General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNew Report: Charter Fraud And Waste Worse Than We Thought
New Report: Charter Fraud And Waste Worse Than We Thought
https://www.forbes.com/sites/petergreene/2019/12/10/new-report-charter-fraud-and-waste-worse-than-we-thought/
...
For-profit charters have never been allowed to receive monies from this grant program, but plenty of for-profit charter management companies have had their schools apply successfully. Its a reminder that for profit and non-profit are, when it comes to charter schools, a distinction without a difference. Hot Stuff Podunk Academy may well be a non-profit school, but if it is wholly operated by Hot Stuff Academies Charter management Company, a for profit company that handles the operation of the charter, the academy is still generating profits.
...
The report also provides several examples of how a non-profit charter is simply a pass through for a for profit corporation. For example, the White Hat Management company was an Ohio-based for profit charter management organization that operated sixteen Life Skills charter schools in five different states. Some of those charters paid 97% of their income to White Hat, which also operated a real estate company that leased buildings to schools. Thirteen of the Life Skills charters have ceased operations.
The report also drills down in two charter-heavy (Arizona and Ohio) to see why charters fail. In both states, enrollment was the primary cause (despite the fabled charter waiting list we often hear about) followed by mismanagement/fraud, then financial issues and academic concerns. The study also found a surprising number of charters that closed because the operator simply abandoned them. Stories also illustrate the shock and surprise that occurs when charters simply and suddenly close up shop mid year.
Among the reports conclusion is this:
We have concluded that the practice of allowing unauthorized schools to receive funds, which has been in effect since 2001, has become a magnet for grifters, consultants and charter entrepreneurs who see an easy way to cash in.
Wounded Bear
(58,605 posts)Who could have predicted that?
appalachiablue
(41,105 posts)malaise
(268,724 posts)looting funds that are provided for education. That is the essence of privatization in this asinine neo-liberal model. Destroy everything associated with the social good - the only good is personal greed
Roland99
(53,342 posts)Faux pas
(14,645 posts)stopdiggin
(11,254 posts)have generally revolved around accessibility, quality and accountability issues. So, yes .. the outright graft and corruption has not been as well covered as it needs to be. If this is a common denominator in the charter world why isn't it playing all over our city councils and statehouses? Teacher's unions?
Hestia
(3,818 posts)then have a one person school board take over the school district.