Law & Courts

Union Accuses Charter Operator of Skirting Ohio Law

By Erik W. Robelen — March 14, 2006 4 min read
  • Save to favorites
  • Print

The Ohio Federation of Teachers, long a vocal critic of charter schools, issued a report last week that portrays one for-profit charter operator in the state as far more concerned about making money than improving student learning. It argues that the schools it operates are nothing more than a “chain of company stores” in violation of state law.

The analysis follows a series of reports that the Ohio affiliate of the American Federation of Teachers has written in recent years criticizing White Hat Management Inc. The privately held Akron-based company operates 34 charter schools serving some 16,000 students in Ohio, as well as 20 schools in other states with 6,000 students.

“This report shows clearly that [White Hat Chairman] David [L.] Brennan has been allowed to circumvent numerous state laws, and that profit, not helping children learn, is the primary motive,” said OFT President Tom Mooney in a March 7 statement.

“Education Empire: David Brennan’s White Hat Management Inc.” is published by the Ohio Federation of Teachers.

The 82-page report, jointly prepared by the OFT and the Food and Allied Service Trades Division of the AFL-CIO, outlines a long series of charges about the company and its chairman.

Thomas F. Needles, a White Hat consultant, said Mr. Mooney has long been unfairly savaging the company.

“The theme is just that … there’s some grand conspiracy by Mr. Brennan and White Hat to somehow bilk the taxpayers,” he said. “It’s a patently absurd charge and one we reject categorically.”

He added, “You have to understand that it’s a series of vicious professional and personal attacks that are also replete with errors, omissions, and outright lies.”

Mr. Needles declined to go into detail, and neither the company nor Mr. Brennan issued a formal response to the report.

‘Company Stores’

The report charges that schools run by White Hat are not truly independent from the company. For instance, the report says the same nine individuals constitute the boards of eight White Hat schools. In addition, four of those trustees also serve on the boards of five others.

The report suggests that many of those board members were handpicked by White Hat.

The report says the name of each school operated by White Hat is a trade name registered by White Hat Learning Systems. The company has established a limited-liability company under the name of each school, the report says.

White Hat is the “sole vendor” for its charter schools, renting them buildings, selling them computers, books, and other supplies, and leasing them teachers and administrative staff, the report says.

And it says that White Hat has loaned substantial sums to five of its charter schools. Public school districts may not carry operating debt beyond the current school year, the report notes.

“The ability of a charter school’s board of trustees to negotiate fair and equitable contracts for its school is further compromised when they are indebted to the management company that operates the school,” the report says.

In an interview, Mr. Mooney said all of this amounts to a violation of state law. “The law says that a charter school has to be nonprofit, and have its own board,” Mr. Mooney said in an interview. “This is illegal because this is a chain of company stores. … The schools are not just operated by White Hat, they are owned by White Hat. … The veil has been removed.”

J.C. Benton, a spokesman for the Ohio Department of Education, said he had not reviewed the report.

“The state does not have a direct relationship with White Hat Management,” he said. “White Hat handles the day-to-day operations of some schools in Ohio. I’m not going to defend David Brennan or White Hat Management. The sponsors of the schools have control and they use White Hat, which provides services.”

Terry Ryan, the vice president for Ohio programs and policy at the Thomas B. Fordham Foundation, a Washington think tank that backs charter schools, said the union report is part of an ongoing battle between the OFT and White Hat Management.

“The union is out to try to bring down charter schools by attaching them to David Brennan,” he said. “I think he does things that make him an easy target.”

Mr. Ryan said that while he found some of the charges questionable or even “loopy,” others appear to show reason for legitimate concern, such as questions about the independence of the boards for the schools. He emphasized that he had not independently researched that information.

Mr. Ryan noted that the Fordham Foundation serves as an authorizer of charter schools in Ohio. “And, as such, we think it’s important that there be a separation between the governing authority for the school and the management company that runs it,” he said.

He added: “The way that the White Hat schools have operated has alienated folks in local communities. … They’re seen as outsiders or carpetbaggers. It’s the perception that I hear from people.”

The report cites many other issues of concern, from campaign donations Mr. Brennan and his family members made to state lawmakers writing charter legislation to the use of charter school buildings as collateral to secure a loan for one of his companies.

Related Tags:

A version of this article appeared in the March 15, 2006 edition of Education Week as Union Accuses Charter Operator of Skirting Ohio Law

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
Classroom Technology Webinar
Screen Time and AI: An Evidence Playbook for School Leaders
Get a clearer picture of the current policy landscape, a framework for evaluating new tools, plus language to use in the next board meeting.
Content provided by Instructure
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
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
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
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring

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

Law & Courts Trump Admin. Turns to Student Privacy Laws in Gender Identity Fights With Schools
The feds are increasingly citing student privacy laws in gender-identity battles with school districts.
8 min read
WASHINGTON, DC - AUGUST 17: The U.S. Department of Justice Building on August 17, 2026 in Washington, DC.
The U.S. Department of Justice Building on Aug. 17, 2026 in Washington. The Justice Department has teamed up with the U.S. Department of Education to fight school and state policies concerning transgender students it deems objectionable.
Anna Moneymaker/Getty Images
Law & Courts These Parents Want to Opt Their Kids Out of Ed Tech. Can They Win in Court?
Parents in a Pennsylvania district say ed tech distracts from more meaningful learning.
10 min read
Yair Lev stands by as a screen displaying an itinerary for a Lower Merion Board of School Directors meeting at the Lower Merion School District Administration Building on May 11, 2026, in Ardmore, Pa.
Yair Lev stands by as a screen displaying a document for a school district board of directors meeting at the Lower Merion school district administration building on May 11, 2026, in Ardmore, Pa. Lev is among a group of parents who have sued the Philadelphia-area school district seeking the ability to opt their children out of the required use of school technology.
Joe Lamberti/AP
Law & Courts Title IX Doesn't Require Transgender Athletes' Exclusion, Judge Rules
A federal judge dismissed a lawsuit from the Trump administration alleging California violated Title IX.
Kevin Rector, Los Angeles Times
4 min read
CLOVIS, CA MAY 30, 2026: Transgender athlete AB Hernandez, center, competed in three qualifying events at the CIF State Track Championship in Clovis, CA on May 30, 2026. Hernandez placed first in qualifying for the long jump on Friday. Hernandez competes in the finals on Saturday in the high jump, long jump and triple jump.
Transgender athlete AB Hernandez, center, competed in three qualifying events at the CIF State Track Championship in Clovis, Calif., on May 30, 2026. The Trump administration sued California over its policy allowing transgender girls to compete on girls' athletic teams. A judge has dismissed that lawsuit.
Tomas Ovalle / Los Angeles Times via Getty Images
Law & Courts Trump Admin. Says School District Facilitates 'Gender Transitions,' Files Suit
The lawsuit comes after several months of back and forth with the Kansas City, Kan., public schools.
Sofi Zeman, The Kansas City Star
2 min read
Acting Deputy Executive Associate Director at Homeland Security Investigations Matthew Millhollin holds a Department of Justice folder during a news conference to announce charges being brought against Chinese nationals involved in a marriage fraud scheme at the Department of Justice on Aug. 12, 2026 in Washington, D.C. The group have been accused of running a scheme where foreign nationals paid money to American citizens for fraudulent marriages in order to receive green cards then immediately filed for divorce once permanent residency in the U.S. had been established. (Photo by Samuel Corum/Sipa USA)
An official holds a Department of Justice folder during a news conference on Aug. 12, 2026 in Washington. The DOJ sued the Kansas City, Kan., public schools over guidelines addressing how school staff address students who request to go by pronouns that differ from their sex at birth.
Samuel Corum/Sipa USA via AP