Attorney General Marc Dann deserves some BSB love

I'll admit it.  I wasn't a big fan of Marc Dann's candidacy in 2006.  I, like a majority of posters here, supported Subdoh Chandra, and I admit that I didn't warm up to Dann much during the campaign.  I rarely wrote about him until a week or so before the election when it appeared that Dann might pull up an upset.  I've since said that Dann's upset victory in 2006 was the most underreported political story in Ohio.

Marc Dann has been hitting the ground hard the last couple of days, and he deserves alot of credit for what he's been trying to do.

Today, Attorney General Marc Dann's office, on behalf of the Ohio Department of Education, froze the assets of a charter school that suddenly closed last month due to financial difficulties.  From the AG's office press release:

Attorney General Marc Dann, the Ohio Department of Education, and The Richland Academy of the Arts filed a complaint today asking the judge to appoint a receiver to secure the assets and recover any property wrongfully taken from Harte Crossroads High School. The plaintiffs are also seeking a temporary restraining order and a preliminary injunction to immediately freeze all assets of the charter school.

“We are filing this complaint to preserve and recover the public funds and property involved so that the employees, creditors, and tax payers’ interests are protected,” said Attorney General Dann. “The goal is to see that the public property and funds involved are allocated according to law.”

Harte Crossroads closed in mid-March citing alleged financial trouble. Charter schools are funded with state and federal tax dollars. Their assets are public property and it appears that funds from state and federal agencies, as well as property entrusted to Harte, may have been mismanaged and misappropriated. Furthermore, employees have not been paid and their health insurance has lapsed because of apparent negligence.

“We appreciate the Attorney General working on our behalf,” said Todd Hanes, executive director of ODE’s Office of Community Schools. “We want to ensure these funds are protected and used appropriately— including paying owed compensation and retirement contributions for the school’s teachers.”

This is not the kind of oversight and accountability of charter schools that Ohio had under Republican rule.  It's yet another example of the reckless charter school system in Ohio that requires the moratorium announced by Governor Strickland until accountability issues with charter schools are better addressed.

It's also nice to see a statewide elected official Ohio view public assets as something that should be protected and not doled out to political contributors like Halloween candy.

AG Dann has also been out front on the mortgage crisis in Ohio by filing litigation accusing New Century Financial of violating Ohio's Consumer Sales Practices Act, Mortgage Loan Act, and Ohio's Mortgage Brokers Act.  Dann's office is suing New Century Financial for potentially engaging in predatory lending.  As a result of his office's litigation, New Century, which filed for bankruptcy yesterday, has agreed to a preliminary injunction to prevent the company for foreclosing on any mortgage it has issued in Ohio until Dann's office can review it for predatory lending violations. 

New Century, as the NY Times article points out, was the nation's largest independent subprime mortgage lender, and seems to have the same irrational exuberance and upper management excess that Enron, MCI, and other companies so famously had just five years ago.

Not a bad record for the first three months in office, and a welcome change for the apathetic, apologitic approach Ohio's had in the Attorney General's office for the prior 16 years. 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Some background on Harte Crossroads, the charter school at issue

According to this Columbus Dispatch article, the Ohio Department of Education claims that the district may owe the state money, in part, because "it paid for more students than actually attended Harte Crossroads Academy and Harte Crossroads High School."  The district is, at least $1.6 million in debt.  However:

"That’s just the debt that officials say they know about, that they gleaned from documents crammed in desk drawers, stuffed in boxes and buried in piles of unopened mail. Richland officials say the best bookkeeping they’ve found is duplicate checks tossed into a cardboard box."

That's a charter school program that in three years used $5 million in state and federal money.  Money that could have gone to public schools with public auditing and local elected officials to be held accountable for the management of the school district.

"It’s hard to defend a school that lasted less than three years and spent $5 million in state and federal money," said Terry Ryan, vice president for Ohio programs and policy for the Thomas B. Fordham Foundation in Dayton. The group oversees several charter schools.

And where did that money go?  According to one former student:

"They didn’t have everything situated. We had no teachers. The computers didn’t work," he said.

And the founder of the school, Anita Nelam, who was fired when new management took over the district?  Why, she's a campaign donor to charter school advocate Speaker Husted.

And the lesson proves that Governor Strickland is correct, for-profit companies should not be permitted to manage charter schools.  What happened as a result of using a for-profit management company as a last ditch effort to save the school year?

From the Columbus Dispatch:

Nelam blamed the schools? demise on Richland and a management company its schools use, saying they took their fees even as Harte Crossroads was failing financially.

The management company, Innovative Learning Solutions, took 20 percent of the schools? revenue in return for fiscal, recordkeeping and other services, and Richland took another 3 percent.

"If they had helped us when we asked them ...," Nelam said yesterday. "It did not have to come to this."

Cooper said problems stemmed from the prior administration?s over-reporting of the number of students. Nelam had said there were about 250 students from kindergarten through 12 th grade before she announced the closure; the schools had 190 students yesterday.

So the for-profit companies was taking 23% of the schools incoming revenues to pay itself while teachers and staff went all month without pay.  All to keep a charter school which had been "over-reporting" (i.e. fraudulent lying in order to obtain state taxpayer money it didn't deserve) the number of students it had by possible as many as sixty non-existing students.

Something else to love him for

Good catch....

I hate GONGWER, though.

More Anita Nelam goodness

Apparently, she was the Vice-Chair of the National Alliance for Public Charter Schools and ironically quoted as saying:

"We must redouble our efforts to remove barriers designed to distract us from our mission of providing high- quality education," said Anita Nelam, founder of Harte Crossroads Public Schools in Columbus, Ohio, who serves as Vice-Chair of the National Alliance for Public Charter Schools. "Laws that limit our independence, or deprive our students of needed resources, must be changed."

This was in support of a report by a taskforce of the National Alliance for Public Charter Schools which advocated:

"The Taskforce urges state legislatures and advocates to revisit charter laws to make sure they provide . . . freedom from regulatory burdens and clarity about oversight responsibilities."

Freedom like the kind of financial accountability public schools are required to have?!?

44 Computers reported "missing" from the charter school

Deleted duplicate comment

Deleted duplicated comment...sorry.

For biographical information on Ms. Anita Nelam

Yep, she the VP for Communication & Organizational Development for the Ohio Charter School Association, too.

This is not simply someone who got into charter schools to make money.  This is one of the leading advocates for the charter school movement in Ohio, a frequent critic of public schools, and someone who was permitted, due to an utter lack of state oversight leave over 100 students who are currently enrolled in no school with incomplete transcripts before they were to graduate.

In other news, apparently there is some question about the academic performance of the students at this charter school as well.  According to a Columbus Dispatch article in 2005 about the school:

Results of the sixth-grade tests, released last week, appear dismal. Among the boys, no one passed the citizenship, math or reading portions. The girls did better, although writing is the only subject in which more than 26 percent of the students passed. In writing, 65 percent of the girls were judged at least proficient.

Well, she was the VP in the Ohio Charter School Association, until it went broke, too.

According to this cached story, she never graduated college, filed for bankruptcy in 1990, and has been called by the president of the charter-school advocacy group Thomas B. Fordham Foundation in D.C., Chester Finn, Jr. "a major player" on the national charter school scene.

How did a person with no college degree and a prior bankruptcy be permitted to receiving millions of dollars in taxpayers money to open a charter school?

Harte Crossroads

should be a case study on how NOT to craft a charter school legislative scheme. Husted and his republican buddies at the trough of charter political donations are directly responsible for this reprehensible waste of public money. However, the real victims in this crime are the students that were completely shortchanged from receiving a thorough and efficient education. We owe these kids better than this. B/T/W, great post(s) on this topic Modern.

Charter School Oversight

Of course, the other question that one might ask is where is the Ohio Department of Education in all this? ODE is specifically charged with overseeing Charter schools. But they never have. Could it be that placing charter schools under the "operations" division of the Department, a department that is headed by a charter proponent, was by design to prevent oversight. Keep turning over the rocks, there is a lot to find. Doc Wood

Go to the kids, the parents

If you want the best lede and the best story, find the kids and the parents and hear from them - pros, cons and what their lives have been like since the closing - has the state helped them in anyway, what has the local district done to help them, what has the charter done to help them and so on. That's the real story and why this kind of failure matters - because we're failing ourselves when we allow the system to fail these kids, whatever system they're in.

Taking a break from charters

and back to Dann for a second. Like ME, I wasn't impressed until the last few weeks of his campaign. Kudos for proving me terribly wrong.

And in the short time he's been in office, Dann has showed himself to be an advocate for Ohioans. Maybe part of that is Chandra's influence, maybe not. Either way, Dann's approach is welcome.

Tom Winters

Not to take away from Dann himself, lottsa credit has to go to his selection of his #1, Tom Winters, who have the state govt. savvy & experience that Dann lacks and has an excellent, intimate knowledge of arcane process, procedure, history of all things aroun Capitol Square for nearly 40 years.  His political skills are superb.

 

All that said, how come no one's talking about Dann's letter to Strickland about PUCO!!!