Group items tagged

The 2009-2010 school year marked another year of relatively slow growth in the for-profit education management industry. The greatest increase in profiled companies occurred in the category of small EMOs (i.e., EMOs that manage three or fewer schools). We believe our key finding from the 2007-2008 and 2008-2009 report, i.e., that the growth of the EMO sector is slowing, still holds true for the 2009-2010 academic year overall. While the number of new schools under for-profit EMO management has slowed, the enrollments in these schools continue to grow at a more rapid pace. This Profiles report shows that generally large for-profit EMOs are managing fewer schools, and that small and medium for-profit EMOs are growing. While past annual Profiles reports have focused on descriptive data related to the number of EMOs and schools under EMO management, this year's report adds new variables on school performance as measured by federal or state rating systems. 

While past annual Profiles reports have focused on either for-profit EMOs or nonprofit EMOs, this is the first annual Profiles report to cover both categories in a single report which allows for easier comparisons. The 2010-2011 school year marked another year of relatively slow growth in the for-profit education management industry and another year of steady growth in the nonprofit EMO industry. We believe our key finding from the past three years, that the for-profit school management sector has leveled off and that many for-profit companies are expanding into supplemental services, continued in the 2010-2011 school year. The nonprofit management sector's growth remains steady, both in terms of new nonprofit EMOs and new managed schools. While the number of new schools under for-profit EMO management has slowed, enrollments in all managed schools continue to grow at a rapid pace.

A recent report on the organizations that manage public schools depicts an industry in flux, as the number of for-profit companies and the student enrollment in their schools continue to grow, though not as quickly as for their nonprofit counterparts. Since the late 1990s, the number of for-profit "education management organizations," or EMOs, has tripled, to nearly 100, and the number of states those entities work in has nearly doubled, to 33, the new research shows. Over the past few years, though, the growth of some of those companies, particularly large providers, has slowed somewhat, even as the number of students they serve has increased. Meanwhile, the number of nonprofit EMOs has continued to grow, and their schools' enrollment over the past few years has boomed.

Whether charter schools will increase segregation in schools and, ultimately, in society is an important and hotly contested question. Charter proponents point to the high enrollments of minority and economically disadvantaged pupils in charter schools, compare them with overall state enrollment percentages, and contend that charter schools are integrative. Opponents explain these enrollment levels by noting the high minority and poverty concentrations in the urban areas where charter schools are centered. They quote other research suggesting that the schools exacerbate existing segregation. Gary Miron, Jessica Urschel, William Mathis, and Elana Tornquist examine this issue using a national data base of schools operated by Education Management Organizations (EMOs), 95% of which are charter schools. The study explores whether these EMO-operated charter schools integrate or segregate students by four key demographic characteristics: ethnic/minority classification, socioeconomic status, disabling condition and English language facility.

For the past few weeks, I have been corresponding with some film producers who-encouraged perhaps by the commercial success of "Waiting for Superman"-have an inkling that some very important things are happening with public education in America...some things like crony capitalism, and an economy shifting to public risk and private profit. Recently they asked me whether the virtual schools trend was important. I offered the reply copied below.

The number of students in virtual schools run by educational management organizations rose sharply last year, according to a new report being published Friday, and far fewer of them are proving proficient on standardized tests compared with their peers in other privately managed charter schools and in traditional public schools.

"In response to a request under the NJ Open Public Records Act (OPRA), Education Law Center has obtained a confidential proposal prepared for the Broad Foundation by the NJ Department of Education (NJDOE) to "turnaround," take control, and potentially close over 200 public schools over the next three years.  NJ Education Commissioner Christopher Cerf submitted a draft "School Turnaround Proposal" to the Eli Broad Foundation in November 2011, seeking to secure millions in grant funds from the private, Los Angeles-based foundation. The draft formed the basis of a final proposal, submitted February 2012, requesting $7.6 million in grant funds."