School tutoring firm ousted
By Diane Rado and David Mendell, Chicago Tribune, October 23, 2005

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In yet another blow to the Chicago Public Schools' tutoring program, the state is kicking out a top national tutoring firm from five Chicago schools after investigators found evidence the company had hired school employees to steer business its way.

The Illinois Board of Education on Friday accused Newton Learning of violating ethics rules that govern free tutoring programs mandated for poor children.

It also ordered the school system to reopen tutoring registration in at least seven schools where alleged violations occurred, including after-school programs run by other firms besides Newton.

A spokesman for the district said the matter would be investigated by the system's inspector general.

In a letter sent Friday to Newton, state investigators alleged that school employees hired by Newton had altered parent selections on tutor sign-up forms to specify Newton as the tutoring firm of choice, instructed parents to select Newton for their child's tutoring, and sent home sign-up forms with Newton already selected as the tutoring firm.

The board did not accuse Newton of specifically telling employees to engage in those activities, nor did it outline precisely what the employees received as "site directors" in charge of recruitment.

But the board cited company documents showing that such directors receive $500 to start up tutoring programs as well as $3 per child signed up. It was unclear Friday how many children were enrolled with Newton or how much Newton would receive for tutoring services this school year. Parents could choose from about 45 tutoring firms, and costs ranged from $380 per pupil to $1,865 per pupil. The federal government mainly covers the cost of the program, with grants to school districts with low-income children.

Under state ethics rules for the tutoring program, firms can hire school staffers to provide instruction, but not engage in recruiting. The idea is that no firm should be given unfair access to students through use of school personnel.

Newton was notified it will be banned for the 2005-06 school year from these elementary schools: Madison, Graham, Nash, Schneider and Lathrop Academy.

"Essentially, we're taking the strongest action that we have the ability to take, the termination action, at these particular schools," said state board general counsel Jonathan Furr.

Newton can appeal the action and request a hearing, Furr said. State rules give the firm 30 days before it could be removed, but Furr said he hopes to negotiate an agreement to remove the firm immediately.

A Newton official said late Friday that the company is reviewing the state's letter and would look into the concerns raised.

"We'll certainly investigate this matter very thoroughly," said Laura Eshbaugh, an executive vice president at New York-based Edison Schools, a private manager of public schools.

Newton Learning is a division of Edison and was the largest Chicago tutoring provider last school year, receiving $13.8 million to serve more than 8,000 children.

Under 2002 No Child Left Behind education reforms, free tutoring in math and reading must be made available to low-income children in schools that consistently fail to meet testing and other standards.

The requirement has spawned a lucrative industry, with hundreds of millions of dollars available for private tutoring firms nationwide.

The state began investigating Newton this month after receiving complaints about the firm's enrollment practices, Furr said.

At Graham, a school coordinator for all tutoring activities also served as a Newton recruiter and "admitted to revising enrollment forms to change a parent's selection to Newton Learning," according to the state board's letter.

At Madison, members of the school's local council, an elected governing board with power over finances, were hired as Newton recruiters, after which the council chose Newton Learning to be the school's "selected" tutoring provider, state investigators found.

State board officials said they also uncovered problems with Newton and other tutoring providers at other Chicago schools, though the most serious action was taken at the five schools.

The state also accused Newton of misrepresenting its services in its application to the district by saying that one certified tutor would be available for every 10 students. But investigators found that Newton planned to use one tutor and one aide in classes of 20 students.

Chicago Public Schools spokesman Peter Cunningham said the district would "cooperate fully to ensure the way this was done was legal, ethical and practical. Until we know more about what happened, we'll have to await the state's findings."

In Illinois alone, school districts are expected to spend some $60 million on private tutoring this school year, with the average cost per student about $1,515. Chicago will provide the bulk of that tutoring.

Chicago's tutoring program has been in turmoil this year.

Last week, the district said about 17,000 students who applied for after-school tutoring would not receive the service because, in part, more parents and students chose more expensive private firms.

And in March, Chicago Public Schools yanked Platform Learning, another prominent tutoring firm, from seven elementary schools, arguing the company had failed to perform.

drado@tribune.com
dmendell@tribune.com

Copyright © 2005, Chicago Tribune

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