"A child's learning is the function more of the characteristics of his classmates than those of the teacher." James Coleman, 1972
Showing posts with label David Brennan. Show all posts
Showing posts with label David Brennan. Show all posts

Sunday, May 01, 2011

Mr. White Hat Back in the Driver's Seat in Ohio Politics

For awhile it seemed as if the corrupt charter school chain gangs run by corporate welfare leech, David Brennan, would be brought to some public accountability in Ohio.  With the return, however, of free-to-pillage Republican rule in Ohio, accomplished with the help of Brennan's $4+ million in campaign donations over the years, this bloodsucker is back in the catbird's seat (for background go herehere, here, here, here, and here).

With the return of Brennan comes new legislation written with Mr. White Hat in mind.  As reported in this story by the Post-Dispatch, Brennan even goes so far as have proposed legislation to lie about the fact that public money will go his for-profit sleazy outfit to exploit the poorest kids of Ohio:
• Specify that funds paid to the operator by the [public] school are not considered public funds.
So what will separate Ohio from the most corrupt banana republics of the Western world?  Nothing.  When it gets too corrupt even for the Fordham Institute, you know the sewer is totally open:

A leading school-choice supporter says the sweeping changes proposed by House Republicans would weaken oversight of charter schools severely and threaten to turn Ohio into a "laughingstock of the nation's charter-school programs."
"It's hard for me to say that," said Terry Ryan, vice president of Ohio programs and policy for the Thomas B. Fordham Institute, which sponsors seven charter schools in the state, including two in Columbus.
"It's basically saying the operators should be left alone and should be able to open as many schools as they want, and there shouldn't be any accountability but the market. We believe that's not enough."
As part of their changes to Gov. John Kasich's $55.5 billion budget, which got another full hearing yesterday, House Republicans would boost the power of for-profit charter-school operators at the expense of charter-school sponsors, who are tasked with oversight of the schools.
Among the dozens of charter-school-related changes:
• Allow for-profit entities to set up schools through the Department of Education without a sponsor.
• Permit a school's governing authority to delegate any or all of its rights and responsibilities to the operator.
• Specify that funds paid to the operator by the school are not considered public funds.
• Require a governing authority to give 180 days' notice to operators before terminating a contract, and require the school to offer the operator the chance to renew its contract before seeking another operator.
• Make the renewal of a contract between a charter school and its sponsor subject to approval of the school operator.
• Allow "entities" and "groups of individuals" to form charter schools as a for-profit corporation.
• Allow an entity to sponsor up to 100 schools.
Ryan said the changes take Ohio back to the "chaos" of the early 2000s, when then-state Auditor Jim Petro issued a blistering report of the Department of Education's performance in overseeing charter schools.
"We've been down this path and it led to a number of bad schools and scandals, which were a true black eye to charter schools," he said.
Ryan also questions whether it's legal under federal law for the state to send public money directly from the Department of Education to a for-profit charter-school operator.
Rep. Ron Amstutz,
R-Wooster, chairman of the House Finance Committee, said the general thrust of the changes was to "do an update and add some flexibilities that allow community schools to flourish."
There are situations where the relationship between the operator, governing authority and sponsor do not work well, he said. He also said the bill might be suffering from drafting issues as it relates to the Department of Education and accountability.
The Finance Committee will continue hearing testimony today and Monday, and it will make another set of changes on Tuesday before a vote. The full House is scheduled to vote on the budget on Thursday, sending it to the Senate.
"One of the things you do in a substitute bill is put things up the flagpole, see what kind of reactions they get and continue the vetting process," Amstutz said.
Kasich spokesman Rob Nichols offered no comment on the House charter-school changes, except to say that the governor would look them over. Ryan said he thought the governor's initial proposal struck a good balance.
Rep. Matt Lundy,
D-Elyria, said charter-school performance is not deserving of expansion.
"I think that instead of making the system more accountable, we made it easier to grow and expand," he said.
He also suggested that the amendments are the result of some influential charter-school operators, including David Brennan, the state's largest operator, who in the past decade has given Ohio Republicans more than $4.2million, making him the party's second-largest donor.
Amstutz said Brennan did not write any of the amendments.
William Lager, who runs the online charter school eCOT, is 10th on the GOP money list.
Kasich proposed lifting the moratorium on new charter schools, setting up potential competition for eCOT, but the House proposed to delay that until July 2013.
jsiegel@dispatch.com

Tuesday, June 08, 2010

Mr. White Hat, David Brennan, Refuses to Testify

White Hat Management's David Brennan has built an corporate welfare empire in Ohio  by putting $1.5 million into the pockets of Republican politicians since 2000.  Now he is being sued by 10 of the charter schools' Boards that he owns, which would seem to raise some red flags for politicians who, thus far, have looked the other way, even as White Hat has preyed on the poorest kids in Ohio. From Cincinatti.com:
The state's biggest charter school operator last week refused to testify at a state legislative hearing into whether Ohio's laws give too much power to for-profit charter school companies.
It would seem that the question has been answered.  


Tuesday, May 18, 2010

White Hat Management: "accountability chain is totally upside down"

We have been posting about David Brennan's charter school profiteering scheme since April 2006, and it looks like the bribes and kickbacks might have finally run out. ht to Monty Neill. From the Cleveland Plain-Dealer:

COLUMBUS, Ohio -- A group of Cleveland and Akron charter schools is in open rebellion against the for-profit management firm that runs the schools.


An unusual lawsuit brought Monday by 10 governing boards of Hope Academies of Cleveland and Akron and Life Skills Centers of Cleveland and Akron alleges that a 2006 state law passed by majority-party Republicans is unconstitutional and gives the for-profit company unchecked authority.

At the center of the lawsuit is White Hat Management, the for-profit company whose five-year contract to run the 10 charter schools in Northeast Ohio expires on June 30. Charter schools are publicly funded but privately operated. In the case of White Hat Management, 96 percent of the state funding flows to the company.

The governing boards say that White Hat's interest in making a profit conflicts with the schools' goal to educate. The suit, filed in Franklin County Common Pleas Court, says that the boards are "virtually impotent to govern the schools."

They say that White Hat has refused to provide detailed financial information such as unaudited quarterly financial reports required under the management agreement with the schools. White Hat has also refused to provide details on grants received and also failed to spell out what funds were used to purchase school property and equipment since 2004, the suit charges.

White Hat Management said in a statement that the company has not been served with the complaint and could not comment directly on it.

"It is unfortunate that these entities have taken this action which potentially will disrupt the lives of thousands of students and jeopardize the future of these schools," the statement said. "White Hat will continue its efforts while this matter is resolved."

A representative from the Ohio Council of Community Schools -- the sponsor of the Hope Academies and Life Skills Centers that are part of the lawsuit -- did not return calls for comment.

The largest for-profit charter school operator in Ohio, White Hat Management was founded by wealthy Akron industrialist David Brennan. He and his wife, Ann, have been major political contributors as the legislature has dealt with charter school issues in recent years. In 2007, for example, they gave a combined $733,300 to state candidates and Republican organizations, including $400,000 to the Ohio Republican Party, according to state records.

The schools' governing boards say they are in a pickle because the state law allows White Hat to remove and replace the boards if they seek to end contracts with the company and negotiate with other potential management companies.
And any board that does manage to successfully petition to get a contract with White Hat ended is stripped of the school facilities, furniture and equipment -- even though it may have been initially purchased with tax dollars. That's because, under the state law, White Hat owns those assets.

"That's the untenable situation -- tax dollars are being used to purchase assets for public schools that are in turn owned by private corporations," said Carlo LoParo, a spokesman for the group of charter schools. "These boards are essentially being given the option of being fired or giving their schools away."

An Ohio charter school expert said the "accountability chain is totally upside down" in Ohio.

"The lines of authority have been blurred in Ohio," said Terry Ryan, vice president of Ohio programs and policy for the non-profit Thomas B. Fordham Institute. "Therefore, we see this confusion which makes it prime territory for a lawsuit."
Ryan said the Ohio law is "the kind of law that was crafted by a management organization to protect their interests."
The provisions that govern charter schools were rewritten as part of House Bill 79, a controversial remaking of Ohio charter school law sponsored by former Cincinnati-area Rep. Tom Raga, a Republican lawmaker who ran unsuccessfully for lieutenant governor in 2006. The legislation languished in conference committee before being moved on a 4-2 party line vote by Republicans over Democratic objections.

It was signed into law by Republican Gov. Bob Taft on Dec. 29, 2006 -- a little more than one week before Democratic Gov. Ted Strickland took office.. . . .

Wednesday, August 26, 2009

White and Suburban, Good: Brown and Urban, Bad

The unalterable stupidity and overt racism that drives the reform schoolers' edu-policy, NCLB, is once more on display in Ohio, as state test scores again show that middle class white folks breed higher test scores than poor black folks. Imagine that. If this shiftless bunch of slackers could just get with that Booker T. Washinton/Barack Obama message of "No Excuses." Fat chance.

This summary is from Janice Resseger, ht to Monty Neill at ARN:
From: Janice Resseger

In the ninth of its "Ten Moral Concerns in the No Child Left Behind Act," the National Council of Churches Committee on Public Education and Literacy declares:
"The No Child Left Behind Act exacerbates racial and economic segregation in metropolitan areas by rating homogeneous, wealthier school districts as excellent, while labeling urban districts with far more subgroups and more complex demands made by the law as "in need of improvement." Such labeling of schools and districts encourages families with means to move to wealthy, homogeneous school districts."
This morning, mid-week of the beginning of school in most local school districts, the Ohio Department of Education released its state school district report cards based on the annual standardized test scores mandated by NCLB. This morning the Plain Dealer reports grades assigned to school districts, grades ranging from "Excellent with Distinction" to "Excellent" to "Effective" to "Continuous Improvement" to "Academic Watch" to "Academic Emergency." Youngstown is the only district in the state with the dismal distinction of Academic Emergency. The newspaper uses letter grades --- A, B, C, D, F --- as shorthand.

The "Excellent with Distinction" districts are for the most part outer-suburbs. Many are actually so far out they are not in Cuyahoga County itself but in Lake, Geauga, Summit, Medina, and Lorain Counties. Some are in the horsey country on Cleveland's far-east side. The "Excellent with Distinction" districts are uniformly wealthy and uniformly white.

In "Academic Watch" are Cleveland and Lorain, as well as East Cleveland and Warrensville Heights, two inner suburbs that have resegregated. Superintendents from several districts try to explain away their scores as they are interviewed --- problems with the special education subgroup, for example.

Clearly NCLB has not helped schools in our area region break the nexus between low achievement and hyper-segregation by race and poverty. Nowhere, however, does the Plain Dealer name this disturbing trend. Rather, it treats the ratings as letter grades awarded for school district quality. The message is that you ought to move your family, if you can afford it, to one of the outer-ring, excellent districts because that is the only place where a good education can be had.

Interestingly, the data published on the Plain Dealer site also allows the reader to search for and read the report card for each charter school, although those ratings are not covered in any of the reporting by the newspaper. Here is a sampling:

Charters well known to be high-quality do receive good ratings: Citizen's Academy-Excellent, Intergenerational School-Excellent, and Constellation West Park-Effective.

Hope Academy Broadway Campus (a David Brennan school) is rated in Academic Emergency with 0 standards met. Life Skills Center Cleveland (another David Brennan school) is rated Continuous Improvement with 0 standards met (the nature of this school's improvement remains a mystery). The Elite Academy of the Arts is rated Academic Emergency with 0 standards met, and Apex Academy is on Academic Watch with 1 standard met.

Important questions the newspaper fails to explore include:

- What does it mean that the "excellent" and "effective" schools and districts are far out in the suburbs?

- Why fail to report (in the printed version of the newspaper) or explore the test scores posted by charter schools if the traditional public schools are to be so graded?

- Will there be any consequences for the charter schools that fail to meet even one standard?

I know this material is likely merely another version of what you are seeing in your own region, but I believe it is important for us to pay attention to what we see and understand locally. It is important that we insist on the naming of the truth.

Ms. Jan Resseger
Minister for Public Education and Witness
Justice and Witness Ministries
700 Prospect, Cleveland, Ohio 44115
216-736-3711
http://www.ucc.org/justice/public-education


"That all citizens will be given an equal start through a sound education is one of the most basic, promised rights of our democracy. Our chronic refusal as a nation to guarantee that right for all children.... is rooted in a kind of moral blindness, or at least a failure of moral imagination.... It is a failure which threatens our future as a nation of citizens called to a common purpose... tied to one another by a common bond." -Senator Paul Wellstone, March 31, 2000

Monday, June 01, 2009

Ohio Republicans Rally to Protect Corrupt, Incompetent Charter Schools

Ohio Republicans are vigilant watchdogs of the public coffers until their right-wing benefactors' corrupt business opportunites are threatened by some real oversight by Governor Strickland. The White Hat charters in Ohio have been a scandal for years, yet Republicans in the Ohio Senate continue to stand in the way of bringing some oversight and accountability to David Brennan's gravy train. From the AP:
DAYTON, Ohio (AP) - The fate of many of Ohio's charter schools rests in the hands of state lawmakers who will soon begin negotiating a compromise on the two-year state budget.

Gov. Ted Strickland and the Democrats who control the Ohio House want to cut funding for the state's roughly 320 charter schools by more than $200 million. They also want more accountability and oversight, and want to make it easier for the state to close schools that aren't performing well.

The Republicans who control the Ohio Senate, however, released a budget plan last week that restores funding for the schools, which receive taxpayer money but are free of many of the regulations attached to traditional public schools. Lawmakers from both chambers will meet over the next few weeks to work out a compromise to send to Strickland before July 1.
Charter schools are just another sticking point in a disagreement between the parties about whether to fundamentally change the way schools are funded.

The Democratic plan would tie funding for charter schools to their performance.

"My hope is in the Senate they'll continue down that path of finding (incentives for) good charters, rather than perpetuate the bad ones," state Rep. Stephen Dyer, an Akron-area Democrat, said earlier this month.

The Republican plan kept standards for charter schools where they are currently, instead of increasing them. The Senate also wants the state to treat public schools the same way it treats charter schools that aren't performing well - by closing them down if they are deemed to be in academic emergency for three consecutive years.

Dyer said taxpayers have contributed $3.4 billion to charter schools since 1998, but only 8 percent of them are rated "effective" or better on the state report card for school performance. . . .

Thursday, February 12, 2009

Thank You, Governor Strickland

For years David Brennan of White Hat Management, Inc. has run some of the most notorious for-profit charter "schools" in the country--and definitely the worst in Ohio. That is about to end:
. . . .Stanford noted that this budget does not seek a moratorium on charters, unlike two years ago when such an attempt failed to win support from legislators.

But it does once again go after the for-profit management companies that some charters hire. New contracts would be prohibited, and existing ones wouldn't be renewed.

The companies would include White Hat Management, which is headed by Akron businessman David Brennan, a long-time contributor to Republican candidates. White Hat runs Brennan's Life Skills centers, Hope academies and an online charter, the Ohio Distance and Electronic Learning Academy.

The ban on for-profit management companies goes too far for Terry Ryan, who heads the Thomas B. Fordham Institute's Ohio office. The related Thomas B. Fordham Foundation is a nonprofit sponsor of charter schools.

"Quite frankly, some of the for-profits are good and some are bad," Ryan said. "But let's not throw out the baby with the bath water."

Strickland, however, is adamant. The day after his State of the State speech, he was asked about his stand during an appearance at Cleveland's Louisa May Alcott Elementary School.

"I do not believe injecting the profit motive into public education is a good thing," he said.
When the profit motive of the "non-profit" charter schools is understood by politicians who stupidly praise them, perhaps we will see a similar phenomenon. The tax-dodging non-profit corporations are definitely the more prominent threat to public education.

Sunday, March 30, 2008

White Hat's Ohio Operations Rake In $84 Million Annually in "Non-Profit"

With so many of Brennan's chums in jail, indicted, or kicked out of office, one has to wonder how his mis-education enterprise for the poor survives. From the Beacon-Journal:
By Dennis J. Willard
Beacon Journal Columbus bureau

Published on Friday, Mar 28, 2008

COLUMBUS: The Ohio Federation of Teachers has asked the Internal Revenue Service to examine the non-profit status of charter schools managed by White Hat Management, the company established by Akron entrepreneur David Brennan.

The union, which has a long history of challenging Brennan's company, is asking the IRS to determine whether the schools under White Hat's umbrella can properly register as a 501(c)(3) tax-exempt firm.

Lisa Zellner, an OFT spokeswoman, said the union does not expect an immediate answer, but a ruling against the White Hat charter schools would force the company to pay taxes ''like the rest of us,'' and possibly jeopardize their standing, because state law requires all charter schools to be nonprofit.

Through Columbus-based public-relations firm Falhgren Mortine, White Hat issued a statement calling the OFT's accusations a publicity stunt that recycles points previously raised and addressed.

''The Internal Revenue Service is aware of the community school structure and White Hat Management's contract provisions making the management company responsible for all start-up and day-to-day operations of its contracted schools,'' the press release noted.

The public-relations firm also stated that White Hat is a target for groups like the OFT that are seeking to promote their own interests.

Brennan, a large contributor to Republican candidates, was instrumental in pushing then-Gov. George Voinovich and the Republican majorities in the Ohio House and Senate in the mid-90s to pass laws allowing charter schools to open in the state.
White Hat currently operates 38 Life Skills schools geared toward high-school dropouts in Ohio, Colorado, Michigan and Florida.

Initially, White Hat established Hope Academies for elementary students, but after opening 12 in Ohio, the company has been focused on Life Skills, which are considered to be more lucrative.

OFT points out to the IRS that at least 25 charter schools operating under White Hat have qualified for tax-exempt status with the Ohio auditors' office.

Zellner said a number of the schools have also applied for and received nonprofit status through the federal government.

Don Mooney, an attorney representing OFT, wrote the IRS that documents indicate that the for-profit White Hat company controls the non-profit charter schools that pass through 95 percent of all their tax dollars to Brennan's firm, which amounts to about $84 million annually. . . .

Tuesday, September 11, 2007

More on The Darkness Under Brennan's White Hat

David Brennan has shown repeatedly what money can buy in the Ohio Courts and Legislature to create an empire based on educational exploitation of the poor. He provides a case study in charter school corruption that is not likely to be equalled any time soon.

So when the charterites put together this latest smelly pastiche, the NCLB sequel that George Miller is airing in DC, they made sure to stipulate that accountability in charter schools will be determined by state charter laws, rather than Federal statute:
‘‘(N) ACCOUNTABILITY FOR CHARTER SCHOOLS.—The accountability provisions under this Act shall be overseen for charter schools in accordance with State charter school law (p. 52).
If this privatization plans survives, it will open the door for the likes of David Brennan to shape the state charter laws in order to avoid oversight and accountability, while guaranteeing a never-ending public revenue stream.

Here is the latest David Brennan chapter from the Cleveland Free Times:

AKRON-BASED WHITE HAT MANAGEMENT and former Clevelander Robert Townsend once enjoyed a mutually beneficial relationship. White Hat operates charter schools, reporting to each school’s board of directors. Townsend joined one of those boards as president in 1999, then went on to preside over an additional 18 others. Townsend was paid for his service, White Hat saved time by dealing with fewer board presidents, and everyone seemed happy.

The relationship began to sour in 2005. Suddenly, after years of relative silence, Townsend and some fellow board members started, well, acting like a board. They complained that White Hat wasn’t doing enough. They questioned why test sores were so low, who White Hat was hiring, and how state money was being spent. They demanded more information and better results. Meetings got heated.

Whether they were concerned more about the students they’d been appointed to watch over or their own reputations (White Hat’s image was being tarnished by media reports at the time) remains a matter of some debate. But whatever the case, the simmering tension prompted White Hat to seek relieffrom its many friends in the state legislature, who obligingly changed the law in ways that helped the company to marginalize the meddling Townsend and his colleagues.

“It gets really tiresome sometimes, to fight that fight,”Townsend said recently. “It takes a toll on your family and yourself when you’re trying to do something to educate people, and then they introduce a bill, a law, and change the whole charter school movement and no one says anything?”

Today the whole affair is in court, with Townsend and eight fellow board members on one side, and White Hat and the state legislature and department ofeducation on the other. And frankly, it’s hard to know who to root for.

IN OHIO, the person most closely associated with charter schools is David Brennan. The Akron-based industrialist had great influence in determining how charter schools are established and run.

A school-choice advocate, Brennan cultivated political clout. George Voinovich received more than $120,000 from the Brennan family during his time as Ohio’s governor, 1991-98, which helped earn Brennan the chairmanship ofVoinovich’s Commission on Educational Choice. The commission would soon recommend taxpayer-funded vouchers for parents and students. Brennan then raised millions to help Republicans win control of the General Assembly in 1994.

The next year, a $5 million voucher pilot program for Cleveland went into effect, providing up to $2,225 per student. Nonprofit, private schools collected the state money and passed on an administrative fee to Brennan’s people. However, the model never expanded beyond Cleveland’s city limits, and profits proved marginal. One study found voucher students in Brennan’s private schools were even lagging behind academically.

By the late ’90s, Brennan abandoned voucher schools for a more lucrative education business model: charter schools.

Under the system established by the legislature in 1997, “any person or group” could start a charter school, upon approval by a public sponsor, like the state board of education or local school boards. Once this agreement was in place, the founders had to select a “governing authority,”or board. This board reported to the sponsor, but oversaw hiring, curriculum and management ofthe school. Board members subsequently entered into contracts with management companies, which handled dayto-day operations.

As the ink dried on the 1997 law, Brennan was ready. In early 1998, he incorporated (out of state) White Hat Ventures, LLC. Under this umbrella company, which housed a realty arm as well, was White Hat Management. White Hat immediately sought approval from the state board ofeducation for charter schools in Cleveland and Akron.

Brennan met Robert Townsend sometime in 1998, as he combed urban centers for potential board members for Hope Academy Broadway Campus, which opened in Cleveland in 1999. IfBrennan was looking for pliable candidates, Townsend was a good choice. He was a fixture on numerous Cuyahoga County boards during their times of peak inefficiency.

In June 1998, Townsend was a senior member of the Cuyahoga Metropolitan Housing Authority board when it came out that executive director Claire Freeman was turning in financial reports that listed her monthly mortgage payment as an “executive benefit.”When asked by the Plain Dealerif the board should have queried further, Townsend replied yes. “We made a mistake. I take that responsibility for myself.”

He also served on the board ofWard 1’s Amistad Community Development Corporation, which lost hundreds ofthousands of dollars through bad investments, questionable hires and poor oversight (“Who’s Got the Money?,” Free Times, May 2, 2007). He has since moved to Oakwood Village, where he serves on the city council and is running for mayor.

Townsend told the Free Timesin March that he signed on with White Hat “to give a choice.”

“No one can argue that Cleveland public schools have problems,” he said. “Charter schools are a way of helping to resolve their problems, because they deal with the word choice.”

When Townsend joined his first charter school board, White Hat was opening schools at a steady pace, with sponsors such as the University ofToledo and St. Aloysius Orphanage. Townsend soon was board president for 19 schools, one ofwhich was more than three hours from where Townsend and other board members lived.

Attorney Robert DiCello, who represents Townsend and his co-plaintiffs, admits that they were chosen because White Hat wanted hands-offmanagement. These folks weren’t educators, DiCello notes, and were “asked to run an entity that [they had] no prior experience running.”

He did not explain why they agreed to serve on the boards. But he defends White Hat’s asking Townsend to agree 18 more times.

“It’s much more economical for the kids,” DiCello says. Otherwise, imagine the chaos with 19 different school boards telling White Hat to go in 19 different directions. It’s not clear whether he understands or cares that the promise of charter schools was to offer parents more educational choices.

And he does not mention the other role that economics might have played. In 2006, the Plain Dealer reported, Townsend received almost $55,000 from White Hat for his charter school board service that year. Part of that money came from board members scheduling one meeting to discuss six or more schools at a time, and then collecting six or more fees.

A 1999 CONTRACT BETWEEN Townsend’s board and White Hat preclud- ed the board from approving how money was allocated. In 2002, Townsend and his board agreed to let White Hat directly collect 97 percent ofthe available state funds, and thus put state money behind the wall ofa private corporation.

“My clients didn’t have the resources to really vet the contract, to make sure the contract allowed the board to fulfill the mission of helping low-income kids,” DiCello says. Townsend and other board members trusted White Hat’s “package presentation”ofthe contract.

In December 2003, a report by the Legislative Office for Education Oversight (a government agency established in 1990 to provide independent evaluations for state-funded programs and abolished in 2005), reported 2001-02 test results for several charter schools, including Townsend’s first, Hope Academy Broadway Campus. An average of11 out of 52 fourth-graders passed reading, math, science and citizenship exams. Of29 sixthgraders tested, an average of two passed the same exams. Writing was the only field in which Hope Academy Broadway’s students tested well.

Still, it was another two years, even by DiCello’s reckoning, before board members began to get tough with White Hat.

“The thing is,”he says, “you can be told as a board member, well, we’ll get to it in the next meeting. You can have six meetings in a year, and be told six times we’ll get to it, and a year is gone. From a point of view of sheer time, it looks pretty long in development. But I think it was a series of meetings, a series of rejections that ultimately leads to the 2005 point, when [the board] wanted more accountability.”

When board members finally stirred the pot in 2005, White Hat refused to answer their questions. In March 2006, board members reduced White Hat’s direct collection of state money to 96 percent. Then the board took away one bookkeeping contract.

“It was as if my clients were just polished figureheads,” DiCello says, “and they started to get frustrated with that, and they expressed their frustration.”

But even in trying to stake out their independence, the board members seemed to prove their own incompetence. They cut White Hat as their accountant and hired an outside firm, but the company they chose was reprimanded by the state auditor for lack of supporting documentation, purchases allocated to the wrong schools and incomplete accounting practices.

Townsend was also singled out for collecting almost $2,000 in improper, nonschool-related expenses. Cleveland Zoo tickets were purchased for $110. Registration fees, totaling nearly $1,600, were paid for Townsend and a guest to attend conferences hosted by the National League of Cities and National Black Mayor’s Conference.

The audit also took issue with several board members’ practice of collecting multiple fees for one meeting, a practice the audit labeled “abusive.”DiCello blames it on bad advice. “I don’t know if this issue snuck up on them, like we’ll get to it, we’ll discuss it later, no one is telling us it’s wrong, so therefore maybe it’s not.”

An official board response contained in the audit report offers a different excuse, only slightly more plausible: That downsizing at White Hat required board members to put in between 15 to 50 hours a week attending to school operations previously handled by the company. So the compensation for multiple meetings was in effect payment for excess hours over monthly time periods. (DiCello wonders about the timing of this audit report and hints at a conspiracy to make his clients look bad. “Is it a coincidence that the auditor is getting this information now?” he asks. “I certainly don’t think so.”)

APPARENTLY TIRED OF BATTLING with boards, White Hat ran to its powerful friends in Columbus, seeking changes to the system it had helped put in place. In December 2006, Republican legislators quietly slipped new charter school provisions into a bill that dealt largely with teacher background checks. The provisions barred anyone from serving on more than two charter school boards and allowed a management company to appeal to the charter school’s founding institution if the board tried to end its contract. Ifthe decision was overturned, the board would be disbanded and the management company would choose a new one.

Led by Townsend, nine board members have sued on grounds that the law, which went into effect in March, is unconstitutional and deprives charter school boards statewide of the right to oversee management companies. DiCello says a decision in the case should be ready in a few weeks.

A spokesman for White Hat, Bob Tennenbaum, refused to answer any questions related to board members.

DiCello, meanwhile, seems to want to keep his clients’ options open.

“I really want to emphasize,”he says, “I really want this to be known: my clients do not have a desire to terminate White Hat at this time. And more importantly, we recognize that White Hat has considerable resources and skills for the kids, and remember, it’s about the kids.”

Friday, August 31, 2007

Confessions of a White Hat Cube Farmer

A fine piece of work on the Ohio charter school fraud from Cleveland Scene News. Helloooooo, Governor Strickland.

Go Amy Rankin--and thanks for Education at its worst:

Suddenly, six groomed businessmen, cologned with importance, stroll in behind an absolute giant of a man, clad today in grandpa sweater and signature 10-gallon white cowboy hat.

The giant approaches tiny me. I already know who he is: Mister David Brennan. I don't know whether to sit or stand. I stand.

"Amy, nice to meet you," booms the giant. "I was hoping you could tell my colleagues and I why you enjoy being an adviser here." He gestures to the businessmen standing at the threshold of my canvas-and-metal cage.

I lean back, grasping the desk, hoping to mask my fear of saying something stupid or, worse, not being able to come up with anything to tell this important-smelling man, who holds my job in his extremely large hands.

The businessmen, having now been formally introduced as the Board of Education of Mr. Brennan's own White Hat Management, gaze at me with tight, polite smiles, folded hands, and expectation so forced that I gun instantly for what I know they want: The Canned Answer.

"I love working here because I think there's no better feeling than helping kids succeed at education."

The important men coo. Mr. Brennan is pleased. Here I am, smack in the presence of Mister Billionaire, who owns half the city of Akron and the charter school I work for, and I beam like it's my job.

As the men resume their tour of the cubicled "school," I overhear Mr. Brennan turning to one of the suited men, saying with conviction, "Internet-based schooling is the education of the future. As long as a child has a computer, he can learn wherever and at any time of the day. I believe this is the future of public education today."

The men coo again. I can still smell their aftershave as they stroll on, the big man with the big hat towering over them.

Employees welcomed the excitement interrupting another mundane workday when we were informed via e-mail that "Mr. Brennan is coming -- clean up your cube!" Sure enough, he'd come with a suited entourage of investors, business partners, and local officials to display his creation and talk to the animals chained to headsets in walled cubes, gazing into identical blue screens.

In many ways, we were like the rest of corporate America. But this wasn't supposed to be corporate America. This was meant to be the Forefront of Education, where technology meets classroom. This was White Hat Management.

The privately owned company was founded in 1998 by industrialist and self-proclaimed "education activist" David Brennan. And as his publicly funded, privately operated chain of charter schools erupt like a bad rash across Ohio and the rest of the country, one could say it's Mr. Brennan's way of turning education into big business.

White Hat is the largest charter school operator in Ohio, with over 16,000 students and 34 schools, including Hope Academies and Life Skills Centers. "If Brennan's White Hat charter-school chain was a recognized school system, it would be Ohio's ninth largest based on enrollment," a 2005 press release boasts.

Like McDonald's, White Hat serves as many kids as possible as cheaply as possible. But what many don't know is how White Hat is making millions and funneling scarce education money to profit a private empire.

Before White Hat took me on board, I was substitute teaching at Kent City Schools, but an impending funding crunch would soon force cutbacks. All full-time temporary teachers were required to have teaching certificates. Since I didn't have one, I applied at a local temp agency. That's how I landed the job at the Ohio Distance & Electronic Learning Academy, Brennan's internet school, where kids are supposed to earn their high-school diplomas online.

With buildings being shut down and teachers being canned in droves across the state, White Hat seemed to be the only place hiring. I was brought on board as an academic adviser. It seemed like a pretty cool gig at the time; I would be helping students graduate, via phone and e-mail, from a cubicle farm in downtown Akron.

On my first day at OHDELA, I was shown to my cube, given a large gray binder, and ordered to copy my own training manual. One week later, promptly at 8 a.m., a huge pile of messy files and the educational fates of 150 students were handed down to me by four overworked and mentally scattered advisers. It was the beginning of the school year. Enrollment was picking up rapidly. The little online high school was approaching an enrollment of 1,500 kids -- with a staff of only 30 to 40 teachers and advisers to steer their education.

We never actually met kids face-to-face. All tests are done online, and homework is e-mailed to teachers, who are housed in the same cubicle farm as advisers.

White Hat sells education as an all-expenses-paid package deal, promising families "individualized home-based educations . . . from the comfort and safety of home." Students are promised a free computer and "teachers who are dedicated to supporting families and students."

But during my first week as an "academic adviser," I almost drowned in a flood of desperate phone calls, e-mails, and voice mails that piled up before I arrived. There were frantic calls from kids and parents who'd just gotten their computer and didn't know where to begin. There were students who'd been enrolled for months, but had made no progress because they didn't know how to log in or find their classes online.

It became clear that we advisers were hired as an afterthought to rescue families stuck in White Hat's cyber black hole. While the teachers waded through hundreds of papers from faceless students, the advisers were the students' lifeline, there to bridge holes and bandage gaps in an organization that was thrown together in a hurry.

Parents rejoiced that there was finally someone to answer their calls, yet were soon dismayed to discover their child was desperately behind. A good percentage had proceeded blindly under the notion that by simply logging in to "Learning Opportunity Hours" -- i.e., attendance hours -- they would be automatically propelled to the next grade. Advisers had the unfortunate task of informing them that they still had an entire list (and a lengthy one) of tests and assignments to complete for each class, as well as another list of classes they must complete before moving on to the next grade.

"Don't worry," we were instructed to tell discouraged families. "At OHDELA, you can work through the summer and you can stay enrolled until you're 21, so you've got plenty of time." After all, the longer they stayed, the more money White Hat received from the state.

My job at Mr. Brennan's gerbil cage was contacting students and parents every two weeks, telemarketer-style, and attempting to hold kids accountable for their progress. More often than not, there was no progress at all for a variety of excuses -- valid and not -- concocted by students who seemed less interested in their educational well-being than I was. Faced with choosing between the importance of their education and the irresistible allure of the Xbox, the odds weren't good.

So every day at 8 a.m., I strapped into my headset and launched into my 30-plus Cheerleader/Bad Guy phone calls, for 11 bucks an hour with zero benefits.

Parents, I often found, were too busy working one or two jobs to be responsible for their child's progress. Accountability for the student fell to me, and all I could do was call, threaten, persuade, and call some more. Occasionally the school offered money to bribe students into finishing their classes. Could you imagine getting 20 bucks from your public-school teacher for finishing Algebra I?

The trouble with online schools is inherent: Teens are expected to be mature enough to school themselves. But with no face-to-face interaction with parents or students, the school has no control, and accountability ultimately falls by the wayside.

Every day I'd receive a call that someone's hard drive crashed or contracted hundreds of viruses, leaving students unable to work until a loaner was sent. As White Hat bureaucracy would have it, that meant a two- to three-week wait. Missing that much time at a normal school would prompt calls to principals and social workers. But at White Hat, it was all too common for students to miss weeks, even months, over technical difficulties alone.

After a few weeks, I had a clearer understanding of why these families came to OHDELA. Their stories had a common thread: They were looking for something better than their local public schools. Kids heard about the online school from other kids and begged their parents to enroll them. Kids naturally found it a cool idea. It meant sleeping in, not having to go to class. To their parents, it meant having their child at home instead of exposed to increasingly dangerous neighborhoods. White Hat sold it as a win-win deal.

We have the internet now! We can go to school without getting out of bed! It's the age of technology!

It also meant a free computer to families who'd never owned one. Unfortunately, many of the students I spoke with didn't even own a desk or chair. They were attempting to complete a high-school education on the floor of their bedroom, while the rest of the family vied for use of the brand new toy.

I left my cubicle every day feeling sorry for families who were lost and confused. Many had enrolled in our school as a last resort, and we left them more discouraged than ever. As I diligently explained buttons and links and log-in hours from the other end of the line, I could sense the students' declining hope of ever receiving a high-school diploma.

White Hat, meanwhile, seemed more preoccupied with charting spreadsheets, calculating endless employee performance measures, appeasing streams of irate mothers, and raking in cold, hard state cash.

Organizationally speaking, it was a nightmare on steroids. The place was built on a lopsided pyramid of spreadsheets, spreadsheets, and more spreadsheets. I was given the daily task of updating huge Excel workbooks with student data and test scores. Copies would circulate throughout the office, so that no two staff members had the same information about one student.

Every morning I arrived to stare eight more hours of drudgery in the face. It was one of those jobs that are traumatic to any creative, intelligent mind. I had to admit to myself that it really was nothing but a poorly run credit factory with killer marketing.

I've never witnessed lower morale at a workplace. Rumors circulated, cliques gossiped, managers took sides, and everyone had a cynical attitude toward the company. Many of the young, inexperienced teachers were hired straight out of college or after long bouts of trying to find "real teaching jobs." They became resigned to their roles as cubicle slaves, with no control over the material they "taught."

I felt dirty, like I'd landed in the middle of an illegal operation. I wanted to say something. But White Hat was paying my rent, just as it was everyone else's. And after nine months of working through the temp agency, the company finally hired me and handed over some benefits.

Though students could pretty much do as they pleased, staff was under strict control. We swiped in and out with special badges so that every move, every bathroom break, was tracked. Time at your computer was logged electronically to ensure you were available to answer the phone not a minute less than eight hours a day. Phone calls and e-mails were meticulously charted. If your performance wasn't up to par, you'd be summoned to the principal's office for a middle-management-style wrist-slap, and your chart soon contained the notation of troublemaker.

Each Tuesday at 9 a.m. sharp, we attended mandatory meetings in which our numbers were run. Our manager prided himself on being a "numbers guy." Our phone calls were graphed individually and in relation to co-workers' numbers, then were printed out, stapled, and handed to us on our way into the meeting. We'd talk about changes and details we had to keep track of. We gazed at fancy graphs, stats, and bell curves. But we didn't talk much about improving the educational experience of our students.

White Hat sells itself as a solution to at-risk kids and staggering dropout rates. But our school seemed almost perfectly designed for those kids to fail.

A large portion of the students arrived from poorer districts and the other side of the digital divide. Many were transferring directly out of Cleveland and Akron city schools, and most lacked basic computer skills. I remember one mother who called to ask if e-mail could be received while the computer was turned off. Most of the 150 students I worked with needed slow, methodical instructions just to attach a homework assignment to an e-mail.

Of course, it borders on the impossible to complete four years of internet high school when one can barely operate a computer. The Enrollment Department was supposed to screen for this type of thing. But each student meant another $2,500 from the state. Whether we could help a kid or not was irrelevant.

At OHDELA, the only tools students were given were books that arrived via snail-mail, a $600 computer, and advisers like me. Overhead at an internet school is minimal. A Columbus Dispatch investigation revealed that "nearly a third of the state funding received by each school was pocketed by Brennan's operation."

During my year at White Hat, many students came and left, yet I witnessed very few who made progress. I attended the first graduation ceremony of the school's existence. It was a big event, the kind Brennan loves to throw -- with caps and gowns, valedictorians, and truly bad motivational speeches. Twenty graduates out of a school of 1,500 made for a rather pitiful commencement march.

It's no secret that Brennan's schools are failing -- at rates far worse than the abysmal public schools they're meant to replace. White Hat's 20 Ohio Life Skills Centers, for example, are all on either academic watch or emergency. Not one meets the federal standard for yearly progress.

They do, however, meet Brennan's notion of a lucrative enterprise. State audit reports expose the Life Skills Centers as the real moneymaker. The schools, which target low-income students, are often housed in strip malls, herding three shifts of students through per day. They offer no music or art programs, extracurriculars or cafeterias.

Where the rest of the money is going is anyone's guess. Since teachers and administrators are technically employed by the entity of White Hat, not by the schools themselves, the company refuses to divulge such basic information as how many teachers it employs or what qualifications they hold.

The arrangement is beneficial for keeping state auditors at bay. A whopping 97 percent of White Hat's expenses are simply recorded as "professional services contracts" -- with the company providing unknown services to itself.

To legislators preaching fiscal responsibility, allowing such accounting tricks would seem the height of negligence. In 2005 alone, White Hat received $109 million from the state. Only Brennan knows where most of it went. But he's hedged his bets by shoveling millions to those charged with overseeing state money.

According to Sue Taylor, president of the Ohio Federation of Teachers, "Brennan and his family [wife Ann and daughter Nancy] gave $3.8 million to Republican lawmakers between 1990 and 2005." A sizable portion of that went to former state auditors Betty Montgomery and Jim Petro, both fiscal conservatives who nonetheless showed little interest in exploring where the state's money was going.

"Ohio taxpayers have no idea how the vast majority of the money going to Brennan's White Hat chain is being spent," says Taylor. "And no one is riding in to put a stop to it or ask what's happening to these children, because David Brennan makes big political campaign contributions."

I remember when U.S. Secretary of Education Rod Paige came all the way from Washington to visit our little school.

It was the morning of the company Christmas party, when we were coerced into performing mandatory skits for no beer, no bonus. Paige was coming that day under the guise of witnessing how his buddy, Mr. Brennan -- lavish contributor to the Republican Party -- was revolutionizing education in Ohio.

Prior to his arrival, we'd been given strict direction on how to act if Mr. Paige approached us. Appointed employees were instructed to rehearse an inspirational story or anecdote.

The secretary arrived with his own entourage, even more important looking and smelling than Mr. Brennan's. I peered out from my corner cubicle; we weren't to leave our desks for any reason. There was Mr. Brennan in signature white cowboy hat. He was guiding Paige around the office, allowing the cameras to capture all the back-patting and hand-shaking.

Today, the school's website advertises a quote from Paige, who, upon his return to the White House, called OHDELA "the future of education." Since then, White Hat has used the school as a model to create clones from Florida to Colorado. It now operates 50 publicly funded schools in six states, serving 23,000 students.

I witnessed firsthand Mr. Paige's "future of education." If he's right, America's own future is in deep trouble.