Charter Schools Will Always Waste Money Because They Duplicate Services

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You can’t save money buying more of what you already have.

 

Constructing two fire departments serving the same community will never be as cheap as having one.

 

Empowering two police departments to patrol the same neighborhoods will never be as economical as one.

 

Building two roads parallel to each other that go to exactly the same places will never be as cost effective as one.

 

This isn’t exactly rocket science. In fact, it’s an axiom of efficiency and sound financial planning. It’s more practical and productive to create one robust service instead of two redundant ones.

 

However, when it comes to education, a lot of so-called fiscal conservatives will try to convince us that we should erect two separate school systems – a public one and a privatized one.

 

The duplicate may be a voucher system where we use public tax dollars to fund private and parochial schools. It may be charter schools where public money is used to finance systems run by private organizations. Or it may be some combination of the two.

 

But no matter what they’re suggesting, it’s a duplication of services.

 

And it’s a huge waste of money.

 

Consider the case of my home state of Pennsylvania.

 

Charter schools cost Commonwealth taxpayers more than $1.8 billion a year and take more than 25 percent of the state’s basic education funding – yet they only enroll about 6 percent of students.

 

Just imagine – 94% of Pennsylvania students lose out on opportunities because we’re allowing so much money to be siphoned off for a small fraction of students.

 

The Keystone state only has 179 charter schools enrolling 135,100 students – the sixth highest charter enrollment in the country. Of those, about a fourth are online cyber charters.

 

Is it fair to Ma and Pa Taxpayer that they are forced to bear the extra burden of reproducing these services for a handful of students?

 

And make no mistake. This is one of the leading causes of property tax increases in the state.

 

The ideology of some results in a direct hit to everyone’s pocketbooks.

 

According to a recent report by the Pennsylvania Association of School Business Officials (PASBO), “Charter school tuition is one of the largest areas of mandated cost growth for school districts.”

 

The report found that state charter schools are growing at a rate of 10 percent a year. The PASBO calculates at least 37 cents of every new dollar of property taxes in the fiscal year 2017-2018 went right to charters. And that percentage is only expected to grow.

 

Part of this is due to a blind, deaf and dumb state legislature that no longer does anything to help alleviate these costs to local school districts. Neighborhood schools can only try to compensate by cutting services for students where it can and raising property taxes where it can’t make ends meet.

 

More than one third of school superintendents surveyed by PASBO report a worsening financial picture in their districts—and they put the blame on charter schools.

 

“With the state providing no state support for mandatory charter school tuition costs,” the study says, “the increases in this single budget item have the potential to decimate school district budgets.”

 

Part of this is the extremely unfair way the state determines how much money to give charter schools.

 

The legislature has constructed a funding formula that gives every advantage to charter schools while short changing authentic public schools at every turn.

 

For instance, as Jeff Bryant puts it in his article “The Charter School ‘Dumpster Fire’ in Pennsylvania Provides an Important Lesson for 2020 Democratic Candidates”:

 

 

“Charter school tuition charged to Pennsylvania public schools is calculated as if charters had to provide the same services public schools have to provide, such as transportation—they don’t. Also, the tuition bill public schools pay to charters is calculated as if every student cost the same to educate—they don’t.

 

 

Instead, the state requires authentic public schools to pay charters way more than authentic public schools get to educate the children in their care – and state law even allows charter operators to pocket the savings as profit.

 

But this just pours lighter fluid on Bryant’s already raging “dumpster fire.”

 

Even if Pennsylvania was entirely equitable in how it allocated funding between these two types of school, it would still be wasting our tax dollars because it would still be engaged in duplication of services.

 

There is simply no good reason to do this. At least, not if providing the best education to students is our goal.

 

There are few places in the entire country – if any – where charter schools are able to accommodate all students. They cater to nitch markets where operators expect they can turn a profit. There are essentially no communities with a charter school and no authentic public school but many where you find just the opposite.

 

Moreover, the quality of education provided at charter schools does not live up to the hype of its advertising.

 

Except in extremely rare circumstances, charter schools have never been shown to provide better outcomes than authentic public schools. Almost every study conducted – even those funded by the school privatization industry – show that these two types of schools produce similar results or in many cases that authentic public schools are much better.

 

And this despite the fact that such studies are already stacked in charter schools favor because unlike authentic public schools, charter schools often have selective enrollment. A school that gets to cherrypick the best and brightest students has an incredible advantage over those that can’t – yet even with such an uneven starting point charter schools rarely show large academic gains.

 

For instance, a recent study of charter school students in Pennsylvania conducted by the school privatization friendly Center for Research on EDucation Outcomes (CREDO), found that charter students do about the same on reading exams but score worse in math than students in authentic public schools. The study also found major disparities between charter schools – with cyber charters performing especially poorly.

 

However, this study’s methodology has been called into question suggesting that even its meager praise of charter schools may be exaggerated. Yet the overall results are in-line  with previous research that also found charter schools in the state generally  produce students who aren’t as prepared as authentic public school students.

 

Pennsylvania passed its charter school law in 1997.

 

It’s way passed time for lawmakers in this state and beyond to acknowledge that was a mistake.

 

We cannot continue to force voters to pay for a supply-side ideology that not only has been disproven through decades of data but that many do not share.

 

That is why we have charter and voucher schools – a prejudice against authentic public education and desire to allow businesses to cash in on education dollars.

 

The duplication of services has nothing to do with helping students learn.

 

It’s about creating a slush fund for unscrupulous corporations and hangers on to get easy cash.

 

No true fiscal conservative can support charter schools.

 

Just as no one who values children can continue to justify this economic double vision.

 


 

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Ten of 15 Cyber Charter Schools in PA Are Operating Without a Charter – Close Them All

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Cyber charter schools are an experiment that failed.

 

 

It’s time to pull the plug and recoup our losses.

 

 

First, let’s get straight exactly what we’re talking about here.

 

 

Like all charter schools, these are contracted institutions. In fact, that’s what charter means – they’re independent businesses that sign a deal with the state to teach kids.

 

 

So they’re publicly financed but privately run. And in the case of cyber charters, they agree to educate children online without the benefit of a physical building.

 

 

Students access lessons via computer or other device, submit work electronically, get virtual feedback and assessment.

 

 

At best, these institutions are the grade school equivalent of the University of Phoenix – good only for independent, self-motivated learners. At worst, they’re the kiddie version of Trump University – a total scam.

 

 

In Pennsylvania, 10 of the state’s 15 cyber charter schools are operating with expired charters, according to a report by the Philadelphia Inquirer.

 

That’s incredibly significant – especially for an industry that enrolls about 35,000 students across the state.

 

These are charter schools operating without a charter. They only get the right to operate because a local school district or the state has signed a contract allowing them to do so.

 

If you hire a plumber to fix your toilet, you give him the right to enter your house and do what needs to be done. That doesn’t mean the plumber can walk in anytime he feels like it. There is a limited term of service. Once that term is up, the plumber needs to get out.

 

In the case of these cyber charters, the authorizer is the Pennsylvania Department of Education (PDE).

 

Charters are initially issued for three to five years. They are an essential contract between the schools and the supervisory body. The school details how it will operate, what curriculum and education strategies will be used, etc.

 

 

The state has the option to revoke the charter if the school violates its agreement or fails to meet requirements for student performance or fiscal management.

 

 

After the initial period, charters must be renewed every five years in the state.

 

 

Yet for the majority of the Keystone state’s cyber charter schools, this has not happened. The charter agreements have been left to lapse without any decision being made by state officials to renew or cancel them.

 

 

Some of the reluctance to decide may stem from the fact that the state Charter Appeal Board – the body which decides on appeals of charter applications – are all serving out expired terms, themselves.  They were all appointed by the previous governor, Republican Tom Corbett, a notable privatization ideologue.

 

 

The current Governor Tom Wolf, a Democrat now elected to his second term of office, still hasn’t gotten around to appointing new ones.

 

 

Another issue gumming up the works could be staffing issues at PDE that make it impossible to handle the reviews in a timely manner. It could be because the cyber charter schools have not provided all the data required of them by the state for the review to be completed on time. Or it could be because state officials are struggling with a fair and adequate metric with which to assess these schools.

 

 

CYBER CHARTER’S DISMAL ACADEMIC RECORD

 

 

To be frank, the latter option has to weigh heavily on state auditors. After all, it’s no secret that these schools are an educational disaster. On-line schools in Ohio, Georgia, Indiana, Nevada and New Mexico are all being closed by their respective states.

 

Study after study consistently shows that cyber charters are much less effective than traditional public schools – heck! They’re even less effective than brick and mortar charter schools!

 

A recent nationwide study by Stanford University found that cyber charters provide 180 days less of math instruction and 72 days less of reading instruction than traditional public schools.

 

Keep in mind that there are only 180 days in an average school year. So cyber charters provide less math instruction than not going to school at all.

 

 

The same study found that 88 percent of cyber charter schools have weaker academic growth than similar brick and mortar schools.

 

Student-to-teacher ratios average about 30:1 in online charters, compared to 20:1 for brick and mortar charters and 17:1 for traditional public schools.

 

 

Researchers concluded that these schools have an “overwhelming negative impact” on students.

 

And these results were duplicated almost exactly by subsequent studies from Penn State University in 2016 (enrolling a student in a Pennsylvania cyber charter school is equal to “roughly 90 fewer days of learning in reading and nearly 180 fewer days of learning in math”) and the National Education Policy Center in 2017 (cyber charters “performed significantly worse than feeder schools in both reading and math”).

 

Even the state’s own data shows lower graduation rates and standardized test scores at cyber charters than at traditional public schools.

 

According to a 2015-16 state PDE report, about 86 percent of public school students across the Commonwealth finished high school in four years. During the same time, only about 48 percent of cyber charter school students graduated in four-years.

CYBER CHARTER’S COST TOO MUCH

 

But providing such a poor service to Pennsylvania students is only one reason these schools are problematic. They’re also ruinously expensive.

 

 

They cost taxpayers more than $463 million in 2016-17 alone.

 

The state charter law grants these schools as much money per pupil as brick and mortar schools, yet their costs are much less having forgone a physical building and all that goes with it.

 

So cyber charters get whatever the local per-pupil expenditure is. It doesn’t matter if a district spends $8,000 on each student or $20,000. Whatever the amount, that goes to the cyber charter.

 

However, the cost of educating kids is drastically reduced online. Their programs are bare bones compared with what you get at a traditional public school. Most online charters don’t have tutors or teacher aides. They don’t offer band, chorus or extra-curricular activities. You don’t have to pay for any building costs, grounds, upkeep, large staff, etc. But the funding formula ignores this completely. Cyber charters get to keep the difference – whatever it is. In fact, they have an incentive to keep as much as possible because they can do almost whatever they want with it. That includes putting it into operators’ pockets as profit!

 

And when it comes to special education funding, it gets worse. In Pennsylvania, our funding formula is so out of whack that charters schools of all stripes including cyber charters often end up with more funding for students with special needs than traditional public schools get. However, because of this loophole in the Commonwealth, Pennsylvania online charters have been increasing the number of special education students they enroll and even working to label as many of their students as possible as needing special services on the flimsiest of pretexts.

 

According to a report by the Pennsylvania Association of School Administrators (PASA), tuition for special education students is often twice as much at cyber charter schools than at traditional public schools.

 

CYBER CHARTER FRAUD

 

Unsurprisingly, these conditions have lead to rampant fraud and malfeasance.

 

Just this past year (2018) the head of the largest cyber charter chain in the state was sentenced to jail for siphoning $8 million from his school into his own pockets.

 

PA Cyber Charter founder Nicholas Trombetta was found guilty of tax fraud in relation to the theft of public funds. He used that money to buy an airplane, a $900,000 condo, houses for his girlfriend and mother, and nearly $1 million in groceries and personal expenses, according to the grand jury. Trombetta allegedly set up numerous for-profit and nonprofit businesses to provide goods and services to the cyber charter. Federal investigators filed 11 fraud and tax conspiracy charges against him and indicted others in the case.

 

Another cyber charter founder, June Brown, was also indicted for theft of $6.5 million. Brown ran the Agora Cyber Charter School, which was part of the K12 Inc. empire of virtual charters. She and her executives were indicted on 62 counts of wire fraud, obstruction of justice and witness tampering. She was well known for student test scores and had a reputation for claiming large salaries and filing suits against parents who questioned her, the Philadelphia Inquirer reports.

 

WHAT TO DO ABOUT IT

 

It’s no wonder the state has been tardy renewing these schools’ charters!

 

Frankly, there is no good reason to continue lavishing taxpayer dollars on a system of education that provides  subpar services at an exorbitant expense and is subject to runaway fraud.

 

But lawmakers have always been reluctant to do the right thing.

 

After all, there are a slew of wealthy investors who want to make sure the money train of taxpayer dollars keeps flowing to their shady businesses. And lawmakers who enable them are assured hefty campaign contributions.

 

The only chance we have of saving our children from this monstrous abuse of power and saving our wallets from this shameful waste of funding is if voters make their intentions known.

 

The people of Pennsylvania need to stand up and demand an end to the cyber charter school experiment.

 

We need lawmakers with the guts to stand up to big money and rewrite the state’s charter school law.

 

And that’s part of the problem. The law is a joke.

 

It’s more than 20 years old and was only amended once in 2002 to allow cyber charters.

 

Subsequent attempts at requiring more accountability have resulted in horrible compromise bills that would have made the situation much worse and – ultimately – no vote.

 

With Ohio and California, Pennsylvania was in the “big three” cyber-charter states in 2016, accounting for half of cyber charter enrollment nationally, according to the industry’s authorizers’ association. While 35 states and the District of Columbia allow full-time cyber charter schools, eight do not, including neighboring New Jersey.

 

The right course is clear.

 

We just need a people-powered movement to force our lawmakers to do it.

 

Either that or replace them with those who will.


 

Still can’t get enough Gadfly? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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There is Virtually No Difference Between Nonprofit and For-Profit Charter Schools

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Stop kidding yourself.

 

Charter schools are a bad deal.

 

It doesn’t matter if they’re for-profit or nonprofit.

 

It doesn’t matter if they’re cyber or brick-and-mortar institutions.

 

It doesn’t matter if they have a history of scandal or success.

 

Every single charter school in the United States of America is either a disaster or a disaster waiting to happen.

 

The details get complicated, but the idea is really quite simple.

 

It goes like this.

 

Imagine you left a blank check on the street.

 

Anyone could pick it up, write it out for whatever amount your bank account could support and rob you blind.

 

Chances are you’d never know who cashed it, you’d never get that money back and you might even be ruined.

 

That’s what a charter school is – a blank check.

 

It’s literally a privately operated school funded with public tax dollars.

 

Operators can take almost whatever amount they want, spend it with impunity and never have to submit to any real kind of transparency or accountability.

 

Compare that to a traditional public school – an institution invariably operated by duly elected members of the community with full transparency and accountability in an open forum where taxpayers have access to internal documents, can have their voices heard and even seek an administrative position.

 

THAT’S a responsible way to handle public money!

 

Not forking over our checkbook to virtual strangers!

 

Sure, they might not steal our every red cent. But an interloper who finds a blank check on the street might not cash it, either.

 

The particulars don’t really matter. This is a situation rife with the possibility of fraud. It is a situation where the deck is stacked against the public in every way and in favor of charter school operators.

 

But most people don’t want to take such a strong stance. They’d rather find good and bad people on both sides and pretend that’s the same thing as impartiality.

 

It isn’t.

 

Sometimes one side is just wrong.

 

Policymakers may try to feign that there are good and bad charter schools and that the problems I’m talking about only apply to the nefarious ones.

 

But that’s a delusion.

 

There is no good way to write a blank check and leave it on the street to the whims of passers-by.

 

Most apologists want to draw the distinction between for-profit and nonprofit charters.

 

But as Jeff Bryant, an editor at Education Opportunity Network, puts it, this is a “Distinction without a difference.”

 

These terms only define an organization’s tax status – not whether it is engaged in gathering large sums of money for investors.

 

The law is full of loopholes that allow almost any organization – not just charter schools – to claim nonprofit status while enriching those at the top.

 

We live in an age of philanthrocapitalism, where the wealthy disguise schemes to enrich themselves as benevolence, generosity and humanitarianism.

 

So-called “nonprofit” charter schools are just an especially egregious example. No matter what label you pin to their name, they all offer multiple means to skim public funding off the top without adding any value for students.

 

For instance, take the use of management companies.

 

A for-profit charter school can simply cut services to students and pocket the savings as profit.

 

A nonprofit charter school can do the same thing after engaging in one additional step.

 

All I have to do is start a “nonprofit” charter school and then hire a for-profit management company to run it. Then my management company can cut services and pocket the profits!

 

It’s really that simple! I turn over nearly all of my public tax dollars to the management company that then uses it to operate the school – and keeps whatever it doesn’t spend.

 

 

Heck! It doesn’t even matter who owns the company! It could even be me!

 

The law actually allows me to wear one hat saying I’m nonprofit and then put on a different hat and rake in the cash! The only difference is what hat I’m wearing at the time!

 

SO I get to claim to be a nonprofit while enjoying all the advantages of being for-profit.

 

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SOURCE: Florida Sun Sentinel

 

I may even be able to buy things with public tax dollars through my for-profit management company and then if my “nonprofit” school goes belly up, I get to keep everything I bought! Or my management company does.

 

So the public takes all the risk and I reap all the reward. And I’m still graced with the label “nonprofit.”

 

Oh, and speaking of spending, being a “nonprofit” doesn’t stop me from the worst kind of real estate shenanigans routinely practiced by the for-profit charter schools.

 

Both types of privatized institution allow for huge windfalls in real estate. If I own property X, I can sell it to my charter school (or management company) and then pay myself with tax dollars. Who determines how much I pay for my own property? ME! That’s who!

 

And I can still be a nonprofit.

 

Think that’s bad? It’s just the tip of the iceberg.

 

Thanks to some Clinton-era tax breaks, an investor in a charter school can double the original investment in just seven years!

I can even get the public to pay for the same building twice! And even then taxpayers still won’t own it!

 

But that’s the complicated stuff. There’s an even easier way to get rich off the public with my “nonprofit” charter school, and operators do it all the time: write myself a fat check!

 

After all, I’ve gotta’ pay, myself, right? And who’s in charge of determining how much I’m worth? ME!

 

I can even pay myself way more than my counterparts at traditional public schools who oversee exponentially more staff and students.

 

For instance, as New York City Schools Chancellor, Richard Carranza is paid $345,000 to oversee 135,000 employees and 1.1 million students. Meanwhile, as CEO of Success Academy charter school chain, Eva Moskowitz handles a mere 9,000 students, for which she is paid $782,175.

 

And this is by no way a unique example.

 

There are just so many ways to cash in with a charter school even at a so-called “nonprofit” – especially if I want to dip my toe into legally dubious waters!

 

I could do like the almost exclusively “nonprofit” Gulen charter schools and exist solely as a means to raise money for an out-of-favor political movement in Turkey.

 

I could use charter funds to finance other businesses. I could decide to discontinue programs that students receive in traditional public schools such as providing free or reduced lunches but keep the cash. I could fake enrollment and have classes full of “ghost students” that the local, state and federal government will pay me to educate.

 

Fraud and mismanagement are rampant at charter schools because we don’t require them to be as accountable as their traditional public school counterparts.

 

If a traditional public school tried this chicanery, we’d almost certainly catch it at the monthly meetings or frequent audits. But charter schools don’t have to submit to any of that. They’re public money spent behind closed doors with little to no requirement to explain themselves – ever.

 

And all of this – nearly every bit of criticism I’ve leveled against the industry – doesn’t even begin to take into account the educational practices at these types of schools.

 

There is plenty of evidence that charters provide a comparable or worse education than children routinely receive at traditional public schools.

 

Where it is comparable, the issue is clouded by selective enrollment, inadequately servicing students with special needs and generally encouraging the hardest to teach to get an education elsewhere. Where it is worse, it is colossally worse, robbing children not just of funding but what is likely their only chance at an education.

 

But we don’t even need to go there.

 

We only need the issue of fiscal responsibility to bring down this behemoth.

 

Charter schools are no way to run a school. They are a blatant failure to meet our fiduciary responsibilities.

 

Traditional public schools are the best way to run a school. They protect the public’s investment of money and resources while providing a quality education to students.

 

So all this talk about nonprofit and for-profit charter schools is either a mark of supreme ignorance or a ploy for weak willed politicians to weasel their way out of taking a stand on an issue whose merits are obvious to anyone who knows what really happens in our education system.

 

It’s time to stop wasting taxpayer money on this expensive fraud.

 

 

It’s time for the charter school experiment to end.

 

 

And it’s way passed time to support fully public schools.


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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