School District cancels contract with company that ran alternative programs

The Philadelphia School District has severed ties with Community Education Partners (CEP), a for-profit firm that has operated a disciplinary school and other alternative programs for the last decade.

The district this summer notified the company that it was canceling its contract "for convenience," which is allowable.

CEP was paid $7.18 million last school year under its contract, which called for it to serve more than 1,000 public school students in one disciplinary school and three other "alternative learning academies" for those who had dropped out or were in danger of dropping out.

The dismissal of CEP does not mean the district is cutting back on the number of students in alternative schools, officials said. In fact, that number may rise, said Lisa Mastoon, a spokeswoman.

She could not say exactly why CEP's contract was terminated.

"The district has the opportunity to cancel contracts based on criteria agreed upon in those contracts," Mastoon said.

Students who were planning on attending the affected schools will return to the same schools in September, she said, but the programs will be run by different providers. One program will be taken over by the district and others given to firms that currently have alternative school contracts.

Parents were notified of the change two weeks ago and they "should not be concerned," Mastoon said. "It's going to be seamless."

Barbara Braman, CEP's senior vice president for policy, said the company was pleased to have worked in the district for a decade.

"For us, they have the right to [terminate the contract] and to decide where the services are best used and who they want to provide them," she said.

The district and company had been at odds and the disagreement had intensified in recent months as the district's alternative education office conducted reviews of its disciplinary school providers.

During a recent interview, Benjamin Wright, the district official who oversees alternative schools, noted that the company had submitted several binders of "rebuttal" to the district's findings. Wright declined to disclose what they were.

The company did not serve as many students as was prescribed under its contract, and parents often resisted sending students there, he said.

Braman declined to comment.

CEP most recently ran its disciplinary school, known as CEP Miller, at 4300 Westminster Ave., serving 400 students in grades 9 through 12, Braman said.

The company also operated three academies for 620 students who had dropped out or were in danger of dropping out. They were at 6404 Elmwood Ave., 4224 N. Front St., and 2101 S. Broad St.

The company notified the Pennsylvania Department of Labor and Industry by letter on July 29 that it was closing its schools in Philadelphia as of Aug. 30 and that up to 74 employees would be laid off.

"It is expected that these actions will be permanent," the company wrote in the letter.

The Nashville company began running a disciplinary program in Philadelphia in 2000. It was the district's first use of a for-profit management company, as it struggled for ways to deal with disruptive students. The district previously ran its disciplinary schools in-house.

When CEP first came to Philadelphia, it had a strong political sponsor in State Rep. John M. Perzel (R., Phila.), who wielded significant power as House majority leader. The company had support from other prominent Republicans, and from the Philadelphia Federation of Teachers and its former president, Ted Kirsch, who saw the program as a way to get chronic discipline problems out of the classroom.

Hired during Superintendent David Hornbeck's tenure, the company grew in importance and prominence under schools Chief Executive Officer Paul Vallas, who was Superintendent Arlene Ackerman's predecessor.

During the last two years under Ackerman, CEP's role has been modified and reduced, and other companies have been hired. At its height, CEP had a contract for 2,150 students, Braman said.

Abraxis, Camelot, Ombudsman, and Delaware Valley High School are among the other companies that operate alternative programs in the district.

CEP's disciplinary program included small group and direct instruction, and behavioral education, Braman said. Its programs for dropouts and potential dropouts offered flexible schedules and focused on preparing students for careers or college.