The Alliance’s market share study shows charters are now educating more students than districts in places like Detroit, Flint, and New Orleans. This shift in students and the money that follows them is forcing policymakers and educators to grapple with how to deal with districts that enter the “death spiral” that leads toward insolvency. Come learn how the charter model is being used to create policy and practical solutions for addressing these complex situations. Presented by Dr. Jim Goenner (National Charter Schools Institute), Paul Pastorek (Pastorek Partners LLC), and Leonard Wolfe (Dykema) at the 2018 NCSC.

1. Jim Goenner (National Charter Schools Institute)
Paul Pastorek (Pastorek Partners LLC)
Len Wolfe (Dykema)
Lessons from the Front Line
Using the Charter Model
to Transform Districts:

2. Goals for Today
Share Examples of
Transformation Using the
Charter Model
Discuss Lessons Learned
Offer Recommendations
for Policy & Practice
Answer Questions &
Have Fun!
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3. “Study the past
if you would
define the future.”
- Confucius
History Matters

4. Theory of Change

8. Examples of Transformation
Here are some of the transforming models Michigan has recently seen using
elements of the chartering model:
• A new district to replace the existing one (“Oldco / Newco” model used in Detroit)
• A district within a district (EAA in Detroit)
• A district chartering a school system (Highland Park / Muskegon Heights)
• Consolidation of school districts (Marshall / Albion)
• Dissolution of districts / transfer of assets (Saginaw Buena Vista / Inkster)
• Creation of a state-wide district for failing school buildings (State School Reform /
School Redesign Office)
• Partnership Agreements (recently introduced by MDE for failing school buildings)
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9. What are the BIG Issues Facing Districts?
• Chronically low student achievement
• Declining student populations
• Increased competition for students
• Charters
• Districts
• Cyber
• Higher Ed
• Private
• Homeschool
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10. What are the BIG Issues Facing Districts?
• Legacy debt (health care/ retirement obligations)
• Other State obligations (e.g., workers’ comp,
unemployment insurance, repayment of misused grant
funds)
• Debt / Vendor issues (State typically largest creditor;
public utility debts)
• Litigation settlements / costs
• Administrative and personnel turnover
• Oversized and underutilized school buildings
• Cost of shuttered facilities
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11. Warning Signs of the “Death Spiral”
• Chronically low achieving schools
• Sudden increases in administrative & personnel turnover
• Substantial & sudden drops in student enrollment
• No fund balance
• Advances on state aid / emergency state loans
• Inability to make payroll
• Inability to pay State and private vendors
• Contingent liabilities becoming liabilities
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12. Important Tools For Transformations
• Political will and a cooperative legislative and
administrative environment
• Stakeholder support (“sullen but not mutinous”)
• State intervention authority (e.g., emergency
manager law)
• Authority to share governmental services –
constitutional or statutory authority
• Flexible school code and school finance
structures

13. Examples of Transformations
• Texas Act 1882 – Provides Financial Incentive
for Districts to Charter its Own Schools
• New Orleans
• Puerto Rico
• Higher Education Authorizers
• Indianapolis Mayoral Authority
• Achievement School Districts
– Tennessee & Nevada

14. Key Lessons Learned
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1. Political & Public Relations
2. Legislative & Regulatory
3. Legal & Contractual
4. Governance & Management
5. Facilities & Financial
6. Academic & Programmatic
7. Staffing & Students
8. Community Relations
9. Other

15. Questions?
Answers

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