Oregon Public Broadcasting

Oregon's schools have at least two really big problems heading into the new school year: a graduation rate of only 66 percent, and a budget crisis of historic proportions. Some education officials say you can address both problems with one fix: getting more students to take classes online. Rob Manning reports on a new statewide online option.

Charter schools and local school districts have offered online classes for years. But a publicly-run online program for all of Oregon is new.

The Oregon Virtual Education Center was born literally across the street from high-tech giant, Intel, at the Northwest Regional Education Service District, in Hillsboro.

The ESD's Paul Nelson says the center is starting with just five courses. Mainly those that can high schoolers need for graduation — but sometimes have difficulty with. Like Algebra 1, 9th grade English, and biology.

Paul Nelson: "Because that's the number one roadblock in high school, or the number one indicator of kids that would drop out later on, is if they would fail courses as a freshman. So we have core freshman courses that are available."

Nelson says so long as there's an emphasis on personal contact between teachers and students – online education is a good option for most students.

Paul Nelson: "Virtually every study I've seen has shown that students enjoy taking courses online, it may not be their whole educational experience, but where it's appropriate, it fits their schedule, they enjoy that and it works."

Nelson says the center can also save money. He says it won't this year, when there are only 200 to 400 students enrolled. But he says a study of Florida's enormous virtual school found savings there of 20 percent.

Paul Nelson: "The savings were realized because students didn't have to be bussed, you didn't have to buy buildings, or paint them, or air-condition them, or power them."

Nelson says Oregon's system will save in similar ways, and it will take advantage of an existing state library of online curriculum and free applications.

But Kelly Carlisle who supervises Salem-Keizer's online program, is doubtful. He says while there are some savings, there are also additional costs - technology and training, for instance.

Kelly Carlisle: "I'm not convinced we're going to see savings to the degree of 20 percent result. But even if there's a small savings, that's something to be happy about."

On the academic bottom line, Carlisle says he's seen mixed results.

Kelly Carlisle: "We actually are looking at the data, and right now we are not satisfied with the results of the online courses, in terms of the numbers of students who are successfully completing the classes."

Carlisle says online courses can be harder for struggling readers. That's something the Virtual Education Center says it's planned for.

James Sager is a top administrator at the Northwest ESD, and a chief architect of the new Virtual Education Center. He says the new ESD program has quietly but quickly gathered support from school leaders all over Oregon.

James Sager: "Part of it may be that we have an opportunity here where all the stars are aligned. That people recognize the value of an online option, we are facing ever-growing deficits, and yet all educators are still so committed to providing that quality and that opportunity for all students."

Sager calls it a "public option." And surprisingly, with a moniker like that, it has not run into trouble with conservatives.

Rob Kremer is with the online charter school, the Oregon Connections Academy.

Rob Kremer: "I don't see what the ESDs are planning as being a threat at all to the virtual charter schools. If they're offering good, quality courses that kids can take advantage of and that they can get a better education because they took these courses online through the ESD, we're all for it. I think that's terrific, and I encourage them to develop their online courses."

The Oregon Education Association likes the program, too, for a different reason: because it would employ union teachers, which charter schools typically don't do.

The new ESD program doesn't need approval from members of the state board of education. The board hasn't weighed in directly on the center, but has generally supported a multitude of options.

Board chair, Brenda Frank, gave only lukewarm support for the new virtual center after a recent meeting.

Brenda Frank: "It's an option, that's exactly what it is. It's not the only one out there."

The center's backers are sensitive to a concern they're hearing, that school districts could potentially steer students interested in online learning toward the virtual ed center, which costs districts just $300 a class. That's a lot less than what districts would lose — $6,000 — if the student enrolled in an online charter school.

If the virtual ed center winds up growing on the strength of its low price,  "public option" might not be the only label it gets.

One backer called the ed center the future "WalMart" of Oregon's online schools.