Public education has been under assault recently. In Michigan, as in many states, funding for public education has been cut, forcing many districts to try to save money by outsourcing in any areas possible. Custodians, food service workers, and even substitute teachers are outsourced in many districts in the state. I have discovered another area where taxpayer money is being funneled into private corporations: on-line education.
In 2008, the Michigan Department of Education established the seat time waiver program. This allows school districts to enroll students but lifts the attendance requirement (seat time) for the students. Typically, these students would be granted seat waivers to take classes in an on-line environment. The district must offer a computer and a broadband connection for the student, but the school gets all of the foundation money from the state for that student (typically, $7,000) if the student is enrolled full-time.
One can understand how popular such a program would be for some families. It is essentially a free public education from the comfort of one's home. Unfortunately, many people do not realize that this type of program requires a curriculum, software, and certified teachers in order to work. None of this is free. This brings me to a company called Job Skill Technology, Inc. This company is a local Michigan company that works in partnership with a national company called K12 Inc. These companies provide the curriculum, software, and teachers to run these on-line programs.
This is where the for-profit part comes in. I have done some investigation into how much taxpayer money is being funneled into these for-profit companies. One Michigan school district, Hanover-Horton, has just entered into a three-year agreement with these two companies to provide on-line instruction for students there. They are paying $5,500 per full-time pupil. I'm sure that the two companies split the money, leaving about $1,500 left to the school district. Here is an article from the Jackson Patriot about this program.
What I would like to know is how many students in the state of Michigan are using the seat time waiver program? I tried to find out by searching the internet. I searched the Michigan Department of Education website. I contacted the Genesee County Intermediate School District that has been put in charge of coordinating all of the seat time waiver requests for the state. I e-mailed employees at the Michigan Department of Education. I did not get any information until I threatened to file a FOIA request and I cc'd the superintendent of Michigan schools, Mike Flanagan. I got my answer today. In 2009, 1,020 students were on seat waivers and in 2010, 2,727 students were on seat waivers.
If the state gives foundation money for each one of these students, that equals over 19 million dollars! If districts are paying approximately $5,500 for each full-time student to these companies, that is approximately 14 million dollars being taken from taxpayers and given to a for-profit company. The CEO of K12, Inc. reportedly made 2.6 million dollars last year!
This is the privatization of public schools. This program is only going to get bigger. In Michigan, Governor Snyder just "streamlined" the application process for the seat time waiver program. One can just see from the numbers how much the program has grown from 2009 to 2010. A school district is allowed to have up to 25% of its population on seat time waivers. School districts such as Grand Blanc are literally "selling" seat time waivers because they will get part of the foundation money and they don't really have to do anything (other than provide a computer and internet connection, if needed). In 2009, Grand Blanc had 65 students on seat waivers. Do the math to see how much revenue was generated. Schools should not be revenue generators!
As taxpayers and parents, we should be outraged! I am a public school teacher, and I am outraged that this type of thing is occurring right under our noses. Maybe I am alone in this? I wonder if parents knew where the foundation money (and how much) was going to for-profit companies, would they be as upset as I am? I have added a poll at the bottom, if you are so inclined.