Teachers stiffed

Detroit charter school teachers get tough news: Their school was in debt so they won’t get paid

PHOTO: Erin Einhorn
Matchbook Learning CEO Sajan George sent a letter to teachers from Michigan Technical Academy on Monday saying there may be ways to make sure they get paid for work performed during the school year.

Furious teachers at a recently shuttered Detroit charter school were notified Wednesday that they won’t be paid thousands of dollars they earned during the last school year.

Teachers at the Michigan Technical Academy had contracts that required the school to pay them through the summer for work they did during the school year. But the school’s management company, Matchbook Learning, alerted teachers in an email Wednesday that the money would instead go to pay off the school’s debts.

“Last Friday, Matchbook Learning became aware that the holders of MTA’s outstanding bond debt are refusing to allow use of funds for any summer payroll and instead, are requiring that any available funds be used toward payment of the bond debt,” Matchbook’s CEO Sajan George told teachers in the email. “We are disappointed and deeply saddened by this development because this means funds will not be there for July or August payroll.”

The school, which Chalkbeat wrote about last fall, closed its doors forever last month when Central Michigan University revoked the school’s charter citing academic and financial difficulties.

The school was one seven Detroit area charter schools that closed this year including five that had been overseen by Central Michigan.

Matchbook Learning, which had been running the school since 2015, had a contract with the school’s board that expired on June 30, George wrote in the email to teachers.

“Matchbook Learning never received and does not expect to receive any funds from the MTA Board, CMU or the bondholders to fund payment of any July or August payroll — meaning Matchbook Learning is not in a position to make payment to you,” George wrote. “Unfortunately, the closing of MTA has had a severe effect on everyone involved. We thank you for your time at MTA, sympathize and empathize with your position, and wish you the best in your future endeavors.”

George told Chalkbeat that his New Jersey-based school management organization, a non-profit, hasn’t been paid by the school’s board since February due to lack of funds. Matchbook is owed what he characterized as “a couple hundred thousand dollars.”

He said he knew Matchbook wouldn’t be paid for the last few months of the school year but that the organization stayed until the last day of class in June.

“If we left, the employees wouldn’t get paid and the school would shut down,” George said.

He said Matchbook asked the school board to approve payments that would enable the teachers to get paid in July and August. The board knew it would receive payments from the state in July and August and authorized a portion of that money to go toward paying teachers. But the bondholders are priority creditors, meaning they get paid first. The bondholders have refused to allow money to go to the teachers, George said. 

“Ultimately it wasn’t in our control,” he said.

The school borrowed about $16 million for building improvements when it first opened and only about $1 million had been paid off when the school closed last month, George said. Had the school stayed open, it would have continued to receive money from the state that could have been used to make payments on the debt. Without money coming in, the creditors moved to collect as much as they could. 

Angry teachers say they’re contacting lawyers in hopes of trying to collect what they’re owed.

“That’s money that we’ve all worked for,” said Maeve Rochon, a kindergarten teacher who said she’s owed around $5,000. “That’s for time we spent in those kids’ lives, doing our jobs. We all stuck it out to the end and now you’re telling us the money we worked for, we’re not going to get?”

Janelle Brzezinski, a spokeswoman for the Governor John Engler Center for Charter Schools at Central Michigan University, said there’s not much the university can do to help the teachers.

“Some creditors of Michigan Technical Academy have ordered an acceleration of payments due on Academy loans,” Brzezinski wrote in an e-mailed statement. “The acceleration of payments means that the Academy received no funds from the scheduled July 20, 2017 state school aid payment sent by the state of Michigan. The Academy board and the Center had been working with the Michigan Department of Education and Michigan Department of Treasury officials to ensure continued flow of state aid through July and August to allow the Academy to meet payroll and other outstanding obligations. Unfortunately, the decision of the creditors to accelerate payments under the Academy loans means that there will not be sufficient funds for the Academy to process the July 31, 2017 scheduled payroll and there may not be sufficient funds to meet the August payrolls.”

Brzezinski encouraged teachers to contact Matchbook or the Wage and Hour Division of the Michigan Department of Licensing and Regulatory Affairs.

charter wars

Another weapon for charters in their war with the Detroit school district: A new ‘parent’ group that will lobby on behalf of charter schools

PHOTO: Detroit Voice for School Choice
Parents at the GEE Edmonson Academy in Midtown, Detroit, showing support for SB 574.

In the escalating battle over charter schools in Detroit, a local advocacy group is gearing up for an offensive that includes a new weapon: the support and involvement of charter school parents.

The recently formed group, Detroit Voice for School Choice, is planning to recruit, educate and train charter school parents to help advocate for charter-friendly legislation in Lansing and generally push back against what they see as unfair criticism of the independently managed schools.

Detroit Voice for School Choice is in itself a powerhouse of educators and advocates committed to seeing more public money funneled to charters. Pro-district forces argue that sending more tax dollars to charters means less money for Detroit’s district schools. Many of Detroit’s schools, both district and charter, suffer from low test scores and criticism over their effectiveness.  

Members of the group are pulled from some of the largest and most highly respected charter school networks in Detroit, including the leaders of the University Prep Schools and the Cornerstone Schools and New Paradigm for Education schools. New Paradigm runs prominent schools like the Detroit Edison Public School Academy.   

In late November, the group unveiled its parent engagement strategy, which begins with educating parents at partnered charter schools on issues relevant to supporting and expanding the role of charters in the city.

The group’s chairman, Mark Ornstein, who heads the seven-school University Prep network, described it as a “grassroot effort” based in Detroit that is working on the local level for many of the same issues that are also being addressed by a statewide advocacy group, the Michigan Association of Public School Academies, or MAPSA.

He said Detroit Voice was given $300,000 in seed money by private, pro-charter funders that he declined to identify, though he did specify that no funding is coming from the billionaire philanthropist and pro-charter advocate Betsy DeVos, who now serves as President Trump’s education secretary.

Ornstein said Detroit Voice “has to be in Detroit to really do this work” — a point underscored by Moneak Parker, executive director of Detroit Voice and so far the group’s only staff member.

“Detroit parents are our main focus,” Parker said.

The creation of the group is part of a larger nationwide trend: charter advocacy groups, funded by wealthy donors, that are working to reshape entire school districts. In Denver, New Orleans and Indianapolis, advocacy groups have dramatically shifted enrollment from traditional public schools to charters.

Detroit already has one of the largest charter school enrollments in the nation, with more than half of its roughly 100,000 students attending charters in the city and surrounding suburbs. The charter movement has strong advocates across the state, notably from a powerful political organization called Great Lakes Education Project, which was founded by DeVos.

But charters have taken a public relations beating in Detroit in recent years, notably during DeVos’ confirmation hearing when critics linked the poor quality of schools in Detroit to pro-charter laws that were pushed in Michigan by DeVos and her Great Lakes Education Project.

Detroit charters are also facing new challenges as district Superintendent Nikolai Vitti recently seized upon criticism of charters in his public vow to “put them out of his business.”

“In the context of Michigan, choice has been disastrous because it has not had guardrails,” Vitti said at a forum in October. “We should not be allowing schools to open as if they’re corner gas stations, hoping that they do well for children.”  

Ornstein said an “anti-choice sentiment” had fostered a climate that required charters to unite to push back. “This is the first time various charters organizations have come together to work together,” he said.

Dan Quisenberry, the president of MAPSA, said the state-level group will collaborate and support the new Detroit-centric group.

“I look forward to giving them information on what is happening in Lansing,” he said. “We’re collaborating. They’re brand new and we support parents, so I look forward to seeing how this develops.”

The group’s first call to action was to gain parent support on Senate Bill 574, which would allow charter schools to receive funding from a millage currently given only to district public school students. Opponents of the bill say it would take money away from district schools already feeling squeezed by what they see as a lack of funding.

As the group gets off the ground, parents will continue to be a large part of its strategy. Already Parker, the group’s executive director, has been visiting Charter Management Organization partner schools and providing workshops on education reform once a month. Parents who show interest are invited to attend six weeks of training to become a fellow.

The fellows will assist Parker in organizing and rallying other parents. Those who complete the training will be paid an annual stipend of “a couple of hundred dollars,” Ornstein said, with the exact amount still to be determined.

“Working with so many different [charter school managers] and charters, we wanted to work in a manner that’s efficient, and utilizing parents who know the school environment and their specific type of campus, it’s important to not have just a cold call, you’re taking advantage of very active parents,” Ornstein said.

David Hecker, president of the AFT, the local teachers union, said he is in favor of empowering parents, no matter their point of view. “If parents want to get together and advocate for schools they think are best, then more power to them,” Hecker said. “I just hope it’s a real parent-led organization, not a charter management-led organization. Whether we agree or disagree, more power to them.”

The group is now looking for additional funding to continue expanding.

“We are a very lean meat organization; there’s not a huge amount of overhead at this point,” Ornstein said. Nevertheless, he said, “There will be the need to look for outside, additional funding. We’ll see where we go in terms of money. If we do the right thing, money will follow.”.

The board of Detroit Voice for School Choice includes:  Ornstein; Ralph Bland, CEO, New Paradigm for Education; Renee Burgess, CEO, Equity Education; Reid Gough, CEO, Cornerstone Education Group; Raymond Smith, vice president, Innovative Teaching Solutions; Kyle Smitley, executive director, Detroit Achievement Academy; and Marwaan Issa, senior executive, Global Educational Excellence.

Marwaan Issa and Ralph Bland are members of both Detroit Voice and the Michigan Association of Public School Academies.

School deserts

New study shows just how hard it is to find a decent public school in Detroit — especially in 10 city neighborhoods

An alarming new study shows just how difficult it is to find a quality school in the city of Detroit — especially for families that live in certain neighborhoods.

The study from the nonprofit research organization IFF identified ten city neighborhoods where it’s extremely difficult to find a seat in a quality school.

Those neighborhoods are home to 30,000 children, but had just eight “performing” schools. The study defined them using the color-coded school ratings that state education officials assigned for the 2015-16 school year based primarily on test scores.  

That doesn’t mean Detroit doesn’t have enough schools. In fact, the study found that many of the city’s schools are half empty. The main Detroit district had physical space for more than  80,000 students in the 2015-16 school year but served fewer than 45,000 kids that year.

Some Detroit families travel long distances — at great personal sacrifice — to find better schools but even families with the means to travel can have difficulty finding a spot in a decent school.

The study found that the vast majority of Detroit children — 70,000 of the 85,000 Detroit children who attend public school in the city — are in schools that don’t meet the state’s criteria for performance.

“This report is not about criticizing our public schools without offering a path forward,” said Chris Uhl, IFF’s executive director in a press release. The purpose, he said, “is to give everyone with a stake in improving Detroit’s education system — the district, charter schools and their authorizers, the city, foundations, and, of course, our families — the neighborhood-by-neighborhood data they need to work together to find shared solutions.”

The study includes an online tool that allows Detroiters to see which neighborhoods have performing schools as well as the conditions of those schools, and the basic demographics of the students who attend them.

Click here to use that tool — and scroll down to read the full report below.