Alleged DC Charter School Scam: Who Says There's No Money in Education?

The mantra about how "there's no money in education" keeps encountering inconvenient details which question the chant's veracity. Elements of the for-profit world, which has eyed the taxpayer funded education funding as so many chickens to be plucked, has entered the K-12 school arena. Its alliances with politicians, "committed" millionaires, and dim media reporting (The Today Show, come on down) offer formidable clout, especially against a fragmented collection of interested parties, such as local interest groups like the characteristic school district PTO.

According to a report in The Washington Post, attorneys for the District of Columbia Office of the Attorney General have filed new allegations against a local charter school enterprise. The filing claims corporate officers of Options Charter Public School (OCPS) "diverted more than $3 million from the Northeast Washington school for at-risk teens to companies they founded." The brief noted a parade of self-dealing including a school bus "ridership bonus" of $100,000.

J.C. Hayward
(Image: wusa9.com)

The accused apparently owned a firm called Exceptional Education Services (EES), which effectively served as a shell company designed as a collection device for skimmed funds. One key player in the OCPS/EES scheme was J.C. Hayward, a very visible DC television personality who happened to be board chair and part-owner of EES. The TV talking head's attorney has claimed his client had no knowledge of any illegal activity. That's a curious claim for someone deeply connected to DC's power structure and is presumably worldly wise.

LAUSD students using iPads
(Image: ktla.com)

The larger issue in this story goes beyond a cautionary tale of local corruption. The K-12 education "reformers" have made a case that strong CEO-style business management and teacher "accountability" would lead to improved K-12 education. All of this would be accomplished through increased online content, data-driven teaching and supervision, and relentless testing. The goal of redirecting the flow of public funds to private gain goes unstated. Meanwhile, the imperative to make technology and its products a key educational tool has gone forward without any serious vetting.The stampede into gadget purchases has led to some troubling situations, such as the Los Angeles Unified School District (LAUSD) purchasing hundreds of thousands of iPads at consumer market rates. At the same time, LAUSD did not buy keyboards for the devices. Oops...that would be "an extra expense," which the school district had to add on after the fact. Software? Well, various programs were sold as a three-year lease, after which LAUSD would have nothing to show for its rental costs.


Where was the strong CEO management in the LA and DC episodes? How did these initiatives advance the cause of K-12 education "reform"? Where was the senior management accountability? Where was the "community input" reformers are so keen to advance as one of their positive developments?

Image: mainepressherald.com

Bottom line: who says there is no money in K-12 education? The record suggests there's plenty of gold in the K-12 hills, and it's being mined now. The fact that the gold is taxpayer money, largely committed without genuine transparency or community participation is kept largely quiet. (Cory Booker and Facebook boss Mark Zuckerberg's money to the Newark, New Jersey schools comes to mind as Exhibit A. It took a Freedom of Information Act request to obtain any useful information about this situation.) The understanding of the profit motive in the K-12 world could illuminate inconvenient details, the knowledge of which would interfere with profitable revenue streams that could continue for a generation. Now, who would want that situation brought to light?