Pilfering Privatizers Seek Profit Amid Pandemic

This article on school privatization efforts in Tennessee originally appeared in The Progressive.

What’s the cure for COVID-19 in schools? Charter schools, of course!

Budget cuts on the horizon because of the economic damage caused by weeks of stay-at-home orders? Sounds like your districts need more charter schools.

Concerned about what the 2020-21 school year might look like?

Charter. Schools.

When it comes to public schools, Tennessee’s answer to the COVID-19 pandemic has been clear and simple: Privatization. 

First, in mid-March, Governor Bill Lee chose to include millions of dollars for a new voucher scheme in his emergency budget before the legislature left Nashville due to the coronavirus. How’d he pay for it? By cutting a planned investment in teacher compensation.

Now, as Tennessee’s two largest school districts, Memphis and Nashville, face significant budget shortfalls for the upcoming school year, the possibility of the state forcing unwanted charter schools on them looms large. These new charters would eat up valuable district resources at a time when funding is scarce. They also will come in the two districts where the state’s “Education Savings Account” voucher scheme will pilfer public dollars for privatizers.

In 2019, the newly-minted governor pushed for and won approval of a State Charter School Commission. This new body will have broad authority to grant charters to schools—even those schools denied a charter by local school districts. If the state body approved a charter school, the commission would manage the school, but the funding for that school would come from the local district.

In other words, whether or not Nashville or Memphis want more charter schools, the Charter Commission can approve and locate a charter in any district in the state without the approval or consent of the local board—then mandate that the local board spend funds to support it. 


Fast forward to May 2020. 

Right now, Education Secretary Betsy DeVos is pushing a scheme whereby states can acquire additional federal stimulus funds for education if they agree to advance a school privatization agenda. 

Enter the Tennessee Charter School Commission. While Nashville and Memphis have taken a cautious approach to charter school approval in recent years, the Charter Commission, stacked with Governor Lee’s handpicked privatization proponents, seems primed to put charters where they aren’t wanted. 

Obligating districts to fund charters would also divert money that they need to provide resources for students if a second wave of COVID-19 wreaks havoc this fall. Nashville is already staring down a $100 million budget shortfall for education, and Memphis is considering a tax increase just to maintain its school system. 

How much of a financial bite will new charter schools take from these struggling districts?

That’s hard to calculate exactly. But in 2014, a study conducted by independent research firm MGT of America predicted that “new charter schools will, with nearly 100 percent certainty, have a negative fiscal impact” on Nashville’s school district. MGT calculated a price tag that could exceed $300 million in direct costs to the city’s public schools over a five-year period.

A more recent study in North Carolina found that the financial burden of adding charter schools to one urban county school district, Durham, was between $500 and $700 per student. In rural districts in the state with fewer charters, the impact was less negative but still significant—up to $300 per student.


Added to the estimated cost of charter schools in Tennessee is a whole new disaster: a voucher scheme. Though this program was ruled unconstitutional by a judge on May 5 (and will no longer start next year, as initially planned), it revealed the true aims of education reformers in the state. 

By forcing charters on cash-strapped districts, DeVos and Lee are using the chaos caused by COVID-19 to advance a privatization agenda. Something similar happened when public schools were hollowed out in New Orleans, post-Katrina.  

DeVos, in a statement on May 4, put it diplomatically: 

“The current disruption to the normal model is reaffirming something I have said for years. We must rethink education to better the realities of the twenty-first century. This is the time for local education leaders to unleash their creativity and ingenuity.”

Lee, a longtime financial supporter of DeVos, recently made the same point, in language that’s just as mystifying. “The Department of Education has a clear directive to challenge the status quo by developing solutions that best advocate for students and teachers,” Lee said. 

The COVID-19 crisis has created new opportunities for profit-seeking privatizers to prey on public education. We must continue shining a light on those working to undermine public schools, so that we can continue fighting for the public good. 

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

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TN PTA Applauds Voucher Ruling

A statement from the Tennessee Parent Teacher Association on last week’s court ruling that killed (for now) Gov. Bill Lee’s voucher program:

Tennessee PTA was excited to hear that Davidson County Chancellor Anne C.
Martin declared the Educational Savings Account statute unconstitutional. We were disappointed in Governor Lee’s funding cuts to education while maintaining $40 million for the ESA program in the most recent budget and request legislators reevaluate the needs of our public schools during this challenging time and move the funding for the ESA program back to the public schools.

The Tennessee Parent Teacher Association (PTA) stands in opposition to any form of voucher programs. Tennessee PTA believes our elected leaders must provide all Tennessee children with access to a quality public education. Public schools provide education to 90% of our country’s students and voucher programs such as this educational savings account program undermine our public schools by diverting desperately needed resources away from the public school system. Tennessee PTA recognizes that changes need to be made within the public schools to provide an equitable and excellent educational opportunity for every child. Vouchers, educational savings accounts, and other similar options do not provide the means for bringing about improvements in our public schools. Voucher programs have often proven ineffective in
improving student outcomes, lack accountability to taxpayers and students, create inequality, and place the individual rights of students at risk.

Kim Henderson
Tennessee PTA President

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Nobody Wants Vouchers

Tennessee’s school voucher program may end up being the ultimate solution in search of a problem as Chalkbeat reports few families are actually applying for the scheme.

Fewer than 300 applications appear to be on track for approval for 5,000 spots in the first year of Tennessee’s school voucher program, while a Nashville judge said she’ll rule by next week whether to allow the program to launch under two legal challenges.

As of Wednesday night, education department data showed 291 completed applications were still active, while 189 have been denied since the state began accepting them in late March.

So, in spite of aggressive marketing for the program, it seems that parents may not actually want vouchers.

What’s most disappointing about this reality is that Gov. Bill Lee slashed a planned investment in teacher compensation in order to fully-fund his voucher scheme. Now, school systems across the state will see less BEP funding while money sits waiting to be used for a voucher program no one wants.

Oh, and the private company managing the voucher scheme for $2.5 million? Yeah, they’re still getting paid.

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Charters or Teachers

Nashville school board member Amy Frogge distills the debate about whether to approve new charter school applications during the COVID-19 pandemic down to a simple choice:

“We have a limited pool of funds,” said Nashville board member Amy Frogge, a charter school critic who plans to vote to deny the district’s five applications. “We can choose to pay our teachers or open more charter seats.”

Chalkbeat has more on how Memphis and Nashville are looking at the charter expansion debate in the current fiscal climate.

Meanwhile, Gov. Bill Lee has presented consecutive state budget proposals doubling a charter school slush fund.

While Lee’s emergency “coronavirus” budget ultimately slashed the slush fund this year, he wasted no time in directing millions to his favorite privatization scheme, vouchers. He did this while cutting a planned investment in teacher compensation in half.

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What We Always Knew

A story out of Maury County highlights the education disparities we all know about. It also makes clear the problem of inequality is societal and systemic. It’s something we can conveniently ignore when school is in session because we know then all the kids are being fed and watched and loved. We aren’t forced to see the impacts of wage stagnation, wealth consolidation, and a lack of access to health care.

Here’s more from the Columbia Daily Herald:

“It took this crisis to realize that we are working on two very different dynamics in our districts,” Jennifer Enk, president of the education association, told members of the Maury County Board of Education during an online board meeting this month. “Going forward, this is something that our state and our local [district] really has to look at.”

She said the ongoing stay-at-home order has shown that students’ access to the internet and the devices to access it dramatically differs across the county.

After encouraging the school district to continue offering stipends to local educators who prepare work packets for students, Enk recommends incoming funds from the federal government be used to “equal the playing field” for the county’s students.

Maury County Superintendent of Schools Chris Marczak previously told The Daily Herald that in the northern portion of the county, in the surrounding Spring Hill area, about 10% of the school district’s students live in a home without internet. In Columbia, the county seat located in the center of the region, 24% of the school districts students don’t have internet at home.

It’s not just internet access, of course. There are wide disparities in access housing, food, and health care. A report published last year noted:


High concentrations of poverty, not racial segregation, entirely account for the racial achievement gap in U.S. schools, a new study finds.


The research, released Monday, looked at the achievement gap between white students, who tend to have higher scores, and black and Hispanic students, who tend to have lower scores. Researchers with Stanford University wanted to know whether those gaps are driven by widespread segregation in schools or something else.


They found that the gaps were “completely accounted for” by poverty, with students in high-poverty schools performing worse than those from schools with children from wealthier families.

So, while policymakers create plans focused on how much time kids are in school buildings and how to ensure they get to take tests, the real problems remain ignored.

Meanwhile, privatizing predators are on the prowl, ready to use the COVID-19 pandemic to open the doors to MORE taxpayer resources with little oversight or accountability.

Instead of trying to line the pockets of wealthy edu-profiteers, Tennessee policymakers should move forward with solutions that address the underlying challenges:

Addressing poverty would mean providing access to jobs that pay a living wage as well as ensuring every Tennessean had access to health care. Our state leads the nation in number of people working at the minimum wage. We lead the nation in medical bankruptcies. We continue to refuse Medicaid expansion and most of our elected leaders at the federal level are resisting the push for Medicare for All.

Yes, COVID-19 has highlighted inequality in our schools and beyond. It’s also highlighted the willingness of our top policymakers to simply walk by on the other side while their neighbors suffer.

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CLOSED

Today, Gov. Bill Lee called on all Tennessee school districts to close for the remainder of this school year. Here’s a statement from the Tennessee Education Association on the issue:

“The coronavirus pandemic has already negatively impacted students, educators and communities, and will continue to do so for some time. Educators are as eager as parents for school to resume, but every decision on how and when to reopen classrooms must consider health, safety and well-being first.

Following Gov. Bill Lee’s announcement today, it is now time to look toward the 2020-2021 school year. The prolonged break in classroom instruction has disrupted student learning and will cause serious challenges for students and educators when school resumes. As the professionals who work with students most closely, Tennessee educators must have significant input in the planning and implementation of efforts to overcome learning loss.

There is no better place for Tennessee students than public schools, and every educator from the bus driver and cafeteria worker to the counselor and school nurse will be needed to support students. Use of federal emergency funds must first prioritize the ability to reopen public schools for the 2020-2021 school year.”

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Coronavirus and School Funding in Nashville

$100 million. That’s how much the already struggling Nashville school district is being asked to cut in the wake of the economic challenges created by the COVID-19 outbreak. The Tennessean has more:

Mayor John Cooper has asked Nashville schools to explore ways to potentially cut up to $100 million from its current budget as the coronavirus continues to take a toll on the city’s revenue collections.

As non-essential businesses remain closed and Nashville residents are spending less time outside, city officials are forecasting a $200 million to $300 million shortfall in expected taxes and other revenue for the current fiscal year. 

The potential budget cuts come even as Gov. Bill Lee insisted on $41 million in state funding for his voucher scheme while cutting funds sent to districts for teacher compensation.

Teachers in Nashville already lag behind those in other districts when it comes to pay.

It’s not clear where MNPS will find room for cuts, but based on past actions, it seems likely some savings would be realized by moving more students to virtual schools. It also seems likely entire programs could be reduced or eliminated.

This difficult climate is happening in a state that clearly has yet to learn the lessons of the Great Recession. Tennessee is at least $1.7 billion behind where it should be to adequately fund schools, according to a report from the bipartisan legislative study group known as TACIR.

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A Lesson Not Learned

In a post at the Washington Post, Derek Black warns that investment in public education must not be denied in light of the COVID-19 pandemic and coming economic impacts.

Some notes:


During the Great Recession of the late 2000s, Congress hoped that most of a $54 billion set-aside in stimulus funds would be enough to save public school budgets, which had been savaged by state and local governments. It wasn’t enough.


States imposed education cuts so steep that many school budgets still have not fully rebounded — and Congress’s 2020 stimulus bill aimed at trying to save the economy from a new calamity fails to address the possibility of a sequel. Meanwhile, even before the economic effects of the current crisis caused by the coronavirus pandemic are being fully felt, states are already looking to cut education funding.


If states cut public education with the same reckless abandon this time as last, the harm will be untold. A teaching profession that has spent the last two years protesting shamefully low salaries may simply break. The number quitting the profession altogether will further skyrocket — and it’s not likely there will be anyone to take their place.


The first signs of this possibility are here. In recent weeks, three states — Florida, Georgia, and Tennessee — have cut teacher salary increases for this coming year — increases intended at this late date to begin repairing the damage from the last recession. Education Week reports that teachers may lose all of an anticipated pay hike in Kentucky, and legislatures in at least five other states have not acted on salary hikes for educators.

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Black notes that Tennessee is among the states not learning the lesson of the Great Recession. It’s worth noting that Tennessee’s teachers already earn less in inflation-adjusted dollars than they did all the way back in 2009.


Between FY 2016 and FY 2020, lawmakers enacted a total of $429 million in recurring increases for teacher pay. Since that time, growth in Tennessee teachers’ average pay has begun to catch up with inflation. After adjusting for inflation, however, teachers’ average pay during the 2018-2019 school year was still about 4.4% lower than a decade earlier.

So, the response to the coronavirus by Gov. Bill Lee and the General Assembly was to cut a planned investment in teacher compensation and instead fund a voucher scheme.

When (if?) the General Assembly returns in June, it will be interesting to see if commitments are made about investments in public education going forward. Tennessee is already $1.7 billion behind where we should be in school funding.

Perhaps the crisis caused by coronavirus will give lawmakers time to actually conduct a comprehensive review of our school funding formula and make necessary adjustments and improvements.

Alternatively, as Black suggests, lawmakers may look to “save money” by moving to cheaper, less reliable online learning options while foregoing investment in teachers and the resources students need.

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Byrd is Back

Admitted child sex offender David Byrd, who serves in the Tennessee House of Representatives, has indicated he will seek re-election to his seat in 2020. The announcement comes despite earlier claims by Byrd that he would not seek re-election AND after Gov. Bill Lee reportedly asked Byrd not to run.

Here’s a summary of what TNEdReport has noted about Byrd in recent years:

Casada Cozies Up to Byrd


Last year, former House Speaker Beth Harwell was calling on state representative David Byrd to resign amid allegations he had improper sexual relationships with high school students he had coached. Now, new House Speaker Glen Casada has appointed Byrd to Chair the House Education Administration Subcommittee.

No One on Byrd’s Subcommittee Would Challenge Him


At yesterday’s meeting, Byrd asked each committee member to introduce himself (the committee is made up of seven men) and state an interesting fact.


Each member proceeded to attempt humor. Not a single member used the opportunity to call on Byrd to resign from his committee leadership post. Instead, they acted as if having an admitted sex offender at the helm of a legislative committee was just business as usual.

Voucher Vote Nails Byrd


David Byrd is out as chair of a House Education subcommittee just one day after his vote against Governor Bill Lee’s school voucher plan. While some had speculated Byrd might vote in favor of vouchers in exchange for cover from Lee, Byrd voted NO on Lee’s plan yesterday in the full House Education Committee.

Weak Lee


Governor Bill Lee failed to call on admitted sex offender and state Rep. David Byrd to step down from his leadership post on an education subcommittee following a meeting between Lee and one of Byrd’s accusers. However, Lee’s henchman, House Speaker Glen Casada, removed Byrd from his leadership post following Byrd’s vote in opposition to Lee’s school voucher scheme.

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Voucher Scheme Goes Live

After receiving support from a mail campaign paid for by the voucher vultures at American Federation for Children, Gov. Bill Lee’s scheme to divert public money to private schools is now accepting applications.

The website is now live and includes an illuminating FAQ.


What is the ESA program?
The ESA program allows eligible students who are zoned to attend a Shelby County district school, a Metro Nashville public school, or a school that was in the Achievement School District (ASD) on May 24, 2019, to use state and local money toward education expenses, including tuition and/or fees at approved private schools.

This is true. The ESA program (vouchers) diverts taxpayer money to private schools by way of a platform administered by ClassWallet. ClassWallet, of course, is the company that “won” a no-bid state contract worth millions of dollars.


How can ESA funds be used?
Funds in an ESA may only be used for educational purposes. This includes:
Tuition or fees at a participating school
Required school uniforms at a participating school
Required textbooks at a participating school
Tuition and fees for approved summer education programs and specialized after-school education programs
Tutoring services provided by an individual who meets department requirements.
Tuition and fees at an eligible postsecondary institution
Transportation to and from a participating school or education provider by taxi or bus service
Textbooks required by an eligible postsecondary institution
Fees for early postsecondary opportunity courses, exams, or exams related to college admission
Educational therapies or services for participating students provided by a department-approved therapist
Computer hardware, technological devices, or other department-approved technology fees. (This is applicable only if the technology is used for educational needs, is purchased at or below fair market value, and is purchased through a participating school, private school, or provider.)

The broad guidelines for use of voucher funds make the program susceptible to fraud, as the Daily Memphian reports has happened in other jurisdictions:


Reports from across the nation show situations in which private-school officials and parents spent voucher money for items unrelated to education. Cards were used at beauty supply stores, sporting good shops and for computer tech support, in addition to trying to withdraw cash, which was not allowed.

Can an ESA be used for a participating private school outside of Shelby or Davidson County?

Yes, while your student must be zoned for a Shelby County district school, a Metro Nashville public school, or a school in the Achievement School District, the ESA may be used for an out-of-county participating private school.

So, the voucher scheme is taking money from cash-strapped Shelby and Davidson counties and diverting it to private schools in neighboring districts.

Oh, and let’s be clear: Lee insisted that vouchers be funded in his emergency coronavirus budget — and did so at the expense of an investment in public schools.

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