White Hat CEO denies operating outside law

The OFT attack reflects a typical union mentality, Mark Krohn said.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- The chief operating officer of White Hat Management, Ohio's largest charter school operator, denied that its schools are operating outside state laws regulating charter schools.
Mark Krohn, speaking in reaction to an Ohio Federation of Teachers attack on White Hat and its founder, David Brennan, pointed out Wednesday that various state agencies have oversight of White Hat's charter schools and have always found them to be in compliance with the law.
White Hat, based in Akron, runs 33 charter schools in Ohio, including its Life Skills Centers in Youngstown and Warren.
The OFT contended White Hat schools aren't independent, nonprofit entities as state law requires but are tightly controlled by White Hat.
The independence issue is something that White Hat hashed out with the Internal Revenue Service over an 18-month period, Krohn said, noting that it resulted in a change in agreements between White Hat, which provides all management services for a fee, and the individual schools.
Those schools now can opt out of the White Hat contract and take over all of their operations.
State subsidy funds don't flow directly to White Hat, as the OFT contends, Krohn said, explaining that the money goes to the individual schools that pay White Hat a management fee to provide a building, equipment and even teachers and administrators.
The schools can choose to keep that money and buy their buildings and hire their own staffs, Krohn said.
Sharing directors
The OFT said that many of the White Hat schools share the same people on their boards of directors.
Krohn said there is a commonality on many of the school boards, but that isn't something discouraged or banned by Ohio.
The OFT alleges improper activity, but 20 White Hat schools got state certificates last year for excellence in financial reporting, Krohn said.
He called the OFT attack "a very typical union mentality" in which the other guy is attacked rather than focusing on improvement within the public schools' own program.
gwin@vindy.com