The decades old argument is that private companies should not be allowed to manage public schools or run charter schools because they will earn profits. The debate has always been twisted and misguided on this point. The focus should not be on whether private management of public schools yields profits, rather we should be asking ourselves why there are inefficiencies and ineffectiveness in public schooling that lead to the probability of excess profits. If a private entrepreneur or corporation is awarded a contract by a school system to operate schools or deliver certain school functions and this subsequently leads to improved operations and school effectiveness utilizing fewer public dollars per pupil, then school officials should be taking notes. Where there is private sector success in public school management, administrators and superintendents have a mandate to achieve at least the same degree of success for those schools which are managed as traditional public schools. They must be accountable for not only replicating the successes of private enterprise in public education, but also for eliminating the financial and operational waste that clearly exists in its systems and structures. While critics have complained for decades about private sector participation in public schooling, not as many voices have rallied against the perennial waste in school budgets. This is perhaps the best kept secret by those who have a vested interest in maintaining the status quo in American public education.

Traditional school supporters want the public to believe that most of what’s wrong with our schools is insufficient funding. Even though substantial amounts of money is justifiably being dedicated to rebuilding school facilities, expanding curriculums, and enhancing teacher training and development, there is still a significant amount of money being wasted on bloated vendor contracts, overpaid administrators, idle staff, vacant physical space, unaccounted for equipment, unnecessary supplies, etc. Although this is not at all the reality for a vast number of schools, it is certainly the experience of far too many schools in communities all across the country – we’ve all seen the reports. Schools are not unlike organizations across other professions and sectors -- the largest percentage of their budgets is allocated to personnel costs. So what you have are highly paid administrators, faculty, and staff, and not enough dollars to accommodate the tools and resources needed to serve the students in the classroom. Not enough attention is given to the elimination of financial waste in school budgets, primarily because administrators are not properly trained in financial management and analysis. This would explain why private companies and entrepreneurs can quickly identify cost savings and revenue opportunities in public school management. Financial managers routinely cut costs, trim budgets, and increase revenue streams without comprising the delivery of their organizations’ products and services. They bring this same level of expertise with them in their attempts to improve public schools for America’s youth without sacrificing the uniqueness of public education.