State charter schools program is 'out of control' - junk bonds, insider fees...

[Hannah Bell]

Minnesota's charter school movement, which sparked a national rethinking of public schooling nearly two decades ago, has been infected by an out-of-control financing system fueled by junk bonds, insider fees and lax oversight.

State law prohibits charter schools from owning property, but consultants have found a legal loophole, allowing proponents to use millions of dollars in public money to build schools even though the properties remain in the hands of private nonprofit corporations.

The key to making it all work is the state's lease aid program, which was created 11 years ago to help spur competition in public education by offering rental assistance to groups promoting alternatives to district schools. In the beginning, many charters were located in dumpy strip malls and received no real-estate grants.

But the once-obscure program has snowballed into one of the fastest growing expenses in the state, with building projects receiving little of the vetting that typically accompanies other public works. One school project was being led by a convicted sex offender until this month, when the Star Tribune exposed his past.

http://www.startribune.com/local/75464082.html

[MichiganVote]

1. Wake up people,,,this IS the future of the Race To The Top baloney.

[LWolf]

2. This is what Obama/Duncan see as the best future of public education. nt

[Hannah Bell]

3. kik

[fascisthunter]

4. kick (nt)

[donco6]

5. How are they getting around GASB standards?

Governmental Accounting Standards would forbid investing in junk bonds.

[Hannah Bell]

6. charters don't have to follow all that useless red tape. they're "public schools" but

not really.