Balancing the Business of Charter Schooling & Public Interests · 2016. 7. 6. · Mosaica...

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Graduate School of Education

Balancing the Business of Charter Schooling & Public Interests

Bruce D. Baker

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Drawing on Two Reports

• The Business of Charter Schooling

– With Gary Miron

– Published in Dec. 2015 by NEPC

– Outlined policy structures enabling problematic business practices

• Forthcoming report on Charter Expansion in Major Urban Centers

– Economic Policy Institute

– Evaluates long term impact on major urban districts

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Governance Structures, Legal & Policy Implications

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Dimension Local Education Agency Privately Governed Charter (Non‐State Actor)

Governance Governed by public officials (with all rights &

immunities)

Elected or appointed

Subject to open public records & open meetings

laws

Required to comply with public bidding

requirements

Governed by appointed (self‐appointed) board of

private citizens

May not be subject to open records or meetings laws

May not be required to engage in public

contract/bidding requirements

Private appointed board may hire private management

firm

Disclosure Required to disclose finances (reported relatively

consistently in most state data systems, including

detailed AFRs (annual financial reports) & public

posting of budgets)

Public officials subject to open meetings laws

All documents/employee contracts/financial

documents & communications between officials

subject to open records laws.

Usually required to report expenditure of public

funding. State data systems spotty and inconsistent on

charter school revenue/spending data (may be

required to disclose IRS filings [form 990])

Board members & managers may not be subject to

open meetings. Many documents/contracts with

private manager, etc. considered private/proprietary.

Individual Rights Public employees with key constitutional and

statutory protections

Retain rights to not have their government (school)

infringe on various constitutional and statutory

rights, and to uphold key statutory obligations.

Private employees may forgo certain rights to bring

legal challenges against their employer

Students may forgo numerous rights under privately

governed discipline codes.

How and why governance matters?

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Local Elected Governance

DOSDOS

DOS

DOS

State Charter Law

DCS

DCSICS

ICS

Gov’t AuthorizerUniversity

Authorizer(s)Other Private Authorizer(s)

ICS

Governan

ce/A

ccountability

Man

agement/Operation

Governing the Ungoverned?

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Graduate School of EducationIncreasingly complex & opaque flow of money

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Growth of Charter Schooling

Where & Who?

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Graduate School of EducationNational Distribution as of 2013

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0% 0% 1% 2% 3%5%

58%

70%66%

69%73%

53%

79%

84%

8%

0%

9%11%

17%18%

23%21%

26%

34%36% 37%

39%41%

15% 16%19% 20%

22%24%

27%30% 30%

34% 33%35%

38% 38%

5%8%

12%

19%

25%27% 28%

30% 30%28% 28% 30%

35%38%

2% 2%4%

6%7%

12%14%

16%18%

21%23%

25%28%

31%

1%4%

5%9%

12%14%

17%19% 20%

22% 23% 25%28% 30%

4%6%

8%10%

11% 13% 14% 15% 16% 18% 19%21%

24%28%

1% 1% 1% 1%3% 4% 6%

8% 9%

13%16%

19%23%

26%

0% 1% 1% 1%

6% 6%

10% 11%13% 14%

18%19%

22%26%

1% 1% 1%4%

9%

14%17% 16% 17% 19% 20% 21%

23%25%

NEW ORLEANS_LA WASHINGTON_DC DETROIT_MI PEMBROKE PINES_FL

CLEVELAND_OH COLUMBUS_OH PHILADELPHIA_PA HARRISBURG_PA

HOMESTEAD_FL TOLEDO_OH

Charter Expansion by City Boundaries

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0.5% 0.8% 1.1% 1.6% 2.0% 2.6%0.0% 0.0%

84.6%88.0% 89.5%

66.1%

92.3% 92.5%

6.3% 7.1% 8.4% 9.3% 10.9%13.4%

16.0%18.6%

20.8%23.3% 25.2%

29.6%34.4%

40.3%

6.5%

0.0%

7.5% 9.4%

14.5%16.7%

21.7% 20.9%

25.9%

35.4% 37.3% 37.8% 39.0% 40.2%

1.9%5.1%

7.5%11.1%

13.8%16.3%

18.8%22.3% 23.3%

26.0% 27.5%30.1%

33.6% 35.1%

11.3%15.2% 15.0%

17.4% 17.4%

0.0%

18.6% 18.5%22.2%

28.6%32.4%

37.9% 37.6%35.1%

2.2% 2.8% 3.0%7.2%

13.0%17.9%

22.3% 22.8% 23.3% 24.8% 25.3% 26.5%28.9%

30.9%

4.6% 4.5%

13.0%

18.1%22.0%

25.4%27.4% 27.3%

31.5%28.8%

31.0% 29.1% 30.0% 30.7%

3.7% 5.5% 7.1% 8.7% 10.4% 11.8% 13.0% 13.8% 15.2% 16.8% 18.0%20.7%

24.4%27.0%

2.2% 2.4% 4.1% 5.7% 7.4%10.3%

13.0% 15.0% 16.9% 18.3% 19.5%21.8%

24.7%26.9%

0.0% 0.0% 0.0% 1.4% 2.7% 4.4%7.0%

9.2%12.3%

15.7%18.7%

22.7%25.6% 26.9%

ORLEANS PARISH_LA DETROIT CITY SCHOOL DISTRICT_MI

DISTRICT OF COLUMBIA PUBLIC SCHOOLS_DC COLUMBUS CITY SCHOOL DISTRICT_OH

KANSAS CITY 33_MO TOLEDO CITY_OH

DAYTON CITY_OH PHILADELPHIA CITY SD_PA

CLEVELAND MUNICIPAL_OH INDIANAPOLIS PUBLIC SCHOOLS_IN

Charter Expansion by Geographic Host District

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Who’s Running Charter Schools?

Dominant Managers by State and Local Market (by Enrollment Served)

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Other

Imagine Schools, Inc.

Leona Group, LLC, The

PPEP and Affiliates

Great Hearts Academies

Legacy Traditional Charter School

Benjamin Franklin Charter School

Eduprize Schools, LLC

BASIS School, Inc.

Choice Education and Development Corporation

Daisy Education Corporation

Arizona Community Development CorporationKingman Academy Of Learning

Pointe Educational Services

Connections Education LLC.

EdKey

Learning Matters Educational Group

Pinnacle Education, Inc.

Rose Management Group

Center for Academic Success, Inc.

Career Success Schools

American Basic Schools, LLC

Arizona Agribusiness and Equine Center, Inc.

Mosaica Education, Inc.

Espiritu Community Development Corporation

SABIS Educational Systems, INC.

Academy of Tucson Inc.

Sequoia Choice

Schools Lllp

The Charter Foundation, Inc.

Educational Services of America, Inc.

CAFA, Inc.

Heritage Academy, Inc.

LEAD Charter SchoolsParagon Education CorporationCompass High School, Inc.

International Commerce Secondary Schools Inc.Omega SchoolsBright Beginnings School, Inc.Skyline Schools, Inc.

Country Gardens Educational Services, LLC

Tucson International Academy, Inc.Self Development Charter School

Arizona Academy of Leadership, Inc.White Hat Management

Montessori Charter School of Flagstaff, Inc.Blueprint EducationChampion Schools, Inc.The Edge School Inc.TAG Elementary, Inc.

Humanities and Sciences Academy of the United States,

Inc.

Southern Arizona Community Academy, Inc.Educational Impact, Inc.Eastpointe High School, Inc.Cornerstone Charter School, Inc.Academy of Excellence, Inc.StarShine AcademyGAR, LLCDesert Springs AcademyNew Visions Academy, Inc.

Montessori Schoolhouse of Tucson, Inc.Allsport Enterprises, IncEast Valley Academy

Who Runs Arizona Charter Schools?Distribution of Enrollments 2011‐12

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Other

The Partnership for Los Angeles Schools

K12 Inc.

Aspire Public Schools

Green Dot Public Schools

Innovative Education Management, Inc.

Alliance for College‐Ready Public Schools

Options for Youth Inc

ICEF Public Schools

KIPP Foundation

Gateway Community Charters

High Tech High

Partnerships to Uplift Communities, Inc.

Edison Learning, Inc.

Magnolia Educational & Research Foundation

Camino Nuevo Charter Academy

Celerity Educational Group

High Desert Partnership in Academic ExcellenceKing/Chavez Public SchoolsCalifornia Montessori ProjectThe Accelerated SchoolConnections Education LLC.Leadership Public SchoolsRocketship EducationSt. HOPE Public SchoolsEnvision SchoolsEducation for ChangeTracy Learning CenterGolden Valley Charter Schools

IncValue SchoolsThe Rocklin Academy

CORE (Community Options for Resources in Education)Bright Star SchoolsPara Los NinosFive Key Charter Schools, Inc.

Community Learning Center Schools IncEnvironmental Charter Schools

National University Charter Academy

American Indian Public Charter SchoolDiploma Plus, Inc.Imagine Schools, Inc.The Learner‐Centered School, Inc.

Insight SchoolsAlbert Einstein AcademyREAL Journey AcademiesBeacon Education NetworkCivicorps SchoolsMosaica Education, Inc.Willow Education

Learning Matters Educational GroupSemillas Sociedad CivilNew City Public SchoolsRoads Education Organization

Who Runs California Charter Schools?Enrollment Distribution 2011‐12

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Other

K12 Inc.


Cesar Chavez School Network

Insight Schools

Mosaica Education, Inc. Connections Education LLC.

White Hat ManagementEnvision Schools Colorado

Who Runs Colorado Charter Schools?Enrollment Distributions 2011‐12

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Other

Academica

Charter Schools USA


Charter School Associates, Inc.

White Hat Management

Accelerated Learning Solutions


ASPIRA Association Mavericks

Community Education Partners

Charter Schools of Excellence Inc.Rader GroupRichard Milburn Academy, Inc.TechEdventuresNewpoint Education Partners

Superior Management Corporation

Bright Horizons Family Solutions LLCAcademies of Excellence, Inc.ACH of America, LLCEducators' Management GroupPerformance Academies LLC

Community & Economic Development Organization of

Gadsden County, Inc.LLL Licensing, Inc.KIPP FoundationQuest, Inc

Who Runs Florida Charter Schools?Enrollment Distributions 2011‐12

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Noble Network of Charter Schools

UNO Charter School Network

Distinctive Schools

Victory Education Partners (formerly Victory Schools Inc.)

Charter Schools USA

Civitas Schools

Other

Perspectives Charter Schools

Academy for Urban School Leadership

ChicagoQuest

ASPIRA Association

Betty Shabazz International Charter School

Edison Learning, Inc. Catalyst Schools

Concept Schools

American Quality Schools

K12 Inc.Galapagos Charter

Lighthouse Academies,

Inc.

KIPP Foundation

Who Runs Illinois Charter Schools?Enrollment Distributions 2011‐12

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National Heritage Academies

Other


CS Partners, LLC

Choice Schools Associates LLC

Global Educational Excellence


Helicon Associates

Charter School Administrative Services

New Urban Learning

Varner and Associates International LLC

Prep Net LLC

Hamadeh Educational Services, Inc.

Romine Group, LLC, The

Innovative Teaching Solutions

Midwest Management Group Inc.



Woodbridge Management &

Education Services

Solid Rock Management Company

Smart Schools Management

Schoolhouse Services and Staffing, Inc.

Advance Educational Services

Bardwell Group

Lakeshore Educational Management, Inc.

Summit Management Consulting

Education Associates


Youth Visions Solutions

Transitions Consultants LLC

Evans Solution Management Company

Education Management and NetworksCreative Urban Education, Inc.

American Institutional Management Services

Visions Education Development Consortium LLC

Foundation for Behavioral ResourcesNataki Talibah SchoolhouseThree Pillars ESPEdtec Central, LLCConnections Education LLC.K12 Inc.Midland Charter Initiative

Black Star Educational ManagementSVRC Industries, Inc.Concept SchoolsO.P. Twelve, Inc.EightCAP Inc.Peak PerformanceHanley‐Harper Group, Inc

Educational Services of America, Inc.

Who Runs Michigan Charter Schools?Enrollment Distributions 2011‐12

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Other

Victory Education Partners (formerly Victory Schools Inc.)

Uncommon Schools

Achievement First


Success Charter Network

KIPP Foundation

Diploma Plus, Inc.

Ascend Learning, Inc

Hyde Leadership Schools

Beginning with Children Foundation


Harlem Village Academies Explore Schools, Inc

Lighthouse Academies, Inc.

Brighter Choice Charter Schools

Democracy Prep Public Schools

Green Dot Public Schools

Believe High School Network

Public Preparatory Network, Inc

Who Runs New York Charter Schools?Enrollment Distributions 2011‐12

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Other


K12 Inc.


Concept Schools

Constellation Schools, LLC



Summit Academy Management

Edvantages

eSchool Consultants


Buckeye On‐line School for Success

Institute of Management and Resources, Inc.


Breakthrough Charter Schools


KIPP Foundation

ISUS Internationa

l

Global Educational Excellence

Who Runs Ohio Charter Schools?Enrollment Distributions 2011‐12

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Other

K12 Inc.

OmniVest Properties Management, LLC


Mastery Charter Schools

Universal Companies, Inc.

Charter School Management Inc.

Propel Schools

ASPIRA Association


Scholar Academies

KIPP Foundation

Edsys, Inc.

Three Cord Inc.

Imagine Schools, Inc.White Hat Management


Who Runs Pennsylvania Charter Schools?Enrollment Distributions 2011‐12

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Other

Cosmos Foundation Inc.

KIPP FoundationIDEA Public Schools

Uplift Education

YES Prep Public Schools

Texans Can Academies (formerly America Can)

Life School

Rylie Family Faith Academy

Responsive Education Solutions

Neighborhood Centers Inc.

Shekinah Learning Institute, Inc.

Varnett Schools, Inc.

Winfree Academy Charter Schools

Student Alternatives Program Inc.

Faith Family Kids, Inc.

School of Excellence in EducationRichard Milburn Academy, Inc.Educational Leadership, Inc.

Raul Yzaguirre School

for Success

Riverwalk Education Foundation,

Inc.

Honors Academy


Jubilee Academic Center, Inc.

Golden Rule

Schools Inc.

Association for Development of Academic Excellence

Southwest Winners Foundation, Inc.

South Texas Education Technologies, Inc.

One Stop Multiservice Charter SchoolAcademicaTexas Boys ChoirNew Frontiers Charter School,

Inc.

Salvaging Teens at Risk, Inc.Educational Resource Center, Inc.

Two Dimensions Preparatory Academy, Inc.

Democratic Schools Research Incorporated

Tekoa Academy of Accelerated StudiesExcel Academy

Democratic Schools Research InstituteOrenda Education

East Waco Innovative School Development, Inc.

L. Lowell Byrd Memorial Education and Community Dev.

Cor.

Bay Area Charter School, Inc.Por Vida, Inc.Calvin Nelms Charter SchoolsGulf Coast Council of Laraza, Inc.Trinity Charter SchoolsConnections Between Cultures,

Inc.Panola Charter School

Who Runs Texas Charter Schools?Enrollment Distributions 2011‐12

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Who are Imagine, NHA, CSUSA, White Hat?

• Renaissance Academy for Math and Science of Missouri, Inc. v. Imagine Schools, Inc. (2014). http://docs.justia.com/cases/federal/district‐courts/missouri/mowdce/4:2013cv00645/110158/95

• Ohio Supreme Court justices deliver blistering attack on charter schools, White Hat Management.(2015). http://www.ohio.com/news/break‐news/ohio‐supreme‐court‐justices‐deliver‐blistering‐attack‐oncharter‐schools‐ white‐hat‐management‐1.624356

• Crouch, E. (2011). Imagine Schools’ real estate deals fuel company growth. St. Louis Post Dispatch http://www.stltoday.com/news/local/education/imagine‐schools‐real‐estate‐deals‐fuel‐company‐growth/article_dbf9b959‐0c73‐586c‐97e7‐6fca3a729b39.html

• UNO’s secret spending spree (2016) http://chicago.suntimes.com/news/uno‐united‐neighborhood‐organization‐charter‐schools‐chicago‐spending‐revealed‐juan‐rangel/

• For more on National Heritage Academies and Charter Schools USA see: – Kelley III, T. A. (2014). North Carolina Charter Schools’(Non‐) Compliance with State and

Federal Nonprofit Law. NCL Rev., 93, 1757 (p. 1813).

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Public Spending, Private Gain?

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Financial Management Practices

• “Finding” $ in human resource intensive industries– Skimming/transferring ‘overhead’ expenses– Cutting personnel expenses

• Employing expensive staff (turnover as a feature, not a “bug”)

– Avoiding “higher cost” populations• Those covered by fed statutory obligations

– Taxing/recapturing employee wages

• Where those resources go…– Capital acquisition

• Use of public resources through private entities for high cost debt financing of capital (to be owned by private entity)

• Some (many?) management companies operate their own real estate arm

– Other self‐dealing • Lease arrangements (related to capital acquisition)• Contracted services

– Curriculum, Staff D, Consulting with “related parties”

• Company store

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Revenue Enhancement Examples

• Ceasar, S. (2014). Charter schools break law by making parents volunteer, report says. Los Angeles Times. http://www.latimes.com/local/lanow/la‐me‐ln‐charter‐schools‐volunteer‐20141120‐story.html

• Lee, T. (2013). Chicago charter schools rake in thousands in disciplinary fees. MSNBC. http://www.msnbc.com/melissa‐harris‐perry/chicago‐charter‐schools‐rake‐thousands

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KIPP “enhances” revenue, but then gets smaller share into instruction (>Admin)

Harmony sacrifices teacher wages for high admin and very high facilities expenses.

Revenue/Spending Variation by Operator Type: Texas

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Graduate School of EducationCompensation Differences by Operator Type: Texas

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Schools operating w/large shares of Turkish labor compress overall staffing costs by

paying very low/flat wage

CMOs like KIPP tend to pay high wage for longer hours/days, but have

relatively inexperienced teachers


Data Source: salaries modeled using statewide “Fall Staffing Report” data. Salaries estimated as a function of degree level and years of in-state experience, excluding administrative job codes, and using data from 2010 to 2015. Predictions based on teachers holding a bachelors degree in 2015.

$‐

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Predicted Salary (at Constan

t Degree/B

A)

Years of In‐State Experience

Major CMO vs. Gulen Affiliated Charter Teacher Salaries in New Jersey

Major CMO KIPP/TEAM

Major CMO UNCOMMON/NorthStarGulen Bergen Arts & Sciences

Gulen Paterson Arts & Sciences

Gulen Passaic Arts & Sciences

Gulen Central Jersey College Prep

Gulen Paterson Science &Technology

Compensation Differences by Operator Type: New Jersey

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Average NJ charter overhead approx. double that of districts[in many cases, inclusive of exorbitant lease expenses]

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$4,391

$4,426

$4,851

$4,002

$3,266

$4,084

$4,315

$3,003

$3,346

$3,145

$2,954

$2,691

$2,303

$1,993

$2,327

$1,894

$1,698

$1,936

$3,343

$879

$1,523

$1,866

$2,012

$1,587

$1,190

$2,500

$2,888

$2,053

$2,875

$2,364

$1,415

$2,289

$2,459

$665 $3,460

$2,413

Great Oaks Charter School

New

Horizons Comm. C

S

TEAM Academ

y Charter School

Pau

lo Freire CS for Liberty Ed

Gray CS

Maria L. V

arisco‐Rogers CS

Peo

ple's Preparatory Charter…

Merit Prep CS of New

ark

New

ark Ed

ucators Charter…

North Star Acad. C

S of New

ark

Discovery CS

Marion P. Thomas CS

Roseville Community CS

Robert Treat Academ

y CS

University Heigh

ts CS

New

ark Legacy CS

New

ark Prep

NEW

ARK CITY

Administrative & Plant Expenses per Pupil in Newark 2014‐15

Admin 14‐15 Plant 14‐15

[1] Indicator 8. New Jersey Department of Education. Taxpayers Guide to Education Spending. http://www.nj.gov/education/data/[2] Indicator 10. New Jersey Department of Education. Taxpayers Guide to Education Spending. http://www.nj.gov/education/data/[3] Summary File. New Jersey Department of Education. Taxpayers Guide to Education Spending. http://www.nj.gov/education/data/

Net=+$10.6m[$246 pp]

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Using high interest loans & public dollars* to purchase land/buildings

for private** entities (sometimes, from ourselves***)

*Charter school funding intended for school operating expense**Sometimes the left arm buying for the right ***Sometimes, the district as “seller” making sweetheart deal with CMO/EMO as “buyer”

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Often left & right hand of same (closely

related) organization


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$4,300

$1,210 $940

$768 $677 $432 $391

$214 $183 $173 $108 $79 $67 $53

Cumulative Debt (PAR – $Millions) Financed by Rating[Over $50 Million]

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$0$0

$39

$0 $0$0$0$0$0$0$0$0$0$6$0$0$13$8

$0$0$7$9

$46$49

$201

$23$16$11

$0$0$0$11

$0 $0$0$0$5$11

$0$0

$78

$0

$43$36

$76

$97

$61

$144

$41$53$59

$44

$23$36

$24

$0

$57

$36

0

50

100

150

200

250

2015 2020 2025 2030 2035 2040 2045 2050

Amount in M

illions

End Year

Four Largest Charter Revenue Bond Issuers Nationally [by total dollar value]

& Bond Maturity Dates by $$

Colorado Educational and Cultural Fac..

Florida Development Finance Corporati..

Phoenix Industrial Development Author..

Pima County Industrial Development Au..

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The Company Store

“Taxing” employee wages to benefit “related” business endeavors

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Imagine, if you will…

• Rutgers GSE establishes a charter school in NB– Chair of board is RU‐GSE Dean & governing board members include several

faculty

• Charter board agrees to hire only teachers w/bachelors degrees, but requires that they obtain specific RU‐GSE offered master’s degrees within first three years of employment – Offers “cost‐sharing” agreement (subsidized with outside grant/private

contribution), w/teacher obligated to pick up difference.• Cost sharing only available if degree obtained through RUGSE

– Teachers leaving before meeting their contractual obligation (3yrs teaching & Master’s completion) required to pay back GSE (privately subsidized) share to GSE

• For convenience, courses will be taught on site, in the charter school, by recent completers of GSE masters programs who work in the school.

• [peers teaching peers]

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Founders / Leaders

Charter School Graduate SchoolOf Education

Facility

Staffing

New Faculty!

Total Relay GSE compensation (2013) = $276,602

Total Relay GSE compensation (2013) = $160,440

Total Uncommon Schools compensation

(2014) = $223,227

Uncommon Knowledge &

Achievemen

t Inc.

Zearn

Relay GSE & Related Entities

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From Relay web site

From Uncommon Schools faculty handbook

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CMO and Subsidiary School (Acknowledged as Related)

UK&A Formally Related to Relay GSE (Acknowledged)

Uncommon Schools (IRS 990)

North Star Academy (NJ CAFR) Relay GSE(IRS 990)

Uncommon Knowledge & Achievement Inc. (IRS

990)

Zearn LLC (IRS 990)

Board Members

Norman Atkins (Chair) Rick Rieder (Chair) Larry Robbins (Chair) Norman Atkins (CEO) Norman Atkins (Chair)

David Cooper Michael Lytle David Levin (Secretary)[1] Timothy Saintsing (COO, Prior)

Evan Rudall (CEO)

Donald Katz Robert Howitt Arthur Levine (Trustee) Thackston Lundy (COO, Current)

Shalinee Sharma (Secretary)

Charles Harris Gia Rys Julie Mikuta (Trustee) Robert Karr (Treasurer)

Pearl Kane Nicole Albano David Saltzman (Treasurer) David Levin

Robert Karr Paul Bambrick‐Santoyo Dacia Toll (Vice Chair)[2] David Saltzman

Rondo Moses Trisha Scipio‐Derrick Carlos Watson (Trustee) Dirk Ziff

Robert Jain Ravi Bellur Dacia Toll

Brooke Reid Scott Sleyster Larry Robbins

Neal Moszkowski Nkyah Taylor

Employees & Officers

Brett Peiser (CEO) Carolyn Hack (Treasurer) Norman Atkins (President)

Carolyn Hack (CFO/COO) Michael Ambriz (COO) M Yvonne Chao (CFO)

Paul Bambrick‐Santoyo (Managing Director, Newark)

Julie Jackson (Principal) Piper Evans (Director of Finance)

Julie Kennedy (Managing Director) Mike Mann (Head of School) Timothy Saintsing (COO)

Joshua Phillips (Managing Director) James Verrilli (Community Member)

Mayme Hostetter (Dean, Relay NY)

Julie Jackson (Managing Director) Michael Larosa (CIO)

Dana Lehman (Managing Director) Brent Maddin (Provost)

Barbara Martinez (Chief External Officer) James Verrilli (Dean, Relay Newark)

Laura Lee McGovern (Chief of Staff) Robert Underwood (CTO)

Laura Maestas (Chief Talent Officer)

Tara Marlovits (COO Uncommon NYC)

Michael Ambriz (COO North Star Academy)

Overlapping Others with current/past significant presence on Relay web site [see, for example: http://www.relay.edu/programs/leverage‐leadership‐institute‐fellowship‐0/overview] [1] KIPP Co‐founder [2] Founder, Achievement First

Overlapping Staff/Officers

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10 1737

60

103134

153

7189

132

172

231

280

330

$‐

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

0

50

100

150

200

250

300

350

400

450

500

2009 2010 2011 2012 2013 2014 2015

Total Tuition (if Full Paid)

Number of Teachers

Year

Hypothetical Tuition Revenue Generated by “New” (first two years) Teachers with Bachelors Degrees at North Star Academy

Novice Teachers (0 to 1 yrs) Total Teachers Full Annual Tuition x New Teachers7/6/2016 51


Policy Issues/Concerns

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Concerns

• A substantial share of public expenditure intended for the delivery of direct educational services to children is being extracted inadvertently or intentionally for personal or business financial gain, creating substantial inefficiencies;

• Public assets are being unnecessarily transferred to private hands, at public expense, risking the future provision of “public” education;

• Charter school operators are growing highly endogenous, self‐serving private entities built on funds derived from lucrative management fees and rent extraction which further compromise the future provision of “public” education; and

• Current disclosure requirements make it unlikely that any related legal violations, ethical concerns, or merely bad policies and practices are not realized until clever investigative reporting, whistleblowers or litigation brings them to light.

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Efficiency Equity Quality of Life Persistent/ Sustained

Inputs /Processes

1. Duplicative management/ overhead

2. Student Sorting-Need

3. Student Sorting-Geography

4. Resource Allocation

5. Program delivery 6. Transportation

7. Student Sorting-Need/Race/ Ethnicity

8. Program delivery/ access

9. Resource Allocation [cost variation]

10. Discipline policies 11. Legal rights 12. Transportation

time/access

13. Transport time 14. Community

amenities & “Walkability”

Outcomes 1. Short-run (test score) performance

2. Long-term performance

3. Disciplinary action 4. Outcome disparity

Transitional 1. Facilities Use 2. Transportation 3. Capital Assets 4. Debt Management

5. Transportation 6. Capital Assets 7. Debt Management 8. Family/child

disruptions

9. Family/ child disruptions

Evaluation Checklist from forthcoming study

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Beyond comparing charter vs. district test scores

• Performance measures (such as assessment scores and gains) must be considered for the system as a whole, not for some small subset, and should be evaluated both in terms of equity and adequacy;

• Policymakers must evaluate cost and equity implications of student sorting by needs, and how resources, programs and services must be reallocated to ensure equitable access to adequate educational opportunities for all children;

• Systemwide decision making must consider management structures, service delivery and potential for inefficient duplication;

• Policymakers must consider seemingly mundane operations management issues such as logically, spatially distributing enrollments, optimally using facilities space, and optimizing transportation services/networks;

• Policymakers must consider quality of life factors such as transportation time, school/neighborhood walkability, and numbers of schooling disruptions faced by children and families;

• Policymakers must evaluate (and regulate) whether students’, taxpayer and employee rights are protected equitably, by evaluating (and managing) entrants to the market (based on their prior behavior and practices) and practices of those already operating in their space.

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Balancing the Business of Charter Schooling & Public Interests · 2016. 7. 6. · Mosaica...

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