Spencer Navarro Crane

Dr. Justin Rex

American Government
30 March 2015

Introduction
The problem my group is facing is the lack of results yielded by Michigans expensive
public education system. Every year, Michigan taxpayers contribute over $1 billion tax dollars to
the public education system, while many of the charter schools that eat up most of this funding,
and the majority within the city of Detroit, have failed to perform to even the most basic
standards imposed on truly public schools. One of the largest, and most structural parts of this
public education disaster, is a lack of government and civic oversight in Michigans charter
schools. In fact, Michigan has the most serious lack of charter oversight in the entire nation.1 The
problem solving effort that must be undertaken to rectify this growing issue includes a push for
increased state government regulation and oversight of charter schools, but the first step to
solving the problem is to stop it from growing: already there have been attempts to pass a
moratorium on the establishment of new charter schools. A moratorium is, for lack of a better
explanation, a conditional prohibition that would require legislators to pass regulation and bring
current charter schools up to par before any new charter schools can be established. The barriers
this effort faces are primarily within the market and civil sphere, though the barriers originating
in the civil sphere are mostly the product of misinformation, and ironically, the product of the
lack of government oversight that I am pursuing.
1http://edtrust.org/press_release/testimony-of-kati-haycock-before-the-national-commission-onaccountability-in-higher-education/

Barrier: Uninformed, Misinformed, and Disinformed

Due to a conflict of interests between providing quality education and maintaining profit
margins, the facts surrounding charter schools have been greatly skewed. This is the greatest
barrier to overcome, because it contributes directly to the issue of resistance from the labor force
and teacher unions, the barrier that will be covered next. It also acts as the strongest barrier
against getting legislation over the combatant interest group hump by mustering even more
widespread public support, awareness, and demand for action.

There is fear among teachers that a moratorium on new charter schools would lead to
continued unemployment, which is perhaps true temporarily. But the moratorium is the product
of the quest for transparency and legitimacy that is necessary for long term growth and success
for Michigans charter schools, the public education system as a whole, AND the work force.
Michigan is now a Right to Work state, and that has contributed to the difficulties faced by
charter school teachers and employees to unionize. However, while the effort to attain better
wages and more teacher input has been conducted through unionization efforts, a more
encompassing approach exists. Legislation requiring transparency surrounding where tax dollars
are going, and where profit margins are coming at the expense of the systems health, is the first
step towards giving educators a louder voice, and the ability for both teachers and the public to
pursue fairer wages for our childrens educators, regardless of unionization and the ability to
collectively bargain. The money is already there to offer competitive wages and more jobs, just
look at some of the ridiculous numbers surrounding for-profit management companies: National
Heritage Academies (NHA), the states largest for-profit school management company, charges
14 of its Michigan schools over $1 million a year in rent, an excessive amount according to many

real estate experts. Just a few more of the discoveries made by the investigation included
severance packages for administrators for over half a million dollars, millions of dollars in jobs
offered to the friends of founders, undisclosed business deals that reek of nepotism, and the list
goes on.2 What is NOT there is the ability to check and balance the overbearing say that the
management companies currently have in where that money goes, and in the curriculum, or lack
of curriculum.

Misinformation has contributed to the continued demand for charter schools by parents,
who continue to live under the guise that they offer a better alternative to a subpar public
education system, a claim and cloak that not only is unsubstantiated, but actually contradictory of
what is true. According to a year long investigation conducted by the Detroit Free Press, 38% of
charter schools that received state academic rankings during the 2012-13 school year fell below
the 25th percentile, meaning at least 75% of all schools in the state performed better. Only 23%
of traditional public schools fell below the 25th percentile.3 The continued demand by
constituents for charter schools, unknowing that their demand is in fact what drives crippled
education standards, is one example of how misinformation has created obstacles for legislators
and the public to go after the often corrupt, for-profit management companies hiding behind the
issue. Groups like MAPSA, the Michigan Association of Public School Academics, have done a
consistent job of spinning decisions and announcements made into attacks against the private
sector, but have never defended their right to not disclose financial statements on any grounds
other than because they are private, regardless of their public funding.4 The argument is made
2 http://www.freep.com/article/20140622/NEWS06/306220096
3 http://www.freep.com/article/20140622/NEWS06/306220096
4 http://www.charterschools.org/press-room/1434

that charter schools provide a choice of education, but the truth is clear: they remove the
choice to pursue a decent education entirely.

Perhaps the largest perpetrator of disinformation is the legislative body of Michigan

itself. The lack of legislation that has been put forward to address an issue that is well known by
both parties and well understood by some of the most active community participants and voices
has led the general public to believe that there is not a problem at all. By failing to act, the state
has done all of us a great injustice by leading us to believe that action is not necessary.

Solution
The best solution to this issue is the opposite of what has been done: to spread awareness
about this huge problem that is growing, and to make the startling statistics known by all,
especially voters and parents beginning the school search for the first time. This will require the
voices of cogent educators and community names for the message to carry the weight it needs to
carry. Former state schools Superintendent Tom Watkins, who has consistently advocated for
charter schools, has himself spoke out against for-profit management companies hurting
childrens education.5 There are many other big names in education doing the same, but public
awareness is key. In essence, cut the demand, make the demands, and have the demands known.

Barrier: Labor Force and Union Resistance (Civic)

The creation of charter schools, especially during the peak of Detroits financial crisis, is
the reason many teachers still have their jobs or found their jobs. However, as has been proven in

5 http://www.freep.com/article/20140622/NEWS06/306220096

my prior papers, the quantity is not at all positively correlated with the quality. The root of this
issue is in the falsely created illusion of an either-or choice between empowering the educator
workforce and providing a good education system. When you can look at that on paper, its clear
to see the ridiculous contradiction: empowering the educator workforce is what creates a good
education system, and a good education system is what empowers the educator workforce. This
serious state of disinformation comes from the numbers that live in the shadows: the money is
there to provide competitive wages, larger budgets for discretionary spending and school
activities, and more teaching jobs--eventually. However, a lack of oversight has left legislators
and teachers pointing their guns at each other, instead of at the charter school management
groups where the money and empowerment is being guarded carefully. There is also resistance
from the labor force to pursue better enforced educational standards, given that the lack of
enforced educational standards has left both charter schools and their workers free from
consequence. Regardless of incentives or disincentives, this must be at least in part a product of
teachers that do not produce results. The invincibility of illegitimate educators relies on the lack
of oversight by the government, and increased regulation would give the public the tools it needs
to weed out bad teachers.
Unionization efforts have been undertaken by teachers at different charter schools, but
most of them have not yet seen results. Detroits largest charter school, Csar Chvez Academy,
has worked towards the unionization of its teachers but has not achieved success yet.6 It is hard
to say whether a successful unionization of charter school workers would put pressure on
legislators for or against, regulation of charter schools.

6 http://aftmichigan.org/cesar-chavez-film-inspires-hundreds-at-detroits-largest-charter-school-asteachers-testify-against-management-company/

Solution
The solution is a better state of understanding and the unification of educators. Michigan
Education Association President Steven Cook speaking out loudly against the current state of
charter schools is an example of a step in the right direction.

Barrier: For-Profit Education Interest Groups (Market)

According to a study released by the National Association of Charter School Authorizers
(NACSA), On The Road to Better Accountability, Michigan was ranked last compared to
similar states in terms of the accountability laws in place to govern charter schools.7 This is
considered very significant, especially since NACSA is a known pro-charter school group.
Unfortunately, the majority of Michigans authorizers are faced by a serious conflict of interest:
charter school authorizers receive 3% of the schools state funding when they authorize a new
school, creating a tremendous financial incentive to authorize as many schools as possible.8
Usually this incentive is checked and balanced by high academic standards: authorizers are
required to oversee any school they authorize and are held responsible for its performance,
therefore forcing authorizers to only authorize the reasonable amount they can successfully
oversee. Unfortunately, the lack of this sanction among many others has left authorizers with an
abundant incentive to authorize, and absolutely zero incentive but good nature to ensure that the
schools are actually performing. The evidence behind this disbalance is shockingly clear: nearly
40% of Michigans charter schools are deemed low performing by the state.9 Juxtapose that
7 http://edtrust.org/press_release/testimony-of-kati-haycock-before-the-national-commission-onaccountability-in-higher-education/

8 http://www.detroitnews.com/story/opinion/2015/01/28/labor-voices-stop-charter-schools/22428989/
9 http://www.detroitnews.com/story/opinion/2015/01/28/labor-voices-stop-charter-schools/22428989/

against for-profit charter schools exponential growth in funding over the last ten years compared
to the increasing number of public schools now facing financial collapse, and its clear to see that
good nature is not enough of a sanction when it comes to protecting the future of our public
education system.
Solution
The solution to this problem is to pass legislation on charter schools just as similar states have. A
moratorium on new charter schools is the first step and will set the precedent for solving the
entire issue. There have been temporary bandaids applied to the issue, for example
Superintendent Mike Flanagan put 11 authorizers on notice that they might lose their ability to
authorize new charters.10 However, a lasting stand against charter school corruption is necessary
for a lasting difference.

Conclusion
While both civil and market barriers exist, they would be quickly eradicated by legislative action
to hold charter schools accountable and force them to be transparent about where our public
dollars are going. Because clearly, they arent going towards our childrens education.

Works Cited

Cook, Steven. "Cook: End Michigan's Charter School Experiment Already." The Detroit News.
Detroit News, 28 Jan. 2015. Web. 29 Mar. 2015.
10 http://www.freep.com/story/news/local/michigan/2014/09/18/charter-schools-moratorium-legislationmichigan/15804605/

<http://www.detroitnews.com/story/opinion/2015/01/28/labor-voices-stop-charterschools/22428989/>.
"Csar Chvez Film Inspires Hundreds at Detroits Largest Charter School as Teachers Testify
Against Management Company." AFT Michigan. AFT, 31 Mar. 2014. Web. 30 Mar. 2015.
<http://aftmichigan.org/cesar-chavez-film-inspires-hundreds-at-detroits-largest-charterschool-as-teachers-testify-against-management-company/>.
Dixon, Jennifer, and Kathleen Grey. "Lawmaker Seeks Moratorium on New Charter Schools."
Detroit Free Press. Detroit Free Press, 18 Sept. 2014. Web. 30 Mar. 2015.
<http://www.freep.com/story/news/local/michigan/2014/09/18/charter-schoolsmoratorium-legislation-michigan/15804605/>.
Dixon, Jennifer. "Michigan Spends $1B on Charter Schools but Fails to Hold Them
Accountable." Detroit Free Press. Detroit Free Press, 22 June 2014. Web. 29 Mar. 2015.
<http://www.freep.com/article/20140622/NEWS06/306220096>.
"March 30, 2015 - MAPSA Statement on Detroit Coalition Proposal." MAPSA. Michigan
Association of Public School Academies, 30 Mar. 2015. Web. 30 Mar. 2015.
<http://www.charterschools.org/press-room/1434>.
Sands, David. "Detroit Charter School Union Drive Ramps Into High Gear." The Huffington
Post. TheHuffingtonPost.com, 22 Dec. 2012. Web. 30 Mar. 2015.
<http://www.huffingtonpost.com/2012/12/23/detroit-charter-school-union-cesarchavez_n_2348289.html>.
"Testimony of Kati Haycock, Before the National Commission on Accountability in Higher
Education." The Education Trust. The Education Trust, 10 May 2004. Web. 30 Mar. 2015.

<http://edtrust.org/press_release/testimony-of-kati-haycock-before-the-nationalcommission-on-accountability-in-higher-education/>.