Teachers' Union Fails Accounting 101
Union reports revenues as profits in claims about cyber school operator
In an attack on the bill that would allow more charter online cyber schools, the American Federation of Teachers Michigan union claims that a private company that provides curriculum for charter cyber schools made $522 million in profits in 2011.
In fact, K12 Inc. had total revenues — not profits — of $522.5 million, and a net income of $12.8 million, according to MarketWatch.
“They are just confusing revenues for profits,” said Michael Van Beek, education policy director at the Mackinac Center for Public Policy. “It blows up their argument that this company is going to make hundreds of millions of dollars in operating these schools.”
Louise Somalski, legislative coordinator for the AFT-Michigan didn’t return messages left at her office.
Senate Bill 619 was passed by the Senate with a 20-18 vote on Oct. 27 and expanded the number of cyber schools available. Cyber schools are also called virtual schools that provide education over the Internet. Last month, the State House passed SB 619 by a 56-54 vote. The bill will be sent back to the Senate for a concurrence vote. Then it would go to Gov. Rick Snyder to be signed into law.
The AFT also says that the bill creates a limit of 900,000 students over 30 cyber schools in two years, which could drain $7.2 billion from the School Aid Fund. The bill passed by the State House was amended to have a statewide cap of 32,000 students in five years.
“One thing that’s odd is that AFT fails to understand that lifting the cap does not force any student to enroll in these types of schools,” Van Beek said. “They only do so by choice and only if they feel they’re a better option than the school they’re assigned by the state. Why would AFT assume that hundreds of thousands of families would opt out of the regular brick-and-mortar schools they currently attend?”
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See also:
House Votes To Raise Cyber School Cap
Bureaucrats vs. Parents — Who Should Choose Where Children Are Educated?
'We Found a Place Where Our Children's Safety Would Never Be An Issue'
School Choice Advocates Cheer Lift of Charter Public School Cap
Charter Public Schools Cap Eliminated
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FROM MICHIGAN HOME HELP PROGRAM PROVIDERS — OFTEN FAMILY MEMBERS
ATTORNEY GENERAL ORDERED THE STATE TO STOP TAKING MONEY ON MAY 25, 2012
opinion May 25, 2012
The Service Employees International Union (SEIU) "organized” Michigan's self-employed Home Help Program providers for the purpose of skimming dues from their ailing and disabled clients' Medicaid subsidy checks. The majority of these providers are relatives or friends taking care of loved ones. It’s been estimated that less than 25 percent of the providers are hired in an employment setting.
The first counter tallies SEIU dues skimmed since the union and state officials first launched this scheme in late 2006. The second shows the amount skimmed since June 9, 2011, when the Michigan House passed and sent to the Senate a bill to ban this and all similar “stealth unionization” efforts. The third counter shows the dues skimmed since the Governor signed the bill into law on April 10, 2012. The fourth counter shows the amount skimmed since May 25, 2012, when the Attorney General opinion was announced.
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