Public School Closures in Oakland: Another Example of Failed School Reform and Charter School Expansion

I am grateful that last Sunday the Washington Post’s Scott Wilson recounted the long, sad story of the school closings in California’s Oakland Unified School District. Oakland has universal school choice, and this fall, students in two of Oakland’s now shuttered public schools had to find new schools elsewhere in the school district—with five additional public schools to be closed at the end of the current school year.  As Wilson explains: “The district has… been whiplashed over the years, by education trends and population changes, leaving many schools under annual threat of school closure.”

We have been watching this story develop for years.  Wilson reports: “By 2003, with the district facing a roughly $35 million budget deficit, the state Department of Education took over the operation of Oakland’s public schools, laying off hundreds of teachers and eventually shuttering more than two dozen schools. The state’s day-to-day management ended six years later, but the education department still has what is effectively veto power over fiscal decisions.  At the time of the takeover, the state extended the district a $100 million line of credit, which has yet to be paid off entirely. The district’s uncertain finances and poor performance also opened the door for experimentation from wealthy, mostly White philanthropists with no ties to Oakland. One initiative was the ‘small schools’ movement, financed in large part by the Bill & Melinda Gates Foundation.  The idea was to break up big campuses into more intimate places for learning. The money—about $25 million before it ran out—helped open about two dozen schools. But the state administrator at the time closed 14 others over several years.”

Wilson continues: “More lasting was the charter school movement. At the time, billionaires Mike Bloomberg and the late Eli Broad spent tens of millions of dollars promoting charter schools nationally, including large sums in Oakland… But in a state that funds districts by student, every pupil who enrolled in a charter school meant money lost to the broader public education system.”

Gentrification is also implicated.  Today’s school closings—two this year and five before school begins next school year are all located in poorer African American neighborhoods. Wilson explains: “Here in Oakland… the school discussion implicates race…. White gentrification hovers over the East Bay…. The traditional dividing line—Interstate 580—splits wealthy Oakland hills from the struggling ‘flatlands’ where Parker and other affected schools are located.”

All of these problems have been visible for years. Jerry Brown was Mayor of Oakland from 1999 to 2007 and he served as Governor of California from 2011 to 2019. Brown remains an unabashed supporter of charter schools. In fact he started two charter schools himself. Here is EdSource‘s Luis Freedberg: “Brown is unique among California’s governors—and probably governors anywhere—in that he is the founder of two charter schools, the Oakland Military Institute and the Oakland School for the Arts.  He told us he has raised ‘millions and millions of dollars’ to start them and keep them going.” EdSource asked Brown if charter schools don’t pose a funding problem for a school district’s public schools. Freedberg recounts Brown’s answer: “Brown opposes that notion, even in places like Los Angeles and Oakland, which in his words have ‘so many charter schools, and they don’t have enough funds.’ He acknowledged that is a ‘troublesome problem.’ Nonetheless, he said, ‘because I think charter schools are challenging, I’ve resisted more onerous rules that quite frankly are designed to reduce charter schools in the guise of making them more accountable.'”

So how much fiscal pressure do charter schools pose for the public school districts where they are located?  In a huge, 2018, study for In the Public Interest, economist Gordon Lafer documents the annual $57.3 million loss of public school funding to the charter schools in the Oakland Unified School District: “(W)ith a combined district and charter student population of over 52,000 in 2016-17—(Oakland) boasts the highest concentration of charter schools in the state, with 30 percent of pupils attending charter schools.” “To the casual observer, it may not be obvious why charter schools should create any net costs at all for their home districts. To grasp why they do, it is necessary to understand the structural differences between the challenge of operating a single school—or even a local chain of schools—and that of a district-wide system operating tens or hundreds of schools and charged with the legal responsibility to serve all students in the community. When a new charter school opens, it typically fills its classrooms by drawing students away from existing schools in the district…  If, for instance, a given school loses five percent of its student body—and that loss is spread across multiple grade levels, the school may be unable to lay off even a single teacher… Plus, the costs of maintaining school buildings cannot be reduced…. Unless the enrollment falloff is so steep as to force school closures, the expense of heating and cooling schools, running cafeterias, maintaining digital and wireless technologies, and paving parking lots—all of this is unchanged by modest declines in enrollment. In addition, both individual schools and school districts bear significant administrative responsibilities that cannot be cut in response to falling enrollment. These include planning bus routes and operating transportation systems; developing and auditing budgets; managing teacher training and employee benefits; applying for grants and certifying compliance with federal and state regulations; and the everyday work of principals, librarians and guidance counselors.” Lafer describes the consequences of marketplace school choice in the Oakland Unified School District: “You have a system where the neediest and most expensive kids to educate are concentrated in traditional public schools.”

California blogger Tom Ultican has documented the investment and influence of wealthy philanthropists promoting the expansion of charter schools in Oakland: “The map of charter schools in Oakland and proposed school closings shows that both are… in the minority dominated flats (the low lying area between the bay and the hills).  With all of these closings, residents in the flats may no longer have a traditional public school serving their community.  Much of this can be laid at the door step of the six billionaire ‘education reformers’ living across the bay—Reed Hastings (Netflix), Arthur Rock (Intel), Carrie Walton Penner (Walmart), Laurene Powell Jobs (Apple), Mark Zuckerberg (Facebook) and Doris Fisher (The Gap).  Reed Hastings established America’s first charter management organization (CMO) in Oakland. There are now six Aspire charter schools serving Oakland families.”  Ultican adds: “Along with these billionaires, New Yorker Michael Bloomberg and Tulsa billionaire Stacey Shusterman have joined in the spending to sway Oakland’s school board elections.”

It is not as though nobody has investigated the impact of widespread public school closings on the neighborhoods where safe and long treasured institutions are shut down.  In Chicago, Rahm Emanuel’s administration closed 50 public schools at the end of the 2013 school year. Chicago’s Renaissance 2010 school reform project had driven a decade-long explosion in the number of charter schools. An important difference, however, is that in Chicago the school district did try to protect the students whose neighborhood public schools were closing by designating specific welcoming schools.  In Oakland, families are left to find their own schools due to universal school choice.

Despite Chicago’s efforts to manage the school closures, however, the University of Chicago’s Consortium on School Research documented extremely negative effects not only for the students whose schools were shuttered but also for students at the so-called “receiving” schools and for the surrounding community across Chicago’s South and West Sides: “When the closures took place at the end of the 2012-13 school year, nearly 12,000 students were attending the 47 elementary schools that closed that year, close to 17,000 students were attending the 48 designated welcoming schools, and around 1,100 staff were employed in the closed schools.” “Our findings show that the reality of school closures was much more complex than policymakers anticipated…. Interviews with affected students and staff revealed major challenges with logistics, relationships and school culture… Closed school staff and students came into welcoming schools grieving and, in some cases, resentful that their schools closed while other schools stayed open. Welcoming school staff said they were not adequately supported to serve the new population and to address resulting divisions. Furthermore, leaders did not know what it took to be a successful welcoming school… Staff and students said that it took a long period of time to build new school cultures and feel like a cohesive community.”

In a profound 2018 book,  Ghosts in the Schoolyard: Racism and School Closings on Chicago’s South Side, University of Chicago sociologist Eve Ewing explores the meaning of school closures across Chicago’s Bronzeville neighborhood—the meaning for teachers, grandparents, and students.  Ewing contrasts their love for storied community institutions with the technocratic arguments of school district officials: “The people of Bronzeville understand that a school is more than a school.  A school is the site of a history and a pillar of black pride in a racist city.  A school is a safe place to be.  A school is a place where you find family.  A school is a home. So when they come for your schools, they’re coming for you. And after you’re gone they’d prefer you be forgotten.”  Ewing continues: “It’s worth stating explicitly: my purpose in this book is not to say that school closure should never happen. Rather, in expanding the frame within which we see school closure as a policy decision, we find ourselves with a new series of questions…. These questions, I contend, need to be asked about Chicago’s school closures, about school closures anywhere. In fact, they are worth asking when considering virtually any educational policy decision:  What is the history that has brought us to this moment?  How can we learn more about that history from those who have lived it?  What does this institution represent for the community closest to it?  Who gets to make the decisions here, and how do power, race, and identity inform the answer to that question?” (Ghosts in the Schoolyard, pp. 155-159)

Momentum Grows for Desperately Needed Regulation of Charter Schools

Last summer the Schott Foundation and the Network for Public Education’s published a fine report on the privatization of public education.  Grading the States begins with a reminder that charter schools educate the few at the expense of the many: “The ability for every child, regardless of race, income, disability, religion, gender, ethnicity, sexual orientation or other immutable characteristic, to obtain a free quality public education is a foundational principle in American society.  This principle is based on the belief that everyone should be given the opportunity to learn…. Although the public school system is not perfect and has continual room for improvement, it is… the cornerstone of community empowerment and advancement in American society.  In fact, the overwhelming majority of students… continue to attend public schools with total public school enrollment in prekindergarten through grade 12 projected to increase by 3 percent from 50.3 million to 51.7 million students. This compares with a 6% enrollment in charter schools….”

Wooed by the ideology of freedom of choice, however, the public has not been willing to demand that government rein in what the Network for Public Education’s Carol Burris has called “charters gone wild.” However two recent news analyses highlight growing public skepticism and even outrage about charter schools destroying local public school districts.

For The American Prospect, Rachel M. Cohen summarizes what she calls “the washout” in the past month of charter schools in California: “Following the United Teachers of Los Angeles’ six-day strike, where opposition to charters was a central point of the teachers’ advocacy, the L.A. school board approved a nonbinding resolution in support of an eight-to-ten month moratorium on new charter schools, pending a study on California’s charter laws… A public opinion survey of Los Angeles County residents taken during January and the first two weeks of February found that 75 percent of respondents said they wanted to focus on improving existing public schools, and just 25 percent said the focus should be on giving families more school choices… Further north in California, teachers in Oakland went on strike in late February, ending with an agreement that included among other things, (a resolution for) a moratorium on charter schools… Last week, the California Assembly approved a bill that would subject all charter schools in the state to the same open meetings, public records, and conflict-of-interest laws that traditional public schools are subject to… And that’s likely not all.  Other bills that have been introduced would place a cap on charter schools, limit where charter schools could open, and create new ways to deny charter school applications.”

Cohen adds that a pro-public school candidate, Jackie Goldberg, was the leader—with 48 percent of the vote—in a field of ten candidates for a position on the Los Angeles school board.  The run-off election will take place in May.  And Governor Gavin Newsom and California state superintendent Tony Thurmond have established a select committee to consider further regulation and report out by July. The path to reform may not be smooth, however: Diane Ravitch points out that the committee is loaded with representatives of the charter sector.

Penn State University school finance expert, Matthew Gardner Kelly examines the same issue that became apparent during the teachers’ strikes in California. Charter schools do more damage than many people have realized by siphoning public funding dollars out of the public schools: “From California to Wisconsin, efforts to stop charter school growth are gaining momentum. In the April 2019 mayoral election in Chicago, both candidates say they want to halt charter school expansion.  Financial issues lie at the core of these efforts.  Schools were hit particularly hard by the 2008 recession. Many states cut education funding. As a scholar of school finance, I would argue that charter school expansion is making this bad situation worse… The details of how school funding is structured differ by state, and even by districts within a given state.  Despite this variation a number of studies have shown that charter school growth hurts the finances of nearby public school districts. Recent studies from New York and North Carolina have found that charter expansion negatively impacts local districts’ finances above and beyond simply losing per pupil revenue because of declining enrollments. In Pennsylvania, the local district makes a tuition payment to the charter school enrolling each student from that district.  The payment is based on per-pupil spending for similar students. For example, if a fourth grader leaves a public school in the Pittsburgh School District to attend a charter, the Pittsburgh School District is required to pay the charter school $16,805.99—which is the average amount the district spends on a student in the district.”

Kelly describes how charter schools have contributed to a financial crisis in Bethlehem, Pennsylvania: “Bethlehem Area School District paid $25 million in charter school tuition payments in 2017.  It was not possible to save $25 million with the students gone, however, because of the way the students were distributed across the district. The students enrolled in charter schools came from 13 different grades in 22 different schools. Since students moving to a charter were rarely all of the students from a single school, grade or class, the district was not able to reduce staff or close classes to help cover the charter tuition payments… When (charter tuition) payments are repeated and distributed unevenly across schools and grades, it adds up to millions of dollars… Bethlehem Area School District had 1,900 students, about 12 percent of the districts population, enrolled in charter school in 2017.”  Kelly concludes: “Charter school  expansion drains dollars from local districts in other ways as well. For example, charters enroll far fewer students with characteristics that require additional financial resources, including students with disabilities and English language learners. These dynamics compound the financial difficulties for traditional public schools, which are required to educate all students.”

Then there are the shocking charter school scandals.  The scandals happen regularly, although they are usually reported in local newspapers—which makes it hard to realize the nationwide scale of fraud, conflicts of interest, and corruption. (Check out the Network for Public Education’s list of charter school scandals in 2018 alone.)

This past week’s scandal made the NY Times, because the nonprofit whose operators were profiting from Texas charter school dollars is Southwest Key, the same contractor that has been warehousing migrant children at the border.  Kim Barker reports: “At East Austin College Prep in Texas, raccoons and rats invade offices and classrooms.  When it rains, the roof of the main building leaks. Room 106 was so rickety a chair leg fell through the floor. Yet for all this, the secondary school pays almost $900,000 in annual rent.  It has little choice: Its landlord is also its founder, Southwest Key Programs, a charity that is the nation’s largest provider of shelters for migrant children.”

Barker continues: “The nonprofit says it formed the charter school and three others to help disadvantaged students get to college, but Southwest Key has financially benefited from the schools.  Not only does it collect rent, but it has forced them to hire its for-profit companies, which have charged high fees for everything from maintenance to school lunches… The operations of the charter schools, serving about 1,000 students, show how Southwest Key profits off public money, boosting compensation for charity leaders and stockpiling tens of millions of dollars… A dozen years ago, Southwest Key decided to open charter schools and for-profit companies, including a florist, that ended up funneling money into the charity. The charters, called Promesa Public Schools, pay almost $1.4 million in rent annually to Southwest Key… Money from the schools and for-profits helped raise salaries for charity officials, letting them collect pay far beyond the federal cap for migrant shelter grants—$187,000 in 2017.  Mr. Sanchez (Juan Sanchez, Southwest Key’s founder) was paid $1.5 million that year….. His wife, Jennifer Nelson, earned $500,000 as a vice president, and Melody Chung, the chief financial officer, was paid $1 million. Mr Sanchez resigned on Monday (March 11).”

Grading the States, last year’s report from the Schott Foundation and the Network for Public Education, summarizes the absence of academic and financial regulations in the laws that established charter schools in 44 states and the District of Columbia.  Here are just some of the problems: “Of the 44 states and District of Columbia with charter laws, 28 of these states and the District of Columbia fail to require the same teacher certification as traditional public schools…. Thirty-eight (38) of the states and the District of Columbia have no required transparency provisions regulating the spending and funding by the charter school’s educational service providers….  Of the 44 states and the District of Columbia with charter school laws, students with disabilities are particularly disadvantaged in 39 states and the District of Columbia, which do not clearly establish the provision of services. Twenty-two (22) states do not require that the charter school return its taxpayer purchased assets and/or property back to the public if the charter school shuts down or fails.”

Fortunately teachers on-strike in California—a state which provides school districts virtually no control over the expansion of charter schools within their boundaries and a state where regulation has been extremely lax—have strengthened the political will to rein in an out of control charter sector.  We must hope that the fervor for regulation continues in California and that it becomes contagious enough to drive the political will for stronger oversight across other states as well.