Archives for category: Virtual Charter Schools

John Thompson, historian and retired teacher, writes in the Progressive about the epic failure of a for-profit virtual school in Oklahoma.

The Epic virtual charter school was well positioned to benefit from the demand for remote learning during the pandemic. But it just happened that its great moment was spoiled by the state’s discovery of financial irregularities.

On October 12, Oklahoma’s Board of Education demanded that Epic Charter Schools, a statewide online charter, refund $11 million to the state. The decision came after the first part of a state audit showed that Epic charged the school district for $8.4 million in improperly classified administrative costs between 2015 and 2019, as well as millions of dollars for violations that the state previously failed to address.

The second part of the audit will investigate the $79 million in public money that was directed to a “learning fund,” an $800 to $1,000 stipend for students enrolled in Epic’s “One-on-One” individual learning program. While the funds were intended to cover educational expenses, a search warrant issued by the Oklahoma State Board of Investigation found that they may have been used to entice “ghost students,” or students that were technically enrolled—and therefore counted in Epic’s per-pupil funding requests to the state—but received minimal instruction from teachers.

Despite the controversy surrounding Epic, the school has received a total of $458 million in state funds since 2015, according to the audit report. More than $125 million of this money went to Epic Youth Services, a for-profit management company owned by the school’s co-founders, David Chaney and Ben Harris. 

Following the audit’s release, the Oklahoma Virtual Charter School board began investigating forty-two potential violations that could lead to the termination of the contract allowing Epic’s One-on-One program to operate. 

The state money flowed freely to Epic at the same time that the state underfunded its public schools.

The state chose to fund a for-profit charter instead of trusting the advice of its educators about proper use of online learning:

Although Oklahoma’s education leaders couldn’t have foreseen that schools would be confronted with the coronavirus, they could have done a better job at creating the infrastructure for quality online learning. Rather than take the for-profit shortcut, they would have done better to follow the rubriclaid out in 2019 by the Cooperative Council for Oklahoma School Administration (CCOSA), which called for: 

Highly qualified teachers certified in the courses taught;

Virtual courses that supplement in-person learning once the school—working in cooperation with parents—identifies the options that are educationally appropriate and best fit each student’s needs;

Equity to ensure students have a “place” where they have opportunities for extracurricular activities, access to transportation, nutrition and counseling services, along with immediate remediation as soon as the teacher identifies that a student is struggling;

Transparency on financial and data reporting.

Following CCOSA’s advice would have provided more financial transparency, but the biggest advantage would have been in terms of the “people side” of education. 

CCOSA’s framework would have monitored students who were not attending or slipping further behind. It would have laid a foundation of trust and communication. Its system of using technology and teamwork to improve learning would have been invaluable when in-person instruction was shut down without warning. 

Several smaller districts had already made thoughtful efforts to provide holistic virtual instruction and blended learning, as they wrestled with corporate school reform mandates and budget cuts. 

If the state hadn’t gambled on Epic as the pioneer for online instruction, those efforts could have led to digital technology being used in a fairer and more equitable way.  

Why listen to respected educators when for-profit sharks are in the water?

A recent state audit of Epic Charter Schools documented many financial problems. As a result, the state’s Virtual Charter School Board has initiated a contract termination process in which Epic will have a chance to present its case against closure. The board voted 3-1.

The one board member who voted no was Phyllis Shepherd. It turns out that she is related to the founder of the Epic charter school. She had wished him “happy birthday” and “happy anniversary” on social media posts and signed it “Aunt Phyllis.”

One member of the board was missing:

Absent at Tuesday’s meeting was board member Mathew Hamrick, who was censured and stripped of his seat on a newly formed audit committee by a majority vote of his fellow board members in September.

Hamrick was accused of intentionally avoiding public votes by the board in 2019 and 2020 on matters seeking to unmask Epic’s use of tens of millions of taxpayer dollars to date budgeted for student learning that Epic, the largest online school operator, is keeping private and for going rogue on the board’s official position in a legal battle over Epic Charter Schools’ spending records.

In late July, Hamrick signed an affidavit on behalf of Epic’s for-profit operator, which is shielding Epic’s Learning Fund spending records — and in direct opposition to the official position of the Statewide Virtual Charter School Board.

Hamrick ran for Senate District 45 during a 2017 special election but was defeated in the Republican primary. Records from the Oklahoma Ethics Commission show that Epic co-founder and co-owner of Epic Youth Services charter school management company David Chaney contributed to Hamrick’s 2017 campaign.

On Monday, the Oklahoma State Board of Education, which accredits all public schools in Oklahoma, voted unanimously to demand back $11.2 million in taxpayer funds based on the investigative audit by the State Auditor and Inspector’s Office.


Tom Ultican, retired teacher of physics and advanced mathematics, has been studying the spread of the fake “reform” efforts across the nation (aka the Destroy Public Education Movement).

In this post, he reviews the damage done by authoritarian education “leaders” who have robbed students and teachers of the joy of learning while attacking public schools. He names names.

He begins:

For more than two decades, bureaucratic style top down education “reform” has undermined improvement efforts by professional educators. For budding teachers, beginning in college with the study of education and their own personal experience as students, an innate need to better education develops. However, in the modern era, that teacher energy to improve education has been sapped by the desperate fight to save public education from “reformers,” to protect their profession from amateurs and to defend the children in their classrooms from profiteers. 

Genuine advancements in educational practices come from the classroom. Those edicts emanating from government offices or those lavishly financed and promoted by philanthropies are doomed to failure...

Sadly, every business and government sponsored education innovation for the past 40 years has resulted in harm to American schools. Standardized education, standardized testing, charter schools, school choice, vouchers, reading science, math and reading first, common core, value added measures to assess teachers and schools, mandatory third grade retention, computer based credit recovery, turnaround schools, turnaround districts, and more have been foisted on schools. None of these ideas percolated up from the classroom and all are doing harm.

Ben Felder wrote a comprehensive review of the State Auditor’s report about EPIC charter schools. EPIC has previously been fined more than half a million dollars for overspending on administration. The audit proposes that for-profit management of charter schools should be ended. The following is an excerpt. Online charter schools are immensely profitable regardless of the quality of services they provide. Governor Stitt of Oklahoma is a Trump-DeVos ally. The state is fortunate to have a state superintendent, Joy Hofmeister, who is doing her best to improve public schools, which are underfunded. In a state that does not pay for its public schools, it makes no sense to fund an alternative system of charter schools using dollars subtracted from public schools.

Felder writes:

In presenting the findings of her investigation into Epic Charter School’s financial management, State Auditor Cindy Byrd opened her remarks at a Thursday news conference with a clarification that her audit was “not an indictment of charter schools or the charter school model.” 

But in her report, Byrd highlighted the ways in which current state laws, regulations and practices have failed to prevent the type of abuse she was accusing Epic of committing. 

She also recommended a significant change to how charter schools operate, including the end of for-profit organizations managing charter schools.

The Charter School Act has freed charter schools from some of the regulations created for traditional public schools and has provided a statutory shield that allows for some reduced financial accountability and less than full transparency,” the audit stated. 

“The generous privileges granted to charter schools by the legislature are ripe for potential abuse.”

There are around 20 charter school systems in Oklahoma, most located in Oklahoma City or Tulsa, and many with a focus on serving low-income students. 

“Brick and mortar” charter schools, which are managed much like a traditional school with a building and classroom teachers, operate with some anonymity, including the ability to set their own schedules and curriculum. 

Virtual charter schools operate with significantly more flexibility, including with attendance, staffing and disbursement of funding. 

Epic operates separate virtual and “blended” schools.

The state Department of Education oversees many aspects of a charter school’s finances, including compliance with federal programs, expenditure and revenue coding, and accreditation. 

However, the state’s audit of Epic said the school’s financial reports are “accepted at face value by (the state Department of Education) without on-site followup,” even when the reports appeared questionable, such as when hundreds of teachers were listed with the same 60/40 percentage split between Epic’s virtual and blended schools. 

“Again, oversight exists, but true accountability is lacking,” the audit stated.

The state Department of Education has penalized Epic in the past when it has spotted violations of state statute, including this year when the virtual school was penalized more than $530,000 for exceeding the state limit on administrative spending, a limit meant to keep the bulk of state education funding in the classroom. 

But Byrd’s audit claimed state education officials failed to enforce other financial reporting violations, even when they were known. 

In Fiscal Year 2016, the state auditor claims Epic officials intentionally misreported administrative costs in an apparent effort to avoid a possible $2.6 million penalty. State education officials questioned the practice but ultimately accepted Epic’s reporting. 

The audit said the state Department of Education and Epic “share the responsibility for the breakdown of the process, which resulted in no penalty to (Epic) and no accountability for the reclassified administrative costs.”

State Superintendent Joy Hofmeister toured the Central Oklahoma PPE distribution warehouse for schools in Oklahoma City on Aug. 18, 2020. BEN FELDER/The Frontier

State Superintendent Joy Hofmeister said a rule change passed by the state Board of Education earlier this year has remedied some of the problems with the administrative cost reports that the department was forced to accept in 2016.

But she said the department is still limited in many ways when it comes to holding charter schools accountable. 

“The audit findings also point to clear limitations the Oklahoma State Department of Education has had for decades in terms of ensuring the full veracity of millions of data points and school-certified information submitted to the agency,” Hofmeister said in a statement to The Frontier. 

“This is unacceptable and investments in modernization efforts must be a collective priority. We must do better, and we will do better.”

Gov. Kevin Stitt, who ordered the audit of Epic last year, said the “initial findings are concerning,” but also said he did not see it as an indictment on charter schools as a whole. 

Gov. Kevin Stitt speaks during a media conference at the state Capitol on June 30, 2020. BEN FELDER/The Frontier

“I am grateful for Auditor Byrd’s extensive work on this report and agree that her findings are not representative of all public charter schools or alternative forms of education,” Stitt said in a Thursday statement.

Like the traditional school system, Oklahoma’s charter schools are diverse and operate under various agreements and procedures. Many are referred to as “mom and pop charters,” meaning they are locally controlled, rather than operated by a national organization. 

Oklahoma’s charter schools also vary in academic performance with some ranking high on state assessments, while others struggle with low test scores.

Charter schools have been a topic of political debate for decades and Epic has consistently responded to allegations of financial mismanagement with claims they are under political attack. 

In its initial response to the audit, Epic officials did not address its findings but instead accused Byrd of “attacking parents’ rights to choose” the school that is best for them. 

“Once you cut through the theatrics of today’s announcement, the conclusion of the report calls for changes to the law; it does not assert that laws have been broken,” Epic said in a statement. 

Byrd’s audit does call for law changes, including a reference to a California law that prohibits charter schools from being operated by a for-profit organization or entering into a subcontract for management services with a for-profit organization, which is how Epic operates. 

At least one other Oklahoma virtual charter school, E-School Virtual Charter Academy, uses a private company to manage many of its expenses, including paying its superintendent and assistant superintendent. 

“Other states have already determined for-profit charter management organizations do not benefit taxpayers,” Byrd’s audit said. “Oklahoma should consider the same.”

I have posted many times about the corruption embedded in the for-profit virtual charter industry. The founder of Pennsylvania’s largest virtual charter school was sentenced to prison for misappropriating $8 million. The single biggest scam in U.S. history involved an online charter chain in California called A3, whose owners managed to make $50 million in state funding disappear. The Electronic Classroom of Tomorrow (ECOT) in Ohio collected $1 billion over its nearly two decades, its owner paid his companies for supplying services, he made generous gifts to elected officials, but ECOT declared bankruptcy in 2018 to avoid repaying the state for phantom students. The stories of corruption, embezzlement, and scamming go on and on.

Therefore I was delighted to find this excellent summary by journalist Florina Rodov, who gathers many of the scandals and research reports in one place to demonstrate the woeful failure of virtual charters. As she points out, the virtual charter industry has beefed up its already massive marketing budget to take advantage of the pandemic and try to gather market share.

One detail that I found fascinating was the link to executive compensation for K12 Inc., the for-profit virtual chain that has the largest enrollment in the nation. The top five executives receive a total of $28 million in compensation. Beats teaching!

She begins:

“Instead of going to school every morning, what if school could come to you?” an ad asks enticingly, promising students “online personalized learning” tailored to their specific needs. It’s one of hundreds of active Facebook ads run by K12 Inc., the largest for-profit virtual charter school provider in the United States. As public schools rose to the challenge of educating students online during the pandemic, corporations like K12 Inc., whose stock price has been climbing since mid-March, were licking their chops at the prospect of moving kids online permanently. Though virtual charter schools perform dismally academically and are plagued by scandal, the goal is for them to replace traditional brick-and-mortar public schools in an effort to privatize education. While this would harm students, it would most egregiously damage Black and Latino children, who’ve already been disproportionately impacted by the coronavirus, due to structural inequities such as lack of access to computers and internet service, as well as inconsistent health care and crowded housing.

The article has many important links and I urge you to read it in full. The virtual charter industry has the full-throated support of Betsy DeVos, who lied about their results at her confirmation hearings in 2017, claiming they had 100% graduation rates, when their graduation rates are abysmal.

Nancy Bailey writes that the best way to fire Betsy DeVos is to vote for Biden and Harris.

She writes:

If you’re Democrat or Republican, and you care about public education, vote for V.P. Joe Biden to remove Education Secretary Betsy DeVos from the U.S. Department of Education! Four more years of Betsy DeVos means the end of public education.

With a President Biden, public schools have a chance of surviving. With a President Trump, they don’t. It’s as simple as that.

You may be thinking, Democratic leadership has failed public education in the past. Many were disappointed in the Obama administration’s Race to the Top.

Once there’s a President Biden, the country can remind him of this. But the odds of losing our schools with a President Biden is less of a worry now than leaving DeVos in her perch at the U.S. Department of Education.

There are dozens of reasons to check the Biden/Harris ticket. Public schools affect every other issue on the ballot, every issue we face as a nation. Democratic public schools are the backbone of the nation.

She goes on to explain why we all should be worried about the damage Trump and DeVos can do if given four more years to transfer public funds to non-public schools.

Emily Harris teaches A.P. U.S. History at Will Rogers High School in Tulsa. She writes here about her faith in the public schools. She is concerned that some students have enrolled in the EPIC virtual charter school, which has a horrible record and operates for profit.

I am a teacher at Will Rogers High School. My husband, John, is a teacher at Nathan Hale High School. We are proud our 1-year-old son, Andrew, will become a fourth-generation Tulsa Public Schools student. As generations of our family have done before us, we will choose Tulsa Public Schools. My grandmother is a Central Brave. My father-in-law is a Will Rogers Roper. My mother is a Hale Ranger. My father, husband, sisters and I are Edison Eagles.

Our public schools are part of the fabric of what makes us Tulsans. Many of you reading this can say the same about your family. These schools have history. They have tradition. They have proud alumni. We cannot give up on them.

Tulsa Public Schools began the 2019-2020 school year planning for a $20 million budget shortfall caused by years of improper state funding and declining enrollment. Despite more than a decade of underfunding, many Tulsa Public Schools teachers have persisted in challenging working conditions. These teachers know what it is like to face obstacles and overcome them for hope that all students will reach their full potential. Tulsa Public Schools teachers will carry the same tenacity and spirit of optimism with them as they take on the challenges presented to them this school year.

The Tulsa Public Schools of my parents’ generation did not have to compete for students with suburban districts and online charter schools. Recent reports show that Epic, an all virtual charter school founded in 2011, is seeing a recent surge in enrollment. It has now surpassed Oklahoma City and Tulsa to become our state’s largest school district. Epic Charter Schools may sound like an appealing option to parents in the short term, but data from an Oklahoma Watch investigation in 2019 showed that only 14.7% of Epic graduates enrolled in an Oklahoma public college or university compared to 43.6% of Tulsa Public Schools graduates. This is concerning as it points to the assumption that Epic’s model is more about compliance to meet graduation standards rather than preparation for a student’s life beyond K-12 education.

Epic is contributing to declining enrollment in Tulsa Public Schools. The result is critical state funding being siphoned away from traditional public schools. Unlike Tulsa Public Schools, Epic is a statewide school district, and does not serve as a pillar of our community. When our community supports Tulsa Public Schools, they are undoubtedly making a worthwhile investment in the future of Tulsa….

Here’s what I do know for certain: I will spend each day working in my empty classroom on the fourth floor of Will Rogers High School. I will do my best with technology to teach American history and serve Tulsa students from a distance. I will work with my talented colleagues to collaborate and come up with creative solutions to challenging and unprecedented issues. We will carry with us a mindset to serve students first.

I choose Tulsa Public Schools, and I will continue to serve Tulsa students for many years ahead. The possibility of a truly equitable Tulsa community for all depends on your support of our public school system. I assure you, my students’ hopes and dreams are worth it. Teachers cannot wait for the day when we get to see our students in person. Until then, I ask that you please have faith in teachers. Have faith in Tulsa Public Schools.

A judge in Oklahoma Fined the company that manages EPIC virtual charter school $500,000 for trying to suppress the fre speech of a critic, plus his legal fees.

Unfortunately, despite poor results and ongoing legal controversies, enrollment at EPIC and other virtual charter schools is soaring due to the pandemic.

An Oklahoma County district judge leveled a $500,000 fine against the nonprofit overseeing Epic Charter Schools on Wednesday.

Judge Cindy Troung sanctioned Community Strategies Inc. for filing a libel and slander lawsuit against state Sen. Ron Sharp last year. Truong dismissed the lawsuit in February. On Wednesday, she ruled the case was an attempt to censor Sharp’s free speech.

The judge decided the nonprofit was subject to a fine under Oklahoma Citizens Participation Act, a law that sanctions plaintiffs who file meritless lawsuits intended to silence critics.

Troung also awarded Sharp $35,912 to cover all of his legal fees. A news release from Sharp said the senator is “very pleased” with the judge’s decision.

Epic will appeal the ruling, said Shelly Hickman, assistant superintendent of communications…

Sharp, R-Shawnee, has been one of Epic’s most outspoken critics. In multiple news releases and comments to media, he alleged Epic unlawfully counted student enrollment and misused taxpayer dollars.

Truong threw out the lawsuit and said Sharp’s public comments about Epic did not rise to the level of actual malice, which is the standard to prove libel and slander against a public entity.

“Clearly, Epic was trying to do this to destroy my credibility and to divert attention from what I was asking,” Sharp said after the lawsuit was dismissed in February. “The fact that they filed this just before the deadline for legislation, they clearly wanted legislators to be intimidated by this lawsuit.”

The Oklahoma State Bureau of Investigation alleged Epic illegally inflated its enrollment counts and embezzled millions in state funds, according to court documents filed last year. Epic has denied any wrongdoing. No charges have been filed.

As we have seen in recent weeks, Trump and Betsy DeVos want public schools to reopen for full-time, in-person instruction. Yesterday, in an interview with Chris Wallace of FOX News, Trump reiterated that he will stop federal funding of any schools that don’t comply. He said that children don’t get the virus and they don’t die from the virus. He said nothing about the vulnerability of educators. Wallace pointed out that most federal funding Is earmarked for poor children and students with disabilities but Trump was adamant that schools must reopen fully or face his wrath. He has offered no funding for making schools safe for Reopening, and he has abdicated any responsibility for federal leadership. He said in the same interview, when asked whether people should wear masks as public health experts advise, that mask-wearing was a decision for governors and individuals.

It seems like only yesterday that Trump and DeVos were cheerleaders for online learning, as Politico points out.

President Donald Trump’s newfound disdain for online education is a sharp departure from what his administration and Education Secretary Betsy DeVos have long championed in terms of policy on virtual learning.

As he presses schools and colleges to physically reopen their doors this fall, Trump has dismissed online learning as an acceptable strategy that local education leaders can employ as they face surging coronavirus cases in many parts of the country.

“Now that we have witnessed it on a large scale basis, and firsthand, Virtual Learning has proven to be TERRIBLE compared to In School, or On Campus, Learning,” Trump said in a tweet last week. “Not even close! Schools must be open in the Fall.”

In events and media appearances over the past several weeks, the White House and administration officials have repeatedly insisted that the nation’s schools and colleges must physically reopen classes — and that online instruction, fully or partially, isn’t an appropriate alternative. They’ve threatened to use federal funding as a lever to prod schools into physically reopening.

The Trump administration has been clear that it’s concerned that schools remaining closed would be a drag on the economic recovery that the president is banking on ahead of the November election. “If we don’t reopen the schools that would be a setback to a true economic recovery,” Larry Kudlow, Trump’s top economic adviser said this week.

Trump blasted Los Angeles school officials earlier this week for a “terrible decision” to keep the nation’s second-largest school district online-only when classes start in several weeks. Many other large school districts across the country are also defying Trump’s demands to physically reopen.

“It’s not a matter of if schools should reopen, it’s simply a matter of how,” DeVos has repeated several times in recent weeks as she’s become a main spokesperson for the Trump administration’s push to reopen schools. Schools, she has said, “must fully open and they must be fully operational.”

But the Trump administration’s focus on in-person instruction in traditional school buildings is a stark change for DeVos, who has long been an ardent proponent of virtual schools and individualized digital learning options for students.

As secretary of Education, she has also taken action to promote online instruction in both K-12 schools and higher education, steering money and grants toward digital learning options and scaling back federal regulations in order to promote distance education.

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DeVos last year traveled the country on a “Rethink Education” tour in which she repeatedly called for education leaders to question longtime assumptions about what K-12 and higher education looks like — which she noted hasn’t changed much in several centuries.

“It’s past time to ask some of the questions that often get labeled as ‘non-negotiable’ or just don’t get asked at all,” DeVos said during a 2018 speech. Among them: “Why do students have to go to a school building in the first place?”

DeVos also touted “high-quality virtual charter schools” as “valuable” option during her confirmation process. She and her husband previously were investors in K12 Inc., one of the nation’s largest virtual school companies.

This speedy reversal has left boosters of online learning confused and dismayed.

To add to the confusion, DeVos continues to promote online higher education.

The virtual charter industry is anticipating growth in enrollments and profits, thanks to the pandemic.

The largest of the virtual charters is the K12 Inc. virtual charter chain, listed on the New York Stock Exchange, whose revenues exceeded $1 billion this year.

Executives haul in big salaries (one of K12’s founders, Ron Packard, was paid $5 million a year but has since moved on to lead other charter chains). Michael Milken was an early investor in K12 and Bill Bennett was a prominent leader until he made racist remarks that caused him to be removed.

The most important thing to know about virtual charter schools is that they have dismal track records. They enroll as many students as possible through heavy advertising and marketing, but their graduation rates are low, their test scores are low, and their attrition rates are high.

Numerous studies of virtual charter schools agree that their results are very poor. A CREDO study in 2015 concluded that students in virtual charters lose ground in reading and lose the equivalent of a year of instruction in math.

While findings vary for each student, the results in CREDO’s report show that the majority of online charter students had far weaker academic growth in both math and reading compared to their traditional public school peers. To conceptualize this shortfall, it would equate to a student losing 72 days of learning in reading and 180 days of learning in math, based on a 180-day school year. This pattern of weaker growth remained consistent across racial-ethnic subpopulations and students in poverty.

The studies of virtual schools by Gary Miron and his colleagues report graduation rates of about 50%, as compared to a graduation rate of 83% in traditional public schools, as well as low performance compared to regular public schools.

So, if you want virtual learning at home and you don’t care if your child actually learns anything, sign up.