Charter Schools Strip Public System

By Thomas Ultican 5/27/2016

United Teachers of Los Angeles (UTLA) contracted with MGT of America Consulting, LLC for a report on costs to Los Angeles Unified School District (LAUSD) caused by charter schools. MGT reported, “these data indicate that LAUSD has a nearly $600 million impact from independent charter schools. By far, the most significant financial impact to LAUSD is in the area of declining enrollment lost to charter schools” which they estimated as a “total net revenue loss in 2014-15 $508,280,866.” Within a few days the California Charter Schools Association (CCSA) began attacking the report in an open letter to the LAUSD Board of Education.

CCSA said of the report: “This report is riddled with inaccuracies;” “It draws sweeping and often irresponsible conclusions based on limited information and obsolete data;” “It paints a distorted picture of charter schools’ role in L.A. Unified’s financial portfolio;” “Charters are essential to the district’s success.”

A fair reading of the report reveals that MGT’s representative was conservative, clear, careful and reasoned. MGT is a private research firm that has expertise in analyzing school and other governmental systems. They accepted a contract with the UTLA to research a set of specific questions and they do not appear to have a dog in this fight. Conversely, the $15 million budget that California Charter Schools Association (CCSA) has to promote charter schools gives them an undeniable agenda.

CCSA Disputes and Reality

There are 24 findings stated in the MGT report. Each of the findings is explained in some detail and the source of the data is given. The CCSA disputes four of these findings in their open letter. The refutations bring to mind arguments about how many angles can dance on the head of a pin.

CCSA disputed the special education findings. MGT found, “the district has both a higher proportion of special education students than the charter schools (13.4% vs. 8.1%, as of December 2013) and of that proportion, has double the percentage of higher cost ‘Moderate to Severe’ special education students than its charters (30% vs 15%), as reported in the data compiled for the Independent Financial Review Panel report published November 10, 2015.”

CCSA says, “The report uses a number of outdated and erroneous statistics that paint a misleading picture of both the proportion of students with disabilities in charters schools and the fiscal impact on the District.” They claim a “recent analysis” shows the LAUSD over identifies special education students. They also point to data from the Office of the Independent Monitor that shows that LA charter school only served 3% less special education students in 2013-2014 not the 5% difference shown in the report. Why there is a discrepancy between the data provided by the Independent Monitor and LAUSD is not clear. The following chart based on data provided by LAUSD and the state of California indicates for some reason the percentage of charter school students in LAUSD is increasing.

It may be that the CCSA is more worried about possible changes to California law than they are about this report. They stated, “The UTLA/MGT ‘Finding 5’ regarding Proposition 39 oversight fees is false. If a school district, such as the Los Angeles Unified School District, charges a pro rata share, the facilities are not substantially rent free and the school district cannot charge the 3% oversight fee.” On this subject the MGT report explains, “LAUSD has fifty-six (56) charter schools currently co-located in LAUSD facilities and has elected to use the “pro rata share” approach for facilities charges. By doing so, the district may have determined it may not also charge the 3% oversight fee. However, the majority of the costs included in the pro rata calculation are direct costs that charters should already be paying that are associated with occupancy of the facilities (e.g. utilities, custodial, trash, grounds, etc.).” It does not look like a false claim at all but just a suggestion for the district to save a few dollars from going into the pockets of CCSA clients.

Poor Law Harming Local Schools

The MGT study illustrates how charter school law in California is fashioned to favor privately operated charter schools over public schools. If a local community passed a bond measure in the 1980’s to build a new public school, it is the law in California that the members of that local community – who still might be paying for that public school – will have no choice but to allow a private operator move into the facility. In addition, the charter school law requires the local school district to incur many direct and indirect costs to support charter schools.

In California, since its statehood, a super-majority (67%) was required to pass a school bond measure. In 2000, after losing an effort that March to mitigate the super-majority rules and the infamous proposition 13 limitations, supporters brought forward proposition 39 that would reduce school-bond super-majorities to 55% and did not seriously threaten proposition 13 protections enacted in 1978. It passed 53% to 47% in November.

In the official ballot summary for proposition 39 in the November 7, 2000 election the support message was signed by Lavonne Mcbroom, President California State PTA; Jacqueline N. Antee, AARP State President; and Allan Zaremerg, President California Chamber of Commerce. The statement against the proposition was signed by Jon Coupal, Chairman Save Our Homes Committee, Vote No on Proposition 39, a Project of the Howard Jarvis Taxpayers Association; Dean Andal, Chairman Board of Equalization, State of California; and Felicia Elkinson, Past President Council of Sacramento Senior Organizations.

This proposition was a battle royal with every media source and elected official bloviating endlessly about the righteousness of their side. However, like in the official ballot measure statements, there was no discussion of the charter school co-location funding requirement in article six of the proposition.

When proposition 39 is coupled with the undemocratic charter authorizing system in California, citizens lose all democratic control of their local schools. With the three levels of government having the power to authorize charter schools it is almost impossible to turn down an charter request no matter how bad the schools previous history is or how inundated a community might be with certain types of schools. As former Assistant Secretary of Education, Diane Ravitch writes:

 “District officials in California have confided in me that it is virtually impossible to stop a charter proposal, no matter how bad it is or how little it is needed. If the district turns down the proposal, the charter advocates appeal to the Los Angeles County School Board, where they are often approved. In the off-chance that both the district and the county turn down their proposal, the advocates appeal to the state, where they are almost certain to win approval.”

CCSA Influencing Elections

Here in San Diego, it appears the CCSA is trying to pack the San Diego County Board of Education with charter school proponents. Four of the five seats on the Board are up for election on June 7. The Voice of San Diego reported, “Nine candidates will vie for the openings, including four incumbents: Gregg Robinson, Mark Anderson, Guadalupe Gonzalez and Rick Shea. All except Shea are community college educators.” And they continue, “CCSA is backing four challengers in the election: [Mark] Powell, Jerry Rindone, Paulette Donnellon and former state Sen. Mark Wyland.”

Evidently the fact that “The County Board denied six of the seven charters it has reviewed since 2011 is a cause for corporate spending. In all of those cases, County Board members went along with the recommendations of staff members who reviewed the document.” The County Board only reviews cases that have already been turned down by local school districts.

Stop Authorizing Charter at Least until Law Fixed

Public education run by democratic processes is a major good. The past two decades of school reform have produced nothing but negative results and profits. The more enthusiastically the corporate and billionaire driven reforms have been embraced the worse the results (see Denver, New Orleans and Washington DC). It is time to stop all new charter school authorizations in California. It is time to reject the Common Core State Standards and the Next Generation Science Standards. It is time to embrace professional educators working democratically within local communities to restore public education in America. It is time to protect our great inherited legacy – public education – which is definitely not a privatized market driven education.