Thursday, January 26, 2006

The McGraw-Hill Companies Reports 12.8% Increase in Earnings Per Share for 2005 --

It has happened again. McGraw Hill, with it's close ties to the Bush family, is making wads of money thanks to NCLB and Reading First.This from MSN Money:
"The McGraw-Hill School Education Group's revenue grew by 18.5% to $1.5 billion in 2005 and by 23.6% to $267.5 million in the fourth quarter.
In the best year so far in this promising decade for the U.S. elementary- high school market -- industry sales were up 10.7% through November, according to the Association of American Publishers -- we had outstanding results and captured share. Our ability to capitalize on the strong 2005 state new adoption market was key.

"Texas presented the single largest opportunity in the state new adoption market with dual funding of materials for Proclamation 2001 and Proclamation 2002. With a 57% market share in K-12 music and a 43% share in K-12 health, we were the overall leader in Texas, capturing 33% of the available funds.

"Reading First, a key program created as part of the No Child Left Behind Act, produced incremental revenue in the fourth quarter and for the year.

"The No Child Left Behind Act also continues to expand the testing market as states prepare for the first time to test all students in grades three through eight in reading and math before the end of the current academic year. We realized incremental revenue in 2005 and in the fourth quarter stemming from the federal mandate, but increased state demand for customized tests continues to put pressure on our margins.

I just can't help but think that money would be better spent on things like smaller class sizes, better teacher inservicing, and adequate supplies and materials for the classroom. Instead we ahve created an expanding "testing market."

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