News Story

No Accountability? 30 Percent of Detroit's Charter Schools Have Closed

22 charters have shuttered since 1994

A 1994 law introduced public charter schools to the state of Michigan. Since that time, about 30 percent of the charters that have opened their doors within the city of Detroit have been forced to close by their authorizers.

Over that period, 72 of the taxpayer-funded schools — otherwise known as "public school academies" — have been authorized in the city, including a few overseen by the Detroit school district itself. Of these 72 schools, 22 were later closed due to financial, academic or enrollment issues.

Unlike conventional public schools, charters have no semi-monopoly on educating children who live within a certain ZIP code. Instead, they must build their enrollment by appealing to parents who want something better for their children than what the local conventional public school provides. If a charter school fails to deliver, then parents are free to send their children somewhere else. If enough parents at a charter school do this, the school may be forced to close.

Also, if a charter school fails to meet the standards and conditions stipulated by the institution that chartered it — usually a state university — the school can lose its charter, and must then close.

“Unfortunately, there is a myth that charter schools don't close in Detroit,” said Audrey Spalding, the director of education policy at the Mackinac Center for Public Policy. “But it's not true. A large number — 22 — of Detroit charter schools have closed for academic or financial reasons.”

Charter schools have been controversial here since the first ones began creating competition for the unionized conventional school districts that previously had a complete monopoly on state public education dollars. Most charters serve lower income populations that also experience lower educational attainment. Evidence suggests that despite the 22 closed schools (or perhaps because of them), charters have served Detroit families well.

The most recent evidence came in March from Stanford University’s Center for Research on Education Outcomes (CREDO). It found that students in Detroit charters are getting a better education in reading and math than their peers in the city’s conventional public schools. Specifically, for each year students spend in Detroit charter schools, they receive the equivalent of a few weeks to as much as several months of additional learning in reading and math.

Nevertheless, two proposals currently under active consideration could restrict or even shut down charter schools in the city. A proposal from Gov. Rick Snyder, and another by a group called the Coalition for the Future of Detroit Schoolchildren would essentially turn over decisions on whether and how many independent charter schools could exist in the Detroit area to the city's elected school board, which has traditionally been hostile to the competing institutions.

In contrast, the Great Lakes Education Project has proposed changes considered more friendly to Detroit charter schools.

"We need to reject the false narrative from the anti-choice crowd that poor-performing charter schools are running amok in the state,” said Gary Naeyaert, executive director of the Great Lakes Education Project. “The facts are that while more than 80 charter public schools have been closed for poor performance, not a single traditional public school has ever been shut down for academic failure.”

The authors of the Stanford CREDO charter school study said that Detroit charter schools should serve as a model for other communities. These scholars' research does not always favor charters, however. On July 22, CREDO released a study that found charter schools in Texas show less progress in both reading and mathematics compared to their conventional district peers.

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.

Commentary

Health Care Law Squeezes Public School Budgets

Employer mandate forces schools to privatize services and cut hours

The Affordable Care Act, aka Obamacare, has forced many public schools to cut employee hours or privatize noncore services. At issue is the ACA’s mandate that employers with 50 or more full-time workers provide health insurance to any who work 30 or more hours per week.

The Baraga Area Schools in the western Upper Peninsula is among the many districts in Michigan that are feeling the effects of the law. Superintendent Jennifer Lynn says her district had employed more full-time support staff, but has been forced to cut hours due to the prohibitive cost of the ACA mandate.

Baraga is no outlier. A 2014 survey commissioned by the Association of School Business Officials International found that nearly 50 percent of school districts were concerned about the impact of the ACA’s employer mandate.

An example of the costs involved can be seen in the Parsippany school district in New Jersey, which estimated that providing health insurance for 185 paraprofessionals would cost $4.5 million per year. The school district in Vigo County, Indiana would have to pay $6 million annually to provide coverage for support staff.

These rising costs can have ripple effects. At Michigan’s rural Elkton-Pigeon-Bay Port Laker school district, officials report the health insurance mandate generated cost increases approaching six figures, which forced them to lay off certain staff members. Consequently, classroom sizes rose.

Part-time Employees

School districts can also avoid the mandate’s costs by shifting more employees to part-time status. That’s how Indiana’s Vigo district managed the problem. It avoided layoffs by trimming more than 500 support staff workers to less than 30 hours per week. Michigan’s Cass City school district hired part-time paraprofessionals and bus drivers.

That’s less of an option with instructional staff, though. School officials say that it’s hard for students to adjust to having multiple part-time educators throughout the day. Chris Johnson, an administrator with the Penn Manor school district in Pennsylvania, told a publication there that, “If you start doing a half day with this person and then a half day with that person, those students don't react well.”

Privatization

In schools across the country, outsourcing noninstructional services has been on the rise over the last decade. This cost-cutting tool has become even more attractive since the rollout of the ACA mandate, because it lets school officials shift the burdens of compliance to private contractors.

To minimize teacher layoffs, Michigan’s Elkton-Pigeon-Bay Port Laker district privatized some services. Pennsylvania’s Penn Manor district had about 30 part-time aides who worked with special needs students. Rather than cut those aides’ hours further, school officials have chosen to contract out this function to a private firm that will also fill its need for substitute teachers.

Options Limited

An article posted on the Kansas Health Institute news service suggests that for some districts it would be cheaper to just eliminate employee health insurance and pay the $2,000 to $3,000 per employee penalty the law would impose for doing so. Officials at Michigan’s Cass City district say this is not their preference, and privatizing some functions helps them avoid it. Other school districts have formed co-ops with neighboring districts to spread the brunt of the cost, according to Holly Murphy of the Texas Association of School Boards.

There is no one-size-fits-all solution for school districts trying to cope with the ACA, which like many government programs has had consequences not foreseen by its authors, and costs that, in the eyes of many, far exceed the benefits.

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.