Charter management organization
A charter management organization (CMO) is an educational organization that operates charter schools in the United States. Charter schools are public schools that operate independently of the local government school district.
A CMO contracts with a charter school to provide a specific service or set of services. They may not hold the charter except for in AZ.[clarification needed] By convention, a CMO manages at least three schools and serves at least 300 students. Additionally, they must be a separate business entity from the school.
Economist Milton Friedman in 1955 proposed that education could be improved by a universal school voucher program. A free market in primary and secondary education would allow consumers (parents) to choose among alternatives, stimulating competition and improvement. In 1974, Ray Budde, a professor at the University of Massachusetts Amherst, floated the idea of a charter school. In 1991, Minnesota enacted legislation that enabled charter schools. Other states followed.
Some commercial charter management organizations operate large networks of schools.
EdisonLearning was founded in 1992.
Many states have adopted laws that require that the holder of the school charter be a non-profit organization. In these instances, a charter school must form a 501(c)(3) non-profit organization. Typically this new business entity forms a school board to oversee the operations of the new public charter school. However, they may then choose to contract with a CMO to provide management related services.
Wisconsin, California, Florida, Michigan, and Arizona allow for-profit corporations to manage charter schools.
Vendor operated school
In some cases a school's charter is held by a non-profit that chooses to contract all of the school's operations to a third party, often a for-profit CMO. This arrangement is defined as a vendor-operated school, (VOS).
Distinction from education management organization
CMOs in some usages are distinct from EMOs (education management organizations). One authority on schools, Stanford University's Center for Research on Education Outcomes makes no distinction between terms. In its recent reports it describes CMO -- non-profit and CMO -- for-profit.: 2
- Jamison White (August 11, 2020). "Are There For-Profit Charter Schools? Dispelling The Myth". The National Alliance for Public Charter Schools.
- Woodworth, James L (2017). "Charter Management Organizations 2017" (PDF). Center for Research on Education Outcomes. Archived from the original (PDF) on 17 January 2018. Retrieved 23 January 2018.
- Kolderie, Ted (July 1, 2005). "Ray Budde and the Origins of the Charter Concept" (PDF). Education Evolving.
- O'Donnell, Patrick (March 3, 2017). "I Can charter schools turned over to Accel network run by former CEO of K12 Inc". Cleveland Plain Dealer. Retrieved 24 January 2018.
All agreed that Packard, by having years of charter school management experience and by having a larger network, would be able to reduce costs and save money.
- Huseman, Jessica (December 17, 2015). "These Charter Schools Tried to Turn Public Education Into Big Business. They Failed". Slate. Retrieved 23 January 2018.
- "CMO and EMO Public Charter Schools: A Growing Phenomenon in the Charter School Sector" (PDF). National Alliance for Public Charter Schools. Retrieved 26 January 2018.