School Entrepreneur Named to Be a Deputy Chancellor
By DAVID M. HERSZENHORN
Schools Chancellor Joel I. Klein yesterday appointed the former president of Edison Schools Inc., the world’s largest for-profit operator of public schools, as a deputy chancellor, perhaps the boldest move yet in the Bloomberg administration’s effort to increase the role of the private sector in managing city public schools.
The former Edison president, Chris Cerf, is a longtime friend of Mr. Klein and has been a consultant to the city’s Education Department since early this year, paid with private donations. He is part of a team that has been re-evaluating virtually every aspect of the overhaul of the school system in Mayor Michael R. Bloomberg’s first term.
You know about Edison Schools?
Edison's Failing Grade
Investors and school districts are ditching the country's leading public education privatizer
by Tali Woodward, Special to CorpWatch
June 20th, 2002
Edison Schools Failing?
A year ago, Edison Schools Inc. was flying high. With 133 schools under its control, Edison had quickly become the nation's largest for-profit manager of public schools. And the public education funding that the company was tapping into seemed to provide a potentially limitless revenue stream. Founder Chris Whittle had predicted that, by 2020, Edison would run one in ten public schools in the United States. The company was a hit with Wall Street: shares were trading at $38, up from $18 when Edison went public just over two years earlier.
Now shares of Edison are changing hands for about a dollar, the minimum price required to stay listed on NASDAQ. Edison has racked up $250 million in losses since it began. The company announced June 3 that it had secured the $40 million investment it needs to open school in the fall. But the futures of 74,000 kids in Edison schools from Maryland to California remain tied to a company that is financially unstable. Edison's economic troubles raise renewed questions about the wisdom of turning public schools over to for-profit corporations -- and could pose a major setback for the school privatization movement.
