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Philly nations largest privatization experiment { May 23 2003 } Original Source Link: (May no longer be active)    http://www.newsday.com/news/nationworld/nation/wire/sns-ap-philadelphia-schools,0,1618150.story?coll=sns-ap-nation-headlines http://www.newsday.com/news/nationworld/nation/wire/sns-ap-philadelphia-schools,0,1618150.story?coll=sns-ap-nation-headlines Philly Schools Chief Wants Fees Slashed By DAVID B. CARUSO Associated Press Writer May 23, 2003, 1:28 PM EDT PHILADELPHIA -- After just a year on the job, several companies participating in the nation's largest experiment in school privatization were asked to take a pay cut. Philadelphia schools chief Paul Vallas said this week he wants to halve the $20 million in fees that are paid to several corporations and universities hired last year to operate 45 of the city's 265 schools. The fees are paid on top of the schools' regular budgets. Under Vallas's proposal, all outside school managers would get about $450 extra per pupil. Currently, Edison Schools, the system's biggest and best-paid school management contractor, gets roughly $881 per pupil. Victory Schools, another provider, gets $857. Several companies declined to publicly criticize the proposal, saying they preferred to negotiate their fees in private. Vallas said the companies have made reforms but charge more than it would cost the district to run the schools itself. "Our general impression was that they were overcompensated last year," Vallas said. "If the argument is that private management is superior to public management, and they can offer a better education for the same amount of money, great. But $800 to $900 more per pupil is not the same amount of money." Some supporters of the reform effort said they were alarmed by the fee cuts. A spokesman for Senate Majority Leader David J. Brightbill noted that the state's multimillion dollar bailout of the Philadelphia schools a year ago required private firms to play a role in the district's reconstruction. "I think it is fair to say that we are not at all certain there has been enough time to evaluate their effectiveness," said Brightbill's chief of staff, Erik Arneson. Victory Executive Vice President Erik Heyer said his New York-based company could make do with less at its five schools, but at the expense of its educational program. Edison spokesman Adam Tucker wouldn't say whether his company, which manages 20 city schools and is also based in New York, would quit if its fees were cut. But, he said, "this has got to be a deal, a partnership, that works on the academic side and the financial side." * __ On the Net: School district: http://www.philsch.k12.pa.us Copyright © 2003, The Associated Press

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