decorahnews.com editorial: The role of Wall Street in Iowa's on-line schools

"The role of Wall Street in Iowa schools"
editorial by decorahnews.com's Bob Felde
 
Like other open enrollment situations, students enroll in online or virtual schools related to specific family needs, or learning styles. Advertising for these schools promotes the flexibility and benefits of online learning. Online schools need to meet accreditation standards via accrediting agencies recognized by the State of Iowa. They also have required reporting regarding student achievement; reports can be found via the Iowa Department of Education.
 
Two such "public" schools exist in Iowa.  Last year the Iowa Virtual Academy (IAVA), via Clayton Ridge Schools, enrolled over 300 students, while the Iowa Connections Academy, via the CAM district, enrolled over 500.
 
That sounds fairly simple, but as Paul Harvey used to say, here's "the rest of the story."
 
Are they free? Yes, students pay no tuition. But somebody pays—and in this case, it's the school district that is losing the student to the on-line school.  State funding from the district of the open enrolling student goes to the "host" district, and that school district then hires "vendors" for the online curriculum services.
 
But what is that financial arrangement with the vendors? IAVA did not disclose that information to decorahnews.com when we inquired. When asked, the Iowa Department of Education said they did not have that information because the host districts are not required to report that arrangement.
 
However, a February 20, 2012, story in the Waterloo Courier reported that vendors guaranteed the host a base fee of $50,000 fee plus a percentage (3.5 percent for Clayton Ridge) of the state funding dollars per student.  Let's use that formula and assume that the vendor gets 96.5 percent of the state aid.  Since state funding for school districts during the 2016-2017 school year will be about $6400 per student, that means Clayton Ridge will get about $225 per student and the vendor running the Iowa Virtual Academy gets about $6,175 per student.  If you do the math, with 300 students, that is well over $1.8 million leaving Iowa via the Clayton Ridge open enrollment for online students; and over $3 million from the CAM District with over 500 students.
 
The above Courier article also noted some legislative concern that the programs were initially thought to provide unique online learning opportunities for students within a particular school district, and an option for a few outside a host district. The opposite has occurred, however. The IAVA website  reports that three Clayton County students are enrolled.
 
Beyond the cash flow out of state, there are also concerns expressed about the companies that run these types of programs. For example, K12, the parent company (vendor) of the IAVA was the subject of a recent blog (http://dianeravitch.net/category/k12-inc/) by well known educational writer and critic Diane Ravitch.  She shared information about their recent stockholder meeting where shareholders were concerned about executive pay (the CEO was paid $5.33 million last year), the onslaught of criticism regarding student performance and multiple investigations regarding their operations.  Meanwhile, she noted, disgruntled teachers employed by K12 picketed outside. 

Don't get me wrong, I don't necessarily oppose online education when it may be a viable alternative for some students and parents. Our governor and legislators have tipped their hats to the idea. And it is hard to fault school districts such as Clayton Ridge that face tough state funding challenges (particularly in highly rural districts) for seeking extra dollars or finding learning opportunities for their students that might not otherwise be readily available.
 
But if our Iowa tax dollars are going to support that concept, I oppose millions of dollars floating out of state to corporations that have much to answer about their ethics, how they treat their teachers, and how well they serve students. (K12, the parent company of IAVA, has corporate headquarters in Virginia.  Pearson, the parent company of Iowa Connections Academy at CAM School District, has corporate offices in London and New York.) Both companies have faced a significant fall in their stock prices, and stockholders will continue to press for more profit. I am not sure that bodes well for students.
 
Keep the money here. Fund our schools better so they can address student needs. And if we need online education, then rely on the educators of Iowa to implement programs for the needs of our students. Keep Wall Street out of our schools!