The UNO charter schools are well connected. Juan Rangel, the head of the Chicago charter corporation, was a co-chair of Mayor Rahm Emanuel’s campaign. He is a major figure in The city’s Hispanic community.The legislature gave UNO $98 million to build three charter schools.
Unfortunately, charter schools are so deregulated that problems arise, like lack of accountability, lack of transparency, and nepotism.
The second-in-command at UNO, Miguel d’Escoto, had to resign when the news came out that he awarded contracts worth millions to his relatives.
Here is the key revelation: l
“D’Escoto’s brothers were paid with state funds under a $98 million grant UNO got to build new schools. The Sun-Times reported Feb. 4 that UNO’s contractors under the grant included d’Escoto Inc. — owned by former UNO board member Federico “Fred” d’Escoto — and Reflection Window Co., owned by Rodrigo d’Escoto.
“Rangel said Sunday UNO would stop doing business with d’Escoto Inc. until after the organization completes an internal review of its contracting process.
“Fred d’Escoto was the secretary of UNO’s board until stepping down at some point in 2010, according to public records. His company received its first payment of state grant money in August 2010 for work on the construction of the Soccer Academy Elementary School on South Homan Avenue.
“D’Escoto Inc. has been paid more than $1.5 million so far for working as “owner’s representative” on that project and on two other UNO schools: in the Galewood neighborhood, on the Northwest Side, and at the Soccer Academy High School that’s under construction.
“Rodrigo d’Escoto’s company was paid about $6.7 million for work on the Soccer Academy Elementary and Galewood schools, and the firm has a contract for about $3.1 million to help build the new high school.
“Rangel has said UNO hired d’Escoto Inc. without seeking other bids but solicited multiple offers for the deals awarded to Reflection. UNO did not use the sealed-bid process that’s required to select contractors for new Chicago Public Schools facilities and other public construction projects.”
But that was not all. In addition to the contracts awarded to the family of d’Escoto, UNO also awarded contracts to the sister of the organization’s lobbyist and to brothers of State Rep. Edward Acevedo, who voted to award the $98 million grant in 2009.
Is this business as usual in Chicago? As the article notes, the public schools are required to ask for competitive, sealed bids. Conflicts of interest are prohibited.
It is certainly not a wise expenditure of taxpayers’ dollars at a time when Chicago is slashing the schools’ budgets, when schools lack guidance counselors, librarians, psychologists, and teachers of the arts.
Diane Ravitch's blog 
Wow, All In the Family. Wonder which one’s Meathead and which one’s Dingbat?
Yes, it is business business as usual in Chicago. Don’t you know? Sadly that’s the way everything is done here. Get into any position of authority and hire all of your relatives.
Important article from Reuters about their investigation into how charter schools across the country screen applicants.
http://mobile.reuters.com/article/idUSBRE91E0HF20130215?irpc=932
Very interesting. The charters are one big scam.
And traditional public school are also one big scam. It all seems to be about money and power.
Frustrated parent, I haven’t been able to find a public school where the principal has stolen millions of dollars by inflating enrollment. Do you know of any? Seems to happen too often with charters. Lack of oversight.
Dont be too confident that public school districts don’t have their own games they play in order to game the system for more tax dollars by claiming their district is growing and messing with enrollment numbers. They tell voters they need a bond while spending money on items nice but not necessary so they can get more tax dollars to play with or to give business to their cronies. For instance, pay architecture firm $2.6M to design a school then pay same firm $2.3M to design second school that ises same design with minor changes. The public system is wasting tax dollars but burry so can’t easily find it. This came out in Texas education finance trial how hard to tell what district spends. It’s because they don’t want us to really know the truth by being transparent.
When public school districts get more dollars, it goes to reduce class size or hire extra staff, not into the corporation’s or the CEO’s pocket.
The public schools are raising taxes but not for smaller classes. In Texas K-4 is a 22:1 ratio. In my district they now ask for waivers until the average is about 25:1 before they have to add another teacher as a way to save money. Instead the money is wasted on positions such as instructiontional coaches that all the teachers say are worthless.
But that’s not stealing.
It isn’t stealing it’s just adding to the fact that public ed has its problems just like charter schools. You are demonizing chaters when public ed is not any better and not the answer the problem. Public ed wastes so much money and they are doing a very poor job of educating kids. I am living the reality of it right now. I volunteer in a 4th grade classroom in an exemplary school in an upper income area where many kids still count on their fingers to do 7×7 or 8+4.
There is no good reason to recreate a publicly-funded dual school system in the U.S. In 1954, the Supreme Court turned it down.
The charter system came about because public schools were failing our kids. I graduated from high school in 1982 with kids who were almost illiterate. Now I am sickened by what is going on in supposedly excellent public schools that are only teaching to the tests. We have 4th graders who don’t know what a paragraph is or how to use proper sentence structure because it’s no longer taught in public schools. You know first hand public ed has had problems for a long time because you speak about them in your book The Death and Life of the Great American School System.
Frustrated Parent,
Our nation has a major problem educating children who live in poverty and in racially segregated districts.
Today, the test scores of all groups–white, black, Hispanic, and Asian–are at their highest point in history.
Graduation rates are at their highest point in history.
We are privatizing schools even though the privatized schools do no better than public schools at solving the systemic social and economic problems.
So untrue that public schools put money towards smaller class size.. I am in a district that is considered a good district and an exemplary school. I attend school board meeting or review the videos of them on line. They raise taxes and spend money on artificial turf fields, reconyx trail cameras, items that are nice but not necessary. In all the talk about money they never talk about smaller classes. I would love for them to raise my taxes for smaller classes but just not happening.
The “frustrated parent” below says public schools are all about power and money. Really? Explain to me what you mean. The local teachers obviously do not have power and money because they are being stomped on by billionaires who want to promote charter privatization scams. Where is all the power and money? Our districts are being crippled by the power and money hungry low-lifes who are leaches to taxpayer money through testing and “technology needs”. You can’t be serious.
I am serious. During budget cuts our administration took steps to decimate the elementary classroom because they didn’t want to layoff their friends in administration. It hurt the teachers and students the most with the least impact on administration. They did not protect the classroom as they say they did. You have to ask why this would be done. MONEY AND POWER. Lowering reading standards each year so lower performing students will pass test which is tied to school rating and money. This just dumbs down the standards for all students. Could go on…..The education system is broken and charters aren’t fixing it since they have not been shown to be better than public schools as a whole. In Texas, charter schools want more money for facilities, sports teams, gyms, etc. None of which is about academics. Both systems are for self-serving adults who don’t want to make tough decisions in the best interest of kids. More money is not the answer.
Also, they are helping to destroy the basic democratic value of local control. Look at Big Brother Bloomberg using his tentacles to stretch clear to LA attempting to destroy public schools. Totally disgusting.
Charter Schools are popping up like flea markets and yard sales. Anything goes! High-end antiques to our grandmothers’ dust catchers. This is what the EdReformers wanted and this is what they are getting. In the meantime, the RTTT is killing off our best teachers and parents don’t know where to go. Unbelievable. Next step: Outsourcing our kids? Sending them to 3rd world countries for boarding schools?
I know it is sounding quite irrational, but I can’t believe or recognize what is happening to US education. And then, we want to compete on the international level? The education dé jour? Free Market?
Read the Reuters artice…will scare you too.
Readers should know that similar awarding of contracts without competitive bids has occurred in Bridgeport, Ct. under its new superintendent of schools, Paul Vallas. For investigative reporting of what is going on in our state, see Jon Pelto’s blog “Wait/What.” Google search and you will find it. This kind of stuff is the tip of the tip of the tip of the iceberg. Between public school bureaucrats and now charter school managers, I think the misappropriation of public funds might be found to be astounding.
You gotta watch anyone who spent time in Chicago.
“It is certainly not a wise expenditure of taxpayers’ dollars at a time when Chicago is slashing the schools’ budgets, when schools lack guidance counselors, librarians, psychologists, and teachers of the arts.”
Let us not for get in the light of this post the CPS announcement for the closing of 129 schools in the near future. http://tinyurl.com/cjtyx2s
It is vile and disgusting that there are those that will take advantage of our most needy students and families. I am not sure which is most disgusting those who take the money or those that give it. It certain that those that do both are the worst of the worst.
Mark, are you from Chicago? I’m not criticizing you nor am I correcting you, but people who read this blog need to know that Chicago HAS BEEN FIGHTING BACK! The original # of school closings was FAR more than 129–after vigorous protesting on the part of communities, parents, students and teachers, the list went down to 330. After even MORE vigorous protesting, the list is now 129! Everyone involved has pledged NOT to stop until that number is reduced to…zero. Also, the uncovering of the UNO situation came about through the investigation of people like you and I. SO–
readers of this blog–be encouraged–be very, very encouraged.
Yes YOU can!!
Dear Retired… I am from the area (35 year newly retired teacher) ..and I am in total agreement with your comments and for people needing to know Chicago has and is fighting back. My visceral reaction was to the perverse abuse of kids and families by the greed of those in influence. It is happening in plain sight … And as you have stated it is people like us that need to bring it to the light of day. As such I am researching a rumor that K12.inc. Is about to expand in IL.
My son’s best friend who is certified in Language Arts was hired at a charter school in Cleveland. He said the person who started the school was supposedly a “former priest”, who applied and got money from our government to open a charter school. There was no money for curriculum materials, and equipment. Soon, the excuses came why the teachers were not getting paid. Discipline of the students was non-existent. He quit after 6 months and now teaches at Kent State University.
This is exactly the kind of stuff happening in Detroit too. Can you believe the state is allowing this to happen? Where are our legislators? They are all bought off.
What happened to the children from that school?
I see rampant nepotism occurring in hiring at my children’s school. Instead of hiring the best qualified, they often hire friends. The district keeps awarding contracts for new buildings to the same companies who serve on the districts non profit foundation. I could go on. This is occurring in a public school district. So nepotism and conflicts of interest occur within public education and charters. Neither one seems to be any better than the other. In the meantime it’s the kids who suffer because adults on both sides can’t do the right thing.
I thought charters were supposed to be the answer to the “beurocratic” problems of public schools. They are WORSE!!! They are the best con going in America today. If you don’t have to open your books to the public there is a serious problem.
Many public schools only pretend to be transparent.
Is this Michelle, Wendy or an employee of students last?
And these are the people who will tell us unions are corrupt and unnecessary.
Actually, those who nay-say unions do have a point. Unions, at least public school teacher’s unions, are good and bad. The good is that teachers do have a collective bargaining position to ostensibly protect against administrative or managerial shenanigans. The bad is that most of our unions cooperate with the district administration to keep teachers in check or at bay. What really needs to happen is that teachers need to reject current union management and “take back the night” so to speak. In other words, the concept of a teacher’s union is laudable, but the union management is too easily corrupted in the pursuit of power and control.
“The bad is that most of our unions cooperate with the district administration to keep teachers in check or at bay.”
Could you direct us to the research that corroborates this?
I know of no research to back up my statement. I base my observations on my experience as a certified teacher in New Haven, Ct. For proof I suggest 1.) talk to real teachers, 2.) ask yourself why union management has not countered the propaganda that teacher effectiveness is the causal factor of the achievement gap, and 3.) why union management does not organize teachers to advocate for greater resources to be allocated to the classroom. If you consider these 3 points, I believe you will see this in a way that you yourself will have deduced rather than some “research” that may or may not be valid or applicable.
Et tu, Brute?
Ah, so it’s anecdotal. My experiences have been different. I actually am a real teacher who is part of a very active union. Currently my state union is a fixture in our state house. This organization has experts on staff whose job it is to read all proposed legislation, interpret such, and then draft proposals to counsel the legislators who write these bills so that our public schools are preserved, not harmed.
This organization has successfully educated our legislators in regard to a formerly damaging tenure reform bill that would have essentially taken away our rights to due process. Tenure has been stream-lined and the period for which it must be earned has been extended with a stronger line of support for non-tenured educators. The legislature adopted the union’s version of the bill.
This organization is also part if the debate surrounding the evaluation bills that will effect the future of our state professional public school staff.
This union also is lobbying for the funding of the current school budget while some politicians, our governor included, are pushing to reform (which means underfund) said budget. There are quite a few legislators who are more informed in regard to the importance of funding our schools thanks to the constancy of the organization’s dialogue.
My union is organized to fight the ills surrounding bad reform bills every step of the way, and has been successful in influencing the legislature to prevent the passing of bad bills that would fatally cripple our public schools. So my anecdotal evidence is far different from yours. I’m sorry your union isn’t working for you, but I do not believe it is fair to characterize all unions as you have your own.
This is not just a problem in Chicago. La BESE President Chas Roemer is pushing for more charters, and his sister, Caroline Roemer Shirley, a frequenter of BESE meetingas, runs her own charter company: http://louisianavoice.com/2011/04/17/conflict-what-conflict-the-push-for-charter-schools-in-louisiana/
BESE member Jim Garvey is also connected to a charter school in Jefferson Parish: http://www.nola.com/education/index.ssf/2011/11/jefferson_charter_school_budge.html
But there’s more! BESE awarded alomst one million dollars to Teach for America in October 2012, and BESE member Kira Orange-Jones sits on BESE as a TFA representative.
Let them say how it’s “for the kids,” but it is all too obvious that what it’s really “all for” is money, lots and lots of money.
Equal Opportunity Corruption ???
That would be a kind of progress …
If there were anything new about it …
Do people like this go to prison? Or, is this just legal. This is theft and corruption.
The charter system came about because public schools were failing our kids. I graduated from high school in 1982 with kids who were almost illiterate. Now I am sickened by what is going on in supposedly excellent public schools that are only teaching to the tests. We have 4th graders who don’t know what a paragraph is or how to use proper sentence structure because it’s no longer taught in public schools. You know first hand public ed has had problems for a long time because you speak about them in your book The Death and Life of the Great American School System.
Yes, F.P., I agree with you about the te$ting. But that has been FORCED on the public schools and that, too, is being fought against. Te$ting is being used as an excuse to close public schools, leading to school turnarounds and…charter$! Did you read, in Diane’s blog, about the entire faculty of Garfield H.S., Seattle, refusing to give the faulty, time-wasting MAP test? Of course, they have been threatened with the loss of their jobs, but they STILL refused, because they WANT TO TEACH. (Go back through the posts & read all about it.) Frustrated–NO PUBLIC SCHOOL TEACHER WANTS TEACH TO TESTS. NOT A ONE.
When all parents opt their kids out (& the Garfield parents supported the teachers–Dr. Barda, the supt., ordered administrators to give the test. 300/400 families OPTED OUT.
It was reported that only 97 students took the test. Just imagine if this happened at every school all over the country! BTW, Frustrated, do you know how much of school district/state ed. money is wasted on tests? In Texas, for example, 500 MILLION!
Now, that could buy schools smaller classes, more social workers & counselors and more supplies for children.
Why do you think high stakes testing came about? Because they wanted to force public schools to do a better job of educating kids. But it back fired because the states just lowered the standards.
For instance, my district has lowered the words per minute required for reading in elementary school by at least 30 wpm over the last several years. Dumbing down the curriculum has been an easier answer for public ed rather than raising the bar for all. Never once has my district asked for more money to hire more teachers to have fewer students in the classrooms.
Just so!
And notice that in response to the very restrained but pointed comments on this particular blog posting, the best argument that can be made for charters and privatization is that it’s just as bad in the public schools?
What an abject surrender of an already indefensible position. And a retreat to an even more indefensible position.
Does anybody remember when the charterites/privatizers promised to clean up all the messes made by public schools and run $ucce$$ $chool$ that put Kid$ Fir$t, er, I mean, provide $tudent$ with voucher$/opportunity $cholar$hip$/charter$, er, that is, give every child the same world class education educational choices as those afforded to the children of the well-connected and wealthy?
Notice the stampede from Cranbrook and Chicago Lab Schools and Sidwell Friends and Waldorf School of the Pacific and Harpeth Hall et al. to the nearest and dearest charter $chool$?
Funny. Neither did I. Looks like the wealthy and well-connected and well-informed are continuing with the same old sad foolish choices.
Pretty pathetic, don’t you think?
🙂
Yes, the leaders of the takeover of our schools have for their
children what public school educators want for all children. So they agree with us on the methods when it comes to their own, but they disagree when it comes to ALL OF OUR children.
Their own money goes to a good cause (their children, their legacy), but our collective money must be funneled back to the eduvultures at the expense of other people’s children.
Got it….I need to get that into a shorter, simpler slogan.
I got mine, screw the rest of you!
In public ed it’s also about $$$$$. Districts building elababorate high dollar football stadiums some with jumbotron scoreboards, redeploying bad teachers instead of firing them because it’s too hard to fire them, giving all teachers a pay raise good and bad, Superintendents making over $250,000 or more per year as well as many in admin making 6 figure salaries, building buildings for alternative programs at $25 M when the program currently serves about 40 to 80 kids on any given day, etc., etc.
This only scratches the surface of inefficient spending in public ed. Most we don’t know about because no one attends school board meetings or is really paying attention to how districts really spend the tax dollars the receive.
Cindy,
You are right. The NYC Department of Education has vastly increased the number of six figure executives and wastes hundreds of millions of dollars on wasteful projects. The number of no-bid contracts is huge–before the Bloomberg era of mayoral control, no-bid contracts were rare and subject to public hearings. Now they are commonplace, and public hearings are a farce.
Elementary parent, I can tell you are upset but your experience can hardly be taken as a standard. Plus, I find it hard to feel sympathy for the community if no one even goes to the school board meetings. It appears that most people must be content with the system if they can get away with their financial stewardship. Who is rolling in that kind of money now?
Various Districts in Texas are rolling in enough dough for pet projects. And Research how the Superintendent in El Paso recently went to jail and how Alvin ISD is illegally making purchases for vehicles for the district.
I attended part of the education funding trial in Texas. Not one district made the case that their children weren’t meeting academic standards due to lack of funding. But they all want more money. In trying to get a clearer picture of how districts spend money, it was found almost impossible with the current method of financial reporting to get a clear idea of how educational dollars are actually being spent. In Texas there is now one employee for every teacher 1:1 ratio. The growth in non teaching employees has far exceeded the growth in the student population. So adding more employees, just not as many teachers. It is interesting to see how the districts justify this. They should start asking the teachers where cuts need to be made instead of keeping positions that are suppose to support teachers and teachers feel are a total waste of money, positions that pay $60-80k per year.
What makes anyone think public ed is now going to fix the problems where they failed in the past?
Your comments are wrong. The Texas legislature cut $5.4 BILLION from public schools in 2011, and none of it was restored. It managed to find nearly $500 million for Pearson.
I will be at the Austin “Save Texas Schools” rally on February 23. Join us.
Only Juan Rangel’s resignation can save UNO.