Archives for category: Accountability

We saw this coming. The GOP candidates for President have decided, for now, to focus their campaigns against “critical race theory,” Black history, the threat posed by transgender students, and any teaching about race, sex, and gender.

Juan Perez of Politico reports:

CULTURE CLASH — Once upon a time, back when people used fax machines, education policy — test scores, spending, school choice and the like — were a notable feature of Republican presidential campaigns.

Former President George W. Bush’s support for education spending and the transformative No Child Left Behind Act was enshrined in the party’s 2004 platform. Former Arkansas Gov. Mike Huckabee railed that a general lack of concern about education in the 2008 presidential field “frustrates the fire out of me.” Bush’s brother, Jeb, invoked Martin Luther King Jr.in 2016 when he proposed a detailed education platform before his campaign fizzled.

This year, education is re-emerging as a prominent issue for the budding 2024 GOP field. But America is poised to witness a presidential contest where the debate over school policy sounds dramatically different — with discussions over academic standards and the stunning, once-in-a-generation hitto test scores taking a back seat to issues with a more distinct culture war bent.

Former South Carolina Gov. Nikki Haley is salting a back-to-basics education mantra with brimstone, targeting school lessons on race and sexuality. Former Vice President Mike Pence has put a small Iowa school system’s gender identity policy in the national spotlight. And Former President Donald Trump is stirring up concerns about “pink-haired communists teaching our kids.”

Haley’s campaign launch last week offered a sign of the heightened role the education wars are about to play in the GOP primary.

“They’re talking about critical race theory, where if you send a five year old kindergartner into school — if she’s white, you’re telling her she’s bad, and if she’s brown or Black you’re telling her she’s never going to be good enough and she’s always going to be a victim,” Haley said of the academic practice to a New Hampshire crowd last week. “That’s abusive.”

She added that a Florida ban on sexual orientation and gender identity lessons for young students — championed by rival Republican Gov. Ron DeSantis and dubbed by critics as the “Don’t Say Gay” law — “didn’t go far enough.”

“When I was growing up, we didn’t have sex ed until seventh grade,” Haley said to applause in New Hampshire. “That’s the kind of stuff you do at home, you don’t do that at school. That’s the kind of thing parents do.”

For his part, Pence has focused attention on an Iowa dispute, in which the conservative Parents Defending Education organization is suing the Linn-Mar Community School District to stop it from enforcing a policy that directs educators to protect their students’ gender identities on campus.

The court case has garnered supportive briefs from the Pence-backed Advancing American Freedom organization plus a coalition of Christian groups and Republican state attorneys general. The legal battle is also the focus of a Pence political initiative— funded with an initial budget of $1 million — that will advocate for “parental rights” policies embraced by conservatives.

“We’re told that we must not only tolerate the left’s obsessions with race and sex and gender but we must earnestly and enthusiastically participate or face severe consequences,” Pence told supporters last week. “Nowhere is the problem more severe, or the need for leadership more urgent, than in our public school classrooms,” he said.

Trump’s education plan, unveiled last month, calls for cutting federal funding for any school or program that includes “critical race theory, gender ideology, or other inappropriate racial, sexual, or political content onto our children.”

Trump would also open civil rights investigations into any school district that has engaged in race-based discrimination, particularly against Asian American students. He also called to “keep men out of women’s sports,” make significant cuts to school administrative personnel, elect school principals and end teacher tenure.

“As the saying goes, personnel is policy and at the end of the day if we have pink-haired communists teaching our kids we have a major problem,” Trump said.

Sen. Tim Scott, who is testing the waters on a potential presidential bid, is taking a less combative approach. Speaking at a GOP Black History Month event in Charleston last week, the South Carolina senator said “the story of America is not defined by our original sin, the story of America is defined by our redemption” and urged Republicans to “be the party of parents.”

Scott and others are responding to the GOP grassroots energy surrounding issues at the intersection of race, gender, culture and education — which Virginia GOP Gov. Glenn Youngkin successfully harnessed in his 2021 blue-state victory.

The sharp-edged rhetoric might get sanded down for the general election. But for now, not getting outflanked on education controversies that currently animate the right appears to be the first order of business for the 2024 field.

MEDIA ADVISORY:

Tomorrow, on Saturday, parents and community members from the Alliance to Reclaim Our Schools (AROS) and HEAL Together, alongside organizations from Florida and Pennslyvania, will hold a press conference opposing Governor Ron DeSantis’ harmful policies attacking our children’s freedom to learn. The press conference will take place opposite the site of DeSantis’ keynote speech at the Pennsylvania Leadership Conference. Florida advocates will speak at the press conference to warn that DeSantis’ policies are bringing chaos to Florida families.

The full media advisory is below. Feel free to reach out to the media contact: Moira Kaleida | 412-760-0030 | moira@reclaimourschools.org



FOR IMMEDIATE RELEASE: March 31, 2023


**MEDIA ADVISORY**PARENTS, COMMUNITY FROM PA & FL STAND UP AGAINST DESANTIS ATTACKS ON EDUCATION AND OUR COMMUNITIES— PRESS CONFERENCE AND ACTION


Harrisburg, PA – Saturday, April 1, 2023, parents and community members from the Alliance to Reclaim Our Schools (AROS) and HEAL Together, alongside Moms Rising, Red Wine & Blue, 412 Justice and Common Purpose (West Palm Beach, FL), and parents and community members from Florida to Pennsylvania will hold a press conference opposing Governor DeSantis’ harmful policies attacking our children’s freedom to learn.

The press conference will take place opposite the site of DeSantis’ keynote speech at the Pennsylvania Leadership Conference.

Concerned parents and community members will speak in response to the attacks on public education, including the passage of classroom censorship laws, the voucher bill which is a $5 billion giveaway to rich families, and the ban on life-saving education and healthcare for LGBTQIA+ youth.

Florida advocates will speak at the press conference to warn that these policies are bringing chaos to Florida families.


Education justice groups will be holding rallies also on April 1 in Miami, Orlando, Pinellas County and other sites throughout Florida to protest DeSantis’ anti-Black and anti-LGBTQ policies that have had a devastating impact on Florida’s children.

Pennsylvanians have voted against these policies in the past, and through solidarity with Floridians, Pennsylvanians have an opportunity to oppose DeSantis’ divisive tactics in order to ensure that all children have the freedom to learn and build a better future.

WHAT: Press conference with Pennsylvanians and Floridians to oppose Governor Ron DeSantis’ harmful policies attacking our children, our schools and our educational freedom after DeSantis’ keynote speech at the Pennsylvania Leadership Conference.


WHEN: April 1, 2023. Press Conference begins at 1 PM EST.


WHERE: In front of Harrisburg Academy (10 Erford Rd, Wormleysburg, PA 17043). The press conference location is across the street from Penn Harris Hotel (1150 Camp Hill Bypass, Camp Hill, PA 17011) where the Pennsylvania Leadership conference takes place.


WHO: Alliance to Reclaim Our Schools (AROS), with HEAL Together, Moms Rising, Red Wine & Blue, Common Purpose, 412 Justice, and parents, educators, and community members.


For on-site interviews, contact: Moira Kaleida | 412-760-0030 | moira@reclaimourschools.org

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The Alliance to Reclaim Our Schools (AROS) is a coalition of parent, youth, community and labor organizations fighting to reclaim the promise of public education as our nation’s gateway to a strong democracy and racial and economic justice. AROS is uniting parents, youth, teachers and unions to drive the transformation of public education, shift the public debate and build a national movement for equity and opportunity for all.

HEAL (Honest Education Action & Leadership) Together is building a movement of students, educators, and parents in school districts across the United States who believe that an honest, accurate and fully funded public education is the foundation for a just, multiracial democracy.

MEDIA STATEMENT

FOR IMMEDIATE RELEASE

Friday March 31, 2023

Contact: Cassie Creswell, Illinois Families for Public Schools, 773-916-7794

PAUL VALLAS LIES ABOUT SUPPORT, CONNECTIONS WITH TRUMP SECRETARY OF ED BETSY DEVOS

DEVOS’ SUPER PAC CHAIR ATTENDS VALLAS EVENTS; VALLAS HOSTED EVENT WITH DEVOS IN 2021

CHICAGO — Mayoral candidate Paul Vallas is falsely denying his connections to former President Trump’s former Secretary of Education Betsy DeVos and an Illinois Super PAC that DeVos funds.

DeVos funds and controls the Illinois Federation for Children PAC which made a $59,000 independent expenditure in support of Vallas’ campaign last week. On the same day, DeVos’ American Federation for Children Action Fund, a national 527 PAC funded primarily by DeVos and her husband, made a $65,000 contribution to the Illinois Federation for Children PAC.

Yesterday evening at the Sun-Times-WBEZ mayoral debate, Vallas denied having contact with DeVos, stating “I’ve never had any conversations or contact with Betsy DeVos. And our campaign has not received any money from her.” 

The Vallas campaign said on Wednesday evening that “our campaign has not been in contact with this organization [Illinois Federation for Children PAC].”

In reality, Vallas and DeVos served together as hosts at an Urban League of Chicago event on September, 9 2021 in honor of the superintendent of schools of the Catholic Archdiocese of Chicago.

Moreover, the chair of the Illinois Federation for Children PAC Nathan Hoffman has been regularly attending Vallas campaign events in the last month, including Vallas’ February 28th election night party:

Hoffman was a registered contract lobbyist in Springfield for the DeVos-founded and funded 501c4 American Federation for Children until January 2023. 

On June 18, 2022, Vallas appeared on a panel hosted by extremist anti-LGBTQ+ group Awake Illinois with keynote speaker Corey DeAngelis, senior fellow at DeVos-founded and funded American Federation for Children.

Paul Vallas’ decades-long history of privatizing multiple school districts in the US and extensive support for transferring public funds to private schools are tightly aligned with DeVos’ ideological opposition to the existence of publicly-run, publicly-funded schools.

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The Illinois charter lobby has spent heavily in the Chicago mayoral race. In recent weeks, the charter lobby has run a barrage of ads attacking Brandon Johnson, the City Commissioner who is running against Vallas.

WTTW News reported:

A statewide advocacy organization designed to promote charter schools spent $617,000 to oppose Brandon Johnson’s campaign for mayor of Chicago, records filed with the Illinois State Board of Elections show.

The independent expenditure by the INCS Action Independent Committee, funded by the Illinois Network of Charter Schools, paid for $258,000 in cable television advertisements on March 16 and $359,000 in digital advertising on March 15, records show. Election Day is April 4, and early voting is underway.

Before the first round of voting took place, the INCS Action Independent Committee spent an additional $63,000 to oppose Johnson’s campaign. In addition to their spending on the mayoral race, the committee has spent at least $107,000 to support City Council candidates in runoff elections, according to records.

Vallas has a well-established record as a passionate advocate of privatization. He supports both charter schools and vouchers.

Vallas wiped out public schools in New Orleans. He launched a massive privatization program in Philadelphia, and he left the district with a deficit.

Inside Philanthropy reported on the major funding behind the push for vouchers.

Vouchers are not popular.

There have been nearly two dozen state referenda about vouchers. Vouchers have always lost, usually by large margins.

State legislatures have ignored the voice of the people and passed voucher legislation despite the public vote against them. Vouchers were rejected in Utah in 2007. Vouchers were rejected in Florida in 2012. Vouchers were rejected in Arizona in 2018. Yet the legislators in these states passed sweeping voucher laws, benefitting home schoolers and students already attending private schools.

Why?

There is a lot of money behind the voucher “movement.” The only thing moving in this “movement” is millions of dollars from rightwing billionaires into the pockets of Republican politicians.

All the usual rightwing suspects are pumping big money into the push for vouchers. Betsy DeVos, Charles Koch, the Bradley Foundation.

Connie Matthiessen of Inside Philanthropy writes:

Who is funding the push for school vouchers?

Dark money and disclosure rules make it difficult to pinpoint the funders that support vouchers or how much they are spending on these efforts. But what we do know is that a lot of the typical channels of conservative-leaning philanthropy are funding the organizations that support vouchers.

One reason it’s so hard to track is that a lot of that money is going through donor-advised funds, which don’t have to identify which individual DAF holders are making specific grants. The conservative DAF DonorsTrust, for example, and its affiliated Donors Capital Fund have been moving money to groups that support vouchers. As my colleague Philip Rojc reported in 2021, “Since its founding, DonorsTrust has given out over $1.5 billion. In addition to the sheer volume of money, a large proportion of DonorsTrust’s grantees operate in the policy arena, magnifying the impact of this funding on the public sphere.” It also raked in over $1 billion that year, according to Politico.

DonorsTrust grantees include voucher advocates like the Heritage Foundation, the American Federation for Children, which was created by Trump administration Education Secretary Betsy Devos, as well as the conservative Independent Women’s Forum. The Cardinal Institute, which is supporting education savings accounts in West Virginia, is also a grantee.

We do know some of the non-DAF funders that are supporting the voucher movement, and a few names come up repeatedly. One of these philanthropies is the Milwaukee-based Lynde and Harry Bradley Foundation, a long-running conservative funder that has had a major influence in Wisconsin politics and also helped bankroll efforts to discredit the 2020 election results, as Jane Mayer reported in The New Yorker….

The Bradley Foundation funds the Wisconsin Center for Law and Liberty, which supports education vouchers through its Bradley Impact Fund, a donor-advised fund. The Bradley Impact Fund includes among its grantees the Badger Institute, a conservative Wisconsin think tank that is advocating for the expansion of the privatization of the state’s public education system, as the Wisconsin Examiner reported. According to its 2021 grants list, the foundation has also supported Ohio-based Buckeye Institute and the Goldwater Institute in Arizona, which are both pushing voucher-type movements in their respective states.

DeVos herself is another major voucher backer, and has supported efforts in her home state of Michigan and beyond. She is involved with a number of organizations, including the American Federation for Children, which she chaired and helped found. That organization and its affiliates — the American Federation for Children Action Fund (a 527 group that supports candidates) and the 501(c)(3) American Federation for Children Growth Fund — have promoted education vouchers for years, including in Washington, D.C., as the Washington Post reported in 2017. More recently, it backed efforts to push ESA legislation in Idaho, according to a report in the Idaho Capital Sun (Republican state legislators just rejected a voucher bill there). The organization has also been active in privatization efforts in Texas, according to the Texas Monthly; and in Nebraska, the Nebraska Examiner reports that DeVos and her husband provided most of the dollars identified as funding from the American Federation for Children.

DeVos has worked hard to influence education policy in her home state of Michigan, with some success, but so far, has failed to establish a voucher program there. Most recently, in November, voters overwhelmingly opposed a school voucher plan she helped fund, as Chalkbeat reported. Devos and her family gave $6.3 million in support of the ballot proposal.

The State Policy Network also played a role in the pro-voucher campaign in Idaho, according to the Idaho Capitol Sun report. That organization, which oversees a coalition of state-based conservative think tanks, is backed by the Lynde and Harry Bradley Foundation and Charles Koch, according to a report by Documented, and has also received funding from DonorsTrust and Donors Capital Fund, according to Jane Mayer’s reporting. In an opinion piece for Washington Examiner, Chantal Lovell, the State Policy Network’s director of policy advancement, credited her group for expansion of education savings accounts across the country.

A number of organizations that Charles Koch has funded over the years have played a role in the voucher movement. The American Legislative Exchange Council (ALEC), a membership organization of right-leaning state legislators, promotes education vouchers, for example. ALEC has received support from Charles Koch, Donors Trust and the Bradley Foundation. ALEC-affiliated state legislators have spearheaded the voucher movement in Texas, according to the Texas Monthly. The libertarian Cato Institute, which Charles Koch helped create, according to Mayer, supports a form of school voucher called Scholarship Tax Credits.

Open the link and read the article to learn who else is funding the voucher putsch. You may surprised, as I was, to learn that the Gates Foundation gave $1 million to the Reason Foundation, a libertarian organization that supports vouchers and opposes public schools.

Secretary of Education Miguel Cardona is not known for speaking out forcefully. But in an interview with Politico, he denounced the attacks on public schools and the blatant politicization of local issues. Politico titled the article: “Biden’s Education secretary is done sitting ‘idly’ amid schools fight.” No more sitting idly!

To be clear, Cardona has been missing in action as public schools are under attack by vitriolic privatizers. School boards have been under attack. Teachers have been under attack. The rights of students to learn accurate history have been under attack.

And Cardona has been silent. Why?

He has a voice. Why doesn’t he use it?

CARDONA SPEAKS — President Joe Biden’s education secretary is stepping up his rhetoric against school-centered partisanship, as nearly 30,000 school board seats are on the ballot this year and White House allies plan a counteroffensive to conservative political momentum.

— “When we talk about politicization, when we talk about book banning, when we talk about Black history curriculum being picked apart — I think there are deliberate attempts to make sure that our public schools are not functional so that the private option sounds better,” Miguel Cardona told POLITICO.

— “It just seems like it’s a constant attackon what I know as a dad, and what I know as an educator, is happening in our schools.” Cardona said. “Education being used to divide communities is the challenge that we face now as leaders.”

— Cardona’s newly public exasperation with the conservative political furoraround education comes as the Republican-controlled House approved sweeping “Parents Bill of Rights” legislation and a growing wave of school choice expansion laws takes hold in Republican-led states, including a measure now primed for the signature of Republican Florida Gov. Ron DeSantis.

— “There are efforts to take dollars, the limited dollars that exist for public education, and provide vouchers to private institutions — weakening the local public school,” Cardona said of recent school choice expansion initiatives.

— “I’m not against choice, I went to a technical high school that wasn’t my local neighborhood high school. … But I don’t want privatization at the expense of the local school. The neighborhood school should be fully funded; it should have great resources so that students who go there have a top-tier education.”

For Cardona, this is as close to a forceful statement as we are likely to see. Even more forceful would be a flat-out expose of vouchers as a cruel hoax that helps no one but the rich families who are getting a rebate on their private school tuition.

When the Disney Corporation criticized Ron DeSantis’s “Don’t Say Gay” bill, the Governor struck back by taking control of Disney’s special district and creating a board (appointed by him) to oversee Disney. The board consisted of rightwing extremists and DeSantis campaign donors. DeSantis boasted about his ability to punish and subjugate the state’s largest employer and its economic engine. It was easy to imagine the extremist DeSantis board censoring Disney attractions and shows to make sure nothing happened that was “woke.”

But wait!

While DeSantis was boasting, the Magic Kingdom was making a deal to elude his grasp.

CNN reported here on Disney’s quiet escape from DeSantis’ clutches:

(CNN)The battle between Disney and Florida Gov. Ron DeSantis may not be over yet.

The new board handpicked by the Republican governor to oversee Disney’s special taxing district said Wednesday it is considering legal action over a multi-decade agreement reached between the entertainment giant and the outgoing board in the days before the state’s hostile takeover last month.

Under the agreement — quietly approved on February 8 as Florida lawmakers met in special session to hand DeSantis control of the Reedy Creek Improvement District — Disney would maintain control over much of its vast footprint in Central Florida for 30 years and, in some cases, the board can’t take significant action without first getting approval from the company.

“This essentially makes Disney the government,” board member Ron Peri said during Wednesday’s meeting, according to video posted by an Orlando television station. “This board loses, for practical purposes, the majority of its ability to do anything beyond maintaining the roads and maintaining basic infrastructure.”

The episode is the latest twist in a yearlong saga between Disney and DeSantis, who has battled the company as he tries to tally conservative victories ahead of a likely bid for the 2024 GOP nomination.

The board on Wednesday retained “multiple financial and legal firms to conduct audits and investigate Disney’s past behavior,” DeSantis spokeswoman Taryn Fenske said. According to meeting documents, the board was entering into agreements with four firms to provide counsel on the matter.

“The Executive Office of the Governor is aware of Disney’s last-ditch efforts to execute contracts just before ratifying the new law that transfers rights and authorities from the former Reedy Creek Improvement District to Disney,” Fenske said. “An initial review suggests these agreements may have significant legal infirmities that would render the contracts void as a matter of law.”

In a statement to CNN, Disney stood by its actions.

“All agreements signed between Disney and the District were appropriate, and were discussed and approved in open, noticed public forums in compliance with Florida’s Government in the Sunshine law,” the company said. Documents for the February 8 meeting show it was noticed in the Orlando Sentinel as required by law.

Multiple board members did not immediately respond to request for comment. The Sentinel first reported on Wednesday’s vote to hire legal counsel.

According to a statement Wednesday night from the district’s acting counsel and its newly obtained legal counsel, the agreement gave Disney development rights throughout the district and “not just on Disney’s property,” requires the district to borrow and spend on projects that benefit the company, and gives Disney veto authority over any public project in the district.

“The lack of consideration, the delegation of legislative authority to a private corporation, restriction of the Board’s ability to make legislative decisions, and giving away public rights without compensation for a private purpose, among other issues, warrant the new Board’s actions and direction to evaluate these overreaching documents and determine how best the new Board can protect the public’s interest in compliance with Florida Law,” the statement from Fishback Dominick LLP, Cooper & Kirk PLLC, Lawson Huck Gonzalez PLLC, Waugh Grant PLLC and Nardella & Nardella PLLC said.

The spat between Disney and the governor stems from the company’s opposition to a Florida law that prohibits the instruction of sexual orientation and gender identity through third grade and only in an “age appropriate” manner in older grades. In March of last year, as outrage against the legislation spread nationwide, Disney released a statement vowing to help get the law repealed or struck down by the courts.

DeSantis and Florida GOP lawmakers retaliated by eliminating the Reedy Creek Improvement District, the special taxing authority that effectively gave Disney control of the land in and around its sprawling Orlando-area theme parks. But Republicans in control of the state legislature changed course this year and voted instead to fire the board overseeing the district and gave DeSantis power to name all five replacements. It also renamed Reedy Creek as the Central Florida Tourism Oversight District and eliminated some of its powers.

DeSantis stacked the board with political allies, including Tampa lawyer Martin Garcia, a prominent GOP donor; Bridget Ziegler, the wife of the new chairman of the Republican Party of Florida; and Peri, a former pastor who once suggested tap water could be making people gay.

The controversy is central to DeSantis’ political narrative of a leader who is unafraid to battle corporate giants, even one as iconic and vital to Florida as Disney. It is a saga that is featured prominently in his new book and one he often shares at events across the country as he lays the groundwork for a likely national campaign.

At last month’s signing ceremony for the bill that gave him control of Reedy Creek’s board, DeSantis declared, “The corporate kingdom finally comes to an end.”

“There’s a new sheriff in town,” he added.

However, it may be a while before the new power structure has control, if Disney gets its way. One agreement signed by the outgoing board — which restricts the new board from using any of Disney’s “fanciful characters” — is valid until “21 years after the death of the last survivor of the descendants of King Charles III, king of England,” according to a copy of the deal included in the February 8 meeting packet.

“President Trump wrote ‘Art of the Deal’ and brokered Middle East peace,” said Taylor Budowich, spokesman for the Trump-aligned Make America Great Again PAC. “Ron DeSantis just got out-negotiated by Mickey Mouse.”

The stealth move by Disney prompted allies of DeSantis’ chief political rival, former President Donald Trump, to suggest the governor had been out-maneuvered.

DeSantis’ political operation insisted the governor’s appointees were holding Disney accountable.

“Governor DeSantis’ new board would not, and will not, allow Disney to give THEMSELVES unprecedented power over land (some of which isn’t even theirs!) for 30+ years,” Christina Pushaw, of DeSantis’ rapid response team, wrote on Twitter.

Sorry, Christina, DeSantis should stick to bullying minorities and pick on someone his own size. The Mouse just beat the Mouth.

The BBC scrutinized the new Disney agreement and found that it includes a “royal clause.”

The declaration is valid until “21 years after the death of the last survivor of the descendants of King Charles III, king of England”, according to the document.

Such so-called royal lives clauses have been inserted into legal documentation since the late 17th Century, and they are still found in some contracts in the UK, though rarely in the US.

The 151-page Florida agreement also states that no “fanciful characters” owned by Disney, including Mickey Mouse, can be used by the board. The use of the name Disney is also banned.

We know that Mayoral candidate Paul Vallas is getting money from Betsy DeVos. Vallas is also getting even larger contributions from hedge fund financiers because Vallas has promised not to raise taxes on them. His opponent Brandon Johnson wants to tax the highest earners to pay for improved education, mental health, and social services.

Matthew Cunningham-Cook reports in The Lever:

In the final stretch of Chicago’s closely watched mayoral race, candidate Paul Vallas is attacking his progressive opponent’s plan to fund public schools and infrastructure by taxing the wealthy — including a tax on financial trading that would hit some of Vallas’ top campaign donors.

The revenue plan proposed by Cook County Commissioner Brandon Johnson includes what he calls a “Big Banks Securities and Speculation Tax,” which would levy a $1 or $2 charge on most trades. Johnson’s campaign estimates this financial transaction tax could raise as much as $100 million annually for the city.

Vallas opposed Johnson’s tax plan during a debate last week, arguing that raising taxes “is the absolute wrong approach to take,” and that Chicago’s next mayor should instead focus on reducing spending.

Johnson’s tax proposal would hit financial firms that profit from speculative trades, often conducted at the millisecond level. Executives at six such firms have contributed $1.6 million to Vallas’ bid, according to a Lever review of campaign finance records. That’s nearly 10 percent of Vallas’ total mayoral fundraising haul.

Among the firms that profit from speculative trading is the hedge fund giant Citadel, whose financial dealings were swept up in the 2021 Gamestop controversy. Citadel’s billionaire founder and CEO Ken Griffin, Jr. has been a major funder of right-wing politicians like Florida Gov. Ron DeSantis and former Illinois Gov. Bruce Rauner.

Earlier this month, Griffin endorsed Vallas, telling Bloomberg News, “I really admire my colleagues who have supported Paul Vallas publicly with their voice and with their money.”

Johnson’s financial transaction tax plan mirrors those proposed by progressives at the state and federal levels. Griffin is on record opposing the idea, claiming during a 2021 congressional hearing that a national financial transaction tax would “injure Americans hoping to save for retirement.”

Ten Citadel executives have contributed a total of $762,000 to Vallas, a former Chicago Public Schools chief who helped Wall Street firms extract more than $1 billion in additional interest payments from the school district during his tenure, as The Lever reported last week.

Johnson is a former social studies teacherendorsed by the Chicago Teachers Union, which has denounced Griffin’s past interventions in local politics and support for mass school closings.

Vallas has additionally received donations from executives at Calamos Investments, the Chicago Trading Company, Cognitive Capital, Consolidated Trading, and DRW — firms that also profit from speculative trades.

Some of the largest U.S. financial exchanges are based in Chicago, including the Chicago Board Options Exchange and the Chicago Mercantile Exchange.

Critics of the proposed financial transaction tax say that it could drive some financial firms out of Chicago. Given the robustconnections between financialization and inequality, and the relatively small number of good jobs created by the financial sector, it’s unclear whether the departure of the industry would be a net negative for the city.

On the other hand, the passage of a financial transaction tax in Chicago or in Illinois could buttress efforts to pass such policies in New York — which had a stock transfer tax for most of the 20th century — and New Jersey.

“Enough of Illinois”

The bestselling 2014 book Flash Boys, authored by Michael Lewis, chronicles the world of high-frequency traders, who make enormous sums of money by running trades at the millisecond level, exploiting minor differences in prices to collect huge profits.

Citadel and its affiliated market making firm, Citadel Securities, have long been players in this arena. A 2013 CNN report showed Citadel employees executing 21 million trades in less than three minutes.

In January, Citadel was fined $10 million by South Korean regulators for violating the country’s securities laws while using its proprietary high-frequency trading algorithm.

Griffin moved Citadel from Chicago to Miami in 2021, telling Bloomberg this month that he’d “had enough of Illinois.” But the firm still maintains a significant presence in the city, and as an active high-frequency trader, the financial transaction tax championed by Johnson could cost Citadel enormously.

On January 23, when Johnson announced his financial transaction tax proposal, polls had begun to show a likely runoff between Johnson and Vallas in a then-crowded field of candidates. In Chicago’s municipal elections, if no candidate garners a majority in the first round of voting, the top two advance to a runoff.

That same day, Citadel executive Gerald Beeson contributed $100,000 to Vallas’ campaign, records show. Two days later, another Citadel executive gave $75,000. After Johnson and Vallas proceeded to a runoff, the cash pump was unleashed, with executives at companies connected to aggressive trading donating another $1 million to Vallas.

“Brandon Johnson wants to improve services like mental health and youth jobs programs by taxing speculative financial trading,” said Saqib Bhatti, co-executive director of the Action Center on Race and the Economy, which backs the transaction tax. “It doesn’t surprise me that executives at firms that specialize in this risky trading would pour money into his opponent’s campaign.”

A Citadel spokesperson told The Lever, “We moved our HQ from Chicago to Miami last year, and with it the bulk of our investment professionals and trading activity takes place outside of Illinois.”

Citadel did not answer questions about the number of employees the firm maintains in Chicago, nor the estimated impact of Johnson’s proposed financial transaction tax on its business. In city election records, all but one of the donations to Vallas from Citadel executives list addresses in Illinois.

The Vallas campaign did not respond to a request for comment.

Protecting Retirees

Griffin, Citadel’s CEO, opposed the idea of a financial transaction tax in a 2021 congressional hearing on the video game retailer Gamestop and other “meme stocks.” Citadel was accused by retail investors of ordering stock trading firm Robinhood to stop executing trades in Gamestop as the stock was rising, threatening Citadel’s short positions.

In the hearing, held over Zoom, progressive Rep. Rashida Tlaib (D-Mich.) asked Griffin whether his firm’s trading algorithm is programmed to trade ahead of transactions by pension and retirement funds — and whether that increases costs for such funds.

Griffin replied that his firm has “generated exceptional returns for pension plans and for endowments.”

Tlaib noted that as a result of high frequency trading, ordinary investors end up effectively paying a $5 billion tax each year.

“This means that Wall Street firms like yours engaging in high frequency trades are actually making money at the expense of my residents’ retirement funds,” she said, before asking whether Citadel opposed a federal financial transaction tax.

“We firmly believe that a transaction tax will injure Americans hoping to save for retirement,” said Griffin.

Citadel has also been a member of the Coalition to Prevent the Taxing of Retirement Savings, a collection of stock exchanges and trading platforms that banded together in 2020 to defeat a proposed financial transaction tax in New Jersey.

The coalition opposed the idea nationally in 2021 when it was being floated by the Biden administration, telling CNN, “This approach has a long history of unintended consequences that will penalize workers, pensioners, and American families.”

Griffin has a history of spending big to oppose increases on his taxes: In 2020, he spent nearly $54 million to help defeat a constitutional amendment that would have allowed the state of Illinois to establish a progressive income tax, akin to income taxes on the federal level. Last year, ProPublicaestimated that Griffin’s gamble could save him $51 million in taxes annually.

In the 2022 election cycle, Griffin spent nearly $75 million backing federal Republican candidates and committees, according to a Lever review of campaign finance data.

In the same March interview where Griffin praised Vallas, Griffin also endorsed a 2024 presidential run by DeSantis, saying, “I would love to see him run.” Griffin has donated nearly $11 million to DeSantis’ political committee, according to Florida records.

Current polls show a tight race between Vallas and Johnson. Chicago’s runoff election will take place April 4.


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Steven Singer, a teacher in Pennsylvania, explains here why he thinks charter schools should be abolished. They drain resources from the public schools. They are free to choose the students they want and exclude those they don’t want. They don’t produce better results than public schools. They close at alarming rates. They have been the source of many scandals. Some operate for profit.

Why do we need charter schools, he asks? We don’t.

MEDIA RELEASE


FOR IMMEDIATE RELEASE Wednesday March 29, 2023


Contact: Cassie Creswell, Illinois Families for Public Schools,773-916-7794


BETSY DEVOS’ SUPER PAC SPENDING THOUSANDS TO ELECT PAUL VALLAS MAYOR OF CHICAGO


VALLAS’ EDUCATION PLATFORM PULLED FROM DEVOS’ PRIVATIZATION PLAYBOOK

CHICAGO – Last week ex-President Trump’s former Secretary of Education Betsy DeVos made a $59,000 independent expenditure in support of mayoral candidate Paul Vallas’ campaign from a Super PAC she funds, the Illinois Federation for Children PAC.

The Illinois Federation for Children PAC was established in March 2022 and has received $465,000 in total from DeVos’ American Federation for Children Action Fund, a national 527 PAC. The Illinois Federation PAC’s chair, Nathan Hoffman, was a registered contract lobbyist in Springfield for the American Federation for Children until January this year.

Although DeVos has not endorsed Vallas, Vallas’ education plans for Chicago’s school system are directly aligned with DeVos agenda of school privatization, one she supported as Secretary of Education and promotes through her national network of advocacy organizations and PACs: defunding and dismantling public school systems and redirecting public funds via programs like vouchers for private schools.

In a little-noticed February 2022 op-ed in the Chicago Tribune, Vallas laid out a radical plan for privatizing Chicago Public Schools (CPS). In addition to supporting Illinois’ existing Invest in Kids tax credit scholarship voucher program, which already diverts millions to pay for vouchers for more than 4000 Chicago children, Vallas would create a city-funded voucher program and pay for it with funds from the CPS operating budget earmarked for teacher pensions. The pension payments would then instead be covered by surplus Tax Increment Financing dollars.

In that same op-ed, Vallas also proposes allowing religious private schools to become district-funded charter (or “contract”) schools, a policy so extreme that it was recently rejected by the conservative Republican attorney general of Oklahoma as “state-funded religion.”

Vallas also voices his support for “a reconstituted system in which parents get to direct the per-pupil public dollars to the school (or education model) of their choosing.” More recently, Vallas told WBEZ that “money should follow the students” and “we should be running districts of schools, not school districts.” The education platform on Vallas’ website calls for “dismantling the central administration” of CPS. These are exactly the policies that DeVos and American Federation for Children are advocating: funding students not systems and that dollars must follow students.
In June 2022, Vallas appeared on a panel with keynote speaker Corey DeAngelis, senior fellow at American Federation for Children. The panel, organized by extremist anti-LGBTQ+ parent group, Awake Illinois. Vallas later denounced Awake Illinois, but did not dissociate himself from DeAngelis or American Federation for Children.

Secretary DeVos’ education agenda was harmful to public schools on a national scale. Chicago voters should know that DeVos supports Vallas’ candidacy and that there is no daylight between DeVos and Vallas’ education policies.


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