Archives for category: Charter Schools

Forbes reports on the investment strategy of billionaire hedge fund manager William Ackman. He makes money investing in charter schools and thinks he is “doing good” by undermining public education.

“It turns out that Bill Ackman is making good money in the most unexpected of places: financing charter schools for low-income kids.

“Since 2011, the billionaire hedge fund manager has invested $20 million of his own money in the Turner-Agassi Charter School Facilities Fund, which was started by former tennis star Andre Agassi and has built 79 new charter schools in poor neighborhoods around the country. The impact investment, which Ackman made via his charitable foundation, has netted annual returns north of 10%.

“Meanwhile, performance at his hedge fund has been languishing. Ackman has lost money for the past three years running, largely because of disastrous bets on two companies: Valeant and Herbalife. During that time, his net worth has dropped by more than half, to an estimated $1.1 billion. Recently he’s managed to turn things in the right direction, with his Pershing Square Holdings posting gains of 15.8% through September 30, according to the firm.

“Ackman’s foray into impact investing began in 2011 when Agassi, a tennis champ with eight Grand Slams under his belt, pitched him on his new fund, the Turner-Agassi Charter School Facilities Fund. Agassi, who had teamed up with professional impact investor Bobby Turner, promised Ackman that his capital would go toward the construction of 100 new charter schools for low-income children by 2020 in areas like the Bronx and Southwest Detroit—and that he would see double-digit returns, to boot. Ackman put in $10 million and agreed to take calls from other potential investors who were deciding whether to plunk down their own money. (Ackman, who began playing tennis at age 7, says he managed to beat Agassi in a doubles match—sometime after the two first met in 2011).

“With that, Ackman became a vocal and early proponent of impact investments, which are designed to reap a financial return as well as some positive social or environmental impact. His foundation has put a total of $42 million toward these investments in recent years, in areas ranging from affordable housing to financial inclusion to education…

“His largest impact investment to date is in the Turner-Agassi Charter School Facilities Fund, which has financed construction for 79 new charter schools that have served over 41,000 students since 2011. It generates returns for investors by leasing or selling new schools to charter school operators like KIPP at a profit. Ackman has put a combined $20 million into two funds. (Stewart Rahr, another U.S. billionaire and a Forbes 400 member, has put in $10 million.)..

“Ackman, who signed the Giving Pledge in 2012 and promised to donate more than half his wealth, has pledged or donated over $400 million to organizations like Teach for America and Human Rights Watch through his foundation.”

Someone should tell Mr. A koan that his investments and gifts are undermining a basic democratic institution and harming the teaching profession by sending inexperienced amateurs into classrooms to replace professional teachers. At the same time, he is helping to kill unions.

Maybe that, plus return on investment, is exactly what he wants.

I received this letter a few years back, before I started this blog. It has haunted me. I responded offline. I wondered what it feels like to be part of this world. I will never know.


I manage money and I’m black. I am distressed by the barrage of mail I’ve been getting from fellow money managers who somehow think there is a fairly easy solution to educating the “underclass” by using charter schools. I’d like to share with you a few points from my experience which may help you contextualize my concern.

1. Hedge fund managers typically don’t add value to society.

2. Hedge fund managers often have very little practical real world experience. Many have not worked for anyone else. Yet activist managers are very comfortable giving advice to operating managers of companies in which they take a stake.

3. Hedge fund managers virtually never hire minorities outside of Asians

4. Hedge fund managers have attended exclusive private schools and almost always send their kids to the same.

5. Hedge fund managers know virtually nothing of incentive systems and largely supported the Wall Street incentives which nearly created the demise of our society as we know it.

6. Hedge fund managers and private equity managers typically don’t pay their share of Federal taxes. (I personally elect to pay my carried interest as regular income)

With my experiences as a backdrop, I’m somewhat concerned that groups such as DFER (Democrats for education reform) are receiving so much positive press.

As I have begun to research education I wonder if you can point me in the right direction?

1. Has there been a study on the effect of educational lotteries (like the kind that are run to select students for some charter schools) on the students who aren’t picked? It seems a bit demoralizing to me…

2. Has there been a study of teachers who would work for incentives? In other words I’m not sure free market incentives work for professionals like all the teachers I know?.

Politico reports the latest federal handouts for charter schools and charter advocacy organizations, as well as to state agencies.

There is no sector of American education less in need of federal funding than charter schools. They have the support of the nation’s largest philanthropies—think Bill Gates, the Walton family, Eli Broad, Michael Bloomberg, Reed Hastings, etc.—as well as abundant gifts from the financial industry and individual billionaires.

Among the federal grants was $2.4 million to the California Charter Schools Association, the richest lobby in the state, which fights any legislative efforts to establish accountability and prohibit conflicts of interest and self-dealing.

Betsy DeVos has put the Trump administration strongly behind charter schools. The Trump administration puts no money into establishing ethical standards or financial oversight for charters. They pretend to want a “free market,” but free markets are not subsidized by the federal government. In a free market, businesses make it or fail on their own, without public subsidies.

When you see new charters opening, thank DeVos and Trump, as well as the billionaires who have created this new business opportunity.

Politico reports:


EDUCATION DOLES OUT CHARTER SCHOOL GRANTS: DeVos has awarded $399 million in federal grants to expand and support charter schools across the country.

— Eight states received $313.4 million over five years to “support approximately 300 new, replicating, and expanding public charter schools.” The grants were made to state education agencies in Arkansas, Arizona, Colorado, Delaware, Michigan, New York and North Carolina. Bluum, Inc., a nonprofit that provides financial advising to charter schools, received a grant on behalf of Idaho. Charter schools in those areas may apply for a piece of their state’s funding.

— The department also awarded $29.5 million to 32 charter school developers, none high-profile charter operators. Nine recipients plan to use the funding to launch new charter schools in Hawaii, Missouri, Alabama, North Carolina, Michigan and Maine. The rest of the grantees plan to expand existing charter schools.

— Four groups received grants totaling $39.9 million to help charter schools enhance their credit and tap into private-sector capital to pay for the cost of new school buildings or renovations. Charter schools often lack access to public funding for infrastructure projects, which the grant program was created to address. The grants were awarded to the Center for Community Self-Help, the Charter Schools Development Corporation, the Local Initiatives Support Corporation and the Nonprofit Finance Fund.

— The last bucket of funding, totaling $16.2 million, was directed to eight recipients tasked with supporting the charter school sector. The list includes some of the most prominent charter school advocacy groups, like the National Alliance for Public Charter Schools and the National Association of Charter School Authorizers. As we reported earlier this week, the alliance plans to use its funding to create a national center that will help charter schools acquire and renovate their facilities.

— The grants were made through the Charter Schools Program under the department’s Office of Innovation and Improvement. The program has seen a funding boost under the Trump administration, which has made school choice expansion a priority. The fiscal 2019 spending bill H.R. 6157 (115), included a $40 million boost for the program, bringing the overall level to $440 million. The Charter Schools Program has awarded roughly $4 billion since 1995.

After the free-for-all expansion of charter schools in New Jersey during the Chris Christie administration, it is clear there is a new sheriff in town.

The State Commissioner of Education Lamont Repollet has turned down every charter application, saying that time is needed for the state to review the 20-year-old law and figure out how many new charters are needed.

No big surprise, Gov. Phil Murphy’s promise of a “timeout” on new charter schools is coming to fruition, with the Murphy administration rejecting two more charter schools that had been hoping to open next year.

State Education Commissioner Lamont Repollet on Friday informed the last two finalists in the current cycle — which would have opened next year, if successful — that their applications had been denied.

It was the first time in at least a decade that the state has rejected every charter school bid in a cycle, and this time without even interviewing the applicants, according to charter-school advocates.

With five other expansions also rejected last spring, just one new charter is now slated to open next year.

The charter industry, as is now customary, responded with rending of the clothes and wailing about the “35,000” on the waiting list for charters. The waiting list is usually a myth, composed of students who applied to multiple charters, students who applied and were accepted, students who applied and returned to public schools, and non-existent students. These lists are never audited. You just have to take the word of the charter lobbyists.

Governor Phil Murphy is calling for a time-out that is much needed. He wants to review the process for granting charters. He might also have professionals audit that waiting list and decide whether the state needs a dual system of schools, one that accepts everyone, and the other that chooses its students and kicks out those it doesn’t want.

Jan Resseger reviews a major report by the U.S. Department of Education’s Office of the Inspector General, which condemns the Department’s repeated failure to oversee the spending of federal. charter school funding.

The blame here falls not on Betsy DeVos, but on her predecessor, Arne Duncan, who was so eager to stimulate the creation of new charter schools that he failed to monitor those already opened with federal funds.

She writes:

“The report condemns a trend of poor oversight: This is the third major report in which the Department of Education’s OIG has documented poor management of federal dollars flowing to charter schools. Reports from the Department of Education’s OIG in 2012 and 2016 also disparaged Duncan’s charter school oversight. It is not likely, however, that Betsy DeVos, a libertarian, will improve the Department’s regulatory role.

“The new 2018, OIG report examines whether the U.S. Department of Education has a process for adequately monitoring the management of federal dollars and the management of student records and data when charter schools are closed. OIG examined charter school closures in three states between 2011 and 2015. Defining privately operated charter schools as public schools for the purpose of this report, the OIG notes that in the 2015-2016 school year, there were 98,277 public schools across the United States, among which 6,855 were charter schools. Between 2011 and 2015, 977 of the charter schools closed. OIG studied charter school closures in three states: Arizona, which had the highest number of closed charter schools authorized by the same authorizer; California, which had more charter schools than any other state and more students enrolled in charter schools; and Louisiana, which had the highest ratio of charter school closures relative to the number of charter schools in the state. In its 2018 report, OIG examines the procedures used in 89 of the closed charter schools—45 in Arizona, 31 in California, and 13 in Louisiana. OIG explains: “The purpose of the audit (is) to determine whether the U.S. Department of Education has effective oversight of the programs provided to charter schools….”

“The OIG begins its report by reassuring us—in oxymoronic language— that, “Charter schools are nonsectarian, publicly funded schools of choice that are intended to be held accountable for their academic and financial performance in return for reduced governmental regulation.” Maybe the myth that charters can be held accountable without accountability explains why the Department of Education hasn’t done so well with with preventing the kind of problems the report describes.

“The 2018, OIG report charges that the Department of Education has not provided adequate guidance to enable states and local school districts to comply with the federal laws and regulations they must follow to protect Title I, IDEA and Charter Schools Program dollars when charter schools are shut down. Neither Arizona, California, nor Louisiana had developed required procedures for tracking how the assets of charter schools were disposed after the schools were closed. The report notes that in September of 2015, the Department of Education sent a letter to state departments of education to remind them “of their role in helping to ensure that Federal funds received by charter schools are used for intended and appropriate purposes.” OIG explains, however, that, “The Dear Colleague Letter did not specifically discuss charter school closures.” Neither has the Department adequately monitored states’ charter school closure processes. “The Title I, IDEA, and CSP program offices did not incorporate a review of charter school closure procedures into their State Education Agency monitoring tools.”

“The 2018, OIG report continues: “During our audit period, the Department did not consider charter school closures to be a risk to Federal funds; therefore, the Title I, IDEA, and CSP program offices did not prioritize providing guidance to State Education Agencies on how to manage the charter school closure process….” “Without adequate Department guidance provided to the State Education Agencies and sufficient State Education Agency and authorizer oversight and monitoring of charter school closure processes, the risk of significant fraud, waste, and abuse of Federal programs’ funds is high. The growing number of charter schools, from 1,993 in School Year 2000-2001 to 6,855 in School Year 2015-2016, and the number of charter schools that closed, ranging from 72 in School Year 2000-2001 to 308 in School Year 2014-2015, require the Department’s program offices to develop and implement a modified approach to overseeing the State Education Agencies.””

Finally: “We found there was no assurance that for the sampled closed charter schools (1) Federal funds were properly closed within the required period, (2) assets aquired with Federal funds were properly disposed of, and (3) the students’ personally identifiable information was properly protected and maintained.”

Unfortunately, Kathleen S. Tighe, the Inspector General of the Department of Education, is retiring next month, and her replacement will be named by the president, subject to Senate confirmation. The current deputy IG Sandra Bruce will take over until a permanent IG is nominated and confirmed.

Given the track record of the Trump administration in politicizing every facet of the federal government, this change may be the end of honest inquiry about charter school oversight.

Bill Phillis, retired deputy superintendent of the state department of education, is a zealous advocate for accountability and transparency. He has made a public records request about the Gulen charter schools in Ohio. He has written a multi-part series based on what he learned. This is Part 4.


Public Records and Charter Schools – Part Four: Buckeye Community Hope Foundation (BCHF)

According to its website, the Buckeye Community Hope Foundation “was founded in 1991 as a non-profit corporation with the mission of developing affordable housing for low-income families and individuals.” In 2005, the organization decided to expand its core purpose by becoming a charter school sponsor. According to an analysis completed by the Education Commission of the States, 44 states provide for charters by statute. However, only Minnesota and Ohio clearly allow non-profit organizations without a singular, core educational purpose like BCHF to serve as sponsors legally responsible for the oversight of these publicly-funded but privately-operated schools.

Since entering the charter school business, BCHF has become the sponsor for 47 schools, nearly as many as the ESC of Lake Erie West (ESCLEW), one of the original charter school sponsors in Ohio. Nine of these are Concept Schools operating under the Horizon Science Academy and Noble Academy brands. These schools are located in Cleveland, Columbus, Dayton, Lorain, and Youngstown.

Consistent with the public records requests sent to the Ohio Department of Education (ODE) and the ESC of Lake Erie West, the Ohio Coalition for Equity & Adequacy of School Funding (Ohio E & A) sent a letter on May 2 to the Buckeye Community Hope Foundation requesting comparable records for the schools it sponsors. But the reply on June 4 from the BCHF attorney was not unexpected:

“… The Buckeye Community Hope Foundation is not a public entity subject to public records requests. Other places you may get the records you desire are the Ohio Department of Education and the public schools themselves.”

In trying to inform the public about state policy and practices, along with reporting on the condition and needs of schools, it was regrettable, but also predictable, to receive this reply from counsel. Instead of dealing with one agency (ODE and ESCLEW), it was suggested that Ohio E & A deal with nine, along with the state agency, to get the information desired. Irrespective of the statute which allows BCHF to collect significant public revenue but use its non-profit status to be immune from responding to public records requests, legislators need to reexamine the statute and require more transparency and accountability from private organizations that benefit from public funds. We will examine this more in Part Five, the final segment in this series.

A final observation on BCHF and its stance on public records reveal that in fact, the public has to rely on ODE to provide the information about the Concept Schools that are sponsored by the non-profit. For example, we had to find out through records sent by ODE, not BCHF that the non-profit had to deal with the same type of issues in its Concept Schools as the public agency sponsor ESCLEW. When you have to find out information from another source when the first party says no, we are not required to do so, that is not reassuring.

The records available to us from ODE, and not BCHF, clearly demonstrate that it is up to the state education agency and, again, not BCHF, to inform the public regarding the operational condition of nine schools. The ODE records revealed a string of parent concerns regarding student expulsion, Individualized Education Program (IEP) issues, and a teacher complaining about one of the schools cherry-picking students in violation of standard public school admission practices. Again, it is not reassuring to find out about such issues through a third party – ODE.

In our final look in Part Five at the topic of public records requests and charter schools, we will make some recommendations about what we learned and what needs to be done regarding the charter school industry that will better serve the public.

William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540 | ohioeanda@sbcglobal.net| http://www.ohiocoalition.org

Thanks to G.F. Brandenburg for alerting me to this important post by Valerie Jablow, public school advocate in D.C.

D.C. Mayor Muriel Bowser picked a bona fide corporate reformer as her deputy mayor for education. Even the pro-charter Washington Post Thought the choice was “odd.” Jablow thinks the correct word was not odd but conflicted.

The new deputy mayor Paul Kihn is a private school parent. He has close ties to the power structure. He previously worked in Philadelphia where Jablow notes some of his less than admirable feats, which make his appointment to oversee the D.C. public schools very odd:

Also odd is how the Post article did not mention a few things about Kihn that are, well, downright strange–if you believe in public schools BY, FOR, and OF the public:

–Kihn apparently made changes in a teacher contract in Philadelphia to eliminate guarantees about water fountains–because teachers wanted to ensure every school would have functional water fountains. (Not to mention what we know this means for kids’ developing brains.)

–Kihn also was apparently behind an idea to increase public engagement in Philadelphia’s public schools by allowing parents at a few underfunded district schools to vote to turn their schools into charters–or accept no additional funding. Now that’s school choice–with teeth!

[Confidential to Paul Kihn: As a DCPS parent, I really don’t wake up at night thinking about how I need to have even less engagement in my kids’ schools by turning them into charter schools that are not subject to FOIA; that can use annual facilities allocations for anything without any public accountability; and whose plans are not a matter of public knowledge until after the fact. But I do think about stranded costs and empty seats and civil rights violations created by the uncontrolled growth of charter schools in our city. Do you?]

–The wife of Scott Pearson (head of the charter board) is the boss of Kihn’s wife–at a think tank started by Pearson’s wife, called JPMorgan Chase Institute (associated with the financial institution of the same name).

Even more odd is that Paul Kihn, his wife, and Scott Pearson are all former employees of McKinsey, which applies business thinking to every activity.

If all of this sounds incestuous, well, it is.

The mayor has controlled D.C public schools since 2007. We are still “waiting for Superman” to land in D.C. So far, the biggest change has been to hand over half the kids to charter schools, most funded by the rightwing Walton Family Foundation and to introduce a failing voucher program. This looks more like floundering than strategy. Abandoning public responsibility for public schools is retreat, not success. Soon, Betsy DeVos is likely to name D.C. as one of her demonstration districts.

Rick Hess and Michael McShane of the AMERICAN Enterprise Institute bring a fresh perspective from their perch on the right. Writing in the conservative journal Education Next, they speculate on the reasons for the disappointing results of No Child Left Behind and Race to the Top, the twin policies of Bush and Obama.

Policy makers in Washington loved the ideas of testing, accountability, choice, and national standards. Yet, we now know that these policies were controversial and ultimately ineffective. NAEP scores flatlined, and there is little or no evidence that these policies succeeded.

They write:

“Within a few years, though, those Obama administration efforts—especially its support for teacher evaluation and the Common Core state standards—would themselves turn controversial, breeding backlash that rivaled the dissatisfaction with NCLB. Obama’s reforms would get mired in bitter debates about their emphasis on test scores and whether they constituted federal overreach.

“The results of all this activity were decidedly mixed. There’s some evidence that NCLB’s accountability push led to modest test score gains, at least early on (though one can reasonably ask how much of those gains was evidence of schools “getting better” and how much might have been due to teachers shifting time and energy from other subjects to reading and math instruction). Over the past decade, however, the National Assessment of Educational Progress has shown an unprecedented flat-lining of achievement growth. Research suggests that ambitious efforts to remake teacher evaluation did not lead to meaningful changes in how candidly teachers are actually evaluated, and that the $7 billion in the federal School Improvement Grant program did not, on average, improve achievement in participating schools. The Common Core and many of these other efforts may yield benefits down the road, but the results have certainly not been revolutionary and are widely perceived to be disappointing.

“This brief recap prompts a simple query: What happened? Why did each of these initially promising, seemingly popular efforts at federal leadership ultimately lose its luster? Were the high-profile initiatives of the Bush-Obama years a much-needed kick-start that forced America to get serious about school improvement, or a recipe for slipshod policymaking and rushed implementation that ultimately undermined reform? Did these reforms reflect a gutsy commitment to putting students first or political gamesmanship that yielded a counterproductive series of distracting mandates?”

There is no reason to believe that the latest version of these policies—the Every Students Succeeds Act—Will fare any differently.

Hedge fund manager Austin Beutner, superintendent of schools for the Los Angeles Unified School District, has lots of time to meet with Eli Broad, Peter Cunningham, the head of the California Charter Schools Association, and a long list of charter leaders and privatization advocates.

The teachers’ union, which has already authorized a strike, fought to get Beutner to release his calendar. He resisted, and now we know why.

Here is the story.

Of course, he has also met with union leaders, which is inevitable. But he has an unusual availability to charter school leaders and their lobbyists.

Perhaps Beutner could arrange a visit by Betsy DeVos. He could show her the progress he has made in undermining the public schools that he is supposed to lead.

This was LAUSD’s comment on Beutner’s calendar.

The Network for Public Education Action Fund endorses Tony Thurmond for Superintendent of Public Institution in California!

California is a mess because of the intrusion of billionaires into education, billionaires who do not send their own children to public schools but want to control and privatize them. They pour millions into school board races, and they are now pouring millions into the state superintendent race, in hopes of capturing that important position.

Tony Thurmond’s opponent, Marshall Tuck, has a long history in the charter industry. Although he claims to be a Democrat (as in DFER), Tuck was endorsed by the California Republican party. Thurmond won the support of 95% of the delegates to the California Democratic party convention. Tuck was also endorsed by Arne Duncan, and Duncan’s endorsement means support of charter schools, high-stakes testing, and misuse of test scores to evaluate teachers.

California desperately needs accountability and transparency for its unregulated charter sector, not a fox in charge of the henhouse.

Please help Tony Thurmond. He is wildly outspent by the candidate of the billionaires, including Eli Broad, Reed Hastings, Arthur Rock, and the Walton family.

This is the NPE Action statement:

The Network for Public Education Action proudly endorsed East Bay Assemblyman, Tony Thurmond, for California State Superintendent of Public Instruction.

We are writing today to remind you just how important your support for Tony Thurmond is.

Marshall Tuck, a corporate reformer, is gaining ground thanks to millions supplied to his campaign by the California Charter School Association and its allies.

Here is what one of the state’s leading public school advocates Professor Julian Vasquez Heilig had to say about this race:

“Marshall Tuck would clearly be an important ally for the Donald Trump and Betsy DeVos education agenda in California. In contrast, Tony Thurmond has vowed to lead the resistance against their education agenda. Marshall Tuck has millions of campaign dollars given to him by his billionaire allies and others lobbying to privately control and privatize public education in California. While Tuck has millions, Thurmond has people power. As Superintendent of Public Instruction he would be our champion for community-based solutions and better funding for education across our state.”

It is no wonder that Tuck is the darling of the charter-school backing billionaires.

Tuck is a former charter school executive and CEO. In 2014, Tuck ran an unsuccessful campaign for State Superintendent, losing to incumbent Tom Torlakson. Tuck was heavily funded by outside money from national charter advocates, including Michael Bloomberg, Eli Broad, the Waltons, Laurene Powell Jobs, Arthur Rock and John Arnold. Thurmond stated that, “California’s voters don’t want this election to be bought by the Walton family, Eli Broad, and other billionaires who want to privatize public education.”

Thurmond is passionate about improving public schools. His public school education prepared him for a 20-year career in social work, where he ran after-school programs and taught life skills and career training. Those years of experience provided him with a unique perspective into the lives of California’s youth.

Thurmond has vowed to “lead the resistance against Donald Trump and Betsy DeVos and their agenda to undermine and defund our public education system,” promising that he will not support policies that seek to divert taxpayer dollars from public education to private schools.

Thurmond has already received numerous endorsements, including the endorsement of Superintendent of Public Instruction, Tom Torlakson. Thurmond will be on the general election ballot on November 6th. NPE Action urges our over 21,000 supporters in California to educate and inform your friends, family, neighbors and colleagues about Thurmond’s campaign and the importance of this election for the future of public education in California.