EXPOSED: Hillsdale Heist Would Drain $35 Million from Rural, Suburban School Districts

Analysis reveals Hillsdale scheme would devastate Tennessee school districts

A fiscal analysis released today from Public School Partners (a group I support and am a member of) reveals that if approved, Hillsdale College’s scheme to create charter schools in five Tennessee school districts (Madison, Maury, Montgomery, Robertson, Rutherford) would cost local taxpayers some $35 million when fully implemented.

Here’s more from Public School Partners:

Five proposed charter schools affiliated with controversial Michigan-based Hillsdale College would drain more than $17 million from Tennessee suburban and rural public schools during their first year of operation and roughly $35 million per year at maximum enrollment, according to a new fiscal analysis by Public School Partners (PSP) and Charter Fiscal Impact.

As a result, the five taxpayer-funded privately run charter schools would trigger steep increases in local school districts’ budgets — with costs passed along to county commissions and, ultimately, local taxpayers. Absent significant amounts of new tax revenue, public-school students and families could be hurt as districts grapple with fixed costs stranded in existing schools — including hard-to-adjust expenses such as staffing, maintenance, transportation, and utilities.

“No matter how you run the numbers, the financial math on charter schools just doesn’t add up for Tennessee students, parents, and taxpayers,” said Dr. Donna Wright, a PSP co-founder and retired superintendent of Wilson County Schools. “Privately run charter schools that aren’t accountable to elected local school boards significantly strain local budgets, which already are being stretched thin by inflation and other cost pressures.”


A PSP analysis found that the initial cost of the charter schools in each district (Clarksville-Montgomery County School System; Jackson-Madison County School System; Maury County Public Schools; Robertson County Schools; and Rutherford County Schools) would be around $3.5 million. That’s with a projected enrollment of 340 students in each location. At full enrollment, projected at 690 students, the cost per district moves to roughly $7 million. The total cost, then, is $35 million – a cost borne by local taxpayers.

MORE from PSP on the potential impact of Hillsdale charters in the state:

Legal opinions have found the Volunteer State’s charter law violates the Tennessee Constitution because it requires local school districts to divert public funds to charters without offsetting state subsidies to account for fixed costs stranded in public schools — which amount to unfunded mandates on local governments and taxpayers.

Fixed costs account for at least 40 percent of some school districts’ budgets. Nationwide, Moody’s Investors Service found that a growing number of school districts face “financial stress” due to fixed costs. In Nashville, an independent study found that charter schools would, “with nearly 100 percent certainty, have a negative fiscal impact” on the local school district’s budget.

“Over the past decade, the explosion of charter schools in Nashville siphoned funds from neighborhood schools and ultimately helped trigger a massive county-wide property tax increase,” said Kenneth Byrd, a PSP co-founder and parent of three children in Metro Nashville Public Schools. “While it’s unfortunate for Nashville that we were at the bleeding edge of school privatization in Tennessee, hopefully our experience can serve as a cautionary tale for suburban and rural districts that now face the same threat.”

Despite Hillsdale’s attempt to expand into suburban and rural Tennessee, public support for charter schools is eroding. Last year, outrage erupted after Nashville’s WTVF-TV aired video in which Hillsdale College President Larry Arnn denigrated public-school teachers as “trained in the dumbest parts of the dumbest colleges in the country.”

Meanwhile, Tennessee voters view traditional public schools more favorably than privately run charter schools. According to a statewide poll by the State Collaborative on Reforming Education (SCORE), 68 percent of voters view public schools favorably compared with only a 41 percent favorable rating for charters. Support for charters falls to 31 percent when voters are asked for their impression of so-called “classical” charter schools, such as those affiliated with Hillsdale.

Tennessee’s track record with charter schools is abysmal. For example, Vanderbilt University researchers found the state-run Achievement School District — one of the nation’s largest and most- controversial charter-school experiments — had “not produced positive effects” despite spending nearly $1 billion in state and local taxpayer money.

Tennessee’s charter-school law adds fiscal stress to a chronically underfunded education system. In 2022, Tennessee’s per-pupil funding level ranked 45th among 50 states and the District of Columbia — earning the state an ‘F’ grade from the Education Law Center. Similarly, the EdWeek Research Center gave Tennessee an ‘F’ in spending on public education.

crop man getting dollars from wallet
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For more on education politics and policy in Tennessee, follow @TNEdReport

Privatization Efforts Deferred – But Not Denied

Efforts to privatize Tennessee’s public schools were deferred today in a key House Committee.

The privatization push includes potential expansion of school vouchers into Knoxville and the other would open the doors for charter schools to operate in districts without first being subject to local review.

More from The Education Report:

This bill (HB433), as currently written, would expand the state’s school voucher program (known as Education Savings Accounts, or ESAs) to Chattanooga. Currently, the voucher scheme only applies to students in Memphis and Nashville.

It’s bad enough that some policymakers are ready to expand this privatization program to another Tennessee school district. However, what’s even more alarming is that Education Administration Committee Chair Mark White has filed an amendment to expand the program even further – this time into Knoxville.


As you might recall, I wrote about an amendment to the charter legislation that would:

  1. Create a scheme for allowing charter schools that serve homeschooled students
  2. Allow for the creation of residential/boarding schools that are charter schools

These new charters would also be able to bypass local school boards and apply directly to Bill Lee’s State Charter Commission for approval.

That would mean zero local input and zero local accountability – even though millions of local tax dollars would be spent supporting these charter schools.


It’s important to look at these pieces of legislation for what they are: A clear agenda.

Gov. Lee and his legislative allies want to privatize our public schools.

For more on education politics and policy in Tennessee, follow @TNEdReport

Why Not Make Teacher Starting Pay $60,000?

State’s revenue surplus stuffed under mattresses, teachers, schools left behind

As I read through Tennessee’s latest revenue update, I can’t help but think that state leaders are acting like a “broke dad” when all the evidence points to the opposite.

So far this year, Tennessee has taken in $1.2 billion MORE than was estimated.

On the low end, it seems likely that the state will have a $2 billion surplus THIS YEAR when all is said and done.

THIS KEEPS HAPPENING

As I noted in The Education Report, Tennessee has a “broke dad” mentality.

Let me put it this way: You’re a parent. You have a paid for house, two paid for cars, and enough money in the bank that you can NOT work for a year and still cover basic expenses.

Is that the time when you tell your family that you will all be moving into a car and sleeping in the parking lot of a nearby park?

On a range of issues – from the DCS crisis to third grade retention to teacher compensation, Tennessee policymakers are refusing to invest the revenue provided by taxpayers.

A recent report indicated that only 25% of Tennessee teachers earn $60,000 or more a year.

Here’s an idea: Make the starting pay for Tennessee’s teachers $60,000.

Do it THIS YEAR.

The state can afford it.

In fact, given the teacher shortage, the state really can’t afford not to do it.

Unless, that is, the state is hurtling toward full privatization of public schools and figures public K-12 teacher salaries won’t be the state’s worry soon.

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For more on education politics and policy in Tennessee, follow @TNEdReport

Some States Learn from Their Mistakes

Tennessee is NOT one of them

Tennessee has a third grade retention law that goes into effect THIS YEAR.

That means kids in third grade right now will be impacted. A lot of them.

What’s interesting is to see other states that have tried this sort of law – and then backed down.

The Education Report notes that Michigan has just repealed its third-grade retention law after seven years. Why? Because it doesn’t work!

Michigan’s legislature recently sent third grade retention repeal to the Governor.

Here’s how lawmakers explained that decision:

“Michigan isn’t the first state to try this,” Koleszar said. “We’ve seen it in other states and there’s zero data from any other states that suggests retention is the way to go. We’ve got enough data to know it’s not working.”

Here’s what else is interesting about the Michigan repeal:

“Let’s use that money for reading intervention specialists, for literacy coaches, after school programs, summer school programs, to tackle the issue that way, instead of being reactive and just holding them back in a punitive and punishing way,” said Rep. Nate Shannon, D-Sterling Heights.

The bill passed Tuesday repeals the retention aspect of the law, but retains other elements such as staffing recommendations, reading intervention services, and the use of evidence-based curricula and instructional material.

Hello? Tennessee??

For more on education politics and policy in Tennessee, follow @TNEdReport

Phil Knows the SCORE

Nashville investigative reporter exposes agenda of leading school privatization force

Phil Williams of Nashville’s NewsChannel5 is one reporter who is not afraid of a tough story.

This time, he’s following the path of a nonprofit group that raises millions of dollars a year and is associated with former U.S. Senator Bill Frist.

The group: Tennessee SCORE – SCORE stands for Statewide Collaborative for Reforming Education.

Williams is on the story of how SCORE is aggressively promoting the expansion of charter schools as the panacea for the state’s education woes.

Never mind that SCORE has been driving the state’s education agenda for more than a decade.

Williams notes that education advocates are warning about SCORE’s plan – supported by Gov. Bill Lee – to bring at least 50 new charter schools to the state in the next 5 years.

And not just in Nashville and Memphis, where charters are already an alarming part of the landscape.

This plan would create charter schools in suburban and rural districts.

It’s similar to a scheme being advanced by Michigan-based Hillsdale College to open at least 50 Christian Nationalist charters in the state.

As Williams notes in a follow-up piece, charters don’t always have the best record of academic achievement. In fact, in many cases, charter schools perform worse than the district schools where they operate.

Maybe that’s why SCORE is moving quickly to help the privately run, publicly funded schools game the state’s new funding formula – TISA.

And just a reminder – SCORE takes in tons of money every year and advances an agenda that seeks to undermine the state’s public schools:

Jeffrey F. Lin/Unsplash

For more on education politics and policy in Tennessee, follow @TNEdReport