NATIONAL EDUCATION POLICY CENTER
Release November 26, 2013
Private Education Management
Organizations Running Public Schools Expand –
44 Percent of Charter School
Students in 2011-12 Attended Schools Operated by EMOs
New report shows
908,000 students in 2011-2012 attended privately-managed schools in 35 states
plus D.C. – a major increase from 733,000 enrolled a year earlier. Michigan (204 schools) Florida (177), Ohio (110) and Arizona (108) have the
most privately-managed schools.
An increasing number of for-profit education
management organizations are expanding into online teaching.
– Across the nation, schools managed by for-profit firms such as K12 Inc,
National Heritage Academies and Charter Schools USA, as well as nonprofit
education management organizations (EMOs) such as KIPP, continue to increase
the number of students they enroll, despite a scarcity of evidence showing
positive results. Students across 35 states and the District of Columbia now
attend schools managed by these non-government entities. Oklahoma and Tennessee
have added schools run by EMOs since the last edition of this report.
The report, Profiles of For-Profit and Nonprofit Education Management
Organizations: Fourteenth Edition – 2011-2012, was released today by the
National Education Policy Center (NEPC), which is housed at the University of
“There is growth in number of schools and students
served in both for-profit and nonprofit sectors, although growth among schools
operated by nonprofit EMOs continues to outpace the for-profit sector. Growth
has slowed for for-profits in brick-and-mortar school settings. The real growth
in the for-profit sector is with companies that operate virtual schools,” said
the report’s lead author Dr. Gary Miron, a professor of evaluation, measurement
and research at Western Michigan University. “The growth of virtual schools,
which is fueled by millions in advertising dollars, is astounding because of
the sketchy academic results reported by the schools that operate online.”
The report is the NEPC’s latest edition
in its series of profiles of EMOs, companies that are contracted to manage
charter schools and other public schools. The EMO sector emerged in the 1990s
as part of an effort to use market forces and private entities to reform public
Since the 1995-1996 school year, the
number of for-profit EMOs has increased from 5 to 97, and the number of schools
operating has increased from 6 to 840. Enrollment has grown from approximately
1,000 students in 1995-1996 to 462,926 in 2011-2012.
the actual number of for-profit
companies has grown very little
over the past few years, many of the large and medium-sized EMOs are expanding
into new service areas, such as supplemental education services and virtual schooling.
Schools was the largest for-profit EMO in 2011-2012 in terms of the number of schools it manages. The company
managed 89 schools during the 2011-2012 school year, but it has lost a number of
contracts since then. The
next largest for-profit operators in
2011-2012, in terms of numbers of schools, are Academica (76) and National Heritage Academies (68).
in terms of enrolled students, the largest EMO is K12 Inc., which operates
virtual schools. Because of the large enrollments in its schools, the total enrollment of K12 Inc.’s schools exceeded that of
any other for-profit
-- or nonprofit -- EMO, with 57 schools enrolling 87,091 students.
operators have shown
more robust growth in brick-and-mortar school settings than for-profit operators, both in
terms of new nonprofit EMOs and new managed
schools. A total of 201 nonprofit EMOs were identified and profiled in
this year’s report, including 31 large nonprofit EMOs, 68 medium-sized and 102
small nonprofit EMOs.
overall number of students in nonprofit EMO-managed schools has increased
dramatically in recent years, from 237,591 in 2009-10 to 445,052 during the
2011-2012 school year. KIPP, the Knowledge is Power Program -a national charter school network -- remained the largest nonprofit EMO, with
98 schools and just over 35,045 students in 2011-2012.
The number of virtual schools operated
by EMOs increased from 60 in 2009-2010 to 91 in 2011-2012. This represents 10.8
percent of all schools managed by for-profit operators.
As noted, the largest for-profit operator is K-12
Inc., which operates full-time virtual schools. It should be noted that some of
the largest for-profit EMOs are beginning to lose contracts with brick-and-mortar
schools and are shifting attention into virtual education. "Most virtual schools are charters, are full-time, and
are statewide in their scope,” said the report’s coauthor, Charisse Gulosino of
the University of Memphis. “As it stands, research, policy and practice have
not kept pace with virtual schooling’s growth --reflecting the need for
deliberation about its impact and implications for public K-12 education.”
Report is Available on the Web
The report is the nation’s most comprehensive
examination of the private entities that operate public schools.