Thursday, May 15, 2003

Chris Whittle promises profits soon, but I see that his "for-profit" company Edison Schools is still in the red, according to The New York Times:

The company's net loss for its fiscal third quarter, which ended on March 30, was $6.4 million, exactly half the size of its loss in the same quarter last year, on revenue of $108.4 million.

For the nine months that ended in March, the company lost $35.2 million on revenue of $291 million, down from a loss of $37.1 million on revenue of $327.3 million in the same period a year earlier....

Edison's effort to rein in its growth in pursuit of profitability was evident in the continuing shrinkage of its revenue, as it continued to close out unprofitable management contracts and it was unable to renew a few other contracts around the country. Net revenue in the third quarter fell more than 10 percent from the same period a year earlier....

Every year, all over the country, tax increases and bond issues are rejected as ways of dealing with school budget shortfalls; taxpayers, having heard decades of right-wing propaganda about "government waste," insist schools should "live within their means."

So why can't Edison Schools live within its means? And if it can't, why do conservatives lavish it with praise?

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