Indiana online schools

Charter advocacy group ranks Indiana’s law No. 1, but calls for greater virtual school accountability

For the third year in a row, Indiana was recognized by a leading charter school advocacy group for having the nation’s strongest charter school law, but the state was cited for failing to take action to properly regulate online charter schools.

The National Alliance for Public Charter Schools has ranked Indiana No. 1 since 2016 based on how well state law corresponds with the Alliance’s model law. Specifically, Indiana is praised for not capping charter schools’ growth and for directing more money to charter schools to make up funding gaps compared to traditional schools. The state was lauded for its “remarkable growth and development” in charter schools since they started in 2001.

The high rating by the group, whose purpose is to promote and support charter school growth, is the latest indication of Indiana’s commitment to allowing outside groups develop and run public schools independent of school districts. Such pro-charter policies have been supported for years by Republican legislators and governors.

But even in its praise for the state’s pro-charter policies, the group found fault with Indiana’s oversight of virtual schools. The group called on the state to raise the bar for online charter schools, which have had a track record of abysmal performance not just in Indiana, but across the nation.

Indiana has yet to include most of the Alliance’s recommendations regarding full-time virtual schools in state law. The Alliance’s report says Indiana law includes a “small number” of the Alliance’s virtual school provisions, but it still has work to do in “strengthening accountability for full-time virtual charter schools.”

Indiana is not alone — no states include all of the online charter school provisions recommended by the Alliance, and many were called out for failing to include any at all. Although the Alliance advocates for increasing charter schools across the country, it also emphasizes school quality.

In a recent report, the Alliance outlined policies to help regulate virtual schools. They include setting maximum enrollment levels for virtual schools and not allowing them to exceed that enrollment in subsequent years unless they could prove students were learning. States are also encouraged to create a performance-based funding system, where schools get money based on what students achieve, not on whether they are enrolled. Both ideas have received initial support from Indiana lawmakers and policymakers.

The 2018 alliance ranking follows a Chalkbeat investigation identifying low performance at Indiana Virtual School and questionable business and spending practices. Despite Indiana Virtual’s F grades and subpar graduation rate, the state continues to allocate millions of dollars to it. In September, Indiana Virtual opened a second school. Almost every online charter school in Indiana received an F grade in 2017, and like Indiana Virtual, several others have also recently opened additional schools.

Special Report: As students signed up, online school hired barely any teachers — but founder’s company charged it millions

Earlier this month, two state senators introduced bills to tighten charter school oversight laws and prevent poor performing schools from multiplying, but no hearings have been scheduled yet. Gov. Eric Holcomb, a Republican, has committed to working with the state board to look into virtual schools in Indiana, but details of his policy plans are not yet clear.

Learn more about Indiana Virtual School and online charters in the state here.

Indiana online schools

Indiana lawmakers aren’t cracking down on virtual charter schools despite calls for change

PHOTO: Shaina Cavazos
A Hoosier Academy Virtual teacher keeps track of answers during a math review game.

Indiana lawmakers have killed three attempts to tighten the state’s charter school authorizing laws, even after Gov. Eric Holcomb called for improved accountability of troubled online charter schools.

A Chalkbeat investigation of Indiana Virtual School last year revealed how state law doesn’t go far enough to hold operators and authorizers of online charter schools accountable. The probe found that Indiana Virtual posted dismal academic results, hired few teachers, and had spending and business practices that raised ethical questions.

Special report: As students signed up, online school hired barely any teachers — but founder’s company charged it millions

But with proposals to tighten regulations facing pushback from influential education advocates, Republican lawmakers — many of whom benefit from online schools’ lobbying and campaign contributions — say there’s little interest in making changes.

“I’m surprised myself,” said Sen. Dennis Kruse, the Republican Senate Education Committee chairman who authored one of the charter school bills. “People from all different walks of life had concerns about different parts of the bill. Nobody came to me and said, ‘This is a great bill, go ahead and proceed with the bill.’”

Still, Holcomb is taking other steps to strengthen virtual charter school policy. With the Indiana State Board of Education, Holcomb’s team has been collecting information on best practices in virtual schools across the country.

PJ McGrew, the governor’s education policy director, said he hopes to have a plan to revise virtual school policies for the state board to consider in the spring. It could take about a year for the board to change that policy if they decide to move forward.

Lawmakers’ hesitation isn’t really surprising: Indiana has made sweeping changes to expand school choice, and Republican leaders have seldom supported laws that would restrict choice — even when issues are raised.

Rep. Bob Behning, the chairman of the influential House Education Committee who has long advocated for charter schools and new school models, said he doesn’t want to “jump into something, making a judgment, without knowing what the answers are.”

He also pointed out that it isn’t always clear how the state should hold schools accountable in practice because education law can be difficult to enforce: “There is no education police.”

“I definitely see there are some alarms that we need to be focused on and alerted to,” Behning said. “But there are similar alarms in traditional public schools going off all over the place as well. That’s the place I think we do struggle with. At what point in time is it appropriate for us to intervene?”

None of the bills proposed by lawmakers this year dealt directly with virtual schools, applying instead to charter schools as a whole. And none of them received any hearings.

Kruse’s proposal, Senate Bill 350, would have effectively prevented struggling online charter schools — or any charter school — from easily replicating. It would have stopped an authorizer from offering a new charter to an existing organizer unless its current students are achieving academically.

Three of Indiana’s largest online charter schools, including Indiana Virtual School, have recently opened second schools, which could help them stay in business if their first schools get shut down after years of poor performance

Two other proposals from Democrats, Senate Bills 315 and 406, went much further in dictating the results charter schools must show to enroll new students and open new schools.

Sen. Mark Stoops, a Bloomington Democrat who proposed Senate Bill 315, said for his caucus, examining whether charter schools need more regulation and oversight has been a recurring priority.

“It isn’t a difficult question,” he said. “It just needs to be done.”

But lawmakers would be up against the charter school movement’s money and influence.

Indiana lawmakers, including Behning and Kruse, have seen campaign contributions from online education companies. K12 Inc., one of the largest online education providers in the country, has given more than $90,000 to Indiana Republican races since 2006, according to the state campaign contribution database. Connections, another large national provider, has given more than $20,000.

Those online providers, who operate five online charter schools in Indiana, also have spent tens of thousands of dollars each year for the last decade lobbying lawmakers.

Indiana Virtual School has also recently started lobbying lawmakers in Indiana. Tom Stoughton, the founder of Indiana Virtual School, was listed as a registered lobbyist for the school in January, even as school officials say he has distanced himself from the school. Stoughton’s involvement with the school’s for-profit management company has raised ethical questions.

In the first filing period for 2017, Indiana Virtual School spent almost $12,000 on lobbying, according to data from the Indiana Lobby Registration Commission. In 2016, IVS spent a little more than $13,300.

Prominent charter school advocates can wield influence outside of lobbying, too. They have said they fear more prescriptive laws could hem in successful schools and authorizers, even though they have agreed that virtual schools, specifically, need more attention and oversight.

“Specific rules written to restrict the decisions of authorizers will not transform bad authorizers into high-quality authorizers,” David Harris, CEO of The Mind Trust, told Chalkbeat in January.

The National Association for Charter School Authorizers recommends that states consider virtual-specific policies, such as completion-based funding, making enrollment more selective, or even making them a different kind of non-charter school so enrollment and governance can be more controlled.

Indiana falls short when it comes to virtual school regulation, according to the association’s most recent report, even as the state is praised for having the strongest charter school laws in the nation. For the third year in a row, the group ranked Indiana No. 1.

Mike Petrilli, executive director of the Fordham Foundation, a conservative think tank that supports access to charter schools, has spoken in favor of making virtual schools a separate school type.

“We’ve got to turn this on its head,” Petrilli said. “It would be hard to do it within the general charter school rules which say you’ve got to take everybody … What we have learned is the charter school model and online learning are not a good fit for each other.”

Indiana online schools

Indiana Virtual School has the lowest graduation rate of any public school in the state

PHOTO: Shaina Cavazos
Indiana Virtual School is located in the Parkwood office park at 96th St. and College Ave near the northern edge of Marion County.

For the second year in a row, Indiana Virtual School graduated a lower percentage of students than almost every other high school in the state.

In 2017, 6.5 percent of students graduated — 64 students out of 985. Of the schools the state provided data for, only a private school that caters to students with significant intellectual and behavioral disabilities posted lower numbers. Indiana Virtual’s rate is up slightly from 5.7 percent the year before.

It’s possible there are other schools with lower graduation rates, but the state does not release data for schools with fewer than 10 students in the graduating class to comply with federal privacy laws.

The graduation data, released this week by the Indiana Department of Education, comes months after a Chalkbeat investigation found widespread low performance at Indiana Virtual School and questionable business and spending practices.

Special Report: As students signed up, online school hired barely any teachers — but founder’s company charged it millions

From 2016 to 2017, the school’s graduating class more than doubled. Last May, Indiana Virtual School enrolled nearly 4,700 students. Despite Indiana Virtual’s poor performance, it continues to bring in millions of dollars from the state. In September, it opened a second school. After shifting almost 3,000 of its students to the new Indiana Virtual Pathways Academy in the fall, Indiana Virtual had 3,376 students.

Indiana Virtual has received two failing grades from the state since it opened in 2011. Last year, 20 percent of sixth-, seventh-, and eighth-grade students and 8 percent of 10th-graders at Indiana Virtual passed the English and math state tests. Statewide, about half of students in grades K-8 and one-third of high school students passed both exams.

Thomas Burroughs, the school’s lawyer and former board member, defended the school’s performance to Chalkbeat in October, saying the school offers a last chance to students who would have no other way to graduate. The school’s superintendent, Percy Clark, also said many students at the school enroll after having been expelled elsewhere and start behind their peers.

Across the state, 87.2 percent of students graduated from high school in 2017. The rate is calculated by dividing the number of students in a high school cohort by the number of them who graduate as seniors after four years.

Every online charter school in Indiana graduated fewer students than the state as a whole, though some, such as Indiana Connections Academy and Hoosier Academy Indianapolis, a hybrid school with a traditional campus on the city’s east side, show marked improvement from last year. Insight School of Indiana has no data for 2016 because it had not yet opened.

School 2017 graduation rate 2016 graduation rate
Indiana Virtual School 6.50% 5.7%
Hoosier Academy Indianapolis 68.42% 53.3%
Insight School of Indiana 17.21%
Hoosier Academy Virtual 23.32% 22.7%
Indiana Connections Academy 49.48% 43.9%

Although Gov. Eric Holcomb has already committed to working with the state board to look into online charter schools, he has not specified what action they will take. Earlier this month, lawmakers also proposed laws to tighten up the state’s rules for charter school oversight, but this soon in the legislative session, it’s hard to say how far such proposals will get.

Learn more about Indiana Virtual School and online charters in the state here.