Nel's New Day

September 12, 2015

Too Many Charter Schools for Profit Only

Filed under: Education — trp2011 @ 10:05 PM
Tags: , , , ,

In his push toward replacing all public schools with privately-managed, public-funded charter schools, Jeb Bush has become the sugar daddy of big business that makes big money off depriving young people of an education. The GOP presidential candidate opened the first charter school in the state when he was governor and increased it 56 percent annually during his first administration. By the time that he left office in 2007, the number had grown from 30 to 300 and since doubled to over 600. There would be more, but poor planning and management has caused the closure of another 308 schools so far this year. His first school closed in 2008.

Jeb Bush got the charter school ball rolling by maintaining that they would save students from failed public schools. By 2009, he sang another song—that charter schools are “a great opportunity… a half billion dollar opportunity.” Investors immediately showed interest in the lucrative possibilities. Bush has kept lobbying for these schools: almost all the classrooms with happy children in his campaign videos “are at schools operated by Academica, [Florida’s] largest for-profit charter school management company,” according to BuzzFeed reporter Molly Hensley-Clancy.

Academica has almost 100 schools in Florida and over $150 million in annual revenue along with being the subject of “an ongoing federal probe into its real estate dealings,” as reported by the Miami Herald in 2014. Charter schools must be overseen by a non-profit board of directors, but corporations make their money from everything else—payroll operations, food services contracting, textbook sales—as well as hiring personnel and controlling curriculum.

Another way that companies like Academica make profits is state grants, loans, and tax credits for building the school before charging the school district massive rents and leases to use the buildings. Charter Schools USA charged one school $2 million rent, 23 percent of its budget. Charter companies also get the profits if they sell the buildings to another entity. Within the last two years, only charter schools received capital outlay for new construction, and charter school companies are now going after local property taxes.

Although Florida districts traditionally decide when and where a new school is needed, charter schools can open up at the company’s volition without permission from a school district. Laurie Rich Levinson, a school board representative, said, “We must approve them even when we don’t know where exactly they’ll be located,” she says. Charter schools are also not subject to traffic restrictions, building codes, and other regulations mandated for other businesses and institutions.

Companies closing charter schools also punish communities through charges. When local officials in Florida tried to get $400,000 back from two closed schools, the companies had either moved the funds or had them frozen by liens. The Sun Sentinel reported, “County schools may have to repay $1.8 million owed by two closed charter schools.” The schools didn’t keep accurate counts of enrolled students; therefore money already collected will be withheld from future payments to the district.

Florida is not alone in its problems with charter schools. Claims that charter schools provide superior education have been debunked in other states. A report on Pennsylvania’s charters a year ago indicated that only one in six of these schools is “high-performing” and none of the online ones is “high-performing.” Charter schools weed out students based on characteristics such as those with special needs and low test scores. In many cases, English learners and children in poverty need not apply. The result is higher segregation in schools.

In many charter schools, cost-cutting curriculum limits students to little more than reading and mathematics test preparation, inexperienced teachers with high turnover, and products that line the pockets of board members. At the same time, the schools are used as cash cows.

Publicly-funded charter schools act like private entities, denying such basic information as salaries. In 2012, Pennsylvania Gov. Corbett and the GOP-controlled legislature tried to introduce a bill that exempted all charters from the state’s sunshine laws. Companies have argued in California courts that they are private entities and cannot be treated as public institutions.

The drain on real public schools is tremendous. For example, charter tuition payments cost Pittsburgh $53 million in just one year. In order to make more money for their companies, charter corporations are working to close traditional public schools. Pennsylvania forced districts to approve new charters while slashing the budget and closing more schools.

Big donors for John Kasich during his 2014 run for Ohio governor were charter school operators and companies. He vowed to clean up charter schools after cutting money from public schools and to show how well the charters were doing with a public site to compare their performance with public schools. The upgrading of charter facilities and increase in their budgets cost Ohioans well over one billion dollars so far this year while public schools lost one-half billion dollars. Last month, David Hansen, state director of school choice, resigned after he admitted charter schools looked much better because he omitted poor grades for online and dropout-recovery schools. Kasich probably won’t be talking much about charter schools on the campaign trail.

One state has declared that giving public school funds to charter schools is unconstitutional. Washington state Supreme Court spent almost a year of deliberation before he overturned a narrowly-passed ballot measure in 2012 allowing publicly-funded, privately-operated schools. Chief Justice Barbara Madsen wrote that charter schools aren’t “common schools” because they’re governed by appointed rather than elected boards. Therefore, “money that is dedicated to common schools is unconstitutionally diverted to charter schools,” she wrote. A coalition filing the suit asked for this ruling because these schools are “improperly diverting public-school funds to private organizations that are not subject to local voter control.” The nine schools planning to open this fall will not close but instead plan to rely on private funding.

In 1992, democratic socialist Sweden began distributing vouchers to parents to send their children to any school, private or public. Companies were permitted to operate for-profit schools, and private equity firms ran hundreds of schools. The result:

  • Test scores fell consistently starting in 1995.
  • Social stratification and ethnic and immigrant segregation increased.
  • Better teachers went to schools with students of higher socio-economic status.
  • One of the biggest private education firms declared bankruptcy in 2013. About 1,000 people lost their jobs, and the company’s unpaid debt is about $150 million.
  • A convicted pedophile legally set up several schools.
  • The system found no impact on medium or long-term educational outcomes such as high school GPA, university attainment or years of schooling.

Data from the National Center for Education Statistics shows that 2,486 U.S. charter schools closed between 2001 and 2013. [Check here for an interactive map of these closures.] Charter school students are two and a half times at risk of having their school closed, causing a disruption in their education and decreasing high school graduation rates by almost 10 percent.

Unknown millions of dollars of the $3.3 billion spent by the federal government went to schools that never opened to students. The Center for Popular Democracy documented more than $200 million in fraud, waste, and mismanagement in the charter school industry in 15 states alone. Wisconsin was given $69.6 million between 2010 and 2015, but one-fifth of the charters opened in the first two years of grants have closed. Indiana was given $31.3 million because the schools are exempt from democratic oversight by elected school boards.

Failed charter schools may cost about $1.4 billion in 2015. This waste hasn’t stopped the Department of Education. Secretary Arne Duncan asked for a 48-percent expansion of the program and refuses to release any information about grants or their applicants.

Fraud, lack of transparency, lower achievement—these are a few of the problems in many states that allow these schools to be controlled by profiteers. People in every state should look into laws for charter schools to make sure that they don’t have the same problem.

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2 Comments »

  1. Great blog. And, now we have a nationally televised fund raiser to try and raise $$ for education in the U.S. Never thought I’d see the day we’d beg for money to fund education in this wealthy country.

    Like

    Comment by Robin — September 14, 2015 @ 1:00 PM | Reply

  2. This is a great report. Thanks!!

    Like

    Comment by Gronda Morin — September 13, 2015 @ 1:30 PM | Reply


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