Education

Duluth Board Ends Ties With For-Profit Management Firm

By Peter Schmidt — August 05, 1992 3 min read
  • Save to favorites
  • Print

The city’s school board declined to renew its four-month, $40,000 contract with Education Alternatives Inc., which provided the district with an interim superintendent during a time of transition.

“As far as I was concerned, they were hired to do a job, they came in, and they did it,’' said Michael P. Maxim, the board’s president.

“It is tough, in four months, to turn things around,’' he continued. “I don’t think we ever got to see, nor was there any way to analyze, the ideas that E.A.I. espouses.’'

Other board members said that apart from fulfilling its contractual obligation, the company accomplished little else that impressed them.

George M. Balach, a board member who had opposed the contract, said that “as far as the day-to-day operations of the district went, they were no better or worse than our own person would have been.’'

Another board member, Mickey Ferguson, said that while she had no regrets about the short-term relationship, “I don’t know of one of our nine board members who would have voted to continue our relationship with E.A.I.’'

Long-Term Management

The Duluth board’s contract with the Minneapolis-based firm was viewed as the first that contemplated long-term private management of a public school system.

Under the pact, E.A.I. agreed to provide the district with an interim superintendent while assisting in the search for a permanent replacement.

The firm also conducted a management-efficiency study and said it would explore the possibility of operating the district full time.

Soon after taking the helm, however, E.A.I. was asked to resolve a long-running debate over school construction in the district. Meanwhile, it angered secretaries and custodians by proposing budget reforms that the employees feared would lead to layoffs.

The firm also was criticized by a local newspaper for allegedly circumventing the spirit, if not the letter, of the state’s open-meeting laws by meeting informally with board members or by asking them to privately commit to various proposals in writing before they were brought up for a vote.

Allegations Denied

David A. Bennett, the president of E.A.I. and a former superintendent of the St. Paul schools, called the newspaper’s allegations “ridiculous.’' He said the two interim superintendents provided by his firm acted no differently than other superintendents in the state, who he said send confidential memos to board members on an almost daily basis.

Ms. Ferguson, however, said “several board members, myself included, became uncomfortable’’ with what they perceived as secretiveness on the part of E.A.I.

“If these were the tactics that were going to be employed by E.A.I. on a long-term basis, I personally would not be interested in pursuing a long-term relationship with that company,’' Ms. Ferguson said.

Although the firm won praise from some board members for its cost-cutting proposals, its chances of winning a long-term contract grew even longer when the board’s choice for superintendent, Reginald S. Nolin, expressed concerns about sharing power with the company.

Mr. Bennett said that while his business benefited from the four-month experiment, it is unlikely to repeat it elsewhere.

“Our business is not in becoming interim superintendents,’' he said.

Last month, the Baltimore school board approved a contract with E.A.I. to manage eight city elementary schools and one middle school beginning in September.

As of March, the firm was operating one public school in Florida and two private elementary schools in Minnesota and Arizona, and had entered into a partnership with Florida state officials who were trying to identify three school districts that would agree to be managed privately.

The company also sought a contract with the Green Brook, N.J., public schools, but voters there defeated school-board members who backed the move.

Related Tags:

A version of this article appeared in the August 05, 1992 edition of Education Week as Duluth Board Ends Ties With For-Profit Management Firm

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
The Road to Opportunity: Making CTE Accessible for All
The most valuable CTE happens off campus. For too many students, transportation is the barrier that keeps opportunity out of reach.
Content provided by HopSkipDrive
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
New Hire, No Laptop, No Login: Preventing Day-One Disruption
What happens before day one matters. Discover how districts are improving the new hire experience.
Content provided by Frontline Education
Teaching Profession K-12 Essentials Forum Supporting the New K-12 Workforce: What Teachers Need to Stay at School
 Join this free virtual event to discover what teachers say they need to feel supported to stay in classrooms for the long haul.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Opinion The Education Wisdom Our Readers Keep Revisiting: Top 10
These opinion blog posts and essays have made a lasting impression on readers.
1 min read
Trendy halftone collage cutout elements. Laptop, rising arrow chart, gears, handshake, watch, magnifier. Idea, teamwork, brainstorming and success concept Modern retro vector illustration
Cristina Gaidau/iStock
Education Opinion The Opinions EdWeek Readers Care About: The Year’s 10 Most-Read
The opinion content readers visited most in 2025.
2 min read
Collage of the illustrations form the top 4 most read opinion essays of 2025.
Education Week + Getty Images
Education Quiz Did You Follow This Week’s Education News? Take This Quiz
Test your knowledge on the latest news and trends in education.
1 min read
Education Quiz How Did the SNAP Lapse Affect Schools? Take This Weekly Quiz
Test your knowledge on the latest news and trends in education.
1 min read