In Dr. Oliver's ethics manual LEADING WITH INTEGRITY, he says "There is a need (for school administrators) to stand tall and do the right thing simply because it is right. Oliver then implies that doing the right thing, even though one is not affected personally and often at personal risk, involves speaking out in behalf of others - and provides the poem by Martin Niemoller:
"First they came for the Socialists, and I did not speak out -
Because I was not a Socialist.
"Then they came for the Trade Unionists, and I did not speak out -
Because I was not a Trade Unionist.
"Then they came for the Jews, and I did not speak out -
Because I was not a Jew.
"Then they came for me -
And there was no one left to speak for me."
Niemoller was a Protestant minister who watched as his fellow German citizens were taken away by the Nazis to concentration camps or worse. He lamented, as he sat in a Nazi prison for seven years, that he should have spoken out as his countrymen were hauled off, because they were soon to come for him.
It's what I keep in mind as I reveal the facts about virtual charter school millionaires, as many reporters and traditional public school supporters are beginning to be targeted by those millionaire chiefs. Just as the Niemoller revelation that speaking out against "paid for" power and authority sometimes involves personal risk, speaking out and revealing the truth about virtual charter school profiteering also involves personal risk at some level, and so it is with this article:
In Three needed reforms to rein in charter school profiteering, reporter Julie Erfle writes "We've been reading about it for months. Charter school CEOs, including a powerful Arizona legislator are making millions off publicly funded charter schools." The article appearing in the Arizona Mirror on December 5, 2018, could have been about virtual charter schools in Oklahoma with the following revised opening statement: We've been reading about it for months. Charter school CEOs, with the help of a powerful Oklahoma legislator, are making millions off publicly funded charter schools. Julie Erfle goes on - "Oh, well, we shrug. They took a risk, invested money, and made a profit. That's what businesses do. Except Arizona charter schools aren't supposed to function like private sector businesses. Rather, they are classified as public schools, receiving almost all of their funding from Arizona taxpayers."... just like in Oklahoma. Erfle writes "The contract is simple: We supply the cash to operate the schools with an understanding our dollars are neither squandered nor stockpiled. We expect school administrators, whether the title be district superintendent or charter CEO, to take reasonable compensation for the schools they oversee, not treat them like their personal ATM. But the Legislature has broken that trust with taxpayers, crafting loopholes to benefit their charter school friends and turning a blind eye to negligence and fraud." The powerful state legislator that Julie Erfle identifies was Arizona Representative Eddie Farnsworth. He was term-limited as a state rep. in 2018, so is now Senator Farnsworth in 2019. The powerful Oklahoma State Legislator counterpart to Senator Farnsworth is Senator Gary Stanislawski of Tulsa.
Julie Erfle continues "... the legislature has broken that trust with taxpayers, crafting loopholes to benefit their charter school friends (campaign donations) and turning a blind eye to negligence and fraud.... Last year a report authored by the bipartisan Grand Canyon Institute found an astounding 77% of charter operators used taxpayer monies for "questionable financial transactions."
Seventy-seven percent.
Surely that 77% couldn't have included the Oklahoma based Epic Virtual Charter? Maybe it is in the 23% group? I don't think so, with all the corruption already documented with Epic...
Erfle summarizes by writing "... we should look for reforms backed by whistleblowers and watchdogs (as opposed to bought and paid for lawmakers like Farnsworth and Stanislawski) and the charter owners who have been operating under good faith..."
"If we want real 'virtual charter school' reforms, then they should have, at a minimum, three important criteria:
1. Required annual audits by the state auditor and inspector...
2. End the Epic epidemic of self-dealing. Forbid charter owners and their relatives from profiting off curriculum, management fees and a host of other items that are illegal for traditional public schools.
3. Put restrictions in place to prevent inflated administrative overhead and compensation packages that turn some charter CEOs into millionaires while their traditional school counterparts continue to maintain low overhead costs.
Oklahomans deserve an accounting of our public-school dollars. We need a system designed to serve students, not legislators and their politically connected friends.
Monday, December 31, 2018
Wednesday, December 19, 2018
More EPIC Questions???
It is a fact that state agencies and departments are responsible for state owned equipment, and are accountable to Oklahoma tax-payers as to how tax dollars are spent. Article 10 section 15 of the Oklahoma Constitution states in part "... the credit of the State shall not be given, pledged, or loaned to any individual... nor shall the State.. make donation by gift..." In addition, State Law 70-16-121 states in part "... all textbooks.. shall be owned by such (school) districts...". The implication is that all school equipment and non-perishable materials are owned by the State, and it is illegal to gift such educational items to any individual, company, association, or corporation. The Oklahoma State Department of Education and Oklahoma public schools must account for all "state-owned" equipment such as computers, textbooks, band instruments, sports uniforms, etc... In addition, all school equipment and educational materials purchased by schools with federal dollars must be accountable to the federal government and tax-payers. All state and federal school materials and equipment must be inventoried each year to ensure tax-payer transparency and accountability.
It is an advertised fact that Epic Virtual Charter School provides (gifts) each enrolled student $900 to be placed in the student's education checking account - for purchasing computers, textbooks, private voice or sports lessons, etc... Since these items are not inventoried as "school owned", they must be considered gifts.
Am I missing something in this Epic analysis, or is this Epic practice highly illegal?
Update: Evidently, I did miss something - Gifting is all perfectly legal and here's how: Public Schools typically have old equipment, textbooks, computers, buses, etc... which must be thrown away or sold to the general public. Before trashing or selling though, the school must declare the unneeded items as "surplus". It's a good law, otherwise, schools might give perfectly good, usable items away to anyone, and avoid accountability for taxpayer dollars. Epic has evidently discovered a loophole in accountability laws - It simply declares equipment and education materials provided to students via checking accounts as "surplus equipment". When students do not return state owned equipment when exiting Epic, it simply declares the "gift" as surplus. Abracadabra.. it has now circumvented the "gifting law", and it's all perfectly legal.
It is an advertised fact that Epic Virtual Charter School provides (gifts) each enrolled student $900 to be placed in the student's education checking account - for purchasing computers, textbooks, private voice or sports lessons, etc... Since these items are not inventoried as "school owned", they must be considered gifts.
Am I missing something in this Epic analysis, or is this Epic practice highly illegal?
Update: Evidently, I did miss something - Gifting is all perfectly legal and here's how: Public Schools typically have old equipment, textbooks, computers, buses, etc... which must be thrown away or sold to the general public. Before trashing or selling though, the school must declare the unneeded items as "surplus". It's a good law, otherwise, schools might give perfectly good, usable items away to anyone, and avoid accountability for taxpayer dollars. Epic has evidently discovered a loophole in accountability laws - It simply declares equipment and education materials provided to students via checking accounts as "surplus equipment". When students do not return state owned equipment when exiting Epic, it simply declares the "gift" as surplus. Abracadabra.. it has now circumvented the "gifting law", and it's all perfectly legal.
Friday, December 14, 2018
Virtual Control of Epic
A media release on Thursday, December 13, reads "Sharp files bills to increase oversight and accountability of virtual charter schools". Senator Ron Sharp (R) of Shawnee knows that millions of taxpayer dollars are being poured into virtual charter schools with little or no accountability of expenditures, attendance, or student performance (See Epic Questions). He said that "People are tired of low rankings, poor test scores, and high drop-out rates yet these problems exist in our virtual charter schools and the state continues to pour money into them. Educators around the state are demanding changes."
Among the bills filed by Senator Sharp are:
SB 52 would prohibit public schools, charter schools and virtual charter schools from spending state-appropriated funds (public taxpayer dollars) on private extracurricular lessons, such as gymnastics or music lessons. Also prohibited, may be spending public tax dollars for private "educational" field trips.
SB 53 would prohibit a dependent school district (K-8th) from converting all or any part of the district into a conversion school allowing it to act like a (virtual) charter school. It also prohibits any conversion school from contracting with a (private) management organization. This bill will prevent any pyramid/ponzi schemes from being developed in Oklahoma public schools.
SB 54 would establish a new funding process for virtual charter schools based on course completion/progress... Monthly state aid payments would only be provided if a student makes a D or better in a course. Wow! this is an "epic" bill! With 10% or so of passing test scores, virtual providers will soon be out of business - and with around a 35% graduation rate, most virtual pyramid schemers will be reduced to millionaires... from their billionaire status. This could be the one bill that will break the epic piggy bank.
SB 56 would require virtual charter schools to submit attendance records of enrolled students to the student's resident district. Traditional public schools are required by law to comply with compulsory student attendance. Since virtual charter schools are public schools, and virtual charter schools exist within traditional public school districts - this bill will ensure compliance with compulsory attendance. It will also ensure that virtual charter schools are not receiving state appropriations for students not attending.
SB 57 would prohibit public schools, charter schools and virtual charter schools from providing bonuses for the recruitment of students or teachers. On Epic Virtual Charter School's website it provides information... that enrolled students may receive more money deposited in their "education checking account" for referring traditional public school students to Epic. It is also a fact that teachers receive bonuses for recruiting and retaining students for Epic. This philosophy of "recruitment for pay" is the foundation of a ponzi or pyramid business scheme.
*SB 60 would require superintendent salaries and fringe benefits to be paid with only district (ad valorem dollars and dedicated local funds. (Epic virtual charter school administrators can relax, as Epic is currently exempt in reporting its superintendent's salary!) The bill would stop any state appropriated dollars from being used for the (superintendent) salaries in order for them (state appropriated funds) to be diverted to the classroom... Currently the legislature does not set or control administrative salaries and SB 60 would ensure that local districts would not only control the decision but the funds that pay for superintendent salaries. The bill would also prevent state control of administrative spending and place more of it at the local level. It would become very difficult to justify "forced" state school consolidation if administrative function costs were only incurred locally.
SB 879 would amend 70 O.S. 2011, Section 3-132 by removing language allowing the State Board of Education to sponsor a charter school under certain circumstances. It would prohibit the State Board of Education from sponsoring certain charter schools after a certain date. This bill would effectively place the authority for sponsoring charter schools in the hands of local boards of education.
The accountability provided by these bills are for traditional public schools, brick and mortar charters and virtual charters, and are non-discimminatory. Many states already have such laws, so it's time Oklahoma caught up. If these bills and others like them become law, Oklahoma can provide accountability to tax-payers and students alike.
These bills will be vigorously opposed by Epic and other private management organizations for obvious reasons. When millions of taxpayer dollars are at stake for private entrepreneurs, they consider it serious business. Epic chiefs, as well as other virtual providers believe they've covered all bases, however, as they've invested heavily for prevention of accountability bills. ( See
Buying Influence).
To be continued...
Among the bills filed by Senator Sharp are:
SB 52 would prohibit public schools, charter schools and virtual charter schools from spending state-appropriated funds (public taxpayer dollars) on private extracurricular lessons, such as gymnastics or music lessons. Also prohibited, may be spending public tax dollars for private "educational" field trips.
SB 53 would prohibit a dependent school district (K-8th) from converting all or any part of the district into a conversion school allowing it to act like a (virtual) charter school. It also prohibits any conversion school from contracting with a (private) management organization. This bill will prevent any pyramid/ponzi schemes from being developed in Oklahoma public schools.
SB 54 would establish a new funding process for virtual charter schools based on course completion/progress... Monthly state aid payments would only be provided if a student makes a D or better in a course. Wow! this is an "epic" bill! With 10% or so of passing test scores, virtual providers will soon be out of business - and with around a 35% graduation rate, most virtual pyramid schemers will be reduced to millionaires... from their billionaire status. This could be the one bill that will break the epic piggy bank.
SB 56 would require virtual charter schools to submit attendance records of enrolled students to the student's resident district. Traditional public schools are required by law to comply with compulsory student attendance. Since virtual charter schools are public schools, and virtual charter schools exist within traditional public school districts - this bill will ensure compliance with compulsory attendance. It will also ensure that virtual charter schools are not receiving state appropriations for students not attending.
SB 57 would prohibit public schools, charter schools and virtual charter schools from providing bonuses for the recruitment of students or teachers. On Epic Virtual Charter School's website it provides information... that enrolled students may receive more money deposited in their "education checking account" for referring traditional public school students to Epic. It is also a fact that teachers receive bonuses for recruiting and retaining students for Epic. This philosophy of "recruitment for pay" is the foundation of a ponzi or pyramid business scheme.
*SB 60 would require superintendent salaries and fringe benefits to be paid with only district (ad valorem dollars and dedicated local funds. (Epic virtual charter school administrators can relax, as Epic is currently exempt in reporting its superintendent's salary!) The bill would stop any state appropriated dollars from being used for the (superintendent) salaries in order for them (state appropriated funds) to be diverted to the classroom... Currently the legislature does not set or control administrative salaries and SB 60 would ensure that local districts would not only control the decision but the funds that pay for superintendent salaries. The bill would also prevent state control of administrative spending and place more of it at the local level. It would become very difficult to justify "forced" state school consolidation if administrative function costs were only incurred locally.
SB 879 would amend 70 O.S. 2011, Section 3-132 by removing language allowing the State Board of Education to sponsor a charter school under certain circumstances. It would prohibit the State Board of Education from sponsoring certain charter schools after a certain date. This bill would effectively place the authority for sponsoring charter schools in the hands of local boards of education.
The accountability provided by these bills are for traditional public schools, brick and mortar charters and virtual charters, and are non-discimminatory. Many states already have such laws, so it's time Oklahoma caught up. If these bills and others like them become law, Oklahoma can provide accountability to tax-payers and students alike.
These bills will be vigorously opposed by Epic and other private management organizations for obvious reasons. When millions of taxpayer dollars are at stake for private entrepreneurs, they consider it serious business. Epic chiefs, as well as other virtual providers believe they've covered all bases, however, as they've invested heavily for prevention of accountability bills. ( See
Buying Influence).
To be continued...
Tuesday, December 11, 2018
Senate Bill 879
State Senator Ron Sharp (R) of Shawnee is sponsoring Senate Bill 879, which will allow the rural traditional school district adversely affected by the creation of a charter school within its district boundaries... to have the final decision as to the creation of the charter school.
Senator Sharp relates that "Oklahoma's Charter School's Act of 1999 was amended in 2015, allowing charter school districts to expand beyond the Oklahoma City and Tulsa school districts into rural areas. However, embedded within the 2015 amendment was a loophole that allows an appeal to the unelected State Board of Education to approve a charter school district after it has been twice rejected by the locally elected board." Sharp goes on to explain the public school funding formula and specifically how the State Board creation of rural charter schools adversely affects the local funding for rural traditional schools. The State Board of Education has over-ruled local boards on several occasions (with State Superintendent Joy Hofmeister also voting to approve appeals) and created rural charter schools. As an example of how State approval of rural charter schools affect Oklahoma tax-payers, Senator Sharp quotes factually that "In 2016, traditional public schools received $1,560 in per-pupil state appropriation as compared with $3,034 to a charter district... The rural districts that are the poorest and most dependent on state appropriation are the biggest losers when new charter districts are created."
"The start-up of any new charter district must be sustained by Oklahoma taxpayers in per-pupil funding. The Legislature has been guilty of creating numerous programs without operational funding. If there is over-whelming support for new charter school districts in rural Oklahoma, as a recent Oklahoman editorial suggested, then a 75% supermajority tax increase for their financial funding should be a plausible threshold."
Senate Bill 879 removes language from the charter school law which allows the State Board of Education (and State Superintendent) to sponsor a charter school. It also prohibits the State Board and State Superintendent from sponsoring certain charter schools after certain date; requires certain notification; directs certain charter school applicants to enter into certain contract by certain date; provides for dissolution of certain charter schools after certain date; and removes language regarding the location of certain charter school sponsored by the State Board and State Superintendent...
We believe that SB 879 will help curb big-spending lawmakers' ability to create more and more public charter schools, so that Oklahoma tax-payers are protected from tax increases. The big money, however, is on the side of charter schools, as one may notice in Epic Influence.
Senator Sharp relates that "Oklahoma's Charter School's Act of 1999 was amended in 2015, allowing charter school districts to expand beyond the Oklahoma City and Tulsa school districts into rural areas. However, embedded within the 2015 amendment was a loophole that allows an appeal to the unelected State Board of Education to approve a charter school district after it has been twice rejected by the locally elected board." Sharp goes on to explain the public school funding formula and specifically how the State Board creation of rural charter schools adversely affects the local funding for rural traditional schools. The State Board of Education has over-ruled local boards on several occasions (with State Superintendent Joy Hofmeister also voting to approve appeals) and created rural charter schools. As an example of how State approval of rural charter schools affect Oklahoma tax-payers, Senator Sharp quotes factually that "In 2016, traditional public schools received $1,560 in per-pupil state appropriation as compared with $3,034 to a charter district... The rural districts that are the poorest and most dependent on state appropriation are the biggest losers when new charter districts are created."
"The start-up of any new charter district must be sustained by Oklahoma taxpayers in per-pupil funding. The Legislature has been guilty of creating numerous programs without operational funding. If there is over-whelming support for new charter school districts in rural Oklahoma, as a recent Oklahoman editorial suggested, then a 75% supermajority tax increase for their financial funding should be a plausible threshold."
Senate Bill 879 removes language from the charter school law which allows the State Board of Education (and State Superintendent) to sponsor a charter school. It also prohibits the State Board and State Superintendent from sponsoring certain charter schools after certain date; requires certain notification; directs certain charter school applicants to enter into certain contract by certain date; provides for dissolution of certain charter schools after certain date; and removes language regarding the location of certain charter school sponsored by the State Board and State Superintendent...
We believe that SB 879 will help curb big-spending lawmakers' ability to create more and more public charter schools, so that Oklahoma tax-payers are protected from tax increases. The big money, however, is on the side of charter schools, as one may notice in Epic Influence.
Monday, December 10, 2018
Following Epic Money...
This post is a continuation of the Financial Issues section in Epic Questions... As we try to "follow the money" in Epic OCAS reports from 2014 through 2018, it becomes increasingly difficult - as those responsible for reporting.. change expenditure codes each year. For example, 2014-2015 Epic expenditures show that General Administration Function 2319 (Other Board of Education Services), Object 320 (Professional-Education Services) spent $2,243,165.29.. In other words, these tax dollars were spent for general administrative purposes. During the same 2014-2015 school year, Epic reported spending $3,379,498.14 for Function 1000 Instruction, Object 320 (Professional-Education Services).
In 2015-2016, Epic reported $0 spent for Function 2319, Object 320... but $5,958,268.58 spent for Function 1000, Object 320. For easy comparison, the data in a table:
2014-2015 2015-2016 2016-2017
Admin. Ob. 320 - $2,243,165.29 $ 0 $ 0
Instruct. Ob. 320 - $3,379,498.14 $5,958,268.58 $8,903,954.17
In comparing expenditures from 2014-2015 with expenditures from 2015-2016, it appears as if the Object 320 for Administrative functions in '14-'15 was added to the Instruction function in '14 -'15 to arrive at the total for Instruction in '15 - '16 ($2,243,165 + $3,379,498 = $5,622,663 is surprisingly close to $5,958,269). One obvious answer to the questionable reporting discrepancy from 2014-2015 to 2015-2016... is that Epic administrators suddenly became teachers. Or... it's a transparent attempt to disguise administrative costs as instructional. Another question arises from "following the tax dollars", though, which is much more important: Did Epic officials spend funds intended for student Instruction for buying influence?
Another example of misspending of taxpayer dollars is the fact that, once enrolled, an Epic student may receive up to $1,000 for "education" related items and experiences. A student may also have additional money deposited in his or her "education checking account" for recruiting new students. Education supplies include textbooks, computers, electronic tablets, printers, multi-media materials, etc.. Education experiences include private sports lessons and "educational" field trips... Any student must justify the education expenditure to the "Chiefs" by providing reason that the item or experience is related to his or her "education". In other words, if private golf lessons at the local country club can be justified as appropriately education related, then a student may write a taxpayer check for them. If a student can justify a "Cancun vacation" as an education related field trip, then he or she may write a taxpayer check for it. If the parent of a student can justify a $1,000 donation to his or her favorite Epic elected official as "education" related, then the parent may write a "taxpayer" check for it...
Updated Dec. 11, 2018: In an effort to curb what many believe is "misappropriation" of tax dollars - Senator Ron Sharp (R) of Shawnee has sponsored Senate Bill 20, which will require the "statewide virtual charter school board to create and administer an inventory system for all educational supplies paid for by state-appropriated funds". In other words, each student receiving state appropriated funds for appropriate education supplies, must return the supplies to the state upon graduation or leaving. If the items are not returned to the state, the parent shall be responsible for the cost of the "items". Many Oklahoma citizens believe that since public tax dollars are being used to pay for personal education supplies and items (the textbooks, computers, etc...) should be inventoried, just as they are in traditional public schools. The only question is How will those golf lessons or Cancun vacation be inventoried?
Senate Bill 879 continued on the next page...
In 2015-2016, Epic reported $0 spent for Function 2319, Object 320... but $5,958,268.58 spent for Function 1000, Object 320. For easy comparison, the data in a table:
2014-2015 2015-2016 2016-2017
Admin. Ob. 320 - $2,243,165.29 $ 0 $ 0
Instruct. Ob. 320 - $3,379,498.14 $5,958,268.58 $8,903,954.17
In comparing expenditures from 2014-2015 with expenditures from 2015-2016, it appears as if the Object 320 for Administrative functions in '14-'15 was added to the Instruction function in '14 -'15 to arrive at the total for Instruction in '15 - '16 ($2,243,165 + $3,379,498 = $5,622,663 is surprisingly close to $5,958,269). One obvious answer to the questionable reporting discrepancy from 2014-2015 to 2015-2016... is that Epic administrators suddenly became teachers. Or... it's a transparent attempt to disguise administrative costs as instructional. Another question arises from "following the tax dollars", though, which is much more important: Did Epic officials spend funds intended for student Instruction for buying influence?
Another example of misspending of taxpayer dollars is the fact that, once enrolled, an Epic student may receive up to $1,000 for "education" related items and experiences. A student may also have additional money deposited in his or her "education checking account" for recruiting new students. Education supplies include textbooks, computers, electronic tablets, printers, multi-media materials, etc.. Education experiences include private sports lessons and "educational" field trips... Any student must justify the education expenditure to the "Chiefs" by providing reason that the item or experience is related to his or her "education". In other words, if private golf lessons at the local country club can be justified as appropriately education related, then a student may write a taxpayer check for them. If a student can justify a "Cancun vacation" as an education related field trip, then he or she may write a taxpayer check for it. If the parent of a student can justify a $1,000 donation to his or her favorite Epic elected official as "education" related, then the parent may write a "taxpayer" check for it...
Updated Dec. 11, 2018: In an effort to curb what many believe is "misappropriation" of tax dollars - Senator Ron Sharp (R) of Shawnee has sponsored Senate Bill 20, which will require the "statewide virtual charter school board to create and administer an inventory system for all educational supplies paid for by state-appropriated funds". In other words, each student receiving state appropriated funds for appropriate education supplies, must return the supplies to the state upon graduation or leaving. If the items are not returned to the state, the parent shall be responsible for the cost of the "items". Many Oklahoma citizens believe that since public tax dollars are being used to pay for personal education supplies and items (the textbooks, computers, etc...) should be inventoried, just as they are in traditional public schools. The only question is How will those golf lessons or Cancun vacation be inventoried?
Senate Bill 879 continued on the next page...
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