Nontraditional K-12 Schools in Michigan - PDF

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ch C ouncil Research Council Citizens Resear of Michigan Nontraditional K-12 Schools in Michigan September 2010 Repor t 364 Repor ort Rep CELEBR ATING 94 YEARS OF INDEPENDENT, NONP AR TISAN ELEBRA ONPAR
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ch C ouncil Research Council Citizens Resear of Michigan Nontraditional K-12 Schools in Michigan September 2010 Repor t 364 Repor ort Rep CELEBR ATING 94 YEARS OF INDEPENDENT, NONP AR TISAN ELEBRA ONPAR ARTISAN PUBLIC POLIC Y RESEARCH IN MICHIGAN OLICY Board of Directors Chairman Vice Chairman Treasurer Eugene A. Gargaro, Jr. Jeffrey D. Bergeron Nick A. Khouri Joseph R. Angileri Deloitte. Jeffrey D. Bergeron Ernst & Young LLP Michael G. Bickers PNC Financial Services Group Beth Chappell Detroit Economic Club Rick DiBartolomeo Terence M. Donnelly Dickinson Wright PLLC Randall W. Eberts W. E. Upjohn Institute David O. Egner Hudson-Webber Foundation Laura Fournier Compuware Advisory Director Eugene A. Gargaro, Jr. Manoogian Foundation John J. Gasparovic BorgWarner Inc. Ingrid A. Gregg Earhart Foundation Marybeth S. Howe Wells Fargo Bank Nick A. Khouri DTE Energy Company Daniel T. Lis Kelly Services, Inc. Sarah L. McClelland JPMorgan Chase & Co. Aleksandra A. Miziolek Dykema Gossett PLLC Cathleen H. Nash Citizens Republic Bancorp, Inc. Paul R. Obermeyer Comerica Incorporated Bryan Roosa General Motors Corporation Lynda Rossi Blue Cross Blue Shield of Michigan Jerry E. Rush ArvinMeritor, Inc. Michael A. Semanco Hennessey Capital LLC Terence A. Thomas, Sr. St. John Health Amanda Van Dusen Miller, Canfield, Paddock and Stone, PLC Kent J. Vana Varnum, Riddering, Schmidt & Howlett LLP Board of Trustees Louis Betanzos Terence E. Adderley Kelly Services, Inc. Jeffrey D. Bergeron Ernst & Young LLP Stephanie W. Bergeron Walsh College David P. Boyle PNC Beth Chappell Detroit Economic Club Mary Sue Coleman University of Michigan Matthew P. Cullen Rock Ventures LLC Tarik Daoud Long Family Service Center Stephen R. D Arcy Detroit Medical Center James N. De Boer, Jr. Varnum, Riddering, Schmidt & Howlett LLP John M. Dunn Western Michigan University David O. Egner Hudson-Webber Foundation New Economy Initiative David L. Eisler Ferris State University David G. Frey Frey Foundation Mark Gaffney Michigan State AFL-CIO Eugene A. Gargaro, Jr. Manoogian Foundation Ralph J. Gerson Guardian Industries Corporation Eric R. Gilbertson Saginaw Valley State University Allan D. Gilmour Wayne State University Alfred R. Glancy III Unico Investment Group LLC Thomas J. Haas Grand Valley State University James S. Hilboldt The Connable Office, Inc. Paul C. Hillegonds DTE Energy Company Perry Irish Daniel J. Kelly Deloitte. Retired David B. Kennedy Earhart Foundation Mary Kramer Crain Communications, Inc. Edward C. Levy, Jr. Edw. C. Levy Co. Daniel Little University of Michigan-Dearborn Sam Logan Michigan Chronicle Arend D. Lubbers Grand Valley State University, Emeritus Alphonse S. Lucarelli Ernst & Young LLP, Retired Susan W. Martin Eastern Michigan University William L. Matthews Plante & Moran PLLC Sarah L. McClelland JPMorgan Chase & Co. Paul W. McCracken University of Michigan, Emeritus Patrick M. McQueen The PrivateBank Robert Milewski Blue Cross Blue Shield of Michigan Glenn D. Mroz Michigan Technological University Mark A. Murray Meijer Inc. Cathy H. Nash Citizens Bank James M. Nicholson PVS Chemicals Donald R. Parfet Apjohn Group LLC Sandra E. Pierce Charter One Philip H. Power The Center for Michigan Keith A. Pretty Northwood University John Rakolta Jr. Walbridge Douglas B. Roberts IPPSR- Michigan State University Irving Rose Edward Rose & Sons George E. Ross Central Michigan University Gary D. Russi Oakland University Nancy M. Schlichting Henry Ford Health System John M. Schreuder First National Bank of Michigan Lloyd A. Semple Dykema Lou Anna K. Simon Michigan State University S. Martin Taylor Amanda Van Dusen Miller, Canfield, Paddock and Stone PLC Kent J. Vana Varnum, Riddering, Schmidt & Howlett LLP Theodore J. Vogel CMS Energy Corporation Gail L. Warden Henry Ford Health System, Emeritus Jeffrey K. Willemain Deloitte. Leslie E. Wong Northern Michigan University is a tax deductible 501(c)(3) organization Citizens Research Council of Michigan Nontraditional K-12 Schools in Michigan September 2010 Repor ort 364 This CRC report was made possible by grants from the W.K. Kellogg Foundation, the Frey Foundation, the PNC Foundation, ArvinMeritor, the Richard C. and Barbara C. Van Dusen Family Fund, and a consortium of education groups including the Tri-County Alliance for Public Education, Michigan Association of School Boards, Metropolitan Detroit Bureau of School Studies, Inc., Michigan Association of School Administrators, Michigan School Business Officials, Middle Cities Education Association, Michigan Association of Intermediate School Administrators, Michigan PTSA, Michigan Association of Secondary School Principals, and the Michigan Elementary and Middle School Principals Association. CITIZENS RESEARCH COUNCIL OF MICHIGAN MAIN OFFICE Six Mile Road, Suite 208 Livonia, MI Fax LANSING OFFICE 124 West Allegan, Suite 620 Lansing, MI Fax CRCMICH.ORG CITIZENS RESEARCH COUNCIL OF MICHIGAN UBLIC K E PUBLIC UBLIC -12 EDUC DUCATION IN MICHIGAN Entering 2010, Michigan residents find public primary and secondary education facing numerous challenges: State revenues are falling; Local revenue growth is stagnating; K-12 education service providers are facing escalating cost pressures, with annual growth rates outpacing the projected growth in available resources; Spikes in the level of federal education funding resulting from the American Recovery and Reinvestment Act of 2009 (ARRA) will produce a budgetary cliff when the additional dollars expire; and School district organization and service provision structures are being reviewed with the goals of reducing costs and increasing efficiencies. Because of the critical importance of education to the state, its economy, and its budget, the (CRC) plans a long-term project researching education in Michigan with an emphasis on the current governance, funding, and service provision structures and their sustainability. Public education has been governed largely the same way since its inception in the 1800s. It is important to review the current organization of school districts and structure of education governance, as well as to review new and different ways to organize and govern public education, to determine if Michigan s governance structure meets today s needs. The school finance system has been revamped on a more regular basis throughout history. Changes have been made to address a host of concerns, including per-pupil revenue disparities, revenue-raising limitations of state and local tax systems, as well as taxpayer discontent with high property taxes. Michigan s current finance system was last overhauled in 1994 with the passage of Proposal A, providing sufficient experience to reconsider the goals of the finance reforms and determine whether the system has performed as originally contemplated. In addition to analyzing education governance and revenues, it is important to review cost pressures facing districts and how education services are provided in Michigan. School budgets are dominated by personnel costs, the level of which are largely dictated by decisions made at the local level. Local school operating revenues are fixed by decisions and actions at the state and federal levels, but local school officials are tasked with making spending decisions and matching projected spending levels with available resources. However, those local decisions are often impacted by state laws (e.g., state law requires districts to engage in collective bargaining). The freefall of the Michigan economy since the 2001 recession has impacted all aspects of the state budget, including K-12 education, and requires state and local officials to review how things are done in an attempt to increase revenues and/or reduce costs. BOARD OF DIRECTORS Eugene A. Gargaro, Jr., Chair Manoogian Foundation Jeffrey D. Bergeron, Vice Chair Ernst & Young LLP Nick A. Khouri, Treasurer DTE Energy Joseph R. Angileri Deloitte. Michael G. Bickers PNC Financial Services Group Beth Chappell Detroit Economic Club Rick DiBartolomeo Terence M. Donnelly Dickinson Wright PLLC Randall W. Eberts W. E. Upjohn Institute David O. Egner Hudson-Webber Foundation New Economy Initiative Laura Fournier Compuware John J. Gasparovic BorgWarner Inc. Ingrid A. Gregg Earhart Foundation Marybeth S. Howe Wells Fargo Bank Daniel T. Lis Kelly Services, Inc. Sarah L. McClelland JPMorgan Chase & Co. Aleksandra A. Miziolek Dykema Gossett PLLC Cathy H. Nash Citizens Bank Paul R. Obermeyer Comerica Bank Bryan Roosa General Motors Corporation Lynda Rossi Blue Cross Blue Shield of Michigan Jerry E. Rush ArvinMeritor, Inc. Michael A. Semanco Hennessey Capital LLC Terence A. Thomas, Sr. St. John Health Amanda Van Dusen Miller, Canfield, Paddock and Stone PLC Kent J. Vana Varnum, Riddering, Schmidt & Howlett LLP Jeffrey P. Guilfoyle, President Main Office West Six Mile Road Suite 208 Livonia, MI Fax L ansing O ffice 124 West Allegan Suite 620 Lansing, MI Fax crcmich.org Citizens Research Council Education Project In 2009, CRC was approached by a consortium of education interests and asked to take a comprehensive look at education in Michigan. CRC agreed to do this because of the importance of education to the prosperity of the state, historically and prospectively, and also because of the share of the state budget that education demands. Education is critical to the state and its citizens for many reasons: 1) A successful democracy relies on an educated citizenry. 2) Reeducating workers and preparing students for the global economy are both crucial to transforming Michigan s economy. 3) Education is vital to state and local budgets. 4) Public education represents a government program that many residents directly benefit from, not to mention the indirect benefits associated with living and working with educated people. As with all CRC research, findings and recommendations will flow from objective facts and analyses and will be made publicly available. Funding for this research effort is being provided by the education consortium and some Michigan foundations. CRC is still soliciting funds for this project from the business and foundation communities. The goal of this comprehensive review of education is to provide the necessary data and expertise to inform the education debate in Lansing and around the state. This is a long-term project that will take much of the focus of CRC in 2010 and into While an overall project completion date is unknown, CRC plans to approach the project in stages and release reports as they are completed. Topic areas CRC plans to study include education governance, K-12 revenues and school finance, school district spending analyses, public school academies (PSAs) and non-traditional schools, school district service provision and reorganization, and analyses of changes to Michigan s educational system. ii ONTRADITIONAL K S NONTRADITIONAL -12 SCHOOLS IN MICHIGAN Contents Summary... x Introduction... 1 Compulsory School Attendance... 3 The History and Theory of Charter Schools... 4 The History... 4 The Theory... 4 Organization of Public School Academies in Michigan... 6 Authorizing Entities and Oversight... 6 Authorizers... 6 Oversight and Accountability... 8 The PSA Charter... 9 PSA Boards of Directors Funding for Public School Academies Public School Funding in Michigan Foundation Allowance for PSAs Financial Reporting PSA Facilities Buildings Locations Funding for Facilities Michigan Public Educational Facilities Authority Credit Enhancement for Charter Schools Facilities Program Public School Academies Education Delivery Systems Teachers Teacher Certification Compensation Teacher Turnover The American Federation of Teachers Position Administrators Education Service Providers Management Companies: ESPs, EMOs, CMOs Nonprofit Charter Management Companies Whole School Improvement Imposing a Model/Imposing Control Other Services iii CRC Report Students and Academic Achievement in PSAs Michigan within the National Framework Michigan PSA Students Admission Policy Racial Characteristics Social Stratification in Michigan Charter Schools Special Education Students Alternative Education Students Curriculum and Graduation Requirements Curriculum Special Programmatic Approaches Studies of Charter School Academic Achievement Impact of Charter School Attendance on Student Achievement in Michigan Evaluating the Impact of Charter Schools on Student Achievement: A Longitudinal Look at the Great Lakes States The Impact of Milwaukee Charter Schools on Student Achievement Multiple Choice: Charter Performance in 16 States Hopes, Fears, & Reality: A Balanced Look at American Charter Schools in Michigan s Evaluation Systems Non-Academic Attributes of Charter Schools Innovation and Replication The Aspiration The Actuality Charter Incubators State Statutes and Federal Laws Michigan Constitutional and Statutory Authority for Charter Schools Constitutional Language State Statutes Ranking Michigan s Charter School Statutes The National Context: Federal Support for Charter Schools No Child Left Behind Federal Charter School Program American Recovery and Reinvestment Act and Race to the Top Virtual Schools and Cyber Schools The National Scene The Michigan Scene iv NONTRADITIONAL K-12 SCHOOLS IN MICHIGAN Private Schools and Public Policy Parochial Schools Nonsectarian Private Schools Private School Attendance Nationally Private Schools in Michigan The Private, Denominational and Parochial Schools Act, PA 302 of Supervision Teacher Certification Criminal History Checks Curriculum Private School Facilities Homeschooling Background Homeschooling in Michigan People v. DeJonge Issues Related to Homeschooling Public Funding for Nonpublic Schools Direct Funding and the Michigan Constitution Indirect Funding Elective Courses in Public Schools Auxiliary Services Transportation Funding Special Education Federal Programs School Voucher Programs Background Arguments Pro and Con Vouchers in Michigan Voucher Programs in Other Locations Effect of Vouchers on Student Achievement Tuition Tax Credits Conclusion Appendix I: Special Categories of Public School Academies in Michigan Schools of Excellence Conversion to Schools of Excellence Strict Discipline Academies Urban High School Academies Appendix II: The Process of Starting a New PSA v Tables ONTRADITIONAL K S NONTRADITIONAL -12 SCHOOLS IN MICHIGAN Table 1 Public School Academies by Authorizer... 7 Table 2 Per Pupil Foundation Allowance, FY1995 through FY Table 3 Teacher Certification Requirements in States with More Than 100 Charter Schools in Table 4 Education Service Providers Providing Services to More than One Public School Academy Table 5 Number of Students in Charter Schools in Table 6 Public Elementary and Secondary School Membership in Selected States in FY Table Student Enrollment by Ethnicity Table 8 Students with Disabilities, December Table 9 Michigan Charter Schools with Positive or Negative Residual Scores Using Data from Table 10 Comparison of Average Annual Change in Test Residuals by Grade for Michigan Charter Schools and Charter School Cohorts Over Five Years Table 11 School Report Card and Adequate Yearly Progress Information Table MEAP Results Table 13 Michigan Merit Examination Table 14 Center for Education Reform Charter School Law Ranking and Scorecard for Table 15 U.S. Families with Children Enrolled in Kindergarten, Elementary, or High School, by Family Income Table 16 Number of Institutional Nonpublic Schools in Michigan Table 17 ISDs with the Largest Numbers of Reporting Nonpublic Schools Table 18 Number of Homeschools Meeting Reporting Requirements vi ONTRADITIONAL K S NONTRADITIONAL -12 SCHOOLS IN MICHIGAN Summary Traditional public schools are responsible for the wide dissemination of education and the growth of prosperity in the United States. However, the perceived failure of some traditional schools to adequately educate and graduate students, the desire for publicly funded school choice, and the perceived need for a broader array of educational approaches than had been found in most traditional school districts, led to development of publicly funded, but independently managed charter schools. This memorandum, which summarizes Report 364, Nontraditional K-12 Schools, is part of a series of reports on public education in Michigan published by Citizens Research Council of Michigan. Charter Schools Charter schools are publicly funded, independently managed schools that compete for students based on programs. Charter schools were to be freed from the bureaucracy of traditional schools, to have greater autonomy, and to focus on educational outcomes. In Michigan, charter schools are called public school academies (PSAs). In September, 2009, there were 241 PSAs in Michigan, serving 103,000 students (six percent of the state s K-12 population). There were 23 traditional school districts in which three or more PSAs were clustered (50 are located in Detroit). In Michigan, as in the 39 other states that allow charter schools, state statutes seek to balance accountability (teacher certification, limits on the number of university authorized charters, reporting requirements) and independence (relatively large number of potential authorizers, specialized types of charters). Supporters of charters value the publicly funded school choice that charters offer. Supporters recognize that charter schools offer students an alternative to failing traditional public schools, and contend that competition from charters will result in improvements in traditional schools. Some supporters believe that traditional urban districts, with industrial scale schools and restrictive union contracts, are incapable of effectively addressing the needs of large numbers of disadvantaged students, and that extended school days and years, individual mentoring and intensive supportive services, community partnerships, and small classes are necessary and can best be delivered by charter schools. Others prefer the specialized focus that can be incorporated in a charter school that draws students from a wider geographic area. Opposition to charter schools has come from supporters of traditional public schools, who fear the loss of students and funding to charters, and who fear that the emphasis on charter schools shifts needed focus away from solving the problems of traditional schools. Opponents fear that charters will skim the best students, or the cheapest students to educate, leaving a larger concentration of the most challenging students in the traditional system. Opposition to non-unionized charters has also come from teachers unions. Some opponents object to the use of for-profit management companies, or the absence of publicly elected boards. Some opponents fear that oversight and accountability are lax. Governance Structure Unlike traditional school districts, PSAs do not have elected school boards. In Michigan, PSAs may be authorized by a number of organizations: The governing body of a state public university may charter a PSA anywhere in the state. In Michigan, universities collectively have been limited to chartering no more than 150 public school academies (that cap was reached in 1998), but certain types of PSAs do not count toward the 150 maximum. The board of a community college may charter a PSA in that community college district. Three community colleges have chartered 43 public school academies. The board of a federal tribally controlled community college may charter a PSA anywhere in the state: Bay Mills Community College has chartered 41 (of the 43 total referenced previously). vii CRC Report An intermediate school district board may charter a PSA in that district. Thirteen ISDs have chartered 32 schools. The board of a local K-12 school district may charter a PSA in that district. Three school districts have chartered a total of 12 PSAs; nine of those were chartered by Detroit Public Schools. PSAs negotiate contracts with authorizers that a
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