Archives for category: Scandals Fraud and Hoaxes

The Center for Popular Democracy released a bombshell report on the financial consequences of charter deregulation and lack of public oversight. It is called “The Tip of the Iceberg: Charter School Vulnerabilities to Waste, Fraud, and Abuse.”

 

When public money is handed over to private corporations or individuals to operate schools, there must be regular monitoring of  and audits. Absent financial monitoring, the result is predictable: waste, fraud, mismanagement, and financial abuse. Does this help education? No, it enriches people who are either in the education business for the money or incompetent to manage the finances of a school.

 

Here is the executive summary released with the report:

 

A year ago, the Center for Popular Democracy (CPD) issued a report demonstrating that charter schools in 15 states—about one-third of the states with charter schools—had experienced over $100 million in reported fraud, waste, abuse, and mismanagement. This report offers further evidence that the money we know has been misused is just the tip of the iceberg. Over the past 12 months, millions of dollars of new alleged and confirmed financial fraud, waste, abuse, and mismanagement in charter schools have come to light, bringing the new total to over $200 million.

 

Despite the tremendous ongoing investment of public dollars to charter schools, government at all levels has failed to implement systems that proactively monitor charter schools for fraud, waste, abuse, and mismanagement. While charter schools are subject to significant reporting requirements by various public offices (including federal monitors, chartering entities, county superintendents, and state controllers and auditors), very few public offices regularly monitor for fraud.

 

The number of instances of serious fraud uncovered by whistleblowers, reporters, and investigations suggests that the fraud problem extends well beyond the cases we know about. According to standard forensic auditing methodologies, the deficiencies in charter oversight throughout the country suggest that federal, state, and local governments stand to lose more than $1.4 billion in 2015.b 1 The vast majority of the fraud perpetrated by charter officials will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud.

 

Setting up systems that detect and deter charter school fraud is critical. Investments in strong oversight systems will almost certainly offset the necessary costs. We recommend the following reforms:

 

Mandate audits that are specifically designed to detect and prevent fraud, and increase the transparency and accountability of charter school operators and managers.
Clear planning-based public investments to ensure that any expansions of charter school investments ensure equity, transparency, and accountability.
Increased transparency and accountability to ensure that charter schools provide the information necessary for state agencies to detect and prevent fraud.
State and federal lawmakers should act now to put systems in place to prevent fraud, waste, abuse and mismanagement. While the majority of state legislative sessions are coming to an end, there is an opportunity to address the charter school fraud problem on a federal level by including strong oversight requirements in the Elementary and Secondary Education Act (ESEA), which is currently being debated in Congress. Unfortunately, some ESEA proposals do very little reduce the vulnerabilities that exist in the current law. If the Act is passed without the inclusion of the reforms outlined in this report, taxpayers stand to lose millions more dollars to charter school fraud, waste, abuse, and mismanagement.

 

 

To read the full post: http://populardemocracy.org/sites/default/files/Charter-Schools-National-Report_rev2.pdf

 

It contains a long list of examples of charter fraud, waste, abuse, and mismanagement. And it is only the tip of the iceberg.

 

 

 

 

 

Nicholas Kristof seems to have a very big hatred for American public education. Did he go to public schools? Did he have horrible teachers? What does he have against this democratic institution that is part of the fabric of every community in the nation?

 

The Daily Howler, which catches journalistic fraud, lambastes Kristof for cherry-picking statistics to make American students look stupid.

 

In his latest screed against our schools and teachers, Kristof offers an example of a question on TIMSS where American students got a low score. There were 88 sample questions. Kristof picked the question where American students did the worst.

 

In a remarkably deceptive way, Kristof cherry-picked through that long list of questions. The question about the three consecutive numbers is, quite literally, the question on which American kids did least well out of all 88 as compared to the rest of the world.

 

Let’s make sure you understand that! Quite deliberately, Kristof chose the least representative example out of 88 possible items.

 

He led his column with that unrepresentative example. He then pretended it shows that stupid-ass Johnny “can’t count.”

 

Assuming the TIMSS data are accurate, why did American kids perform so poorly on that one question? We have no idea. We also can’t explain why American kids outscored every nation, including Singapore, on the question called “Median number of staff members.” But, by God, they did!

 

In fact, they outperformed all nations, including Singapore, by a wide margin on that one question. An equally dishonest person could cherry-pick that one example to advance the false impression that U.S. eighth-graders lead the world in math…..

 

Please. On the test to which Kristof referred, American kids basically matched their counterparts in Finland. They outscored glorious Sweden by 25 points, with its average score of 484.

 

Germany didn’t take part on the eighth grade level in 2011. It did participate at the fourth grade level, where its kids were outscored by kids from the U.S.

 

(Other scores in Grade 8 math: Great Britain 507, Australia 505, Italy 498, Norway 475.)

 

“We know Johnny can’t read; it appears that Johnny is even worse at counting!” It’s hard to imagine why someone like Kristof would want to write such a thing. But such deceptions are completely routine within our upper-end press corps. This has been the reliable norm for a very long time.

 

We know of no topic on which Americans are so persistently disinformed by American pseudo-journalists. Yesterday, Kristof took the dissembling and the deception to a remarkable low.

 

Kristof seems to get stranger by the month. As Shakespeare thoughtfully asked, “On what meat doth this our Times pseudo-journalist feed?”

 

Just for the record: The other examples Kristof presents are also cherry-picked. He had to sift through 88 examples to mislead his readers so.

 

Why in the world would a life-form like Kristof deceive his readers this way? Beyond that, what makes him so eager to denigrate American kids?

 

 

PS: Thanks to reader Chiara for bringing this post to my attention in the comments.

 

MOOCs are Massive Open Onliine Courses. Many see them as the grand destiny for higher education, opening access for all at a low price. Some courses are taught simultaneously to thousands of students by star professors.

But here is a shocking statistic, reported by politico.com:

“A dismal 7 percent of MOOC students finish their courses.”

I can imagine huge improvements in online courses. They could take advantage of graphics and intetactive tools. Maybe they are the future. But we aren’t there yet.

In response to a post about the predatory for-profit higher education industry, reader Chiara sent the following comment to remind us of how the for-profit industry buys influence in Washington, D.C. and avoids regulation:

To get a sense of how powerful the for-profit lobby is, read this:

“Anita Dunn, a close friend of President Obama and his former White House communications director, worked with Kaplan University, one of the embattled school networks. Jamie Rubin, a major fund-raising bundler for the president’s re-election campaign, met with administration officials about ATI, a college network based in Dallas, in which Mr. Rubin’s private-equity firm has a stake.
A who’s who of Democratic lobbyists — including Richard A. Gephardt, the former House majority leader; John Breaux, the former Louisiana senator; and Tony Podesta, whose brother, John, ran Mr. Obama’s transition team — were hired to buttonhole officials.
And politically well-connected investors, including Donald E. Graham, chief executive of the Washington Post Company, which owns Kaplan, and John Sperling, founder of the University of Phoenix and a longtime friend of the House minority leader, Nancy Pelosi, made impassioned appeals.”

http://www.nytimes.com/2011/12/10/us/politics/for-profit-college-rules-scaled-back-after-lobbying.html

This is why I cannot believe anyone is seriously suggesting we can contract out public schools and it will be on the up and up and “well-regulated”. No, it won’t. Lawmakers will be captured and it will be a free for all. The big losers will be poor people, just as the big losers are poor people in the for-profit college scams.

Ed reformers are freaking kidding themselves with this “well-regulated! non-profits!” fantasy. It’s a weirdly arrogant assumption that they are all honorable and well-intended, so immune to this stuff. They’re not immune.

The burgeoning of the for-profit college industry has wasted billions of taxpayer dollars, sent many thousands of students out into the world with shoddy educations, and made a few people very rich.

One of the organizations that should have been closed down by the U.S. Department of Education is Corinthian Colleges. Here, Peter Greene reviews its sordid history, including the fact that the U.S. Department of Education bailed it out when it needed money, and Corinthian sold off many of its campuses to be run by a DEBT COLLECTION AGENCY. I put that in caps because it is incredible but true.

Greene writes:

“Folks who find themselves in debt for Corinthian educations, but without any marketable skills that would allow them to make money– those folks got in this mess by driving past a dozen corners where there should have been big bright neon red flags. But there were no flags there, because the gatekeepers had taken the flags down and stuffed them in their back pockets.

“Corinthian has a repeatedly gotten in trouble for lying, false advertising, misrepresenting itself, and promising what it could not deliver. But the feds did not shut them down, did not demand they put a warning label on their applications, did not publicly chastise them in a manner that might have given applicants pause. And when Corinthian actually started to suffer the free-market consequences of bad behavior, the feds stepped in to protect not the students, but the investors and operators. They actually crafted a plan to allow Corinthian to draw in more students!

“And the loans? If I go to buy a house, and I visit the bank for a mortgage loan, generally speaking the bank (excepting the years between, say, 2002-2008) will make sure that they don’t lend me more than I can pay, and they will also demand an assessment of the house so that they know I’m getting their money’s worth in my purchase. Who was exercising such oversight of these college loans? Apparently, nobody.”

The details of the Texas voucher plan were released, and the politicians pushing it can’t wait to siphon money away from the state’s underfunded public schools. They show no remorse for cutting $5 billion from the public schools in 2011, and now they are back looking for ways to drain even more money away from the public schools that enroll about 90% of the children in the state.

 

As a graduate of the Houston public schools (San Jacinto High School, class of 1956), I resent that these men are tearing down their community’s public schools. They claim they want to “save poor kids from failing schools,” but the schools aren’t failing: the politicians are failing the schools. Poor kids can’t learn when they don’t have access to decent medical care, when they don’t have enough to eat, when they are deprived of necessities that advantaged families take for granted. Poor kids will learn better if they have smaller class sizes, experienced teachers, and a full curriculum instead of incessant testing. By cutting funding and sending it to religious schools, the Texas legislators will guarantee larger classes and a stripped-down curriculum. Furthermore, while they won’t pay for what kids need, they have set aside millions for the inexperienced temps called Teach for America, most of whom will disappear after two years.

 

I am proud to be a native Texan, but I am not proud of the men who are destroying the public schools that educated me and my family and made it possible for me to go to a good college.

 

If I were in Austin, I would say to State Senator Larry Taylor and Lieutenant Governor Dan Patrick that vouchers and tax credits (backdoor vouchers) hurt the great majority of children who attend public schools. I would say to them that they should take a trip to Milwaukee, which has had vouchers for 25 years, and is one of the lowest scoring cities on the NAEP federal tests. I would tell them that poor black children in Milwaukee are doing worse in voucher schools than they were in public schools. I would tell them they are cheating the children of Texas, to placate their ideology and their pals in the corporate world.

 

I would tell them to hang their heads in shame.

 

John Merrow posted an important reflection on the broader issues raised by the Atlanta cheating scandal.

““Things fall apart; the centre cannot hold,” William Butler Yeats wrote in 1919 in ‘The Second Coming.’ Yeats was describing the world after the Great War, but it aptly describes American education today[1]: polarized, shouting at, but rarely listening to, each other. We disagree about dozens of issues: the Common Core; whether ‘opting out’ of the Common Core tests is appropriate (or even legal); the role of unions; the effectiveness of charter schools; the federal role; the amount of standardized testing; how to evaluate teachers; poverty’s impact on children’s learning, and more.

“Now, out of the blue, we have two[2] points of agreement: 1) Draconian punishment for the Atlanta cheaters is unjust, unseemly and counter-productive; and 2) students are the losers when adults cheat….”

“Everybody’s got a villain, whether it’s Arne Duncan’s Race to the Top; an obsession with ‘data-driven decision-making; education profiteers; greedy teacher unions; or a right wing vendetta against those same unions. [5]

“Can’t we agree on something else? I suggest two big ideas that everyone who is genuine about putting kid first can support. One, expose hypocrites and hypocrisies, wherever they may be. Two, school spending should be transparent, because we are talking about taxpayer dollars, and sunlight is the best disinfectant.

“Of course, the two are related, because hypocrisy often involves money and secrecy.

“To me, the biggest hypocrites are those who preach, “Poverty can never be offered as an excuse” (for poor student performance) but then do nothing to alleviate poverty and its attendant conditions. What they are saying, bottom line, is “It’s the teachers’ fault” when kids in poverty-ridden schools do poorly on tests or fail to graduate…..

“OK, poverty is not an excuse, but surely substandard housing, inadequate health care, poor nutrition, abuse and abandonment (all of which are more likely in high poverty areas) are factors in poor academic performance. So why are these hypocrites either standing by silently or actively opposing efforts to alleviate poverty and thereby improve the lives of students outside of school?….

“Even if these so-called “thought leaders” genuinely believe that poverty is not an excuse, shouldn’t they be outraged that most states are actively making things worse for poor kids [6]? At least 30 states are systematically shortchanging poor areas when they distribute education dollars, as the Hechinger Report made clear recently. “The richest 25 percent of school districts receive 15.6 percent more funds from state and local governments per student than the poorest 25 percent of school districts, the federal Department of Education pointed out last month. That’s a national funding gap of $1,500 per student,” Jill Barshay reports.”……

“We might want to start the investigation with charter schools, both the for-profit and the non-profit varieties [8] (because, when it comes to money, they’re almost indistinguishable). Rarely do they disclose how they spend their public tax dollars. And why should they, when their political enablers don’t demand it?

“I hope you are following Marian Wang’s reporting on this issue for Pro Publica. She documents how some charter operators are laughing all the way to the bank, taking your dollars to put in their accounts….

Merrow then describes an egregious case of charter profiteering, which he brought to the attention of Nina Rees, the Executive Director of the National Alliance for Public Charter Schools (who formerly worked for Dick Cheney and Michael Milken).

Merrow asked her in a letter:

“What I wonder is how many Charter Management Organizations [9] are playing fast and loose with the system. Here’s one case in point: We are looking into a CMO that is growing; its records indicate that its President owns the building his charter schools operate in, and so he bill the CMO for rent—a hefty sum. The CMO pays him a salary, a 16% management fee and an additional 7% or so for ‘professional development’ for the staff. In recent years he has added categories, notably ‘back office & support’ for nearly $300,000 and ‘miscellaneous equipment rent’ for $317,000. In FY 2008 he billed for $2.6M, but in FY 2012 the number climbed to $4.1M. His 5-year total is $15.8M….and he’s a CMO, not an EMO.

“We have a number of other examples, which prompts my questions: who’s minding the store, and whose responsibility is it?

“Is it the role of national organizations like yours to set standards for transparency? State politicians? I have no idea but would love to hear your thoughts.”

She said this was the authorizers’ responsibility.

Merrow summarized her response:

“She seems to be saying that her national organization bears no responsibility for policing the charter movement, for pushing states to write tighter rules, or for calling out the profiteers. That’s someone else’s job.”

And his last suggestion:

“Remedial education” is another money pit. Follow the money, you will discover that big bucks being spent on remedial education at every level, and, while some kids get ‘remediated,’ the situation never changes. The adults in charge may be wonderful, likeable human beings, but their jobs depend on a steady stream of failed students, meaning that they do not have a stake in fixing the system. I wrote about this three years ago when I announced that I was leaving PBS [10] to make my fortune in remedial education.

“Follow the money: How many millions of the $100 million Mark Zuckerberg donated to ‘fix’ Newark’s public schools have gone to consultants? How much money goes into the trough labeled ‘professional development’ and is never seen again? How much are school systems spending on highly paid central office staff ($100K+ per year) whose job it is to go watch teachers they don’t trust to do their jobs? How much of the increase in college costs is directly attributable to spending on administrators? Quite a lot, according to the New York Times.

“Schools would be improved if we’d agree to: Follow the money. Call out the hypocrites. Demand transparency. And stop blaming teachers.”

A wonderful column!

Blogger Yinzercation has an excellent article explaining the negative effects of “tax credits” on public education.

“While our legislators are busy looking under their sofa cushions for spare change to fund the state budget, they might want to consider the $75 million that just walked out the front door. That’s how much the Education Improvement Tax Credit (EITC) program costs us taxpayers every year.

“The misnamed EITC program has nothing to do with educational improvement and everything to do with funneling what would have been state budget dollars into private schools, while increasing profits for corporations. Here’s how it works: corporations can get an EITC tax credit by contributing to a Scholarship Organization, which channels the money to private schools. The companies receive up to 90% of their contributions as a tax credit, worth up to $300,000 per year, and can get a federal tax write-off as well, making the program highly attractive.

“Not only do corporations get a tax write-off, but they also receive good publicity and increased access to legislators. For example, gas driller XTO Energy (now owned by Exxon) donated $650,000 over the past three years allowing it to stage ceremonies all over the state at the time when its fracking technique was coming under intense scrutiny. The New York Times reported last week that a state official credited XTO with going “ ‘above and beyond’ its duty” when “[i]n reality, as much as 90 percent of XTO’s donation was underwritten by taxpayers.” [unless otherwise noted, all quotes from New York Times, May 21, 2012]….”

“And there is no accountability for that $75 million. The Keystone Research Center analyzed the EITC’s K-12 component (the program also funds pre-K scholarships and ‘educational improvement organizations’ that work with public schools) and found that “schools benefiting from the EITC scholarships are not required to report on student progress or document school quality.” [Keystone Research Center report, April 7, 2011]

“In fact, the legislature outlawed any attempts to collect such information and the program is actually managed by the Department of Community and Economic Development – not the Department of Education.

“With practically no state oversight, the public has almost no financial information on the organizations receiving tax credits or distributing scholarships. The Keystone report warns, “Experiences in Arizona indicate that a lack of financial accountability opens the door to the misuse of public funds.” And we’re talking about a program that provides scholarships to over 38,000 students to attend private and religious schools – that’s more than the number of students in the Pittsburgh Public School District.”

EITC is a “backdoor voucher program” promoted by ALEC and the voucher advocates “American Federation for Children.”

It is intended to undermine public education and funnel public money to private and religious schools with NO accountability.

Never forget: Vouchers have never won at the ballot box.

WOW.

This is a remarkable and candid story of Jorge Cabrera, who joined the reform movement as a believer. He wanted to help the children of Bridgeport, where he grew up. He wanted better schools. He was a community organizer for Excel Schools.

And then he learned the truth.

“As I began my work in the “education reform movement” in Bridgeport, I noticed a plethora of ivy league educated “consultants” and “transformational leaders” that littered the often loose coalition of funders, new organizations and executive directors. From the beginning, it was clear that many of these new “leaders” that were emerging were well credentialed. They had graduated from prestigious universities and, it was presumed (though not by me), that alone qualified them to lead. Many were very young (recent graduates), energetic, unmarried with no children and little life experience. They often exhibited a cultish commitment to “the movement.” Their zeal for “education reform” and “saving the children” often resulted in a bizarre abdication of critical thinking that made a mockery of their high priced “education.” For instance, in many meetings I attended, many of these acolytes extolled the virtues of charter schools as the only solution to closing the achievement gap in Bridgeport but never once did anyone bother to discuss the ample research (i.e. “Teaching with Poverty in Mind” ) available regarding the negative impact of poverty on academic achievement or that Bridgeport had several public magnet schools that outperformed (as measured by standardized test scores) many charter schools. These magnet schools had long track records (20 plus years) of success and I assumed we should advocate for what we know, firmly, works. Despite this evidence, there was never any serious discussion regarding expanding magnet school options or advocating for high quality, universal preschool programs (research shows the achievement gap begins at this level). The entire approach to “education reform” lacked any serious understanding of the many variables (i.e., social-emotional issues, poverty, funding, English language learners) that clearly effect a child’s ability to learn. Anytime a more dynamic and multifaceted approach to closing the achievement gap was raised it was quickly dismissed as “making excuses.” The atmosphere vacillated between a callous indifference to the real challenges Bridgeport children faced and arrogant dismissiveness. Permeated throughout these various organizations that formed a loose network of power was a culture that prized blind dedication to the “mission” and socially affirmed and promoted those who obeyed and exhibited “urgency” in “reforming” the “failing schools.” The people in “the movement” made it clear that it was up to the “best and brightest” of minds to “transform” the “system” as “outside influencers.” By “best and brightest” they almost exclusively meant people who would do their bidding without question and certainly not anyone that would exhibit any degree of independent or critical thought. On more than one occasion, when the argument was made that the solutions to the multilayered challenge of public education needed to come from the people and required an authentic, engaging process with the Bridgeport community the response was often glib at best. I recall in one strategic planning meeting when I advocated for authentic engagement and patience to allow parents the time to become informed on the various issues and was told to, “just use language to convince” the parents and impress upon them a sense of “urgency.” Another person told me, “It’s all about how you say it…..”

“I began to sense that someone or something I was not fully aware of was calling the shots behind the scenes and many of these young ivy leaguers were the mercenaries on the front lines tasked with implementing the agenda. This whole enterprise was quickly becoming astroturfing and I was in the middle of it. Worse, I was starting to feel like I was hired to put lipstick on a pig and it was beginning to burn me on the inside. Nevertheless, through it all, I never gave up hope and tried to create spaces for honest, authentic and fact based discussions inside “the movement” with limited success.”

The reformers decided that Bridgeport needed mayoral control, so the mayor could open more charters faster. In the run-up to the election, high-priced media consultants arrived to take charge.

“Immediately, the focus was on marketing and sloganeering. Worse, we were trying to build the plane while it was in the air! The whole thing was rushed and disorganized. We were told to make sure we communicated to the public that voting in favor of the city charter change was good for parents, students and would lead to better academic outcomes. The insinuation was that anyone who was against the charter revision changes was anti-child or anti-education. When parents or community leaders asked questions that required more substantive, fact based responses we were coached to respond to everything in soundbites and with shallow arguments that lacked any grounding in reality. It was the worse kind of insult to the community’s intelligence and pandered to the worse aspects of human nature and—it almost worked.”

” My nearly three years in the “movement” in Bridgeport revealed to me the incredible lengths that private, often unseen and unaccountable power will go to in order to create and capitalize on a crisis. In Bridgeport, that crisis in our public education system was created by powerful forces at the local and state level who systematically starved the school system by withholding necessary school funding (Shock #1) which then created a crisis that set the stage for a takeover (Shock #2) of the Bridgeport board of education on the eve of the fourth of July in 2011. Essentially, these forces were engaged in a form of social engineering under the guise of “urgency” and “reform.” To be clear, in this “movement” there are people who have good intentions and sincerly want to improve the conditions of Bridgeport’s public schools but they do not sit at the tables of power when strategic decisions are made and their voices are often silenced. Their talents, skills and knowledge are often used to serve a larger, opaque agenda that is dictated by a radical ideology of deregulation and privatization. Shot throughout most, if not all, of the education reform “movement” you will find the radical ideology of economist Milton Friedman. Looking back, there were moments when this mindset (disaster capitalism) was revealed to me in meetings. On one occassion, a very influential operator in the “education reform” community was discussing the “amazing opportunity” that revealed itself after hurricane Katrina in New Orleans desimated the population and led to the “charterization” of the public school system. He expounded that sometimes you have to, “…burn the village to save it…” and that what we (the “reform community”) are essentially involved in is, “creative destruction.” Worse, he argued that we needed a “clean slate” in order for real “change” to happen in the school system in Bridgeport. But this was my home. This was the city I grew up in and where most of my family lived and worked. You want to burn down their city!? You want to destroy it so you can be creative!? For whom? It was all surreal. I was done.”

It’s an incredible story that confirms your darkest suspicions.

If you live in or near Milwaukee, try to meet and hear these veterans of the Great Néw Orleans Con Job:

On March 26th and 27th you will have a chance to interact with three activist immersed in the fight for public education in New Orleans.

On Thursday, March 26, 2015 at 4:30 p.m. at Milwaukee High School of the Arts (2300 W. Highland Ave.) they will conduct workshops. All are invited.

Friday, March 27, 2015 • 6:00 p.m. at Parklawn Assembly of God (3725 N. Sherman Blvd.) they will participate in a community meeting and panel.

Karran Harper Royal is a New Orleans
public school parent who
cares about real education
reform. She is an advocate
for disabled and challenged
children and an educational
policy consultant.

Dr. Raynard Sanders
has more than 30 years of
experience in teaching,
educational administration,
and economic/community
development. He is a former
New Orleans high school principal.

Dr. Kristen Buras is an
associate professor in
Educational Policy Studies
at Georgia State University
in Atlanta. Buras has spent
the past decade researching
school reform in New Orleans.

See below for leaflets for both events:

Education Conversation 2015

Expert Panel Flyer 2015