Archives for category: Billionaires

Today, the Broad Prize for the nation’s best charter schools will be announced in Nashville at the annual meeting of the National Alliance for Public Charter Schools. The finalists are IDEA Public Schools, Success Academy Charter Schools and YES Prep Public Schools.

John Merrow laments here that the Broad Foundation–and its billionaire leader Eli Broad–has given up on public schools and has decided to drop some money into charter schools. There was no Broad Prize for urban districts either last year or in 2016. This is only right and just, because Eli Broad favors charter schools over public schools.

Eli Broad launched his Broad Prize for Excellence in Urban Education in 2002, when the first award of $1 million went to the Houston Independent School District. Houston must have been an unusually stellar district because it improved so much that it won the Broad Prize again in 2013. The next year, 2014, was the last year that the prize was awarded, and it went not to a big urban district but to Gwinnett County Public Schools in Georgia and to Orange County Public Schools in Florida. Eli Broad, mastermind of American education (a title shared with Bill Gates) decided that urban districts were no longer improving fast enough to satisfy him, and he suspended the Broad Prize for Urban Education. After all, how many times can you give the prize to Houston?

If you go to the Broad Foundation website, linked in John Merrow’s post, you may gag on some of its “beliefs.”

Like the first one: We believe public schools must remain public. Nothing about charter schools is public, except the money they get from government. Otherwise, they are managed by private boards, which do not hold open meetings, with finances that are neither transparent nor accountable, and with disciplinary rules that do not comply with state requirements for public schools. In short, they are not transparent, they are not democratically controlled, they are not accountable, and they are thus NOT public schools.

One would hope to believe that the Broad Foundation actually does believe that teachers deserve to be treated with respect as professionals, but you learn on this website that Broad is a major funder of StudentsMatter, the group promoting lawsuits to strip teachers of their right to tenure and seniority, both of which protect academic freedom.

Merrow writes that it is not surprising that Eli Broad has dropped the award for urban districts:

But that’s not really new news, as the Foundation’s own pie chart reveals. Since 1999, the Foundation has made $589,500,000 in education-related grants, and 24% of the money, $144,000,000, has gone directly to public charter schools. No doubt some of the ‘leadership’ and ‘governance’ dollars have gone to public charter schools, which at best make up 5% of all schools. Over that same time period, 3% of the money, $16,000,000, went to winners of the Urban Education Broad Prize (for college scholarships).

In other words, the Foundation’s pro-charter tilt has been evident for a long time. Now it’s getting steeper and more pronounced.

Mr. Broad hoped that urban districts could improve “if given the right models or if political roadblocks” (such as those he believes are presented by teachers unions) “could be overcome,” said Jeffrey Henig, professor of political science and education at Teachers College, Columbia University.

The suspension of the prize for urban education could signal a “highly public step” toward the view that traditional districts “are incapable of reform,” Henig said. Mr. Broad seems to have already taken that step in his home city of Los Angeles, where he is backing an effort to greatly expand the charter sector.

Apparently it’s pretty simple for the folks administering the Broad Prize in Urban Education: Successful School Reform boils down to higher test scores. I see no public sign that anyone at the Foundation is questioning whether living and dying by test scores is sensible pedagogy that benefits students. And no public evidence that they’ve considered what might happen if poor urban students were exposed to a rich curriculum and veteran teachers. If poor kids got what is the birthright of students in wealthy districts!

In the mind of Eli Broad, higher test scores means great schools. Period. He doesn’t believe that public schools are capable of improving because they are hobbled by such things as teachers’ unions, and job protections for teachers.

Are you waiting with bated breath to learn which charter chain wins the Broad Prize? I’m not. He is a dilettante whose money has convinced him that he deserves to privatize the public schools of America. He has forgotten that he was educated in public schools. Like other billionaires, he doesn’t trust democracy. Privatization suits him. Like the rest of us, his days on this earth are limited. He may be remembered for his gifts to the art world, for the museum he built and named for himself, for his contributions to medical research. But in education, his name will be reviled for his contempt for a democratic institution on which tens of millions of children depend.

Jeff Bryant, a crack investigative journalist, writes on Bill Moyers’ blog about the big money that has chained many Democrats to the charter school industry, putting them in the bizarre position of defending privatization of public education.

Bryant cites evidence that the two big funders of political campaigns in California’s recent primaries were Big Oil and the Charter Industry.

The same dynamic is playing out in other states, where Big Money is buying Democratic candidates on the charter issue.


In California and beyond, charter-school advocates also team up with big finance to influence Democratic Party candidates in state and local elections.

According to a report from the Center for Media and Democracy, an organization calling itself Democrats for Education Reform has been effective in a number of states at getting Democratic candidates to team up with traditionally Republican-leaning financial interests to defeat any attempts to question rapid expansions of unregulated charter schools.

According to the CMD study, DEFR is a PAC “co-founded by hedge fund managers” to funnel “dark money” into “expenditures, like mass mailings or ads supporting particular politicians, that were ‘independent’ and not to be coordinated with the candidates’ campaigns.” The organization and its parent entity also have ties to FOX’s Rupert Murdoch and Charles and David Koch.

Colorado is another state where local elections often pit Democrat versus Democrat in campaigns where the interests of big money oppose progressive candidates who question the need to expand charter schools and exempt them from transparency laws.

In Tennessee also, the interests of right-wing organizations such as Americans for Prosperity often overlap with Democratic government officials intent on expanding charter schools.

Even in traditionally liberal states such as Massachusetts, progressive Democrats assailing the state’s conservative Republican governor for his push to “privatize” education with more charter schools are opposed by DEFR and other big money interests who declare support for charters, because these schools have had the backing of the Obama administration and, well, it’s about “kids.”

Will the public be hoaxed again by the Big Money interests?

As Matt Taibbi explains in Rolling Stone, this year’s presidential primary had the unusual turn of events where “the all-powerful Democratic Party ended up having to dig in for a furious rally to stave off a quirky Vermont socialist almost completely lacking big-dollar donors or institutional support.”

Taibbi sees many convincing signs that “[p]eople are sick of being thought of as faraway annoyances who only get whatever policy scraps are left over after pols have finished servicing the donors they hang out with.”

Clearly there are enough voters in the Democratic Party base who feel this way to convince some of their party’s candidates and current officials to challenge the wide leeway the charter school industry wants. So maybe more Democratic candidates who’ve tapped charter-school money will have some explaining to do.

This is one of the best articles you will ever read on the subject of for-profit schooling in poor countries. It is beautifully illustrated and contains interviews with key players in the for-profit education industry. The author is Graham Brown-Martin. The subject is public-private partnerships in Africa. The discussion centers on the efficacy and ethics of the movement to turn the responsibility for schooling over to for-profit Bridge International Academies in countries that have lagged far behind in providing universal public education. What you will learn is that the “market” is huge. The cost of the scripted schooling is $6 a month, which leaves out many children whose families cannot afford $6 a month.

Start with the cartoon at the opening of the link, which explains “the magic of the market.”

The billionaire boys club has opened a new branch in Connecticut, where they have a charter-loving governor, Dannell Malloy.

Connecticut experienced a gigantic charter scandal involving the governor’s favorite charter chain Jumoke Academy. It turned out that the leader of Jumoke had padded his resume and had hired people with criminal records, and engaged in other improprieties. But the governor learned nothing and continues to press for deregulated, unsupervised charter schools. (See here and here.) Jumoke had collected $53 million in public funds between 1998-2013, with no oversight. There was a glimmer of hope that this scandal would lead to legislative action to prevent future scandals.

The new billionaire-funded group is called “Connecticut Forward,” which should not be confused with the PAC of the same name that supported Malloy’s re-election bid. Among the billionaires contributing to this new organization are Michael Bloomberg, Paul Tudor Jones, and Ray Dalio. Don’t be surprised to see members of the Sackler family joining the effort to expand charter schools; these are the Connecticut billionaires who love charter schools and made their fortune by selling Oxycontin, the deadly prescription drug that has addicted so many people.

The organization is nonprofit, but it will survey the record of legislators to see which ones support replacing public schools with privately operated charter schools.

Once their survey is complete, pro-charter legislators can expect contributions to come rolling in. The group, please remember, is nonprofit. That means it has an IRS status that does not permit it to engage in political action.

Families for Excellent Schools, which has wrangled Bridgeport administrators over education reform, is behind the election year initiative.

“That struggle has lots of allies and lots of adversaries, and it will continue until every kid in the state has access to the education that they deserve,” said Jeremiah Kittredge, the CEO and co-founder of Families for Excellent Schools. “I actually think the biggest adversary here is the struggle of time.”

Connecticut has 24 charter schools, with five in the state’s largest city, Bridgeport, enrolling 2,350 students. There are three charter schools in Stamford and one in Norwalk.

New York City, on the other hand, added about 180 charter schools during Bloomberg’s tenure as mayor. Bloomberg’s former press secretary, Stu Loeser, runs the public relations and media consulting firm hired by Families for Excellent Schools.

In Bridgeport, FES successfully fought a proposed moratorium on charter schools in 2015. Some skeptics still view the push for public charter schools as a step toward privatization by wealthy outsiders, however.

Imagine that! Skeptics think that the goal of the charter school movement is “privatization by wealthy outsiders.” Where did they get that idea?

For giants of the hedge fund industry such as Jones and Dalio, both Greenwich residents, charter schools have become a favorite cause. Each has contributed to Families for Excellent Schools, which reported $17.6 million in contributions and grants for the fiscal year ending June 30, 2015, to the IRS. Kittredge’s compensation was $222,297 for that time period, more than Connecticut’s state education commissioner and New York City’s schools chancellor.

A spokesman for Jones declined to comment. Multiple requests for comment were also left for Dalio, whose Westport hedge fund, Bridgewater Associates, is the largest in the world. Bloomberg has not contributed directly to FES, but has been strongly linked to the charter school movement.

Alan Singer writes here that John Paulson, whose worth is in the neighborhood of $11 billion, is raising funds for the Trump campaign. Paulson gave $8.5 million to Eva Moskowitz’s Success Academy charter chain last July.

Trump is a strong supporter of charter schools. Singer says he also endorses vouchers. Trump said during one of the debates “I love charter schools.” Of course, he does.

It is clear that very rightwing Republicans and very wealthy individuals love privatization. On this blog, we often hear from charter school supporters about school choice as “the civil rights issue of our time.” They never explain why every single rightwing governor also favors charters. They never explain why they are in the same chorus with Scott Walker, Jeb Bush, and the rest of the Republican glitterati.

The great deception of our time is the propaganda campaign waged by billionaires to persuade the public that privatization advances civil rights.

Presumptive Republican nominee has said that billionaire Carl Icahn is the kind of person he would pick as Secretary of the Treasury.

It seems there is a magnetic attraction between billionaires and charter schools.

Investigative journalist George Joseph took a closer look at Carl Icahn’s investment in charter schools:

Like Trump, Carl Icahn has also named a school after himself—seven charter schools in New York City to be exact (Icahn Charter School 1, Icahn Charter School 2, Icahn Charter School 3, etc.). And as with Trump University, the money trail suggests the organization running these schools may have served to enrich its billionaire founder, Icahn, at the expense of its own students. An AlterNet investigation finds that Carl Icahn appears to have treated his charity like a personal piggy bank, using it to make potentially tens of millions for himself while benefiting from tens of millions in tax deductions.

In 1997, Carl Icahn made a $100 million tax-deductible “contribution” to his public charity, the Foundation for a Greater Opportunity, scoring about a $45 million income tax reduction, according to an estimate by Gregg Polsky, a law professor at UNC. In January 2006, Icahn’s foundation suddenly sold back the stock gift to an Icahn corporation, Modal LLC. The $100 million gift in American Railcar Industries Inc. shares was conspicuously sold three days before the company was to go public, a process that often sparks a short-term hike in share value. The convenient date of the sale strongly suggests Icahn knew his limited liability corporation, rather than his educational charity, would make a killing off the public offering.

Isn’t it wonderful how some people, like Icahn, have figured out how to do good and make money at the same time?

This is a provocative, must-read article by Barry C. Lynn of the New America Foundation and Phillip Longman, a senior editor at the Washington Monthly. They review the history of Populism and import its essential ideas into the present era.

The… first Populists drew upon a political philosophy with roots back to the American Revolution. Part of this tradition is familiar—a belief that government must be run by the people. Populists called for direct election of senators and led the push for referendums and initiatives to bypass corrupt legislatures. But another part is largely forgotten—that the people are sovereign over the economy and have a responsibility to structure markets to promote the common good.

This was the “democratic republicanism” of Thomas Jefferson and James Madison. It holds that, just like political power, economic power must be distributed as widely as possible. Thus, the Populists focused much of their energy on combating efforts to monopolize commerce and natural resources, especially land. They also closely studied how to govern large corporations, and strongly supported unionization of workers and farmers to counter the power of concentrated capital.

Read their proposals for restoring power to the people.

This is one I like a lot, and I would add charter schools to their list:

What would a True Populist do today? Insist that the managers of any corporation receiving more than a quarter of its revenues from taxpayers—including defense contractors, universities, and hospitals—work at government wages. And require that the bosses of local public utilities earn no more than the public servants who regulate them.

They also propose breaking up the giant monopolies of Google, Amazon, and Facebook, and localizing retail, banking and other services.

Since the 1970s, both Democrats and Republicans have undone almost all these laws. The result has been a concentration of power and wealth that would have horrified True Populists. In groceries, pharmacies, hardware, and office supply, control has been consolidated in as few as one or two giants. So, too, wealth—the Walton family alone is now as rich as 140 million other Americans combined. And with the rise of online goliaths like Amazon, which aims to be the “Everything Store,” control will only be yet further concentrated.

What would a True Populist do today? Besides neutralizing large online retailers, a True Populist would revive the laws Americans used to localize banking, farming, and retail through the heart of the twentieth century.

About fifteen years ago, the Bush administration dropped the guard against vertical integration. Since then Comcast, which distributes television shows, has been allowed to merge with NBC, which produces shows. Amazon, the dominant retail marketplace for books, has been allowed to go big time into publishing books. And Google, which dominates search, has been allowed to compete directly with companies like Yelp, which rely on Google’s search engine.

What would a True Populist do today? Break up Amazon, Facebook, Google, Comcast, and any other essential network monopoly by banning them from owning companies that depend on their services.

Wow! Now here is some fresh thinking.

The Eli Broad-funded group “Great Public Schools Now” (sic) has released its plan for the destruction of democratically controlled public education in Los Angeles.

Despite the failure of charter schools to improve the education of low-income students unless they are free to choose the students they want and kick out the ones they don’t want, billionaire Eli Broad wants to put 160,000 children who are now in public schools into privately managed charters. The twist in this plan is that Broad and his allies have promised to take control of public schools, magnet schools, and other schools as well as their own charters. It seems that the billionaires and their minions know how to create successful schools. One wonders if this means that even the public schools will adopt “no excuses” discipline and kick out the kids who refuse to conform. To do this, the corporate reformers have to retain some public schools where they can drop the kids they don’t want.

The goal is to expand access for 160,000 students GPSN has identified as attending failing schools in 10 low-income Los Angeles neighborhoods to successful schools it wants to help replicate or expand.

The neighborhoods are in South LA, East LA and the northeast San Fernando Valley, chosen because they have “chronically underperforming schools and few high-quality school choices for struggling families,” the plan states.

GPSN says it will provide funding and support to high-performing schools no matter what type of school — charter, traditional, pilot, magnet or partnership — so they can be replicated and expanded. It will also support proposed schools with the potential to be high quality.

The widening focus is a shift from an early plan leaked last year that was developed by the Eli and Edythe Broad Foundation to expand charter schools in LA.

“This is a different kind of initiative, very different than has been attempted in Los Angeles before,” said Myrna Castrejon, GPSN’s executive director. “I am particularly excited about the opportunity to really work across sectors to really strengthen all of public education.”

GPSN also is revealing today the makeup of its seven-person board, all of whom boast decades of experience in education. In addition to Siart and Flores, who is also a senior fellow at the Campaign for Grade-Level Reading, the board members are Gregory McGinity, executive director of the Eli and Edythe Broad Foundation; Maria Casillas, founder of Families in Schools; Virgil Roberts, chairman of the board of Families in Schools; Marc Sternberg, K-12 education program director for the Walton Family Foundation, and Allison Keller, senior vice president and chief financial officer and executive director of the W.M. Keck Foundation.

All of these are corporate reformers with “decades” of privatizing public schools.

Bear in mind that in California, charter schools are not only deregulated, they operate without any supervision. There have been numerous charter scandals involving fraud and misappropriation of funds.

This is a disgrace. Eli Broad was educated in the public schools of Michigan, and he has become–along with the rightwing Walton Family Foundation–the major destroyer of public education in the nation. Naturally, the Walton Family Foundation’s education director Marc Sternberg is on the board of Eli Broad’s latest venture, bringing together the two most powerful and union-hating, public school-hating organizations in the US.

Expect a billionaire-funded drive to take control of the Los Angeles school board in the spring of 2017, to pave the way for the end of democratic public education in Los Angeles.

High school students in the West Ada school district made a 3-minute video to respond to the Albertson Foundation’s attack on public education. (Read here about the Albertson Foundation’s attacks and its plan to open enough charter schools to enroll 20,000 students.)

The Albertson Foundation is leading a mean-spirited attack on public education in Idaho. They have underwritten television ads saying that the public schools are no good and 80% of the graduates are not prepared for college or careers. Attacks like this are always the prelude to demands for privatization and for replacing public schools with charter schools, vouchers, and virtual charters.

The students got tired of hearing these stale and erroneous complaints from a handful of billionaires who don’t like public education, so they made their own video. Of course, they can’t afford to put it on television, but they can put it on social media.

Let’s hear it for the kids! They are alright in Idaho!

Harold Meyerson, editor of The American Prospect, writes in the Los Angeles Times that progressives in California should stay involved in state politics and join to defeat the power of big money.

As he shows, the big money interests have combined to elect conservative Democrats and defeat progressive Democrats. Because of the state’s “top-two” primaries, regardless of party, the big-money guys are picking malleable conservative Democrats and pouring millions into their campaigns to pick off progressive campaigns.

Bernie Sanders’ keystone issue was to limit the role of money in politics. In California, the moneyed interests are saturating legislative races with donations that their opponents can’t match.

Over the past two years, oil companies and “education reform” billionaires have been funding campaigns for obliging Democratic candidates running against their more progressive co-partisans under the state’s “top-two” election process. In this week’s primary, independent committees spent at least $24 million, with most of that money flowing to Democrats who opposed Gov. Jerry Brown’s effort to halve motorists’ use of fossil fuels by 2030, and a substantial sum going to Democrats who support expanding charter schools.

Six years ago, according to the Associated Press, just one legislative primary race had more than $1 million in outside spending, and four had more than $500,000. This year, eight races saw more than $1 million in such spending, and 15 more than $500,000.

In a heavily Democratic district outside Sacramento, a November state Senate runoff will pit Democratic Assemblyman Bill Dodd, who opposed Brown’s legislation, against former Democratic Assemblywoman Mariko Yamada. Dodd has already benefited from one independent campaign funded by Chevron and other energy companies to the tune of more than $270,000, and from an education reform campaign funded by charter school proponents such as billionaire Eli Broad in the amount of $1.68 million.

Since progressives can’t match their millions, they should do their best to expose them and their surrogates as the puppets they are.

Public education in California is a plum for the billionaires. They want to privatize it. Who are the biggest spenders in the self-named “education reform movement”? Eli Broad, Michael Bloomberg, Reed Hastings, and Alice Walton. None is a parent in public schools. None has children in public schools. Two do not even live in California.

This is NOT what democracy looks like.