what's public?

Private managers of public schools, charter leaders enjoy extra buffer from public-records laws

PHOTO: Monica Disare
Eva Moskowitz, Success Academy Charter Schools CEO.

When Success Academy officials read the news last month that board chair Daniel Loeb had made a racially charged comment about a New York State senator, what did they do next?

Did Success CEO Eva Moskowitz frantically email confidantes about the incident? Did her team craft a new policy on board member conduct?

It turns out, we may never know.

That’s in part because emails sent by Moskowitz and other leaders of New York City’s largest charter network which oversees 46 public schools and 15,500 students are not subject to the same public-records laws as district school officials, such as Chancellor Carmen Fariña.

Moskowitz and officials at other charter school networks are generally exempt from the law because they don’t work for individual schools or city agencies, both of which are required to hand over certain records to members of the public who request them. Instead, they are employed by nonprofit groups called charter management organizations, or CMOs, which aren’t covered by the state records law.

“Success Academy Charter Schools, Inc. (SACS) is a private nonprofit organization that provides services to charter schools, but it is not itself a charter school or a government agency under FOIL,” wrote Success Academy lawyer Robert Dunn in response to an appeal of a Chalkbeat request for Moskowitz’s emails under the state’s Freedom of Information Law, which the network had denied. “Thus, it is not in and of itself subject to FOIL or required to have an appeal process.”

In addition, Success officials said the emails would not need to be released because they qualify as internal communications that are exempt from the public-records law.

The city’s most prominent charter school networks — including KIPP and Uncommon — have similar CMO structures, which appears to shield their leaders from at least some FOIL requests. While “the KIPP NYC public charter schools themselves are subject to the New York Freedom of Information Law,” KIPP spokesperson Steve Mancini said in an email, the “CMOs are not.”

But some government-transparency advocates argue that the law is not so clear cut.

Because CMOs are so heavily involved in the operation of public schools, it could be argued that the vast majority of their records are kept on behalf of public schools and should be public, said Bob Freeman, executive director of the Committee on Open Government and an expert on public-records laws.

Even though nonprofits aren’t covered by FOIL, he said, “Everything you do for an entity that is subject to FOIL — everything you prepare, transmit, and receive — falls within the scope of FOIL.”

Success Academy officials emphasized that the network does not categorically deny public-records requests involving its management organization. For instance, it may hand over CMO records related to the daily operation of its schools, the officials said. The network decides on a case-by-case basis which CMO records are public and which are not, they added.

“We follow the same policies as all other charter management organizations,” said Nicole Sizemore, a Success Academy spokeswoman.

Uncommon Schools spokeswoman Barbara Martinez said that their individual schools are subject to public-records requests and the nonprofit CMO releases budget information on its public tax forms.

“Uncommon Schools is a non-profit organization that follows all local, state and federal laws regarding disclosure,” she said in a statement.

However, because public-records laws mainly apply to government agencies and institutions, it is likely that some important communications related to charter schools — such as charter officials’ emails to real-estate companies, for example and detailed financial records related to their CMOs would be off limits to the public.

The issue of charter management transparency flared up in Connecticut a few years ago.

After the state accused a CMO of nepotism and financial mismanagement of its charter schools, the Hartford Courant requested CMO records under the state’s Freedom of Information law. The CMO refused to hand them over, saying, “We are not a public agency.”

In response, state lawmakers proposed a law to increase CMO transparency and subject them to public-records laws. After charter advocates decried the law as overly broad, lawmakers amended it and the law was passed. (A similar bill was recently introduced in the California legislature but did not pass.)

Similar scandals involving CMOs could happen elsewhere, said Wendy Lecker, an attorney at the Education Law Center. During the debate in Connecticut, she called for making all CMO records public.

“Something done on behalf of a school should be subject to transparency and Freedom of Information laws,” she said. “I don’t see why they’d want to shield the public from that.”

A large number of charter schools are run by charter management organizations. In 2015, about 55 percent of New York City charter schools were managed by CMOs, according to the National Alliance for Public Charter Schools.

The nonprofits help their schools hire, pay, and train staff; analyze data; and handle advertising and public relations, according to a report by the NAPCS. The report notes that these organizations are distinct from textbook companies or other vendors that schools contract with because CMOs “have considerable influence over the instructional design and operations of their affiliated charter schools.”

The nonprofit structure has enabled networks to open new schools more easily, including ones in multiple districts and states, said James Merriman, CEO of the New York City Charter School Center.

Even if New York’s public-records laws applied to CMOs, that would not guarantee that all their records would be accessible or easy to obtain.

New York City’s education department, for instance, is notorious for dragging its feet on FOIL requests. And some information is also exempt from the public-records law.

For instance, opinions or recommendations from within an agency or from outside consultants are exempt from public disclosure. Success’ lawyer argued that even if the network’s executives were subject to public information requests, Moskowitz’s emails to or about Loeb would fall under this “inter-agency” communication exception.

However, government agencies would still have to supply the requested emails, just with the exempted information redacted, said Allan Blutstein, the public-records advisor for the political opposition research group America Rising. Even redacted emails can provide a wealth of information, Blutstein said, since simply seeing when the emails were sent, who they were sent to, and how many were exchanged provides insights into how the organization responded.

“You may not get his or her personal opinion back and forth, but there’s value in knowing how soon they reacted, how soon they’re responding to other people,” Blutstein said. “You can make these types of inferences and learn a lot.”

In addition, institutions that are subject to FOIL must hand over more detailed budget information than nonprofits typically disclose, Blutstein said. While nonprofits are required to release general information, like how much they spend on supplies or training, public institutions must hand over almost every record, he said.

IPS School Board Race 2018

Indiana teachers union spends big on Indianapolis Public Schools in election

PHOTO: Dylan Peers McCoy/Chalkbeat
IPS board candidate signs

The political arm of Indiana’s largest teachers union is spending big on the Indianapolis Public Schools board. The group donated $68,400 to three candidates vying for seats on the board this November, according to pre-election campaign finance disclosures released Friday.

The three candidates — Susan Collins, Michele Lorbieski, and Taria Slack — have all expressed criticism of the current board and the leadership of Superintendent Lewis Ferebee. Although that criticism touches on many issues, one particular bone of contention is the district’s embrace of innovation schools, independent campuses that are run by charter or nonprofit operators but remain under the district’s umbrella. Teachers at those schools are employed by the school operators, so they cannot join the union.

The trio was also endorsed by the IPS Community Coalition, a local group that has received funding from a national teachers union.

It’s not unusual for teachers unions to spend on school board elections. In 2016, the union contributed $15,000 to an unsuccessful at-large candidate for the Indianapolis Public Schools board. But $68,400 dwarfs that contribution. Those disclosures do not capture the full spending on the election. The three candidates endorsed by Stand for Children Indiana — Mary Ann Sullivan, Dorene Rodríguez Hoops, and Evan Hawkins — are likely getting significant unreported benefits.

Stand for Children, which supports innovation schools, typically sends mailers and hires campaign workers to support the candidates it endorses. But it is not required to disclose all of its political activity because it is an independent expenditure committee, also known as a 501(c)(4), for the tax code section that covers it. The group did not immediately respond to a request for information on how much it is spending on this race.

The candidates’ fundraising varied widely in the reporting period, which covered the period from April 14 to Oct. 12, with Taria Slack bringing in $28,950 and Joanna Krumel raising $200. In recent years, candidates have been raising significantly more money than had been common. But one recent candidate managed to win on a shoestring: Elizabeth Gore won an at-large seat in 2016 after raising about $1,200.

Read more: See candidates’ answers to a Chalkbeat survey

One part of Stand for Children’s spending became visible this year when it gave directly to tax campaigns. The group contributed $188,842 to the campaign for two tax referendums to raise money for Indianapolis Public Schools. That includes a $100,000 donation that was announced in August and about $88,842 worth of in-kind contributions such as mailers. The group has a team of campaign workers who have been going door-to-door for months.

The district is seeking to persuade voters to support two tax increases. One would raise $220 million for operating funds, such as teacher salaries, over eight years. A second measure would raise $52 million for building improvements. Donations from Stand for Children largely power the Vote Yes for IPS campaign, which raised a total of $201,717. The Indiana teachers union also contributed $5,000.

Here are the details on how much each candidate has raised and some of the notable contributions:

At large

Incumbent Mary Ann Sullivan, a former Democrat state lawmaker, raised $7,054. Her largest contribution came from the Indy Chamber Business Advocacy Committee, which donated $4,670. She also received $1,000 from Steel House, a metal warehouse run by businessman Reid Litwack. She also received several donations of $250 or less.

Retired Indianapolis Public Schools teacher Susan Collins, who is one of the candidates supported by the union, raised $16,422. The Indiana Political Action Committee for Education contributed $15,000. She also received several donations of $200 or less.

Ceramics studio owner and Indianapolis Public Schools parent Joanna Krumel raised $200. Her largest contribution, $100, came from James W. Hill.

District 3

Marian University Executive Director of Facilities and Procurement and Indianapolis Public Schools parent Evan Hawkins raised $22,037. His largest contributions from individuals were from businessmen Allan Hubbard, who donated $5,000, and Litwack, who donated $2,500. The Indy Chamber Business Advocacy Committee contributed $4,670 and web design valued at $330. He also received several donations of $1,000 or less. His donors included IPS board member Venita Moore, retiring IPS board member Kelly Bentley’s campaign, and the CEO of The Mind Trust, Brandon Brown.

Frost Brown Todd trial attorney and Indianapolis Public Schools parent Michele Lorbieski, who is one of the candidates supported by the union, raised $27,345. The Indiana Political Action Committee for Education contributed $24,900. She also received several contributions of $250 or less.

Pike Township schools Director of Information Services Sherry Shelton raised $1,763, primarily from money she contributed. David Green contributed $116.

District 5

Incumbent Dorene Rodríguez Hoops, an Indianapolis Public Schools parent, raised $16,006. Her largest contributors include Hubbard, who donated $5,000; the Indy Chamber Business Advocacy Committee, which gave $4,670 and web design valued at $330; and the MIBOR PAC, which contributed $1,000. She also received several contributions of $500 or less, including from Bentley.

Federal employee and Indianapolis Public Schools parent Taria Slack, who is one of the candidates supported by the union, raised $28,950. The Indiana Political Action Committee for Education contributed $28,500.

Innovation zone

Two more Denver schools win additional freedom from district rules

PHOTO: J. Zubrzycki/Chalkbeat
Alex Magaña, then principal at Grant Beacon Middle School, greeted students as they moved between classes in 2015.

Two more Denver schools this week won more flexibility in how they spend their money and time. The schools will create a new “innovation zone,” bringing the district’s number of quasi-autonomous zones to three.

The Denver school board on Thursday unanimously approved the schools’ application to operate more independently from district rules, starting in January.

The new zone will include Grant Beacon Middle School in south Denver and Kepner Beacon Middle School in southwest Denver. The two schools are high-performing by the district’s standards and follow a model that allows students to learn at their own pace.

With just two schools, the zone will be the district’s smallest, though Beacon leaders have signaled their intent to compete to open a third school in the growing Stapleton neighborhood, where the district has said it will need more capacity. The district’s other two innovation zones have four and five schools each.

Schools in zones are still district schools, but they can opt out of paying for certain district services and instead spend that money on things that meet their specific needs, such as additional teachers or aides. Zones can also form nonprofit organizations with their own boards of directors that provide academic and operational oversight, and help raise extra dollars to support the schools.

The new zone, called the Beacon Schools Network Innovation Zone, will have a five-member board of directors that includes one current parent, two former parents, and two community members whose professional work is related to education.

The zone will also have a teacher council and a parent council that will provide feedback to its board but whose members won’t be able to vote on decisions.

Some Denver school board members questioned the makeup of the zone’s board.

“I’m wondering about what kinds of steps you’re going to take to ensure there is a greater representation of people who live and reside in southwest Denver,” where Kepner Beacon is located, asked school board member Angela Cobián, who represents the region. She also asked about a greater representation of current parents on the board.

Alex Magaña, who serves as executive principal over the Beacon schools and will lead the new zone, said he expects the board to expand to seven members within a year. He also said the parent council will play a key role even if its members can’t vote.

“The parent council is a strong influence,” he said. “If the parent council is not happy, that’s going to be impacting both of the schools. I don’t want to undersell that.”

Other Denver school board members questioned the zone’s finances and how dependent it would be on fundraising. A district summary of the zone’s application notes that the zone’s budget relies on $1.68 million in foundation revenue over the next 5½ years.

Magaña said the zone would eventually seek to expand to four schools, which would make it more financially stable. As for philanthropic dollars, he said the zone would work to ensure any loss of revenue doesn’t hurt the schools’ unique programs or enrichment.

“I can’t emphasize enough that it won’t impact the schools,” he said.

Ultimately, Denver school board members said they have confidence in the Beacon model and look forward to seeing what its leaders do with their increased autonomy.