The story of Pearson’s rise is very much a story about America’s obsession with education reform over the past few decades.
Ever since a federal commission published “A Nation at Risk” in 1983 — warning that public education was being eroded by “a rising tide of mediocrity that threatens our very future as a nation and a people” — American schools have been enveloped in a sense of crisis. Politicians have raced to tout one fix after the next: new tests, new standards, new classroom technology, new partnerships with the private sector.
K-12 superintendents and college administrators alike struggle to boost enrollment, raise graduation rates, improve academic outcomes — and to do it all while cutting costs.
In this atmosphere of crisis, Pearson promises solutions. It sells the latest and greatest, and it’s no fly-by-night startup; it calls itself the world’s leading learning company. Public officials have seized it as a lifeline.
“Pearson has been the most creative and the most aggressive at [taking over] all those things we used to take as part of the public sector’s responsibility,” said Michael Apple, a professor of education policy at the University of Wisconsin-Madison.
Pearson declined to answer specific questions about many of its contracts and business practices.
But several top executives said they always work toward deals that benefit not just the company but its public-sector partners — and above all, the millions of students who use Pearson products daily.
“The public trust,” Senior Vice President Shilpi Niyogi said, “is vital to everything we do.”
TESTS, TEXTS AND ATTENTION DEFICIT
Pearson wields enormous influence over American education.
It writes the textbooks and tests that drive instruction in public schools across the nation.
Its software grades student essays, tracks student behavior and diagnoses — and treats — attention deficit disorder. The company administers teacher licensing exams and coaches teachers once they’re in the classroom. It advises principals. It operates a network of three dozen online public schools. It co-owns the for-profit company that now administers the GED.
A top executive boasted in 2012 that Pearson is the largest custodian of student data anywhere.
And that’s just its K-12 business.
Pearson’s interactive tutorials on subjects from algebra to philosophy form the foundation of scores of college courses. It builds online degree programs for a long list of higher education clients, including George Washington University, Arizona State and Texas A&M. The universities retain authority over academics, but Pearson will design entire courses, complete with lecture PowerPoints, discussion questions, exams and grading rubrics.
The company is even marketing a product that lets college professors track how long their students spend reading Pearson textbooks each night.
Pearson works with for-profit career colleges, too: Its marketing materials boast that its consultants can help them “stay one step ahead” of federal regulations.
Indeed, Pearson has its hand in so many education services that corporate executive Donald Kilburn confidently predicted on an earnings call last summer that the North American division would flourish even if states and school districts had to cut their budgets.
As long as sales reps can show that Pearson products get results, Kilburn said, “the money will find a way to come to us.”
But the POLITICO review found that public contracts and public subsidies — including at least $98.5 million in tax credits from six states — have flowed to Pearson even when the company can’t show its products and services are producing academic gains.
The state of Virginia recertified Pearson as an approved “school turnaround” consultant in 2013 even though the company had, at best, mixed results with that line of work: Just one of the five Virginia schools that Pearson cited as references improved both its math and reading proficiency rates against the state averages. Two schools lost ground in both math and reading and the other two had mixed results. State officials said Pearson met all the criteria they required of consultants.
Across the country, Pearson sold the Los Angeles Unified School District an online curriculum that it described as revolutionary — but that had not yet been completed, much less tested across a large district, before the LAUSD agreed to spend an estimated $135 million on it. Teachers dislike the Pearson lessons and rarely use them, an independent evaluation found.
And universities continue to hire Pearson to manage online programs even though the company has routinely failed to hit its contractual targets for student enrollment. The higher those targets are, the more lucrative the deal appears to the university — and the more willing administrators may be to promise Pearson a cut of up to 60 percent of student tuition.
If Pearson fails to bring in the promised number of students — and David Daniels, a managing director, acknowledged the targets are often “very ambitious” — it rarely gets sanctioned.
At Rutgers University in New Jersey, for instance, Pearson is in charge of recruiting students to online degree programs and counseling them so they stay engaged and enrolled. Yet if Pearson falls short of its recruitment or retention goals, its share of student tuition isn’t reduced. On the contrary, the contract allows Pearson’s cut of tuition to be increased in the face of disappointing numbers, keeping the revenue flowing. Last year, enrollment was about 200 students short of the minimum stipulated in the contract and nearly 1,000 students below the goal.
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