Thursday, April 10, 2014

Profit model for Connections Academy


"a representative of Connections explained that its services were available at three price points per student:
Option A: $7,500, a student-teacher ratio of 35-40 to 1, and an average teacher salary of $45,000.
Option B: $6,500, a student-teacher ratio of 50 to 1, with less experienced teachers paid $40,000.
Option C: $4,800 and a student-teacher ratio of 60 to 1, as well as a narrower curriculum.
Despite lower operating costs, the online companies collect nearly as much taxpayer money in some states as brick-and-mortar charter schools. In Pennsylvania, about 30,000 students are enrolled in online schools at an average cost of about $10,000 per student. The state auditor general, Jack Wagner, said that is double or more what it costs the companies to educate those children online. "

http://www.nytimes.com/2011/12/13/education/online-schools-score-better-on-wall-street-than-in-classrooms.html?pagewanted=all&_r=0

Based on the current report card, it looks like Ohio is paying for Option A but getting Option C and the commensurate results from Ohio Connections Academy.

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