Commentary

Use a Charter School Board to Reorganize Detroit Public Schools

The Michigan Legislature will soon begin debating in full the future of Detroit schools. The governor and the Coalition for the Future of Detroit Schoolchildren have introduced new strategies to address the vicious cycle of poor academics and spiraling debt. Unfortunately, both plans carry significant tabs and cling to the notion that a unified school district central office needs to govern all schools.

In Detroit, large governing entities have little to show in terms of results, with histories of pay to play and excessive compensation for top executives. A conservative governor and a conservative-majority Legislature should actually consider taking a more conservative approach to educational change, one based in choice and that creates a lean and efficient governing structure for schools in Detroit.

A choice-driven system could still embrace the primary features of Gov. Snyder’s plan, including his proposal to use local property taxes to pay off Detroit Public Schools’ $515 million debt. Debt payment would become the sole function of DPS, which would then dissolve as an entity once the debt is paid within 10 years.

The governor seeks to create a new entity called the Detroit Community School District, for which he’d allocate additional state revenue equivalent to $50 per Michigan student, or about $70 million per year. While the creation of a new presiding entity is needed, its role and structure should in no way resemble the central office of old. As recently reported by The Detroit News, DPS spends nearly $2,000 per student on administration, among the highest in the entire state. And it has about the same number of central office employees as it did when there were 100,000 more students over a decade ago.

Legislators might consider modeling a new educating district in Detroit after Washington D.C.’s Public Charter School Board. That governing body does not run schools directly, but rather authorizes independent operators to run the schools. There are more than 60 such operators in D.C. managing 115 schools. The D.C. board manages performance contracts with each operator, closes schools that do not meet performance standards and tries to scale schools that succeed. It does not manage where students must attend school — parents are free to choose to enroll their children in any school.

The D.C. Charter School Board is also a good model for a lean central office — it is funded from a 1 percent fee it charges to the charters under its umbrella. This would amount to only about $70 per pupil or about 4 percent of what DPS currently spends on administration.

That approach works in D.C. because the board is not taking on the expense of directly managing the schools, which operate under a contract, retaining their autonomy and controlling most of their operations, including budgeting and personnel decisions. Legislators are understandably reluctant to have all Michigan districts pay the tab for Detroit. Importantly, the effective elimination of an unwieldy central office could help to make the new educational district self-funded.

While the D.C. Charter School Board provides a model for governing schools of the future in Detroit, one important caveat must be made. The D.C. board authorizes all the charter schools in the city. It’s the only game in town. But in Michigan, there are already public charter school authorizers that manage schools in Detroit, and these schools should continue to operate independently of the new district.

Research suggests that these charter schools produce far better outcomes than their district counterparts. A 2015 analysis by Stanford University found that students enrolled in Detroit charter schools receive the equivalent of an extra 70 days of learning each (180-day) academic year versus DPS kids. Better outcomes for charter school kids are seen in other cities, too, including Washington, D.C.; Cleveland and New Orleans.

Creating a D.C.-like charter board to authorize and manage schools in Detroit would not be as radical of a change as it might first sound. After all, DPS already authorizes 13 charter schools and runs its own Office of Charter Schools. This proposal could be as simple as expanding that office and giving it authority to manage contracts with all the city’s schools.

While entrenched guardians of the educational status quo would protest a new choice-driven system of schools, Detroit parents would likely embrace it. A recent survey found 80 percent of Detroiters want a system where parents are in control of choosing schools for their kids. Indeed, most parents in Detroit have already voted with their feet by enrolling their children in charter schools.

Good leadership makes an opportunity out of a crisis. Fiscally conservative leadership finds ways to make the best use of existing resources. Empowering leadership puts parents in charge of their children’s education. Let’s combine these three qualities to transform Detroit’s education landscape for the better.

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Greg Harris, a former English teacher who holds a doctorate from Miami University, serves as a principal of the New Governance Group. This commentary is provided by the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland, Michigan. Permission to reprint in whole or in part is hereby granted, provided that the author and the Mackinac Center are properly cited.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Schools and Locals Electioneer for Tax Hikes, State Nods

Current state law doesn't require tax-funded information be 'accurate' or 'complete'

Advocacy groups and some newspapers are attacking a bill that would restrict the information local governments and school districts are allowed to send to voters within 60 days of a local tax hike election, and urging Gov. Rick Snyder to veto it.

The provision is in Senate Bill 571, which passed the House and Senate in December (and which also contains many unrelated election-law provisions).

For example, the Battle Creek Enquirer’s editorial page wrote this: “The bill’s backers say it’s aimed at preventing government entities from using taxpayer dollars to influence voters. That's pretense. Such activity is already illegal, and where those abuses occur (rare at best), they are easily and effectively handled through existing enforcement mechanisms.”

To the extent violations are rare, it isn't because school districts and local governments don't actively electioneer for their tax increase proposals. It is instead because the current law's definition of what kind of electioneering is prohibited is extremely narrow.

Also, before an alleged violation is reviewed by the state elections bureau, an official complaint must be filed. Given the broad scope of electioneering activities allowed under past rulings from the bureau, it's difficult for a municipality to be found in violation.

Specifically, unless a school or local government engages in “express advocacy,” which means explicitly calling for a “yes” or “no” vote, the interpretation of current law means that it's pretty much anything goes.

In 2011, Michigan Capitol Confidential reviewed all the campaign finance act complaints filed with the state from 2006 to 2010. Those findings are worth revisiting, certainly in the light of claims by the Battle Creek Enquirer and other media outlets that the current law is working and violations are rare.

During those five years, just two school districts were cited for violating the law that prohibits using district resources to promote a yes vote on a bond election. In both cases, the penalty was a $100 fine. But a closer look at the complaints that were rejected raises serious concerns amount how much tax-funded electioneering is allowed by the state.

For example, the Berkley School District reported in a 2010 newsletter that the cost of a debt proposal (bond) would be $167 million. Residents filed a complaint that this amount didn’t include interest and that the true cost was therefore $430 million. The district did not mention this in its newsletter.

Yet state officials ruled that the district was not in violation of the law: “The statute, however, does not require that the information disseminated by a public body be accurate or complete … only that it is factual.”

In 2006, Galesburg-Augusta Community Schools mailed a districtwide newsletter that said, “voters can vote yes for one, two or three (bond) proposals.”

The state said that, too, was not a violation of the law, and explained, “Although the article neglected to mention that readers may also vote ‘no’ on any of the ballot proposals, the Department regards the quoted sentence as a statement of fact.”

In 2006, the Macomb County School Boards Association and the Macomb County Schools Superintendent Association used taxpayer dollars to mail a pamphlet claiming that a $565 million tax increase called Proposal 5 would “boost Michigan’s employment rate and economy.”

The resident who filed the complaint said most of the money would cover pension costs and there was no proof the tax increase would add jobs or improve the economy. But the state ruled the pamphlet “simply presents factual information concerning education funding and the potential impact if the ballot question is adopted.”

And in 2007, Southgate Community School District mailed out an informational flier in advance of a bond election that contained these statements:

  • “Securing a better future for Southgate students …”
  • “Let’s make our Southgate schools safer and better …”
  • “To stay competitive in the global economy, we must provide our students access to the latest educational technology systems and updated computer workstations …”
  • “Security at school is a win-win for everyone.”
  • “Maintaining a safe, secure learning environment will enable school personnel to teach our Southgate students to the fullest of their ability.”

The state ruled that none of these violated the law.

“A sensible reader may be left with the distinct impression that the informational flyer contains an unambiguous appeal for voters’ support,” elections bureau officials wrote in their response. “It does not contain words of express advocacy.”

Local government and school officials across the state know very well how much leeway the state has given them.

For example, in 2011, Saline High School posted a video in which a school employee said, “I’d like to ask for your support for our upcoming bond extension on Feb. 22.”

Scott Graden, then the superintendent at Saline, defended the comments as being within what the law allows.

“I know that ‘express advocacy’ has been clearly defined as the use of the word ‘yes’ by school staff other than the superintendent,” Graden wrote in a 2011 email.

Graden did say he would take down the video and remove the comment so it would not “create confusion.”

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.