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A group of charter schools in the Southeastern part of the state will face disciplinary action if they don’t soon provide the salaries of school personnel hired by a private contractor to work in the schools.

The State Board of Education voted Thursday to place the four schools run by Charter Day Schools, Inc. – Charter Day School in Leland, Columbus Charter School in Whiteville, South Brunswick High School in Southport and Douglass Academy in Wilmington – under financial noncompliance.

The designation means that the charter school group will have 10 business days to comply with the request for information. After those ten days, the schools will be held under a financial disciplinary status, and will have another 10 days before any fines or sanctions go into effect.

The state board would decide what sanctions to take against the charter schools, and could decide to levy fines against the schools, freeze public funding or seek revocation of the charter schools ability to operate in the state, said Alexis Schauss, the school business division at the N.C. Department of Public Instruction.

Roger Bacon Academies, the company owned by conservative charter school founder Baker Mitchell Jr., has received millions in public funds as part of the company’s exclusive contracts to run four Wilmington-area charter schools.

Nearly 2,000 students enrolled at the four tuition-free schools this year, which draw down federal, state and local education funds. Mitchell also owns a company that leases land and school supplies to the public charter schools. Close to $9 million has gone to Mitchell’s companies over the last two years, according to the Wilmington Star-News.

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News

As the Wilmington Star News reports this morning, the North Carolina Department of Public Instruction has told Baker Mitchell’s Charter Day School, Inc. to turn over required salary information of face the possibility of sanctions. This is from a letter from DPI chief financial officer Phillip Price:

We have reviewed your submission in response to my August 13, 2014, request for specific salary information for your EMO/CMO employees reassigned to work directly with a charter school. The provided information was incomplete and does not contain the requested details outlined by my letter.

Our request is for the actual individual salary detail for all EMO/CMO employees assigned to work at the charter school. As outlined in my letter and in Paragraph 12.1 of your charter document, compliance to this request is required based on enacted legislation and the chartering documents for operation of charter schools. Failure to comply with these requirements is considered a violation of the Uniform Education Reporting System (UERS) and will result in financial non-compliance per State Board of Education policy TCS-U-006. Failure to comply is also a violation of the provisions of your charter.

The letter goes on to say that if the information is not received by next Wednesday, the noncompliance will be reported to the State Board of Education for possible sanctions.

As has been reported by NC Policy Watch here and on several other occasions and, more recently, by the national nonprofit news service ProPublica, Baker Mitchell is a controversial conservative activist and businessman whose “nonprofit” charter schools are run completely by a for-profit company he controls.

Click here to read the DPI letter.

Commentary

One of the most interesting parts of the Pro Publica report  in the News & Observer today about the huge profits from taxpayer money made by charter school operator Baker Mitchell is the story of how Mitchell lobbied the General Assembly for a tax break for himself and then denied it.

Mitchell was intimately involved in seeing the bill through as chairman of a pro-charter lobbying group, the NC Alliance for Public Charter Schools. Asked about the tax break and whether he had pushed for provisions that would directly benefit him, Mitchell told ProPublica, “There was another group that pushed that through. I didn’t have anything to do with it.”

But a lobbyist for Mitchell’s group, Debbie Clary, said, “It was our bill. I was the only lobbyist working on it.” Clary added, “The person most engaged was Baker (Mitchell).”

Whoops. It’s bad enough that Mitchell is raking in millions in taxpayer money with his questionable operation and apparently violating the law by not releasing financial details about his schools.

He at least ought to own up to his role in passing the legislation that is helping make him a wealthy man.

Commentary

The national nonprofit news site Pro Publica has a lead story out of North Carolina this morning about Baker Mitchell — the arch-conservative political operative who runs a chain of charter schools. This is the lead from the story, which is also front-paged this morning on Raleigh’s News & Observer:

“Baker Mitchell is a politically connected North Carolina businessman who celebrates the power of the free market. Every year, millions of public education dollars flow through Mitchell’s chain of four nonprofit charter schools to for-profit companies he controls.”

The story goes on to explain in great detail (much of it previously reported on NC Policy Watch) about how Mitchell has figured out a way to merge his right-wing political views with a skill for making boatloads of money at the public trough.

All in all, it is another powerful indictment of how the originally benign phenomenon of charter schools has been largely captured by the far right and money grubbers and thereby corrupted and perverted.

Read the entire story by clicking here.

News

Roger Bacon Academy, the private, for-profit education management organization (EMO) that runs four public charter schools in eastern North Carolina and is headed by prominent charter school advocate Baker Mitchell Jr., appears to have failed to comply with a state-imposed September 30 deadline requiring public charter schools to disclose the taxpayer-funded salaries of any staff who are employed by the private EMOs that manage them.

A directive issued on August 13 by the N.C. Department of Public Instruction’s CFO, Philip Price — on behalf of State Board of Education Chair Bill Cobey – requested all NC charter schools who contract with private, for-profit EMOs to disclose the salary information of the EMO employees who operate or help staff their schools no later than September 30, 2014. Failure to comply with this directive would result in the state placing the charter schools in financial noncompliance status, which could set them on a path toward closure.

The non-profit organization that Roger Bacon Academy manages to oversee their four schools, Charter Day School, Inc., submitted documentation to DPI on September 30, but did not include salary information for employees of the private, for-profit company.

“CDS does not possess individual salaries paid by any private corporation that furnishes services,” said John J. Ferrante, chairman of the board of Charter Day School, Inc., in his September 30 letter to DPI.

North Carolina’s charter schools are public and receive taxpayer dollars to operate.

Last summer, the General Assembly approved legislation that allows private, for-profit charter school management companies to keep their employees’ salaries secret, even though they are paid with public funds.

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