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ECOT Is Lucrative For Columbus Politicians

Plunderbund has some interesting ideas, prompted by a Dispatch article, on how to reform ECOT - Ohio's largest charter school network. Here's the heart of the Dispatch piece

ECOT now has more students than Canton, Dayton, Dublin or Westerville schools. It is the state’s 10th-largest district. And growth came for ECOT despite its consistently low state report-card results: It ranks among the worst-performing schools in the state.

“The growth has been huge,” said Aaron Churchill, who is Ohio research director for the Thomas B. Fordham Institute. It has offices in Columbus and Dayton and sponsors charters but criticizes weak oversight and poor-quality schools. “There are clearly a lot of questions about the quality of the education they’re putting out. I’d be curious to know why parents are selecting it.”

ECOT’s tax revenue grew in step with its enrollment, to $112.7 million, 90 percent of which is funded by the state. Charter schools are funded with tax dollars but often are privately run.

According to a state financial audit made public last week, ECOT paid $21.4 million last year to the two for-profit companies Lager formed to serve the school — nearly one-fifth of the school’s total revenue.

IQ Innovations, Lager’s software firm, sells the IQity online-learning platform to ECOT as well as to other schools and districts elsewhere in the country. Altair Learning Management is Lager’s school-management firm, and it oversees ECOT’s day-to-day business, including hiring and firing.

ECOTs poor performance is nothing new to those who have been paying attention, but the criticism coming from the Dispatch is.

Plunderbund has some suggestions to reform ECOT

  1. Change The Leadership: It’s evident, based on the long history of underachievement at ECOT, that new leadership is needed. We recommend that the Governor create a commission to replace the existing ECOT school board. In addition to the school board, ECOT’s management company, Altair Learning, which has received over $56 million dollars over the past 14 years, has demonstrated no proven ability to improve the learning environment in order to improve the graduation rate, so should be fired immediately.
  2. Change The Curriculum: Bolstering the case that the school’s contract with Altair Learning should be terminated immediately is the management company’s adoption of IQ Innovations as the sole provider of an online curriculum. In FY14, IQ Innovations was paid $17.3 million for providing the curriculum for the 6th straight year, upping their total compensation to $69,846,154. Spending just shy of $70 million on a curriculum that is resulting in students demonstrating significantly below expected growth (based on Ohio’s value-added measures) is a gross misuse of public dollars and should cease immediately. Six years of low growth, low achievement, and low graduation rates is more than enough to demonstrate that the curriculum is wholly ineffective at obtaining the desired outcomes.
  3. Open The Books: State Auditor Dave Yost should be called on to immediately conduct a multi-year and comprehensive review of ECOT’s financial operations. With Altair Learning and IQ Innovations having the same principal owner (William Lager, also the founder of the school), Ohio’s taxpayers need to be assured that the contracts between ECOT and the two companies followed all appropriate laws surrounding the use of public monies and any and all contracts were bid appropriately. In addition, Yost needs to conduct a multi-year investigation into ECOT’s attendance and grading practices to ensure that all enrollment numbers have been reported with the highest integrity as it is these self-reported figures that dictate the allocation of taxpayer dollars to ECOT (and away from other school districts).
  4. Parent Takeover: ECOT should be immediately subjected to a parent takeover provision in state law and a non-partisan entity, say StudentsFirst, should be empowered to help coordinate the effort. ECOT will be required to notify all parents of the opportunity, with StudentsFirst serving to help organize the interested parties.
  5. Break It Up: In order to best facilitate a parent takeover and manage the district more effectively, ECOT should be broken up from one large, single school, into regional entities or sub-districts, each of would then be eligible for a takeover by parents, who could then bring in their own management company or more effective charter school organization.

There's some pretty good ideas there. But we're skeptical any meaningful change is going to come. Ohio is at a crossroads with charter schools. We can either have a smaller number of higher performing schools ran by non-profit sponsors, or we can continue to have a for-profit low performing wild west. Any sensible person would ick the former, but sensible people aren't plied with hundreds of thousands of dollars to think otherwise.

Back to the dispatch piece again

And ECOT’s founder, Lager, has spent at least $1.13 million on Ohio campaigns in the past five years alone. Lager could not be reached for comment, and his spokesman said he couldn’t reach him, either.

That’s more — on Ohio politics, anyway — than was spent by David Brennan, the well-known Akron charter entrepreneur who lobbies heavily on behalf of his White Hat schools group. During the same time period, Brennan donated about $820,000, according to campaign-donation records kept by the Ohio secretary of state.

For the past three years, Lager has funneled more than $200,000 per year to mostly Republican officeholders, including William G. Batchelder of Medina, the outgoing speaker of the Ohio House. The largest single donations went to the Ohio Republican Party.

Political contributions also were made through Lager’s two privately held companies. Since 2009, IQ Innovations has sent more than $154,000 to Ohio political candidates and groups. Altair’s contributions totaled about $38,000.

The Dispatch understates the largesse of Lager. We took at look at the campaign finance reports, published on the Secretary of States website (which inexplicably only go back to 2009)

Candidate Total Contributions
CITIZENS FOR CHERYL GROSSMAN $46,310
BATCHELDER FOR REPRESENTATIVE COMMITTEE $42,500
MATT HUFFMAN FOR STATE REPRESENTATIVE $42,500
CITIZENS FOR SEARS $40,000
FRIENDS OF FABER $32,981
CITIZENS FOR BUCHY $31,544
CITIZENS FOR AMSTUTZ $30,000
COMMITTEE TO ELECT JOHN ADAMS $30,000
THE COMMITTEE TO ELECT CLIFF HITE $29,156
COMMITTEE TO ELECT CHRIS WIDENER $24,500
COMMITTEE TO ELECT CLIFF ROSENBERGER $24,311
CITIZENS FOR STEPHANIE KUNZE $23,044
CITIZENS FOR OBHOF $21,500
FRIENDS OF TOM PATTON $21,500
CITIZENS FOR DUFFEY $15,000
COMMITTEE TO ELECT PETER STAUTBERG $15,000
CITIZENS FOR MIKE DOVILLA $12,156
CITIZENS FOR REZABEK $12,156
CITIZENS TO ELECT KYLE KOEHLER $12,156
FRIENDS OF BILL REINEKE $12,156
FRIENDS OF RYAN SMITH $12,156
TIM GINTER FOR STATE REPRESENTATIVE $12,156
OELSLAGER FOR OHIO COMMITTEE $11,500
CARLE FOR STATE REPRESENTATIVE $11,000
COMMITTEE TO ELECT NIEHAUS $11,000
ELECT DEVITIS $10,500
CITIZENS FOR CALLENDER $10,000
COMMITTEE TO ELECT JEFF MCCLAIN $10,000
FRIENDS OF ARMOND BUDISH $10,000
FRIENDS OF JAY GOYAL $10,000
GARRISON FOR OHIO $10,000
VOTE DAMSCHRODER (REX) $10,000
YOST FOR AUDITOR $10,000
LAROSE FOR SENATE $8,000
CITIZENS FOR WAGONER $7,000
FRIENDS OF GARY W. CATES $7,000
ROMANCHUK FOR STATE REP $5,500
BRIAN D HILL FOR STATE REPRESENTATIVE $5,000
BUTLER FOR OHIO $5,000
CITIZENS FOR BROWN $5,000
CITIZENS FOR MCKENNEY $5,000
CITIZENS FOR SCOTT RYAN $5,000
CITIZENS TO ELECT TONY BURKLEY $5,000
COMMITTEE TO ELECT BLESSING $5,000
COMMITTEE TO ELECT DOUG GREEN $5,000
COMMITTEE TO ELECT LYNN WACHTMANN $5,000
FRIENDS OF TIM DERICKSON $5,000
LATOURETTE FOR OHIO $5,000
PETERSON FOR GOOD GOVERNMENT $5,000
STEBELTON FOR STATE REPRESENTATIVE $5,000
TERRY JOHNSON FOR STATE REP $5,000
TROY BALDERSON FOR STATE SENATOR $5,000
CITIZENS FOR BUEHRER $4,000
FRIENDS OF SHANNON JONES $4,000
CITIZENS FOR STINZIANO $3,500
O'CONNOR FOR SUPREME COURT $3,450
RE-ELECT JUSTICE LANZINGER COMMITTEE $3,450
RE-ELECT JUSTICE O'DONNELL (TERRENCE) $3,450
CITIZENS FOR KEVIN BACON $3,000
CITIZENS FOR GARDNER COMMITTEE $2,500
CITIZENS FOR MCCOLLEY $2,500
TEAM BURKE $2,500
FRENCH FOR JUSTICE $2,000
CITIZENS FOR CAREY $1,395
DAVID YOST FOR AUDITOR OF STATE $1,395
COMMITTEE TO RE-ELECT JUDGE SUSAN BROWN $1,000
FRIENDS OF MARLENE B. ANIELSKI $1,000
COMMITTEE TO ELECT BILL HARRIS $725

For those counting, that's a couple hundred dollars short of $800,000 - all to Republican candidates. What begins to give the game away is who is getting the money. For the longest time, Speaker Batchelder received the biggest share, but with his retirement, that benefit now goes to incoming Speaker, Cliff Rosenberger. Despite being elected to the House in 2011, Lager only began contributing to Rosenberger once he became Speaker - the most powerful legislative office in the General Assembly.

The Story of Lager's political contributions do not end here, however. He has also contributed hundreds of thousands of dollars to the Republican party since 2009

Year Contribution Date Amount Committee
2014 11/3/14 $12,155.52 REPUBLICAN SENATE CAMPAIGN COMMITTEE (RSCC)
2014 10/27/14 $10,000.00 OHIO REPUBLICAN STATE CENTRAL AND EXECUTIVE COMMITTEE STATE ACCOUNT
2014 10/14/14 $10,000.00 OHIO HOUSE REPUBLICAN ORGANIZATIONAL COMMITTEE OHROC
2014 4/25/14 $36,000.00 OHIO REPUBLICAN STATE CENTRAL & EXECUTIVE COMMITTEE STATE CANDIDATE FUND
2014 4/25/14 $20,000.00 OHIO REPUBLICAN STATE CENTRAL AND EXECUTIVE COMMITTEE STATE ACCOUNT
2014 4/25/14 $4,000.00 OHIO REPUBLICAN STATE CENTRAL AND EXECUTIVE COMMITTEE STATE ACCOUNT
2014 12/20/13 $13,750.00 OHIO REPUBLICAN STATE CENTRAL & EXECUTIVE COMMITTEE STATE CANDIDATE FUND
2014 12/20/13 $13,750.00 OHIO REPUBLICAN STATE CENTRAL AND EXECUTIVE COMMITTEE STATE ACCOUNT
2013 6/20/13 $1,500.00 OHIO REPUBLICAN STATE CENTRAL AND EXECUTIVE COMMITTEE STATE ACCOUNT
2013 6/5/13 $15,000.00 OHIO HOUSE REPUBLICAN ORGANIZATIONAL COMMITTEE OHROC
2013 5/30/13 $15,000.00 REPUBLICAN SENATE CAMPAIGN COMMITTEE (RSCC)
2013 5/23/13 $411.50 REPUBLICAN SENATE CAMPAIGN COMMITTEE (RSCC)
2012 10/5/12 $17,000.00 OHIO HOUSE REPUBLICAN ORGANIZATIONAL COMMITTEE OHROC
2011 12/31/11 $17,000.00 OHIO HOUSE REPUBLICAN ORGANIZATIONAL COMMITTEE OHROC
2010 10/21/10 $11,000.00 FRANKLIN COUNTY REPUBLICAN STATE CANDIDATE FUND
2010 10/18/10 $17,000.00 REPUBLICAN SENATE CAMPAIGN COMMITTEE (RSCC)
2010 10/1/10 $17,000.00 OHIO HOUSE REPUBLICAN ORGANIZATIONAL COMMITTEE
2010 8/10/10 $24,000.00 OHIO REPUBLICAN STATE CENTRAL & EXECUTIVE COMMITTEE STATE CANDIDATE FUND
2009 5/18/09 $17,093.00 REPUBLICAN SENATE CAMPAIGN COMMITTEE (RSCC)
2009 2/26/09 $10,000.00 HOUSE DEMOCRATIC CAUCUS FUND

You'll notice the sole contribution to the Democrats in 2009 - a year they briefly held the House

. All told well over a million dollars in political contributions in just 5 years. None of this accounts for contributions from other E-COT employees, such as Scott Kern the CEO of ALTAIR, or Melissa Vasil the Director of Operations. These contributions add up to tens of thousands of dollars too - again all to Republican candidates.

This is why we remain skeptical that Columbus lawmakers are going to be willing to do what is necessary to truly reform Ohio's charter school boondoggle, the current racket is simply too lucrative.

We'll be proven wrong when William Lager and David Brennan need to find new lines of business.

Ohio charter schools: More closures, less openings signal high-water mark in 2014

Last year was pivotal for Ohio’s charter school movement — never had so many closed or so few opened.

The 2014 uptick in closures — led by 17 in Columbus — and a slump in openings — only 11 opened following 56 the year before — indicate that the groups sponsoring these publicly funded and privately run schools are rejecting some low-performers and applying heightened scrutiny before approving new ones.

As the state’s fiscal auditor and private research groups have reported inordinate amounts of misspent taxpayer dollars and low academic performance in Ohio charter schools, the slowing of the movement is in part a result of Ohio education officials cracking down on sponsors.

“Before I think we were pretty lax in what we were asking them to submit. Now we’re making sure that all those inspections are done, all the teachers are certified, all that stuff is in place before we let a school open,” a spokesman for the Ohio Department of Education has said.

Four of the 11 new charter schools, including Steel Academy in Akron, have been sponsored by the state. The remaining seven are mostly sponsored by private, nonprofit groups.

None of the 11 new charter schools has closed, though planned and actual enrollment figures reported to the state indicate at least four are operating below their enrollment goals, which determine operating revenue. Between June 2013 and June 2014, 32 Ohio charter schools closed, most voluntarily for financial reasons. Only nine had been open for more than a full academic year, signalling a spike in the failure rate of first-year schools.

A net loss of charter schools also has curbed statewide enrollment and the steadily increasing transfer of state funding from traditional public schools to charter schools.

(Read more at the Akron Beacon Journal)

Top 4 Education Stories of 2014

There were a lot of big education stories in 2014. The 5of8 fight, school shootings continuing to happen is still unacceptable, big increases in local levies due to budget cuts, disgraceful behavior by State Board of Education members, disgraceful behavior by ODE officials, 3rd grade reading guarantee comes online and Ohio's K-12 technology for implanting a lot of policy didn't. Here's our top 4 stories from 2014.

4Common Core Push Back

2014 was the year when resistance to the Common core State Standards became a mainstream phenomenon. Initially 46 states signed up to the standards, but at least 12 of them have repeal legislation pending in some form. In Ohio, the effort to push back against the CCSS began in late 2013, but bubbled all year, right into November 2014, when the Ohio House passed a bill out of committee.

No one expects repeal efforts to land on the Governor's desk in 2015, but with the Governor likely offering himself as a Presidential nominee requiring tee party votes in a primary (some of the most vocal CCSS critics), an incoming Republican legislative class packed with more extreme ideologues due to gerrymandering, and the standards themselves continuing to be burdened by poor implementation, nobody should be surprised to see this issue continue to burn.

3Corporate Education Reform Stalls Out

We saw signs in 2014 that corporate education policies were either failing, or being received by widespread skepticism. When Teach for America, beloved by the monied class, hits trouble you know there's a big shift going on. Perhaps the biggest shift has been the realization that these policies have birthed an explosion in testing that, if left unchecked, leaves scant time for actually educating students.

In Ohio, even the legislature began to wake up to the testing crisis it had helped create, by offering a bill that would reduce testing. That bill, which was far from perfect, would eventually die in the lame duck. We are almost certain to see new legislation introduced in 2015, especially when the Ohio Department of Education issues its report on the exact number of required exams, along with recommendations to potentially decrease that number. That report is due January 15th. The fact that this report will be published right at the legal deadline is a good indication it is going to cause a stir, and has not been an easy task.

The use of Standardized tests for the purposes of teacher evaluations continued to receive body blows too. At the beginning of the year, the American Statistical Association cast grave doubt on its use, and at the tail end of the year, the Board of Directors of the National Association of Secondary School Principals followed suit. Now past the point of implementation and entering the high stakes phase of these evaluation policies, we're going to see an ever increasing rise in calls for reform of the use of Value-Add, as its unfairness and unintended consequences become more and more apparent.

Nowhere was the pushback again corporate education reform more evident than in the Reynoldsburg, where teachers went on strike for 3 weeks to oppose merit pay proposals and over crowded classrooms. With huge community support behind them, the 350 teachers defeated the boards proposals and were able to return to their classrooms with a contract that would deal with class sizes, and forgo a merit pay system proven to be unsuccessful.

2The Flameout of Ed FitzGerald

Once every 4 years, voters in Ohio have an opportunity to reconsider the direction of the State's education policies when they elect a new Governor. Few could argue that Governor Kasich has done tremendous harm to public schools with his draconian budget cuts, union busting attempts and ill-thought out policies (more unwanted vouchers, more corrupt charters, 3rd grade reading laws, trigger laws no one uses, the failing Cleveland Plan, the Columbus Plan that voters rejected, and on and one). This makes the spectacular flameout of the Democratic candidate, Ed FitzGerald all the more galling.

FitzGerald wasn't defeated because of his policy positions. Voters actually preferred candidates who were pro public education as evidenced by the success of electing so many such candidates to the State Board of Education. Neither was FitzGerald defeated because the voters were enamored by the Governor and his record. It was the lowest turnout election on record, with the governor getting barely as many votes as his did in 2010. No, FitzGerald was simply a terrible candidate who ran an even worse campaign.

We considered making this our #1 story of 2014, but in the end, not even this could top our final choice.

1The Charter School Quality Crisis

2014 saw an explosion in reporting on the Ohio charter school boondoggle. A billion dollar business that continues to fail students and rip off tax payers. Charter schools in 2014 weren't any different than 2013, but the volume of reporting finally brought the desperate situation to the attention of the mainstream. Report, after report after report, throughout the year highlighted the corruption, fraud and failure of these schools. Even pro-charter school boosters got in on the act at the end of the year, producing reports showing that Ohio's charters were failing their students.

The year ended with tough talk from the Governor promising to clean up the mess. The question for 2015 will be whether the Governor can follow through on his tough talk and finally deal with this education disgrace that is harming tens of thousands of students each and every year.

The start of the New Year brings a new requirement for schools

Starting January first, Ohio schools must create a new safety plan.

Administrators have been making these plans for a few years now but the updated versions must follow new parameters laid out by the state. As John Charlton with the Ohio Department of Education explains this creates a better standard compared to previous plans.

“Certain things were included in some that were not included on others,” Charlton said. “So they were really just kind of all over the place as you can imagine with more than almost 4,000 schools in the state you had about 4,000 different variations of what those plans look like.”

Charlton says these plans help build better relationships between school administrators and safety officials in the community.

(More at WKSU News)

Ohio's charter school mess -- don't count on it being cleaned up

Ohio's charter schools are a mess. 

Here is what a study, commissioned by the pro-charter Fordham Institute, found out:

  • Of 68 statistically significant differences between charters and regular public schools, 56 show a negative charter impact with only 12 showing a positive one;
  • An average Ohio charter school student would have completed 14 fewer days of learning in reading and 36 fewer days in math.

The results are so bad that one official at the pro-charter Hoover Institution told the City Club of Cleveland, "I am actually a pro-market kind of girl, but it doesn't seem to work in a choice environment for education."

We already knew this. In the recent Ohio school report cards, charter schools received more Fs than As, Bs, and Cs combined. Over 60 percent of these schools earned Ds or Fs. (You can check all this out on Knowyourcharter.com.)

It is so bad that on Dec. 18, Gov. John Kasich pledged to get tough next year on underperforming charter schools.

I doubt it will happen.

The bottom line is that political donors will prevent any change.

Here is what is going on: The largest sector, and greatest failures, in the charter industry in Ohio are for-profit charters. Of the $920 million in public funding that goes to charter schools, $503 million went to schools managed by for-profit firms, according to an analysis by the Akron Beacon Journal

Two-thirds of this went to five, large, and very low-performing, charter companies. The biggest of these is the White Hat group, run by David Brennan. (In fact, of the 16 lowest-performing charter groups, for-profit companies run 14 of them.)

These companies give big dollars to politicians. For example, it seems that Mr. Brennan and family members have given over $4 million to Ohio Republican candidates. For this bribe, Mr. Brennan and his ilk (like Dennis Bakke of Imagine Schools that also operate, and fail, in Ohio and who also contributes heavily to pro-charter politicians) have received a charter law that allows them to conceal their finances, charge charter schools exorbitant rents for buildings they own and fail to provide an education to Ohio's kids.

(Read more at Cleveland.com)