I’m doing some telephone canvassing (not enough) for the No On Two campaign in Ohio and I’m finding out something that is extraordinary to me.
None of the people I’m talking to know that many, many charter schools in Ohio are run by for-profit operators. They don’t know this because I live in a low-income rural area, where we still have traditional public schools, where the schools are run by elected (not appointed) boards and are “operated” by public employees who live, pay taxes and spend their money here. “School reform” in terms of privatization hasn’t reached us yet. Don’t come, corporate reformers. This is not an invitation or a plea for help. It’s simply an observation. We’ll manage.
By Ohio law, charter schools are nonprofits. But about half the charter schools are managed by for-profit companies which pay the bills and pocket any profits. For-profit charter school managers took in $291 million in state funds last year, according to an Ohio Education Association study. The biggest charter manager in Ohio, [David Brennan’s] White Hat Management Co. of Akron, received $84 million for its Ohio schools, which include its Life Skills Centers and Riverside Academy in the Cincinnati region.
This to me seems like an outrageous omission by school reform proponents, and of course, there are plenty of liberal school reform proponents.
Should taxpayers really not know that they’re transferring public funds to private for-profit operators? I don’t remember deciding that “public” schools should be for-profit. I remember a lot of touchy-feely talk about neighborhood schools, and parental control, and “freedom” from those lazy, thuggish greedy teachers and their incessant demands for a seat at the table when their salary is determined. When did we decide schools were an “industry”?
When we talk about charter schools, and teachers unions, isn’t it only fair to inform taxpayers that there are non-profit charter schools and for-profit charter schools, and Ohio conservatives have gone for-profit charter schools in a big way? About half for-profit operators, in 2009, in Ohio. 80% for-profit operators, today, in Michigan. Isn’t it only fair to inform taxpayers that with the teachers unions out of the way, upon passage of Issue 2 in Ohio, we’re deregulating public schools even further than they already are in Ohio?
This is Diane Ravitch, who is, of course, the former charter school and deregulation advocate who is (now) appalled at what’s happened, and screaming “STOP!”:
There is a clash of ideas occurring in education right now between those who believe that public education is not only a fundamental right but a vital public service, akin to the public provision of police, fire protection, parks, and public libraries, and those who believe that the private sector is always superior to the public sector. Waiting for “Superman” is a powerful weapon on behalf of those championing the “free market” and privatization. It raises important questions, but all of the answers it offers require a transfer of public funds to the private sector. The stock market crash of 2008 should suffice to remind us that the managers of the private sector do not have a monopoly on success.
Well, yeah. I think that’s an understatement, but agreed. But let’s talk about the money. Does a school reformer/union buster want to tell my why I want my tax dollars flowing out of my district and into shareholder pockets? What happens to the “savings” when we take from teachers and other public school employees? Because if my Fabulous Projected Savings are slated to go to outfits like this, I think we need to talk about that. With teachers unions out of the way, who, pray tell, is going to lobby for public education? Where’s my organized, effective defense from the for-profit operators? Are we really going to kid ourselves and say that this “fundamental right and vital public service” argument is going to carry the day in my state legislature when up against for-profit operators and their lobbying dollars, once teachers unions are gone?
between those who believe that public education is not only a fundamental right but a vital public service
Please. We know better. We won’t stand a chance.
catclub
Didn’t I also read that one for-profit had a contract that said anything they bought under the contract was property of the company, not the school board paying for it? This was also the one that did not want to open its books, even though the source of the money was public dollars.
Nice work if you can get it.
Also, relative to this: “With teachers unions out of the way, who, pray tell, is going to lobby for public education?” Private prisons are doing just fine in lobbying for the criminal justice system. So no worries about education? Right, right?
Kay
@catclub:
There’s two private contractors who are fighting disclosure, that I know of, one in New York and one in Ohio.
The Ohio case is in court. They won’t reveal anything voluntarily, so the parent’s group who started the charter sued.
It’s incredible. You know they’d be walking a public employee who wouldn’t reveal where taxpayer money went out in handcuffs, right?
Kay
@catclub:
Here’s the Ohio case.
BGinCHI
There used to be a counter-cultural analogy that went something like “school is like prison.”
In Ohio that won’t be a figure of speech for long.
gene108
When people realized they could profit off of it. Edison private for profit schools was started in 1992, by a bunch of well connected Republicans.
kay
@gene108:
In twenty years, on Balloon Juice, liberals are going to be fighting over who is responsible for deregulating, then privatizing, public schools.
Many of the people deemed responsible will be liberals or Democrats.
You had a good question the other day, on whether this was like purchasing supplies from private companies. If you follow the last link, you’ll discover “purchased goods/services” and a comparison of that in Ohio public and for-profit charters. Eye-popping.
PeakVT
Psst: It’s Diane. /nitpicking
Also, it’s pretty clear at this point that private for-profit colleges have on the whole provided incredibly crappy results. It’s a somewhat different market from primary and secondary education, but the imbalances between the actors in both markets are similar. Why do we want to replicate the failure of the private colleges?
kay
@PeakVT:
Thanks. I’ll fix it.
The virulently anti-union NBC news “Education Nation” Special Report was co-sponsored by the University of Phoenix. Big University of Phoenix billboard behind the governors heads. Arne Duncan sitting in the audience. Bill Clinton gave the closing address.
They must not know that the University of Phoenix preys on scared unemployed people, and saddles them with massive debt, which they cannot discharge in bankruptcy.
I could weep, ya know?
Jill Miller Zimon
Thanks for linking to my post about for-profit charters in Ohio. The Thomas Fordham Institute, which is more or less the main, authoritative think tank on charters, has vilified Ohio’s system for years. Including this year. And in very large part because of the for-profits. I’ve written a ton about them over the years and must be clear: there are some EXCELLENT nonprofit charters that should be modeled and allowed to thrive as needed and/or desired by taxpayers. But the for-profits that plow their profits back thru campaign donations and lobbying have poisoned the waters for charters in Ohio – repeatedly.
Kay
@Jill Miller Zimon:
You’re welcome. The problem is, no one in Ohio seems to know that. Kasich is massively expanding charter schools. I looked at one case where three separate (consecutive) state auditors have tried to audit one school, since 2002, and they didn’t have the legal tools to demand compliance. That’s deliberate. They just gave the school another pass. The treasurer writes checks to himself. He’s still doing that.
Ohio Mom
@PeakVT:
Well, some of us think private colleges are failures but if you’re in it for the money, they have been spectacular sucesses. Here’s something I just googled (“For profit colleges — Do you go long or short?”), plenty more articles like it out there:
http://classicvalueinvestors.com/i/2010/08/for-profit-colleges-do-you-go-long-or-short/
Now just imagine the same article with the vastly larger K-12 system substituted for colleges.
slag
Kay- I have to admit that I don’t fully understand the context of your last blockquote. But you’re persuading me on the dangers of charter schools by documenting the actual slide down the slippery slope. Usually slippery slope arguments don’t work for me. I think the reason yours do is that they’re based on current events rather than hazy paranoia.
kay
@slag:
I’m an unlikely advocate for teachers. I was a terrible student (although I went to really good public schools, and everyone tried really hard). I spent the majority of my time between ages 5 and 17 avoiding teachers, or scamming them, or being punished (rightfully!) by them.
What scares me is the massive power of monied interests in this country. I don’t want them buying public education. I don’t trust them. I’ll lose lobbying against them, and for the “public interest”, if they get any more of a foothold in public education in Ohio. I’ll lose.
kay
@slag:
I don’t actually have an opinion on “charter schools”, generically. Now that we’ve decided to let for-profit actors in, is it realistic to expect that those for-profit actors will act in children’s best interests? Will they act in their employees best interests? Because I’m paying their employees, so I care about that.
They are responsible only to shareholders, are they not? That isn’t “public”. It’s private.
slag
@kay:
This is it precisely. The profit motive is where the slope got slippery. I see signs at Occupy that say stuff like “Build a Wall Between Corporation and State”, and totally see the connection here. It’s a big deal.
Also, now I understand your last blockquote. Emphasis. I get it.
kay
@slag:
It’s state-specific, too, so Ohio, Michigan and Florida are disasters.
But how can national reformers continue to ignore these whole states that are charter school disasters?
How can national reformers (like President Obama) ignore that state legislatures are being captured by for-profit education interests, with the complete rubber-stamping, funding and encouragement of the federal government?
Hey, if it’s working in Illinois, that’s great, but what about my state? What am I supposed to do to push back? Buy a state representative? All I have are teachers unions.
slag
@kay:
I feel this. Though, for me, my juvenile delinquency didn’t get going until around 13 or so (I was a late transgressor). Before then, I was a model (aka boring) student. But, having been on both sides of the academic tracks, I’m totally with you on your advocacy. You’re right. And persuasive. Good combo.
kay
@slag:
Hah! I had the “control group”, my many siblings, many of whom did great, so I knew it was me, not “teachers” or “public schools”.
slag
@kay:
Good question! I wish someone would ask them it. This is a serious issue and deserves serious consideration. Which is how we can know that we’re pretty much doomed.
catclub
@kay: “Now that we’ve decided to let for-profit actors in, is it realistic to expect that those for-profit actors will act in children’s best interests?”
That is really an impolite question. The next thing you know you’ll be asking if a for-profit healthcare business has the best interests of its patients at heart. (We already know about how a for-profit healthcare insurance business feels about its customers.)
RSA
*omission
(Sorry, couldn’t help it.)
slag
@kay:
I wouldn’t go that far, though. The system should be able to make room (whatever that looks like) for you and others like you. It’s a vital system, so we can’t afford to have it not do so. You got lucky somewhere along the way that your delinquency didn’t get you down. Me too. We know, however, that there are many, many others out there who aren’t so lucky.
Kay
@RSA:
Thanks. I fixed it.
Arclite
Let me give an example of how for profit can work. I work for a division in a very large company that makes software for a specific industry. Some of the customers we make website and backend software for are some of the largest players in our industry. In one section of the industry we serve, we provide the software for the two largest players (one east coast, and one west) in that section. In another section of the industry we have two of the top 5 players, and were runner up to provide software for the top player. And despite a drastic downturn in that industry, we have been growing and profitable, continuously adding customers, and improving and expanding our software. In any given month we would make 5-10% profit on our revenue over the past two years.
However, because we weren’t making 20% profit, the parent company started shopping our division around. No one wanted to buy us, so they were going to shut us down. Crazy, right? We are one of the best at what we do, and yet it wasn’t good enough because we would put our money into improving our products than pay out 20% in profit to our shareholders. We ended up with an executive buyout and now we’re a standalone company.
celtidragonchick
I am in the middle of this subject in my class on public school policy right now. We just finished a book by Diane Ravitch last week on the death and life of the great American school system.
Depressing and enraging.
iriedc
Kay – this DC charter school parent hopes you win. That OH charter legislation is dangerous, and a GOP Congress will foist it on us here in the District (home of taxation without representation). BTW, I used the info you’ve posted here to argue this point with an Dept of ED official the other day. He was surprised a Charter parent would be so skeptical of Charter legislation. And I was surprised he was so naive – I shouldn’t have been but I was.
kay
@Arclite:
If someone can show me an example where we took a public system and started publicly funding a private, for-profit system instead, and I benefitted, I’d be happy to look at it.
It’s not even working with for-profit colleges. Why would it work for k-12?
We’re not talking about private enterprise here. We’re talking about publicly funded private enterprise.
Congress just finished fighting a (mostly) losing battle to regulate public funding of for-profit colleges. It should have been a no-brainer, but it wasn’t, because lobbyists appeared (like Lanny Davis) and waged a full-out war against regulation.
Can you tell me why regulating public funding of for-profit k-12 would go any better, given the obvious problems we have with for-profit capture of our elected representatives?
What’s the plan?
Or are we just winging it, and hoping it turns out okay? Maybe this time our elected reps won’t be captured, it will be a first, but it could happen.
kay
@iriedc:
You’re back! I think liberal reformers are the only hope. Sadly, all the big shots are at forums sponsored by the University of Phoenix, a for-profit education company :)
jcgrim
Obama’s sec of Education, Arne Duncan, was a Rahm & Larry Summers pick over a real educator precisely because he privatized public school in Chicago with disastrous results to kids (not to the hedge fund managers who invested).
Any state that received Race to the Top is mandated to: (a) open their public coffers to privatizers, (b) approve alternate routes to certification for teachers (e.g. untrained Teach for America or online certification programs that bypass universities), (c) impose draconian standardized testing regimes on all kids and use the scores for fraudulent hiring and firing of staff, (d) impose invald teacher evaluation systems developed by frauds such as the Miliken foundation.
The Obama administration, with the help of CAP and Democrats for Education Reform the Senate may make Race to the Top a permanent part of ESEA! Privatization utopia.
iriedc
Hi there Kay! I’m always hanging around here at BJ. :)
But if I’m on my smartphone it can be a real PITA to comment. And I can’t view political sites on the work computer.
Mindless support of Charters is not smart Liberal policy. When I became a parent the situation in DC made me rethink my hostility to Charters, but being involved with them makes me want stronger neighborhood schools. A nation of Charters is not sustainable (too much work for individual school boards) UNLESS we let corporates take over. And I’m liberal enough to believe that corporates having free reign running our schools will undermine democracy. My mother was a public school educator, so my respect for the US public school system is deep and personal.
Arclite
@kay: My point exactly, if it doesn’t even work well in a corporate widget-making (or software making) competitive environment where for profit companies are supposed to be ideal, then how can it work in a very low choice, non competitive environment?
When a company makes a poor product, there’s instant feedback, as people will look for competing products or substitutes. Sales go down, and the company eiher improves its products, or goes out of business. That’s just not possible with schools. It’s not something that can fit into a free market system without massive regulation. And if you’re going to massively regulate, why not just make it public?
kay
@Arclite:
Thanks for clearing it up.
I also object to children being compared to products. I’m not even all that sentimental about children, but surely they aren’t products, right?
I hate the narrowness that conservatives impose on debate. There is no other model than a for-profit business model. When did we all decide that was true? What if I don’t think schools should be run like for-profit entities? Because I don’t. I think that’s nuts.
JenJen
Kay, don’t know if you’re still checking this thread, but I received a mailer today that read “Great Teachers Deserve To Be Rewarded: Vote YES on Issue 2!”
I’m a little worried about this outrageously misleading flyer. Noticed a billboard on I-75 thru Cincinnati making the same “case” just the other day.