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Monthly Archives: December 2019

Michael Kohlhass: How “Nonprofit” Charter Schools Make a Profit

Discover the SCAM: how faux non-profit, publicly funded private sector charter schools make a profit while claiming to be a non-profit.

dianeravitch's avatarDiane Ravitch's blog

There are many ways in which nonprofit charters make a profit. Most involve complex real estate transactions and such things as “triple net leases” which are hard for the public to understand. Such deals often involve a charter operator owning or leasing the real estate and renting it to the charter school at exorbitant rates, with the public footing the bill.

Michael Kohlhaas has discovered another ingenious way that allegedly nonprofit charter operators extract money from their operations. 

He describes the case of a charter operator in Los Angeles who sold his “receivables” soon after getting his charter.

Kohlhaas writes:

The idea is very simple. A charter school has guaranteed future income in the form of payments from the state. They sell those payments to a finance company at a discount.

The finance company also charges a transaction fee. So for instance, if a charter has enrollment worth $1,000,000 they…

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Posted by on December 14, 2019 in Uncategorized

 

Network for Public Education Releases Explosive New Report on Federal Charter Schools Program

Where has all that taxpayer money gone?

dianeravitch's avatarDiane Ravitch's blog

Last spring, the Network for Public Education published a report on waste, fraud, and abuse in the federal Charter Schools Program. The report, called Asleep At the Wheel, documented the Department of Education’s failure to monitor the veracity or feasibility of applications for the program or to follow up on what happened to the money spent to launch new charter schools. It found that nearly $1 billion of federal dollars had been wasted on charters that either never opened or closed soon after opening.

Today, NPE released a new report that delves into what happened with federal money from the Charter Schools Program in the states. The findings were even more concerning than last spring’s report.
The new report is called Still Asleep At the Wheel.

An excerpt:

This report, Still Asleep at the Wheel: How the Federal Charter Schools Program Results in a Pileup of Fraud and…

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Posted by on December 10, 2019 in Uncategorized

 

Valerie Strauss on New NPE Report

I have an idea. Force Betsy DeVos to refund from her own bank accounts all the taxpayers’ money that vanished into Charter Schools that closed or never opened.

dianeravitch's avatarDiane Ravitch's blog

Valerie Strauss reviews “Still Asleep at the Wheel” here.

She begins:

“More than 35 percent of charter schools funded by the federal Charter School Program (CSP) between 2006 and 2014 either never opened or were shut down, costing taxpayers more than half a billion dollars, according to a new report from an advocacy group that reviewed records of nearly 5,000 schools.

“The state with the most charter schools that never opened was Michigan, home to Education Secretary Betsy DeVos.

“The report, titled “Still Asleep at the Wheel,” said that 537 “ghost schools” never opened but received a total of more than $45.5 million in federal start-up funding. That was more than 11 percent of all the schools that received funding from CSP, which began giving grants in 1995.

”In Michigan, where the billionaire DeVos has been instrumental over several decades in creating a charter school sector, 72 charters that received…

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Posted by on December 10, 2019 in Uncategorized

 

Thomas Armstrong: What If Einstein Ran Our Schools?

Two paths diverged in a wood and the billionaires, politicians, and technocrats took the wrong one and ignored the path Eignsten took.

dianeravitch's avatarDiane Ravitch's blog

Thomas Armstrong recently wrote a provocative book with the same title as this essay. I invited him to write a post for this blog, and he did. His point of view stands in sharp contrast to the current policy environment of testing, data, competition, and punishment for teachers, principals, students, and schools that don’t hit test score benchmarks.

He writes:

The National Assessment of Educational Progress (the ‘’nation’s report card’’), recently released reading and math test scores for fourth- and sixth-graders and the results have been less than stellar. Showing declines in reading and little progress in math, these results are bound to stimulate calls for new education reforms.  However, we should keep in mind the historical context in U.S. efforts to raise achievement levels in our schools.  This campaign for school reform dates as far back as 1983, when the then U.S. Secretary of Education, Terrel Bell, wrote his…

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Posted by on December 9, 2019 in Uncategorized

 

Superintendents to Public: Get Your Facts Right!

dianeravitch's avatarDiane Ravitch's blog

The National Superintendents Roundtable has a message for the public: be fair when judging our public schools. Schools today are far better than they were 40 or 50 years ago, by all conventional measures. what they might have added was that schools made steady progress until about 2007 or so, when No Child Left Behind took hold, then things were made worse by Race to the Top and Common Core. The proliferation of choice has flattened the progress made from 1970 to 2007.

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Posted by on December 1, 2019 in Uncategorized