Charter Schools: The Smiling Face ofDisinvestment

 

By

Alex Molnar

 

Center for theAnalysis of Commercialism in Education (CACE)

School of Education

University of Wisconsin-Milwaukee

P.O. Box 413

Milwaukee, Wisconsin 53201

 

October 1996

 

 

Originally published in Educational Leadership Vol. 54, No. 2,October 1996

Charter schools are hot. But willcommercial motives, money problems, and unproven boasts about student gainscool down the education reform of the '90s?

Everyone, it seems, loves charterschools. Time magazine has called them the "New Hope for PublicSchools" (Wallis 1994). The New Democrat, the Democratic LeadershipCouncil's journal, says charter school advocates are "Rebels With a Cause"(Mirga 1994). And The New York Times (in an unusual note of irony) calls themthe "Latest 'Best Hope' in U.S. Education" (Applebome 1994).

American Federation of TeachersPresident Albert Shanker launched the movement when, in a 1988 National PressClub speech, he called for empowering teachers by creating "charter"schools that focused on professional development and had a clear commitment toimproving student achievement (Sautter 1993). Since then, the rise of charterschools to the top of the educational reform agenda has been spectacular.

To many educators, parents, andpoliticians, the charter school idea represented a public education alternativeto private school voucher proposals. It was an idea they could embraceenthusiastically because it seemed to protect public education as aninstitution and at the same time provide for fundamental reform and systemic"restructuring." As a bonus, charter schools had more media sexappeal than, say, site-based management.

Zealots, Entrepreneurs, Reformers

Tom Watkins (1995), the directorof the Detroit Center for Charter Schools, says charter school advocates areusually one of three types:

1. Zealots, who believe that"private is always better than public," market systems are alwayssuperior to public systems, "unions are always the problem," andstudents at private and religious schools outperform their public counterparts.Neoconservative supporters, such as Hudson Institute Fellow Chester Finn andformer Secretary of Education William Bennett, probably fit most comfortably inthis category.

2. Entrepreneurs, who want to makemoney running schools or school programs. Edison Project charter schoolsoperating in Boston, Michigan, and Mt. Clements, Michigan are examples ofprivate entrepreneurs using charter school legislation as an opportunity toturn a profit.

3. Reformers (child-, parent-, andteacher-centered), who want to expand public school options and provide thesort of creative tension they believe will help improve all schools. It is thisgroup--perceived as representing a kind, moderate, educational middle--thatgenerates most of the favorable press reports about dedicated individualsstruggling to make a difference in the lives of America's schoolchildren. Theseare the people (and Watkins places himself here) who have given the charterschool movement its air of mainstream respectability.

Despite the rosy image provided bythe child-centered reformers, most of the money and political influence drivingthe charter movement have been provided by the zealots and the profiteers.

Prairie Fire Reform

Charter school reformers aim theirrhetorical firepower at those ever-popular sources of evil in American publiceducation: overregulation and unresponsive bureaucracies. Remove the regulationand dismantle the bureaucracies, their logic goes, and--voila thousand flowerscultivated by the unfettered ingenuity, energy, and commitment of parents andteachers will bloom. The idea is simple, direct, and appealingly libertarian.

In 1991, Minnesota became thefirst state to pass a charter school law. The Minnesota legislation enabledschool districts to "charter" schools organized by teachers. Theseschools were freed of most state and local regulations and operated asnonprofit cooperatives that were legally autonomous. Existing nonsectarianprivate schools also were allowed to apply for charter status. For the mostpart, the Minnesota legislation met Shanker's criterion of empowering teachers.

Within fours years, charter schoollaws had been adopted from one end of the country to the other. At the end of1994, 11 states had some form of charter school law on the books and 134charter schools had been approved. By late summer 1996, 25 states and theDistrict of Columbia had passed laws. The number of charter schools approved hadjumped to 246, of which 110 were up and running.

An August 1995 survey of these 110charter schools found that about 27,500 students were enrolled. Most of theseschools were small (about 250 students on the average--only 140 if Californiaschools were excluded). The schools were most often located in leasedcommercial space (in Hull, Massachusetts, for example, this meant eight roomsin the Seashore Motel). Two-thirds wanted to attract a cross section ofstudents and about half were intended to serve at-risk students. Their academicfocus was primarily on "integrated interdisciplinary curriculum" or"technology" or "back to the basics" (University ofMinnesota 1995).

Clearly as a result of thepolitical struggle among charter school advocates with different agendas, thepractical meaning of the term varies considerably from state to state. At aminimum, however, all states defined charter schools as public schools thatoperate under a special contract or charter. Depending on the state, thesponsor granting that charter could be a school district, a university, a stateeducation board, or some other public authority. Most, but not all, statesplace limits on the number of charter schools allowed.

Instead of having to meet moststate or district regulations, charter schools are accountable for such mattersas educational programming, academic results, and fiscal affairs under theterms of their contract with their sponsoring organization (Bierlein andMulholland 1995). The sponsor is in turn responsible for guaranteeingcompliance with the contract. In almost all cases, charter schools have beendesigned to be nonselective, tuition-free, nonsectarian, and based on choice.Funding depends directly on the number of students enrolled.

Laws Weak and Strong

One of the most significantdifferences among the various charter school laws is the degree of autonomythey grant the schools. Arizona, California, Colorado, Massachusetts, Michigan,and Minnesota have what are sometimes characterized as "strong" charterschool laws because they allow these schools to operate as legally independententities with a high degree of autonomy. In contrast, the so-called"weak" charter school laws passed by Georgia, Hawaii, Kansas, NewMexico, and Wyoming grant charter schools little more autonomy than otherpublic schools (U.S. General Accounting Office 1995).

Obviously "strong" and"weak" are in the eye of the beholder. Given the variety of reasonsoffered for embracing the charter school concept--to encourage innovativeteaching, to create new professional opportunities for teachers, to promotecommunity involvement, to improve student learning and to promoteperformance-based accountability, among others (U.S. General Accounting Office1995)--it is not surprising that charter school legislation has variedconsiderably.

Free-Market Accountability

As yet, no national evaluation ofthe effectiveness of charter schools has been completed. The Pew CharitableTrusts have funded a study to be conducted by Chester Finn and Louann Bierleinat the Hudson Institute. And the U.S. Department of Education has commissioneda study that should begin to provide some data in the next two or three years.

In the meantime there are a fewclues about the impact of the reform. A 1995 report issued by the IndianaPolicy Center, "Charter Schools: Legislation and Results After FourYears," found little in the way of systematic evidence that charterschools increased student achievement (Indiana Policy Center 1996).

In December 1994, the Minnesotalegislature released a report on charter schools in Minnesota. The authors didnot try to judge the success or failure of the charter experiment; they felt itwas too early for that. They did, however, highlight a number of problems thatthrew into question the idea that charter schools would provide a model forpublic school reform (Urahn and Stewart 1994).

Because Minnesota charter schoolswere free of all legal requirements placed on public schools, except thoseclearly spelled out in their charters, the charter schools didn't necessarilyhave to operate in open meetings or otherwise be open to public scrutiny. Thatmade it difficult for the public to hold them accountable for proper andefficient conduct of their activities. Accountability was further complicatedby a finding that some school boards granting charters were unwilling or unableto adequately evaluate charter school outcomes or student success.

One of the biggest problemsMinnesota charter schools faced was financing. Thus, in order to reduce class sizeand afford other reforms, the schools relied on experienced teachers to acceptlow salaries and take on administrative and other responsibilities. The schoolsalso had difficulty finding facilities and paying for even the most basicequipment--books and desks--without additional income from private sources thatcould not be relied upon for continuing, long-term support.

These problems are not unique. Ina recent survey of charter schools around the country, financial support and thelack of start-up funds were the most frequently mentioned problems (Universityof Minnesota 1995).The authors of the Minnesota legislative report concludedthat without increased support, "it is not clear that charter schools willbe able to function as anything but educational reform 'on the margin' "(Urahn and Stewart 1994).

Despite the report's perfectlyreasonable conclusion, most charter school supporters would be the last ones toadmit publicly that they are backing a reform that has neither a logical nor ademonstrated relationship to increased academic achievement and that will costsomeone lots of money to get off the ground and keep afloat. Most would ratherclaim that the market will somehow provide.

For this reason, charter schooladvocates often prefer to frame the issue of accountability the way vouchersupporters do. Real accountability, they say, is imposed by competition in themarketplace. Parents who "know what they like" and who are"empowered" to choose the school their children attend will sendtheir kids to a charter school if they think its program is good; and if theydon't, they won't. This view assumes parents know an effective school programwhen they see one and that they could not possibly be satisfied with anineffective school.

Undeniably, this position haspopulist appeal. In practice, however, parents' decisions about where to sendtheir children are much more complex than a simple judgment about a school'sacademic program. Considerations such as proximity to the school, workschedules, availability of after-school care, and extracurricular activitiesget thrown into the mix. Also, the ability of parents to choose the best schoolfor their children requires more than the freedom to walk away from schoolsthey don't like: they also must be able to get their children into schools theylike better.

The chance of a market creating amultitude of options for all parents, especially those in the most impoverishedurban areas, is so small as to be nonexistent. Obviously that is why no one hasyet explained in practical terms how to create the surplus educational capacityneeded to give parents such an opportunity. Should a dissatisfied parent decideto switch schools, who pays to keep a vast network of partially filled schools atthe ready? In the real world, financing limits parents' choices. Charterschools do nothing to change that basic fact.

Real-World Money Problems

If the popularity of charter schools demonstratesanything, it is America's enduring faith that major educational reforms can beaccomplished on the cheap. Charter school reformers in Massachusetts andelsewhere have sold the idea that charter schools won't cost anyone anything--areal win-win reform. This fiscal miracle is accomplished by a budgetary sleightof hand in which the money to educate charter school students is, for the mostpart, taken out of state aid to the district in which the student lives. In thecase of hard-pressed urban school systems such as Boston's, such financingfurther undermines the district's ability to serve the children attending itsschools.

Raising the necessary money is oneproblem; keeping track of it after it has been raised is another. Few of theinstitutions legally empowered to grant charters are likely to have the expertiseor the resources to monitor and enforce those charters. If educationalperformance contracting during the Nixon administration and the more recentcontract problems between Education Alternatives Inc. and the Baltimore andHartford school systems are any indication, we will soon be reading stories ofmismanagement and educational short-sheeting at charter schools.

In fact, in 1994, one Californiacharter school, Edutrain, went belly up with more than $1 million in publicmoney unaccounted for. Apparently the school administration had been spendingmoney to help pay the principal's rent, lease the principal a sports car, hirea bodyguard, and fund a $7,000 staff retreat in Carmel--this while teacherslacked textbooks and supplies (Schmidt 1994).

To some charter school supportersthe failure of Edutrain was an example of the educational market imposing itsdiscipline. The problem with their logic is this: Aneducational"market" does not punish the people who set up a schoolthe way a financial market punishes investors in stocks and bonds when shareprices plummet or a bond issuer defaults. In the Edutrain fiasco, the peoplepunished were the students who had their education disrupted and the taxpayersand students in the Los Angeles Unified School District who were out ofeducation money and received nothing in return. In the charter school market,the financial risks are socialized, while the financial gains are privatized.

 

Demonizing Teachers

The lack of a common educationalvision helps assure that the argument for charter schools is dominated byeconomic, not educational, ideas. Central to the logic of charter schools isthe idea that competition will force public schools, which now have a monopolyin providing educational services, to improve or perish as parents choose tosend their children to better schools. Unfortunately, how competition willresult in better teaching and more learning is never specified.

The assumptions are that educatorshave grown fat and complacent in the warm embrace of a government monopoly andthat a threat to their now-secure futures will force them to figure out how todo better. In this scenario, teachers unions are considered self-interestedculprits responsible for driving up the cost of education without accepting accountabilityfor student achievement.

Neoconservative charter schoolzealots, such as Chester Finn and the Center for Educational Reform's JeanneAllen, ridicule the idea that schools (particularly those in poor, urbandistricts) might need more money to improve. Any increase in funding would,from their perspective, be throwing good money after bad. In what has becomethe conventional wisdom in the charter school movement, the enemies of schoolimprovement are rigid union contracts; bloated, unresponsive bureaucracies; andoverregulation, not fiscal constraints.

Hostility toward teachers unionsand the teacher certification requirements they have achieved is built intosome so-called "strong" charter school laws, including those inArizona, California, Colorado, and Massachusetts. Under those laws, virtuallyany adult with "qualifications" is allowed to teach in a charterschool, or administer one for that matter, without the need for certification.It's an approach that is in some ways analogous to trying to solve the problemof access to health care by allowing anyone who can attract patients topractice medicine.

 

 

 

"Edventures" inExploitation

The surge of interest in charterschools seems to have energized a fledgling movement that wants to increase thenumber of what it calls "teachers in private practice." This isbilled as a movement for teachers who want to work as entrepreneurs instead ofemployees. The idea of teachers as entrepreneurs is couched in the language ofgreater professionalism and independence for teachers freed to work when andwhere they want, even free to set their own fees. To those who contend thatgood teachers are too often yoked to incompetents by union protections, theidea also is presented as a chance for good teachers to take their competenceto the marketplace and receive the greater rewards their talent will command.

In practice, however, the abilityof professionals to set their own fees depends on how many others are competingin the marketplace. Because the money available for public education isconstrained by political decisions, cost, not competence, will often be themost decisive factor in hiring.

Changing state laws to make iteasier to be a private practice teacher would most likely result in largenumbers of teachers finding themselves shut out of the more highly paidpositions with fringe benefits they might have had as school districtemployees. These teachers would be involuntary teachers in private practice,with the freedom to do the same work for lower wages and few opportunities toraise their incomes, whatever their competence.

This mirrors what has happened atpublic universities over the past two decades. As money to hire professors inpositions leading to tenure has steadily diminished, schools have hired moreadjuncts to work on year-to-year contracts at low pay with few, if any, fringebenefits (Judson 1996). They are, as the outside critics argue, free to changecareers. But a system that consistently turns away talented people underminesthe quality of higher education in the long run.

Certified and uncertified teachersin private and religious schools are already in this battered boat. That's whylarge numbers leave those mythically superior schools as quickly as they canfind a decent-paying job in a public school system. Anyone who thinks about itquickly realizes that charter schools can never occupy more than a very smallcorner in American public education without drastic reductions in wages or hugeincreases in education spending.

For the zealots and profiteers,charter schools are as much a vehicle for breaking up teachers unions andlowering wages as an education reform strategy. That is why so much of theirrhetoric demonizes teachers unions and paints them as self-serving enemies ofreform. They attack teachers unions for backing "weak" charter laws(for example, those that keep charter schools clearly accountable within thestructure of public education). As in universities, a continuing erosion ofteachers' wages could drive many of the best prospective teachers into otheroccupations. This most likely would lower the quality of public education,inevitably harming the poorest children the most.

 

Storefront Education

One of the most hotly contestedaspects of charter schools is who will run them. As originally proposed byAlbert Shanker, the idea was to "empower" certified teachers byfreeing them from regulations so they could run their program more effectively.But charter school laws in states that allow private and for-profit schools tooperate without certified teachers open the door to some strange possibilities.

Many people who start charterschools will work long and hard to accomplish their goal and some will havegood results. Many of these schools, however, won't last long. People burn out,they move on, their kids grow up, and for any number of reasons the effortcollapses.

The quick-buck operators, on theother hand, are likely to be much more durable. Attracted by the lack ofregulations, effective fiscal controls, or academic standards, and untroubledby the welfare of their students, they will be free to set up and close downover and over again, milking the system for as much as they can get. Their rolemodels will be the scam artists who bilk post-secondary students out of theircollege Pell Grant money and student loans by opening up fly-by-night schoolsof "business" or "technology" or even "hairstyling" and "nail academies."

One of the paradoxes of thecharter school idea is that the farther the schools are outside the publicschool system, the more they rely on the idiosyncratic vision of a few peopleand the more exotic their methods of funding become. As a result, even if thereare some individual success stories over the next few years, they may not serveas models elsewhere because their circumstances will be unique.

The Public Debate vs. the Real One

Free-market zealots are likely tocontinue to claim vindication or argue that their reactionary ideas need moretime to work. Supporters of public education will call the experiment a costlyfailure and marvel at the willingness to spend large sums on unprovenalternatives while cutting resources for the public system that serves mostchildren. With an absence of uniform standards, the war of educationalanecdotes and misleading statistics will remain "subject tointerpretation."

All the while, the desperation ofAmerica's poorest children and their families will grow. No state's charterschools, under laws strong or weak, will make an appreciable difference formost of these children. They are failing in public schools. They are failing inCatholic schools. They are going under. That is not because they cannotsucceed, but because they have been abandoned in a political and economicdebate that masks selfish interests with educational rhetoric.

No amount of entrepreneurial zealwill make up for a lack of sufficient resources to provide for them. Indeed, itis the market that has destroyed their neighborhoods and the livelihoods of theadults they rely on. Unleashing the market on the public schools will onlycompound the harm.

Charter schools, like privateschool vouchers and for-profit schools, are built on the illusion that oursociety can be held together solely by the self-interested pursuit of ourindividual purposes. Considered in this light, the charter school movementrepresents a radical rejection not only of the possibility of the commonschool, but of common purposes outside the school as well. The struggle is notbetween market-based reforms and the educational status quo. It is aboutwhether the democratic ideal of the common good can survive the onslaught of amarket mentality that threatens to turn every human relationship into acommercial transaction.

References
Applebome,P. (October 12, 1994). "Latest 'Best Hope' in U.S. Education: CharteredSchools." The New York Times.

Bierlein, L.A., and L. A. Mulholland. (1995)."Charter School Update and Observations Regarding Initial Trends andImpact." Policy Brief, Morrison Institute for Public Policy. Tempe:Arizona State University.

Indiana Policy Center. (March 1996). "CharterSchools: Legislation and Results After Four Years." ERS Bulletin23: 7.

Judson, G. (January 17, 1996). "Yale StudentStrike Points to Decline in Tenured Jobs." The New York Times.

Mirga, T. (April-May 1994). "Rebels with aCause." The New Democrat 6, 2: 17-22.

Sautter, R. C. (1993). "Charter Schools: A NewBreed of Public Schools," Policy Briefs, Report 2. Oak Brook, Ill.: NorthCentral Regional Educational Laboratory.

Schmidt, P. (December 14, 1994). "Citing Doubts,L.A. Board Revokes School's Charter." Education Week: 3.

University of Minnesota Humphrey Institute of Public Affairsand Education Commission of the States. (1995). Charter Schools: What Are TheyUp To? A 1995 Survey. Denver: Education Commission of the States.

Urahn, S., and D. Stewart.(1994). "MinnesotaCharter Schools: A Research Report." St. Paul: Minnesota House ofRepresentatives Research Department.

U.S. General Accounting Office, Health, Education andHuman Services Division. (January 1995). "Charter Schools: New Model forPublic Schools Provides Opportunities and Challenges." Report to SenatorsArlen Spector and Edward Kennedy. Washington, D.C.: U.S. General AccountingOffice.

Wallis, C. (October 31, 1994). "A Class of TheirOwn." Time 53-61.

Watkins, T. (September 6, 1995). "So You Want toStart a Charter School." Education Week:40.

Copyright 1996 by Alex Molnar.


Alex Molnar is Professor of Education at theUniversity of Wisconsin-Milwaukee, School of Education, Enderis Hall, P.O. Box413, Milwaukee, WI 53201. His latest book is Giving Kids the Business: TheCommercialization of America's Schools. (New York: Westview/HarperCollins1996).

As a bonus, charter schools have more media sexappeal than, say, site-based management.

If the popularity of charter schools demonstratesanything, it is America's enduring faith that major educational reforms can beaccomplished on the cheap.

Despite the rosy image provided by the child-centeredreformers, most of the money and political influence driving the chartermovement has been provided by the zealots and the profiteers.

In a recent survey of charter schools around thecountry, financial support and the lack of start-up funds were the mostfrequently mentioned problems.

In the charter school market, the financial risks aresocialized, while the financial gains are privatized.

The fact is, charter schools can never occupy morethan a very small corner of public education without drastic wage reductions orhuge increases in education spending.

For the zealots and profiteers, charter schools areas much a vehicle for breaking up teachers unions and lowering wages as aneducation reform strategy.

No state's charter schools, under laws strong orweak, will make an appreciable difference for most of America's poorestchildren.

Charter schools, like private school vouchers andfor-profit schools, are built on the illusion that our society can be heldtogether solely by the self-interested pursuit of our individual purposes.