Wednesday, July 23, 2014

Florida charters and the not-so-hidden costs of creative distruction

We've been spending a lot of time on the shady characters who were uncovered by what had damned well better be an award winning series by the Sun Sentinel. We haven't spent enough on the damage they do.

As we've discussed before, the underlying assumption behind Florida's approach to charter schools is that the combination of lots of ideas, minimal regulation and unchecked creative destruction will produce transformative innovation. [All quotes from the Sun Sentinel story by Karen Yi and Amy Shipley]
State law requires local school districts to approve or deny new charters based solely on applications that outline their plans in areas including instruction, mission and budget. The statutes don’t address background checks on charter applicants. Because of the lack of guidelines, school officials in South Florida say, they do not conduct criminal screenings or examine candidates’ financial or educational pasts.

That means individuals with a history of failed schools, shaky personal finances or no experience running schools can open or operate charters.

“The law doesn’t limit who can open a charter school. If they can write a good application … it’s supposed to stand alone,” said Jim Pegg, director of the charter schools department for the Palm Beach County school district. “You’re approving an idea.”
...
Charter-school advocates say the complexity of the application, which can run more than 400 pages, weeds out frivolous candidates. But school officials in Broward and Palm Beach counties told the Sun Sentinel some applicants simply cut and paste from previously approved applications available online.
There are a number of issues with this approach. There's the problem of adverse selection -- the lack of a background check makes the process more attractive to people who couldn't pass a background check and those people tend to crowd out better applicants. There's the misalignment of incentives --  even a failed school can produce a decent pay-off. And there's the high cost of failure borne almost entirely by taxpayers, teachers, parents and children.
Every time a charter school closes, dozens of children are displaced — in some instances, mid-month. Many return to their neighborhood schools where some struggle to catch up because their charters did not provide required testing, instruction in basic subjects or adequate services for those with special needs.

“This isn’t just a regular business. This isn’t a restaurant that you just open up, you serve your food, people don’t like it, you close it and move on,” said Krystal Castellano, a former teacher at the now-closed Next Generation charter school. “This is education; this is students getting left in the middle of the year without a school to go to.”

Next Generation, an elementary school in Lauderdale Lakes, sometimes had no toilet paper, soap or paper towels in the student bathrooms during the 2012-13 school year, teachers said. Students sometimes ate hours after their designated lunchtimes, often from fast-food restaurants. A parent complained of a revolving door of teachers.

“Things were horrible,” said Cynthia Hazlewood, who helped build the school’s curriculum and has worked at other charter schools. “One day FPL came in and shut the lights off.”

The school shuttered weeks before the last day of school.
To be hammer blunt here, this reveals a hugely hypocritical contradiction that runs through the reform movement. The justification for eliminating even the most basic job protections for teacher is that keeping an incompetent teacher harms a student. There are real questions about whether eliminating tenure improves overall teacher quality, but putting those aside, the damage done by having a bottom-of-the-pool teacher is a fraction of that done by this kind of creative destruction. From the lost instruction time to the emotional and social toll of having their lives disrupted to the disillusionment of learning the truth about that wonderful new school, this is a horrible price for kids to pay. No doubt, it was made worse by by the Florida state government's incompetence and endemic corruption in the education sector, but a large part of this suffering is intrinsic to the try-fail-try approach. Even when it works as intended, some kids have to pay a high price so that the system can be healthy.

Of course, the Florida system didn't work as intended; it was a train wreck and here are a few of the casualties.
As students showed up for class, parts of the building remained under construction. Classrooms had not undergone required fire inspections and sometimes lacked air conditioning, district documents show. The iGeneration charters bused their high schoolers on unauthorized daily field trips because they didn’t have enough seats at the school, records show.

On one trip, they lost a student. Though she was found four hours later, district officials immediately shut down the schools.

Because of the quick shut-down, the iGeneration charter schools were overpaid nearly $200,000, according to the Palm Beach County school district. The schools have not returned the money.

The company that founded the iGeneration charter schools, InterVisual Education, blamed the schools’ demise on the management company it hired to operate the schools months before they closed.

“What was supposed to get done, never got done,” said Stephanie Velez, manager of operations for InterVisual Technology, the parent company of InterVisual Education. “There was nothing we could do at that point.”

InterVisual founded and managed another school in Immokalee. That school also was shut down by the Collier County school district last December. District officials cited the school for employing uncertified teachers and failing to submit required financial reports, documents show.

InterVisual will open another school this fall in Davie, but company officials have no plans to manage it.

“We’ve had our taste, and we didn’t like it,” Velez said.
...
A former teacher at the Ivy Academies stored her classroom supplies in the trunk of her car. Every morning, she’d wait for a phone call to find out where classes would be held that day.

“I would never know where we [were] going,” said teacher and former middle school dean Kimberly Kyle-Jones. “It was chaotic.”

The two Ivy Academies lasted only seven weeks.

The schools, managed by Trayvon Mitchell of Oakland Park, opened in 2013 at the Signature Grand reception hall in Davie.

Evicted over a bounced check, the schools relocated to a Fort Lauderdale church that did not have enough classrooms.

That’s when the daily field trips began.

On some days, students went to the Miami Seaquarium or local museums. Other days were spent at Holiday Park in Fort Lauderdale.

The schools then moved to a second church a few miles away.
...
A handful of South Florida charter schools that failed in the past five years owe a total of at least $1 million in public education money to local school districts, records show. The actual amount may be much higher. Districts struggle to track spending at troubled schools.

Charter schools, which receive public money in monthly installments based on student enrollment, can be overpaid if they overestimate their expected attendance or shut down abruptly.

State law requires that furniture, computers and unspent money be returned to the districts, but when officials attempt to collect, charter operators sometimes cannot be found.

“We do know there have been a few [charter schools] … where hundreds of thousands of dollars were never spent on kids, and we don’t know where that money went,” said Pegg, who oversees charters in Palm Beach County. “As soon as we close the door on those schools, those people scatter … We can’t find them.”

When a Broward school district auditor and school detective went searching for Mitchell at the Ivy Academies in September 2013, he left through a back door, records show. District officials said they have yet to find him, or to collect the $240,000 in public money the schools received for students they never had.

Tuesday, July 22, 2014

When I say anyone can run a charter school in Florida...

I'm afraid I may be spending too much time on the rogues' gallery of the Florida charter school scandals. It's an entertaining aspect but its importance is primarily as a symptom of flawed assumptions and a badly designed system. These sharp operators are flocking to the state because the incentives that encourage good behavior are misaligned and the checks that prevent bad behavior are missing.

Functional systems don't hire people with resumes like that of Steve Gallon III.

From the Sun-Sentinels exceptional series on Florida's charter schools:
New Jersey authorities banned educator Steve Gallon III from working in their public schools. Five months later, three South Florida charter schools welcomed him.

The struggling schools gave Gallon’s company $500,000 in taxpayer dollars over two years, allowing him to give jobs and double payments to his cronies, a Sun Sentinel investigation found.

Records obtained by the newspaper reveal questionable decisions at the schools as their finances unraveled, providing a rare look into the perils of Florida’s loosely regulated charter-school industry.

Florida has more than 600 charter schools, which are independently operated but funded with tax dollars. Because they face less regulation, charter schools have more freedom to innovate.

State law gives oversight of these schools to individual volunteer governing boards, rather than the district’s school board. But such boards sometimes fail to monitor public money and control the private companies they hire, the Sun Sentinel found.

The governing boards for three charter schools in Broward, Palm Beach and Miami-Dade counties hired Gallon and his company, Tri-Star Leadership, in June 2011.

The boards were undeterred by Gallon’s troubles as a school superintendent in New Jersey, where back-to-back investigations prompted the governor and police to get involved. Gallon had been accused of hiring unqualified friends and then lying about their residences so their children could attend schools outside their district.

In the next 18 months, documents show, the South Florida charter school boards stood by as Gallon:

• Hired two associates who, along with Gallon, had been arrested and banned from working in New Jersey schools. One became principal of the Palm Beach County school at a salary of $80,000 a year; the other was paid $60,000 a year for consulting work.

• Made payroll decisions without prior authorization from the charter schools’ governing boards, drawing rebukes from the schools’ financial consultants.

• Hired a $40,000-a-year consultant who listed her residence as a Georgia home owned by Gallon.

• Launched a business venture with one of the volunteer board members responsible for overseeing Gallon’s work for the charter schools. The venture was later deemed a conflict of interest by Miami-Dade school district investigators.

At least three consultants contracted by the governing boards warned their bosses of inappropriate actions under Gallon, records show. Yet Gallon stayed on as those who complained quit — or were fired.
...
Both traditional public schools and charter schools receive public dollars based on their enrollment, and don’t charge tuition. Administrators at traditional public schools are accountable for every penny spent. But the private companies hired by many charter school governing boards don’t have to open their books.
...

Plainfield, N.J., schools hired him as superintendent in 2008, paying him $198,000 a year to oversee the central New Jersey district of about 7,000 students.

The back-to-back scandals quickly erupted.

Soon after his arrival, Gallon brought on three colleagues from Miami at six-figure salaries. Investigators from the New Jersey Department of Education concluded that two lacked proper state certification and one of those two lacked a required degree.

To address the issue, Gallon recommended hiring them under different titles that did not require certification.

Gov. Chris Christie then stepped in, calling for New Jersey’s education commissioner to take action, according to news reports. A day later, the School Board fired the pair, Lalelei Kelly and Lesly Borge.

Less than a month later, in May 2010, police arrested Gallon, Kelly and Angela Kemp, the third Miami hire. The state Attorney General said Gallon falsely claimed the women lived at his address in South Plainfield — a school district in which they neither lived nor worked.

The trio’s lies, prosecutors said, enabled both women’s children to attend South Plainfield schools illegally and cost taxpayers $10,500 over four months. The women later paid back the money, records show.

In January 2011, Gallon and the two women agreed to serve probation and never again work in New Jersey’s public schools. In exchange, the charges were dismissed.

The following year, the three reunited — in Florida’s charter-school system.
...

[Tonya] Deal said she believed his version of the New Jersey scandal — the story was overblown by the media — and urged the schools to hire him.

Gallon fully disclosed his past to the boards, said another board member, Lewis. She told the Sun Sentinel she believed Gallon’s arrest had nothing to do with his official duties in New Jersey, and noted that he had not been convicted of any crime.

Gallon got the job. He was hired as a $135-per-hour consultant in June 2011. His mission: improving student performance at the three schools.


...
By the end of 2012, the boards for the charters declared states of fiscal urgency. Though the Miami-Dade school would recover in the coming months, the end was near for the Broward and Palm Beach county schools.

Attendance at both schools fell dramatically from the prior year, in part because of moves to new facilities, dropping from 202 to 92 at the Palm school and from 241 to 88 at the Broward school. Because the schools receive public money based on their student population, the drop in enrollment resulted in a plunge in school income.

The two schools also were crumbling academically — the area Gallon had been hired to improve.

The Broward school showed no evidence of a reading program, English language instruction for non-native speakers or services for students with disabilities, district officials reported. The school also provided false information about teachers, the officials said.

The Palm Beach County school lacked a science teacher and did not offer core courses, district officials reported. A state administrative law judge found the school lacked reading lesson plans, study guides or even textbooks; “neglected” biology and math; and “failed in its most basic duties to educate its students.”

More on Florida and the looting phase of education reform

This basically picks up where the post, "We couldn't even afford one Mercedes Benz at Next Generation," left off and continues detailing the Harold Hill aspect of Florida's charter school scandals.




One of the fundamental assumptions of the charter school movement is that choice and accountability make regulation superfluous.  Michigan bet heavily on that principle. Florida even more so. In the Sunshine State, there are almost no barriers to entry, The attitude has been "let everybody in and let the market decide who gets to stay." Unfortunately, the market only getss to make that decision after some very large checks have gone out.

From the previous mentioned and absolutely essential Sun-Sentinel series:
Unchecked charter-school operators are exploiting South Florida’s public school system, collecting taxpayer dollars for schools that quickly shut down.

A recent spate of charter-school closings illustrates weaknesses in state law: virtually anyone can open or run a charter school and spend public education money with near impunity, a Sun Sentinel investigation found.

Florida requires local school districts to oversee charter schools but gives them limited power to intervene when cash is mismanaged or students are deprived of basic supplies — even classrooms.

Once schools close, the newspaper found, districts struggle to retrieve public money not spent on students.

Among the cases the newspaper reviewed:

• An Oakland Park man received $450,000 in tax dollars to open two new charter schools just months after his first collapsed. The schools shuttled students among more than four locations in Broward County, including a park, an event hall and two churches. The schools closed in seven weeks.

• A Boca Raton woman convicted of taking kickbacks when she ran a federal meal program was hired to manage a start-up charter school in Lauderdale Lakes. [That would be our old friend from the earlier post -- MP]

• A Coral Springs man with a history of foreclosures, court-ordered payments, and bankruptcy received $100,000 to start a charter school in Margate. It closed in two months.

• A Hollywood company that founded three short-lived charters in Palm Beach and Collier counties will open a new school this fall. The two Palm Beach County schools did not return nearly $200,000 they owe the district.

South Florida is home to more than 260 charter schools, many of them high-performing. Some cater to students with interests in the performing arts, science and technology, or those with special needs.

Like traditional public schools, charter schools are funded with tax money. But these independent public schools can be opened and operated by individuals, companies or cities, and they are controlled by volunteer governing boards, not local elected school boards.
...
State law requires local school districts to approve or deny new charters based solely on applications that outline their plans in areas including instruction, mission and budget. The statutes don’t address background checks on charter applicants. Because of the lack of guidelines, school officials in South Florida say, they do not conduct criminal screenings or examine candidates’ financial or educational pasts.

That means individuals with a history of failed schools, shaky personal finances or no experience running schools can open or operate charters.

“The law doesn’t limit who can open a charter school. If they can write a good application … it’s supposed to stand alone,” said Jim Pegg, director of the charter schools department for the Palm Beach County school district. “You’re approving an idea.”
...
Charter-school advocates say the complexity of the application, which can run more than 400 pages, weeds out frivolous candidates. But school officials in Broward and Palm Beach counties told the Sun Sentinel some applicants simply cut and paste from previously approved applications available online.
Not surprisingly, this system has attracted some interesting characters such as Trayvon Mitchell.
A former teacher at the Ivy Academies stored her classroom supplies in the trunk of her car. Every morning, she’d wait for a phone call to find out where classes would be held that day.

“I would never know where we [were] going,” said teacher and former middle school dean Kimberly Kyle-Jones. “It was chaotic.”

The two Ivy Academies lasted only seven weeks.

The schools, managed by Trayvon Mitchell of Oakland Park, opened in 2013 at the Signature Grand reception hall in Davie.

Evicted over a bounced check, the schools relocated to a Fort Lauderdale church that did not have enough classrooms.

That’s when the daily field trips began.

On some days, students went to the Miami Seaquarium or local museums. Other days were spent at Holiday Park in Fort Lauderdale.

The schools then moved to a second church a few miles away.
...

State law requires that furniture, computers and unspent money be returned to the districts, but when officials attempt to collect, charter operators sometimes cannot be found.

“We do know there have been a few [charter schools] … where hundreds of thousands of dollars were never spent on kids, and we don’t know where that money went,” said Pegg, who oversees charters in Palm Beach County. “As soon as we close the door on those schools, those people scatter … We can’t find them.”

When a Broward school district auditor and school detective went searching for Mitchell at the Ivy Academies in September 2013, he left through a back door, records show. District officials said they have yet to find him, or to collect the $240,000 in public money the schools received for students they never had.

A bit of context for the Malaysia Airlines Flight 17 conspiracy theories

Over at the New Republic, Julia Ioffe has a fascinating piece on the Russian media's treatment of the downing of MH17:
Did you know Malaysia Airlines Flight 17 was full of corpses when it took off from Amsterdam? Did you know that, for some darkly inexplicable reason, on July 17, MH17 moved off the standard flight path that it had taken every time before, and moved north, toward rebel-held areas outside Donetsk? Or that the dispatchers summoned the plane lower just before the crash? Or that the plane had been recently reinsured? Or that the Ukrainian army has air defense systems in the area? Or that it was the result of the Ukrainian military mistaking MH17 for Putin’s presidential plane, which looks strangely similar?

Did you know that the crash of MH17 was all part of an American conspiracy to provoke a big war with Russia?

Well, it’s all true—at least if you live in Russia, because this is the Malaysia Airlines crash story that you’d be seeing.

As the crisis surrounding the plane crash deepens and as calls for Vladimir Putin to act grow louder, it’s worth noting that they’re not really getting through to Putin’s subjects. The picture of the catastrophe that the Russian people are seeing on their television screens is very different from that on screens in much of the rest of the world, and the discrepancy does not bode well for a sane resolution to this stand-off. 
This reminded me of a conspiracy theory I've considered blogging on partly because it uses such bad statistics to make much of its case, but mainly because it is so incredibly weird. Forget von Däniken and Velikovsky; this is the hard stuff. From Wikipedia:
The New Chronology also contains a reconstruction, an alternative chronology, radically shorter than the conventional chronology, because all ancient history is "folded" onto the Middle Ages. According to the revised chronology, the written history of humankind goes only as far back as AD 800, there is almost no information about events between AD 800–1000, and most known historical events took place in AD 1000–1500.
The main mover for this is Russian mathematician Anatoly Fomenko and he has put in an incredible amount of effort making sure everything fits his theory, including some things that are difficult to ignore:
The Great Pyramids naturally fit in the epoch of the monumental constructions, which blossomed in the XIV-XVI cc. all over the Empire. They are: 1) The Great Wall of China, 2) the magnificent cathedrals of Western Europe, 3) the indomitable Kremlins and fortifications in Russia-Horde, 4) the massive Hagia Sophia in Istanbul, aka (according to our reconstruction) – The Temple of Solomon in Jerusalem = Czar-Grad, 5) the Great Sphinx, [actually "a very familiar Christian Cherubim." Who knew? -- MP] 6) the Great Pyramids and temples of Egypt 7) the great pyramids and temples of Central America, in particular Mexico, 8) gigantic constructions of Baalbeck (Lebanon).
That part about the Russia-Horde is important. (All remaining quotes from Wikipedia):
Central to Fomenko's New Chronology is his claim of the existence of a vast Slav-Turk empire, which he called the "Russian Horde", that played the dominant role in Eurasian history before the 17th century. The various peoples identified in ancient and medieval history, from the Scythians, Huns, Goths and Bulgars, through the Polyane, Duleby, Drevliane, Pechenegs, to in more recent times, the Cossacks, Ukrainians, and Belarussians, are nothing but elements of the single Russian Horde. For the New Chronologists, peoples such as the Ukrainians, Belarussians, Mongols, and others who assert their national independence from Russia, are suffering from a historical delusion. 
That might explain this:
Despite criticism, Fomenko has published and sold over one million copies of his books in his native Russia. Many Internet forums have appeared which aim to supplement his work with additional amateur research. His critics have suggested that Fomenko's version of history appealed to the Russian reading public by keeping alive an imperial consciousness to replace their disillusionment with the failures of Communism and post-Communist corporate oligarchies.
I don't know enough about Russia to even start speculating about the larger question of conspiracy theories in today's Russia. That's a question for people who know what they're talking about. I will, however, note that, if nothing else, Fomenko's New Chronology shows why chess masters might not make such formidable Bond villains in real life.

Monday, July 21, 2014

As we were saying about 'that's where they keep the money' -- more from the League of Women Voters

Diane Ravitch's blog has an extraordinary article by Patricia W. Hall, chair of the League of Women Voters Education team in Hillsborough County, Florida. It draws heavily on the League's one-year study of charters across Florida. Good government advocates should read the whole thing but it was the deals of Ryan Construction that particularly caught my eye.
Although charter schools must, by Florida law, be overseen by a non -profit board of directors, there are many ways in which for-profit organizations have begun to highjack the charter school movement. For-profit management companies frequently provide everything from back office operations including payroll, contracting with vendors for food services, textbook, etc., to hiring principals and teachers and curriculum control; so what was sold to parents and children as a local public education innovation now looks more like national charter-chains, the “Waltmartization” of public education. According to education expert Diane Ravitch, “nearly half of all charter school students are enrolled in a charter chain school” in the United States. The top four charter operators in Florida for 2011-2012 were Academica (72), Charter Schools USA (37), Charter School Associates (20), and Imagine Schools (23). These are not the small, locally run experimental schools envisioned by the original legislation.

The real profits, however, are not in the operation of the charter school, but in the real estate development. After receiving a variety of grants, loans and tax credits for building a charter school, the for- profit chain charges ever escalating rents and leases to the school district, paid by tax-payer education dollars. The for-profit then reaps the profits when the building is sold in a few years. Meanwhile the properties with high, non-taxable, values based on claimed “commercial” revenue streams from public tax-payer dollars are leveraged to borrow additional funds to build more school buildings.

Our shining local examples in Hillsborough County are owned by Charter Schools USA. My first glimpse of Winthrop Charter School in Riverview in November of 2011 was during a scheduled visit with then Rep. Rachel Burgin. When told the two story brick building was a charter school, I was mystified. The site on which it was built was purchased from John Sullivan by Ryan Construction Company, Minneapolis, MN. From research done by the League of Women Voters of Florida all school building purchases ultimately owned and managed by for-profit Charter Schools USA are initiated by Ryan Construction. The Winthrop site was sold to Ryan Co. in March, 2011 for $2,206,700. In September, 2011 the completed 50,000 square foot building was sold to Red Apple Development Company, LLC for $9,300,000 titled as are all schools managed by Charter Schools USA. Red Apple Development is the school development arm of Charter Schools USA. We, tax payers of Hillsborough County, have paid $969,000 and $988,380 for the last two years to Charter Schools USA in lease fees!

The big prize purchased by Ryan Co. at the same time, March of 2011, was the 58,000 square foot former Verizon call center on 56th Street in Temple Terrace for $3,750,000. Ryan Co. made no discernible exterior changes except removal of the front door, added a $7,000 canopy and sold the building as Woodmont Charter School to Red Apple Development for $9,700,000! Who would not love a $6 million dollar boost in 6 months? Lease fees for the last two years were $1,009,800 and $1,029,996! Are we outraged yet? Woodmont made headlines in the Tampa Bay Times this spring as an “F” rated (FCAT score) school advertising for new students and a fired teacher reporting that out-of-field teachers and uncertified teachers were on the faculty.
...

We discovered that Ryan Construction Company, in collaboration with Red Apple Development and the Florida Development Finance Corporation, secured a mortgage and loan agreement for multiple sites with Regions Bank in Tallahassee for $55,800,000 tax-exempt series (the “Series 2012A Bonds”) and $3,520,000 taxable series (the Series 2012B Bonds ). This transaction was November 1, 2012. Red Apple Development had secured a mortgage from Church Loans and Investments Trust dba CLI Capital in Texas for $9,841,000 for the Woodmont Property in late 2011; they paid off the nearly $10,000,000 mortgage in 16 months (January of 2013) by virtue of the $55,800,000 “windfall”.

From The Tampa Bay Times opinion editorial April 1st, 2014 “Another area where the distinction between public and private is blurred for the benefit of for-profits is the issuing of bonds. Although Florida law prohibits charter schools from issuing bonds, Charter Schools USA has found a way. When naming Jon Hage as Floridian of the Year, Florida Trend in December 2012 contended that Charter School USA is the largest seller of charter school debt in the country. “It will sell $100 million worth of bonds this year (2012-13), Hage says. . . The bonds come with tax-exempt status because they are technically held by the non-profit founding boards that oversee the schools.”




The League of Women Voters weighs in on Florida's charter school scandals

Diane Ravitch has the announcement. Make sure to check out the conflict of interest list at the end:

FOR IMMEDIATE RELEASE
May 27, 2014
Contact:
Deirdre Macnab
LWVF President
Email: floridaleague@earthlink.net
Phone: (407) 415-4559
League of Women Voters Releases
State-Wide Study on School Choice
Tallahassee, Fla — Twenty percent of the state’s charter schools close because of financial mismanagement or poor academic standards, according to the League of Women Voters of Florida after a year-long study of charter schools in 28 Florida counties.
“Charter schools could fill a niche in Florida’s educational spectrum, but for many, their biggest contribution may be to corporate bottom lines,” said Deirdre Macnab, President of the League of Women Voters of Florida.
With over 576 charter schools in the state, the League of Women Voters of Florida conducted a study in order to better understand the oversight, management, accountability and transparency of charter and private schools in Florida.
The study found that:
Approximately one-third of charters are run by for-profit management companies. Many screen students, then drop those who are not successful, which public schools are prohibited from doing. Charters also serve particular socio-economic groups, increasing segregation in schools.
Although charters tend to be smaller than traditional schools, there is no consistent difference in achievement for charter school and public school students.
Many charters blur the distinction between religious and non-secular schools. Some churches receive as much as a million dollars in lease payments annually for their facilities from charter schools.
In areas with declining enrollments, neither the charters nor regular public schools are large enough to adequately provide support for staff like nurses or counselors. Retaining teachers is also a problem; most charters offer lower salaries and benefits than public schools.
The League’s study produced several recommendations:
Charters should be limited to those that fill unmet needs in identified local school districts.
Stronger local management oversight and disclosure policies are needed.
Financial mismanagement issues must be addressed, as too often the privatization of schools leads to financial abuse.
For more information, including further findings and recommendations, please see the state-wide study, along with the individual studiesconducted by eighteen local Leagues across Florida.
###
The League of Women Voters of Florida, a nonpartisan political organization, encourages informed and active participation in government, works to increase understanding of major public policy issues, and influences public policy through education and advocacy. For more information, please visit the League’s website at:http://www.TheFloridaVoter.org.
FLORIDA LEGISLATORS WITH A DIRECT INTEREST IN CHARTER SCHOOLS:
Conflict of Interest Concerns
 Senator John Legg Chair of Senate Education Committee is co-founder and business administrator of Daysprings Academy in Port Richey.
 Senator Kelli Stargel from Orange County is on board of McKeel Academies. She is on the Education Committee and sponsored the Parent Trigger Bill.
 House Budget Chairman Seth McKeel is on the board of McKeel Academy Schools in Polk
County.
 Anne Corcoran, wife of future House Speaker Richard Corcoran has a charter school in
Pasco County. http://www.tampabay.com/news/education/k12/pascos-classical-prep- charter-school-delays-opening-for-a-year/1276912. Richard Corcoran is Chair of the House Appropriations Committee.
 Senator Anitere Flores of Miami is president of an Academica managed charter school in Doral.
 Florida Representative Erik Fresen is Chair of the House Education subcommittee on appropriations. Representative Fresen’s sister is the Vice President of Academica and is married to the president.http://www.tampabay.com/blogs/the-buzz-florida- politics/content/ethics-commission-clears-miami-rep-erik-fresen-alleged-voting-conflict.
lawmakers.html
 George Levesque, Florida House lawyer cleared Erik Fresen of conflict of interest
concerns over charter schools. He is the husband of Patricia Levesque, former Jeb Bush Deputy Chief of Staff and currently Executive Director of the Foundation for Excellence in Education which promotes school choice. http://www.truthabouteducation.org/1/archives/01-2010/1.html.
 Representative Manny Diaz is Dean of Doral Academy, an Academica managed school. He is the leader for the new statewide contract bill in the Florida House. Doral College was cited by the Florida Auditor General for a $400,000 loan from Doral Charter High School. Conflict of Interest and procurement for Charters with federal grants:http://floridacharterschools.org/schools/taps/conflictinterest_att.pdf

Sunday, July 20, 2014

"We couldn't even afford one Mercedes Benz at Next Generation"

Bigger story coming up on charter school corruption. One of the major sources will be this stunning series from the Sun-Sentinel. Florida, like Michigan, has long been on the cutting edge of the charter school movement, not just in terms of funding but with freedom as well. Both states bet heavily on the idea that regulation of charters would hinder innovation while school choice would make close oversight unnecessary. 

One result has been a number of charters run by characters with rather interesting backgrounds. From the Sun-Sentinel, Karen Yi and Amy Shipley describe a notable example.
It’s unclear how Next Generation spent the nearly $1 million it received in tax money before closing down in April 2013. The charter school failed to file several required monthly financial reports and a mandatory end-of-the-year audit. Records show the school owed more than $2 million to creditors and $55,000 to the Broward school district.

Two management companies separately operated the school during its eight-month tenure.

Cory MacNeille founded Next Generation and created the first for-profit company to operate it. She then hired her mother, Judy Perlin, of Boca Raton, to join her in managing the school, records show.

In the previous decade, state investigators repeatedly had cited the two with misusing federal money under a program to provide meals for low-income children in South Florida, state public records and court documents show. The two ran Riverwood Youth Opportunities, Inc., a nonprofit.

In 2004, state officials found Perlin’s nonprofit improperly used federal dollars to lease two Mercedes Benz vehicles for her and her daughter; pay for lodging and meals at a Club Med; and purchase two airfares and lodging for travel to Garden City, N.Y. The organization was ordered to repay the state.

In 2005, the state health department said Perlin, the nonprofit’s CEO, let her daughter use federal dollars to advertise a personal business. The state temporarily barred both from the meal program.

In 2010, Perlin pleaded guilty to bribery charges related to the meals program and admitted taking $40,000 in kickbacks. She was ordered to pay a $3,000 fine and placed on two years’ probation.

Once Perlin and her daughter departed, the board hired a new management company, headed by Trayvon Mitchell.

Teachers said the school continued to decline, failing to prepare students for required state tests and neglecting students with special needs.

The school shut its doors weeks before the last day of school.

Mitchell could not be reached for comment. MacNeille and Perlin did not respond to specific questions about the state’s findings against them or the school’s finances.

“I think charter schools are very difficult, and I think they are underfunded,” MacNeille said.

Two Michigan stories

Perhaps there's a connection somewhere.

First there's this previously mentioned story from the Detroit Free Press:

A yearlong Free Press investigation of Michigan's charter schools found wasteful spending, conflicts of interest, poor performing schools and a failure to close the worst of the worst. Among the findings:

 Charter schools spend $1billion per year in state taxpayer money, often with little transparency.

 Some charter schools are innovative and have excellent academic outcomes — but those that don't are allowed to stay open year after year.

 A majority of the worst-ranked charter schools in Michigan have been open 10 years or more.

 Charter schools as a whole fare no better than traditional schools in educating students in poverty.

 Michigan has substantially more for-profit companies running schools than any other state.

 Some charter school board members were forced out after demanding financial details from management companies.

 State law does not prevent insider dealing and self-enrichment by those who operate schools.
And now this:
Detroit Public Schools EM shifts funds from classroom
By Dr. Thomas C. Pedroni

Many of us are shocked to learn that DPS plans to cut costs in the coming year by further increasing class sizes. Already at an unmanageable target of 38 per classroom in grades 6 through 12, Emergency Manager Jack Martin’s fiscal year 2015 budget allows class sizes in those grades to expand to 43. 


Saturday, July 19, 2014

Rural hospitals

“You can't let rural hospitals close across the country. People die,”
Adam O'Neal, mayor of Belhaven, N.C

You may have heard about O'Neal's walk to D.C. to protest closings of rural hospitals. It's an important story in itself but it also hits on a major thread on class bigotry I've been meaning to start focusing on. One of the major components of that thread will be the tension between rural, urban and suburban.

I don't quote Charles P. Pierce often because we generally try to keep things nonpartisan here and that's very difficult with Pierce. That said, he has some solid insights on the question:
These hospitals do staggeringly good work coping with unique problems despite staggeringly limited resources. The rural poor exist largely off-stage in our politics because, for decades, people have found it convenient to put an "urban" face on American poverty, in large part because the people who found that convenient don't believe in any help for the poor except for imaginary Jesus bootstraps and they knew that the foundational racism in the country would help them sell their arguments better than they could. (That was why when LBJ, the old scoundrel, was trying to sell the country on Medicaid and the rest of the Great Society, most of the visuals were with him in Appalachia and in other places where the poor people were mainly white. He was smarter than the professional bigots. Always was. If he'd only known he was smarter than the generals, too. Oh, well...)

However, the rural poor, black and white, suffer all the health consequences of endemic poverty as do poor people everywhere. And, because so many of the rural poor live in states where taking the FREE MONEY! from the Kenyan Usurper is one step above selling the Statue of Liberty to Somali pirates, the problems are going to get worse, and not better, and Mayor O'Neal knows it.

Rural health advocates believe closures such as Pungo are likely to continue as the year drags on. "It's tragic obviously for the patients and the community," said Maggie Elehwany, vice president of government affairs and policy for NRHA. "And it's not the only story we're going to hear like this. That's the sad part."  By the end of Tuesday, O'Neal plans to be in Ahoskie, N.C., a town with another Vidant facility: Vidant Roanoke-Chowan Hospital. He is optimistic his town's hospital will eventually reopen, but he wants a quick turnaround. "When people start dying, I'm going to feel somewhat responsible in some way," O'Neal said. "And I can't let that happen."

Friday, July 18, 2014

Thinking about incentives at You Do the Math

Over at my teaching blog, You Do the Math, I'm in the middle of a thread on motivating students. Most of it is focused on education, but this post on incentives does overlap with some of the topics we've been discussing here.
Take performance-based incentives. Let's say I'm going to offer to pay you a certain sum if you accomplish a task but nothing if you fail. In order for you to agree, your time and effort will have to be valued less than the product of my offer times the likelihood of success. Once again at the risk of stating the obvious, as that likelihood approaches zero, your idea of a reasonable offer will have to approach infinity. Of course, in real life, there are always bounds on the amount of money I can offer but your estimate of the likelihood of success can always get closer to zero.

In a business context, we normally deal with the small perceived likelihood problem by finding someone else or opting for a different compensation plan or simply walking away from the deal. This is yet another reason why it's dangerous to have people who don't thoroughly understand both business and education try to transplant ideas from one field to another (it also reminds us of Pólyas warning that "it is foolish to answer a question you do not understand").

In education, where we should try to reach every student, low perceived likelihoods of success can be deadly. Any reward you offer for an apparently unattainable success will seem worthless; any penalty for apparently inevitable failure will seem brutally unfair. If you want to motivate these students, you will have to convince them that, with reasonable time and effort, the odds of success are pretty good (this happens to be true for the vast majority of students but that's a topic for another post).

More on the Jack Kirby copyright case

From DEADLINE [Emphasis added]:
EXCLUSIVE: No big surprise that today Marvel and Disney asked the Supreme Court to deny a petition from the heirs of Captain America, The Avengers and X-Men co-creator Jack Kirby. “This case presents a factbound application of a test uniformly adopted by the lower courts under a statute that does not apply to works created after 1978,” said a response filed today (read it here). “It implicates no circuit split, no judicial taking, no due process violation, and no grave matter of separation of powers. It does not remotely merit this Court’s review,” added the media giant’s main attorney in the matter, R. Bruce Rich. ... “In likely recognition of the fact that the statutory question does not satisfy the requirements for this Court’s review, petitioners turn to a series of bizarre constitutional arguments raised for the first time in this Court,” says Marvel. “Those arguments only underscore that none of the questions presented merits this Court’s plenary consideration.”

... Lisa Kirby, Neal Kirby, Susan Kirby and Barbara Kirby petitioned the SCOTUS this spring to hear their much-denied case. The heirs contended they had the right in 2009 to issue 45 termination notices to Marvel and others including Fox, Sony, Universal and Paramount Pictures on the artist’s characters under the provisions of the 1976 Copyright Act. While Kirby was publicly identified with much of the comic company’s prolific period along with Stan Lee, Marvel has won before in the courts under the understanding that the 262 works in question in this case the comic legend helped create between 1958 and 1963 — including many of the brightest stars in the Marvel Universe — were done under a work-for-hire deal and hence he nor his heirs have any rights of termination. With that in mind, Marvel initially waived any response to the SCOTUS petition. However, then the High Court itself requested they respond as the justices took the matter into conference. That initial scheduled May 15 conference was postponed as the Court awaited Marvel’s response.

“Petitioners alleged that their father, Jack Kirby — a freelancer who contributed to Marvel works in the form of commissioned drawings and under Marvel’s continuous supervision — held copyright interests in those works,” said Marvel today summing up the other side’s case. Now the response from Marvel is in, the Justices could take the matter under consideration. If they agree to hear the petition, it will be scheduled most likely for their next term which begins in October.
...
The case is starting to attract some superfriends now that it is in the big court leagues. Last month, SAG-AFTRA, the WGA and the DGA submitted an amicus brief to the Supreme Court in favor of having the petition granted. “The Second Circuit’s holding in this case reaffirms a test that created an onerous, nearly insurmountable presumption that copyright ownership vests in a commissioning party as a work made for hire, rather than in the work’s creator,” said the 32-page filing of June 13 (read it here). “In doing so, it jeopardizes the statutory termination rights that many Guild members may possess in works they created. Accordingly, the Guilds and their members have a significant interest in the outcome of this critically important case.”
The Kirbys are in a tough position here but I have to wonder if Marvel may yet regret pushing that "continuous supervision" line. Here's why [from the very good write-up by Michael Dean in the Comics Journal]:

The case did not go to trial, but during the discovery phase, testimonies on both sides were collected in deposition. Testifying on behalf of Kirby were Silver Age Marvel artists Jim Steranko, Joe Sinnott and Dick Ayers and comics experts Mark Evanier and John Morrow. Lined up on Marvel/Disney’s side were Roy Thomas, John Romita Sr. and Larry Lieber, but the key testimony that seemed to carry the greatest weight with Judge McMahon came from Kirby’s erstwhile creative partner Stan Lee. The 87-year-old Lee gave a two-day deposition in support of Marvel. Based on the depositions, McMahon formed the following picture of Lee and Kirby’s working relationship: Lee gave Kirby a premise in outline and then “created the plot and dialogue for the characters after the pencil drawing was complete, [and] often times ignored any ‘margin notes’ submitted by the artist with suggestions as to the plot or dialogue in the story.”

Those familiar with how a comics story is produced under the Marvel method, may have difficulty imagining how the pencil drawing for an entire story could be complete and still be in need of a plot to be added afterward by the writer, and Evanier and Morrow argued that Kirby’s creative contributions went well beyond the instructions he received from Lee. McMahon, however, acceded to Marvel’s motion to strike Evanier and Morrow’s testimony. She seemed skeptical of their status as comics “experts,” always placing the word in quotes, and expressed the view that they would not be able to add anything to the proceedings that lay persons, or non-comics-experts, couldn’t determine on their own. Also mitigating against the relevance of Evanier’s and Morrow’s testimony was the fact that they didn’t have firsthand knowledge of industry practices before 1963.
My knowledge of the law here is limited to about three minutes on Wikipedia but if the judge improperly excluded testimony, that would seem to fall under the heading of reversible error. Evanier and Morrow are arguably the two most recognized authorities on this subject and their version of the Marvel method where certain artists (particularly Kirby and Steve Ditko) would often add major story elements seems to be the expert consensus. Note Dean's line "may have difficulty imagining" (and for the record, The Comics Journal has a well respected source for a long time).

One of the experts who has often supported this version is Stanley Lieber, a.k.a. Stan Lee.

On Steve Ditko:
 "I'd dream up odd fantasy tales with an O. Henry type twist ending. All I had to do was give Steve a one-line description of the plot and he'd be off and running. He'd take those skeleton outlines I had given him and turn them into classic little works of art that ended up being far cooler than I had any right to expect."
And on the creation of the Silver Surfer:
"There, in the middle of the story we had so carefully worked out, was a nut on some sort of flying surfboard". He later expanded on this, recalling, "I thought, 'Jack, this time you've gone too far'"


Like I said. I doubt the Kirbys will win this. I'm not even sure they should. Jack Kirby made a massive contribution to the medium, but he was not a good businessman and he made some bad deals. Disney/Marvel have mistreated creators for decades but as long as they did it within the law, I'm not sure if the courts should get involved.

What I am fairly sure of is that we've seen absurd and destructive regulatory capture in the area of copyrights. The current system is unfair to actual creators. It erects barriers to entry and encourages media consolidation. It even allowed companies to snatch films out of the public domain. I hope the Kirbys win their case but the real fix for this problem needs to come from Congress, not the courts.






Vergara transcripts

I probably won't be getting back to to the Vergara Case for a while -- I pretty much had my say in this Monkey Cage piece -- but I just came across the transcripts for the trial. The section linked to here includes testimony from Raj Chetty.

Chetty has gotten in the habit of making very bold causal and predictive statements based on interesting but not conclusive studies. Before reading through all of his testimony (which I haven't done myself -- it's not that relevant to the threads I'm pursuing), I would advise checking out what Bruce Baker of Rutgers had to say about the original research.

Thursday, July 17, 2014

Sometimes when you blow a something up, you just get rubble...

I know we've been over this before, but most of the fundamental ideas in the education reform movement (the magic of the markets, scientific management, etc.) are unsurprisingly popular with CEOs, ex-CEOs and other thought leaders of the business class. One of the most popular is disruptive innovation, so much so that the satiric counter-reform site Edushyster makes the overuse of the word 'disruption' a running joke.

Like many of these MBA-friendly concepts, there is some substance to the idea, but not much. While it is true that new approaches and technologies often make old ones obsolete (and cause corporate fortunes to rise and fall as a consequence), attempts to derive useful business rules to deal with this phenomena have produced little but jargon-filled platitudes supported by case studies that go beyond cherry-picked.

Jill Lepore eviscerated most of the standard examples (and pissed off quite a few Silicon Valley types) in this recent New Yorker piece. She also delved into the appeal of the idea.
Most big ideas have loud critics. Not disruption. Disruptive innovation as the explanation for how change happens has been subject to little serious criticism, partly because it’s headlong, while critical inquiry is unhurried; partly because disrupters ridicule doubters by charging them with fogyism, as if to criticize a theory of change were identical to decrying change; and partly because, in its modern usage, innovation is the idea of progress jammed into a criticism-proof jack-in-the-box.

The idea of progress—the notion that human history is the history of human betterment—dominated the world view of the West between the Enlightenment and the First World War. It had critics from the start, and, in the last century, even people who cherish the idea of progress, and point to improvements like the eradication of contagious diseases and the education of girls, have been hard-pressed to hold on to it while reckoning with two World Wars, the Holocaust and Hiroshima, genocide and global warming. Replacing “progress” with “innovation” skirts the question of whether a novelty is an improvement: the world may not be getting better and better but our devices are getting newer and newer.
As is often the case, movement reformers have not only adopted this flawed business fad; they have embraced its most cartoonish form.

I've already discussed the class and race components of Arne Duncan's quote: “I think the best thing that happened to the education system in New Orleans was Hurricane Katrina,” but he was also expressing the fetishized attitude toward creative destruction that is common in reform circles.

Michigan provides another example:
Keith Johnson, president of the Detroit Federation of Teachers, said he had expected [Detroit Public Schools Emergency Manager Roy] Roberts to discuss Monday’s upcoming visit by U.S. Secretary of Education Arne Duncan.

“When he said, ‘I’m stepping down,’ all of our mouths just dropped,” Johnson said. “I can’t say it’s a bad day. I can’t say it’s a good day, because we don’t know who’s coming next.”

Roberts also told those gathered more shocking news: His initial instructions when he arrived in Detroit were to “blow up the district and dismantle it,” Johnson said.

“He’s got nothing to lose by saying it now,” Johnson added.

Roberts said he spent the first several months of his tenure convincing state officials the district was worth saving, according to board members.

“Blow it up – those were his exact words,” Detroit School Board member Tawana Simpson confirmed.
Roberts has been trying to back away from that comment ever since he said it, but both the sentiment and the language are absolutely in line with the movement. You hear this sort of thing all the time if you follow education reform, often coming directly from the leading lights of the creative disruption cottage industry and it is exactly how you would expect Gov. Rick Snyder to frame the problem.

Of course, the disruption of New Orleans and Michigan has not proven all that creative...

Wednesday, July 16, 2014

Ray Fisman on Swedish school vouchers

Ray Fisman reports on the Swedish experience with vouchers and how it hasn't quire worked out as well as one might hope.  Ray Fisman isn't a naïve opponent of school reform -- he has been willing to discuss some rather strong findings arguing for improvements in how we handle teachers.  But he is pretty rough on Sweden, which apparently has more students going to for profit schools than anywhere else in the developed world. 

He rather clearly points out the basic problem:
None of this is terribly surprising—in econ 101 we learn that markets work their magic when buyers and sellers are well-informed about what’s getting bought and sold, and can therefore transact with one another without fear of getting conned. The apparent failure of the Swedish schooling experiment is a lesson in the inability of markets to solve problems where it’s hard to compare the educational “product” that’s offered, and the outcomes you can observe are subject to manipulation. It’s also a reminder that the cold, hard calculations of markets aren’t necessarily suited to the realm of education. Governments don’t shut schools because they fail to turn a profit. Private equity firms do. The parents of more than 10,000 students learned this difference the hard way last year, when the Danish private equity group Axcel abruptly announced its exit from the Swedish school market, stating that it could no longer cover the continued losses.
If we had really good, real time information on educational quality then this would be a less difficult problem.  After all, if informed decisions can be made then it makes sense that a liberal country like Sweden would want to empower parents to make the best decisions for their children.  Now, it is possible to argue that tweaking some feature of the Swedish approach could result in better outcomes -- much is possible.  But these sort of ecological examples certainly raise the bar for evidence of this approach working when it is fully scaled up (unlike something like KIPP which isn't necessarily intended to scale to all children in the US). 

Formalizing Next-Big-Thingism

Various time in various posts, I've complained about Next-Big-Thingism, often in conjunction with ddulites and the growth fetish, but while I've defined the latter two, I don't remember ever laying out the fundamentals of NBTism.

It's basically an "End of Days" belief system found widely among investors, journalists, policy makers and other 'thought leaders.' (I'm sorry, but I can't bring myself to type that term without the scare quotes.). It goes something like this:

The new order is about to emerge. All will change;

The bringer of creative destruction is already among us;

Only those who embrace the bringer will save themselves and their portfolios.

Over the past few years, personal computing, the internet, social media, mobile, the sharing economy, and the internet of things have all been, at least briefly, the new messiah. All have had or will have a major impact, but none, including the internet, have been what their adherents hoped (anyone who says the internet surpassed the hype doesn't remember the hype).

My main main complaint with Next-Big-Thingism, other than the annoying part, is that it leads to bad thinking and worse investments and that means that a great deal of money and man-hours get diverted to obviously bad ideas just because they might be part of the new order (yes, I'm looking at you, Groupon).