Tag Archives: MarketWorld

Charter School Experiment FAILURE Documented Again

17 Aug

By Thomas Ultican 8/17/2020

Marketing and lack of oversight have obscured the failure of the charter school industry. The latest research reported by Carol Burris and her team at the Network for Public Education (NPE) documents the atrocious going out of business rate among charter schools.

The United States Education Department (USED) has invested more than $4 billion promoting the industry but has not effectively tracked the associated fraud, waste and failures. After 25-years of charter schooling, Broken Promises is the first comprehensive study of their closure rates.

Charter School Myths and Promises

Former American Federation of Teachers (AFT) union President, Albert Shanker, is often cited as the father of charter schools. His Wikipedia entry says, “In 1988, Shanker was the first to propose charter schools in the U.S.” He was not, nor was he central to charter school development.

Five years before Shanker’s famous 1988 speech in which he mentioned charter schools, the Reagan administration had published the infamous A Nation at Risk. In his speech, Shanker was clearly responding to that report as well as President Reagan’s call for choice in education and his own belief that American education was not serving the majority of students well.

At the time, Shanker was reading Ray Budde’s book from which he appropriated the terminology “charter.” In his 1988 speech, Shanker proposed,

“The school district and the teacher union would develop a procedure that would encourage any group of six or more teachers to submit a proposal to create a new school.”

“That group of teachers could set up a school within that school which ultimately, if the procedure works and it’s accepted, would be a totally autonomous school within that district.”

“I would approve such a proposal if it included a plan for faculty decision making, for participative management; team teaching; a way for a teaching team to govern itself; and a provision that shows how such a subunit would be organized so the teachers would no longer be isolated in the classroom throughout their professional lives, but would have the time to be available to share ideas and talk to and with each other.”

The actual development of charter schools was far different. Education Writer Rachel Cohen described what arose,

“At its outset, the real power in the charter coalition was what might be termed the ‘technocratic centrists’: business leaders, moderate Republicans, and DLC members looking for Third Way solutions that couldn’t be labeled big-government liberalism. While charters have drawn praise from other quarters—for instance, some educators and progressive activists see them as tools for racial and economic justice—these groups have never formed the heart of charters’ power base.”

In 1991, Bill Clinton – then Arkansas Governor and Chairman of the Democratic Leadership Council (DLC) – embraced the technocratic version of charter schools as a “Third Way” solution. Shanker would later complain, “It is almost impossible for us to get President Clinton to stop endorsing [charters] in all his speeches.”

By the time charter schools were birthed in Minnesota, Albert Shanker had agreed with several of the main points presented in “A Nation at Risk.” In accord with the DLC, Shanker stated,

“The reforms that resulted from A Nation At Risk and the other reports constituted a much-needed corrective to the softness of schools in the late ’60s and throughout the ’70s. Yes, we needed schools that had standards, and we still do.”

However, the public school failure belief was based on little more than illusion.

While writing an NPR article on the 35th anniversary of “A Nation at Risk,” Anya Kamenetz discovered that the report “never set out to undertake an objective inquiry.” Two of the authors admitted to her that they were “alarmed by what they believed was a decline in education, and looked for facts to fit that narrative.” The dubious evidence presented in their report would have never withstood a rigorous peer review process.

Some powerful evidence points in the opposite direction and indicates that the results from US public schools in the 60s and 70s were actually a great success story.

One measuring stick demonstrating that success is Nobel Prize winners. Since 1949, America has had 383 laureates; the second place country, Great Britain, had 132. In the same period, India had 12 laureates and China 8.

Stanford’s Center for Education Policy Analysis report on education achievement gaps states, “The gaps narrowed sharply in the 1970s and the first half of the 1980s, but then progress stalled.”

The digital revolution and the booming biotech industry were both created by students mostly from the supposedly “soft public schools” of the 60s and 70s.

In his 1999 book, The Schools Our Children Deserve, Education writer Alfie Kohn described the philosophy of current education reform saying it “consists of saying in effect, that ‘what we’re doing is OK, we just need to do it harder, longer, stronger, louder, meaner and we’ll have a better country.”’

Corporate groups, Third Way Democrats and the AFT all called for manufacturing style standards to be applied to public education. Unfortunately, standards based education has proven to be toxic; leading to jejune classes and the sundering of creativity. Children are learning to hate learning.

In his book Winners Take All, Anand Giridharadas calls modern social reform based on the belief that business leaders and market forces are the sure way to a better society “MarketWorld.” Charter schools are a “MarketWorld” education reform that has brought disruption, harm to public schools and accelerating segregation. They have produced superior marketing not superior education.

Broken Promises

Broken Promises opens by quoting the words of student mother Elouise Matthews to the Orleans Parish School Board:

“I am a parent of Mary D. Coghill [Charter School]. For the last three years I have had to place my kids at different schools each year because the schools keep closing. My child was attending MCPA, that school closed. He then went to Medard Nelson, that school closed. Now, he is at Coghill and y’all are trying to close that school. I am tired of moving my child every year because y’all are closing schools.”

In the modern era of school choice, the one choice New Orleans parent do not have is sending their children to a stable public school. New Orleans is a 100% privatized school district. It is the epitome of “MarketWorld” education reform.

“Broken Promises” looked at cohorts of newly opened charter schools between 1998 and 2017. Ryan Pfleger, Ph.D. led the analysis of charter schools closures utilizing the Department of Education’s Common Core of Data (CCD).

Before 1998, the massive government data base did not uniquely identify charter schools and the last complete data set available for all schools in America was 2017.

Startup charter school cohorts were identified by year and the cohort closure rates were tracked at 3, 5, 10 and 15 years after opening. The overall failure rates discovered were 18% by year-3, 25% by year-5, 40% by year-10 and 50% by year-15.

The NPE team discovered that half of all charter schools in America close their doors within fifteen years.

All Cohort Failure Graphic

Graphic from Broken Promises Showing Charter School Failure Rates

Many charter schools close within their first year of operations. “Broken Promises” shares the story of several of these quick failures. The following story was based on a TV newscast in North Carolina:

On a Thursday morning in September of 2014, parents dropped their children off at the Concrete Roses STEM Academy charter school in Charlotte, North Carolina. Families were handed a notice that the school would close the very next day. The school had claimed (and was funded for) an enrollment of 300 students although actual enrollment was only 126.

 Concrete Roses STEM Academy was open for only one month.

Because Concrete Rose STEM Academy closed before officially reporting attendance to the federal government in October, they do not count as a failed school. In the CCD database, they never showed students thus did not meet the criteria for having opened.

Burris and team document close to a million students being displaced by school closures. These displaced students then put tremendous pressure on public schools which are required to take them in.

“Broke Promises” also cites National Education Association research showing that “52 percent of students displaced by charter closings receive free or reduced-price lunch.”

Census tract maps collated with charter school closures were utilized to understand where the closures were happening. In Detroit for example, they noted that between 1998 and 2015 245-charter schools opened of which 106 had closed (43%) by 2017.

The report states, “Fifty-nine percent of the failures were located in tracts with 30 percent or above rates of poverty, although there were a far greater number of tracts with lower levels of poverty.”

Census Tract Map Showing High Poverty Neighborhoods with Highest Charter Churn.

Mounting Evidence Shows Charter Schools Are Bad Policy

As charter schools started becoming a more significant part of local school districts, fiscal impacts mounted. In 2014, researchers Robert Bifulco from Syracuse University and Randall Reback from Bernard College published a study of the fiscal impacts in the public schools of Buffalo and Albany, NY. They estimated that the net costs in Buffalo were between $633 and $744 per pupil and in Albany between $976 and $1,070 per pupil. Thus, public school students were suffering reduced fiscal support in order to finance charter schools.

In 2016, Professor Bruce Baker of Rutgers University produced Exploring the consequences of charter school expansion in U.S. cities for the Economic Policy Institute. In the summary of this report he stated,

“Other reports have shown how high test scores and popularity of charter schools could be the byproducts of using data from cherry-picked charter schools that serve cherry-picked or culled populations. This report adds further insights for the debate on how expanding charter schools as a policy alternative achieves the broader goal. Specifically, it shows that charter expansion may increase inequity, introduce inefficiencies and redundancies, compromise financial stability, and introduce other objectionable distortions to the system that impede delivery of an equitable distribution of excellent or at least adequate education to all children.”

In 2017, NPE Executive Director Carol Burris produced “Charters and Consequences.” In it she stated,

“… nearly every day brings a story, often reported only in local newspapers, about charter mismanagement, failure, nepotism or outright theft and fraud.”

“This report … is the result of a year-long exploration of the effects of charter schools and the issues that surround them.”

To accompany the report, NPE started an ongoing web page, #AnotherDayAnotherCharterScandal, which catalogues and makes available the horrific charter industry record of fraud and malfeasance.

In 2018, Professors Helen F. Ladd of Duke University and John D. Singleton of Syracuse University published The Fiscal Externalities of Charter Schools: Evidence from North Carolina. Like the study of Buffalo and Albany they found powerful evidence that it was costing schools in Durham, NC $3600 per student lost to charters. The paper also stated, “We find smaller, though sizable, Net Fiscal Impacts in the non-urban districts and considerable heterogeneity across them.”

That same year professor Gordon Lafer of the University of Oregon published Breaking Point: The Cost of Charter Schools for Public School Districts.” Lafer stated,

“In 2016-17, charter schools led to a net fiscal shortfall of $57.3 million for the Oakland Unified School District, $65.9 million for the San Diego Unified School District, and $19.3 million for Santa Clara County’s East Side Union High School District. The California Charter School Act currently doesn’t allow school boards to consider how a proposed charter school may impact a district’s educational programs or fiscal health when weighing new charter applications.”

Last year, NPE published two investigations of the federal Charter Schools Program (CSP). In Asleep at the Wheel, they stated, “We estimate that program funding has grown to well over $4 billion. That could bring the total of the potential waste to around $1billion.” At a congressional hearing, Education Secretary Betsy DeVos speaking about the report testified, “The report that you referenced has been totally debunked as propaganda.”

In response, NPE redoubled efforts and in December published Still Asleep at the Wheel where they documented that their conservative claims in the first report under-reported the extent of wasted money and negligence associated with the CSP.

Time to join with the NAACP in their 2018 call for a charter school moratorium. With the industries record of creaming, advancing segregation and self-dealing, charter profiteering can not be accepted. Charters have not delivered significant education improvements just disruption, community harm and fraud. School chartering is a FAILED experiment.

Five Decades of ‘MarketWorld’ Education Reform

27 Jul

By T. Ultican 7/27/2019

There has been a fifty-year push to reform education using business management principles. In the period, Harvard Business School has trumped Columbia Teacher College concerning pedagogy. Unfortunately, the results are an unmitigated disaster for most communities and students. This market based endeavor – financed by billionaires – has transformed public schools into non-democratic profit centers. It is the precursor to the ultimate goal of dismantling universal free public education.

The radical right is pushing to privatize everything from policing; to prisons; to schools. They have spread the gospel that governments are incapable of solving problems but businessmen can. In his first inaugural address, Ronald Reagan declared “…, government is not the solution to our problem; government is the problem.” Viewing society as consisting of “makers” and “takers,” these apostles of privatization fear the tyranny of democratic majorities. They strive to make property rights the paramount civil right.

When it came to privatizing school, the right originally tried to use vouchers, but that was a tough sell. Jeffry Henig an Education Professor at Teachers College, “The Walton foundation itself was one of the early organizations to transition from vouchers to charters.” In his AlterNet article Bryant explained,

“Henig believes many conservatives view charter schools as a way to “soften the ground” for potentially more private options, though he isn’t entirely sure “the Waltons view charters as a Trojan Horse for eventually providing vouchers universally.’”

When putative progressive organizations like the Center for American Progress or Democrats for Education Reform promote charter schools they are promoting an anti-democratic and anti-union position. When politicians like Corey Booker and Joe Biden say they support public charter schools, they are in fact supporting the radical right’s privatization agenda. When Bill Clinton eliminated depression era banking rules and “welfare as you know it” plus campaigned for school choice; he was advancing Charles Koch’s ideology.

Two recent books have brought the privatization agenda into sharp relief.

The first book is Democracy in Chains: The Deep History of the Radical Right’s Stealth plan for America by Nancy MacLean. Through serendipitous good fortune, MacLean stumbled onto Nobel Prize laureate James M. Buchanan’s unorganized papers shortly after his 2013 passing. They were in boxes and stacked on tables in his George Mason University cabin. The other more well known American Nobel Prize winning economist from the right is the Milton Friedman. However, MacLean discovered that Charles Koch, the financier of the radical right “bypassed Friedman for Buchanan.

The other book is Winners Take All: The Elite Charade of Changing the World by Anand Giridharadas. He takes the reader inside the worlds of elite philanthropy in New York City and of thought leaders in Aspen, Colorado. He writes,

And what these winners wanted was for the world to be changed in ways that had their buy-in – think charter schools over more equal public school funding, or poverty-reducing tech companies over antitrust regulation of tech companies. The entrepreneurs were willing to participate in making the world better if you pursued that goal in a way that exonerated and celebrated and depended on them.

James M. Buchanan, John C. Calhoun and Segregation

James M. Buchanan grew up in Tennessee. His grandfather had been an unpopular governor of the state; however Buchanan was raised in near poverty. It was his academic abilities that took him from the obscurity of Middle Tennessee State Teachers College to a doctorate in economics from the University of Chicago in 1948. The youthful socialist became a “zealous advocate of market order.” It was at the University of Chicago where Buchanan met Friedrich August Hayek and the Austrian School of Economics.

Writing in Atlantic Magazine Sam Tanenhaus disclosed, “Hayek initiated Buchanan into the Mont Pelerin Society, the select group of intellectuals who convened periodically to talk and plot libertarian doctrine.” After World War II ended, The Mont Pelerin Society was a relatively small group of economists mostly from Europe and the United States who were widely viewed as a fringe group. They were against initiatives such as social security, universal health care and public education. The title of Hayek’s 1944 book The Road to Serfdom encapsulates their antipathy to any government social endeavors.

Professor MacLean, who is a historian from Duke University, compared Buchanan’s economic ideology with John C. Calhoun. Calhoun was a son of the antebellum south, a senator from South Carolina and a Vice President of the United States. MacLean quotes him stating, “A ‘government based in the naked principle that the majority ought to govern,’ was sure to filch other men’s property and violate their ‘liberty.’” Calhoun was also a leading defender of slavery. In his most famous speech he said slavery is “instead of an evil, a good–a positive good.

Buchanan and Calhoun

Buchanan’s first plumb teaching assignment came at the University of Virginia in 1956. This was also when the “massive resistance movement” to Brown versus the Board of education and desegregation of public schools in Virginia was heating up.

In 1959, Buchanan joined with another new hire at the university, G. Warren Nutter (who later became a key Goldwater advisor) to write “The Economics of Universal Education.” They argued that the root of the desegregation problem was that “state run” schools had become a “monopoly” that should be broken by privatization. They said if the state sold off their school buildings and equipment, they could limit their involvement in education to setting minimum standards. Then all kinds of schools might blossom.

Since MacLean’s book was published there has been some push back against her tying Buchanan and his paper to the “massive resistance movement” saying he did not involve himself in desegregation politics only in the economic issues of education. However, Buchanan and Nutter did state in their paper, “Every individual should be free to associate with persons of his own choosing.” In any case, schools in Virginia were closed. Black children stayed home while white children attended tax-subsidized private schools. In Prince Edward County, schools were locked closed from 1959-1964. MacLean says that for Buchanan segregation was just a side issue in his life-long libertarian pursuit.

Murray Newton Rothbard was an American economist of the Austrian School and a political theorist whose writings and personal influence played a seminal role in the development of modern right-libertarianism. MacLean discovered “Murray Rothbard encouraged Koch to study Lennin.” Not Lenin’s economics but his methods for advancing an unpopular ideology. On this point MacLean noted, “At a 1973 March log cabin meeting Buchanan stressed the key thing moving forward was that ‘conspiratorial secrecy is at all times essential.’”

In 1978, I saw the Communist Workers Party takeover the Iron Workers Union at National Steel and Ship Building Company (NASSCO) in San Diego. When watching the development of the radical right for the past few decades, similarities with the tactics of communist movement were unmistakable. Both movements are secretive, anti-democratic and motivated by extreme economic theory.

MacLean states, “The Mont Pelerin Society cause since the 1950’s is the end of public education.

Killing Public Education

In 1978, Congressman Ronald Mottl D-Ohio 23 introduced a bill promoting education standards. It was the first time a bill was proposed that amended the 1965 education law to promote a particular theory of education. Mottl’s bill went nowhere like another similar bill (H.R.371) introduced the next year by his colleague Tennyson Guyer R-Ohio 4. However, these were the first harbingers of education standards that emulated business practices.

In 1983, the Reagan administration produced the infamous “A Nation at Risk: The Imperative for Educational Reform.” This polemic was neither factually nor pedagogically well founded. Serious academic research has subsequently shown this non-peer reviewed writing to be the misguided work of amateurs. Its glorification of business practices opened the door for federal control of education and fostered standards based accountability. It made legislation like the proposals introduced by Mottl and Guyer viable.

In Winners, Giridharadas labels – modern social reform based on the belief that business leaders and market forces are the sure way to a better society – “MarketWorld.” He explains,

In an age defined by a chasm between those who have power and those who don’t, elites have spread the idea that people must be helped, but only in market-friendly ways that do not upset fundamental power equations.

Giridharadas shares three criteria for being a “MarketWorld” thought leader speaking at the Aspen Institute or the Clinton Global Initiative or the main TED talk stage. Thought leaders should:

  • Focus on the victim, not the perpetrator.” Condemning a perpetrator is a “win-losey” solution not a win-win.
  • Personalize the political.” If you want to be a thought leader and not be dismissed as a critic, your job is to help the public see problems as personal and individual dramas rather than collective and systemic ones.
  • Be constructively actionable.” … “People, especially the winners who shape tastes and patronize thought leaders, want things to be constructive, uplifting, and given to hope.

He gives examples including this one:

“What the thought leaders offer MarketWorld’s winners, wittingly or unwittingly, is the semblance of being on the right side of change. … Take, for example, the question of educating poor children in a time of declining social mobility. A true critic might call for an end to funding schools by local property taxes and the creation, as in many advanced countries, of a common national pool that funds schools more or less equally. What a thought leader might offer MarketWorld and its winners is a kind of intellectual counteroffer – the idea, say, of using Big Data to better compensate star teachers and weed out bad ones.”

Data shows that “MarketWorld” and libertarian philosophy has damaged public education and harmed all but the top 10% of wage earners in America. Giriharadas shares the following data table information and notes, “One hundred and seventeen million people had been completely shut off from economic growth since the 1970s.

Earning Level 1980 2014
Top 0.001 % $17,000,000 $122,000,000
Top 1% $428,000 $1,300,000
Top 10% $58,000 $116,000
Bottom 50% $16,000 $16,200

It is possible that Charles Koch and “MarketWorld” think this is a feature. To me, it looks like a powerful data set that says we need an empowered Government to protect Americans from ravenous billionaires and their self-serving anti-public education and anti-democratic views.

Twitter: @tultican