Education Or Business? Valley Joins Feeding Frenzy Among Tutoring Firms Competing For Millions Of Tax Dollars

FRESNO (Sunday, January 29, 2006) - Newly married and with a baby on the way, Tom Filer turned his back on a lucrative insurance company job to become a math tutor.

"My family was fit to be tied," Filer recalls.

That was 16 years ago, and Filer's seemingly rash act has paid big dividends.

As co-owner of Math Crazy, Filer's home-based operation has grown to five centers in Fresno, Clovis, Madera and Visalia. And he plans to open 12 more over the next two years, with possible locations in Bakersfield, Los Angeles, Merced and Stockton.

"This is one of those situations that has just snowballed," he said.

Call it an avalanche.

The for-profit tutoring industry has grown by double-digits nationally, fueled by highly competitive parents, low-achieving students and tougher academic standards.

Nationwide, experts estimate the tutoring industry's worth at $4billion and growing.

Locally, the number of tutoring companies has more than tripled over the past two decades and includes franchises from some of the nation's largest players: Kumon, Sylvan and Huntington.

In the Fresno/Clovis area, tutoring centers have found ripe territory.

The Fresno Unified School District is making $1.5 million available to help struggling students hire private tutors under the federal No Child Left Behind Act.
And at the perennial high-achieving Clovis Unified School District, eager parents make good use of extra help to boost their children's performances, even if it comes with a hefty price tag.
Tutoring can cost anywhere from $40 to $75 an hour.

Some parents like Michelle Thomas are spending nearly $400 a month on tutoring. To her, it's money well-spent.

Although she admits her two sons, ages 6 and 13, get good grades, she said she wants to sharpen their skills in reading, vocabulary, grammar and writing.

She also does not want them to fall behind.

"I understand that their teachers don't always have a lot of extra time to help," said Thomas, a family practice physician. "So, if this can get them to where they need to be, then I will be thankful."

Thomas' sons -- one attends Clovis Unified and the other a private school -- are enrolled at the Tutoring Club in Clovis, one of the area's newest centers.

Bill and Cheryle Syvertsen, owners of the Tutoring Club, launched their new venture out of a desire to continue their passion for teaching.

Both are longtime educators who liked the Bay Area-based franchise's academic programs and its reputation as a fast-growing company. The Tutoring Club was rated as one of the top 10 new franchises in 2004 by Entrepreneur Magazine.

Open since May, their tutoring center has quickly become popular, drawing students from the Clovis, Fresno, Sanger and Central school districts and the foothills.

Tutoring Club parent Linda Elia hopes the center will alleviate her worries about tougher academic standards, including the high school exit exam.

"My 12-year-old is already doing math that is way beyond me," she said. "I can't help him, so I need someone who can. The standards are getting higher and stricter for everyone, so if I can give him a little extra help now it is going to help him later."

But as the tutoring industry grows so do concerns from education experts.

The federal No Child Left Behind Act has spawned a feeding frenzy among some tutoring companies competing nationally for millions of taxpayer dollars.

As part of the law, parents of students in low-performing schools have the option of moving their children to another school or receiving free tutoring services.

Fresno Unified is currently working with 14 tutoring companies to deliver those services.

But the race for those dollars is heating up.

"We had a situation where two providers were fighting over the same list of students," said Barbara Bengel, the district's assistant superintendent for state and federal programs. "It can be become very competitive."

While Bengel supports parents having the option of private tutoring, she is concerned that not all tutors are credentialed teachers. Federal law doesn't require it.

"In the classroom the teacher knows that child best, they know what their weak points are and how to meet those needs," Bengel said. "When you have outside providers, you have to do a lot to make sure you are giving the child what they really need."

Others share similar concerns.

Kathryn Wage, a speech pathologist and director of the Center for Communication Skills in Fresno, said parents should think carefully about what type of academic help their children may need.

"If a student has missed 20 days of school or changed districts a lot, that is different than being behind because they may have an underlying language or learning disability," Wage said. "A catch-up program might be helpful for some students, but not for all."

Wage, who has worked in education for 30 years, also realizes the factors feeding the tutoring industry are not going away anytime soon.

"The No Child Left Behind Act along with California's testing practices and now the graduation requirements are all crashing down on students who for whatever reason are not making it in the current system," Wage said. "Now someone's problem has become an opportunity for a new business."

Tutoring center owners say many of their tutors are retired teachers or college students with expertise in multiple subjects. They also say they are providing a valuable and necessary service that is a complement to schools, not a replacement.

Education is important, they say, but it's also a business.

Jay Mistry, founder of two technology companies in New Jersey, recently relocated from the Garden State to open his first Huntington Learning Center franchise in Fresno.

Mistry chose the high-profile intersection of Champlain Drive and Perrin Avenue for obvious reasons. The area is one of the city's hottest commercial centers, and it's in the much-desired Clovis Unified School District.

Inside Mistry's new 2,500-square-foot center are neatly arranged desks, chairs, wipe boards and computers. Well-placed window signs beckon potential customers with offers of improved learning and test preparation.

Mistry is a firm believer in Huntington. His two school-age sons attended a center in New Jersey.

"I was very pleased with what I saw," Mistry said. "And as a parent it made me feel good to see the confidence it gave my children. So when it came time in my career to do something different, I looked at a Huntington franchise."

Mistry isn't alone.

Huntington, like the other franchised tutoring companies, is riding a wave of interest among entrepreneurs.

The New Jersey-based company added 50 centers last year, posting a 30% growth rate over the previous year. It now has 300 centers in 38 states.

Its goal is to open 80 centers this year.

"Every day students are facing increased difficulty in rigorous academic standards," said J.J. Sorrenti, Huntington's CEO. "Families keep telling us they see a value in a company like ours. And that is something we are taking advantage of."

Education analysts estimate the tutoring industry grew 15% last year over the previous year, a pace expected to continue for at least two more years.

Much of the growth nationally is being driven by the No Child Left Behind Act and a growing awareness by parents of their children's academic ranking.

"There is no question that increased assessment has intensified the spotlight of student performance," said Tim Wiley, an analyst for Eduventures, a Boston-based educational research and marketing firm. "There are now much more compelling reasons to make sure students are prepared to take the test."

These days, there are as many straight A-students in tutoring centers as there are failing ones.

"At least half of our students are being tutored for enrichment," said Stewart Epstein, a corporate officer for Sylvan Learning Center in Fresno. "These are students whose parents want them to get ahead and stay ahead. They want them to get into a good college."

At Club Z, franchise owner Jennifer Provencio said tutoring is no longer just a luxury of the wealthy. Many of her families are middle class, who like others, want to push their children to excel.

Provencio, a former teacher, has owned the home-tutoring franchise for three years and has seen the number of students increase at her operation from about 100 to 400. Her tutors work all over the central San Joaquin Valley including Chowchilla, Firebaugh, Madera, Kerman, Clovis and Fresno.

"We get a lot of calls from Clovis Unified," Provencio said. "It is very competitive out there, and parents want their children to be in the upper percentile."

Provencio also said she sees the tutoring industry expanding beyond assisting in core subjects. If parents have a need, Provencio will try to provide it.

"We have tutors who can help children in music, dance and art," Provencio said. "We even had a woman in Hanford who wanted someone to teach her daughter how to knit."

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