Show Me The (Charter Management Fee) Money!
Robert Cotto Jr. is one of Connecticut’s leading educate advocates, an elected member of the Hartford Board of Education and part of the Educational Studies program at Trinity College.
In his recent CT Newsjunkie commentary piece entitled, Show Me The (Charter Management Fee) Money! Cotto lays bare the truth about the charter school industry is taking Connecticut’s taxpayers for a ride while diverting scarce public funds from Connecticut’s real public education system.
Robert Cotto writes;
When traditional schools pay their bills to educate kids, they usually don’t have much money, if any, remaining. When charter schools pay their bills, they often have money left over to spend. How much? It depends on the school. For a number of charter schools, roughly 10 percent of all of public dollars meant for educating children in these schools go to pay fees for private companies called “charter management organizations.” That’s a problem.
Connecticut law states that a charter management organization (CMO), “means any entity that a charter school contracts with for educational design, implementation or whole school management services.” These CMOs claim that they are private corporations, not public agencies. Organizations that claim to be CMOs in Connecticut include Achievement First; Capital Preparatory Schools; DOMUS, and Jumoke/FUSE, which is now defunct. It’s often hard to tell the difference between the CMO and the charter schools they manage.
Roughly 10 percent of a charter school’s budget can go toward management fees. For example, the New Haven-based CMO called Achievement First charged Achievement First-Hartford Charter School a $1.14 million management fee in 2013-14. The state provided Achievement First-Hartford charter schools more than $11 million to operate. So about 10 percent of that state funding went to Achievement First the CMO, not the charter school in Hartford, which ended the year with a surplus.
For every $100 dollars the public spends on this charter school, the CMO called Achievement First gets $10 off the top.
Multiply this fee by the four Achievement First charter schools in Connecticut, and Achievement First Inc., the CMO, walks away with about $4.45 million in fees.
Instead of operating schools as public responsibilities, CMOs operate charter schools as moneymaking arrangements, almost like fast-food franchises. Companies like Subway Inc. charge local franchises a fee for services ranging from start-up, food supplies, to signage. This is how Subway makes a profit.
The CMOs could be spending this money on millions of dollars in No. 2 pencils, helping to buy foot-long Subway sandwiches at lobbying events, or paying for student field trips to rally for more charter school money. It’s just unclear.
To fully appreciate how Connecticut’s taxpayers are being ripped off by charter school companies, read Robert Cotto’s entire article at: