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.


 

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Charter School Lobby Panics as NAACP Rejects For-Profit Schools

 Man-Freaking-Out

 

White America has a history of freaking out at perfectly reasonable suggestions by the black community.

 

 

Hey, maybe black people shouldn’t be slaves.

 

 

SOUTHERN STATES SECEDE! THE CIVIL WAR BEGINS!

 

 

Hey, maybe black lives should matter as much as white ones.

 

 

BLUE LIVES MATTER! MAGA! TRUMP!

 

 

Hey, maybe we shouldn’t be making money off of children’s educations?

 

 

PANIC!

 

 

That’s what seems to be happening at think tanks and school privatization lobbying firms across the country after a new report by the National Association for the Advancement of Colored People (NAACP) this week.

 

 

Some news sources are characterizing the report as “radical” or “controversial.”

 

 

However, the report, titled “Quality Education for All: One School at a Time,” basically says nothing more revolutionary than that all public schools should be transparent and accountable.

 

That includes charter schools.

 

“Public schools must be public,” the report states. “They must serve all children equitably and well. To the extent that they are part of our public education system, charter schools must be designed to serve these ends.”

 

And why shouldn’t they?

 

More than 3 million students attend charter schools across the country. Approximately 837,000 of them are black. Don’t they deserve the same kinds of democratically controlled schools and fiscal responsibility as their counterparts in traditional public schools?

 

 

Somehow your local public school is able to teach kids while still keeping a record of how it’s spending its money – your money. And if you don’t like what’s being done, you can go to a school board meeting and speak up or even run for a leadership position.

 

 

How does getting rid of that help kids learn? How does operating in secret in the shadows benefit children?

 

 

The report also recommends that local communities should have more control over whether to open charter schools in their districts and calls for an end to for-profit charter schools, altogether.

 

 

Not exactly the musings of anarchist provocateurs.

 

 

Charter school cheerleaders like Education Secretary Betsy DeVos call their movement School Choice. Shouldn’t communities get to choose whether they want them there in the first place? If the program is based on the free market, let them make their case to the community before setting up shop. They shouldn’t get to make a backroom deal with your congressman and then start peddling their wares wherever they want.

 

 

Moreover, if charter schools are, indeed, public schools, why should they be allowed to operate at a profit? They are supported by tax dollars. That money should go to educating children, not lining the pockets of venture capitalists and hedge fund managers.

 

 

The authors were very specific on this point:

 

“No federal, state, or local taxpayer dollars should be used to fund for-profit charter schools, nor should public funding be sent from nonprofit charters to for-profit charter management companies.”

 

But that’s not all.

 

 

The author’s also call out charters infamous enrollment and hiring practices. Specifically, these kinds of privatized schools are known to cherry pick the best and brightest students during admissions, and to kick out those who are difficult to teach or with learning disabilities before standardized testing season. The report called for charters to admit all students who apply and to work harder to keep difficult students – both hallmarks of traditional public schools.

 

 

In addition, the report suggests charters no longer try to save money by hiring uncertified teachers. If charters are going to accept public money, they should provide the same kind of qualified educators as their traditional public school counterparts.

 

 

However, even if such reforms are made, the report is doubtful that privatized education could ever be as effective and equitable as traditional public schools. In perhaps the most damning statement in the report, the authors wrote:

 

“While high-quality, accountable, and accessible charters can contribute to educational opportunity, by themselves, even the best charters are not a substitute for more stable, adequate and equitable investments in public education.”

 

The report was written by the 12-member NAACP Task Force on Quality Education after a set of intensive hearings or “listening sessions” across the country in cities such as New Haven, Memphis, Orlando, Los Angeles, Detroit, New Orleans and New York. The final product is the result of the input they received during these meetings.

 

 

This is only the latest in a growing movement of skepticism toward privatized education of all sorts – especially in relation to its impact on students of color.

 

 

Less than a year ago, the NAACP, the oldest civil rights organization in the country, called for a moratorium on any new charter schools. This week’s report takes that caution to the next level.

 

 

Despite a truly controversial record, over the past decade, the number of students in charter schools has nearly tripled. In terms of pure numbers, black students only make up more than a quarter of charter school enrollment. However, that’s a disproportionately high number since they make up only 15 percent of total public school enrollment. To put it another way, one in eight black students in the United States today attends a charter school.

 

 

The NAACP isn’t the only civil rights organization critical of charter schools. Groups such as the Journey for Justice Alliance, a coalition of grassroots community, youth, and parent-led organizations, and the Movement for Black Lives, a conglomeration of the nation’s youngest national civil rights organizations, have also expressed concern over the uses and abuses of students of color in charter schools.

 

 

 

However, this week’s report wasn’t focused solely on privatization. It also addressed the central issue at traditional public schools – funding disparities.

 

 

The report identifies severe inequalities between rich vs. poor communities as the cause of so-called failing schools. The report argues that “to solve the quality education problems that are at the root of many of the issues, school finance reform is essential to ensure that resources are allocated according to student needs.”

 

 

Closing the achievement gap requires specific investment in low-performing schools, not punitive measures. There should be more federal, state, and local policies to attract and retain fully qualified educators, improve instructional quality, and provide wraparound services for young people.

 

 

The report suggests states model their funding formulas on those of Massachusetts and California and that the federal government should fully enforce the funding-equity provisions in the Every Student Succeeds Act (ESSA).

 

 

It would be difficult to find more rational and reasonable solutions to the education problems in today’s schools.

 

 

But pay attention to the response it’s getting.

 

 

Corporate reformers are running scared with their hair on fire as someone finally has the guts to point out that the emperor is walking around stark naked!