White Hat unhappy
The Columbus Dispatch - February 10, 2012 16:02 PM
Attorneys for White Hat, Ohio's largest for-profit charter-school management company, dubbed as "perplexing" a judge's order for them to turn
over detailed financial records showing how they have spent millions in tax dollars.
"White Hat Management takes strong exception to the decision rendered by Judge (John E.) Bender, and is considering its legal options," said Charles R. Saxbe, a Columbus attorney representing the Akron-based company owned by major Republican donor David L. Brennan.
Bender gave the company until March 6 to provide its tax returns, building leases, transactions with its subsidiaries and other information to 10 privately operated, tax-funded charter schools who contracted with White Hat to manage their schools. The Hope Academies and Life Skills Centers are located in Cleveland and Akron.
James D. Colner, attorney for the charter schools, said, "When Judge Bender's decision is upheld on appeal, it will affect positive reform of Ohio's charter school laws for the betterment of children and the parents who send their children to these public community schools and require White Hat and others like them to become transparent and account for how every tax dollar is spent,."
For nearly two years, White Hat has fought disclosing the information, arguing that they are a private company and the information is proprietary. Under management contracts with the company, the schools paid White Hat 96 percent of the state aid they received to handle hirings, payroll, rent and other management services.
Karen S. Hockstad, another attorney for the schools, said the records are needed so the schools can determine whether it is "being spent appropriately on educating kids."
Two of the schools have since closed because of poor student performance and five others are struggling to meet state benchmarks.
Bender found that since the money was public, White Hat was obligated to dislose how it was spent.
Saxbe argued that "Judge Bender’s conclusion that anyone doing business with the State of Ohio can be classified a “public official” will raise major obstacles for private citizens and companies whose expertise is sought by state and local governments in the delivery of important public services."
Bender has asked attorneys for both sides to meet March 7 to discuss whether the order has been met.
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