Cynthia Liu, blogging for the Progressive, reviews the Eli Broad plan to put half the students in Los Angeles into privately managed charter schools.
She describes Eli Broad as a master of “philanthrocapitalism,” gifts that benefit the giver.
Eli Broad is the city’s chief benefactor for numerous charities; his wealth comes from decades of real estate developments in the Midwest, Southern California, and from the insurance industry. He has particular interests in expanding charter schools in Los Angeles and nationwide. He appears to invest a lot in the city of Los Angeles but when you look more closely, his giving defunds the public sector and Broad ends up with the better part of the deal. For example: originally, Broad wanted to lease the expensive downtown Los Angeles parcel the Museum sits on for $1 a year over 99 years. Said one county supervisor, “Instead of a project that generates sales and property taxes, we’ll now have an art museum that generates no property or sales taxes and Mr. Broad will get the land for free.” It’s now leased for $7.7 million a year for 99 years, and the 501c3 Broad Foundation housed inside the museum still doesn’t put much by way of revenue back into the city ….
She points out that Eli Broad selected John Deasy as superintendent, then paid the salaries of his top aides. Why were they not on the public payroll? Whose interests were they serving?
Not only public education is at risk, but so is our democracy. Do billionaires really have the right to privatize half of an entire large urban school district? When do the people get to vote? Who will hold accountable the hundreds of charters that get public money without public oversight? It is time for the public to rally against this corporate assault on public education.

I want Howard Blume of the LA Times reading the Progressive, if he’s not already. Angelinos are in need of an education about the inner workings of Evil Eli Broad.
LikeLike
Even if Howard reads Cynthia’s article, which I would bet he will, he cannot write anything but what he is allowed to by his overlords at the LA Times, and they are tightly in league with Eli Broad.
LikeLike
I’d agree with you most of the time. Specifically, from the beginning of Race to the Top (when I started really paying attention) ’til the firing of Austin Beutner by the Trib, Howard was under strict control. Recent articles, such as the publication of the secret 50% charter takeover file, however, suggest he’s been delivered with the ability to conduct independent journalism. Recently. I hope. The Times and TV are the only ways to reach the many.
LikeLike
Howard Blume is an excellent journalist.
LikeLike
Why isn’t there a Diane Ravitch Foundation to fund such things as independent journalism, elected school boards, you know, democracy, etcetera? Are there no philanthropists left?
LikeLike
LeftCoastTeacher, I am funding a lecture series at my alma mater, Wellesley College, starting this fall on October 22. I am the first speaker. The activities there will increase over time to include research, studies, student interns, and eventually a Chair devoted to “Education and the Common Good.” I wish I had $1 billion or even $100 million, I could do so much more. But I am doing what I can with the time left to me.
LikeLike
dianeravitch:
“Without a sign, his sword the brave man draws, and asks no omen, but his country’s cause.” [Homer]
On behalf of all those for the cause of a better education for all—
Thank you.
😎
LikeLike
Dr Ravitch, I hope that Hillary Clinton, another Wellesley alum, attends your Oct 23 talk.
LikeLike
So Diane.. the question still remains… what billionaire philanthropist in the real sense of the word philanthropist is going to fund your Wellesley College initiative? Will a real billionaire philanthropist interesting in putting the “public” back in public education please come forward. So who is this person or organization going to be and are they going to let those who actually UNDERSTAND education issues organize and implement – no corporate strings attached?
LikeLike
I am having major second thoughts about asking which billionaire will fund Diane’s initiative… After all, public money (through taxes) used to be directed toward public initiatives that included our public schools. Under Reagan… trickle down diverted tax money and allowed the rich to get MUCH richer through all the loopholes and corporate favored tax breaks. So requesting money from mega billionaires IS THE WRONG APPROACH. We don’t need mega billionaires. We need tax paying citizens (with real rights to vote on how their money is used) – free from the pseudo choices of battling megamillioniares currently setting policy under the guise of “false choices”.
LikeLike
I’ve just been wishing, lately, you had a billion dollars too. A lot. You are a powerful force for good. When you uncover truths, I look around the neighborhood here in in California to see who’s listening, and it’s pitiful. We have a 1% opt out rate. So, I constantly wish you had a billion microphones.
LikeLike
Ravitch’s contribution in saving public schools, is invaluable and unprecedented. Consider that the forces against her and us, include the two richest men in America and a collective of other billionaires. Because they are the enemy within, those plotting to destroy democracy, are more formidable now than at any time in American history.
LikeLike
…and Howard Blume is an excellent journalist who is constantly hamstrung by the worst editorial board on the planet… and Education and the Common Good is an outstanding idea. Sorry for my wistful wishing and cheesy chatter, but you are my sun and sky and water and earth, Dr. Ravitch.
LikeLike
Ellen, I am up in the air with the corporate control over the nation’s top journalists. I’ve been working with a few lately and they assure me their editorial boards do not censor the content. The biggest problem, I believe, is tracking the proof of it all.
LikeLike
And this is exactly why we don’t want him using his money to “do good” by supporting the arts in public schools. It would only be covering up for something much more nefarious.
LikeLike
I totally agree with you. Grants-based arts education has become a norm in too many schools…episodic, whim of the grant maker, literally an “enrichment,” in the school, a bonus, a luxury.
I was delighted to see some savvy arts educators picketing the Broad art palace along with other teachers. The Broad money as a threat to public education in LA, including arts education in schools.
LikeLike
Why would he want to support the arts in public schools? Might be more sense to support the arts in his Dotheboys charter schools.
LikeLike
That answer would be “yes”. Billionaires have the right to do whatever they want. The own the place! America was founded by people wanting to make money, have land, etc. There were also religious nuts, but that is another, continuing, American story. People were hustling from the very beginning. The only reason we had public school was because they needed factory workers. It was never more noble or lofty than that. Now they don’t need any factory workers, and they want to get rid of it. It’s all very logical and easy to understand. If you want more explanation you can go read “The Power Elite” or even “1984” if you want to see what the future will bring. The option of moving to Europe is now over as well as millions of Middle Easterners invade the continent. In a few years, Europe won’t even be worth visiting. I will now go back to watching Netflix.
LikeLike
Netflix CEO, Reed Hastings, explains in a YouTube video, why democratically elected school boards should be eliminated.
I don’t buy Netflix services. I don’t go to Walmart. I avoid Home Depot and, I never buy Koch products.
LikeLike
Actually, our founders had grave concerns about too much money in too few hands.
LikeLike
Excellent reporting, Cynthia Liu.
It is appalling how one man can have so much sway over a public system that all, ultimately, benefits that person in the end.
His “philanthropy” in LAUSD was a Trojan Horse and allowed his interests the gates of the kingdom. With help from Beaudry and other officials, the take over of LA was almost a sure deal. It was like letting the pharmacy companies rule the FDA.
Broad has already tried to buy the LA TIMES numerous times and sponsors its education Matters section. The LA TIMES might as well have offered the Koch Brothers to vet their environmental coverage.
It’s all been said before and it is repetitive to rehash the history. All the Broad Residents who have gone through his “Academy” have been disrupters, and learned a business pedagogy on how to “run” a public school system in a manner that best suits the interests of business.
‘Nuff said.
Broad is not about kids. The kids are the investment brochure he is selling us. His portfolio has already done incalculable damage because so many people have bought it and want everyone to shut up and pony up.
The art in Broad’s museum becomes even more valuable because he has collected and curated the collection that grows in value because it is in a museum.
Schools and art should not be commodities, but Eli Broad didn’t become a billionaire because of his philanthropy.
And his “philanthropy” only adds to his wealth every day.
In fact, wise investors know to “invest” in Broad’s philanthropy for the benefit of their own portfolios.
LikeLike
Yes, Cynthia, terrific article and links. And yes, Geronimo, Broad and his henchmen/women all are/were Trojan Horses…for decades. And there are still some left in the inner sanctum at Beaudry.
As I have said before, if you are a whore for cash, then you do what the pimp and the john demand of you.
LikeLike
Cynthia Liu fan here too!
LikeLike
The sad part is that if this was the Koch Brothers offering to turn half the public schools into charter schools under their control with no oversight, maybe the Democrats in office would sit up and take notice. But they are so desperate for billionaire dollars that they don’t speak out. No wonder so many Americans believe the Democrats have basically sold their souls. They obviously have. Where are the political leaders expressing outrage here? Praying for some of that money from Eli Broad for their next campaign, I guess.
LikeLike
Brock, the founder of Media Matters, wrote a book, “Killing the Messenger”, which was published recently. The book is about the current Democratic campaign for President. Brock condemns right-wing conspiracies against Hillary Clinton. Interestingly, readers won’t find out anything about public education’s privatization or Gates’ involvement in education, from Brock’s book.
LikeLike
From the article linked in the posting:
[start]
“Broad reportedly paid for ex-Supe John Deasy’s staff and living expenses. Try telling me that Deasy wasn’t really a Broad employee all along.”
[end]
This was most striking [see the posting]. I would be surprised if it weren’t true.
So, quite literally, with the LAUSD BofE and the LATIMES and so so many others all in for charters and privatization and rheephorm during the John Deasy interregnum—and the rheephormsters [even those that visit this blog!] still can’t acknowledge that old saw—
“He who pays the piper calls the tune.”
Think I am over-reacting? I am still reading comments in the READERS REACT section of the LATIMES that claim such predictable train wrecks as iPads and MISIS and such are the fault of—
You guessed it! All those terrible public school advocates and supporters! Now’s the time to get some charters and privatization and vouchers and homeschooling going because public education cuts such a sorry figure…
Here’s a simple solution. When you’re in a competition, you don’t hire the cross-town opposition to manage the home team.
But then, when do the heavyweights and enforcers and enablers of the self-proclaimed “education reform” movement ever take responsibility for their own words and deeds?
😎
LikeLike
The “anthropo” part is clearly a misnomer — whatever these folks love it isn’t mankind. They are more like phil-atrophists, lovers of decay, or maybe phil-atelists, collecting scrip like so many stamps.
LikeLike
Literally speaking, cannibals are also philanthropists
LikeLike
Well, more like anthropophage …
LikeLike
“Philanthropy”
“Love of human kind” —
Of flesh, served on a dish.
Cannibals, you will find
Are real philanthropists
LikeLike
Obama Administration continues to shovel money to build more charter schools:
http://www.ed.gov/news/press-releases/us-department-education-contributes-improving-charter-schools-sector
They’re making some gentle “suggestions” on how the money is to be spent:
“To help bring more clarity to states’ responsibility when it comes to fiscal oversight of charter schools, the Department is releasing a Dear Colleague Letter to states today emphasizing the importance of financial accountability for charter schools receiving federal grant funds.”
Incredibly, the Ohio charter sector gets 71 million, which must be a reward for the complete lack of regulation in this state. Now they can jam some more for-profits into Youngstown, I guess, because Youngstown which is next up for privatization. I wonder how many union teachers who voted for Obama they’ll fire in Youngstown. We should get a head count.
LikeLike
When one considers how cheaply Ohio politicians can be bought, the U.S. Dept. of Ed. is spending its money the wrong way…. Mom and apple pie, while public schools are gutted, is the message I hear from Washington.
LikeLike
“However, Secretary of Education Arne Duncan says despite what he calls some impressive recent progress by charters, he continues to be concerned about fiscal oversight within the charter sector.
“We still see too many reports of unscrupulous behavior of charter schools and their authorizers,” Duncan said in a press call with reporters.
So naturally he gave them hundreds of millions in funding with no regulation. Ohio charter operators must think they died and went to heaven. No one in state government will regulate them, and now they have a big pile of federal money to open more schools, and the ongoing operation will of course be state-funded.
Complete and utter government capture.
LikeLike
Thanks for this Diane. And thank you to Cynthia Liu. What the deformers are doing is pure MADNESS.
LikeLike
Perhaps they are unaware of the charter school situation in Ohio in the Obama Administration. After all, they only visit the state during “campaign season” and obviously the campaigns are over, so I could see how that might happen.
This is a local paper, today:
“William O’Neill is onto something about charter schools. In a recent dissent, the Ohio Supreme Court justice described the relationship between White Hat Management and a group of charter schools it operated as “a fraudulent conversion of public funds into personal profit.”
http://www.ohio.com/editorial/ohio-republicans-and-their-scandalous-schools-1.627573#.VglRmnaLcQU.twitter
Why are the funding more charter schools in this state when they know there’s no regulation? They somehow believe John Kasich is going to get around to regulating some of his largest donors? Come on. No one is that naive.
LikeLike
Why call ourself a democracy if a rich person can insert their money and will into a public institution ? Whoever has the most money gets all the say ? Did we not fight wars over that ? … starting with the first one – the revolutionary war ?
LikeLike
Here in Nevada the federal government is getting in the act. We have been given a most generous grant for, get this, charter schools, of course! The public schools here couldn’t use any money of course. I can continue teaching in a condemned portable trailer, my kids can just go to the shiny charter run by Andre Agassi….Oh no they can’t, they won’t be accepted there. http://www.reviewjournal.com/news/education/federal-grant-boost-charter-schools
LikeLike
As George Costanza said: “I think I could be a philanthropist, a kick-ass philanthropist. I would have all this money, and people would love me. Then they would come to me and beg. And if I felt like it, I would help them out. And then they would owe me big-time! . . . First thing I’m gonna need is a driver. . . .”
LikeLike
Great quote from Seinfeld.
The richest men list came out today. Gates and Buffett, are at the top. Another year of colossal failure for them. They lean over backwards patting themselves on the backs about giving away all of their money to “charity”. So, either they are incapable of achieving their goals or, all the grandstanding is PR, which appears to feed their egos and delusions.
LikeLike
There is no question that it is time for all present and prospective parents of LAUSD students to stand together and stop Broad’s plan. In fact, maybe this will be an opportunity to inform the public of the damaging outcome, down the road, to public education in Los Angeles and in the state as more money is funneled to charters for things like start-up grants and gifts of money from school construction bonds. In Los Angeles, a huge chunk of the latest school construction bond has been dedicated to charters. Money is being spent to prepare sites for co-location and for other related costs for charter schools. All the while, thousands and thousands of students are subjected to horrific conditions in their schools due to lack of funding for major repairs and the replacement of aging air conditioning systems.
The public rebelled against the use of construction bond funds for iPads. They need to rise up again and demand that these bonds are used first for traditional schools, not privately run charters who do not have to be accountable for how they spend tax dollars.
LikeLike
Broad’s Museum is a JOKE! The cheese grater facade is a metaphor for his icing on the cake because according to his CNBC interview, his favorite food is Italian! Yes, he grates on us too and simply doesn’t care. He will be RIGHT at all Cost because he has MONEY to make people believe it.
He continues to bilk the public funds for profit. The contents of his collection are mindless acquisitions of all the usual Blue Chip suspects (no disrespect to the artists, but PLEASE!) so the works can be traded like silver, gold and now communities themselves.
To be sure, Broad and his Boys Club are heavily vested in Syndicated Funds like Avivar Capital. They fund the data collection of families and children nationwide and in CA and Australia.
And let’s be clear, Broad got where he is today using other people’s money! He got his in-laws to loan him $25K back in the day. So, Eli, how about loaning out the 75% of your wealth, ($5.3B) to those who need it? You could LOAN it!!
Broad supports gun control because the national support for this effort also brings the REAL gold. Promise Neighborhoods give the government policy pimps the ability to collect all that data – which will then determine the value of a community – to be bought and sold by THEM. Communities are a virtual Monopoly Game for the Billionaires!
LikeLike
Right on, Clarity….and Eli’s partners in many his ersatz crimes against children and society include the Waltons who do not support gun control, but rather fund Stand Your Ground laws nationwide…so that each of us can carry a hidden weapon.
Edye Broad is quoted often as to his unreasonable behaviors…and she was the one who started collecting, with neither of them knowing anything about art. He always buys with the goal of squeezing the artist for the cheapest sale, and sees art as a commodity, not a respected and loved accomplishment of the gifted, much as he sees schools and their students as commodities to be traded on the stock exchange.
LikeLike
Eli Broad’s charter initiative for Los Angeles Schools is another example of disaster capitalism. After Hurricane Katrina, public schools in New Orleans were transformed into an archipelago of charter schools while the city’s teachers union was dismantled and control of their students’ education was placed in the hands of businessmen.
Since no hurricane was immediately available in LA, Eli Broad helped defund its public schools by installing John Deasy and his mismanagement team. Despite their persistent mantra that LA public schools were in the midst of a financial crisis, they attempted to force a $1 billion iPad project down their constituents’ throats. No fallen palm trees, no flooded streets, but an economic disaster nonetheless.
Ironically, Eli Broad can be stopped by education. LA’s parents and students needs to be made aware of the consequences of his charter initiative. Getting the word out will do more to help rebuild LA’s public schools than any 25 charter schools will.
LikeLike