The truth about charter schools
Daniel Downs
June 18, 2007
Are public charter schools in Ohio filled with unregulated crooks? Xenia City Schools Supt. Jeffrey Lewis seems to think so. He recently wrote an article entitled “What to know about Ohio’s charter schools” that was re-published in Schools Matter. His argument is misleading and sometimes inaccurate. For example, while referring to charter schools, he says, “imagine if a school district ran its schools for the objective of making money.” The implication is that all public charters are run by for-profit organizations, which is not true. According to the Cincinnati Enquirer, only one-fifth of all Ohio charter schools are operated by private for-profits companies.
Next, Lewis says public charter schools are unaccountable to the public. He seeks to prove this by pointing out four cases of embezzlement that have been prosecuted over the past two to three years. (See references below.) As with all private companies, privately-owned management services are not required by law to disclose information to the public, but to claim they are unaccountable for public money is not true. All charter schools are subject to periodical audits by Ohio’s auditor. While in office, Betty Montgomery caught most of the crooks mentioned by Lewis. She also advised Ohio’s lawmakers on the need for stricter regulatory oversight of charter schools. Since Ohio’s new auditor Mary Taylor has taken over, she has been applauding Ohio lawmakers for new legislation imposing stricter regulation on charters.
Without doubt some charters are poorly run, but not all. One example is Model Community School, which is being held up by Taylor as a model of fiscal excellence.
Lewis’ claim that charter schools have no local accountability is also patently false. All charters have a board of local owners/residents who provide oversight. Even privately run public charters have parental involvement in business meetings, but not all.
If charters have local board oversight, how was it possible for a few administrators to embezzle millions of dollars? How does any employee rip off their employer? Enron had a board of directors. Westfall Local School District has a board yet its officials are being investigated for fraud. Who would be the most capable employee to embezzle money from a school? The correct answer is the treasurer. It was the treasurer at Cleveland’s International Preparatory School who was indicted for embezzling the $1.4 million mentioned by Lewis.
Lewis’ next accusation is that public charter schools are parasites taking away millions of dollars from urban school districts like Dayton, Ohio. It is true public charters do receive lots of tax dollars, but the picture Lewis paints is not as bad as he makes it appear. He said charter schools used $44 million of federal funds two years ago. That is not a lot when compared to the little over $1.5 billion received by all Ohio K-12 schools, according to Ohio’s State Board of Education Annual Report for 2005-2006. Lewis also said charters are getting $5,300 per pupil like all other schools. Here he is correct, but don’t get excited. He deceives us when he claims charters are taking away local and state funding. Charters get no local tax dollars unless for special needs or for vocational services. Except for special needs, Ohio’s funding formula only allows public charters state and federal funding. The same is true of Virtual Charters, except they can receive no local funds even for special needs.
Lewis also wants readers to believe virtual school expenditures are only $2,000 per pupil, which if true would mean a profit of $3,300 per pupil or profits exceeding $56 million. Instead, a 2003 study by Ohio’s Legislative Office of Education Oversight found virtual schools had reported expenditures of $5,382 per pupil while receiving $5965. By comparison, other community schools spent $7,452 per pupil and school districts $8,437. Some want to believe the discrepancy of $7.6 million was a fraudulent way of making a profit. The report, however, indicated that the discrepancy was due to improved operating efficiency leading to a surplus rather than fraud.
Following his fraudulent argument against virtual schools, Lewis’ accuses White Hat of committing the crime of profit-making. It is a fact that White Hat, a for-profit management company, is making a profit. So what! Many companies are making a profit providing products and performing services for our public schools. Are we to believe Lewis is not profiting from his $105,000 annual salary? What about the other administrators and principals who are making a combined total of $1.5 million a year? How about supervisors, specialists, coordinators, psychologists, nurses, and teachers? The fact is thousands of individuals and businesses are profiting from public school tax dollars.
The real problem public school operators like Lewis have with charter schools is competition. Privatization of public service must be hell to those who have profited from many years of little competition or public scrutiny. With No Child Left Behind opening new vistas for more alternative schooling, Lewis is probably afraid he will have to join in on the chorus ‘those were the days’.
Additional sources:
Ohio. Auditor of State. “Montgomery Calls for Closure of Troubled Cleveland Charter School.” Press Release. 11 October 11, 2005.
Special Audit Of CAMST Results In Arrests, Indictments Of Charter School Operators.” 15 September 2006.
Ongoing Special Audit Of W.E.B. DuBois Academy Results In Indictment.” 23 October 2006.
Cleveland School Treasurer Owes State $1.4 Million.” 20 February 2007.
Ohio. Department of Education. Office of Data Services. Management Information Systems. Federal Funding Similar District Staff Summary Report. 19 March 2005.
Next, Lewis says public charter schools are unaccountable to the public. He seeks to prove this by pointing out four cases of embezzlement that have been prosecuted over the past two to three years. (See references below.) As with all private companies, privately-owned management services are not required by law to disclose information to the public, but to claim they are unaccountable for public money is not true. All charter schools are subject to periodical audits by Ohio’s auditor. While in office, Betty Montgomery caught most of the crooks mentioned by Lewis. She also advised Ohio’s lawmakers on the need for stricter regulatory oversight of charter schools. Since Ohio’s new auditor Mary Taylor has taken over, she has been applauding Ohio lawmakers for new legislation imposing stricter regulation on charters.
Without doubt some charters are poorly run, but not all. One example is Model Community School, which is being held up by Taylor as a model of fiscal excellence.
Lewis’ claim that charter schools have no local accountability is also patently false. All charters have a board of local owners/residents who provide oversight. Even privately run public charters have parental involvement in business meetings, but not all.
If charters have local board oversight, how was it possible for a few administrators to embezzle millions of dollars? How does any employee rip off their employer? Enron had a board of directors. Westfall Local School District has a board yet its officials are being investigated for fraud. Who would be the most capable employee to embezzle money from a school? The correct answer is the treasurer. It was the treasurer at Cleveland’s International Preparatory School who was indicted for embezzling the $1.4 million mentioned by Lewis.
Lewis’ next accusation is that public charter schools are parasites taking away millions of dollars from urban school districts like Dayton, Ohio. It is true public charters do receive lots of tax dollars, but the picture Lewis paints is not as bad as he makes it appear. He said charter schools used $44 million of federal funds two years ago. That is not a lot when compared to the little over $1.5 billion received by all Ohio K-12 schools, according to Ohio’s State Board of Education Annual Report for 2005-2006. Lewis also said charters are getting $5,300 per pupil like all other schools. Here he is correct, but don’t get excited. He deceives us when he claims charters are taking away local and state funding. Charters get no local tax dollars unless for special needs or for vocational services. Except for special needs, Ohio’s funding formula only allows public charters state and federal funding. The same is true of Virtual Charters, except they can receive no local funds even for special needs.
Lewis also wants readers to believe virtual school expenditures are only $2,000 per pupil, which if true would mean a profit of $3,300 per pupil or profits exceeding $56 million. Instead, a 2003 study by Ohio’s Legislative Office of Education Oversight found virtual schools had reported expenditures of $5,382 per pupil while receiving $5965. By comparison, other community schools spent $7,452 per pupil and school districts $8,437. Some want to believe the discrepancy of $7.6 million was a fraudulent way of making a profit. The report, however, indicated that the discrepancy was due to improved operating efficiency leading to a surplus rather than fraud.
Following his fraudulent argument against virtual schools, Lewis’ accuses White Hat of committing the crime of profit-making. It is a fact that White Hat, a for-profit management company, is making a profit. So what! Many companies are making a profit providing products and performing services for our public schools. Are we to believe Lewis is not profiting from his $105,000 annual salary? What about the other administrators and principals who are making a combined total of $1.5 million a year? How about supervisors, specialists, coordinators, psychologists, nurses, and teachers? The fact is thousands of individuals and businesses are profiting from public school tax dollars.
The real problem public school operators like Lewis have with charter schools is competition. Privatization of public service must be hell to those who have profited from many years of little competition or public scrutiny. With No Child Left Behind opening new vistas for more alternative schooling, Lewis is probably afraid he will have to join in on the chorus ‘those were the days’.
Additional sources:
Ohio. Auditor of State. “Montgomery Calls for Closure of Troubled Cleveland Charter School.” Press Release. 11 October 11, 2005.
Special Audit Of CAMST Results In Arrests, Indictments Of Charter School Operators.” 15 September 2006.
Ongoing Special Audit Of W.E.B. DuBois Academy Results In Indictment.” 23 October 2006.
Cleveland School Treasurer Owes State $1.4 Million.” 20 February 2007.
Ohio. Department of Education. Office of Data Services. Management Information Systems. Federal Funding Similar District Staff Summary Report. 19 March 2005.
Print
Email
