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K12, Inc.It may be 10 days before Christmas, but there are still a lot of worrisome/controversial policy decisions taking shape in the halls of state government this week. As noted in this morning’s Weekly Briefing, a state legislative committee will meet this Friday to recommend rolling back some important consumer protections in the mortgage lending industry.

Now, comes word that a special committee appointed by the State Board of Education will be meeting tomorrow to interview two private, for-profit companies seeking to run virtual charter schools in North Carolina — at least one of which (K12, Inc.) has been shown on numerous occasions to be a predatory failure. As Bloomberg Business Week reported last month:

“K12 Inc. (LRN) was heralded as the next revolution in schooling. Billionaire Michael Milken backed it, and former Florida governor Jeb Bush praised it. Now the online education pioneer is failing to live up to its promise.

Plagued by subpar test scores, the largest operator of online public schools in the U.S. has lost management contracts or been threatened with school shutdowns in five states this year. The National Collegiate Athletic Association ruled in April that students can no longer count credits from 24 K12 high schools toward athletic scholarships.”

Of course, K12, Inc. isn’t an unknown to the State Board of Ed. To its credit, the Board has been holding the troubled company and its whole scam at bay for years. Unfortunately, K12, Inc. lobbyists prevailed upon the privatizers at the General Assembly to slip a provision into the state budget bill this past summer which directs the Board to approve two virtual charters as part of a “pilot” program. Now, low and behold, there are only two applicants for those slots.

Whether this means that the State Board will roll over and approve K-12, Inc. or show some backbone and tell the company and its buddies in the legislature to stuff it remains to be seen. Let’s hope for the latter eventuality.

Lest you have any doubts about the appropriateness of such a response, Read More

Commentary

NC Policy Watch contributor Betsey Russell recently forwarded a story from the Akron Beacon Journal that raises further doubts about for-profit charter schools. It turns out that the Beacon-Journal has been conducting a months-long study of charters in Ohio and discovered that for-profit charters were consistently among the worst performers. As the article notes:

“Ohio’s charter schools have a national reputation for hiring for-profit companies that produce poor academic results.

Only three of 26 states had lower performing charter schools, according to a Stanford University study of states with schools in operation long enough to compare results.

After a year in a charter school, Ohio students typically lag behind district school students by weeks in reading and months in math, the study finds.

In most states, it’s the opposite.

A factor in the difference appears to be the motivation to make money.

Tennessee, New York and Rhode Island, which the study reckons have the highest-performing charter school sectors, are among the six states that ban for-profit companies.”

The story goes on: Read More

Commentary

charterschoolsIt’s funny and sad how humans have to constantly relearn basic lessons of history. The latest exhibit here in North Carolina comes from the world of education where, once again, we’ve been reminded of just why it is that our forebears established a uniform system of public education.

It’s not that children didn’t receive education prior to the construction of a statewide public system that featured uniform rules, standards and oversight. The “genius of the market” assured that some kids did very well.

The problem, of course, is that “market failures” and parental “choice” also assured that huge numbers of children got very little education. To make matters worse, no one was ultimately responsible for the failure and, not surprisingly, North Carolina was a poor and backward state with a handful of “haves” and boatload of “have nots.”

We were reminded of these simple truths about the past again this morning by this story on the Charlotte Observer documenting the latest outrage from the world of barely-regulated charter schools. As the Observer reports: Read More

Commentary

Loan sharksIt’s one thing for progressive pundits and advocates to talk in generalities about what the election of Thom Tillis and his conservative colleagues to the U.S. Senate will mean in the policy world next year, but here’s a much more concrete and troubling example of what we have to look forward to. According to a pair of global banking giants, scalawag, for-profit colleges are now a hot investment opportunity.

As reported this morning by Alan Pyke at Think Progress:

Investment advisers from both Credit Suisse and BMO Capital Markets issued research notes this week connecting the Republican victories on Tuesday to an improved outlook for education companies. The analyses were based primarily on future legislative predictions. The Higher Education Act needs to be renewed, and BMO’s Jeffrey Silber argued that a Republican Senate will produce a bill that is much friendlier to the companies that run for-profit schools, according to Buzzfeed. Credit Suisse wrote in Barron’s that the “diminished regulatory risk characteristics of a Republican-controlled electorate” makes student lending company stocks likely to rise in value because “Republicans have historically fought detrimental legislation originating from Congressional Democrats.”

Here’s what that means when translated to everyday English: With conservatives exercising complete control over Congress, lobbyists for all sort of sharks and con artists will be like pigs in slop more than ever before. And one of the top scamming industries these days in modern America is the for-profit college business. As the article notes:

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Commentary

It’s probably just a coincidence that the biggest donor to the state’s new sketchy economic development nonprofit is Duke Energy that ponied up $200,000 to help the nonprofit meet its first year goal of $250,000 in private contributions.

That donation surely has nothing to do with the state’s ongoing battle over regulation of the company’s leaking coal ash ponds across the state. There’s no chance that Duke officials were trying to keep Gov. Pat McCrory and his administration happy with the donation to the nonprofit that is so important to the governor.

It’s all probably above board. Nothing nefarious here. No expectations, just $200,000 out of the goodness of Duke Energy’s heart.