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Charter school finances under more scrutiny as they expand with Arne's blessings.

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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:23 PM
Original message
Charter school finances under more scrutiny as they expand with Arne's blessings.
There appears to be just a little more research being done now by some media about how the lack of oversight of some charter schools might lead to poor business practices. Charter schools are privately run but funded by public taxpayer money, so there should be great concern about keeping an eye on them.

Here is one from the New York Times.

More Scrutiny as Charter Schools Look to Expand

Charter school advocates argue that the schools’ freedom from traditional rules enables them to make dramatic improvements, but that same freedom can present some problems: a review of public documents shows that many charter schools have spent money in questionable ways and have experienced significant conflicts of interest. The documents were obtained by New York United Teachers, the state teachers union, and provided to The New York Times, which corroborated the data.


I did not realize that in NY the state comptroller's office is forbidden by court ruling to examine charter schools.

Charters, for example, are not specifically prohibited by state law from hiring their own board members or employees as consultants. While the state comptroller’s office — the government’s fiscal watchdog — can audit public schools, it is barred by a court ruling from examining charter schools.

Before that court ruling was issued last year, the comptroller’s office completed audits of 18 charters around the state. Fourteen had significant financial irregularities, including one school that spent $67,951 on staff trips to the Caribbean, according to officials. “We don’t have enough oversight, and that is clear,” said State Senator Bill Perkins, a Harlem Democrat and charter critic. “I’m not suggesting that this is rampant, but it undermines the integrity of the public’s faith in charters.”


Here are a couple more instances mentioned in the article.

In New York, the Merrick Academy in Queens, which was founded by State Senator Malcolm Smith, has been subpoenaed by federal prosecutors over the possible misuse of school finances to benefit Mr. Smith. Mr. Smith, who is no longer affiliated with the school, has denied wrongdoing.


And Oracle Charter and Family Life Charter have questionable practices while using public money.

The Oracle Charter School in Buffalo, for example, will make more than $5 million in loan payments to a real estate partnership called KPMD to eventually own a building it purchased for $875,000. The interest rate, according to loan documents, is 20 percent. Two years after the transaction was finished, a KPMD partner joined Oracle’s board.


And the Family Life Center:

..."And in the Bronx, the Family Life Charter School pays $400,000 annually to rent classroom space from the Latino Pastoral Action Center, a “Christ-centered holistic ministry” led by the Rev. Raymond Rivera. Rev. Rivera also happens to be the school’s founder.


There must be scrutiny and oversight if public money is being used. Currently in many states there is not.

There is also scrutiny beginning of the salaries of superintendents and other officials at charter schools.

From the Beaumont Enterprise paper, an editorial:

Superintendents' salaries at charter schools need close oversight

There's a school superintendent in Southeast Texas whose salary appears to be too high - and this time we're not talking about Beaumont ISD Superintendent Carrol Thomas.

More than a few Beaumont residents are unhappy with Thomas' compensation of $334,412, which is the highest base pay for the entire state. It's a lot of money, but in some ways it's a bargain compared to the salary received by Paula Richardson, superintendent of the Tekoa Academy of Accelerated Studies in Port Arthur.

For serving as superintendent in that charter school with an enrollment of just 411 students, Richardson is getting $161,120.

Only two superintendents in Jefferson County make more money - Thomas in the BISD and Dr. Johnny Brown in the Port Arthur ISD ($203,582). Yet their districts have 19,309 students and 9,274 students respectively.


Taxpayers still are not really catching on...another example in St. Petersburg, Florida. There has been little outcry over this school which truly surprises me.

Imagine Charter in St. Pete a million in debt. Taxpayers will foot the bill.

An F-rated St. Petersburg charter school stands on the verge of collapse, mired in debt and losing enrollment. And most of those debts — around $1 million in public tax dollars — are owed to the same private company that founded it.

Pinellas County district officials say they're battling with Virginia-based Imagine Schools, the nation's largest commercial charter operator, over the future of the Central Avenue school. The school was $963,572 in deficit last spring, according to auditors. It's paying $881,179 to lease a half-empty building from Imagine's real estate affiliate, plus thousands more for equipment, administration and fees, on income of just $2 million a year.

"It's a death spiral," said district charter supervisor Dot Clark.


I was reading an a post at Open Left today by Chris Bowers.

He points out that PEW did a poll of 1002 Democrats who mostly believe the party should compromise. I am surprised, I guess. But I am not sure that is truly indicative in every area.

We can compromise away our Social Security, compromise away our public school system, compromise away women's rights to make their own medical decision. Then we really are not standing for traditional values.

The fact there is more scrutiny directed toward charter schools now is a glimmer of hope....but it won't matter as long as Arne is in charge and demanding more of them.
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Dinger Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:25 PM
Response to Original message
1. arne HAS To Go!
That is all, thank you. Keep up the good work madfloridian:)
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joeybee12 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:35 PM
Response to Reply #1
5. And take Salazar with him...n/t
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 10:07 PM
Response to Reply #1
11. Oh, I so agree with you about Arne.
I can't believe he is being given free rein with the education system.
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Dinger Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-26-10 07:48 PM
Response to Reply #11
15. Thank You madfloridian.
You honor me.:loveya:
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Fearless Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-26-10 06:32 PM
Response to Reply #1
14. +1
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valerief Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:27 PM
Response to Original message
2. Too bad we couldn't outsource our education to one of the smart, socialized countries.
You know, instead of to Jesus. We outsource everything else.
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Hannah Bell Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:29 PM
Response to Original message
3. k/r
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BrklynLiberal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:34 PM
Response to Original message
4. Like another punch to the stomach every time I read about it..
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 06:51 PM
Response to Reply #4
9. That's how it feels to me.
The stunning way it is happening is making me lose perspective and hope. I taught over 30 years, was so proud of what I did. Now teachers in public schools are denied that pride. Our own party is trying to make them feel shame.

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Starry Messenger Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:37 PM
Response to Original message
6. k & r
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foxfeet Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 02:41 PM
Response to Original message
7. K&R
:kick:
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 04:45 PM
Response to Original message
8. $5 million in loan payments for an $875,000 dollar building.
"The Oracle Charter School in Buffalo, for example, will make more than $5 million in loan payments to a real estate partnership called KPMD to eventually own a building it purchased for $875,000. The interest rate, according to loan documents, is 20 percent. Two years after the transaction was finished, a KPMD partner joined Oracle’s board."

There has to be a better way.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-25-10 08:09 PM
Response to Original message
10. The court ruling is a stunner....this is taxpayer money not being scrutinized.
The ruling... the NYT link:

"But charter schools have at times resisted tougher monitoring. In 2007, a group of charter schools and advocates sued the comptroller’s office, challenging its right to audit the finances and academic performance of such schools. Critics said the comptroller’s office had no expertise to assess academics.

Last year, the Court of Appeals, the state’s highest court, ruled that charter schools were in effect independent contractors and beyond the comptroller’s reach."


Independent contractors using our public taxpayer money.

We are far too easily accepting this.
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cjbgreen Donating Member (175 posts) Send PM | Profile | Ignore Wed May-26-10 12:45 PM
Response to Original message
12. Why Arne pursues this agenda?
As an Obama supporter who is shocked by the "leadership" of Arne Duncan I ask why? I think that education is a trade off to big corporate businesses (Bill Gates, Eli Broad, Wall-Mart). Who in the Obama administration made the decision I don't know. But I think the big money these groups will contribute to Democrats is the deciding factor in eliminating public education. Tragic!
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laughingliberal Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-26-10 01:34 PM
Response to Original message
13. Handing over the public money without oversight is unacceptable.
WTF? Have we elevated Charter schools to the level of the Fed?
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D-Lee Donating Member (457 posts) Send PM | Profile | Ignore Wed May-26-10 09:01 PM
Response to Original message
16. Madfloridian, love your posts -- (sob) too late to rec!
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Dirigo Donating Member (157 posts) Send PM | Profile | Ignore Thu May-27-10 09:32 PM
Response to Reply #16
17. Charter Schools Are A Farce
Edited on Thu May-27-10 09:36 PM by Dirigo
It is insane to fund these foolish charter schools at a time when our public schools are in desperate need of on-going repairs and maintenance. Public education policy dictates we should be protecting our public schools. It is less expensive and far better to maintain schools throughout the nations school districts than to siphon precious tax dollars to fund these bogus "make work and jobs schemes" for the well connected. Enough already! Lets get serious about good public education policy sans the bloodsuckers putting our children at risk in substandard, insecure locations, and expect them to teach and protect students. The idiot who dreamed up this bogus scheme needs to be horse whipped. I am disappointed that anyone who calls themselves progressive would excise a choice few from the public school thereby diminishing and driving costs up for the institutional schools is something worthwhile. Horsepuckies! I am hoping all Charter Schools will be closed in the public interest. Let the qualified teachers in Charter Schools if there are any find work in an honest environment serving the public need in the public school system.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-27-10 09:49 PM
Response to Reply #17
19. Good post.
I am finding it all so hard to take after taking pride in my teaching for over 30 years.

Now it seems our own party is complicit in trying to make teachers feel shamed.

It just infuriates me.
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defendandprotect Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-27-10 09:38 PM
Response to Original message
18. Late K&R -- Arne and Charter schools . .. another gift from Obama . .. !!! Why???
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LWolf Donating Member (1000+ posts) Send PM | Profile | Ignore Fri May-28-10 04:30 PM
Response to Original message
20. We have a situation with charter schools regionally
that involves bankruptcy, eviction for non-payment of rent, and controversy over who has jurisdiction over student records, including those who are supposed to be graduating.

I think the records situation was resolved this week, after some public outrage.

We also have a charter school within my district generating controversy because they are siphoning off more students than the charter was originally granted in a time of catastrophic budget cuts.
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