Campaign News

FOR IMMEDIATE RELEASE: January 21, 2015

Contact:Ricardo A. Ramírez, rramirez@populardemocracy.org, 202-464-7376  

5 Questions to Ask During School Choice Week

Charter school leaders are about to launch School Choice Week. But with essential gaps in accountability and fraud looming over the charter sector, education advocates are demanding a response from political figures and charter school proponents. The Center for Popular Democracy (CPD), which hasdocumented state-level charter school fraud, is releasing five key questions on charter school accountability during School Choice Week.

Members of the press interested in further background information or quotes from our researchers should write to rramirez@populardemocracy.org.

With approximately 2.57 million students enrolled in more than 6,000 charter schools nationwide, the charter sector is quickly becoming a force to be reckoned with in our children’s education.  The problem: While there is much room for fraud in this taxpayer-funded, privately managed charter industry, oversight is just not keeping up – and taxpayers are being left holding the bag. 

Major reports have documented wasteful spending, fraud, and other practices that undermine the public trust in charter schools and the industry. But given the lack of regulation, CPD believes that these reports are merely the tip of the iceberg.  At a time when resources for public education are scarce and student services are threatened, taxpayers deserve transparency. Our questions – and answers – for charter school advocates and the politicians supporting them are:

How much money has your state lost to charter waste, fraud and abuse?With at least $100 million tax dollars lost to fraud, waste, or abuse by charter operators in the United States, there is significant progress needed before the charter sector can claim best practices on fraud and abuse. What’s worse, given the scant auditing and little regulation, the fraud uncovered so far might only be scratching the surface. The types of fraud fall into six major categories: [Reference: CPD report, May 2014]

Charter operators using public funds illegally for personal gain;

School revenue used to illegally support other charter operator businesses;

Mismanagement that puts children in actual or potential danger;

Charters illegally requesting public dollars for services not provided;

Charter operators illegally inflating enrollment to boost revenues; and,

Charter operators mismanaging public funds and schools.  

Are charter operators required to establish strong business practices that guard against fraud, waste, mismanagement, and abuse? Do regulators in your state have the authority and resources to regularly assess charter school business practices? Despite millions of dollars lost to shady practices, charter operators are overwhelmingly not required by law to establish strong business practices that protect against fraud and waste. We need change:         Charter schools should institute an internal fraud risk management program, including an annual fraud risk assessment.       

Oversight agencies should regularly audit charter schools and use methodologies that are specifically designed to assess the effectiveness of charter school business practices and uncover fraud.  

Does your state require charter school operators and their boards of directors to provide adequate documentation to regulators ensuring funds are spent on student success? Across the country, investigations led by attorneys general, state auditors and charter authorizers have found significant cases of waste, fraud and abuse in our nation’s charter schools. The majority of investigations are initiated by whistleblowers because most regulators do not have the resources to proactively search for fraud, waste, or abuse of public tax dollars. [References:CPD report, December 2014; CPD report, October 2014]

Can your state adequately monitor the way charters spend public dollars including who charter operators are subcontracting with for public services? Because most charter schools laws do not adequately empower state regulators, regulators are often unable to monitor the legality of the operations of companies that provide educational services to charter schools. For example, Pete Grannis, New York State's First Deputy Comptroller, reported recently that charter school audits by his office have found "practices that are questionable at best, illegal at worst" at some charter schools.[1] While his office would like to investigate all aspects of a charter operators business practices, they do not have the authority. To reform the system, he believes that “as a condition for agreeing to approve a new charter school or renew an existing one, charter regulators could require schools and their management companies to agree to provide any and all financial records related to the school. “[2]

This example typifies the lack of authority given to charter oversight bodies. Lawmakers should act to amend their charter school laws to give charter oversight bodies the powers to audit all levels of a charter schools operations, including their parent companies and the companies they contract out their educational services to.  

Are online charter operators audited for quality of services provided to students and financial transparency? Online charter schools represent another rapidly growing sector. The rapid growth has made the online charter school industry susceptible to similar pitfalls facing the poorly regulated charter industry as whole. As one longtime academic researcher puts it, “The current climate of elementary and secondary school reform that promotes uncritical acceptance of any and all virtual education innovations is not supported by educational research. A model that is built around churn is not sustainable; the unchecked growth of virtual schools is essentially an education tech bubble.”[3]

Given the poor outcomes being generated by most online charter schools, state regulators should be empowered with more authority to ensure these schools are not violating state laws or their charter agreements.

[1]https://www.propublica.org/article/ny-state-official-raises-alarm-on-charter-schools-and-gets-ignored

[2] https://www.propublica.org/article/ny-state-official-raises-alarm-on-charter-schools-and-gets-ignored

[3]http://nepc.colorado.edu/newsletter/2013/05/virtual-schools-annual-2013

A U.S. central banker on Wednesday pledged to devote more resources to addressing economic disparities between black and white Americans, saying the high rate of unemployment among African Americans is "really troubling."

"I do think some of the racial disparities are a crisis and we need to treat them like a crisis," Neel Kashkari, chief of the Federal Reserve Bank of Minneapolis, said after meeting with members of the Minneapolis black community and Fed Up, a network of community organizations and labor unions calling for changes to the U.S. central bank.

Kashkari, a former Republican candidate for California governor, is the son of Indian immigrants and the only one of 17 Fed policy-makers nationwide who is not white.

Unemployment among black Americans, for example, is typically twice that for whites, Kashkari noted. Educational disparity may be one factor, but more research is needed to identify causes, he said.

"We need to understand the 'why?' before we can design potential solutions," Kashkari said. "You don’t tackle a crisis with incremental solutions ... We need to bring overwhelming force to try to address this."

At the same time, Kashkari suggested the solutions are likely to go beyond the powers of the Fed, with lawmakers and local politicians likely in a better position to craft meaningful solutions.

The Fed, he said, has only the tool of interest rates at its disposal. As long as inflation remains low, he said, the Fed can keep rates low to boost job prospects for all Americans. But, he said, there is little the Fed can do to address structural problems in the economy besides contribute to research.

Regional Fed bank presidents often meet with members of their communities but only rarely are those meetings publicized.

Wednesday's meeting and press conference afterward was livestreamed by Minneapolis-based media collective Unicorn Riot from the offices of Minnesota Neighborhoods Organizing for Change, which hosted the event at which several community members aired their experiences with low pay, long hours and homelessness.

Kashkari promised to spend a day with one of the participants to better understand the challenges she faces.

He also promised to meet with community activists again this month on the sidelines of an annual meeting of global central bankers in a national park near the well-heeled town of Jackson, Wyoming, and to collaborate on research.

"My job is to be your voice," he said.

By KRISTOFFER TIGUE

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The Washington Post - October 5, 2014, by Valerie Strauss - Charter school advocates didn’t like it recently when Brown University’s Annenberg Institute for School Reform issued a report calling for the strengthening of charter oversight and authorization. While noting that many charters work hard to “meet the needs of their students,” the report said that “the lack of effective oversight means too many cases of fraud and abuse, too little attention to equity, and no guarantee of academic innovation or excellence.” It provided some common-sense recommendations, including an innocuous call for the establishment of minimum qualifications for charter school treasurers. The National Alliance for Public Charter Schools, not surprisingly, bashed the report.

Meanwhile, a new report was just issued by three groups — the Center for Popular Democracy, Integrity in Education and ACTION United — that found major fraud and mismanagement in Pennsylvania’s charter schools. It found:

Charter school officials have defrauded at least $30 million intended for Pennsylvania school children since 1997. Yet every year virtually all of the state’s charter schools are found to be financially sound. While the state has complex, multi-layered systems of oversight of the charter system, this history of financial fraud makes it clear that these systems are not effectively detecting or preventing fraud. Indeed, the vast majority of fraud was uncovered by whistleblowers and media exposés, not by the state’s oversight agencies.

The great New York Times writer Michael Powell recently wrote a column detailing what can go wrong with a charter school when there is little or no oversight; in this case, he explores the sickening mess surrounding Prime Time Prep in Texas, created by Deion Sanders, a Hall of Fame cornerback and National Football League commentator.

Yes, there are many fine charter schools. But seriously bad news about many others keeps coming, and concerns are rising as the number of charters overall is increasing. The National Alliance for Public Charter Schools says that in 2013-2014, 2.57 million students were enrolled in more than 6,000 public charter schools nationwide, with nearly 2,000 new charter schools opening in the past five years.

Here’s a piece about what’s going on in the charter world by Jeff Bryant, who is the director of the Education Opportunity Network, a partnership effort of the Institute for America’s Future and the Opportunity to Learn Campaign. He owns a marketing and communications consultancy in Chapel Hill, N.C., and has written extensively about public education policy. A version of this appeared in Salon.

By Jeff Bryant

When former President Bill Clinton recently meandered onto the topic of charter schools, he mentioned something about an “original bargain” that charters were, according to the reporter for The Huffington Post, “supposed to do a better job of educating students.”

A writer at Salon called the remark “stunning” because it brought to light the fact that the overwhelming majority of charter schools do no better than traditional public schools. Yet, as the Huffington reporter reminded us, charter schools are rarely shuttered for low academic performance. But what’s most remarkable about what Clinton said is how little his statement resembles the truth about how charters have become a reality in so many American communities.

In a real “bargaining process,” those who bear the consequences of the deal have some say-so on the terms, the deal-makers have to represent themselves honestly (or the deal is off and the negotiating ends), and there are measures in place to ensure everyone involved is held accountable after the deal has been struck.

But that’s not what’s happening in the great charter industry rollout transpiring across the country. Rather than a negotiation over terms, charters are being imposed on communities – either by legislative fiat or well-engineered public policy campaigns. Many charter school operators keep their practices hidden or have been found to be blatantly corrupt. And no one seems to be doing anything to ensure real accountability for these rapidly expanding school operations.

Instead of the “bargain” political leaders may have thought they struck with seemingly well-intentioned charter entrepreneurs, what has transpired instead looks more like a raw deal for many students, their families, and their communities.

Charter Schools As Takeover Operations

The “100 percent charter schools” education system in New Orleans that Clinton praised was never presented to the citizens of New Orleans in a negotiation. It was surreptitiously engineered.

After Katrina, as NPR recently reported, “an ad hoc coalition of elected leaders and nationally known charter advocates formed,” and in “a series of quick decisions,” all school employees were fired and the vast majority of the city’s schools were handed over to a state entity called the “Recovery School District” which is governed by unelected officials. Only a “few elite schools were … allowed to maintain their selective admissions.”

In other words, any bargaining that was done was behind closed doors and at tables where most of the people who were being affected had no seat.

Further, any evidence of the improvement of the educational attainment of students in the New Orleans Recovery all-charter Recovery District is obtainable only by “jukin the stats” or, as the NPR reporter put it, through “a distortion of the curriculum and teaching practice.” As Andrea Gabor wrote for Newsweek a year ago, “the current reality of the city’s schools should be enough to give pause to even the most passionate charter supporters.”

Yet now political leaders tout this model for the rest of the country. Education Secretary Arne Duncan once even said that he thinks “the best thing that happened to the education system in New Orleans was Hurricane Katrina” because it wrecked the previous low-functioning school system and brought about the rise of charter schools in the Recovery District. So some school districts that have not had a Katrina are having charter schools imposed on them in blatant power plays. An obvious example is what’s currently happening in the York, Pennsylvania.

School districts across the state of Pennsylvania are financially troubled due to chronic state underfunding – only 36 percent of K-12 revenue comes from the state, way below national averages – and massive budget cuts imposed by Republican Governor Tom Corbett (the state funds education less than it did in 2008).

The state cuts seemed to have been intentionally targeted to hit high-poverty school districts like York City the hardest. After combing through state financial records, a report from the state’s school employee union found, “State funding cuts to the most impoverished school districts averaged more than three times the size of the cuts for districts with the lowest average child poverty.” The unsurprising results of these cuts has been that in school districts serving low income kids, like York, instruction was cut and scores on state student assessments declined.

The York City district was exceptionally strapped, having been hit by $8.4 million in cuts, which prompted class size increases and teacher furloughs. Due to financial difficulties, which the state legislature and Governor Corbett had by-and-large engineered, York was targeted in 2012, along with three other districts, for state takeover by an unelected “recovery official,” eerily similar to New Orleans post-Katrina.

The “recovery” process for York schools also entailed a “transformation model” with challenging financial and academic targets the district had little chance in reaching, and charter school conversion as a consequence of failure. Now the local school board is being forced to pick a charter provider and make their district the first in the state to hand over the education of all its children to a corporation that will call all the shots and give York’s citizens very little say in how their children’s schools are run.

None of this is happening with the negotiated consent of the citizens of York. The voices of York citizens that have been absent from the bargaining tables are being heard in the streets and in school board meetings. According to a local news outlet, at a recent protest before the city’s school board, “a district teacher and father of three students … presented the board with more than 3,700 signatures of people opposed to a possible conversion of district schools to charter schools,” and “a student at the high school also presented the board with a petition signed by more than 260 students opposed to charter conversion.” Yet the state official demanding charter takeover remains completely unaltered in his view that this action is “what’s bets for our kids.”

What’s important to note is York schools are not necessarily failures academically, as New Jersey-based music teacher and education blogger going by the name Jersey Jazzman stated on his personal blog. Looking at how the districts’ students perform on state assessments, he found that academic performance levels were “pretty much where you’d expect them to be” based on the fact that “most of York’s schools have student populations where 80 percent or more of the children are in economic disadvantage,” and variations in student test score performance almost always correlate strongly with students’ financial conditions.  He concluded that what was happening to York schools more represents a “long con” in which tax cuts and claims of “budgetary poverty” have prompted a rapacious state government to “declare an educational emergency, and then let edu-vultures … pick at the bones of a decimated school system.”

The attack on York City schools is not unique. As an official with the National Education Association recently pointed out on the blog Living in Dialogue, “It’s the same story that played out in Detroit, Flint, and Philadelphia where these ‘chief recovery officers’ or ‘emergency managers’ have all made the same recommendation: to hand over the cities’ public schools to the highest private bidder.”

Then, hiding behind pledges to do “what’s best for kids,” these operators too often do anything but.

Charter Schools Takeover, Corruption Ensues

York teachers and parents have good reasons to be wary of charter school takeover. As a new report discloses, charter school officials in their state have defrauded at least $30 million intended for school children since 1997.

The report, “Fraud and Financial Mismanagement in Pennsylvania’s Charter Schools,” was released by three groups, the Center for Popular Democracy, Integrity in Education, and ACTION United.

Startling examples of charter school financial malfeasance revealed by the authors –just in Pennsylvania – include an administrator who diverted $2.6 million in school funds to a church property he also operated. Another charter school chief was caught spending millions in school funds to bail out other nonprofits associated with the school. A pair of charter school operators stole more than $900,000 from the school by using fraudulent invoices, and a cyber school entrepreneur diverted $8 million of school funds for houses, a Florida condominium, and an airplane.

What’s even more alarming is that none of these crimes were detected by state agencies overseeing the schools. As the report clearly documents, every year virtually all of the state’s charter schools are found to be financially sound. The vast majority of fraud was uncovered by whistleblowers and media coverage and not by state auditors who have a history of not effectively detecting or preventing fraud.

Pennsylvania spends over a billion dollars a year on charter schools, and the $30 million lost to fraud documented in this study is likely the minimum possible amount. The report authors recommend a moratorium on new charter schools in the state and call on the Attorney General to launch an investigation.

The report is a continuation of a study earlier this year that exposed $100 million in taxpayer funds meant for children instead lost to fraud, waste, and abuse by charter schools in 15 states. Now the authors of the study are going state-by-state, beginning with Pennsylvania, to investigate how charter school fraud is spreading.

What’s happening to York City is not going to help. The two charter operators being considered for that takeover – Mosaica Education, Inc., and Charter Schools USA – have particularly troubling track records.

According to a report from Politico, after Mosaica took over the Muskegon Heights, Michigan school system in 2012, “complications soon followed.” After massive layoffs, about a quarter of the newly hired teachers quit, and when Mosaica realized they weren’t making a profit within two years, they pulled up stakes and went in search of other targets.

As for the other candidate in the running, Charter Schools USA, a report from the Florida League of Women Voters produced earlier this year found that charter operation running a real estate racket that diverts taxpayer money for education to private pockets. In Hillsborough County alone, schools owned by Charter Schools USA collaborated with a construction company in Minneapolis, M.N. and a real estate partner called Red Apple Development Company in a scheme to lock in big profits for their operations and saddle county taxpayers with millions of dollars in lease fees every year.

In one example, cited by education historian Diane Ravitch, Charter USA’s construction company bought a former Verizon call center for $3,750,000, made no discernible exterior changes except removal of the front door and adding a $7,000 canopy, and sold the building as Woodmont Charter School to Red Apple Development for $9,700,000 six months later. Lease fees for the last two years were $1,009,800 and $1,029,996.

No wonder York citizens are concerned.

What Happened To Charter School Accountability?

Charter schools that were supposedly intended to be more “accountable” to the public are turning out to be anything but.

As an article for The Nation recently observed, “Charters were supposed to be laboratories for innovation. Instead, they are stunningly opaque.”

The article, written by author and university professor Pedro Noguera, explained, “Charter schools are frequently not accountable. Indeed, they are stunningly opaque, more black boxes than transparent laboratories for education.”

Rather than having to show their books, as public schools do, Noguera contended, “Most charters lack financial transparency.” As an example, he offered a study of KIPP charter schools, which found that they receive “‘an estimated $6,500 more per pupil in revenues from public or private sources’ compared to local school districts.” But only a scant portion of that disproportionate funding – just $457 in spending per pupil – could accurately be accounted for “because KIPP does not disclose how it uses money received from private sources.

In addition to the difficulties in following the money,” Noguero continued, “there is evidence that many charters seek to accept only the least difficult (and therefore the least expensive) students. Even though charter schools are required by law to admit students through lotteries, in many cities, the charters under-enroll the most disadvantaged children.”

This tendency of charter schools operations provides a double bonus as their student test scores get pushed to higher levels and the public schools surrounding them have to take on disproportionate percentages of high needs students who push their test score results lower. Noguera cited a study showing that traditional schools serving the largest percentages of high-needs students are frequently the first to be branded with the “failure” label.

If charter schools are going to have any legitimacy at all, what’s required, Noguera concluded is “greater transparency and collaboration with public schools.”

Fortunately, yet another new report points us in the right direction.

This report, “Public Accountability for Charter Schools,” published by the Annenberg Institute for School Reform, “recommends changes to state charter legislation and charter authorizer standards that would reduce student inequities and achieve complete transparency and accountability to the communities served,” according to the organization’s press release.

According to the report, these recommendations are the product of “a working group of grassroots organizers and leaders” from Chicago, Philadelphia, Newark, New York, and other cities, who have “first-hand experience and years of working directly with impacted communities and families, rather than relying only on limited measures such as standardized test scores to assess impact.”

These new guidelines are intended to address numerous examples of charter school failure to disclose essential information about their operations, including financial information, school discipline policies, student enrollment processes, and efforts to collaborate with public schools.

For instance, the report notes that the director of the state Office of Open Records in Pennsylvania, “testified that her office had received 239 appeals in cases where charter schools either rejected or failed to answer requests from the public for information on budgets, payrolls, or student rosters.” In Ohio, a charter chain operated by for-profit White Hat Management Company, “takes in more than $60 million in public funding annually … yet has refused to comply with requests from the governing boards of its own schools for detailed financial reports.” In Philadelphia, the report authors found a charter school that made applications for enrollment available “only one day a year, and only to families who attend an open house at a golf club in the Philadelphia suburbs.” In New York City, where charter schools are co-located in public school buildings, “public school parents have complained that their students have shorter recess, fewer library hours, and earlier lunch schedules to better accommodate students enrolled at the co-located charter school.” The report quotes a lawsuit filed by the NAACP, which documented public school classrooms “with peeling paint and insufficient resources” made to co-locate with charters that have “new computers, brand-new desks, and up-to-date textbooks.”

The Annenberg report’s policy prescriptions fall into seven categories of “standards:”

Traditional school districts and charter schools should collaborate to ensure a coordinated approach that serves all children.

School governance should be representative and transparent.

Charter schools should ensure equal access to interested students and prohibit practices that discourage enrollment or disproportionately push-out enrolled students.

Charter school discipline policy should be fair and transparent.

All students deserve equitable and adequate school facilities. Districts and charter schools should collaborate to ensure facility arrangements do not disadvantage students in either sector.

Online charter schools should be better regulated for quality, transparency and the protection of student data.

Monitoring and oversight of charter schools are critical to protect the public interest; they should be strong and fully state funded.

Unsurprisingly, the report got an immediate response from the National Alliance for Public Charter Schools. That organization’s response cites “remarkable results” as an excuse for why charters should continue to be allowed to skirt public accountability despite the fact they get public money. However, whenever there is close scrutiny of the remarkable results the charter industry loves to crow about, the facts are those results really aren’t there.

Charter Accountability Now

Of course, now that the truth about charter schools is starting to leak out of the corners of the “black box” the industry uses to protect itself, the charter school PR machine is doing everything it can to cover up reality.

Beginning with the new school year, the charter school industry has been on a publicity terror with a national campaign claiming to tell “The Truth About Charters” and high dollar promotional appeals in Philadelphia and New York City.

But the word is out, and resistance to charter takeovers is stiffening in more places than York. In school systems such as Philadelphia, Bridgeport, Pittsburgh, and Chicago, where charter schools are major providers, parents and local officials have increasingly opposed charter takeovers of their neighborhood schools. A recent poll in Michigan, where the majority of charter operations are for-profit, found that 73 percent of voters want a moratorium on opening any new charter schools until the state department of education and the state legislature conduct a full review of the charter school system.

There’s little doubt now that the grand bargain Bill Clinton and other leaders thought they were making with charter schools proponents was a raw deal. The deal is off.

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Death Cab For Cutie have released a new anti-Donald Trump song.

The track, 'Million Dollar Loan', is one of 30 tracks being released over the next 30 days in the final run in to the US Presidential election. Watch the video below.

Other artists who will feature on the anti-Trump '30 Days, 30 Songs' compilation, include My Morning Jacket’s Jim James, Aimee Mann and Thao Nguyen. A previously unreleased live track by R.E.M will also feature.

"Lyrically, 'Million Dollar Loan' deals with a particularly tone deaf moment in Donald Trump's ascent to the Republican nomination,” said Death Cab For Cutie frontman Ben Gibbard. "While campaigning in New Hampshire last year, he attempted to cast himself as a self-made man by claiming he built his fortune with just a 'small loan of a million dollars' from his father. Not only has this statement been proven to be wildly untrue, he was so flippant about it. It truly disgusted me.

“Donald Trump has repeatedly demonstrated that he is unworthy of the honour and responsibility of being President of the United States of America, and in no way, shape or form represents what this country truly stands for. He is beneath us."

You can purchase 'Million Dollar Loan' here. All of 30 Days’ proceeds will go to the Center for Popular Democracy and their efforts toward Universal Voter Registration in America.

Earlier today (October 10), the music world reacted to the second US Presidential town hall debate with Hillary Clinton and Donald Trump.

By DAMIAN JONES

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