Top ten List by Denis Smith

A nice list from Denis Smith. 

In the hope (snicker) of getting some action from our legislators in September, our citizen panel decided to channel the spirit of David Letterman and compile a list of the Top 10 Needed Charter School Reforms. Here are the results of our deliberative body.

#10: Cut legal exemptions
Charter schools are exempt from 150 sections of the Ohio Revised Code.
The legislature needs to eliminate at least half of these exemptions by the end of the current session. After all, if proponents like to call them “publiccharter schools,” they should be more aligned to our system of public education and therefore not need so many exemptions from laws which public schools must comply with due to their public nature. If the charter industry objects, we should not let them have it both ways. Charter proponents should stop using the term public charter schools due to their resistance to increased regulation and fewer legal exemptions. In turn, the public should start using the term corporate charter schools to better define their nature.

Agree, it is taxpayer money.  We should be able to see where it goes.

#9: Management companies subject to full review by state auditor
Here’s another classic example of the charter industry having it both ways. If you receive public funds, the public has a right to see how their money is spent or misspent. Add to that the requirement that any furniture, equipment, and real estate purchased with public funds is public property, subject to liquidation at auction upon closure of the school, with the proceeds returned to the state treasury. Recall that White Hat Management took the position that such assets were corporate and not public property. JobsOhio is another example of the principle of having it both ways. Public money and the assets purchased with such funds should not be convertible to private assets through a management arrangement.

Agree, the system is set up to guarantee that the school will not show a profit.  It is pretty easy for the management company to suck out the taxpayer money and spend it however they want including high salaries for the management companies.

#8: Eliminate Non-Profit Sponsors
The charter industry is replete with example after example of someone or some entity having it both ways. Non-Profit charter school sponsors follow that tradition. They accept public funds for serving as charter school sponsors or authorizers but tell individuals and organizations seeking information that as non-profits, they are exempt from public records requests. As with Nos. 10 and 9, if a non-profit organization accepts public funds, it should be responsive to such requests and the same scrutiny that other types of sponsors (school district, educational service center, vocational school district, university) accept as a player in the charter industry. The public is tired of the charter world having it both ways.

3% is a pretty nice cut from these multimillion dollar budgets the taxpayers are funding.  More than a potential conflict of interest in this arrangement.  Taxpayers would not accept a 3% fee to their local school boards.

#7: Celebrity endorsements and cap on advertising
This charter school reform measure is tied in with Nos. 9 and 8. Public funds should not be used to pay for endorsements to promote charter schools. Worse yet, we’ll probably never find out how much ECOT endorser Jack Hanna or anyone else might have been paid because the management companies maintain they are private entities and resist audits and requests for financial information from state regulators.

Agree and you will never see the state report cards mentioned in that advertising.

#6: Accuracy in advertising
If a rose is a rose, a charter school should be called just that. Ohio is the only one of forty states authorizing charter schools that uses the term community school rather than charter. That term by itself – used in the original legislation – is purposefully misleading. My recent article on charter names pointed out that only a handful have the word charter or community school in their official title. The same is true for television ads, where the name charter isn’t used. As the school year begins and you see and hear ads for charters, listen carefully for what you might not hear in the commercial.
The local public school is a community school and a charter is a charter.

And you will never hear about their test results.  Only some private polls where nine out of ten parents are satisfied.

#5: School treasurers. There is a continuing concern about the ability of charter school treasurers to adequately perform their duties when many serve multiple schools. One former charter treasurer , sentenced to two years in prison, was said to have served as the chief financial officer of at least nine charter schools at the same time, though other treasurers have served more than that number in the past. New legislation is needed to cap the total number of schools a treasurer can serve simultaneously.

Agree, see what happened to the treasurer of Ohio Connections Academy and Cincinnati College Preparatory Academy,  How many other schools did Stephanie Millard serve?

#4: Governance reform. With more than a billion dollars in state education funds being diverted to charter schools, it’s time to require greater transparency and accountability for the use of scarce public dollars, and governance reform is one place to start. In a previous article, I wrote this statement: “The public school district that has the largest number of its resident students enrolled should be entitled to a seat on the board. Since state funds are deducted from the foundation payments for the district’s resident students and sent to the charter school where the student is enrolled, the district is entitled to monitor the performance and operation of the school, particularly when many of these students return to the district at some point.” In addition, lawmakers should require authorizer and parent representatives to be members of the board, with the parent seat filled by an individual selected at an annual meeting of the school parents. An additional part of governance reform would be to require all board members to be registered with the Office of Secretary of State, as is the case with other public school board members.

Agree, the appointment of rubber stamps. friends and collegues to the board is not in the best interests of the students. This is set up to benefit the management companies and not the students.
Raymond Lambert School Leader of the Year by the Ohio Alliance for Public Charter Schools (OAPCS) once had this to say about boards. “I wonder why people sit on Boards? Is it a cheap self esteem boost?” “ I often think the many Boards I have seen are lead around by the nose anyway.”
#3: Administrative qualifications. Incredibly, there are no minimum educational or professional licensure requirements for charter school administrators. This situation needs to be addressed immediately if all charter reform efforts are to be viewed as substantive. After all, school is about education.

Agree, and I would add that promotion and leadership should not be tied with who you are sleeping with.

#2: Citizenship requirement. In traditional school districts, board members have to be qualified voters – citizens – in order to serve as overseers of public funds. News reports in the last year have focused on one charter school chain where some of the board members and administrators may not be American citizens. If charter proponents want to emphasize the word public in the term public charter school, they should also agree that requiring American citizenship for board members is a no-brainer for the charter industry.

Agree

And the Number One Needed Charter School Reform –
Get the money out!
The influence of charter moguls David Brennan an William Lager on the Ohio Republican party are well-known. Money talks, and in charter world, money speaks loudly. Public funds – the profits gained from running privately operated schools with public money – should not be allowed to unduly influence legislators. The fact that HB 2 stalled at the very time that another $91,726 arrived to replenish state Republican campaign coffers is no coincidence.
If Mark Twain was correct when he observed that “No man’s life, liberty, or property are safe while the legislature is in session,” the absence of lawmakers at Broad and High compounds the inaction on charter reform. But if at least two of these Top 10 Needed Charter School Reforms wound up being included in this year’s reform package, that would be a small victory for the life, liberty and property of Ohioans.

Follow the money, ignore the results

Postscript: Treasurer Cincinnati College Prepatory Academy

A follow up on the aftermath of  of the scandal at Cincinnati College Prepatory Academy.  Stephanie Millard, the treasurer of that school and of Ohio Connections Academy has plead guilty to two counts of unauthorized use of property.  Two years probation.  Not sure what other schools she served as treasurer, but I suspect that many charter schools were looking for a part-time accountant to bless their dealings.  I do know that this indictment and conviction did generate a taxpayer paid audit of Cincinnati College Prepatory Academy and Ohio Connections Academy and perhaps others.  Both audits found issues.

This is why reform is needed as to the finances of charter schools and their for profit management companies.  The loosie goosie fiefdoms paid by the taxpayers, with unelected weak school boards, are a tempting target for abuse.

From the court records:

SENTENCED COUNT 4: UNAUTHORIZED USE OF PROPERTY CONFINEMENT: 180 DAYS, SUSPENDED 180 DAYS HAMILTON COUNTY JUSTICE CENTER PROBATION: 2 YRS

SENTENCED COUNT 16: UNAUTHORIZED USE OF PROPERTY CONFINEMENT: 180 DAYS, SUSPENDED 180 DAYS HAMILTON COUNTY JUSTICE CENTER PROBATION: 2 YRS

A personal fiefdom that ended badly.

Five years probation, repayment of $75,000 and four months in lockdown.  Fair? Probably.  The loss of her license will keep her out this business.  The treasurer has also apparently pled guilty.

Another hand picked school board,not doing their job.

"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."

Hamm founded the school in 1999 and worked to get $7 million in state and federal money per year for the charter school. Charter schools are independently operated public schools that can receive state and federal public money to operate.

Much of that money was used to educate the students, but hundreds of thousands of it was spent by Hamm taking 22 taxpayer-funded trips and attending concerts, often with her friends and co-workers, also paid for with tax dollars. Hamm "treated the CCPA treasury as a personal slush fund in order to enhance her personal lifestyle," Assistant Prosecutor Bill Anderson said.

While her intentions initially may have been benevolent, Anderson said, Hamm created the school and made sure everyone knew she was going to run it as she wanted. "Miss Hamm came down with a case of 'founder-itis,' " Anderson said. 

"Miss Hamm ruled CCPA with an iron fist," he said. "She founded the school. She ran the school, and she was going to do whatever the hell she wanted with this money."

Another hand picked board,not doing their job.  A comment from the board.  Too little, too late.

"Gore admitted the CCPA board wasn't as diligent as it should have been in monitoring Hamm's spending. "The school has lost in excess of half a million dollars," he said."

In exchange for Hamm's plea, prosecutors dropped 23 other charges against her. She will report Jan. 7 to West to begin serving her 120-day time behind bars.

Stephanie Millard also has agreed to plead guilty in the case, court documents note.

http://www.cincinnati.com/story/news/2014/11/24/lisa-hamm-convicted-charter-school-crimes/19483309/

A .375 GPA

Some insights from a recent auditor’s report.  I think  I am reading this correctly. 

Imagine Schools Inc. has been justifiably  criticized for paying a subsidiary more money in rent than it does for its teaching staff and producing poor results.  The national benchmark for rent is 15% according to an article in the Columbus Dispatch. 

A recent audit of Ohio Connections Academy shows that teaching and administration total $5,268,575.  Overhead totals $6,003,793.   113% more than the money for teaching salary and benefits.  Overhead is undefined.  This money flows out of the state to a Maryland management company, Connections Learning,  who does with it as they wish.  There is little in bricks and mortar expense.  Compare that to 15% rent benchmark.

The management company can recycle the same software year after year.  They can sell essentially the same software to multiple states.  The transfer and accounting of the overhead expense insures that the non-profit altruistic E-school never will show a profit.  Useful to show why they cannot pay teachers more or to elicit sympathy from parents or politicians.  They are the underdog. 

Yet it is a very profitable business for the management company. Connections Learning, K-12 and others are aggressively expanding in every state possible.  Underdog status also justifies the need for more money and more students.  See page 20 on the attached link. 

What are the latest state report card results for this E-school?  1 C, 2 D’s and 5 F’s.  A .375 GPA.  It would be nice if they could move the decimal point.

To help manage the multimillion dollar budget they hired a part-time treasurer  who is under indictment for her role as treasurer with Cincinnati College Preparatory Academy.  I guess there is no need for an on-site full time treasurer. 

The audit also shows unresolved title money issues totaling $668,642 (see page 46).  When will this be resolved?  To paraphrase a politician, pretty soon we are talking real money.  At best it shows that they are sloppy with their record keeping.  At worst is suggests that they are playing with the allocations to put more of scarce title money in their pockets at the expense of taxpayers. 

https://ohioauditor.gov/auditsearch/Reports/2013/Ohio_Connections_Academy_11-Hamilton.pdf

There is an obvious problem.  Look at the proliferation of E-schools in Ohio.  Who benefits?

What is needed?  Transparency, strong boards (which are not lead around by the nose by the management company), and oversight.  These characteristics exist in the vast majority of our public school districts.  Oh by the way, results  would be good too.

Another Charter Administrator Convicted. A personal Fiefdom

A personal fiefdom.  It is good to be queen until it isn't.

Where was the oversight, a weak handpicked board and part time treasurer to rubber stamp.

I suspect that getting involved in these charter schools was a very bad career move.  Leaves  Stephanie Millard in a pretty bad position.  Not sure how many other charters she was acting treasurer for but I suspect any and know for sure that one of them was Ohio Connections Academy.

http://www.cincinnati.com/story/news/politics/2014/10/17/former-charter-school-leader-gets-plea-deal/17438269/

A former superintendent accused of using her charter school as her "personal feifdom" is now a convicted felon, marking the latest blemish for charter schools in this region and statewide.

Lisa Hamm, who ran the Cincinnati College Preparatory Academy, the region's largest charter school, cut a deal with prosecutors last week. She pleaded guilty Oct. 8 to three of 26 felony counts against her. The remaining charges, including multiple counts of theft in office and tampering with evidence, were dismissed.

Hamm, who court documents claim ran the school as her "personal fiefdom," could get up to 18 months in prison on the charges of unauthorized use of property. Probation is also an option. She agreed to repay $75,000 to the school. She's scheduled to be sentenced Nov. 24 by Hamilton County Common Pleas Judge John West.

Hamm of Fairfield, and former treasurer Stephanie Millard, of Walnut Hills, were accused of stealing or misusing $148,000 in taxpayer money that should have gone to educating the 950 students at Cincinnati College Preparatory Academy. The court documents allege Hamm instead used the money to pay for extravagant trips, plays, concerts, luggage, spa visits, jewelry veterinary care and other personal uses.

The charges in the Oct. 8 plea agreement involved a trip to San Diego that ended up costing more than $20,000, and trips to Orlando and to see Oprah Winfrey. Hamm had said the trips were school-related.

Charter schools are public schools that are independently run. There are about three dozen in Southwest Ohio. Some are high-performing and well-run. But as a group they're often criticized for lax accountability and mediocre academics. Several local charter schools have closed over the years due to financial problems and academic issues. Some cases resulted in criminal charges.

The state has been cracking down on charter schools via stringent audits and increased scrutiny of their sponsoring organizations. Charter school accountability has become a political issue, as Democrats accuse Republican leadership of not doing enough to improve it.

In the most recent example the Concept chain of charter schools, which includes the Horizon Science Academy in Bond Hill, came under investigation by the FBI and the Ohio Department of Education after a string of allegations including improper use of technology money and testing irregularities.

By the numbers

Cui Bono (who profits)

Sad but true...

$84 million that the state auditor has uncovered.  Call me a skeptic but this is probably just a portion of the money that is missappropriated.  There are some clever folks (and some that are not) out there.  "Figures do not lie but liers figure."

Charter school treasurer Carl Shye, who worked with schools here and across the state, agreed to repay much of the $800,000 in findings against him when he pleaded guilty last year to embezzlement in federal court. Area charter school CEO William Peterson agreed to pay $275,000 of the $857,963 in findings against him when he pleaded guilty this month in Cuyahoga County court to unlawful interest in a public contract.

Officials with the Auditor of State’s office said they are working together to do better.

“Of course we want to see as much as can be collected recovered,” said Carrie Bartunek, spokeswoman for the state auditor’s office.

Among the findings issued in 2013:

Richard Allen Academy
Issued: Nov. 6 and Feb. 28
Finding amount: $2.2 million
The most recent audits of the chain of charter schools with locations in Dayton and Hamilton have brought the total amount of findings against the group to $2.2 million. The schools are challenging the findings in court, arguing the state auditor is misreading the school’s contract with its management company, which the audits say was over-paid.

General Chappie James Leadership Academy
Released: Aug. 29
Finding amount: $4,335
A finding for recovery was issued for $4,335 against school founder Kecia Williams and Tracy Jarvis for undocumented debit card purchases.

Cincinnati College and Preparatory Academy
Release date: June 18
Finding amount: $520,000
Professional football season tickets, trips to the theater, travel expenses and cocktails are just a few of the nearly $520,000 in items for which taxpayers picked up the tab, according to the special audit of the Cincinnati College Preparatory Academy (CCPA). The findings in this audit led to the indictments of former Superintendent Lisa Hamm and former Treasurer Stephanie Millard.

Cleveland Academy of Scholarship Technology and Leadership Enterprise
Release date: April 23
Finding amount: $1.3 million
Employees’ allegedly illegal relationships with vendors and shoddy bookkeeping led to more than $1.3 million in findings for recovery issued in the special audit of the Cleveland Academy of Scholarship, Technology, and Leadership Enterprise (CASTLE). The school was managed by William Peterson of Dayton, who pleaded guilty last week to having in unlawful interest in a public contract.

By the numbers

• Total amount of findings issued since 2001: $84,568,474
• Amount uncollected: $70,669,366
• Amount uncollectible but to statute of limitations: $32,059,920
• Amount ‘virtually uncollectible’ owed by charter schools: $24,733,164.51
• Amount actively being collected by Ohio Attorney General: $10,380,740.02

Source: Ohio Auditor of State, Ohio Attorney General

Charter School Treasurer

This is the same treasurer that is/was used by Ohio Connections Academy.  I wonder how many other charter schools she served as the acting treasurer.

Trial is coming up soon.

CINCINNATI, OH (FOX19) -

A warrant that was briefly issued for the two women who were indicted for stealing from an Over-the-Rhine school has been recalled.

Lisa Hamm and Stephanie Millard are both facing 26 counts of theft in office, tampering with records, tampering with evidence and unauthorized use of property for taking property from the Ohio Department of Education and/or the Cincinnati College Preparatory Academy.

The indictment comes after an investigation by the state auditor's office.

The pair were scheduled to appear in Hamilton County court on Friday morning. Neither showed up so the judge issued a warrant for their arrests.

Attorney Mike Allen tells FOX19 that his clients didn't receive any notice that they were due in court.

The defense and prosecution came to an agreement to withdraw the warrant and their case has been moved to Friday, April 22.

According to the indictment that was filed in Hamilton County, the incidents took place from October 2006 until February of this year. Hamm is accused of taking more than 20 trips with staff and family members, some for training purposes but most for "best practice visits," and spending way over the allotted fund amounts approved by the board. Millard, the school's contracted treasurer, paid each month's credit card bills without the knowledge of board members.

The alleged misspent money totals more than $148,000.

Court documents state that among Hamm's trips was a $20,000, 10-day tour through California which covered expenses such as a rental car with a hired drivers, expensive meals and hotel stays above and beyond what was required for her training in San Diego. On other occasion, Hamm was supposed to make visits to Chicago charter schools but attended a Tina Turner concert instead. Hamm also coordinated a trip to Boston to see Oprah Winfrey and took a sight seeing tour of Europe when the purpose of her trip was to fulfill residency requirements for her doctorate program.

According to the school's website, Hamm is the superintendent, founder and developer of the school, which opened in 1999. The school has an enrollment of 700 students in grades K-12.

Hamm has been suspended without pay.

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