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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:53 PM
Original message
Compilation of charter school scandals over the past year.
Courtesy of the blogger called The Perimeter Primate.

It is important to keep up with such things as this because these schools get public money while being privately run and mostly deregulated. Tax money is taken from the traditional public schools and sent to the charter school with no expectation it will ever be returned.

The post is quite long, so here are just a few.

COMPILATION OF CHARTER SCHOOL SCANDALS April 2009 to April 2010

Some of the more egregious:

April 2009: In Springfield, Massachusetts, the New Leadership Charter School made national news when one of its 11 year-old students killed himself after severe bullying. In the school's charter renewal, the state cited it for "inconsistent implementation of the character education and leadership elements of its mission.

..."February 2010: In Philadelphia, a former administrator at Community Academy Charter School has filed a whistle-blower suit alleging that she was improperly fired the day after federal agents raided the school in August. She claims that charter school officials retaliated against her because she had filed a complaint with federal investigators detailing "a pattern of criminal misuse of local, state, and federal funds." The charter founder and CEO had five relatives on the charter's payroll and his wife was a consultant to the school.


And more and more we are finding that real estate transactions and profits are involved.

March 2010: In Oakland, California, the Oakland Charter Academy’s executive director was denied confirmation to sit on the California State Board of Education because of financial questions relating to an interlocking series of real estate business arrangements involving him and a close associate, Ben Chavis of Oakland, the former director of the American Indian Public Charter School. These two operate five Oakland charter schools.


And another from New York City:

March 2010: In New York City, a federal grand jury is trying to unravel a complicated story about the finances of two local politicians and their ties to two charter schools, Merrick Academy Charter School and Peninsula Preparatory Academy Charter School. The story involves campaign donation from developers, officials funneling public money to the developing firm, the charter schools giving campaign donations to the politicians, the relocation of a charter school to property owned by the developer, and more. Peninsula Preparatory Academy Charter School is run by a for-profit company called Victory Schools. The students sit on property in trailers in a lot behind a chain-link fence, surrounded by piles of dirt, with no labs, gym, playground or cafeteria kitchen. The property is being developed by one of the politicians top campaign donors. The developer uses the school as a selling point to hawk his houses.


More landlord/tenant real estate profiteering:

April 2010: In Philadelphia, a federal probe has discovered that the CEO of the Mathematics, Civics and Sciences Charter School rents the school's property from Parents United, an organization which she also heads, making her both landlord and tenant. Apparently, the charter school’s board also approved $536,093 for travel and conferences, but the school didn’t document them.


Long post, much more there. The Perimeter Primate blogger summarizes some the main problems with charters at this time.

It's important to know these since our Secretary of Education is paying districts who allow more and more of these schools.

The free-market version of schools seems to mean that the offices of local, state, and federal investigators and prosecutors will need to be greatly expanded as they are called on more and more to handle cases of the following:

* Tampering with grades, attendance and testing
* Misuse of local, state, and federal funds: grand theft and misappropriation of public school funds, embezzlement and engaging in fraud and misrepresentation, bankruptcy fraud, and federal and local tax evasion.
* Nepotism and conflicts of interest
* Scandals involving elected officials, developers, and charter schools
* Complicated, shady, borderline-legal and illegal real estate deals


Then there are the 13 Philly charter schools which are being investigated there...many of them for profiteering. Not what should be happening with taxpayer money.

City Controller Alan Butkovitz's investigation of 13 Philadelphia charter schools found repeated examples of complex real estate arrangements in which charters leased or rented facilities from related non-profit organizations.

"The way the charter law is written and not enforced--there is a gigantic loophole through which people can profiteer," Butkovitz said. "This is not supposed to be a vehicle for maximizing profit for operators and related parties."

Butkovitz began his special fraud investigation of charters several months after The Inquirer reported allegations of financial mismanagement and conflicts of interest at Philadelphia Academy Charter School in April 2008.

His staff has been sharing information with the U.S. Attorney's Office, which is conducting a criminal investigation of at least nine area charter schools, according to sources with knowledge of the probe.


There is a need for some high level Democratic politicians with clout to speak out on this practice and its use of public money.

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Dappleganger Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Apr-15-10 11:56 PM
Response to Original message
1. Bookmarked, K&R
Thanks for compiling these!
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Dinger Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:19 PM
Response to Reply #1
12. Same Here
madfloridian for Education Secretary!
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:06 AM
Response to Original message
2. K & R
It's like you're documenting an epidemic.
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snot Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 01:44 AM
Response to Original message
3. K&R'd
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 03:02 AM
Response to Original message
4. Thank you for this list, I posted a few recently in another thread
vbabout problems with schools in NY State.

The privatization of public schools is resulting in the problems always found when public funds find their way into private hands.

First there are the middlemen, 'management companies' who are taking their share of the funds which otherwise would have gone directly to education. And in some cases, they are very resistent to any kind of scrutiny. Considering they are handling public funds, it's hard to understand how they could not be subjected to the same rules as public schools.

Lifting the Rock on Pennsylania Charter Schools

In 2005, Matthew Zager, a reporter for the Delaware County Daily Times, filed a Right-to-Know law request with Vahan Gureghian, head of the management company that operates the Chester Community Charter School. Zager asked for an auditor's report, financial statements, and the school's management agreement with the corporation that had managed the charter before 2002.

The request was denied by Danielle Gureghian, Vahan Gureghian's wife and a lawyer for his management company. She said the management firm was a private company and not subject to the Right-to-Know law.

Delaware County Common Pleas Court, Commonwealth Court, and the Supreme Court all rejected that argument. "Charter schools are not exempt from the statutes that are applicable to public schools," the Supreme Court said in its ruling. . . .


Management companies are for profit first. Just like health insurance companies. It is just ripe for corruption and from the number of charter
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 09:45 AM
Response to Reply #4
5. If they are handling public money they should be subject to scrutiny.
Interesting article. Do you know if they appealed the ruling higher?



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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-17-10 12:44 AM
Response to Reply #5
26. I couldn't find anything on an appeal.
But I did find this. Delaware seems to have a number of problems with charter schools. I'd like to find other sources for this, but it seems they have closed three so far, and are considering closing a fourth. It seems there are about 20 Charter schools in Delaware, but that was from a quick search so I'm not absolutely sure of that number:

Moyer Would be the Fourth Charter School to Close in Delaware

“Two schools experienced publicized disruptions of service a few years after they opened. The Richard T. Milburn Academy closed in 2000 because of low academic performance and disagreements within its board, and the Georgetown Charter School closed in March 2002 for financial reasons “




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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-17-10 01:08 AM
Response to Reply #5
27. Okay, I just found this. It is a report on Delaware's
Edited on Sat Apr-17-10 01:09 AM by sabrina 1
Charter schools. The source I found wasn't far off on the number of Charters they have in Delaware, but this is more detailed as I think it is an official report:

Charter School Disruption of Service in Delaware: Report and Recommendations

In Delaware, both the State and school districts can authorize charter schools. Between 1994, when Delaware’s charter school law was passed, and November 2004, 24 schools have received charters from the state Department of Education (DOE), and two have received charters from the Red Clay Consolidated School District. However, only thirteen are operating. Eleven of those 26 schools failed to open after receiving their charter, and two closed after beginning operations.

Few charter school proponents foresaw the number of disruptions of services that would occur because of failure at the business-operations, rather than at the academic, level. The Center for Education Reform, a national charter school support organization, found that 66 percent of charter school disruptions of service nationwide were due to financial problems or mismanagement. Since 1999, the interpretation of the charter school code has evolved so that regulations controlling the learning environment may be waived, but regulations that control the business environment cannot.


I don't know why they did not foresee those problems. Whenever there is money to be made, and the management companies are purely about business, did they really think they would be looking out for the children's interests? Especially with so little oversight?

It would be interesting to do a study state by state including how many Charters each state has, how many have failed and for what reasons, academic and/or business management. Also, compare to the regular Public Schools. I did notice in the list of Delaware's Charters, that there were Military Academies eg. Is that allowed with public funds? Specialized schools, and if so, what's to stop religions from getting funding to start schools?



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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-17-10 01:19 AM
Response to Reply #27
28. Delaware and TN got top honors from Arne Duncan.
And get millions of dollars from the DOE.

Hard to know the criteria.

Thanks for the links.

http://journals.democraticunderground.com/madfloridian/5917
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-17-10 01:53 AM
Response to Reply #28
29. I would like to know the criteria also. Just read your linked OP.
Do you know if that money will go to Charter or Public Schools or both? I don't know much about Delaware's educational system, but the conversation on the Delaware Blog on their education system is interesting. I don't know what party affiliation the blogger has but he did say he crossed party lines to vote for Markell for Governor because he thought he cared about the education of poor children. Now, he says he's having 'buyers remorse'.

He and the commenters do mention (in the above link), which was a couple of months ago, the connection between Arne Duncan and Markell. He seems to think that Duncan is in control, not Obama. The blogger is also concerned about these charters being a way to privatize the public schools and how big foundations, like the Gates Foundation, eg, are involved in the Charter Schools programs in Delaware.

From the report I linked to though, if Duncan is basing his opinion on their Charter Schools, what must the state of the rest of the country's charter schools be in?

It looks like there will have to be a real fight to save the Public School system, since now it looks like both political parties are determined to privatize them.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 11:05 AM
Response to Reply #4
6. Could you give me a link to your other thread? Thanks.
Been looking for it.
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:18 PM
Response to Reply #6
11. Sorry, I wasn't clear. I posted some links in someone else's
thread. This is one of them. It's from NY where at least three Charter schools are likely to be closed down ~

New Covenant Charter School: The Failure of For Profit Management of Charter Schools

New Covenant is the second of the first three schools chartered in New York to be closed.<1> There are two important lessons to be learned from this experience.

First, over New Covenant’s eleven years of existence, it was managed by three different for profit educational management organizations – Advantage Schools, Edison Schools and Victory Schools – each of which dismally failed, in turn, at having the school meet its performance benchmarks. The students who attended New Covenant and the educators who taught in the school were exploited by these EMOs, which profited as the school floundered academically. Now the students and educators are paying the price for the failures of the EMOs.

It was precisely because of the performance at New Covenant and other charter schools that the UFT included the prohibition of for profit EMOs in the package of reforms to charter school legislation we proposed in January.

Second, the final denouement of New Covenant’s troubled history was long and drawn out because of the posture of the office of then Governor George Pataki, the elected official most responsible for the passage of New York’s charter legislation. New Covenant was a high profile charter school in the state capitol of Albany, and its closure was considered a political liability


George Pataki was a Republican Governor of NYS. I don't understand why schools need these management firms, and I don't know how much profit they make. But this is a failed business model as we saw in the Health Insurance Industry and has so much potential for corruption, as well as other obvious problems. Profit driven businesses are going to put profits first.

I've read of other problems with these schools where test results were tampered with eg, to keep up the funding. It's like the deregulated market. With less oversight, there is far more room for corruption.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 07:05 PM
Response to Reply #11
21. "It's like the deregulated market. With less oversight, there is far more room for corruption."
Exactly right.
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sense Donating Member (948 posts) Send PM | Profile | Ignore Fri Apr-16-10 11:45 AM
Response to Original message
7. The list
will be added to shortly. Investigations are ongoing in my state. The laws governing charters and other types of alternative schools are not remotely adequate and need to be changed before more public funds are thrown away.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:00 PM
Response to Reply #7
8.  Yes, the laws are inadequate.
There are more investigations going on elsewhere as well.

Now if we could just find a Democratic leader to speak out and stop the turnovers and turnarounds and give aways to private management companies.

My head is swimming.
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Robb Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:03 PM
Response to Original message
9. I am no fan of privatizing public schools
...but a list like this implies on its face that there are fewer "scandals" at public schools. There are a lot of public schools, and hence a lot of scandals.

I would think the effectiveness of such a list would be enhanced with some explanation that there are more scandals with charters percentage-wise. :hi:
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:14 PM
Response to Reply #9
10. There is oversight at public schools.
And few scandals.

But then public schools are so old-fashioned and on the way out.

:shrug:
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:39 PM
Response to Reply #10
32. Parents can also talk to the child's teacher, and the teacher has some say in what is taught
The charters will centralize curricula at a national, corporate office. The teachers will be no more than "customer service" reps and be planning (and reading) from a corporate script.
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sabrina 1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 12:34 PM
Response to Reply #9
13. I think when the failures include
discriminating against children with learning disabilities, eg, in order to make their test scores look better, or in some cases, turning such schools into religious schools, while no one denies problems in the public schools, at least there is oversight that Charter Schools are not subjected to. They are using public funds, yet are not accountable to the public in the same way Public Schools are.

One example of how profit driven schools can operate as I said above, without oversight and leave out the children most at risk in order not to bring down their test scores:

The Failure of For-Profit Management of Public Schools

Charter management and NYCSA publicist Thomas Carroll, head of the Brighter Choice charter school chain in Albany which recently was the subject of a withering Charter School Institute report for illegally denying admission to students with special needs, took to the pages of the Albany Times-Union to offer his excuses for the closure. Carroll served in high positions in the Pataki administration, but he is silent on the role of the Governor’s office in the renewal of the New Covenant charter for so many years despite its academic performance.


In this case it was political, as it has been elsewhere, Florida eg. Schools should be free of this kind of political influence. This is a Republican idea, and like all Republican ideas, it was a bad one.

I would like to ask them how come their usual philosophy of 'the market will take care of it' doesn't apply when it comes to dipping into tax payer funds? If they want private schools, or religious schools, let them do it the old fashioned way, or better yet the Republican way. Stay away from those commie dollars which they are so against anyhow, and let Charity take care of it, as they always claim is the way to deal with every problem.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 01:16 PM
Response to Reply #13
15. Being managed by Advantage to Edison to being managed by Victory..
"On March 23, the Board of Trustees of the State University of New York brought the long saga of New Covenant Charter School in Albany to an end, voting to close at the end of this school year one of the first charter schools to be opened in New York. This decision was the final act in what SUNY called a “difficult history,” which included two consecutive non-renewal recommendations by SUNY’s Charter School Institute and a 2007 vote by New Covenant’s own trustees to close the school due to financial problems."


"First, over New Covenant’s eleven years of existence, it was managed by three different for profit educational management organizations (EMOs) – Advantage Schools, Edison Schools (now Edison Learning) and Victory Schools – each of which dismally failed, in turn, at having the school meet its performance benchmarks. The students who attended New Covenant and the educators who taught in the school were exploited by these EMOs, which profited as the school floundered academically. Now the students and educators are paying the price for the failures of the EMOs."

And closed as a failure.
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:47 PM
Response to Reply #15
33. But I'll bet some Wall Street types got their tax dollars out of it.
Or perhaps these weren't the favored corporations and others were. Remember, some of them are now exempt from benchmarks and testing results.
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EFerrari Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 01:16 PM
Response to Original message
14. Kick
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teacherdeb Donating Member (11 posts) Send PM | Profile | Ignore Fri Apr-16-10 02:04 PM
Response to Original message
16. Please add Imagine Schools to the list. It is the largest CMO
in the country. It is managed by billionaire Dennis Bakke, an ex-energy CEO who played a substantial role in legislation deregulating energy that led to the Enron scandal. Even though his schools have not received non-profit status, he collects many, many millions from the DOE. According to the Imagine School annual report, in only five years, Bakke, or Imagine Schools, has acquired assets of over $400,000,000. His real estate dealings have been under investigation for some time. Even more disturbing is his connection to "the Family" of C-Street renown and his "Joy at Work" Christ-based curriculum. You can read more about it here. It's scary!

http://greatschoolsforamerica.org/wordpress/?p=12
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 02:38 PM
Response to Reply #16
17. Already written about Imagine Charters many times. Real problems there.
Imagine Charter Schools sells 5 schools for 44 million...will have them leased back to them.
http://journals.democraticunderground.com/madfloridian/5586

Charter school principals fired after questioning taxpayer money spent on school's real estate arm.
http://journals.democraticunderground.com/madfloridian/4784

Imagine Charters facing discrimination lawsuit from former employee.
http://journals.democraticunderground.com/madfloridian/5714

Two Florida charter schools in financial crisis. Taxpayer money is paying their debt.
http://journals.democraticunderground.com/madfloridian/5801

Imagine Charter School in Florida to give pay cuts to teachers.
http://journals.democraticunderground.com/madfloridian/5295

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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 03:36 PM
Response to Reply #17
18. +1
.
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:53 PM
Response to Reply #17
35. I hate how this info keeps disappearing into the abyss
Can you please set up your own website where those of us who care can come back to this? Or at least double post it somewhere else where it won't fall into the abyss?
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AllyCat Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 05:30 PM
Response to Original message
19. See? Just allow them to run public stuff like businesses
and they run them like businesses. Oh wait, I guess that isn't so good. Well, um, uh, no guvmint in my back pocket, or something.
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alp227 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 06:20 PM
Response to Original message
20. I have an idea: Print this thread out, stuff it in an envelope...
and mail it to the Department of Education. MULTIPLE people should do this, to get Duncan Donuts aware of chartorruption.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 09:35 PM
Response to Reply #20
24. Good idea, but this is their plan.
They are not into what we think about it I fear.
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:59 PM
Response to Reply #20
37. +1
.
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defendandprotect Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 07:22 PM
Response to Original message
22. k
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LWolf Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Apr-16-10 07:45 PM
Response to Original message
23. No wonder Obama and Duncan want to see so many more.
Just in case: :sarcasm:

We have a current charter issue going on in my district.

The district dissolved the charter for the IB school this year, bringing it in as a district alternative school. I'm all for that.

The newer charter school, only 2 years old, though...

When the charter was presented, they claimed that they would never have more than 50 high school students. It's basically an independent study program. The doors are open for long hours. Students show up when they want, do whatever, decide what kind of class to take, and are given some initial instruction by one of the 4 teachers who, btw, make about 20K more per year than our district's average. After that, they are on their own. They set their own schedules, show up when they want, turn stuff in when they want, and there is very little oversight of what they are doing. It was originally envisioned for students who have activities or family schedules or other issues that kept them from regular attendance.

They currently have almost 100 students, and are pushing to increase enrollment next year to 500. It's costing us a fortune. What 14 yo wouldn't want to attend a school with no schedule, lots of couches to lounge around on, and no deadlines? A very tiny percentage of students will actually be successful without any structure, but hundreds are racing to sign up. Our district is denying the school's request to expand, and the local paper is outraged, taking the school's side.

Meanwhile, we're losing money, and there's no evidence that the majority of these students will earn a diploma.
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madfloridian Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-17-10 12:19 AM
Response to Original message
25. Screening out those with academic challenges.
"February 2010: In Albany, New York, Albany Preparatory Charter School has been accused of screening potential pupils to weed out those with academic challenges according to an investigation and scathing report released by the State University of New York's Charter Schools Institute."
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rpannier Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Apr-18-10 02:11 AM
Response to Original message
30. Thank You
Another great find on your part

It's appaling. More so that it is bring pushed by a Democratic Administration
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:32 PM
Response to Original message
31. +1
.
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fascisthunter Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:52 PM
Response to Original message
34. here's another Kick (nt)
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Nikki Stone1 Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-20-10 05:56 PM
Response to Reply #34
36. Cool
:thumbsup:
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