Archives for category: Billionaires

Yesterday we learned that billionaires have assembled a fund of $725,000 (so far) to defeat Washington state Supreme Court justice Barbara Madsen. The money is being funneled mostly through a group called “Stand for Children.”

Why are the billionaires eager to oust Judge Madsen? She wrote the 6-3 decision in 2015 that declared that charter schools are not public schools under the Washington state constitution and are not eligible to receive public funding devoted solely to democratically governed public schools. For daring to thwart their insistence on charter schools, the billionaires decided that Judge Madsen had to go.

But what is this group “Stand for Children” that is a willing handmaiden to the whims of billionaires who hate public schools?

Peter Greene explains its origins as a social justice organization some 20 years ago, founded by Jonah Edelman, the son of civil rights icon Marian Wright Edelman and equity advocate Peter Edelman. Josh’s pedigree was impeccable, and Stand for Children started as a new and promising civil rights organization.

But somewhere along the way, SFC took a radical change of course. It began receiving buckets of money from the Gates Foundation and the Walton Foundation. By 2010, Oregon SFC was advocating charters, cybercharters, and a reduction in the capital gains tax. Flush with reformer cash, it became active in many states, opposing unions, supporting charters, removing teacher job security.

Strange.

The apple has fallen very far from the tree.

SFC endorsed the anti-public school, anti-union propaganda film “Waiting for Superman.”

SFC crowed about pushing legislation in Illinois that would cripple the Chicago Teachers Union. It opened a campaign in Massachusetts to reduce teacher tenure and seniority rules, threatening a referendum unless the unions gave concessions. Jonah Edelman boasted at the Aspen Ideas Festival in 2011 about his role in spending millions, hiring the best lobbyists, and defeating the unions.

Be sure to read the 2011 article by Ken Libby and Adam Sanchez called “For or Against Children? The Problematic History of Stand for Children.” They captured the beginning of the transition of the organization to a full-fledged partner of the billionaire reformers.

Old friends, now disillusioned, call Stand for Children “Stand ON Children.”

Greene lists the members of the current board. All corporate reformers and corporatists, not a single educator.

Greed is the root of a lot of evil. It turns good people bad if they can’t resist its lure.

Voters of Washington State, wake up!

The billionaires who have been trying to privatize your public schools are up to their old tricks.

Bill Gates and his pals have been pushing charters schools since the late 1990s. There have been four referenda on charter schools in Washington State. The privatizers lost the first three, but swamped the race with millions in their 2012 campaign and won by a razor-thin margin, defeating the NAACP, teachers, parents, the League of Women Voters, and school board members.

Defenders of public schools sued to stop public money from going to privately managed charter schools. In 2015, Washington’s highest court agreed with them that charters are not common schools, as required by the state constitution, because their boards are not elected. Funding charter schools with public money, the high court ruled, was unconstitutional.

Now the billionaires are running a candidate against state Supreme Court Justice Barbara Madsen, who wrote the 6-3 decision against funding charter schools with public money dedicated to public schools.

Some of the biggest proponents of charter schools in Washington state are pouring money into the race to defeat state Supreme Court Justice Barbara Madsen, who authored last year’s decision declaring the privately run, publicly funded schools unconstitutional.

The political arm of Stand for Children spent $116,000 this month on independent expenditures supporting Greg Zempel, Madsen’s chief opponent, in what constitutes the biggest infusion of outside cash in a Washington judicial race since 2010. According to Mercedes Schneider, Stand for Children (aka, “Stand ON Children”) has collected $725,000 to knock out Justice Madsen. Justice Madsen has raised $30,000 for her re-election.

The group is funded by some of the same wealthy donors who supported the 2012 initiative to allow charter schools in Washington, which the court’s decision overturned.

Zempel, the elected Kittitas County prosecutor, has been critical of the high court’s 6-3 decision in the charter-schools case, as well as what he has described as the court’s tendency to be unpredictable in its rulings.

Madsen, the court’s chief justice, wrote the opinion in September that ruled charter schools cannot be funded the same way as traditional public schools, primarily because they are run by boards that are appointed rather than elected by voters.

State lawmakers passed a bill this year that aims to keep charter schools open, but the statewide teachers union has promised to challenge the new law in court as well.

Most of the Stand for Children PAC’s funding this year has come from a single source: Connie Ballmer, a wealthy philanthropist and wife of former Microsoft CEO Steve Ballmer, who donated $500,000.

The PAC’s other two main donors are Reed Hastings, the founder and CEO of Netflix; and Vulcan Inc., which is owned by Microsoft co-founder Paul Allen.

The billionaires can’t buy the state Supreme Court, but they are trying their best to oust the judge who dared to stand in their way. Billionaires don’t send their own children to public schools, but think they have the right to kill them because they prefer privately run schools.

Hastings advocates for killing elected school boards and replacing teachers with technology.

There is only one thing that can defeat billionaires who want to buy our democracy: Voters.

Tell your neighbors. Tell your friends. Tell your colleagues. Save your public schools. Vote!

Show the billionaires that they can’t punish judges, they can’t privatize public schools, and they can’t subvert democracy!

To learn more about Bill Gates and his efforts to undermine public schools in Washington State, read parent activist Dora Taylor’s reports:

Emails reveal OSPI in contempt of Supreme Court ruling on charter schools in Washington State, https://seattleducation2010.wordpress.com/2016/02/14/emails-reveal-ospi-in-contempt-of-supreme-court-ruling-on-charter-schools-in-washington-state/

Emails reveal the “Gates Machine” in action after the Washington State Supreme Court’s decision that charter schools are unconstitutional, https://seattleducation2010.wordpress.com/2016/02/07/emails-reveal-the-gates-machine-in-action-after-the-washington-state-supreme-courts-decision-that-charter-schools-are-unconstitutional/

The Mary Walker School District rescinds their request for charter schools in the Seattle Public School District, https://seattleducation2010.wordpress.com/2016/01/08/the-mary-walker-school-district-rescinds-their-request-for-charter-schools-in-the-seattle-public-school-district/

Jonathan Pelto wrote an illuminating and informative post about the members of the “Billionaire Boys Club,” or should I say the “Billionaire Boys and Girls Club,” since Alice Walton, Laurene Powell Jobs, Penny Pritzker, and several other women belong.

Pelto writes:

The colossal and disastrous effort to privatize public education in the United States is alive and well thanks to a plethora of billionaires who, although they’d never send their own children to a public school, have decided that individually and collectively, they know what is best for the nation’s students, parents, teachers and public schools.

From New York City to Los Angeles and Washington State to Florida, the “billionaire boys club,” as Diane Ravitch, the country’s leading public education advocate, has dubbed them, are spending hundreds of millions of dollars via campaign contributions, Dark Money expenditures and their personal foundations to “fix” what they claim are the problems plaguing the country’s public schools.

These neo-gilded age philanthropists claim that the solution is for parents, teachers and education advocates to step aside so that the billionaires and their groupies can transform public education by creating privately owned and operated – but taxpayer funded – charter schools.

In addition, they pontificate that students learn best when schools are mandated to use the ill-conceived Common Core standards so classrooms become little more than Common Core testing factories and the teaching profession is opened up to those who haven’t been burdened by lengthy college based education programs designed to provide educators with the comprehensive skill sets necessary to work with and teach the broad range of children who attend the country’s public schools.

The billionaire’s proclaim that the solution to creating successful schools is really rather simple.

They say that public schools run best when they are run like a business…

Cut through their rhetoric and the billionaires want us to believe that by introducing competition and the concept of “profit” they can turnaround any school, no matter the challenges it or its students may face….

Privatization, they argue, will lead to greater efficiencies while opening up the public purse to those who have products that they seek to sell to our children and our public schools.

John Dewey famously wrote that what the best parent wants for his child is what we should want for all children, but the billionaires have flipped that sage advice on its head. They say, “My kids need small classes, experienced teachers, and beautiful schools, but your children don’t.”

Jon Pelto has an exhaustive list of the billionaires who are out to undermine public education.

He identifies them by name, by their net worth, and by their pet causes.

Edushyster interviewed Joanne Barkan, one of our most perceptive writers about the farce/hoax called “education reform.”

Barkan has written a series of important articles about the reformers, they of high stature, who want to run the nation’s public schools that they do not patronize. “Got Dough?” is a classic. She quickly understood that the billionaires don’t trust democracy. And that is a theme of her work on education.

In response to one of EduShyster’s questions, Barkan replies:

Some of the wealthiest people in the United States have had an easy go of it. They started with wealth, likely went to private schools, and have no sense of what public education is and why it’s necessary. And, of course, there are also those who started with nothing and made their own fortunes. It seems that by the time they’ve made a lot of money, they’ve lost touch with the role of public education. The vast majority of the super wealthy send their own kids to private schools, which they do for a variety of reasons, including prestige. What’s interesting to me is that there are some states that have written into their constitutions that the primary obligation of state government is public education. When those constitutions were being written in the late nineteenth and early twentieth centuries, government was much more limited. We have a situation today where so many states are under tremendous financial pressure, and the first place they go when they have to cut is public education, as if public education were somehow an extra, as opposed to being a fundamental responsibility.

EduShyster: I was smitten by the subtitle of your article: *Bill Gates, Washington State and the Nuisance of Democracy.* What is it about democracy that plutocrats find so irksome?

Barkan: The plutocrats—people like Bill and Melinda Gates, Michael Bloomberg, John Arnold, or Eli Broad—have very set ideas about what they want to do. It doesn’t matter to them, or perhaps they just don’t understand, that their ideas may not be based on sound research or principles. They know what they want, and they come out of professional experiences where they’ve had complete authority. When they get to public education, they expect to be in control and to make things happen as quickly as if they were still running their companies. But as everyone should know, democracy is slow, and it’s messy, and that turns out to be a great nuisance for plutocrats.

The rest of the interview is fascinating and enlightening.

In 2012, Californians voted on Proposition 30, which raised taxes on the richest citizens in order to raise funding for public schools and charter schools. The measure passed, despite a well-funded effort to defeat it.

A group of unions and progressive activists released a list of nearly 80 wealthy Californians who secretly funded the campaign to defeat Proposition 30. One of them was billionaire Eli Broad, who publicly supported Prop 30 but donated either $500,000 or $1 million to the effort to defeat it.

The progressive activists–called California Hedge Clippers–dug into records to show where the money came from to fight the temporary tax to aid schools.

Individuals named in the group’s report include Silicon Valley tech and investment executive John H. Scully ($500,000), investor and Hyatt Hotel heir Anthony Pritzker ($100,000), developer Geoff Palmer ($100,000) and private equity investor Gerald Parsky ($50,000).

Donors, regulators concluded, contributed money to an out-of-state organization, which circulated funds through a series of other groups and eventually back to California. By then, the identity of the donors was beyond the reach of disclosure laws.

As the money was channeled to California, some transfers were not properly disclosed and therefore violated the law, officials said. Well after the election, a California investigation resulted in $16 million in fines to some of the groups as well as the disclosure of some donors, including Broad, who either gave $500,000 or $1 million, depending on how the source documents are interpreted. The donors were not fined….

Among the names to emerge in the California research is Nils Colin Lind ($50,000), who was at the time an executive at Blum Capital, the firm he co-founded with Richard Blum, California Sen. Dianne Feinstein’s husband. The larger contributions include $800,000 from machine-tool manufacturer Gene Haas. The researchers also uncovered additional money from the Fisher family, heirs to the Gap fortune and among the most generous supporters of charter schools; their revised total is $10 million.

The list also includes leaders of the charter school movement, such as Scully and Tony Ressler ($25,000), a former longtime board member of the charter group Alliance College-Ready Public Schools.

Like other public schools, charters reaped huge financial benefits from Proposition 30 after it passed in 2012. School officials across the state hope voters in the November election will extend the tax on the wealthiest 2% of earners….

The donors’ money traveled a circuitous path. They contributed to Americans for Job Security, a Virginia trade association. This outfit then passed the money to the Center to Protect Patient Rights in Arizona. The center next sent $11 million to a Phoenix group, Americans for Responsible Leadership, which provided it to the Small Business Action Committee. That committee spent the money on the California campaigns.

In another relay, the Center to Protect Patient Rights provided more than $4 million to the America Future Fund in Iowa, which passed the money to the California Future Fund for Free Markets, a campaign committee supporting Proposition 32.

Not all of the donated money made it back to California. About $10 million was captured by groups in other parts of the country, the researchers said.

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.