Public Interest is a nonprofit research and policy center that studies public goods and advocates for building popular support for public institutions that work for all of us.