Virtual charter school appeals court order, still wants to open in N.C.

N.C. Learns, the group behind a proposal for a virtual charter school, plans on appealing a Wake Superior Court judge’s order that put the school’s plans on indefinite hold.

The school would have been run by K12, Inc., a Wall Street-traded educational company that gets most of its revenue from public dollars for online-only schools it runs in more than two dozen state around the country.

Wake Judge Abraham Jones ruled on June 29 that the state board didn’t have to review an application  submitted by the online-only school, and overturned an administrative judge’s decision to grant the school permission to open.  (Click here to read a past story about the case.)

N.C. Learns, a non-profit whose start-up costs are being paid for by K12, Inc., is appealing Jones’ order to the N.C. Court Of Appeals, according to a notice of appeal filed in the Wake County Courthouse July 27.

The N.C. School Board Association and the N.C. Justice Center joined the state board in opposing the virtual charter school, arguing that school districts around the state would have their funds depleted for an online-only school with questionable performance in other states. (N.C. Policy Watch is a project housed under the N.C. Justice Center, an anti-poverty statewide advocacy group.)

The appeal is also seeking to overturn Jones’ decision to allow the school board association from intervening in the case, according to the notice written by state Sen. Fletcher Hartsell, who was hired to serve as the attorney for the proposed virtual school.

The company hoped to set up shop in North Carolina after the state, in 2011, lifted its long-standing cap on charter schools. But the company, which has a reputation for aggressively pursuing business in other states, took a different route than most charter schools and attempted to force the N.C. State Board of Education to review its application outside the timeline that had been set out for charter schools in the state. It got initial approval by the Cabarrus County School Board, which agreed to sponsor the virtual school that would draw from students around the state in exchange for a kickback of the school’s overall public funding.

The State Board is the state agency tasked with overseeing and running the state’s public school system, including the growing number of charter schools. Charter schools are tuition-free charter schools run outside the confines of traditional public school systems by non-profit board.

In the case of K12, Inc., N.C. Learns would by the non-profit organization that has the direct dealings with the state, while contracting fully with K12.

A report that came out earlier this month by the National Education Policy Center, an education research group that’s largely been critical of the privatization of education, found students K12, Inc.-run virtual schools perform worse than their public school peers. Less than a third of K12, Inc. schools meat the Adequate Yearly Progress goals outlined by the federal education department. National, 50 percent of all public schools meet that threshold.

K12’s stock dropped after the report’s release and is now trading at $18.06 a share, a dollar up from its lowest price in the past year.  The company is also facing an investor law suit alleging that top officers at the company weren’t forthcoming about how students at the schools were performing.


  1. Evan Degnan

    July 30, 2012 at 5:07 pm

    Got to love conservatives who are all about local control/solutions for education when it’s about school choice (segregation) or banning evolution from being taught. Yet now they want to give power a ‘wall street traded’ company. Isn’t the whole point of Wall Street that only profits/shareholders matter? I guess in the future, parents/kids will have to buy stock in the school they attend. Maybe extra bathroom passes for preferred shareholders?

  2. david esmay

    July 30, 2012 at 5:56 pm

    Follow the money, straight into Fletcher Hartsell and Paul Stam’s pockets. I wouldn’t be surprised if Dave Murdock doesn’t have a stake in it. He just sold the island of Lanai and has a few hundred million sitting around, and he owns Hartsell and Hartsell controls Cabarrus county. Seems like a good place to start some social engineering Wall St. style.

  3. Paul White

    July 31, 2012 at 11:26 am

    Why don’t we allow all school district to open their own virtual school program. This would keep students in the district, funding in the district, while providing parents another choice for their kids. Makes perfect sense to me.

  4. gregflynn

    July 31, 2012 at 2:59 pm

    There is already a North Carolina Virtual Public School program that districts can participate in. It is the second largest state virtual school in the country.

  5. Paul White

    August 1, 2012 at 4:23 pm

    Yes, but it doesn’t serve students fulltime from grades k-12 AND districts have NO control over the virtual school!

  6. Paul White

    August 1, 2012 at 4:25 pm

    NC Virtual is only a supplemental virtual school. I would like to see their test results! They are NOT good! If we are going to compare apples to apples then NC Virtual should publish their success data. Let the districts have the control over how their money is spent, not the state! Local control!!!!

  7. Sarah Ovaska

    August 1, 2012 at 4:31 pm

    @Paul — You’re right in that the N.C. Virtual Public School only offers supplemental classes at this point. It also works quite a bit differently — students take the classes online, but are usually still in classrooms in their own school districts. It tends to help kids that want to take classes that aren’t offered (advanced physics, Chinese, Arabic, etc.) as well as classes students can take to make up for lost credits. Each class ends up costing a few hundred dollars — around $350.
    I don’t know of any testing scores, because it doesn’t enroll students full-time, and the NCVPS hasn’t really been funded at that level.
    The model being proposed by K12, Inc. would put children into a full caseload of classes, all taken from a home computer with supervision provided (hopefully) by a parent or guardian.

  8. William Thomas

    August 2, 2012 at 10:13 am

    I think Virtual/Online Public Schools and Colleges are great if a student has access to a computer and is computer literate and wants to take classes online. It would save the state money by reducing the number of students bused back and forth to school every day and it would reduce the burden on teachers in regular class rooms.

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