School Choice & Charters

K12 Inc., Ga. Cyber Academy Contract Battle Brews

By Alyson Klein — August 20, 2019 6 min read
  • Save to favorites
  • Print

Students locked out of their school’s computer systems. Educators unable to get access to some students’ records. Parents receiving emails asking that they return their children’s laptops.

That’s the state of play as K12 Inc., a major for-profit provider of online education, is in the midst of an acrimonious split with the Georgia Cyber Academy. The school, which serves about 11,000 students, is one of the largest virtual schools in the country.

To be sure, it’s hardly unusual for a vendor and charter school operator to go their separate ways. But it’s rare for both sides to be venting their frustrations so openly.

“This is the most public split between a vendor and a school that we’ve seen play out,” said Corrie Leech, the director of communications for the National Association of Charter School Authorizers.

K12 Inc. said the cyber academy was warned about potential disruptions if it withdrew from the company’s platform—a step K12 says violated an agreement.

The company has faced sharp criticism in a number of states—as have other operators of online charters—over its schools’ poor showing on state measures of academic progress, and questions about whether big public investments in its programs make sense. The company has argued that state accountability systems don’t provide an accurate gauge of its schools’ performances, and that its services are valued by parents whose children have struggled in traditional academic settings.

For about a dozen years, K12 Inc. managed the Georgia Cyber Academy, supplying not only the curriculum, but other services, including financial and human resources. But during that time, the school never met the academic targets in its charter, said Mike Kooi, the school’s executive director.

So last school year the board of the cyber charter school took over management from K12 Inc., and began exploring other options, even as the school continued to use K12’s curriculum, enrollment portal, and other services.

Choosing a Curriculum

Georgia Cyber Academy officials became convinced that a number of other curriculum providers, including Edgenuity and the Florida Virtual School, yielded better student results—and cost a lot less money—than K12, Kooi said. In fact, the new curricula that the school has elected to go with would cost just $5.8 million, as opposed to the $24 million it was paying K12, Kooi said.

“We were way overpaying for curriculum that wasn’t aligned to state standards and was not serving our students,” Kooi said.

K12 Inc. sees things differently. Recent academic improvements at the school can be traced directly to its use of K12’s curriculum, and to the academic supports the company offers, wrote Kevin Chavous, the president of K12 Inc.'s managed public school team, on the charter academy’s Facebook page.

The school used the company’s curriculum through most of the 2018-19 school year and posted gains, added Michael Kraft, a company spokesman.

Outside validators have found the company’s curriculum is “properly aligned” to state standards, said Chavous. What’s more, he said the prices the company charges are “very competitive” with other charter school operators, especially given some of the “behind-the-scenes” services K12 Inc. offers.

Georgia Cyber Academy purchased new tech platforms and new curriculum earlier this year. K12 saw that as a violation of its agreement with the school to serve as its “exclusive provider” of educational curriculum and technology through the end of the school year, which just started on Aug. 5, Kraft said. The company filed a demand for arbitration.

“While we are presently unable to predict the outcome of this arbitration, what we do know is the board of GCA school has already engaged other service providers for the upcoming school year,” Nate Davis, K12 Inc.'s CEO, in a recent call about the company’s earnings report. “These include providers for curriculum, computer equipment, and other managed school services.”

Digital Lockout

In the meantime, K12 Inc. is making life difficult for the cyber academy, the school contends.

The company has shut down student computers, the cyber charter said in a press release. The academy says K12 Inc. has also replaced login screens with a “caustic note” asking parents to return the computers, and “threatened” to come to students’ homes to get them, the statement said. It has locked the cyber charter’s employees out of their emails. It has shut students out of state-funded dual enrollment courses accessed online, keeping some students from accessing assignments they needed to complete, the school says.

Georgia Cyber Academy officials believe that K12 Inc. is trying to retaliate for the curriculum change, calling the company’s actions, “purposeful, retaliatory, and wholly indefensible” in the press release.

Kraft, the company spokesman ,said K12 Inc. warned the charter school in advance that withdrawing from its platform would disrupt students’ learning experience.

That move “triggered a standard course cancellation process,” the company said in a statement. “This included a computer freezing/reclamation process for the computers that K12 loaned to GCA students and are configured to work with K12’s curriculum.”

The state’s charter authorizer, the State Charter Schools Commission of Georgia, has backed up the Georgia Cyber Academy. The commission gave K12 until Aug. 2 to release students’ and financial records back to the school. When the company did not appear to comply, the commission sent a follow-up letter on Aug. 7, telling the company that it could be found in violation of state law if it did not return GCA’s “lawful property.”

The company said that the cyber academy isn’t being specific enough in its records ask.

“K12 has consistently told GCA and the State Commission that K12 intends to provide GCA with access to GCA’s student records and school financial records once it receives a specific written request to do so that identifies the records being sought,” the company said in a statement. “Thus far, all K12 has received is a generalized request that is not in compliance” with Georgia’s open records laws. “K12 will comply with the law.”

And K12 told the Atlanta Journal Constitution that the agency was operating on misinformation from the school and that it hoped to “correct the record” in a meeting.

Parents Take to Facebook

On social media, some families are complaining that their students are unable to complete their school work.

“My high schooler is finishing up a summer school dual-enrollment course and this is finals week! His laptop was locked down with ZERO notice,” wrote one woman who identified herself as a parent.

Others worried the company is tarnishing the school’s reputation. “Shame on you K12, this was VERY UNPROFESSIONAL to post this here on FB right before our students start school,” wrote another, referring to a Facebook post written by Chavous that accused the school of “questionable” practices. “What is your motivation behind this? To scare us, make us parent[s] question our educational choice?”

But another poster, who also identified herself as a parent, said she was “bummed” that the cyber academy was no longer part of K12 because her son had enjoyed the K12 curriculum.

Kooi said the school is working to make sure students have access to the materials they need.

“We are managing under the circumstances,” he said. “We’re getting computers on to people, and we’re doing the things we need to do to make sure our students are being served.”

Coverage of how parents work with educators, community leaders and policymakers to make informed decisions about their children’s education is supported by a grant from the Walton Family Foundation, at www.waltonk12.org. Education Week retains sole editorial control over the content of this coverage.
A version of this article appeared in the August 21, 2019 edition of Education Week as K12 Inc., Ga. Cyber Academy Contract Battle Brews

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
From Student Trends to Counselor Action: Turning Insight Into Impact
Find out what is changing in how students approach planning for life after graduation and how schools can help.
Content provided by PowerSchool
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
McKinney-Vento Transportation Strategies: Managing Cost & Protecting Access
Explore McKinney-Vento transportation strategies to manage costs, respond quickly to changing needs, and protect student access.
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
Families & the Community Webinar
Celebrate Family Engagement Day With Strategies That Work
Join National PTA and AASA to explore practical systems-wide family engagement strategies in celebration of National Family Engagement Day.

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

School Choice & Charters IRS Will Go ‘As Broad As We Can’ With Federal K-12 Choice Rules
Federal regulators want K-12 students to spend tax-credit scholarship funds on “a large range of educational needs."
3 min read
The exterior of the Internal Revenue Service (IRS) building in Washington, is photographed March 22, 2013.
The exterior of the Internal Revenue Service (IRS) building in Washington on March 22, 2013. An IRS official on Thursday said forthcoming guidance on federally backed K-12 scholarships will outline how they can cover "a large range of educational needs."
Susan Walsh/AP
School Choice & Charters After Elections, Democrats Will Run School Choice Programs They've Blasted
Democrats have criticized school choice for a long time. Now, they'll be in charge of some big programs.
6 min read
Democratic Texas gubernatorial candidate Gina Hinojosa speaks to supporters at an election night event in Austin, Texas, Tuesday, Nov. 3, 2026.
Texas Gov.-Elect Gina Hinojosa speaks to supporters at an election night event in Austin, Texas, Tuesday, Nov. 3, 2026. The Democrat pledged to repeal her state's private school choice program while on the campaign trail.
Ashley Landis/AP
School Choice & Charters A Public School District Wants to Maximize Federal Choice Funds. Here's How
Indiana's largest district is laying the groundwork for big investments through the new federal tax credit program.
6 min read
Image of a funnel with money slices flowing through onto student desks
Collage by Laura Baker/Education Week + Getty
School Choice & Charters Public Schools Are Prepping for Federal Choice Cash. They Still Might Not Get It
Educators in states that haven't opted into the new federal program are preparing for their students to benefit.
6 min read
A photo collage of a 4 pane window on top of a ghosted road map. Each window pane shows a different scene. Clockwise from left: mother holding the hand of her young child as they cross a cross walk toward a school building, middle school boy working a tutor, back of school bus on a rural road, and the back of a young girl working with objects.
Collage by Gina Tomko/Education Week + Canva