Just as I did, John Moon with the Alabama Political Reporter, got a whiff of the stench coming from Washington County and started asking questions and digging. Josh is a veteran investigative reporter with a track record of exposing wrong doing. You can see his entire article here. I encourage you to read it all.
He zeros in on the involvement of the charter board and Texas-based education consultant Soner Tarim. Josh uncovered details that definitely make you scratch your head.
Here are excerpts:
“Woodland Prep is a charter school horror story — and it hasn’t even been built yet.
Located in rural Washington County, Woodland Prep, which will open as a K-7 school this fall and add a grade level each year, is everything state leaders assured us could never happen under Alabama’s charter school laws.
Its land is owned by a shady Utah holding company. Its building is owned by a for-profit Arizona company. It will be managed by a for-profit Texas company that doesn’t employ a single Alabamian. It will pay the head of that management company around $300,000 per year — up front. Its application was rejected by the National Association of Charter School Authorizers, which Alabama pays a hefty sum to review and approve charter applications. Woodland’s management plan failed to meet basic standards for approval in any of the three plan areas reviewed by NACSA.
Woodland also is not welcome in Washington County, where residents turned up at a 10-1 ratio to speak out against it last year during community meetings. And maybe most importantly, the school is not needed in the poverty-stricken county, where not a single school is failing, most exceed state averages and students are free to attend any school in the county they wish.
The Commission ignored the community outcry against Woodland and failed to even discuss the need — or lack thereof — for a charter school in the county. Both of those are specific requirements within Alabama’s charter school law for the Commission to consider during its public meetings.
Additionally, charter schools approved in Alabama are, according to Alabama’s law, required to meet “national standards.” To assure those standards are met, Alabama lawmakers assured a concerned public that a “top-notch” national body — to quote two state representatives — would be contracted to review every application before those applications would be considered by the Commission. NACSA is that group, and Alabama pays it nearly $100,000 per year to review applications, and then the Commission ignores its advice.
But in response to my questions, ALSDE decided to be flippant. It directed questions about community opposition to “commissioners who attended the meetings,” despite the fact that ALSDE video recorded each meeting. It disputed that the Commission has a responsibility to monitor and oversee the charter schools it approves, stating that “the Commission may monitor …” the schools. And finally, when asked about the out-of-state ownership and management of Woodland, ALSDE said those questions should be directed to one of those out-of-state groups.
It seems that one name in my story about LEAD had caught their attention: Soner Tarim. Tarim is the CEO of Unity School Services and was the founder of Harmony Schools, a mostly-successful charter school group in Texas. Tarim and Harmony also have their very serious problems, not least of which is their ties to a Muslim cleric and controversial preacher from Turkey, Fetullah Gulen, and his Gulen Movement.
Numerous reports from the New York Times to Reuters and other local news outlets linked Harmony and Tarim to Gulen, and some labeled Harmony a financial front for Gulen’s movement. While Gulen espouses a more moderate brand of Islam, his movement has been labeled a terrorist organization by Turkey, which has accused Gulen and his followers of attempting to overthrow the Turkish government. Others dispute those claims, and believe the terrorist label is unfairly applied to Gulen, who has shown no proclivity for violence.
“No one could figure out why someone from Texas would come to little ol’ Washington County for a charter school,” said Brackin, who is the federal programs coordinator for the system.
The answer was easy and expected: Money.
A copy of the USS contract with the Woodland Prep board shows that Tarim will make 15 percent of all federal, state and local funds received by Woodland. Which means that for every student allotment — and Woodland estimates in its application that the per-pupil allotment will be more than $8,200 — Tarim will make 15 percent off the top. If Woodland’s projected enrollment of 260 students is accurate, Tarim will make more than $300,000.
“He’ll be the highest paid man in Washington County,” wrote one county official who asked not to be identified.
But there’s more. Under the terms of his contract, he also is allowed to keep all profits from any school programs, such as pre-K or after-school trainings, and he is free to use Woodland Prep to apply for any grants.
According to the deed for the land, Woodland Prep’s local school board, Washington County Students First, isn’t the owner of the land. Instead, a holding company — Woodland Charter Holdings — in Utah holds the deed. That company has one registered agent — Jennifer Lind of Utah. According to online records, Lind is the agent of record for at least two dozen charter holding companies in Utah — most of them tied to charter schools thousands of miles away from Utah.
According to records kept by the State of Utah, Woodland Charter Holdings also has just one registered executive: American Charter Development. The same company contracted with the charter board to finance and build the Woodland school building.
So, why all of the layers of ownership? Judging by similar ownership of other charter schools, it’s to mitigate risk to the company financing the project and to allow for the easy sale or transfer of ownership of the land, school building or all of the assets.
Forming a holding company in Utah, where banking laws are particularly lenient, allows for the investors — American Charter Development, in this case — to set up a financial buffer between it and the debt incurred by Woodland Prep. If the school goes broke and has to close, it’s the holding company left on the hook, not ACD.
That means that ACD has relinquished its ownership of the Woodland Prep school to a holding company that ACD owns, and now ACD will charge itself rent and interest — paid for by the tax dollars that were once flowing into Washington County schools.
And make no mistake, ACD is rolling in the cash — receiving 6 percent of the “total development costs” in monthly lease payments, according to the heavily redacted contract it signed with Woodland Prep’s board. That fee does not include a guaranteed 8.9 percent capitalization rate that ACD is guaranteed.”
As Josh has pointed out, what has happened in rural Washington County is MURKY, and then some. And increasingly, various public officials are wondering why the state board of education and the state school superintendent seem so reluctant to ask questions of the charter commission and get to the bottom of what has taken place and why.
The legislature has little confidence in the state school board. Senator Del Marsh calls them :dysfunctional.” Yesterday a bill to term limit state board members came out of the House Education Policy Committee. Last year there was an effort in the Senate to switch to an appointed state board.
The situation in Washington County is tarnishing the board’s reputation and effectiveness even more.