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This post is about a for-profit charter management organization, Imagine Schools, and real estate/facilities. I'm using the dataset ImagineSchools posted here. Imagine is one of the largest charter operators in the country. The company currently operates 70-something schools. A common challenge for charter schools is access to facilities. Some districts give charters access to entire schools, some allow district schools and charter schools to operate out of the same building ("co-location"), and some charters secure facilities through non-profit or for-profit organization in the private sector. To the best of my knowledge, Imagine does not have any schools in district facilities. Instead, Imagine either owns the schools through the company's real estate arm, SchoolHouse Finance, LLC, or partners with one of two real estate investment trusts ("REITs"), Entertainment Properties Trust and Inland Public Properties Development. As of right now, EPT owns 27 facilities used by Imagine and IPPD owns seven facilities used by Imagine. To gather financial information I collected data from IRS 990 forms for the years 2008 through 20101. I pulled the following information

With approximately 500 tax-exempt bond transactions completed to date, the charter school sector of the municipal market continues to gain size and momentum and has emerged as much more than a fragmented niche for high yield investors. The growth rate in the number of charter schools across the country - now exceeding 5,000 - is expected to increase due to the heightened focus that policymakers at all levels of government have placed on results-driven education reform. This growth will generate greater charter school demand for affordable facility financing, a demand that is well met by the tax-exempt bond market with its tax-exempt interest rates and longer principal repayment periods. To date, however, fewer than 8% of charter schools have accessed the market for their permanent facility financing needs.

In his New York Times op-ed "Testing the Teachers" (April 19), David Brooks warns that "an atmosphere of grand fragility" hangs over America's colleges. The grandeur, he says, comes from the colleges' increased application rates, new facilities, and international reputation; the fragility, from increased tuition combined with uncertain results. What must we do? Hold colleges accountable for results-through value-added testing. That'll show who's teaching and who isn't!   Brooks is wrong. Accountability systems would drag down our colleges. The best would be made mediocre, and the worst would rise to mediocrity at most.

In the '60s it was an ambitious experiment in progressive education. Today John Dewey High graduates its final class after being closed as a failing high school. What led the Gravesend facility from success to shut-down?

Charter schools in Chicago would get easier access to facilities and a likely increase in per-pupil funding under a proposed district-charter compact that would also make charters subject to some of the same testing and accountability standards as traditional schools. The draft agreement between CPS and its charters was handed out at a Tuesday conference for participants in the Bill & Melinda Gates Foundation initiative called "District-Charter Collaboration Compacts." Chicago Public Schools and Spring Branch Independent School District, outside of Houston, are joining the 12 districts across the country that already signed on.

In nearly two decades, only 3 percent of charter schools have ever been closed for underperforming, according to a new report released Tuesday. The Center for Education Reform, a pro-charter advocacy group, traced charter-school closures since 1992 in what it called the "first-ever national analysis" of its kind. It found that 15 percent of 6,700 charter schools have been shuttered, and 18 percent of those closures were attributed to academic underperformance. Other prevalent reasons charter schools were closed include financial deficiencies (41.7 percent), mismanagement (24 percent), district-related issues and facilities problems.

A major unintended consequence of this ill-conceived reform movement is that it is distracting local school administrators and boards of education from closing and/or reorganizing schools for the right reasons by focusing all of the attention on closing schools for the wrong ones. In fact, even when school officials might wish to consider closing schools for logical reasons, they now seem compelled to say instead that they are proposing specific actions because the schools are "failing!" Not because they are too small to operate at efficient scale, that local demographic shift warrants reconsidering attendance boundaries, or that a facility is simply unsafe, or an unhealthy environment. In really blunt terms, the current reformy rhetoric is forcing leaders to make stupid arguments for school closures where otherwise legitimate ones might actually exist!

"It's about time we all suck it up and realize that the best of economic research on factors associated with test score gains not only can, but must absolutely drive the redesign of our obviously dreadful American public education system! [despite substantial evidence to the contrary!] With that in mind, I have selectively mined some of my own favorite studies and summaries of studies in order to develop a framework for the absolutely awesomest school ever! I've chosen to focus on only economic studies of measurable stuff that is actually associated with measured test score gains. After all, that's what matters - that's all that matters! Mind you that this school will be awesomest not merely in terms of overall effectiveness, but also in terms of bang for the buck, because I'm not messin' around with expensive curriculum or elaborate facilities… or high priced consultants… or really expensive strategies like class size reduction."

Behind the unusual outcome is a series of state laws designed specifically to empower public charter schools and guarantee them classroom space in public school districts, many of which historically have been unwelcoming and unfriendly to charter schools. In Capistrano, however, these same state laws - including one that guarantees charter schools "reasonably equivalent facilities" - have forced the school district's hand, experts say, creating an unusual and unfortunate situation where the school board was compelled to choose an independently run charter school over a district-run school.

In some cases, charter schools are managed by for-profit entities (referred to in this article as "management companies"). The management agreements documenting these relationships range from agreements to provide general administrative support to agreements to provide virtually every service to be offered by the charter school, including curriculum, payroll, compliance reporting, providing teachers and staff through employee leasing, and the purchase and leasing of facilities. Many charter schools are intended to be operated as 501(c)(3) public charities. Historically, the Internal Revenue Service ("IRS") has carefully reviewed other types of charitable organizations operated by management companies to determine whether they qualify as a tax-exempt charities because they are, in fact, operating for the private benefit of the for-profit management company. However, the IRS has not brought a similar focus on this issue to charter schools generally - until now. The IRS is poised to increase its scrutiny of charter school/management company relationships and is now subjecting charter schools to more stringent standards defining such relationships.

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.

[Passed by the House 9/13/11 365-54] This legislation would amend the section of the Elementary and Secondary Education Act of 1965 that governs federal financial support for charter schools, creating a program that would award grants to charter school developers via state educational agencies, state charter school boards, or governors to open new charter schools and expand and replicate existing charter schools. Priority funding would go to states that take specific steps in support of charter schools, including removing limitations on the number or percentage of charter schools that may exist or the number or percentage of students that may attend charter schools, and ensuring equitable financing for charter schools when compared to funding for public schools. The bill creates a "credit enhancement grant program" that would provide funds to public and private nonprofit entities to help charter schools secure private sector capital to buy, construct, renovate, or lease appropriate school facilities. The legislation also allows charter schools to serve prekindergarten or postsecondary school students.

We do not need high stakes testing to tell us that we have inequalities in education. All we need to do is drive from a city school to a suburban school to see there are inequalities. Class size, student preparedness, parental involvement, and proper facilities are just a few of those inequalities that many of our students and colleagues have to face every day.

Students, teachers and advocates say they are watching once-respectable schools corrode before their eyes as the facilities are swamped with more high-needs students, and teachers have fewer incentives to stay.

"Laura Chapman investigated the charter investors' conference on March 10. And this is what she learned: The US Department of Education will be at the charter school "investors" conference, representing you, dear taxpayer, in a scheme to subsidize the financing of charter school facilities that LISC is marketing, along with the Gates and Walton Foundations and a long list of profit seekers investors who get tax credits for doing deals, among other perks."