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

Screen Shot 2018-09-06 at 3.18.04 PM

 

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.

 

flowchart960
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!

WANT A SIGNED COPY?

Click here to order one directly from me to your door!

book-1

Why We Need a Department of Education

what-happens-to-your-body-when-you-fast

 

Let’s say you have a starving child.

 

 

You take out a knife, a fork and a spoon. You hand her a cup.

 

 

This isn’t what she needs.

 

 

She needs food. She needs water.

 

 

But the utensils seem a precursor to meeting those needs.

 

 

That’s what the Department of Education has always been – a tool and a promise.

 

 

But now the Trump administration wants to do away with even that polite fiction.

 

 

Two weeks ago, Secretary of Education Betsy DeVos announced the plan to merge the Education and Labor departments.

 

The reason you may not have heard much about it – beside the fact that bigger stories have overshadowed it like the forced separation of undocumented children and parents at the border, coercing kids into immigration court without parents or even legal counsel and then locking them up in cages in detention centers – is that the plan has about zero chance of coming to fruition.

 

Democrats oppose it and there don’t even seem to be enough Republicans in favor to get it through Congress. It may not even have enough support to get a vote.

 

Unless it’s a huge tax cut for the rich, no one seems able to get any actual laws through this GOP controlled legislature.

 

Moreover, the proposal is a definite step backward. The Department of Education was created in 1980 by splitting the Department of Health, Education, and Welfare into the Department of Education and the Department of Health and Human Services.

 

At that time, its purpose was clear. It was a tool to increase funding equity and transparency while protecting students.

 

 

After all, the department was an extension of the Elementary and Secondary Education Act (ESEA) of 1965, which tried to bring equity to America’s public schools.

 

 

As President Jimmy Carter said upon signing the bill into law:

 

 

“First, [the Department of Education] will increase the Nation’s attention to education. Instead of being buried in a $200 billion-a-year bureaucracy, educational issues will receive the top-level priority they deserve. For the first time, there will be a Cabinet-level leader in education, someone with the status and the resources to stir national discussion of critical education concerns.”

 

 

Unfortunately, those principles were never fully realized.

 

 

The Department did increase funding to public schools, but it didn’t end up dramatically increasing opportunities for the underprivileged.

 

 

Sure, it provided targeted grants like Pell Grants that did offer opportunities to select groups of students. But it didn’t radically alter our outdated (even then) funding system.

 

 

Our schools are segregated by race and class – worse now than they were then. Since they’re funded primarily by local property taxes, that means the poor and minorities get less funding than richer whiter kids.

 

 

And unless you’re willing to let your kids go to a school that receives less funding than others, don’t tell me it doesn’t matter. Rich white people have long complained about the money we spend on other people’s children while doing everything in their power to protect funding for their own.

 

 

In the late 1970’s, it was hoped the creation of the Department would be the first step to increasing federal funding of schools to one third of the total cost, thereby leveling the playing field somewhat.

 

 

But that never happened.

 

 

Now as then, the federal government only funds less than 10 percent of the cost.

 

 

To return to the metaphor with which this piece began, the creation of the department was like handing a starving child utensils without much actual food.

 

 

As the years have passed, we’ve used those tools for everything except nourishing students.

 

 

We’ve fed the child by guiding an empty fork into her cheek. We’ve poked and prodded her mouth with a knife.

 

 

The result hasn’t been for her benefit. Instead we’ve let special interests feed off of HERcharter schools, voucher schools, high stakes standardized testing corporations, the ed tech industry and even book and software publishers through the boondoggle of Common Core.

 

 

Many have insisted this misuse of the Department means we should do away with it entirely.

 

 

I disagree.

 

 

The child is still starving. It is still our responsibility to feed her.

 

 

You don’t do that by taking away her utensils.

 

 

Oh, you can feed her without them, but not very effectively. She can drink from the sink, but not as well as from a cup. She can eat with her hands, but not as easily as with utensils.

 

 

This latest proposed merger wouldn’t really satisfy anyone.

 

 

It wouldn’t do away with the department – it would hide it behind closed doors.

 

 

It would simply make it harder to see what was happening to it.

 

 

Moreover, it betrays an ideological bias against education for its own sake. Making the Department of Education part of the Department of Labor implies that the only reason one goes to school to learn job skills.

 

 

One can imagine a newly reorganized federal effort to cut anything from our schools that couldn’t be immediately connected with becoming a worker drone. And I don’t mean to imply this would be a new effort, because it’s already what President’s George W. Bush and Barack Obama were using the Department to achieve. But now it would be in the shadows and who knows what monstrosity could grow without the cleansing light of day?

 

 

This would help no one. It would be a continuation of the status quo (or possibly a doubling down on it) under a different name.

 

 

No one needs that.

 

 

What we need is to roll up our sleeves and meet students’ needs.

 

 

The child is hungry.

 

 

She has been sitting before us starving for decades and all we’ve done is give her the means to eat without the food.

 

 

Isn’t it time someone open the cupboard and get this kid something to eat!?

 


 

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!

WANT A SIGNED COPY?

Click here to order one directly from me to your door!

 

book-4

School Choice Week – Choosing Away Your Choice

Sleazy_Businessman

 

School Choice Week is one of the greatest scams in American history.

 

 

It is a well-funded, thoroughly organized attempt to trick parents into signing away their right to make educational choices about their children.

 

 

Seriously.

 

 

It goes like this:

 

 

Salesman: Would you like a choice?

 

 

Parent: Sure!

 

 

Salesman: Then just agree to never have another choice again.

 

 

That’s it in a nutshell.

 

 

Choose not to choose.

 

 

When you decide to send your child to a so-called choice school – a charter or voucher institution – you lose almost every other choice about what happens at your child’s school.

 

 

Sound impossible?

 

 

Let me count the decisions you lose by signing on the dotted line.

 

 

When you send your child to a school paid for with public money but run by a private organization, you lose:

 

 

AN ELECTED SCHOOL BOARD, so you have no say about what the school does.

 

 

OPEN DOCUMENTS, so you have no right to see budgets, spending agreements, bids, contracts, etc.

 

 

OPEN MEETINGS, so you have no public place to speak up to the people who run your school.

 

 

RIGHT TO SELF-GOVERNMENT, so you have no right to run for a leadership position on the school board. Instead you’re at the mercy of appointed flunkies.

 

 

THE RIGHT OF ENROLLMENT, so school operators get to choose whether your child gets to attend, unlike public schools which have to accept your child no matter what – so long as you live in the district.

 

 

QUALITY SERVICES, so school operators can cut services for your child and pocket the savings as profit or use it to advertise to get more paying butts in seats.

 

 

QUALITY TEACHERS, because most charter and voucher schools aren’t required to hire educators with 4-year degrees, and since they don’t pay as well as public schools and often refuse to let their teachers unionize, they attract less experienced and distinguished educators.

 

 

DIVERSE CLASSMATES, because charter and voucher schools increase segregation. Your children will be educated with more kids that look just like them. That’s healthy!

 

 

And that’s merely at MOST privatized schools. But that’s not all. At some privatized schools you can lose even more! You may also lose:

 

 

COMMON SENSE DISCIPLINE POLICIES, so your children will be held to a zero tolerance discipline policy where they may have to sit quietly, eyes forward, marching in line or else face aggressive public reprimands and harsh punishments.

 

 

AN UNBIASED SECULAR EDUCATION, so your children will be taught religion and politics as if they were fact all funded by public tax dollars! Hear that sound? That’s our Founders crying.

 

 

FREE TIME, so you’ll be required to volunteer at the school regardless of your ability to do so. Gotta’ work? Tough!

 

 

MONEY, so you’ll have to pay tuition, buy expensive uniforms, school supplies or other amenities.

 

 

And if your children are struggling academically, you may also lose:

 

 

ENROLLMENT, so your child is given the boot back to the public school because he or she is having difficulty learning, and thus costs too much to educate.

 

 

You lose all that if you decide to enroll your child in a charter or voucher school!

 

 

But that’s not all!

 

 

If you DON’T decide to send your child to a so-called choice school, you can still lose choice!

 

 

Why? Because of the rubes who were fooled into give up their choice. When they did that, they took some of your choices, too.

 

 

Because of them, you still lose:

 

 

-NECESSARY FUNDING, because your public school has to make up the money it lost to charter and voucher schools somewhere, and that means fewer resources and services for your child.

 

-LOWER CLASS SIZES, because your public school has to fire teachers and increase class size to make up for lost revenue.

 

 

-FAIR ASSESSMENTS, because the state and federal government require your child to take unfair high stakes tests to “prove” your public school is failing and thus justify replacing it with a charter or voucher schoolas if those have ever been proven to be better, but whatever! CA-CHING! CA-CHING!

 

 

This is what you get from School Choice Week.

 

 

It’s a uniquely American experience – selling the loss of choice — as choice.

 

 

And all the while they try to convince you that public schools are the ones that take away your alternatives.

 

 

Yet public schools are where you get all those things you lose at privatized schools.

 

 

You get elected school boards, open documents, open meetings, the right to self-government, the right of enrollment, quality services, quality teachers, diverse classmates, common sense discipline policies, an unbiased secular education, free time and money! That’s right! You actually get all that and more money in your pocket!

 

 

I’m not saying public schools are perfect. There are many ways they need to improve, but it’s difficult to do so when many of the people tasked with improving these schools are more concerned with sabotaging them to make room for privatized systems.

 

 

These are paid employees of the charter and voucher school movement who want to kill public schools – BUT THE KILLER IS ALREADY IN THE HOUSE!

 

 

Imagine if we dedicated ourselves to making our public school system better!

 

 

Imagine if we committed to giving parents and students more choices in the system and not trying to replace that system with one that gives all the benefits and choices away to corporate vultures!

 

 

So, yeah, School Choice Week is a scam.

 

 

But, hey, enjoy those yellow scarfs.

 

devosbetsey_011818gn7_lead

School Vouchers: Transubstantiate Your Cash For Fun and Profit

Screen Shot 2017-06-09 at 2.36.42 PM

 

When is a tax dollar not a tax dollar?

When it’s used to pay for a school voucher.

That’s the slight of hand behind much of our education policy today.

Lawmakers want to give away a huge bundle of your cash to religious schools, but they can’t because of that pesky old First Amendment.

The establishment clause sets up a distinct separation between church and state. It explicitly forbids public money being spent on any specific religion.

So these lawmakers do a bit of magic. They take that money, wave their hands over it, mumble a few secret words and Voilà! It’s no longer public; it’s private. And private money can be spent any way you want – even on religion.

Here’s how they do it.

You simply take public tax dollars and turn them into credits that can be used to pay for alternatives to public schools. Call it a “school voucher.”

 

But wait a minute. Isn’t that like a check? If Peter writes Paul a check, that money is no longer Peter’s. Now it’s Paul’s. Right?

Yes. But that’s not what’s happening here.

A school voucher isn’t a check. A check is an order to your bank to transfer funds to another account or to be exchanged for cash or goods or services. School vouchers do not come from your account. And they cannot be transferred into just any account or spent in any way.

They’re more like food stamps. It’s not money that can be used in any way you see fit. It’s money that can only be used to pay for a child’s education. And you can only use it at a private or parochial school.

You can’t go into a fancy restaurant and buy a filet mignon dinner with food stamps. Likewise, you can’t go to a real estate developer and buy a house using your school vouchers.

This money does not therefore change from public to private. Yes, individuals get a limited choice of how this money will be spent, but that’s true of all public money. Go to a local council meeting, a school board meeting, write your Congressperson, petition your state Senator – in all of these cases, you are exercising choice on how public tax dollars are being spent: Don’t spend tax dollars on that bridge. Don’t spend public money on that program.

Even in the case of food stamps, individuals decide how public dollars are spent for your private use – within specified limits.

If that was really private money, there would be no restrictions on how it could be spent – or certainly no more restrictions than on any other private money.

But lawmakers are pretending like this isn’t true. They’re pretending that simply changing the name of the money changes its substance. It’s a lie. It’s slight of hand. They’re trying to trick you into assuming a transformation has taken place that has not.

 

BAD DEAL

 

Moreover, it’s a metamorphosis we shouldn’t want in the first place.

Think about it.

We want our public money spent in an accountable fashion. We want there to be a record of how it was spent and what it was spent on. We want that information to be readily available, and if that money was misappropriated, we want to be able to act on that.

 

School vouchers remove much of that accountability. Private and parochial schools simply don’t provide the same transparency as traditional public schools. Often there is no elected school board, no public meetings, no open documents. Nada.

 

But if the parents who used the school voucher don’t like how the money is being spent, they can disenroll their child, right? So if they’re comfortable without this transparency, that’s all that matters, right?

 

Wrong. School vouchers are not paid for 100% by the parent. They are paid for with an aggregation of local tax dollars above and beyond what individual parents pay in school taxes.

 

In short, this is not just your money even if it’s spent on your kid. You shouldn’t be the only one who gets a say in how this money is spent. The community provided this money. The community should decide how it’s spent. At very least, the community should get a say.

 

If the community doesn’t want children to be raised with a distinctly Biblical view of history and science, the community shouldn’t have to contribute to that. If individual parents want to spend their own money on that, fine. That’s your prerogative. But school vouchers are made up of public tax dollars, yet we’re removing the majority of the public from having a voice in how that money is spent.

 

Moreover, traditional public schools are required not to discriminate against students. They can’t select against students based on learning disabilities, ethnicity, skin color, gender, religion, sexual orientation, etc. And that’s a really good thing. Everyone’s money is used to pay for these schools. These schools should serve everyone.

 

But private and parochial schools (and charter schools, too, by the way) aren’t held to this same standard. It’s telling, for example, that U.S. Secretary of Education Betsy DeVos has refused to commit to holding private and parochial schools that accept school vouchers accountable if they discriminate against children. She seems to be implying that the U.S. government will stand aside and let public tax dollars be spent to support schools that discriminate. And the reason they think they can get away with this is the cynical monetary alchemy outlined above: school vouchers are private money and can be spent any way parents want. It isn’t and they can’t.

 

This is government sanctioned money laundering, pure and simple.

 

Lawmakers have been bought off with huge donations from the privatization industry to enact legislation friendly toward private and parochial schools.

 

NAME CHANGE

 

In some cases, they don’t even use the name “school vouchers.” They call it education tax credit scholarships, but it’s effectively the same thing.

 

Instead of distributing the vouchers directly to parents, they allow businesses and individuals to make tax deductible donations to nonprofits set up explicitly to distribute vouchers for private and parochial schools.

 

The reason? People don’t like school vouchers. But if you call it a “scholarship,” it’s more palatable. For instance, while school vouchers are mostly supported by Republicans, a substantial number of Democrats support education tax credit scholarships.

 

In 17 states you can get substantial tax credits for donating to one of these private and parochial school scholarships.

 

Louisiana, Oklahoma, Pennsylvania, Rhode Island, and Virginia, for example, all provide tax credits worth between $65 and $95 on every $100 donated. Alabama, Arizona, Georgia, Montana, and South Carolina go even further by reimbursing 100% of the donation. You read that right. Donate $100, get $100 back.

 

Oh, but it gets much worse. Since these are considered donations, you can also claim them as charitable deductions and get an additional 35% off your taxes. So you donate $100 and get back $135! Yes. You actually make money off this deal!

 

In my home state of Pennsylvania, investors can even “triple dip” receiving a state tax credit, a reduction in their state taxable income, and a reduction in their federal taxable income. And, yes, that means they sometimes get back more in tax breaks than they provide in contributions.

 

Meanwhile all of these “savings” come from money stolen from local public schools. Businesses and individual investors are profiting off of the deteriorating conditions at public schools.

 

Ever wonder why class sizes are ballooning, teachers are being furloughed and electives are falling by the wayside? It’s because people are making money off children’s suffering.

 

In my home state of Pennsylvania, we call this the Opportunity Scholarship Tax Credit (OSTC) and the Educational Improvement Tax Credit (EITC) programs.

 

The state Budget and Policy Center estimates that about 76% of these “scholarships” go to religious schools. That was approximately $95 million dollars in 2014-15 (the last year for which data was available).

 

Many of these educational institutions are explicitly fundamentalist. This includes the 155 schools in the Association of Christian Schools International (ASCI) where they boast of “the highest belief in biblical accuracy in scientific and historical matters.” It also includes 35 schools in the Keystone Christian Education Association.

 

How many more parochial schools are using tax dollars to teach fundamentalist curriculum? Without an audit, we’ll never know.

 

And that’s a really significant issue.

 

These scholarships are supposed to be eligible only to low income students. Yet a significant number of them are being utilized at private schools with average tuitions of $32,000 – far more than the few thousand dollars provided by the scholarships. They are apparently being used by wealthy and middle class students who can already afford private schools but are using public tax dollars to reduce the cost.

 

A total of $11.2 million in EITC and OSTC tax credits went to just 23 of the most exclusive and expensive private schools in 2014-15. That’s 9% of the total. Suburban Philadelphia’s Haverford School, alone, received $2.2 million, buying down its $37,500 tuition.

 

How many parents misused these scholarships in this way? What is the racial and ethnic makeup of recipients? Again, without an audit, we don’t know.

 

This is not how public money should be spent.

 

We need to put the breaks on these initiatives, not expand them into a federal incentive program as the Trump Administration proposes.

 

Whether you call them education tax credit scholarships or school vouchers, these programs do not transform public money into private.

 

They are a scam. They are theft. And their biggest victims are children.