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Charter applicants could offer test of new for-profit operator ban

Four prospective charter schools could force the state to define precisely how involved for-profit companies can be in the operations of charter schools.

When the legislature lifted the cap on charter schools in May, it also banned for-profit companies from managing or operating charters. But four of the schools applying to open next year are partnering with Arrow Academy, a Texas-based for-profit management organization.

Arrow’s ability to open the schools will come down to how close a for-profit company can work with a school before the state considers it to be managed by them.

The four are applying for charters from the state Board of Regents, and their applications are also currently being vetted by the city Department of Education. A city spokesman said today that Arrow’s relationship with the school would be like any other charter or district school that contracts with a for-profit company to provide school services.

Arrow Academy had originally intended to apply to manage the schools itself, the company’s head, Jim Christensen, said today. But when the law changed, the company altered its application so that instead, it will contract with the school’s board to provide curriculum and teacher training.

The four schools — two in Brooklyn, one in Manhattan and one in the Bronx — are still in the process of applying for their charters and it’s not guaranteed they will be approved. But if they are, they could signal one way that for-profit management companies could remain for-profit and continue to work with New York charter schools.

For a consulting fee, Arrow Academy will contract with the four schools’ boards, which will be comprised mainly of people affiliated with local community groups. The schools won’t need to find public space, as community organizations have already volunteered to house them.

In the city charter office’s executive summary of the applications, Arrow’s role is described in broad terms: the schools will partner with Arrow, the summaries say, “for education and operational services under the [schools'] chartering board.”

Christensen described a more limited potential role, with Arrow involved mainly in how students are taught.  ”We would like to be involved with the decisions that have to do with student development,” Christensen said. “That’s Arrow’s interest.”

Arrow also plans to advise the boards of the prospective charters against spending more than 15 percent of their per-pupil funding on any single contractor, including itself, Christensen said.

“It’s a unique model that we think we can incorporate with the new law,” he said.

Arrow is a new company, formed in October 2009 by Christensen in partnership with Flip Flippen, the head of the teacher professional development and business coaching company Flippen Group.

The company’s model is to establish “learning centers,” which Christensen described as analogous to New York City’s small schools, located in community centers or other facilities run by non-profit organizations. (That includes church space, though none of the charters the group is working with in New York would be located at a church.)

Flippen was contacted by Chancellor Joel Klein, Christensen said, after Klein noticed that Flippen’s professional development was used in a number of schools that had shown rapid improvement on their report card grades. That connection was part of the reason why the company chose the city, along with its home base of Texas, as one of the first locations to open new schools.

  • Green Hornet

    This is why the Mayor has a lawyer as a Chancellor to get around legislative intent. Lets hope the State Legislature stops this skulduggery.

  • http://www.nycharterparents.org Mona Davids (NY Charter Parents Association)

    Well, this explains a lot.

    The ban of for-profit companies operating or managing charters in NY is another reform that NYCPA advocated and won.  The law is clear on this.  In the beginning, right at the top of the revised law, 

    Section 1, Subsection 1 — THE VERY TOP!!! the law states:

       10  HOWEVER, FOR-PROFIT BUSINESS OR CORPORATE ENTITIES SHALL NOT BE ELIGIBLE   11  TO  SUBMIT  AN  APPLICATION  TO  ESTABLISH  A CHARTER SCHOOL PURSUANT TO   12  SUBDIVISION NINE-A OF SECTION TWENTY-EIGHT  HUNDRED  FIFTY-TWO  OF  THIS   13  ARTICLE,  OR  OPERATE  OR  MANAGE  A CHARTER SCHOOL FOR A CHARTER ISSUED   14  PURSUANT TO SUBDIVISION NINE-A OF SECTION TWENTY-EIGHT HUNDRED FIFTY-TWO   15  OF THIS ARTICLE.

    I was trying to figure out why charter applicants with for-profit companies on their application would submit their charter applications to the Chancellor because HE IS NO LONGER AN AUTHORIZER then when the DoE finally advised the charter applicants that the Chancellor IS NO LONGER AN AUTHORIZER AND TO APPLY DIRECTLY WITH SED, less than a week before the applications were due; I thought hmmm those charter applicants now will apply to SUNY CSI instead because SUNY CSI has 12 charters left under the old cap which allows for-profit companies.

    Well, now reading that it was the Chancellor, who is NO LONGER AN AUTHORIZER, that brought Arrow Academy (for-profit, less than 1 year old) company to NYC to make money in the charter management business.  I should have known better it’s not just that but he’s going to use them to challenge the new law that bans for-profit companies.

    Well, for those charter applicants dumb enough to be used as puppets by the Chancellor and not smart enough to simply apply for one of SUNY CSI’s twelve left over charters – Here’s your notice from NYCPA.

    Please be advised that this is our Notice of Intent to sue if you are granted a charter in violation of the revised law we won.  Your blatant disregard of the law to make and take money from our children will not be allowed without a fight in court.

  • I noticed that…

    Mona, I applaud your chutzpah! Give those profiteers hell. Do not allow them to exploit our children.

  • http://www.classsizematters.org Leonie Haimson

    Another day, another law that Joel Klein is trying to evade; what else is new?

  • Mustafa

    Yay, Mona!

  • Samuel Sitwill

    Notice of Intent to sue? Maybe it would be better to finally put up a board of directors page on NYCPA’s slick, corporate website. And discuss the funding sources for the group, and talk about Carl Icahn’s role. 

    So for some history:

    http://ednotesonline.blogspot.com/2009/10/ps-15-teacher-calls-on-moaning-mona.html

    Lastly, feast your eyes on this little bit of demagoguery where Davids plays the race card, making sure the audience knows that when teachers at PS 15 in Red Hook go home they don’t “go across the street to Red Hook projects.”

    http://www.youtube.com/watch?v=I1R_b4VOnI4

    Yay Mona indeed.

  • Kristine

    This organization’s intent seems to be just like any other service provider that are everywhere in education. They are targeting student development, as it appears in the article, as the primary role they seek to participate. We see vendors in textbooks, teacher training, supplies, facility rentals, transportation, food service, technology and massive numbers of vendors in a typical school system. If a company can provide a service to a school that is an added value to the school and not violating a competitive market value, I am not sure why this is not good for our education system. It seems to be pervasive internally to date. The notion of “profiting” has been witnessed by bloating government to an all time high. Every employee of any school system is “profiting” for a service they provide on the taxpayers’ backs for an education service-teaching, driving,leading, cleaning, supporting… The key question to answer is more around does the service, internaly or externally, meet the desired objective for a fair price when using our taxpayers’ funds.

  • http://www.classsizematters.org Leonie Haimson

    Kristine: this is an obvious ruse to get around the law banning for-profit operations from managing charter schools. Don’t you think that it might be a good idea for DOE and the charter school industry to respect the law for a change, rather than defy it?

  • Kristine

    Leonie,
    I guess I do not see the validation of your comment from the article. The new law clearly states that a company may not “manage or operate” a charter school. The fact that companies may want to still be engaged in charter school services, just like they are involved in all schools, in providing educational services such as training, curriculum, PLC work… is not a violation of the law. Your assumption seems inaccurate versus what the article seems to say. It seems obvious to me, per the new law, that a school board will do such things as hire the principal and personnel, set policies, define the vision of the school and assume overall governance. But contracting for desired services from legal to accounting to instructional development is not in the least bit a violation of the intent of the law. My understanding is that the new law came in to effect during this charter application process. So any company or organization that desired to work in New York within charter schools would have to change that governance component or discontinue the services that would violate the law in order to meet the new law’s intent. This would be taking the reasonable action, given the timing of the new law and appears to be the purpose of the article in gaging how this may play out over time.

  • Gideon

    Kristine appears correct here. According to Mona Davids quotation of the law, so long as a for-profit company doesn’t operate or manage the charter school it should still be able to provide services to the school. We don’t have a problem with traditional schools paying for-profit companies for services such as curriculum development and teacher training, not to mention textbooks, copy paper, PE equipment, food, etc.

    Ultimately it is the board of trustees that is responsible for the school, so I don’t understand why people are opposed to having the board pay a management company to run its school as long as it gets good results. Also, these for-profit management companies often have the start-up capital to afford a building, so the charter schools they manage don’t have to share space in public school buildings. It seems very short-sighted to have eliminated them from running schools, especially when there’s no evidence that their schools are run any less effectively than other charter schools or district schools.

  • http://www.nycharterparents.org Mona Davids (NY Charter Parents Association)

    @Samuel Sitwell   AKA Charter Lobby Shill

    Thank you for the compliments of NYCPA’s slick corporate website.  A website like that cost thousands of dollars to design and develop.  Uhmm, wonder where we got that money from?

    Well, I, Mona Davids, designed and developed the website.  Imagine that, hey :-)

    I’m sure you and the other charter lobby puppets and shills want to know who’s on our board and who’s funding us.  Don’t you read the posts, we’re funded by parents and we don’t have to tell you who’s on our board.  

    Since NYCPA has done so much in our one year of existence.  Imagine what we’re going to do this year.  We’re only just getting started holding charters accountable.  Public Funding = Public Accountability and Transparency.

    Since you’ve referenced past EdNotes postings from last year.  I thought I’d bring you up to date on EdNotes postings from this year AND video from this year.  District and charter parents will no longer fall for the divide and conquer tactics that people like you have used to keep us apart.

    NYCPA stands with district parents because it OUR children in the public school system not yours and the charter lobby shills making money off our kids.

    AND YES, WE WILL SUE IF FOR-PROFIT COMPANIES ARE APPROVED BY THE REGENTS.

    Here’s more EdNotes for you from the hearing that NYCPA asked for which includes district and charter parents testifying.

    http://ednotesonline.blogspot.com/2010/04/bill-perkins-charter-school-hearing_26.html

  • Dan

    Wow! Samuel, That was an interesting “Mona Moment” on YouTube. Thanks for sharing. When I read Mona’s comments I became puzzled in her thinking process. She advocates for charters, which were founded in the 1990′s on the premise of less regulation, choice, more autonomy, efficiency of dollars and the mantra “more learning for less expense” with community governance options through parents or citizenry at the school level versus the district level.

    This was a significant change in the state laws of the past in the way education was regulated and we still see groups fretting over it.

    Now she calls people dumb and issues intent to sue threats in another Mona Moment when organizations want to get involved in serving youths’ needs within the law, in the same manner that charters were established by using Per Pupil Revenue because they will or claim they will be able to help improve student learning (not just selling a company widget, mind you) for no more money, and maybe less than we are currently spending.

    I guess anyone can claim to be President of something, but I recommend you know what your something is before you claim to lead it and use name calling and threats on the innovation concepts that helped trailblaze your existence. We can expect more from leaders than this type of behavior.

  • http://www.classsizematters.org Leonie Haimson

    Look guys, stop attacking Mona and focus on the real issue at hand: the state legislature clearly intended to ban for-profit charter companies, whether you like it or not. And these three charter schools, which in their original applications clearly indicated that they were going to be managed by Arrow, a for-profit EMO, now have simply rephrased the relationship, in a transparent attempt to get around the law.

    This is not kosher and I predict if SED makes the mistake to authorize them, it will not stand up in court.

  • times is changing

    i know why you teachers is scarred of chartered schools… its cuz they gonna make you work longer hours, more days, hold you accountability, and they don’t like winny cry babies.

  • Chris

    Mona, how much does the UFT pay you? 

  • http://www.nycharterparents.org Mona Davids (NY Charter Parents Association)

    @Chris

    The UFT doesn’t pay me anything or fund NYCPA.

    Do you think the UFT would be willing to help fund NYCPA?  Are there any other organizations that you think would fund NYCPA and support our efforts?  Please let me know.  Any recommendations for potential funders would be greatly appreciated.  

  • Mustafa

    Very nice (sarcasm).

    Mona expresses a sincere concern about the state ed law and she’s promptly attacked by the anonymous Bloomberg/Klein/Moscowitz/Robertson shills still looking to try to divide and conquer.

    Congrats guys, it didn’t work.

  • Questions for Mona Davis

    @Mona Davids
    Since you are dedicated to transparency in the charter schools movement, please tell us–
    1) Identities of your Board of Trustees. How many are charter school parents? Were they elected? If so, by whom? If not, how were they selected?
    2) Sources of your funding. You claim your funding comes from parents. I’m sure the readers of this blog would be interested in hearing about how your seed money from Carl Ichan and Co. fits in with your newly found populism. Will you disclose the amount? 
    3) What changed between your visit to CEC15, in support of PAVE academy and now? Your defense of the PAVE school leader, scion of the Tiger foundation, is a second link between NYCPA and the hedge fund industry. Were you dropped by them? Does this relate to your recent alignment with the Haimson/UFT crowd? You might have these bloggers convinced, but you don’t have any fans in Red Hook.

  • J. Cavanagh

    I find it quite offensive that ‘Sitwill’ poster is using footage from a PS 15 co-location hearing to try and attack someone who is advocating against what took place at that very meeting. I don’t know Ms. Davids that well, but this is what I do know… she came into our community almost year ago, she said some things she should not have said. Then, five months ago, Ms. Davids again came into our community, and do you know what she did? She apologized to us. Since then, she and her organization has called for a moratorium on school closings and co-locations and has advocated for the kinds of policy reforms and legislation that will help protect both charter and district parents and children. It takes a brave person to admit error and it takes a courageous person to then take one step further and actually do something about it. Move on!

  • Celso Garcia

    Everyone is missing the point the chancellor has been doing what ever he wants for 8 years. He is not going to stop now because he knows the specialty of loopholes and grey areas in the law he is an antitrust lawyer. He will do as he pleases and say challenge me if you have the resources.

  • VEGA

    Mona, Thanks you for the informative posts. Please ignore the blogger who calls him/herself “Times is Changing” This blogger appears to be the new name for Anathema who was banned from this website and has slimed his way back in. The extremely poor grammer, spelling, insults, etc are his trademark. I just don’t dignify his posts with a response and neither should you or anyone else. I know that others are trying to find the identity of this “human”.

  • http://www.nycharterparents.org Mona Davids (NYCPA)

    SED rejected all four for-profit charter apps today. One year old, Arrow Academy, invited to NYC and promoted by Klein to test the revised charter law was rejected.

    The ban on for-profits is in effect!

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