Charter schools spending public money like it belonged to them...Philly, NYC

[madfloridian]

and probably other places as well.

The city controller in Philly is trying to oversee how taxpayer money is being spent by the charter school companies. He is not very happy about what he is finding.

From the Philadelphia Inquirer:

Butkovitz: Charter schools spending like it's their money

City Controller Alan Butkovitz yesterday blasted the Philadelphia School District's Charter School Office for failing "to monitor charter schools," which spend millions in taxpayers' dollars.

Butkovitz released a scathing report citing financial mismanagement, excessive executive salaries and "opportunities for possible fraud" at 13 charter schools his office investigated over the last 14 months.

"Many charter schools, through leasing agreements and associated nonprofits, are transferring taxpayer-funded assets to nonprofits that are not accountable to the school district," the report said in one of its key findings. Butkovitz called for changes in the state's charter-school laws to bolster oversight of the schools. He is set to discuss his findings at a state Senate Education Committee hearing at Widener University today.

He said the school district spends more than $350 million in public funds on the 67 charters schools in the city.

A total of 13 schools in Philly are under investigation by him.

13 Philly Charter schools under investigation

Many of them for profiteering.

City Controller Alan Butkovitz's investigation of 13 Philadelphia charter schools found repeated examples of complex real estate arrangements in which charters leased or rented facilities from related non-profit organizations.

"The way the charter law is written and not enforced--there is a gigantic loophole through which people can profiteer," Butkovitz said. "This is not supposed to be a vehicle for maximizing profit for operators and related parties."

Turning public schools into profit for real estate. Not good.

In New York City many schools are being charged huge amounts per student by their management company, Victory Schools Inc. The interest is adding up, and the taxpayers are having to foot the bill.

From the New York Daily News:

Charter schools on hook for thousands of dollars in interest payments to for-profit company

Three city charter schools are on the hook for thousands of dollars in interest payments to a for-profit management company.

Victory Schools Inc. charges charter schools between $2,000 and $2,700 a student for back office support and help with curriculum planning and hiring.

But if the schools can't pay up, they get socked. The company charged more than $100,000 in interest payments to three of its schools last year alone, using rates ranging from 6% to about 15% if a school pays late.

And I agree with this statement:

"No school should be using tax dollars to cover interest payments, especially at credit card rates," said city Public Advocate Bill de Blasio.

Blending public and private money...and the profit is going to the private companies. Public schools systems are paying out the money, and the charter school management is getting richer.