Arizona Charters
The Real Wild, Wild West
Arizona Charters The Real Wild, Wild West Education Still Reigns - - PowerPoint PPT Presentation
Arizona Charters The Real Wild, Wild West Education Still Reigns for Voters https://azednews.com/education-is-voters-1-issue/ Voter Priorities for Education https://azednews.com/education-is-voters-1-issue/ What are AZ Charter Schools? ARS
Arizona Charters
The Real Wild, Wild West
Education Still Reigns for Voters
https://azednews.com/education-is-voters-1-issue/Voter Priorities for Education
https://azednews.com/education-is-voters-1-issue/What are AZ Charter Schools?
❖ARS 15-181: “Public schools that serve as alternatives to traditional
public schools”
❖Funded by the state and “free”
to all Arizona students
❖Don’t operate by same rules as
district schools
❖Most loosely regulated in the nation ❖Essentially, charter operators are contractors that receive taxpayer
dollars to operate privately controlled schools
❖In 2017, there were 427 charter holders and 579 schools
http://www.azcsa.org/uploads/3/9/2/3/39234099/charter_pp_pdf..pdfHistory of Charters in AZ
❖First approved, along with open enrollment, in a 1994 special legislative session ❖Originally, three approval pathways: through local school district, AZDepartment of Education, or AZ Board for Charter Schools
❖In the beginning, state agencies could only approve 25 per year ❖Annual limit soon lifted, charter contracts changed from 5 to 15 years, andability to apply for additional money if enrollment exceeded projections allowed
❖GOP-led Legislature added seats to state Charter Board and authorizedgovernor to fill them
❖With 2015 budget, the Legislature stopped allowing districts to charter schools ❖AZ charters educate 17% of public school students in 28% of public schools https://www.azcentral.com/story/news/local/arizona-education/2018/12/14/charter-schools-take-root-arizona-1994-legislation/ 2015754002/How Schools are “Chartered”
❖ Either the state board of education or the state board for charter schoolsgrants charter status to qualifying applicants
❖ Applicants must pay $6,500 and submit a detailed education plan,business plan, and operational plan to a proposed sponsor
❖ Sponsor can be ❖ State Board of Education ❖ State Board for Charter Schools ❖ A university under AZ board of regents, or community college district ❖ Must also submit fingerprints to the approving agency for the purpose ofWho Determines Charter Admission?
❖ AZ state statute (ARS 15-184) delineates charter school admission requirements: ❖Shall enroll all eligible pupils who submit timely applications, unless number exceeds set capacity
❖May give preference to returning pupils/siblings, children in foster care; homeless; and children, grandchildren or legal wards of those affiliated with school
❖May use lottery process for enrollees if necessary
❖Charters may not limit admission based on ethnicity, national origin, gender, income level, disabling condition, proficiency in English, or athletic ability
❖May limit admission to a given age group, grade level, or single gender and may refuse to admit pupils expelled from another school
❖ Research however, shows that most charters do not educate the same numbersCharters Accept All, Right?
❖ State funding formula divides SPED students into two categories ❖ Group A = mild needs such as speech impairment or dyslexia
Group B = significant hearing or vision impairments, autism or intellectual disabilities
❖ Formula created in 1980s before school choice options existed
and assumes Group A students spread evenly among all schools
❖ Every district and charter gets extra funding for each student
enrolled, regardless of # of SPED students attending
❖ For every $1 districts get for SPED students, they spend ~$1.50 ❖ 2016 amount = $241 per high school student and $362 per K-8
Charters Accept All, Right?
❖ Of 50 districts and charters with the largest positive funding
gap per student, 45 are charters
❖ 16 Basis charter schools SPED population is 5X lower than
the average of schools and combined, they get $3.4M more per year in state funding than they spend on SPED students*
❖ 2017 ACLU charter report, found “illegal or exclusionary”
enrollment practices in AZ that recently forced documentation and policy changes at almost 100 charter schools in state**
*https://www.azcentral.com/story/news/politics/arizona-education/2017/10/05/arizona-special-ed-funding-benefits-schools-fewest-special-ed- students/649712001/ **https://www.azcentral.com/story/news/local/arizona-education/2018/07/12/arizona-charter-schools-get-more-state-funding-pay-their-teachers- less/686900002/Two Charter Goliaths
❖ Mom and Pop schools dominated the first wave, but now the big boys rule ❖ Between 2014 to 2017, just 10 charter companies, including Basis and Great Hearts,accounted for 73% of the growth in students attending AZ charters
❖ Basis and Great Hearts combined, educate about 30,000 of AZ’s one million students, andhave already tapped almost 2/3rds of construction loans given to 500+ charter schools
❖ Basis founded in 1998 ❖ Has 22 campuses in Arizona, three in Texas andin country with a waiting list of 5,775 students
❖ Great Hearts opened in 2004 ❖ Has 22 schools in the Phoenix metro and seven more in Texas ❖ Say they have 12,000 students waiting for a spot https://www.azcentral.com/story/news/local/arizona-education/2018/12/16/arizona-rise-big-charter-schools-fueled-powerful-friends/ 1822430002/The Special Hookup
❖ Governor Ducey announced policies last year to help the “big boys”
❖ One gave more cash to schools with students who passedAP and International Baccalaureate exams — the primary focus of a Basis high school education
❖ A second gave extra money to schools with highstandardized test scores, measures at which Basis and Great Hearts excel
❖ A third program provided low-interest construction loans topublic schools as Basis and Great Hearts were adding campuses
❖ Unfortunately, 53% of students at charters that received performance
funding were white versus 38% enrolled statewide and only 25% were Latinos although they account for 45% of enrollment statewide
https://www.azcentral.com/story/news/local/arizona-education/2018/12/16/arizona-rise-big-charter-schools-fueled-powerful-friends/ 1822430002/District vs. Charter Funding
https://www.azcentral.com/story/news/local/arizona-education/2018/12/15/what-does-take-open-charter-school- arizona/2284765002/Funding Differences
Type School District Charter Funding Sources
❖ Property tax collections ❖ State General Fund (equalization) ❖ Federal Funding ❖ Locally-Supported Funding (Bonds,Overrides, Deseg)
❖ Tax Credit Donations ❖ School Facility Board (less than 1% oftotal education funding dollars)*
❖ State General Fund ❖ Additional Assistance ($1,700-$2,000more per student than districts)
❖ Tax Credit Donations ❖ Federal Funding ❖ Fees requested of Parents2017 Amounts Per Pupil
❖ State = $6,748 ❖ Local/State/Federal = $9,474 ❖ State = $5,389 per student ❖ Local/State/Federal = $8,523Rest of the Story
❖ Only 28% of students live in districtsthat can reliably secure local funding
❖ When students leave district for anotherreceiving 27% of state education dollars
*https://www.azcentral.com/story/news/local/arizona-education/2018/07/12/arizona-charter-schools-get-more-state-funding-pay-their- teachers-less/686900002/Spending Differences - Administration
❖ District schools spend approx. 75% of revenue inclassrooms (only 10.4% on administration in FY2017)*
❖ Charters spend at least twice as much on administration** ❖ Profit off large management fees (BASIS had $10M no bidmanagement deal with founders)
❖ No-bid deals to furnish IT services or facilities forthemselves
❖ Spent $57M more on administration than if thestudents had been in district schools
❖ BASIS alone spent $13M more on administration in2014-15 than a public district of same size***
*https://www.azauditor.gov/sites/default/files/18-203_Report_with_Pages.pdf **https://www.azcentral.com/story/news/politics/fact-check/2015/10/13/arizona-charter-spending-fact-check/73518748/ ***http://www.azcsa.orgAccountability Differences
Type School District Charter Budget
❖ Must run deficit-free, have restrictions as tohow much can be carried over
❖ Administrator’s salary negotiated in publicand published
❖ Debt restricted by capacity for local support ❖ Allowed to run deficits and pay outdistributions (for-profits) even when “in the red”
❖ Compensation for executives isunchecked
❖ Allowed to exist with excessive debt/income ratios Audit
❖ Must undergo annual comprehensive state-run audits
❖ Are included in AG’s annual districtefficiency report
❖ Are subject to detailed performance auditby same that requires district to appear before legislative committee
❖ Must have annual audit performed byauditor of their choice
❖ By law, state auditor general can’tmonitor charters
❖ Not included in AG’s annual districtefficiency report
❖ Only state agency receiving public fundsnot monitored by AG
*https://www.azcentral.com/story/news/local/arizona-education/2018/12/17/arizona-charter-schools-spend-more-district-school- admininstration/2015982002/#Accountability Differences
Type School District Charter Procurement Rules
❖ Districts must obtain competitive bids ❖ District employees or board membersmay not accept “gifts” not provided to public at large
❖ 90% have waivers exempting themfrom competitively bidding out contracts and purchases
❖ Are not held to same gifting lawsFinancial Reporting
❖ Must submit annual audit results to AZAuditor General
❖ Accounting must follow UnifiedSystem of Financial Records (USFR)
❖ 25%+ of charter operators outsourceadministration to private companies, shielding finances from the public
❖ The private companies are oftenexemptions from the USFR
*https://www.azcentral.com/story/news/local/arizona-education/2018/12/17/ arizona-charter-schools-spend-more-district-school-admininstration/2015982002/# **http://www.azcsa.org/uploads/3/9/2/3/39234099/charter_pp_pdf..pdfGovernance Differences
Type School District Charter Board
❖ Locally elected ❖ Not paid ❖ Don’t really “govern” but set policies ❖ Self-appointed board may have only onemember (may be CEO)
❖ Unlimited compensation allowed ❖ May be non- or for-profit ❖ Religiously affiliated group may operate/govern Ownership of Facilities & Assets
❖ State of Arizona ❖ Usually privately owned (can be by CEO) ❖ Then leased to school at taxpayer expense ❖ All land, buildings, instructional materials,and equipment purchased by the charter school become sole property of the charter holder, even if the school goes bankrupt*
http://www.azcsa.org/uploads/3/9/2/3/39234099/charter_pp_pdf..pdfGovernance Differences
Type School District Charter Open Meeting Law
❖ Decisions of Boardmust be made in meetings open to public
❖ No requirements for board meetings ❖ Don’t follow Open Meeting LawNepotism
❖ Hiring of relatives isnot allowed
❖ Allowed and prevalent especially atmanagement level (related party contracting)
Operational Differences
Type School District Charter Transportation
❖ Must be provided ❖ Not required to provideParental Involvement
❖ Districts work hard to includeparents but are often not successful
❖ Charters often insist parentsvolunteer a certain number of hours per month Teacher Hiring
❖ Required to hire state-certified teachers unless they can prove they aren’t available
❖ 16/17 Avg salary = $48,372 ❖ Not required to hire state-certified teachers
❖ 16/17 Avg salary = $41,066Operational Differences
Type School District Charter Curriculum
❖ State Board of Educationrequired to prescribe a minimum course of study incorporating adopted academic standards
❖ Must provide a comprehensiveprogram of instruction but can have special emphasis
❖ Not required to followcurriculum guidelines stipulated for district schools,
❖ Students must take all statetests School Lunch
❖ Provide school lunch andmany also provide breakfast
❖ Not required to provideCharter Student Achievement
❖ A Brookings Institute study in 2014 said:“in Arizona, for example, on average, charter schools do no better, and sometimes worse than traditional public schools”
❖ Half of charter schools outperform theirneighboring district school, when compared using the state’s letter-grade system
❖ 77% of charter high school studentsgraduate in four years, districts graduate 88% in that time
❖ Charters are doing well on Az MERIT, butvalidity of any conclusion questionable
https://www.azcentral.com/story/news/local/arizona-education/2018/12/17/arizona-charter-schools-spend-more-district-school-admininstration/ 2015982002/#So What Needs to Change?
Bottom line: Where public funds are spent
and transparency MUST be the same!
❖ Bill sponsored by Rep. Kelly Townsend (R-Mesa) to require charterscomply with Open Meeting Law, but won’t help unless they are required to have meetings
❖ Also need to (at least) match district rules for: ❖ Procurement and purchasing ❖ Audits and reporting to AZ Auditor General (to include efficiencyreports)
And Speaking of Public Funds…
Arizona needs to ensure the schools where 83% of our students are educated are adequately funded before we continue to shift resources to charters and private schools
School Choice ABC Charter District School#RedForEd Helped
Funding Increases for FY 2019
Name % Increase Avg Teacher Salary Amphi 9 $43,122 Altar Valley 10 $43,260 Basis OV 10 $42,573 Catalina Foothills 10 $51,057 Flowing Wells 9 $48,914 Marana 10 $38,738 Oracle 10 $53,856 Sahuarita 19 $55,421 TUSD 9 $45,303
Governing Boards worked hard To give teachers the 10%
https://www.azcentral.com/story/news/politics/arizona-education/ 2018/07/30/arizona-teacher-raises-vary-widely-doug-ducey-legislature- education-funding-district-charter/850571002/Funding Increases for FY 2019
But…
❖ Funding is still short of 2008 levels by:
What Is the Answer?
❖ We must have a commitment at highest levels to:
❖ Equity of opportunity for all AZ students ❖ View education expenditures as investment ❖ Hire high-quality educators, pay to retain, and
trust them to do their job
❖ Voters MUST be informed and engaged ❖ We must all demand full accountability and
transparency
What You Can Do
Make No Mistake…
❖The war on public education is a systematic, concerted effort to:
❖Redirect $500 to $700B in funding for public ed to private entities ❖Eliminate local control and public voice in education
❖Whether by design or by default, these actions are destined to
ensure an oligarchy, not a democracy
❖Privatizing public education primarily serves those who “have” at
the expense of those who “have not”
❖The will continue to weaken our democracy as it solidifies power
and influence with those at the very top
Immediate Past President, Arizona School Boards Association
Linda Lyon
Blog: www.RestoreReason.com
lindalyon1222@gmail.com 520.818.8024