Defunct Cleveland charter school faces $9.4 million suit from Ohio attorney general

Attorney General Mike DeWine's office is suing to recover almost $2.6 million found to be illegally transferred from the now-defunct Lion of Judah Academy to people and businesses associated with running the Cleveland charter school.

The lawsuit, filed Monday against 19 individuals and businesses affiliated with the East Side charter school, also seeks more than $6.8 million in damages under the state's organized crime law.

Academy officials diverted nearly a third of the school's resources to other companies they controlled and also received bonuses and other financial perks, according to the lawsuit. Lion of Judah took in nearly $8.2 million in public funds between 2007 and 2013, when the academy was shut down, the lawsuit stated.

Meanwhile, the school itself continually languished in academic emergency - the institutional equivalent of an "F" - and legitimate debts were ignored, according to DeWine's lawsuit.

(Read more at Dispatch.com)

ODE Backs off Testing Threats

After increasing pressure from parents threatening to opt-out of PARCC testing, the Ohio Department of Education has backed off it's threat to withhold funding for any student who doesn't participate in Ohio's new testing regime.

The state Superitendent, Dick Ross issued this statement to Local School Districts

Colleagues:

Recently, many school districts have contacted the Ohio Department of Education asking if they will experience financial consequences for students who do not participate in Ohio's New State Tests.

State law forbids the Ohio Department of Education from funding a student who does not take a state test in the prior school year. However, Ohio law also allows the state superintendent to issue a waiver that permits the department of education to fund that student the following school year. Under that authority, the department has, in the past, automatically funded these students for many years. We plan on continuing the same practice this year. This means that we will continue to fund each student in your district, regardless of their participation.

I would also like to share that the Senate Education Committee approved an amendment to House Bill 7 last Wednesday that would prohibit the department from withholding state funds for students who do not participate in state tests during the 2014-1015 school year. While this is not yet law, it is evidence that the legislature is responding to this challenging issue.

Additionally, the federal No Child Left Behind Act also requires districts and schools to administer state tests to all students in certain grades and subjects. Federal law says that if fewer than 95 percent of students at a school or district take the tests, there could be financial consequences. This also is true if fewer than 95 percent of a subgroup of students, like students in poverty, take the tests. These consequences vary from school to school based on any grants a school receives and how well it performs otherwise. While schools or districts may not lose federal funding, some could see restrictions placed on their federal funds.

I know you understand the importance testing plays in an effective education system. Testing shows evidence of student progress. It provides much needed information to classroom teachers and others so they can monitor and improve student learning. Results of these assessments provide teachers perspective on what their students were able to retain and apply long term, allowing for reflection and correction in future school years. Especially at a time when we must prepare our students for the high-skill demands of today's workforce, we need testing--and test results--to tell us how to best help our students succeed. I hope you will explain this critical relationship between testing and teaching to the parents of your communities and encourage them, as much as you are able, to allow their students to take Ohio's New State Tests.

Sincerely,

Richard A. Ross

Superintendent of Public Instruction

Ohio won't penalize districts for kids who opt out of state tests

The state won't penalize school districts if large numbers of students skip this year's state test, state Superintendent Richard Ross announced today.

An ever-growing number of parents are pulling their kids out of new state tests this year, as the state dramatically increases testing time and changes test providers. This year Ohio is seeing its first state tests using the new multi-state Common Core learning standards.

An exact number of students is not yet available, according to the Ohio Department of Education.

Ross' announcement comes as states across the country sort out how to handle schools where students and parents refuse to take the test. Just last week, Chris Minnich, the head of the national council of state superintendents urged parents to participate.

(Read more at Cleveland.com)

Ohio charter schools identified as among worst in nation

During a day of panel discussions with education reporters and experts at the University of Colorado Boulder, national and local school choice supporters had plenty to say about Ohio.

None of it, however, was good.

The Buckeye State took center stage Friday in Denver as school-choice supporters and critics debated what seems to be working in the nation’s charter schools, and what isn’t.

The event was hosted by the Education Writers Association with funding from the Walton Family Foundation, a staunch proponent of private and charter schools.

While panelists disagreed on how much regulation should be applied to charter schools, which are exempt from some states’ requirements, there was little debate about where some of the lowest performing charter school companies operate.

“Mike [Petrilli] could probably go down a list of Ohio operators that fall into this category,” said panelist Todd Ziebarth, senior vice president for state advocacy and support for the National Alliance for Public Charter Schools. Ziebarth and Petrilli, president of the national Thomas B. Fordham Institute, support charter schools, which are publicly funded but, especially in Ohio, can be operated by private, for-profit companies.

Among the lowest performing charter school operators continually identified by Ziebarth, Petrilli and other panelists were: K12 Inc., a national company that operates Ohio Virtual Academy and Insight of Ohio; the Electronic Classroom of Tomorrow, an Ohio online charter school owned by political contributor Bill Lager; and White Hat Management, an Akron-based company founded by local industrialist David Brennan, who pioneered Ohio’s charter school movement. Two of the operators run only cyber, or online, schools in Ohio, which has the third-highest enrollment of online charter school students in the nation, said panelist John Watson, who runs a K-12 educational technology consulting firm.

(Read more at The ABJ)

Executive Budget Analysis for K-12

Here’s an analysis by OEA, of Governor Kasich’s Executive Budget detailing his plans for the state budget for Fiscal Years (FY) 2016 and 2017.

The governor claims that his budget proposal would provide an additional $700 million in state foundation support to schools. However, the approximate $235 million cut in the tangible personal property tax reimbursements to school districts would result in a significantly lower amount. Changes to the school funding formula and tangible personal property tax replacement reductions will result in 323 school districts receiving less money in FY 2016 than they received in FY 2015. Calculations also indicate that approximately 287 districts will receive reductions in FY 2017 over FY 2016 levels. District numbers provided below come from state officials in various offices.

School Funding

• Increases the per-pupil funding amount from $5,800 in FY 2015 to $5,900 in FY 2016 and $6,000 in FY 2017
• Retains the school funding structure enacted two years ago and provides for a 2% annual increase for the special education component; 4% annual increase for careertechnical education aid; annual 5% increase for K-3 literacy component
• Sets a 10% gain cap on annual growth in formula aid in each year of the biennium
• 236 school districts are on the 10.5% gain cap this year (FY 2015)
• 204 school districts will receive a cap on increases in FY 2016
• The administration’s intent is to eliminate the cap on funding by FY 2019
• Modifies the income adjustment portion of the formula and claims that this adjustment will target state aid to districts with a lower capacity to generate local revenue
• 321 districts would receive no income adjustment
• 176 districts would receive increases in the amount of aid beginning in FY 2016
• 114 districts with higher income would result in a greater share of funding delivered by local contributions and phased in over a five-year period
• Reduces guaranteed funding for school districts by up to one percent of the district’s combined state and local resources from the prior fiscal year
• 278 districts would see reductions in FY 2016
• Reduces payments to school districts from the replacement payments from the elimination of the Tangible Personal Property Tax and Kilowatt Hour Tax by between 1% 2 and 2% of total district funds. The reduction percentage is based upon the property wealth of the school district.
• 260 districts currently receive reimbursements, 352 districts receive no reimbursements
• 203 school districts would receive reimbursements in FY 2016
• 136 school districts would receive reimbursements in FY 2017

Testing

• Limits time spent on standardized tests to no more than 2 percent of the school year and time spent on practice tests to no more than 1 percent
• Allows local districts to decide on non-reading diagnostic tests in grades 1-3
• Eliminates the fall Third Grade Reading Test and requires that the test be taken in the spring and, if needed, in the summer while retaining alternative assessment
• Eliminates the use of student learning objectives for teachers teaching in non-core subjects areas in grades 4-12

Charter Schools

• Increases the per-pupil funding amount from $5,800 in FY 2015 to $5,900 in FY 2016 and $6,000 in FY 2017
• Increases the per-pupil school facilities amount from $100 to $200 per student
• Establishes a $25 million fund for construction and renovation projects for charter schools with the highest rated (“exemplary”) sponsors
• Allows charter schools sponsored by the highest rated sponsors to receive local tax dollars if approved by local school boards and voters
• Prohibits the second-lowest level (“ineffective”) sponsors of charter schools from sponsoring new schools and places them on a one-year improvement plan
• Sponsors rated at the lowest level (“poor”) would lose their charter schools which would be reassigned to higher performing sponsors and these sponsors would be banned from sponsoring new schools

Vouchers

• Appropriates $23.5 million in FY 2016 and $31.5 million in FY 2017 for the income-based EdChoice Voucher and expands the program to students in second and third grade whose household income is at or below 200% of the federal poverty level ($47,700 for a family of 4)
• Increases the EdChoice Voucher amount for students in grades 9-12 from $5,000 to $5,7003

Early Childhood Education

• Provides an increase of $40 million over the biennium to an additional 6,125 economically disadvantaged children to attend preschool
• Allocates $14 million over the biennium to cover childcare copays for families making less than 100 percent of the poverty level
• Appropriates $10 million over the biennium to expand access to early childhood mental health counselors for children, teachers and staff

Other

• Allows the highest rated teachers to skip additional coursework requirements and take a year off from annual evaluation requirements
• Exempts districts rated “exceptional” in reading proficiency, student growth and graduation rates from state rules on class size and “other rules” not identified
• Allows local school districts to exempt third-year teachers from state-level evaluations since Ohio’s four-year licensure program for new teachers includes the Resident Educator Summative Assessment
• Creates standards for school counselors and provides for $2 million over the biennium to improve access to school counseling services
• Provides for $200 million over the biennium for two rounds of grants through the Straight A Fund in order to assist schools in projects that increase student achievement and increase student efficiency o Earmarks $18.5 million to train more high school teachers to teach college-level courses and encourage student participation in College Credit Plus
• Increases funding for the Ohio Community Connectors program by $30 million over the biennium

Taxation Tax Increases (which would generate a $5.17 billion increase in revenue over the biennium)

• Increases the state sales tax from 5.75% to 6.25%
• Broadens the sales tax base to include cable TV, parking, travel packages and tours, debt collection services, lobbying services, public relations, management consulting and research/opinion polling
• Raises the cigarette tax from $1.25 to $2.25 per pack
• Raises the tax on other tobacco products to a level equivalent to the cigarette tax
• Adjusts the rate of the Commercial Activities Tax (CAT) on business from 0.26 to 0.32 percent
• Raises the severance tax on oil and gas, generating an estimated $325 million in revenue
• Eliminates a number of tax deductions and credits for Ohioans making more than $100,000 in annual income including the retirement income credit, Social Security deduction, $50 senior credit and the lump sum senior credit Tax Decreases (equals a $5.69 billion reduction in revenue over the biennium)
• Implements a 23% personal income tax reduction across all income brackets over two years
• Eliminates the income tax for Ohio businesses with annual gross receipts of $2 million or less
• Maintains Ohio’s 50% tax deduction on the owner’s first $250,000 of net business income for businesses with annual gross receipts of $2 million or more
• Increases the personal exemption amount for Ohioans who earn $80,000 or less

Turnover common at e-schools

Ohio’s largest online charter school averaged 14,600 students last school year, but almost 23,000 students were enrolled over the course of the year.

Thousands of those students enrolled for just a few weeks or months in the Electronic Classroom of Tomorrow.

The large-scale turnover isn’t unique to ECOT: With the exception of schools designed for dropouts, no schools churn through students like Ohio’s online charters. At many of Ohio’s charter e-schools, more than 40 percent of students leave before they’ve completed a full academic year.

Churn, or student mobility, has long been “generally considered a negative thing” facing education, said Aaron Churchill, research director for the Thomas B. Fordham Institute in Columbus. It can disrupt students’ learning routines and is generally associated with low achievement, he said.

(Read more at the Dispatch)