The Fine Print

Why charter operators exiting Tennessee’s turnaround district can walk away

PHOTO: Laura Faith Kebede
Each of the state-run Achievement School District charter operators have an agreement that allows them to close for any reason.

When two charter school operators announced plans to leave Tennessee’s turnaround district this spring, many people were surprised that they could break their 10-year agreements.

“How could any charter management company come into a community and up and decide we’re not going to play anymore?” asked Quincey Morris, a lifelong resident of North Memphis, home to two schools that abruptly lost their charter operator.

But in Memphis and across the nation, there’s nothing to stop charter operators from leaving, even when they promise to be there for a long time.

Contracts signed by both Gestalt Community Schools and KIPP contain no penalties for exiting the Achievement School District before agreements run out, according to documents obtained by Chalkbeat.

And by design, that’s not unusual in the charter sector. For better or worse, operators are given that autonomy, according to Dirk Tillotson, a lawyer and founder of a charter incubation organization in California.

“There hasn’t been much attention paid to closures in the law,” Tillotson said of charter laws nationwide. “The laws are more forward-looking than backward-looking when things might blow up.”

That lack of clarity has suddenly started to matter a lot in Memphis, where charter schools are struggling to attract enough students to stay viable. Both KIPP and Gestalt blame their impending pullouts on under-enrollment — a challenge faced by more than half of the 31 Memphis schools operated by the ASD.

But having enough students wasn’t the focus when the ASD began taking over low-performing schools in 2012 and recruiting charter operators to turn them around. The assumption was that charter schools would have too many students and not enough seats, especially if those schools were under new management.

And their contracts reflected that line of thinking. The paperwork detailed how enrollment lotteries should be conducted if space remained after locally zoned students had registered. There was no guidance on what should happen if a school didn’t meet its enrollment goals — only that it would face a review if operating at less than 95 percent of projected enrollment under its budget.

As for the prospect of closure, the agreements don’t specify acceptable reasons for a charter operator to terminate its contract. Should that happen, the contracts say merely that the ASD has the authority to step in and conduct the school’s business and affairs.

PHOTO: Caroline Bauman
Yetta Lewis, co-founder and CEO of Gestalt Community Schools, answers questions from parents and teachers during an October assembly at Humes Preparatory Academy Middle School.

The gaps in ASD’s charter agreements show how the state-run district was helpless to prevent Gestalt and KIPP from announcing last fall that they would back out of their contracts at the end of this school year. They also highlight the gaps in understanding by all parties of how the decreasing student population in Memphis would affect the ASD’s work. It’s expensive to turn around schools or open a new one in an area losing school-age students as impoverished families vacate; running them requires enough students and funding to provide necessary supports.

Katie Jones, a Memphis charter school principal and a former charter evaluator for the ASD, said none of this should have come as a surprise, though. She said the ASD should have been clear about expectations.

“There should be stipulations that say reasons why you can not pull out of a school… and under enrollment is one of them,” Jones wrote on Facebook.

But including early-exit penalties can have unintended consequences, said William Haft, a vice president with the National Association of Charter School Authorizers, which has worked with both the ASD and Shelby County Schools to improve charter oversight.

“If they’re walking away, if they’re withdrawing from this commitment, then they’ve probably got a good reason to doing it,” Haft said. “Do you then want to try and force them (to stay open)? … I would want to be careful about setting up that situation.”

Bobby S. White, the ASD’s chief of external affairs, said adding penalties for closures could deter charter operators from taking on an already risky and challenging task to turn around schools in the state’s bottom 5 percent. It also would discourage operators from making a good-faith effort to stay open, as Gestalt did at first by running a deficit, he said.

“It would be insensitive for us to ignore what they’ve been dealing with to the detriment of their finances,” White said, adding the ASD plans to scrutinize enrollment projections more closely. “We have to be sensitive to the realities that shaped operators not being able to sustain the work.”

Still, there’s more at stake with turnaround districts like the ASD, said Morris, a Klondike alumna who is now executive director of the Klondike Smokey City Community Development Corp.

Most charter schools are new starts, but the bulk of the ASD’s charters are in existing schools that have struggled for years. In wresting control of them from their local district, the ASD and its operators promised to bring innovation and breathe new life into those schools and neighborhoods.

“They made promises that they didn’t keep,” Morris said, “and they disrupted our educational pattern.”

real estate

Two of three Memphis school buildings left empty by state-run charters will get new life, including Raleigh-Egypt

PHOTO: Laura Faith Kebede
The former Raleigh Egypt Middle School is back to housing middle schoolers under Shelby County Schools, not the state-run Achievement School District and its operator, Memphis Scholars.

Shelby County Schools has reclaimed a Memphis school building that formerly housed a state-run charter school that just moved across town.

This week, the former campus of Raleigh-Egypt Middle School began housing middle schoolers under the local district in Memphis.

District leaders posted a video Wednesday on Facebook showing students returning to the building that last year housed a charter school managed by Memphis Scholars.

“They did not stay in the building, so now Shelby County Schools has that building again, and middle schoolers have their own space,” said Shari Jones Meeks, principal of Raleigh-Egypt High School, which added middle school grades last year.

“We’ve been here every day this week trying to get our classrooms ready,” added Anna Godwin, a middle school science teacher. “It’s awesome, a lot of space. The kids are going to feel right at home.”

The change brings the school full circle after a year-long tug-of-war over students and facilities with the state-run Achievement School District, which took control of Raleigh-Egypt Middle last summer because of chronic low performance.

After the takeover, the local district expanded grades next door at Raleigh-Egypt High School in an effort to retain students. It worked. This spring, the charter organization got the state’s permission to move its under-enrolled school 16 miles away, where Memphis Scholars already operates an elementary school under Tennessee’s turnaround district.

Even though middle schoolers are returning to their old building, Raleigh-Egypt High School will remain one school with grades 6-12 and one administration, according to Michelle Stuart, facility planning manager for the district.

It’s one of three buildings left empty in recent months by the ASD and its charter operators — a first for the state-run district. All properties have returned to the control of Shelby County Schools, and only one stood empty as the new school year began.

Former school Current use Location
Memphis Scholars Raleigh Egypt Middle Likely will house Shelby County Schools middle schoolers Raleigh Egypt
Gestalt Community Schools Klondike Elementary Partly occupied by Perea Preschool North Memphis
KIPP Memphis Collegiate Schools University Middle Vacant and for sale Whitehaven

Klondike Elementary was closed by the ASD when its operator, Gestalt Community Schools, decided to exit its two North Memphis schools because of low enrollment. The ASD approved Frayser Community Schools to step in as the new operator at Humes Middle, but couldn’t secure one for Klondike.

While Shelby County Schools has no plan to resurrect Klondike at this time, it will continue to lease space to Perea Preschool, a private Christian school that will serve more than 160 children in a building designed for more than 600. Perea also has applied to open an elementary charter school at Klondike under Shelby County Schools, though that application was initially denied.

On the opposite side of Memphis, the building formerly occupied as a middle school by charter operator KIPP will be listed for sale, according to Stuart.

The former Memphis City school building was leased to KIPP beginning in 2014 by Shelby County Schools. Last December, KIPP leaders decided to close it too, citing low enrollment and the school’s remote location.

Achievement School District

Tennessee’s turnaround district gets new leadership team for a new chapter

PHOTO: TN.gov
Malika Anderson became superintendent of the state-run Achievement School District in 2016 under the leadership of Gov. Bill Haslam.

Tennessee is bringing in some new blood to lead its turnaround district after cutting its workforce almost in half and repositioning the model as an intervention of last resort for the state’s chronically struggling schools.

While Malika Anderson remains as superintendent of the Achievement School District, she’ll have two lieutenants who are new to the ASD’s mostly charter-based turnaround district, as well as two others who have been part of the work in the years since its 2011 launch.

The hires stand in contrast to the original ASD leadership team, which was heavy with education reformers who came from outside of Tennessee or Memphis. And that’s intentional, Anderson said Friday as she announced the new lineup with Education Commissioner Candice McQueen.

“It is critical in this phase of the ASD that we are learning from the past … and have leaders who are deeply experienced in Tennessee,” Anderson said.

New to her inner circle as of Aug. 1 are:

Verna Ruffin
Chief academic officer

PHOTO: Submitted
Verna Ruffin

Duties: She’ll assume oversight of the district’s five direct-run schools in Memphis called Achievement Schools, a role previously filled by former executive director Tim Ware, who did not reapply. She’ll also promote collaboration across Achievement Schools and the ASD’s charter schools.

Last job: Superintendent of Jackson-Madison County School District since 2013

Her story: More than 30 years of experience in education as a teacher, principal, director of secondary curriculum, assistant superintendent and superintendent in Louisiana, Texas, Oklahoma and Tennessee. At Jackson-Madison County, Ruffin oversaw a diverse student body and implemented a K-3 literacy initiative to promote more rigorous standards.

Farae Wolfe
Executive director of operations

Duties: Human resources, technology and operations

Current job: Program director for the Community Youth Career Development Center in Cleveland, Miss.

Her story: Wolfe has been city manager and human resources director for Cleveland, Miss., where she led a health and wellness initiative that decreased employee absenteeism due to minor illness by 20 percent. Her work experience in education includes overseeing parent and community relations for a Mississippi school district, according to her LinkedIn profile.

Leaders continuing to work with the state turnaround team are:

Lisa Settle
Chief performance officer

PHOTO: Achievement Schools
Lisa Settle

Duties: She’ll oversee federal and state compliance for charter operators and direct-run schools.

Last job: Chief of schools for the direct-run Achievement Schools since June 2015

Her story: Settle was co-founder and principal of Cornerstone Prep-Lester Campus, the first charter school approved by the ASD in Memphis. She also has experience in writing and reviewing curriculum in her work with the state’s recent Standards Review Committee.

Bobby White
Executive director of external affairs

PHOTO: ASD
Bobby White

Duties: He’ll continue his work to bolster the ASD’s community relations, which was fractured by the state’s takeover of neighborhood schools in Memphis when he came aboard in April 2016.

Last job: ASD chief of external affairs

His story: A Memphis native, White previously served as chief of staff and senior adviser for Memphis and Shelby County Mayor A.C. Wharton, as well as a district director for former U.S. Rep. Harold Ford Jr.

A new team for a new era

The restructuring of the ASD and its leadership team comes after state officials decided to merge the ASD with support staff for its Achievement Schools. All 59 employees were invited in May to reapply for 30 jobs, some of which are still being filled.

The downsizing was necessary as the state ran out of money from the federal Race to the Top grant that jump-started the turnaround district in 2011 and has sustained most of its work while growing to 33 schools at its peak.

While the changes signal a new era for the state-run district, both McQueen and Gov. Bill Haslam have said they’re committed to keeping the ASD as Tennessee’s most intensive intervention when local and collaborative turnaround efforts fail, even as the initiative has had a mostly lackluster performance.

“Overall, this new structure will allow the ASD to move forward more efficiently,” McQueen said Friday, “and better positions the ASD to support the school improvement work we have outlined in our ESSA plan …”

In the next phase, school takeovers will not be as abrupt as the first ones that happened in Memphis in 2012, prompting angry protests from teachers and parents and outcry from local officials. Local districts will have three years to use their own turnaround methods before schools can be considered for takeover.

It’s uncertain where the ASD will expand next, but state officials have told Hamilton County leaders that it’s one of several options on the table for five low-performing schools in Chattanooga.