Showing posts with label White Hat Management. Show all posts
Showing posts with label White Hat Management. Show all posts

Wednesday, January 29, 2014

You Can Become a Millionaire if You Go into Education!

Suppose we could say to the young: “You should go into teaching. Someday, you can be a millionaire! You can be the next Nathaniel A. Davis!”

Corporate education. That’s the ticket!

Before we turn to Mr. Davis, however, we need to set the background. This week Senator Lamar Alexander of Tennessee offered up the latest in a long string of schemes to fix the public schools. Teachers, I imagine, might wonder, “Shouldn’t education in this country already be fixed? How many plans have politicians put forward?”

Ignore that conundrum.

Alexander was Secretary of Education under President George H. W. Bush.
(At no time in his life did he ever work in education.)
By the way:  the answer to that question was "no."


Here’s the bold new plan—not to be confused with previous bold new plans. Such as: No Child Left Behind. Mr. Alexander wants Congress to free up federal funds for 11,000,000 students from low-income families. Not new funds. No, Alexander is a fiscal hawk. His idea is to take away money the public schools receive. Then he wants to give it to parents to spend so they can enroll their children in schools of their choice. Choice! That’s what makes America great. Well, not counting parents who are gay or lesbian and might want to choose whom they marry.

Ignore that too.

What Senator Alexander wants is to divert $24 billion in funding. That’s 41% of federal dollars spent on K-12 education. Or: $2,100 per child.

Under his plan states might use the money to:

a) Help low-income students attend public schools outside their neighborhoods.
b) Fund individual scholarships to help pay private school tuition.
c) Attend charter schools, including “for profit” institutions.


Choice is cool! Like: would a member of Congress rather go to a fine restaurant with a lobbyist and eat a $150 meal? Or—since the GOP savaged the food stamp program—would a low-income person rather eat stale donuts scrounged from a dumpster?

Anyway, how would this plan work? Suppose a low-income family hopes to send a daughter to Summit Country Day High School here in Cincinnati. Let’s do the math:

Cost of attending Summit Country Day (9th grade): $19,050

Federal money available:                                              2,100

Shortfall:                                                                    $16,950


Oh, so close! Sadly, the aspiring low-income student still can’t get into the elite school and rub elbows with upper crust children. And by the way, could we not raise the minimum wage, which would be communism or something. And damn! Who thinks low-income families should be covered by health insurance!

Not Senator Alexander.

Sure. The GOP loves helping low-income children.

Or could it be that Republicans secretly hope to privatize all schools—and break up teachers’ unions as a bonus? Perhaps Republican hearts don’t pump red. Perhaps they pump green.

Here in Ohio, we know the answer. Meet David Brennan, operator of White Hat, a charter school chain with almost fifty franchises.

No, I mean schools.

Brennan cares about dollars. No, no, I mean kids. That’s why he has a $6 million mansion down in Naples, Florida. Because Brennan cares about living in lux…no, about children. He loves them so much he is willing to go out of his way to host fund-raising dinners in Florida for hard-working Ohio politicians.

Another neat White Hat trick, when franchises fail...ahem, schools...is to close them. Then they reopen with cool new names, in the same buildings, with much the same staff, so that profits for Mr. Brennan are impossible to kill. Kind of like zombies.

How does Brennan prove his love for Ohio kids? According to the Akron Beacon Journal he and his wife Ann contributed $3.8 million to fifty-one politicians between 2004 and 2012. Almost every cent went to GOP lawmakers.

Really? Why would anyone be surprised? Where education and profit clash education loses. Read up on the shyster tactics used by major for-profit colleges. Or consider the shady operations of for-profit charter school chains in Pennsylvania.

At least you’ll get a laugh for your tax dollars.

Today, however, let’s follow the money under Alexander’s plan and see where it ends. Let’s look at how K-12 Inc., a for-profit virtual education company does business. K-12 was started in 1999. Its founders were two giants in education. Okay, I’m messing with you. Founders were Michael Milken, one-time junk bond king, and Ronald Packard, a hedge fund banker.

The first chairman of the K-12 board was Bill Bennett. Like Senator Alexander, Bennett was a former U. S. Secretary of Education. But he was forced to resign in 2005 after suggesting that if you wanted to lower the U. S. crime rate you could abort every black baby. He quickly added that this would be reprehensible. Still, “your crime rate would go down.”

In other words, these are the kind of people you know are going to devote themselves to helping low-income families. In 2013, K-12 took in $848 million. And 86% ($731 million) came out of the pockets of taxpayers.

Helping children is hard. Every teacher knows. So you have to pay to keep quality employees. You have to pay Packard $19,489,223 for five years if you want to be sure he keeps helping. You have to pay his chief financial officer $3.3 million in 2013.

You need an executive chairman—a man who would never enter the field unless he was sure he could help children. And get paid $9.5 million in 2013. So let’s hear it for Nathaniel A. Davis. There’s no educator who cares more about young people than Davis does! In fact, the top eight educators at K-12 needed $21.4 million to get by just last year.

What’s the moral of this story? Obviously, Congress should listen to Senator Alexander. Federal dollars must be shoveled in this direction. We need to support the efforts of these heroes in education.

Do some math for fun:

Figure the first 1,810 children who use federal money ($2,100) will help Brennan provide fresh campaign donations to GOP politicians.

The next 2,857 will use grant money to ensure that Brennan can live in a mansion in Florida.

The next 4,524 will use their funds so that Davis can be fairly compensated in 2014.

Finally, 9,281 low-income children will use their grant money to make sure that Ronald Packard sticks around for another five years and keeps doing what he does so well.

In other words, let’s make sure Packard keeps helping kids get the best education our tax dollars can buy.



Sunday, September 1, 2013

Ohio Charter Schools Suck: GOP Lawmakers Still Love Them

Here in Ohio we are blessed, I tell you, with a governor and lawmaking body that love charter schools. Why? Because our representatives love children? Because charter schools do a better job, measured by standards mandated by that very same lawmaking body?

Nope. Try again.

Here are how regular public schools measured up, with charter schools listed separately, in this year's state report card:


(CHARTERS IN RED, ABOVE.)

Well, then, do our GOP representatives love charters because they devote more resources to helping kids who need help?

Fat chance.


(CHARTERS IN RED, ABOVE.)

As the chart above shows charters tend to pay school founders and school leaders well for their less-than-stellar efforts. And why not? Isn’t education about profits?

What? You say it’s not?

Someone probably needs to break the news to David Brennan. Here in Ohio and elsewhere Brennan operates White Hat, a charter school chain, with almost fifty franchises. No, I mean schools. 

Brennan cares about dollars. No, no, I mean kids. That’s why he has a $6 million mansion down in Naples, Florida. Ha, ha, because Brennan cares about living in lux…no, about kids. In fact, he loves kids so much he is willing to go out of his way and host fund-raising dinners down in Florida for Ohio hard-working GOP politicians.

Another neat White Hat trick, when franchises...no, no, no...control your sarcasm...when schools fail...is to close them down and reopen them with cool new names, in the same buildings, with much the same staff, so that profits for Mr. Brennan are almost impossible to kill, kind of like zombies.

Kids. Sure. Brennan loves ‘em.

How to show this love? According to the Akron Beacon Journal this summer Brennan and his wife Ann contributed more than $3.8 million to fifty-one politicians between 2004 and 2012. Those who gained the most in these transactions?

Ohio’s school children.

Ha, ha! I’m joking!

Actually, the main beneficiaries included Ohio Senate President Keith Faber, Ohio House Speaker William Batchelder, the Republican Party—because no one loves kids more than the GOP (unless they need health insurance)—and, of course, good old Governor John Kasich, who never saw a fund-raising dollar within reach he didn’t want to grab.

It probably comes with his Wall Street background.

So, try again. Why do our leaders love charter schools?

Well, let’s just say they have 3.8 million reasons to love them—even if charter schools really, really, really, really suck.

You can’t say those  bought-and-paid-for legislators haven’t earned their money, though. When Brennan’s chief lobbyist sent lawmakers a list of changes his boss hoped to see in one school funding bill the Ohio General Assembly partially or fully implemented nine of eleven proposals Brennan had deemed “most important.”

As noted in a story by the Columbus Dispatch, Brennan did even more to help lawmakers do right by the children of the state: “Later, [his] lobbyists prepared actual legislative wording to carry out their requests. House staff members frequently checked with the lobbyists to make sure the evolving language and later amendments were acceptable.”

In fact, before you could click your ruby red slippers together three times and say, “Can I have some more campaign cash, please?” Tom Needles, White Hat’s chief lobbyist, was providing pre-written amendments to be included in the proposed legislation. 

Well, did it work—all this helping lawmakers—so that lawmakers could help Brennan—so  Brennan could help kids?

You bet it did. 

The Beacon Journal noted recently that under a new Ohio Senate proposal, charter schools in the state would see a $22 million increase in funding for this school year, even if enrollment did not change. 

Meanwhile most regular public schools—with less effective lobbyists—and less ready cash to dispense—were seeing cuts.

Hey, don’t worry, though. Here in Ohio the operators of charter schools…no, I mean, politicians…no, I mean, the school children...are doing great.


Addendum: 

A variety of sources can be consulted to verify statistics show in the graphs, including this article from the Columbus Dispatch.

Even better, these grades do not include the 150 Ohio charter schools that have closed in recent years for financial or academic reasons.

See:  Innovation Ohio for original graphs, including the on administrative spending.

Friday, May 27, 2011

Governor Kasich and the Business Model in Education Perfected

      
IF YOU LISTEN TO THE EXPERTS TALK (people who almost never actually teach) about how to “fix” America’s “failing” schools, you notice certain terms are accepted without question. Inner-city schools, where graduation rates are low, are “dropout factories.” 

CNN does a series on education and repeats the phrase “school crisis” so often you think the End Times are coming. 

And if you turn in to Fox News you hear Hannity and O’Reilly and Beck (when he’s not busy weeping) talking sagely about saving public education by following the “business model.”

If we’re going to go in this direction, as Governor Kasich here in Ohio and Scott Walker in Wisconsin and Chris Christie in New Jersey seem to want, it might be important to know what this means. Are we talking business-like efficiency? Or profit above all? Or do you mean that schools should copy business morality?  

Do we copy, for example, British Petroleum?  

True: it would take effort to blow up an entire school and sink it in the Gulf of Mexico, killing eleven teachers in the process, but cutting corners on safety and spreading toxic waste would be an interesting “business model” in education. 

The possibilities are endless. You might copy the tobacco companies, which insisted for decades that their products weren’t harming anyone. Teachers could pitch product like companies selling male-enhancement pills. School districts could start paying $473 million to lobbyists to get laws and breaks they want from the legislature, just like the finance, insurance and real estate industries did in 2010. 

Oh, wait:  White Hat Management, the largest for-profit charter school operator in Ohio has already been accused of bribing public officials and corrupt financial practices. Probably makes Governor Kasich, an old Lehman Brothers hand, get misty-eyed for the “good old days” when he and his friends were derailing the U. S. economy. 

Cincinnati Bengals Business Model?
If nothing else, there’s always the National Football League, one of the most successful business models in America today. It might be wise to study their play book. Why not, for example, charge students “seat licenses” before they sit down in our classes? Is that what we mean? Why not stop students from bringing their own food into the cafeteria and sell hot dogs in the lunch-room for $4.50. Meanwhile, shut off the water fountains and charge kids for bottled water.

 

That way you can be like Mike Brown and the Cincinnati Bengals and put out a crappy product and still make a fortune.  

IF SCHOOLS ARE GOING TO FOLLOW THIS PATHWAY how will it work in the end? Schools don’t have a chance of making a profit on handicapped kids. So, do we deny entry based on pre-existing conditions, like health insurance giants? Do we follow the tactics of the banking industry? You issue students debit cards to buy paper, pens, and pencils. Say:  the child needs a mechanical pencil to complete a math exam. His account is short on funds. He uses his debit card, pays 49¢ for the pencil, and the school charges $38 for an overdraft fee.

The airlines are another source of inspiration. We tell kids:  “You want to bring that book bag on this bus? It’s going to cost you $25 extra.” And that’s only one way! Oh: and you want to change your class schedule? We’re going to have to charge a $150 booking fee. 

We want schools to cut administrative costs. Let’s use HMO’s as a guide. We start routing phone calls from parents through press 1, press 7, press 6, press 4, press 1, press 5, get put on hold, get disconnected, and start all over again. Finally, mom or dad reaches someone with a foreign accent. 

Consider the case of Pennsylvania Judge Mark A. Ciaverella, Jr., if you want to know what might go wrong as we privatize schools and run them for profit. Judge Ciavarella was found guilty in February, 2011, on a dozen charges, including money laundering and racketeering in a $2.8 million dollar scheme to funnel juveniles into two privately-owned prisons.  

In what prosecutors labeled a “cash for kids” scam, each young defendant was seen as a unit of profit and the more prisoners the judge “produced” the more prison owners profited.  

Ciavarella received $1 million in kickbacks, and sentenced thousands of youths to jail, including one high school girl who earned three months behind bars after creating a Web page spoofing an assistant principal. Another teen went to jail for stealing a jar of nutmeg. 

A second judge involved took a plea deal, as did the builder of one of the detention facilities, and 6,000 juvenile records had to be expunged. 

In the end, the best example might be for-profit colleges like the University of Phoenix—where we can actually study how the business-as-education model works. These kinds of schools enroll 12% of higher education students in the United States. Those students receive nearly a quarter of all federal student aid, which accounts for more than 80% of revenue at for-profit colleges. Unfortunately, many students who attend for-profit colleges graduate with no marketable skills and make up nearly half of all federal student loan defaults.  

If Republicans law makers have their way, perhaps we can go back in time to the good old days. Let companies that run schools make teachers live in company-owned homes in company-run towns. (There won’t be any teachers unions to stand in the way.) When companies perfect the system they can pay teachers in scrip, like coal mining companies used to pay workers in the 20s, and that scrip would only be good at the company store.  

You total up the bill at the end of the month—groceries, rent, utilities—and what do you know? The teacher owes the company money or ends up with only a few pennies. 

IF YOU ASK GOVERNOR KASICH or the shills at Fox News the system at that point is perfected.