Home > Uncategorized > Open a Charter… Follow the Rules… Rake in the $$$: Nice Work if You Can Get It…. and in Arizona You Can!

Open a Charter… Follow the Rules… Rake in the $$$: Nice Work if You Can Get It…. and in Arizona You Can!

In “How to become a charter school millionaire in 5 easy steps? Ask Eddie Farnsworth“, AZ Central reporter Laurie Roberts describes how Arizona GOP legislator Farnsworth made millions on a charter school he operated by following the rules enacted by the legislature he served in. What are the steps?

No. 1.   Set up charter schools. Collect state money to run the four-school operation then pay yourself $170,000 a year, more than competing school districts with double or more the schools.

No. 2.   Set up a non-profit to buy your schools for $56.9 million. Fill the board with pals and lobbyists whose bills you supported in the state Legislature. Pocket $13.9 million from the sale.

No. 3.   Get that non-profit board to hire your brother to run the publicly funded charter operation. And, oh yeah, to hire you to serve as a consultant.

No. 4.   Continue to rent space to house the schools’ corporate headquarters – at market rate, of course – to score another $79,600 a year.

No. 5.   Loan the charter operation $2.8 million – 60 days’ operating cash – and proceed to collect $478,000 in interest over the next seven years.

As Ms. Roberts indicates in her article, it is unfair to single out Mr. Farnsworth since many others are making millions in the same way. But in my judgment Mr. Farnsworth deserves particular scorn since he is in a position to address some of Arizona’s laws that make this kind of scamming possible.

 

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