Some things I learned while living with a charter school administrator, Part 2

Some more things I learned while living with a charter school administrator.

Procuring Federal title money and grants is profitable.

That the management company wants and expects every dime from the grants and title money.  It is the administrator’s job to get all the money.  If you do not get it, the company will be less profitable.  That may not be a wise career move.

Justifying title money is hard, it takes creative writing and accounting.

You can allocate and reallocate teacher hours and roles to maximize the amount.  You assign teacher hours to maximize the title money.  You can do this after the fact, even  while sitting in your home watching TV.  An observer might think this is fraudulent. 

That you can pay teachers less than at a public school.  That the teaching market is very weak.
That you can go somewhere warm in the winter for meetings and be dined and wined.  That these expenses , normally not allowed to the school, are paid by the management company.  You can go on a similar excursion in the summer.

That the management company picks the board.

That you can handpick a board and include some parents which can be “easily led around by the nose.”
That you can put your neighbor on the board.

That you can put some parents on the board who do not need to understand anything about finances or board operations.  It is a learning position and the school leaders will feed you what you the information they deem that you need to hear.  It is an ego boost for some.

That lobbying is an important part of the business plan.  That politicians love the idea and the political contributions.

That they have hired their own lobbyist.  A lobbyist can throw a good party.

That marketing is a key element in securing enrollment.  You can spend tens of thousands of dollars on slick TV ads, slick radio ads and the internet.  Your competitors will do the same.   That you can quote a result from 2010, but ignore subsequent results.  That you will never see the state report card mentioned in any marketing materials.

Freedom of choice, even if it is a foolish decision, is a strong marketing point.

Lobbying and marketing expenses ultimately come from the taxpayers of Ohio via the management company.

Some things I learned while living with a charter school administrator, Part 1

My grandfather had a favorite saying.  You are either part of the problem or part of the solution.

My Ex-wife was an administrator for an E-school.  The marriage ended on bad terms. 

Some things I learned while living with a charter school administrator.

That charter schools are called community schools in Ohio.  Many are not located in the community and actually suck significant amount of money from a local community or district with no charter schools.  Community schools has a folksy sounding name, better for marketing.

That ethics are optional.

That there are many ways to game the system to benefit your own interests. 

There is little oversight.

Self-preservation is a powerful force.  Being an administrator is a pretty good gig.

There is an inherent conflict between producing results and producing revenue by increasing  the headcount.  This conflict causes some stress at first but you get over it.  More students mean more dollars.

That E-schools are not for everyone, and probably not for the majority of the students enrolled.

That E-schools are a profitable business.  The schools themselves are “non-profit”.  How it works is that you send most of the money to the management company who set up the school.  That school money gets siphoned to the management company, usually to a local entrepreneur who established the management company or to a large or giant corporation like K-12 Inc. and Pearson Education.  They need to take enough so that the school never will show a profit.  Non-profit status does not apply to the management company.

That you can pay students and parent to take tests by offering them gift cards.  That the schools really would prefer that some students not take the tests.

That despite millions of dollars coming in the door, that you can have a part-time treasurer.  That treasurer can serve many charter schools.  The treasurer does not audit the management company.

If your treasurer gets indicted for malfeasance at another school, you should hire a new one.

The majority of the Ohio E-schools have the same sponsor.

The sponsor takes their fee based on total revenue.  It is very profitable to be a sponsor.   I don’t see much in the way of staff or overhead for these sponsors.

That the management company can make millions for it’s founders.

That the salary information listed on web sites is out of date and inaccurate, too low for administrators.

That you can invest the money earned from one state to expand in another and internationally.  More students mean more dollars.

A For-Profit College Tries The Charter School Market

Not in Ohio, yet.....

Sounds like another company wants to get into the drop out recovery business.

http://www.npr.org/blogs/ed/2014/12/14/369925385/a-for-profit-college-tries-the-charter-school-market

In each city, a charter school called Early Career Academy planned to offer students the chance to earn associate degrees, either in network systems administration or software development, alongside their high school diplomas. Students were offered laptops to work on and ebooks to use. All for free.

"It fits the pattern of big, for-profit companies looking to diversify beyond that Title IV-based revenue model," says Kevin Kinser. Title IV refers to federal student aid such as loans and Pell Grants, which are the primary source of income for most large for-profit colleges.

"As their traditional higher education provider business has declined, they need to find other avenues to make up the revenue lost," he explained. "They also want to avoid the regulatory burden that running a college entails. So you see ITT look to the charter schools. You see Apollo [University of Phoenix] look to invest capital in start-ups. Kaplan has international plans. All of these strike me as strategies to offset the declining prospects of growing enrollment ... and the regulatory and financial problems that they have been facing."

Most recently, in February of this year, ITT became the first for-profit college to be sued by the Consumer Financial Protection Bureau, a federal agency. The complaint says ITT used "aggressive" tactics to market a high-interest private loan to students between July and December 2011 and that as a practice, ITT overcharges students and misrepresents their job prospects.

10th Period: Ohio CREDO study: Charters' Generally Negative Imp...

10th Period: Ohio CREDO study: Charters' Generally Negative Imp...: The quadrennial CREDO study from Stanford has become a sort of gold standard for charter-public school comparisons. They use sophisticated ...

Profitship! Cashing In On Public Schools

CURMUDGUCATION: Charters Make Money. So What? $100 hookers

$100 hookers.... Great analogy.



Too bad most of the Ohio Schools are lacking the results



CURMUDGUCATION: Charters Make Money. So What?: It's a response that comes frequently to the charge that modern charter schools have become all about grabbing large piles of money for ...

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/