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Apply Business Model To Innovative Schools

Wisconsin State Journal :: OPINION :: B2

Sunday, November 2, 2003
Paul Rux

For three years I have worked as a business consultant to charter and voucher schools, focusing on facilities, funding and strategic planning. I want to share what I have observed as a guide to what to do -- and not do -- to manage charter and voucher schools.

Let's define charter and voucher schools first. A charter school is a public school. Basically, a group of parents petition a school board to create a school to meet special needs. For example, parents may want a school that treats children with autism. The school board grants a permit to create such a school, which contracts, or "charters" to provide special services. With this permit comes state aid for the school.

In Wisconsin, a voucher or choice school exists only in Milwaukee. It also qualifies for state aid but unlike the charter school, a voucher or choice school can be a private or parochial school.

In effect, these schools are small, independent businesses -- and they run the risks of business start-ups. To manage these risks, they need ongoing help with business issues like funding, facilities and strategic planning, since the start-up staff are usually enthusiastic teachers with little or no business knowledge. This can put the schools, students and the reputations of healthy charters and vouchers at risk.

And there are horror stories. In one case, a school opened with no desks, no textbooks and no money to meet its first teacher payroll. School operators were running around like the proverbial "chickens with their heads cut off." This is educational malpractice. It should not occur.

In another case, a school used money that should have covered payroll taxes to expand school real estate. This is playing with dynamite. It can result in huge fines for anybody officially connected with such a school, and there was a frantic search for a cash fix before the board, teachers or vendors discovered the school could not pay its taxes.

Critics demand more stringent academic performance from charter and voucher schools. They also need to demand equally stringent business accountability. Users of public funds should never fear open books.

But a lack of professional standards in some charter and voucher schools puts them at risk. Nobody should be allowed to operate a charter or voucher school without having at least a college degree. Education is a profession, not a get-rich scheme for opportunists. I observed one operator who lacked both a college education and business sense. The school was almost forced to shut down because it lacked liability insurance.

I belong to the Wisconsin Charter School Association, which needs to create a code of ethics to prevent gross educational malpractice. Otherwise, all of us will get tarred and feathered because of the charlatans, hustlers and snake-oil salesmen using charter and voucher schools to make a fast buck. Healthy charter and voucher schools do not deserve bad reputations because some people misuse tuition dollars.

Parents are desperate to put their children where they are physically safe. There is a scholarly debate about whether the academic outcomes of charter and voucher schools match those of mainline public schools -- but inner city parents want simple safety, not academics, first.

Through my business consulting to charter and choice schools during the past three years, I have also discovered that many of our best teachers find their way to these schools. They want to do a better job. In mainline schools, the lack of discipline, large class sizes and dismal attendance ties their professional hands. For them, education is not about money and benefits (although these help). It is about cultures that value learning.

Charter and voucher schools are not going away. In fact, the Legislature may expand charter schools by letting county boards authorize them. When boards weigh charter applications, I hope they ask hard questions about the credentials, business structures and business practices of petitioners.

In effect, charter and voucher schools are small businesses. They need to operate like them. They need to join small business associations that can provide another "set of eyes" to support these schools, and minimize risks now becoming apparent in some schools.


Paul & Jane Rux

YOUTH ENTREPRENEURSHIP

PRESS RELEASE / January 17, 2006
 

The National Federation of Independent Business (NFIB) Young Entrepreneur Foundation has named Paul Rux, Ph.D. again to its Wisconsin panel for judging the annual NFIB Young Entrepreneur Award entries at the state level.

The NFIB Award goes to high school students who submit a business plan that shows high merit and promise. The 500 final winners at the national level receive a $1,000 NFIB scholarship.

Dr. Rux is Founder and President of Youth Care, Inc., an IRS 501-C-3 nonprofit based in Mt. Horeb, Wisconsin. Youth Care, Inc. provides business and funding support for projects and programs that advance the welfare of young persons.

If a student wants to compete for the NFIB Young Entrepreneur Award, they can contact Dr. Rux for details at paulrux@paulrux.net Deadline to apply is March 15, 2006.

Dr. Rux has served on the Wisconsin State Leadership Council of the National Federation of Independent Business, or NFIB, since 1999. NFIB has over 13,500 members in Wisconsin. The Council lobbies state government on behalf of small businesses.
 


Boot Camp A Budget Casualty?

Push Is On To Keep It Open

Wisconsin State Journal :: LOCAL/WISCONSIN :: B3

Friday, April 27, 2001
Beth Williams Wisconsin State Journal

A Middleton-based non-profit group wants to help the state Department of Corrections keep its boot camp program for juvenile offenders.

The Youth Leadership Training Center in Camp Douglas is slated to be closed in Gov. Scott McCallum's proposed budget but some lawmakers and others want to preserve it.

Youth Care Inc., a non-profit consulting and group for organizations working with youth, is hoping the Department of Corrections will let them manage the center.

State Department of Corrections spokesman Bill Clausius said the department has not had discussions with the group about this proposal and no talks are planned.


"I think an opportunity for a public-private partnership exists," said state Rep. Sheryl Albers, R-Reedsburg. She and state Sen. Dale Schultz, R-Richland Center are trying to keep the center open.

Paul Rux, founder of Youth Care, said Albers' office is trying to arrange a meeting between him and Corrections Secretary Jon Litscher. Rux said he believes the program can run without tax dollars. Rux said the state would need to contribute $100,000 a year for the first two years but could break even by seeking private grants and donations, aggressively marketing to judges and charging counties fees.

Critics of the program have said the boot camp is too costly and they have cited national studies that found such programs no more effective than reform schools.

It costs $6,491 to send one youth to boot camp for a month compared to $4,897 for the Lincoln Hills School in Irma and $4,384 for the Ethan Allen School in Wales, according to the Department of Corrections.

Boot camp supporters argue their program costs less.

"We keep the kid for four months," said Rich Hanson, a former YLTC drill sergeant. "Ethan Allen and Lincoln Hills have a minimum of a nine month stay. It's actually cheaper to send them here."

The Department of Corrections said there are no solid data measuring effectiveness of the state boot camp program, but a 1999 study by research analyst Sandra McAnany, who was a limited-term Corrections Department employee, found that 35 percent of center graduates had probation revoked for violating probation rules or committing a new offense.

"The thing the governor is forgetting is even with 35 percent getting revoked there's 65 percent out there who aren't revoked," McAnany said.

She said the program teaches life skills that can help youth stay out of trouble. McAnany said her data is not comparable to recidivism data for Ethan Allen or Lincoln Hills and that her goal was to capture a picture of the first 20 YLTC classes.

Clausius maintains the study is not valid evidence supporting the program.

Even if the state does not want to work with Youth Care, Rux said he would like to develop a self-sufficient boot camp.



Paul & Jane Rux

CONTACT

Paul Rux, Ph.D.

Mt. Horeb, Wisconsin

Email paulrux@paulrux.net



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