Thursday, June 30, 2011

Charter school fraud in Philly

http://www.npr.org/2011/06/27/137444337/what-happens-when-charter-schools-fail

Maybe some social services aren't designed for market competition and entrepreneurship, especially when they're funded by taxpayers with little public oversight, and run by former business sharks with minimal educational experience. I think charter schools can be a good innovation in certain circumstances, and of course there are plenty of problems with stagnant public schools, educational bureaucracies, and teacher unions.

But look at their logic: public schools are underperforming, so let's establish charter schools to pressure them to shape up, and act as a teaching lab to develop better methods. But charters are risky "nonprofit" ventures that are trying to win grants and other funding, so why would they share their successful practices with rivals? Like a new entrant into an industry, they are fighting like hell to survive and eventually dethrone the top dog. They are not there to make friends. And the more successful a charter is, the more funding it gets (which means nearby public schools are getting less, and per-pupil K-12 funding in the US is already criminally low), so that only increases the likelihood that the public schools will underperform. And if word gets out that the charter is good, parents of talented students may pluck them out of the public system in favor of the charters, creating a selection bias that further brain drains public schools. So it's pretty much a zero-sum game; there is no way charters can make publics better. But that's probably the point, and it's not a level playing field. Charter teachers are non-union (they are paid a bit more but forced to work longer hours, so their per-hour compensation is actually worse) and not fettered with as many rules, so that's almost like Bar-roid Bonds vs. me in the Home Run Derby. Plus it creates a rift and culture clash among educators - already one of the least respected professions in the US. Education needs to be collaborative, open, and trusting to be successful, and charters are an impediment to that (some may say unions are too, and they have a point).

Like we've seen in other parts of gov't, when free-market conservatives want to do away with some public program, they demonize and de-fund it. They say the program is a failure, and they create the negative conditions to fulfill that prophecy, instead of taking measures to prevent it. Maybe all this is part of the larger movement to destroy employee unions wherever they exist. Some charters have changed lives and put underserved students on a much better life path, but overall charters are about on par with publics and in some cases lagging behind. Just imagine how much better the public schools could have done with the additional resources wasted on sub-par or corrupt charters. As we all know in business and in research, most attempts end in failure. So it's not like every charter is destined to be a gem, especially when it's run by corrupt people.

In the greater Philly area, 19 of 74 charter schools are under federal investigation for improprieties. And that percentage may be fairly uniform across the nation (CA, OH, and TX have also launched recent investigations). Charters are designed to be free of regulation (but from our experiences with Wall Street and energy, we know how that goes), and there are 7 full-time employees tasked with monitoring ALL of the Philly charters (soon to be 4 due to city budget cuts, of course). Most of the problems are abuse of funds, COI, and nepotism. Like corporations, CEOs hire friendly boards who rubber-stamp ludicrous pay raises (as much as $1M for some execs) and hirings of unqualified buddies. One CEO set up his school in buildings he owned, making the charter pay inflated rent directly to him. Another director also owned the school's vending machines. His team would buy discount junk food and soda and hike up the prices to the students. Well, maybe the corruption isn't actually hurting anyone? In another school, looting by the leaders caused the special ed program to be underfunded. When parents complained to the trustees, they basically told them to piss off. 

Profits are getting in the way of education. I hope people will wake up and recognize the risk of charters as being just another pro-business scheme to undermine the public sector and embezzle precious scarce resources. Maybe charters can work and make education better, but if so, then we shouldn't compromise that potential by tolerating bad charters and improper conduct.

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