From the New York Times
by Stephanie Saul
By almost every educational measure, the Agora Cyber Charter School is failing.
Nearly 60 percent of its students are behind grade level in math. Nearly 50 percent trail in reading. A third do not graduate on time. And hundreds of children, from kindergartners to seniors, withdraw within months after they enroll.
By Wall Street standards, though, Agora is a remarkable success that has helped enrich K12 Inc., the publicly traded company that manages the school. And the entire enterprise is paid for by taxpayers.
Agora is one of the largest in a portfolio of similar public schools across the country run by K12. Eight other for-profit companies also run online public elementary and high schools, enrolling a large chunk of the more than 200,000 full-time cyberpupils in the United States.
The pupils work from their homes, in some cases hundreds of miles from their teachers. There is no cafeteria, no gym and no playground. Teachers communicate with students by phone or in simulated classrooms on the Web. But while the notion of an online school evokes cutting-edge methods, much of the work is completed the old-fashioned way, with a pencil and paper while seated at a desk.
Kids mean money. Agora is expecting income of $72 million this school year, accounting for more than 10 percent of the total anticipated revenues of K12, the biggest player in the online-school business. The second-largest, Connections Education, with revenues estimated at $190 million, was bought this year by the education and publishing giant Pearson for $400 million.
The business taps into a formidable coalition of private groups and officials promoting nontraditional forms of public education. The growth of for-profit online schools, one of the more overtly commercial segments of the school choice movement, is rooted in the theory that corporate efficiencies combined with the Internet can revolutionize public education, offering high quality at reduced cost.
The New York Times has spent several months examining this idea, focusing on K12 Inc. A look at the company’s operations, based on interviews and a review of school finances and performance records, raises serious questions about whether K12 schools — and full-time online schools in general — benefit children or taxpayers, particularly as state education budgets are being slashed.
Instead, a portrait emerges of a company that tries to squeeze profits from public school dollars by raising enrollment, increasing teacher workload and lowering standards.
Current and former staff members of K12 Inc. schools say problems begin with intense recruitment efforts that fail to filter out students who are not suited for the program, which requires strong parental commitment and self-motivated students. Online schools typically are characterized by high rates of withdrawal.
Teachers have had to take on more and more students, relaxing rigor and achievement along the way, according to interviews. While teachers do not have the burden of a full day of classes, they field questions from families, monitor students’ progress and review and grade schoolwork. Complaints about low pay and high class loads — with some high school teachers managing more than 250 students — have prompted a unionization battle at Agora, which has offices in Wayne, Pa.
A look at a forthcoming study by researchers at Western Michigan University and the National Education Policy Center shows that only a third of K12’s schools achieved adequate yearly progress, the measurement mandated by federal No Child Left Behind legislation.
Some teachers at K12 schools said they felt pressured to pass students who did little work. Teachers have also questioned why some students who did no class work were allowed to remain on school rosters, potentially allowing the company to continue receiving public money for them. State auditors found that the K12-run Colorado Virtual Academy counted about 120 students for state reimbursement whose enrollment could not be verified or who did not meet Colorado residency requirements. Some had never logged in.
“What we’re talking about here is the financialization of public education,” said Alex Molnar, a research professor at the University of Colorado Boulder School of Education who is affiliated with the education policy center. “These folks are fundamentally trying to do to public education what the banks did with home mortgages.”
The online companies can tailor their programs by reducing curriculum and teachers. During a presentation at the Virginia legislature this year, a representative of Connections explained that its services were available at three price points per student:
Option A: $7,500, a student-teacher ratio of 35-40 to 1, and an average teacher salary of $45,000.
Option B: $6,500, a student-teacher ratio of 50 to 1, with less experienced teachers paid $40,000.
Option C: $4,800 and a student-teacher ratio of 60 to 1, as well as a narrower curriculum
Despite lower operating costs, the online companies collect nearly as much taxpayer money in some states as brick-and-mortar charter schools. In Pennsylvania, about 30,000 students are enrolled in online schools at an average cost of about $10,000 per student. The state auditor general, Jack Wagner, said that is double or more what it costs the companies to educate those children online.
“It’s extremely unfair for the taxpayer to be paying for additional expenses, such as advertising,” Mr. Wagner said. Much of the public money also goes toward lobbying state officials, an activity that Ronald J. Packard, chief executive of K12, has called a “core competency” of the company.
In all, for-profit educational management companies run 79 online schools around the country, according to the study by researchers at Western Michigan University.
Many educators believe there is a place for full-time virtual learning for children whose pace is extremely accelerated or those with behavioral or other issues, like teenage mothers who need to stay home with their babies. But for most children, particularly in the elementary grades, the school experience should not be replaced with online learning, they say.
“The early development of children requires lots of interaction with other children for purposes of socialization, developing collaboration and teamwork, and self-definition,” said Irving Hamer Jr., deputy superintendent of Memphis city schools.
In an interview at K12’s headquarters in Herndon, Va., Mr. Packard said, “We’re here to help children, and that is our overriding purpose and we want to do it as well and efficiently as possible.”
He acknowledged what he called a “degradation” in K12’s test scores, but he argued that they are an inaccurate measure because many students are already behind when they arrive. “The type of child now coming to an online school, 75 percent of those kids coming in are behind more than one grade level,” Mr. Packard said.
He said K12 continues to invest in its curriculum and has developed interventions, like a remedial math program, to help struggling students.
“Kids have been shackled to their brick-and-mortar school down the block for too long,” Mr. Packard has said repeatedly, adding that for the first time, every child, regardless of where he or she lives, has a choice.
Some educators are questioning its value. “It’s choice,” said Thomas L. Seidenberger, superintendent of the East Penn School District in Pennsylvania, which is outperforming Agora and other online schools its students attend. “What about a bad choice?’”
http://www.nytimes.com/2011/12/13/education/online-schools-score-better-on-wall-street-than-in-classrooms.html?_r=1
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