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- <text id=94TT1392>
- <title>
- Oct. 17, 1994: Education:Schools for Profit
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1994
- Oct. 17, 1994 Sex in America
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- EDUCATION, Page 48
- Schools for Profit
- </hdr>
- <body>
- <p> In desperation, a Connecticut city turns its classrooms over
- to entrepreneurs, launching a revolution
- </p>
- <p>By Nancy Gibbs--Reported by Richard N. Ostling/New York and John Steinbreder/Hartford
- </p>
- <p> Torn between a desperate plight and a radical plan, the parents,
- teachers and politicians who jammed the decrepit Hartford Board
- of Education building in Connecticut last week agonized over
- their chance to make history.
- </p>
- <p> Jane Carroll teaches second grade. "I've heard people here tonight
- say they feel good about the Hartford school system," she said.
- "Well, I'd feel better if I had a copying machine at school.
- I'd feel better if I could get construction paper for my classes,
- if my child had a globe in her geography class. Nothing has
- changed over the years, nothing has happened. Now, I want something
- to happen."
- </p>
- <p> Lisa Beaudoin's voice broke as she spoke. "Our kids are dying
- in this school system," she said. "My seven-year-old daughter
- is completely bored at school. She doesn't have art, she doesn't
- have gym, she doesn't have music, all because there isn't enough
- money for them any more. And you know where all that money is
- going? To teachers' salaries."
- </p>
- <p> Paul J. Comer, another parent, rose to his feet. "A child's
- mind is a terrible thing to waste, but it is even worse to make
- money off it," he said. "I cannot stand the fact that someone
- may make even one dollar at the expense of a child's brain."
- </p>
- <p> Throughout the night there were cheers and warnings. "We will
- cooperate with you if you decide to do this," said Don Berghuis,
- who recently retired as a social worker for the school system
- after 26 years. "But we will watch every step you take. Heaven
- help you if you mess up."
- </p>
- <p> In the end the Board voted, 6-3, to do what other cities have
- threatened but none have dared try: to hand over the entire
- district--all 32 schools, all 26,000 kids, all $200 million
- in the budget--to a private company, Minneapolis, Minnesota-based
- Education Alternatives, Inc. The decision came after months
- of research and weeks of debate. The atmosphere was so tense
- that a board member was receiving threatening phone calls warning
- of "terror" if the deal went through. E.A.I. chief John Golle
- and his team lobbied the board for months. To hear the warring
- sides tell it, the decision represented either the first step
- toward dismantling public education or the first step toward
- saving it.
- </p>
- <p> E.A.I., one of the most controversial young corporations in
- the country, has long searched for a whole district that would
- put its methods to the test. Under the five-year contract, which
- starts immediately, E.A.I. will pay the bills, buy supplies,
- fix buildings, shape curriculum, train teachers and, when it's
- all over, pocket half of every dollar, if any, it saves the
- city of Hartford. The company said it would immediately pump
- $1.6 million into fixing the most ramshackle buildings, and
- another $14 million into new technology. The board remains in
- final control, and can cancel the contract on 90 days' notice.
- </p>
- <p> The stakes could hardly be higher for the eight-year-old firm,
- which runs two private schools in Eagan, Minnesota, and Paradise
- Valley, Arizona, designed as laboratories to refine new teaching
- methods, as well as nine schools in Baltimore, Maryland, and
- one in South Florida. Landing an entire district represents
- an enormous coup: the Hartford deal will increase annual revenues
- six-fold, from $34 million for the past fiscal year to approximately
- $200 million.
- </p>
- <p> It also represents an enormous risk. Hartford, one of the poorest
- cities in Connecticut, has been spending roughly $9,000 per
- student annually, well above the national average of $5,900,
- and yet has one of the highest dropout rates and the lowest
- test scores in the state. Fewer than half the city's ninth-graders
- graduate four years later; 95% of fourth-graders need remedial
- help. Acting superintendent Eddie Davis, whose two children
- attend Hartford schools, is blunt about the crisis. "Our performance
- is down, our costs are up," he says. "Our 2,000-odd teachers
- make on average $52,000 and rank in the top five in the state
- in terms of salaries. Yet we rank 112th out of 169 towns in
- terms of direct expenditures on instructional materials."
- </p>
- <p> Davis was hired last year by a rambunctious school board with
- five new members and a taste for reform. New member Stephanie
- Lightfoot, 43, was the first to survey the damage and propose
- E.A.I. as an antidote. "I was worried that we might only be
- able to do things piecemeal or halfway and not get it all done,"
- she says. "We are hiring E.A.I. to assist us in implementing
- our strategic plan in a comprehensive way." Several members
- visited E.A.I. schools, talked to teachers and parents there
- and came away impressed.
- </p>
- <p> Some E.A.I. opponents charge that the situation has been improving
- and that radical action was premature; others admit the need
- for reform but question the method. "We are guinea pigs," says
- David Mulholland, president of the Connecticut Federation of
- School Administrators, "and if this experiment doesn't work,
- the people who will suffer are our kids." Behind all is the
- question of what will be the driving motive: Improving schools
- or improving E.A.I.'s bottom line? "This whole business about
- it being a win-win situation, that they can serve their customers
- and profit as well, is too glib," charges Alex Molnar, education
- professor at the University of Wisconsin--Milwaukee, who argues
- that schools are inherently unprofitable.
- </p>
- <p> Among the most outspoken critics in Hartford, as in other cities
- that have flirted with such reforms, are the teachers' unions.
- They view recruiting E.A.I. as a veiled attempt at union bashing,
- since the company was granted a role in negotiating future contracts
- and in hiring and firing teachers. "We don't have a dollar to
- spare now," argues Hartford Federation of Teachers head Susan
- Davis, "and to see a private company come in and take out money
- that could be put back into the school system worries me." School
- board president William Meagher was skeptical about the company's
- promises: "I don't think they've done what they said they would
- in Baltimore. They promised dramatic improvement down there
- in test scores, for example, and they haven't achieved that
- so far at all."
- </p>
- <p> There is indeed a certain vagueness about how E.A.I. intends
- to lift scores and performance. There is much inspirational
- talk of "enhanced instruction, efficient management, greater
- parental involvement, individual attention for students." But
- the results are not yet in from the other E.A.I. laboratories,
- and in any case the Hartford experiment dwarfs them all.
- </p>
- <p> But uncertainty may itself be used to advantage. "I look at
- it this way," says Susie Hinton, an elementary school principal.
- "They are a vehicle that we can use to break down an old way
- of doing things. It's hard to change unless you have someone
- come along who is an outsider, who can come in and stir up the
- pot. The threat alone of E.A.I. has stirred up the pot to such
- a degree around here you can't believe it." She adds, "The system
- is broken now, and we can't go back to business as usual."
- </p>
- </body>
- </article>
- </text>
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