Archives for category: Arizona

I previously reported that Arizona legislator Eddie Farnsworth was making a bundle by selling his for-profit charter chain to a nonprofit charter chain for millions of dollars, and that he had selected the members of the board of the new nonprofit and would get a contract from that board to manage the charter schools. All in all, a triumph of self-dealing.

Now new details have emerged about what a sweet deal this is for Mr. Farnsworth.

An Arizona legislator selling his state-funded charter school business will receive money from consulting work, rent and a loan to the chain beyond pocketing $13.9 million from the $56.9 million transaction itself.

The Arizona Republic reports that Gilbert Republican Rep. Eddie Farnsworth will make $78,000 of interest by loaning the Benjamin Franklin school chain $2.8 million for operating cash and be paid $79,600 in rent and an unspecified amount for consulting work.

Farnsworth declined to discuss the deal’s financial particulars but said he’s run Benjamin Franklin for 24 years and that he’s entitled to benefit from the transaction.

State Superintendent of Public Instruction Kathy Hoffman says Farnsworth is legally pocketing the money but that it’s not right.

A nonprofit whose directors Farnsworth recruited is acquiring Benjamin Franklin.

What’s new? Well, the new State Superintendent of Public Instruction was just elected, and she thinks this whole deal stinks. The previous state superintendent, Republican Diane Douglas, didn’t seem to care, didn’t raise any objection.

Kathy Hoffman, an educator, was swept into office with the blue mini-wave in Arizona a few weeks ago.

Linda Lyon is a retired U.S. Air Force officer who now lives in Arizona, where she was elected president of the Arizona School Boards Association. Her blog “Restore Reason” is not only reasonable but insightful and brilliant.

Her latest post dissects the claim that people who are concerned about poverty are somehow way out there as “socialists.”

She writes, and I quote in part,

I was recently in a public forum on education when a school board member asked me whether my call to address inequities in our schools was a call for the “redistribution of wealth”. I told him local control dictates that our Governing Boards, representing the communities in which they live, are best positioned to decide how to allocate district resources for the maximum benefit of all their students. I hoped, I said, they would do that.

His question though, caused me to think about this term, and why it seems to be a lightning rod for conservatives. Social scientist researcher Brené Brown believes it is because of the “scarcity” worldview held by Republicans/conservatives. “The opposite of scarcity is not abundance” she writes, “It’s enough.” Basically, “they believe that the more people they exclude from “having”, the more is available to them.” And, in this binary way of thinking, the world is very black and white (pun sort of intended), e.g., if you aren’t a success, you’re a failure, and should be excluded. Of course, this sort of mindset is a gold mine for those who fear-monger to garner support for their exclusionary agendas. “We’ve got to stop the illegal hoards from coming across the border” the narrative goes, or “they’ll be stealing our jobs and elections.”

I offer that the redistribution of wealth can also flow the other way as with the privatization of our public schools. Those who already “have” are redistributing the “wealth” of those who “have not”. They do this by encouraging the siphoning of taxpayer monies from our district public schools, for charters, home and private schools. Once slated for the education of all, our hard-earned tax dollars are now increasingly available to offset costs for those already more advantaged.

In Arizona, approximately 60% of our one million public K-12 students qualify for the free and reduced price lunch program, with over 1,000 schools having over 50% of their students qualifying. As you might guess, schools with the highest number of students qualifying for “free and reduced” are located in higher poverty areas and with few exceptions, have lower school letter grades. Zip code it turns out, is an excellent predictor (irrespective of other factors) of school letter grade. According to a study by the Arizona Partnership for Healthy Communities, “Your ZIP code is more important to your health than your genetic code” and a life-expectancy map for Phoenix released three years ago, “found life expectancy gaps as high as 14 years among ZIP codes.”

Clearly, when it comes to inequities in our public schools, the “public” part of the equation is at least as important as the “schools” part. In other words, the problem is bigger than our schools and must be dealt with more holistically if it is to be solved. Poverty is obviously a big part of the problem and is nothing new. What is relatively new, is the purposeful devaluation of concern for the common good and the marketing of privatization as the solution to all our problems.

Privatization has not however, proven itself to be the panacea for fixing our “failing schools”, rather, it is exacerbating their problems. In Arizona, all forms of education privatization (vouchers, tax credits, home schooling, for-profit charters) are taking valuable resources out of the public district school system while delivering mixed results. We’ve also seen countless examples of shameless self-enrichment and outright fraud with taxpayer dollars. Meanwhile, some 80% of Arizona students are left in underresourced district schools, many of which are seeing (not by accident), their highest level of segregation since the 1960s.

Noliwe M. Rooks, director of American studies at Cornell University and author of “Cutting School: Privatization, Segregation, and the End of Public Education, coined the term “segrenomics” to define the business of profiting from high levels of this segregation. In an interview with Valerie Strauss of the Washington Post, Rooks said that, “Children who live in segregated communities and are Native American, black or Latino are more likely to have severely limited educational options. In the last 30 years, government, philanthropy, business and financial sectors have heavily invested in efforts to privatize certain segments of public education; stock schools with inexperienced, less highly paid teachers whose hiring often provides companies with a “finder’s fee”; outsource the running of schools to management organizations; and propose virtual schools as a literal replacement for — not just a supplement to — the brick and mortar educational experience. “ She went on to say that, “The attraction, of course, is the large pot of education dollars that’s been increasingly available to private corporate financial interests. The public education budget funded by taxpayers is roughly $500 billion to $600 billion per year. Each successful effort that shifts those funds from public to private hands — and there has been a growing number of such efforts since the 1980s — escalates corporate earnings.”

This shift of taxpayer dollars from public to private hands is clearly a redistribution of wealth. Worst of all, in Arizona, it is a redistribution of wealth with little to no accountability nor transparency. Private, parochial and home schools are not required to provide the public information on their return on investment. And make no mistake, this investment is significant and continues to grow. In 2017 alone, taxpayer dollars diverted from district schools to private school options, amounted to close to $300 million. About $160 million of this, from corporate and personal tax credits with the other $130 million from vouchers. All told, according to the Payson Roundup, “vouchers have diverted more than $1 billion in taxpayer money to private schools. These dollars could have instead, gone into the general fund to ensure the vast majority of Arizona students were better served.

Jeff Bryant reviews the victories for public education in the last elections.

The big victories were the overwhelming defeat of voucher legislation in Arizona and the Tony Thurmond’s election over the charter lobby’s candidate Marshall Tuck in the Califotnia race for state school superintendent, despite Tuck’s more than 2-1 funding advantage.

And there were many more victories, especially in governors’ races.

In gubernatorial races across the Midwest, Democrats ran and won with strong oppositional messages against school privatization.

In Michigan, Gretchen Whitmer won a governor’s seat formerly occupied by Rick Snyder after campaigning to “end the [Betsy] DeVos agenda in Michigan,” close for-profit charter schools in the state, and propose additional oversights for charters.

In Minnesota, Democratic challenger for an open governor’s seat Tim Walz, a former public high school geography teacher and football coach, pledged to block any proposed voucher programs. He won decisively.

In Illinois, Democratic challenger J.B. Pritzker defeated incumbent Republican Governor Bruce Rauner, while pledging to end the state’s education tax credit voucher program, which already diverts public tax dollars to pay for private school tuition for 5,600 students….

In what is perhaps the most startling of charter school turnarounds, midterm elections in New York took down a longstanding coalition of Republicans and Democrats in the state Senate who colluded with charter advocate Democratic Governor Andrew Cuomo to expand these schools and keep them relatively regulation-free.

As New York City public school art teacher and citizen journalist Jake Jacobs reports for the Progressive, a faction of eight Democratic state senators calling themselves the Independent Democratic Conference (IDC) had for years shared power and donors with Senate Republicans to work with Governor Cuomo in maintaining a “favored status” for charter schools in the state.

In September primaries, six grassroots-backed Democratic candidates ousted IDC members, and then, in turn, handily beat their Republican opponents in November. Despite being vastly outspent by the Republicans, the insurgent Democrats pressed their cases to stop charter schools from taking over space in public school buildings and to block attempts to lift the cap on the numbers of charters that can operate in the state. Most supported a moratorium on new charter schools proposed by the NAACP.

Because of victories by these insurgent Democrats, who will insist on more scrutiny of charter schools, Jacobs foresees “a new landscape” in the state legislature “where evidence and research matter more than Albany’s rampant ‘pay-for-play’ arrangements” that have given charters the upper hand.

Similarly, in red states where teacher rebellions have begun to turn the tables on the school privatization industry, public school advocates are seeing a transformed political landscape where resistance is not only possible but winnable.

After midterm elections in Arizona, “we will have the most balanced state legislature since the 1980s,” says Beth Lewis, “with roughly half of the legislators having declared full support for fully funded public schools.”

The Primavera online charter school in Arizona is rewarding himself handsomely with taxpayers’ money. Will Governor Doug Ducey or the legislature care or will regulate this self-dealing?

The CEO of Primavera, whose multimillion-dollar payments to himself spurred calls for more oversight of Arizona charter schools, received another $1.3 million from the online charter this past school year, records show.

Damian Creamer, the sole owner of the for-profit Primavera, also paid $27.6 million from the school’s state education funding to another company he owns, Strongmind. The payment was for curriculum, enrollment, technical support and other services.

Meanwhile, the school, which reported it had the third-worst dropout rate in Arizona, gave its 95 teachers a 1 percent pay raise last school year.

Primavera disclosed its spending for the period from July 1, 2017, to June 30, 2018, in an independent audit required by the Arizona State Board for Charter Schools.

Creamer did not respond to requests for comment.

The audits provide a snapshot of how lightly regulated charter operators use tax dollars. Charter schools are not subject to the same financial or governance oversight as traditional district public schools, and The Republic has found that some operators, like Creamer, have become charter school millionaires by operating the public schools.

After The Republic reported this year that Creamer had paid himself $8.8 million despite operating a school with the state’s third-highest dropout rate, Attorney General Mark Brnovich called for the law to be changed to allow his office to investigate charter schools more broadly.

Creamer has said the $8.8 million payment was for tax purposes but has not provided documents to support that claim.

“When you see public money go to line the pockets of someone who is supposed to help students become a millionaire, I can’t believe it’s not a crime,” Brnovich said at the time.

Since then, a Republican state senator and Gov. Doug Ducey have said they, too, will push to overhaul Arizona’s charter-school laws to require more transparency and compliance with the same procurement and conflict-of-interest laws that govern district schools.

Brnovich has criticized Creamer because the online charter school owner uses education funds to buy services from related businesses he owns or controls. A related-party transaction or self-dealing is illegal for school districts but common among Arizona charter schools.

Basis Charter Schools Inc., for example, pays about $10 million as an annual, no-bid management fee to a company controlled by its founders. American Leadership Academy founder Glenn Way made at least $18.4 million building schools for ALA through no-bid contracts. And state lawmaker Eddie Farnsworth is poised to make at least $11 million by selling his Benjamin Franklin schools to a non-profit company he created.

Brnovich’s office recently obtained a fraud conviction against Daniel K. Hughes, president and CEO of Discovery Creemos Academy in Goodyear, after he abruptly shuttered his charter school in January and defrauding taxpayers of at least $2.5 million by inflating the school’s enrollment.

Primavera still amassing cash

Primavera has accumulated so much money that it has set aside $8.5 million for Creamer in stockholder’s equity, records show. Creamer can take the money anytime.

In Arizona, educator Kathy Hoffman has declared victory in her race for State Superintendent, defeating Republican Frank Riggs.

Hoffman is a Democrat who was inspired to run by the #RedforEd movement. Riggs is a Republican.

Riggs, a former charter leader and ex-Congressman from California, held a small lead on election night, but as the count continued, Hoffman pulled ahead.

She is currently leading Riggs by 43,000 votes. There has been no official announcement and some votes remain uncounted..

Hoffman, a former teacher, was trailing by 8,000 at the end of election night with nearly 500,000 votes remaining. She took the lead by 20,000 after the Thursday count reveal, added another 10,000 vote advantage on Friday and added another 13,000 vote advantage on Saturday.

Arizona Democratic Party Chair Felecia Rotellini offered this statement congratulating Hoffman.

Congratulations to Kathy Hoffman on becoming Arizona’s next Superintendent of Public Instruction. Arizona’s students need a dedicated educator to turn our state’s public schools around and to hold Republican politicians accountable for providing our teachers with much needed and much deserved pay increases. Kathy is the embodiment of the #RedforEd movement, and she’ll direct that activist spirit into serving Arizona’s students.

There are now approximately 162,00 votes remaining to be counted in Maricopa County and several thousands in other counties.

The Arizona Republic reports that voucher advocates are undeterred by their overwhelming defeat at the ballot box on Tuesday. The fact that the public rejected vouchers by 65-35% at the same time that rightwing Governor Doug Ducey was re-elected does not deter the Koch brothers and the DeVos family. Very likely they presume that the parents and teachers who beat them exhausted their funds.

Less than a day after the crown jewel of their school choice policies was crushed at the ballot box, prominent school choice advocates doubled down by calling for the Arizona Legislature to promote school choice and vouchers laws.

Both the Goldwater Institute and American Federation for Children issued statements backing school choice in the hours after voters rejected by a 65-35 margin Proposition 305, a massive expansion of school vouchers.

The vote overturned the Empowerment Scholarship Account expansion that would have allowed all 1.1 million Arizona public school students to use public money to attend private school. The number of students receiving the money would have been capped at 30,000.

In a statement to supporters, the Goldwater Institute said “the fight for school choice continues.”

“Empowerment Scholarship Accounts help families create a custom educational experience— one as unique as each child. Unfortunately, school choice opponents were successful in denying this option to all Arizona families, regardless of income,” Goldwater Institute President Victor Riches said in the statement.

“Across the country, ESAs have garnered the support of Republicans and Democrats alike because they provide a commonsense way for families to help pay tuition, provide tutoring, and purchase the tools they need to give their students the best chance at success in school and down the road.”

He said other states — including North Carolina and Florida — have followed Arizona and instituted ESAs for selected students.

ROBERTS: Arizona voters said ‘Hell no’ to Ducey’s school voucher plan. Will he listen?

“Arizona has been a national leader on the path to greater school choice for families,” Riches said. “The Goldwater Institute will continue the fight to give students and their families a greater say in their education in Arizona and across the country.”

Meanwhile, American Federation for the Children congratulated Republican Gov. Doug Ducey for defeating “anti-school choice” candidate Democrat David Garcia in the race for governor.

“Governor Ducey is a pro-education, pro-school choice Governor whose leadership has resulted in higher pay for teachers as well as more educational choice options for families,” said the statement from AFC’s Arizona communication director Kim Martinez. “Ducey is a staunch supporter of Arizona’s Empowerment Scholarship Account program, which helps disadvantaged children, many with special needs, access different types of schools or curriculum.”

The statement didn’t mention Prop 305.

The current voucher program, which enrolls 5,600 students at a cost of about $62 million– gives parents 90% of the funding that would have gone to their local public school district. The parents get a debit card which is supposed to cover non-public school expenses, whether for private or religious or home schooling. The program has minimal oversight or accountability. A recent survey by the Arizona Republic showed that some parents were using the debit card for personal expenses, such as cosmetics or clothing.

The ESA program gives parents 90 percent of the funding that would have otherwise gone to their local public school districts. The voucher money, loaded on debit cards, is intended to cover specific education expenses such as private- or religious-school tuition, home-school expenses and education-related therapies.

A spokeswoman for SOS Arizona, the anti-voucher organization, said they would fight renewed efforts to enact a program that the voters opposed overwhelmingly.

But of course the Koch brothers and the DeVos family have unlimited resources. The parents and educators rely on volunteers.

The former director of the Bradley Academy of Excellence pleaded guilty to conspiracy and theft of millions of dollars.

Daniel Hughes, the former director of the Bradley Academy of Excellence, pleaded guilty Wednesday to conspiracy and theft.

According to the Arizona Attorney General’s Office, the Goodyear charter school over-reported its number of students enrolled for two years so it could receive additional funding.

For the 2016-2017 school year, 191 of the 652 reportedly enrolled students were fake. For the next school year, 453 of 528 were fake.

School officials worked together to create the fake students, which ultimately caused the school to receive $2.5 million in overfunding: about $2.2 million from the state, $230,000 from the U.S. Department of Agriculture for meals and $91,000 from the U.S. Department of Education.

Related Links
West Valley charter school abruptly closes doors amid financial woes
Hughes pleaded guilty to one count of conspiracy and one count of theft — both felonies — and faces between three and 12.5 years in prison.

The school, previously known as the Bradley Creemos Academy, abruptly closed in December before it was scheduled to be audited by the Arizona Department of Education.

Vouchers are a zombie idea. They don’t help poor kids. The kids who use them fall farther behind in school.

Voters have turned them down again and again, as happened yesterday in Arizona.

Laurie Roberts of the Arizona Republic tells the story here about how vouchers became roadkill at the ballot box.

“Gov. Doug Ducey may have gotten a second term but he also took a powerful punch to the gut as his plan for a massive expansion of school vouchers was killed.

“Arizona voters didn’t just defeat Proposition 305. They stoned the thing, then they tossed it into the street and ran over it.

“Then they backed up and ran over it again.

“Voters defeated Ducey’s voucher plan by more than 2-1.

“Ouch.”

She goes on to warn that the pro-voucher billionaires are not finished. They are not swayed by the popular vote. They will be back.

Andrea Gabor surveys the election and reminds us that while Trump has dominated the coverage of the election, school issues will be front and center in many states.

https://www.bloomberg.com/view/articles/2018-11-05/midterm-elections-where-schools-not-trump-are-the-focus

“National issues are getting most of the attention in the run-up to Tuesday’s midterm election, including health care, immigration and President Donald Trump.

“Yet from Arizona to Kentucky to Wisconsin, politics also remains fiercely local. Especially in states that cut school budgets as a result of the 2008 recession and Republican-sponsored tax cuts, public school funding has become a hot-button issue in many state legislative and gubernatorial races, often scrambling party loyalties. Six years after the Great Recession, most states were still spending less on schools than they were before 2008, according to a 2016 report from the Center on Budget and Policy Priorities.

“Teachers in several Republican-dominated states led a political groundswell earlier this year, with walkouts that closed schools. Over 300 teachers are running for political office in the midterms, more than double the number that did so in 2014. While many of the teacher candidates are Democrats hoping to unseat Republicans who cut school funding and promoted privatization in the form of charter schools and private-school voucher programs, educational activism cuts across party lines.

“In Arizona, a small group of mothers and teachers organized to oppose a 2017 law that expanded the state’s voucher program, which steers taxpayer dollars from the state’s public schools to private and religious schools. More than 100,000 people signed a petition to put their referendum on the ballot, provoking a counterattack from Americans for Prosperity, an organization backed by the conservative activists David and Charles Koch. It sued, unsuccessfully, to have it taken off of the ballot. Both sides have identified the referendum on the voucher law as a top priority.”

After years of budget cuts, some districts and states are likely to increase investment in education. And in a sign of the times, the anti-public school Governor Scott Walker claims to be “the education Governor.” Hopefully, voters will not be fooled.

This story in the New York Times by veteran education writer Dana Goldstein describes the peculiar situation in Arizona, where everyone claims to support public education even if they don’t.

Even Governor Doug Ducey, the nemesis of public schools, is boasting about his thin education record.


PHOENIX — Campaign signs are clustered on street corners and highway ramps across this low-slung, sun-baked city, proclaiming “#YesforEd” and “Protect Public Education.” In TV commercials, the Republican governor promises to “put more money in the classroom, not bureaucracy.” “Our schools are falling apart,” his Democratic challenger counters.

Six months after tens of thousands of red-clad teachers swarmed the Arizona Capitol in a weeklong walkout, demanding higher pay and more funding for schools, education is a dominant issue in the state’s elections next month.

The teachers’ protest movement, which calls itself #RedforEd, has transformed the political battleground. The movement remains so popular in Arizona that candidates and causes across the ideological spectrum are competing to identify with it — including conservatives who, in years past, might have been more likely to criticize teachers or unions than associate with activist educators.

That has left some Democrats — teachers’ traditional allies — scrambling to differentiate themselves.

It is a pattern that has played out in several states where teachers have walked off the job this year, including Oklahoma, West Virginia and Kentucky. The teachers’ movement has energized Democrats in red states, with record numbers of educators running for office. But it may have had an even greater impact on Republican politics. In primaries, it has picked off Republican legislators who opposed funding for teachers and schools. And it has convinced conservative leaders that voters, particularly suburban parents, are looking for full-throated support, and open pocketbooks, for public education.

In Arizona, which has some of the lowest school funding in the nation, nowhere are these issues more prominent than in the governor’s race. Both candidates have claimed the mantle of education champion.

“I’m the one who’s been on the side of the teacher,” Gov. Doug Ducey, the Republican incumbent, said in an interview at his campaign headquarters last week.

Before his state’s teachers threatened to walk out, Mr. Ducey had offered them a 1 percent raise. But under pressure from the #RedforEd movement, he eventually proposed and signed a bill promising a 20 percent pay hike by 2020.

Teachers have already seen some of that money in their paychecks. And even before the walkout, Mr. Ducey had signed several other bills that provided new money for schools. Still, overall education funding, adjusted for inflation, remains significantly below the pre-recession levels of a decade ago. Parents and teachers say they can see the difference through aging textbooks, staff shortages and fewer electives and field trips.

The governor, the former chief executive of the ice cream franchise Cold Stone Creamery, argues that a growing economy will ensure that schools funding and teacher pay will continue to rise. He also says that if re-elected, he will seek to cut taxes — a pledge that leaves some educators skeptical they will see all the funding they have been promised.

Mr. Ducey’s challenger, David Garcia, a professor of education at Arizona State University, has a radically different vision.

Mr. Garcia strongly supported the walkout and a ballot initiative effort that grew out of it, called InvestinEd, which would have funded schools by raising income taxes on individuals and households earning more than $250,000. The State Supreme Court struck InvestinEd from the ballot in August, citing technical questions about the proposal’s wording.

Mr. Garcia says that if he is elected, he will push to close corporate tax loopholes, end tax credits for private school tuition and revisit the effort to raise taxes on the wealthy, perhaps through a new ballot initiative.

Those are fighting words in a state where libertarianism runs deep, and where a decades-long tradition of cutting taxes has maintained some of the lowest corporate and personal income taxes in the nation. (Arizona relies in part on sales taxes for funding schools.)

But Mr. Garcia is betting that concern about public education among women, younger voters and Latinos — including many who are newly registered, or do not typically turn out for midterm elections — can carry him. He says those voters are not being reached by pollsters, who have him trailing Mr. Ducey….

Mr. Garcia is an unusual candidate in Arizona. He is an Army veteran with a Ph.D. from the University of Chicago and an expert on the huge troves of data that have transformed education research over the past two decades.

He used some of that data to create the state’s first school rating and accountability systems when he worked for the state Education Department in the late 1990s and early 2000s. In that role, he sometimes butted heads with teachers’ union leaders, who at the time were skeptical of using student data to judge schools, he said.

Nevertheless, the state’s largest teachers’ union, the Arizona Education Association, has enthusiastically endorsed him this year.

Mr. Garcia sometimes sounds more like Senator Bernie Sanders of Vermont than the centrist Democrats more typical in Arizona, like Kyrsten Sinema, the Senate candidate, who has not endorsed him.

NPE Action has endorsed Garcia over Ducey, because Ducey is a pro-voucher libertarian who has done his best to 7ndermine public education. We have qualms about his infatuation with data and his admiration for charter schools, but support him because of his opposition to vouchers, his determination to fund public schools, and his commitment to clean up Arizona’s charter swamp of self-dealing and corruption.