Archives for category: Corporate Reformers

I originally posted this story in October 2016. In light of the Trump-Pence privatization agenda, it is worth reading again.

Pat Hall and Sue Legg of the Florida League of Women Voters have performed a public service by detailing how for-profit charter companies rip off taxpayers and cheat children.

You can be sure Jeb Bush will not assign this report when he lectures at Harvard this fall about the Florida “miracle” that no one can see other than himself and his hirelings.

Here is the beginning. Please note that 40% of taxpayer funds goes to the management company, not to educating students. What a racket!

Hall and Legg write:

“ANALYSIS OF CHARTER SCHOOL USA REAL ESTATE BUSINESS PRACTICES

“Florida now educates more than 230,000 students at more than 650 publicly funded charter schools. While many of these schools are providing good educational opportunities, we have found that the fundamental structure of the for-profit management companies, specifically Charter Schools USA, must be questioned. The following outline summarizes a very detailed report given the LWVF Board this past summer.

“1. CSUSA has six non-profit school boards that operate 49 schools in 12 urban counties in Florida. Additionally, CSUSA operates 17 schools in 6 other states.

“2. The six governing school boards cover the 49 charters and are run by CSUSA; they are not independent of the management companies.

“3. Inter related affiliated businesses include Red Apple Development, Ryan Construction Company, the Florida Charter Education Foundation and Connex (curriculum software). Furthermore, we found over 300 limited liability companies (LLCs) initiated by CSUSA.

“4. Facilities financing incorporates all aspects of land acquisition, site clearing, construction, bond financing and multimillion dollar lease fees. CSUSA charges the Hillsborough County School district at one of their four schools more than $30/square foot, significantly higher than downtown Tampa skyscrapers!

“5. Tracking expenditures of taxpayer monies is impossible due to for-profit business practices which are not transparent.

“6. Long term lease agreements, after flipping (changing deeds from one related company to the next) from Ryan Construction to Red Apple Development, are charged out 40 years, and charge rent and interest amounts on top of the lease payments. Most CSUSA lease fees in Hillsborough County take 25% of all taxpayer dollars designated for educating children. Some are even higher.

“7. Another 13% to 15% is charged by CSUSA for management fees, hence 40% of public money is not spent instructing children. State auditors have questioned how these costs are reported.

“8. Evidence exists of real estate “flipping” by CSUSA in Hillsborough County. This results in new real estate appraisals to increase value. Lease and rent costs use these values to justify cost charged to charter budgets.

“INTERIM REPORT: ANALYSIS OF CSUSA REAL ESTATE BUSINESS PRACTICES

“By Pat Hall and Sue Legg, LWVF Education Team, June 2016

“Introduction. District school boards grant charter school contracts to private entities and monitor their financial balance sheets, but by legislative intent, they do not have responsibility for their management and operation. Charters have little regulation, and the result has been a continuing saga of scandals. This report goes beyond the mismanagement and corruption issues to the fundamental structure of for-profit management companies, and it questions the accountability of these companies for their use of public funds. Charters may be self-managed or operated by non-profit or for-profit companies. We focus on one for-profit charter management company, Charter Schools, USA (CSUSA). Florida has several others including, Academica which was the focus of a federal investigation, and Newpoint charters which face indictments. A detailed example of the complex facility transactions for CSUSA’s Woodmont K-8 school raises the issue of excessive profiteering. We have data that indicate these business practices are not specific to one school or one company. CSUSA organizational structure: CSUSA is owned and operated by the CEO, Jonathan Hage. It has multiple interrelated entities whose operations are difficult to track. CSUSA has created six non-profit charter school boards to operate 49 publically funded, privately managed charter schools in 12 Florida counties. Additionally CSUSA operates 17 schools in 6 other states. These non-profit boards subcontract to the CSUSA for profit educational management firm which founded them.”

 

 

Mercedes Schneider here does a close reading of one of Betsy DeVos’ greatest hits, the speech where she says that government sucks and the way to improve education is to let everyone get public money to go to school wherever they want without any oversight. Also, fire more teachers.

 

Betsy DeVos: “Government Sucks” and “We Don’t Fire Teachers Enough”

 

That pretty much sums up her deep philosophy.

 

 

Nina Rees thinks Betsy DeVos is a great choice for US Secretary of Education. She would. She is the president and CEO of the National Alliance for “Public” Charter Schools and like DeVos, is devoted to privatization of community public schools.

 

I first met Nina when she worked for Vice President Dick Cheney as his education advisor. Before that, she worked for the extremely conservative Heritage Foundation. She subsequently worked for ex-felon Michael Milken, when he was entering the education industry.

 

What you will learn from her article:

 

The U.S. Department of Education has spent $3 billion on privately managed charter schools, through the administrations of Bill Clinton, George W. Bush and Barack Obama.

 

What you will will NOT learn from this article:

 

That charter schools and vouchers have NOT improved education.

 

That education in Michigan has suffered because of DeVos’ zeal for the unregulated free market.

 

That the destruction of democratic public education is a crime against children, families, and our society.

 

That NO high-performing nation in the world has turned public funding for schools over to the free market.

 

 

 

 

 

 

Just when I thought I had read everything I needed to know about the DeVos family, along comes this brilliant investigative article by Zack Stanton of Politico. Stanton shows how powerful the DeVos family is, how it works as a tightly coordinated unit, and how it uses its vast wealth to smash the union movement, force school privatization, control the Republican Party in Michigan, and extend its reach to Louisiana, Indiana, Wisconsin, New Jersey, and other states.

 

The DeVos family, along with the Koch brothers, are the epitome of dark money, the spawn of Citizens United, which removed limits on political spending, enabling billionaires to buy state legislatures.

 

Dick DeVos ran for the governorship and lost in 2006. The family learned that it was better to work behind the scenes.

 

“Thanks to the DeVoses, Michigan’s charter schools enjoy a virtually unregulated existence. Thanks to them, too, the center of the American automotive industry and birthplace of the modern labor movement is now a right-to-work state. They’ve funded campaigns to elect state legislators, established advocacy organizations to lobby them, buttressed their allies and primaried those they disagree with, spending at least $100 million on political campaigns and causes over the past 20 years. “The DeVos family has been far more successful not having the governor’s seat than if they had won it,” says Richard Czuba, the owner of the Glengariff Group, a bipartisan polling firm in Michigan. “They have, to some degree, created a shadow state party. And it’s been pretty darn effective.”

 

“Buoyed by the success in Michigan, the DeVoses have exported a scaled-down version of that template into other states, funding an archipelago of local political action committees and advocacy organizations to ease the proliferation of charter schools in Indiana, New Jersey, Ohio, Iowa, Virginia and Louisiana, among others. At the same time, DeVos-backed PACs have transformed the nature of American political campaigns. By showing the success of independent PACs that answered to a few deep-pocketed donors rather than a broad number of stakeholders associated with a union or chamber of commerce, for instance, the DeVoses precipitated the monsoon of independent expenditures that has rained down upon politicians for the past decade. In the process, they’ve reshaped political campaigns as well as the policies that result from them.

 

“Ten years after she watched her husband give a concession speech, Betsy DeVos was unveiled as President-elect Donald Trump’s pick for secretary of education. Across the country, public-school advocates and teachers’ unions expressed almost unanimous horror: One of the most effective advocates for breaking down the rules and protections for public schools and teachers would soon be the nation’s most powerful education policymaker.

 

“But people who’ve been watching the DeVoses closely knew they were seeing something else as well: One of the nation’s most ambitious, disruptive and downright unusual political families finally had a seat in Washington….

 

“The DeVos family is Dutch, thoroughly so. All four of Richard DeVos’ grandparents emigrated from the Netherlands, and today, the family continues to observe the tenets of the Christian Reformed Church, a Calvinist denomination. Calvinism believes that God has decided our souls’ fates before we are born, assigning them to heaven or hell. It is a duty of practitioners to show their faith in God’s plan by displaying self-confidence, as though they know they have been chosen for blessings in the afterlife. One way to display this confidence is through entrepreneurship (one of the bedrock texts of sociology, Max Weber’s 1905 Protestant Work Ethic and the Spirit of Capitalism, is expressly about the link between Calvinism and economic success)….

 

“Across those efforts, one constant is the DeVos family’s devout Christian beliefs, and the indivisibility they see between Christian and Calvinistic notions and their conservative politics. “The real strength of America is its religious tradition,” Richard DeVos wrote in Believe!. “Too many people today are willing to act as if God had nothing whatsoever to do with it. … This country was built on a religious heritage, and we’d better get back to it. We had better start telling people that faith in God is the real strength of America!” In the mid-1970s, DeVos made major donations to the Christian Freedom Foundation and Third Century Publishers, an outlet that printed books and pamphlets designed to strengthen the ties between Christianity and free-market conservatism; among those products was a guidebook instructing conservative Christians how to win elections and help America become “as it was when first founded—a ‘Christian Republic.

 

“Though they aren’t quite as large or wealthy as the DeVoses, the Prince family—even further west, in Holland, Michigan—shares one big trait in common with their in-laws: the idea that patriotism and politics are inseparable from Christianity. Elsa Prince Broekhuizen, Betsy’s mother, donated $75,000 to the successful 2004 ballot measure to ban same-sex marriage in Michigan; four years later, she gave $450,000 to an identical initiative in California. Betsy’s brother, Erik Prince, founded Blackwater, the military contractor that gained notoriety in 2007, when its employees fired into a crowd of Iraqi civilians, killing 17. (In 2009, two former Blackwater employees alleged in federal court that Prince “views himself as a Christian crusader.”)

 

“Throughout his adult life, Betsy’s father, Ed, donated handsomely to two religious colleges in Michigan, Hope and Calvin, the latter being his wife’s beloved alma mater in Grand Rapids. But his most important contribution—one that has shaped much of the past three decades of conservative politics—came in 1988, when Prince donated millions in seed funding to launch the Family Research Council, the conservative Christian group that became one of the most potent political forces on the religious right. “Ed Prince was not an empire builder,” Family Research Council President Gary Bauer wrote to supporters after Prince’s sudden death in 1995. “He was a Kingdom builder.”

 

“In the 1960s and ’70s, Ed and Elsa Prince advanced God’s Kingdom from the end of a cul-de-sac just a few miles from Lake Michigan. There, they taught their four children—Elisabeth (Betsy), Eileen, Emilie and Erik—a deeply religious, conservative, free-market view of the world, emphasizing the importance of self-reliance and sending them to private schools that would reinforce the values they celebrated at home, small-government conservatism chief among them….

 

“When Dick and Betsy DeVos are asked why they’ve chosen to mount a personal crusade for education reform, they often cite their family’s charitable giving, which puts them into contact with scholarship applicants. For years, the DeVoses read reams of personal essays filled with wrenching stories of dire finances and an abiding hope in the transformative impact of education. Those stories, the DeVoses have said, made it clear that something had to change.

 

“But there’s another reason why Dick and Betsy DeVos want to change America’s schools. They see it as the literal battleground for making a more Christian, God-centered society.

 

“In 2001, Betsy DeVos spoke at “The Gathering,” an annual meeting of some of America’s wealthiest Christians. There, she told her fellow believers about the animating force behind her education-reform campaigning, referencing the biblical battlefield where the Israelites fought the Philistines: “It goes back to what I mentioned, the concept of really being active in the Shephelah of our culture—to impact our culture in ways that are not the traditional funding-the-Christian-organization route, but that really may have greater Kingdom gain in the long run by changing the way we approach things—in this case, the system of education in the country.”

 

“Dick DeVos, on stage with his wife, echoed her sentiments with a lament of his own. “The church—which ought to be, in our view, far more central to the life of the community—has been displaced by the public school,” Dick DeVos said. “We just can think of no better way to rebuild our families and our communities than to have that circle of church and school and family much more tightly focused and built on a consistent worldview.”

 

Folks, if Betsy DeVos is confirmed, which is likely, we will have a major battle on our hands to protect public education and to maintain a separation of church and state. She is not a normal candidate for Secretary of Education. She is a religious zealot and a radical extremist. She will speak of her admiration for all successful schools, including public schools, but don’t believe it. She is a determined foe of public education.

 

 

 

 

 

Excellent video on DeVos focusing on failure of charter schools in Detroit/Michigan, her support of for-profit charters; privatization agenda. Less than 10 minutes long; well produced; interviews with parents, film clips, etc.

 

Please circulate, especially to people who will call Senators on Health, Education, Labor Committee. DeVos hearing is this Tuesday.

 

Facebook link:

 
YouTube link: https://www.youtube.com/watch?v=47OC7wZbwzM&feature=youtu.be

 

 

Gary Rubinstein writes that Texas has started the process of awarding single letter grades to schools, based mainly on standardized test scores. This is an exceptionally asinine way of evaluating schools, invented by Jeb Bush.

 

He reviewed the Texas scores and discovered that 25% of KIPP schools were rated F. Nearly 50% were either D or F. 

 

Whenever “reformers” talk about expanding high-quality charters, they use KIPP as their example. It turns out that the failure rate for KIPP is higher than for public schools.

 

“I thought that maybe this was one of those things where a lot of schools got an F in this domain so I looked at the 280 Houston Independent School District schools and found that only 34, or about 12.5%, got an F in ‘Student Progress.’ So the percent of ‘failing’ KIPP schools is double the number of ‘failing’ schools in the biggest district in Texas.”

 

Since charters are are supposed to be the remedy for “failing public schools,” what is the remedy for failing charter schools?

Last spring, Salon published an article by Kali Holloway about Campbell Brown and her transition from news anchor to “education reformer” and “charter propagandist.” The article was posted before California’s highest court threw out the Vergara case, whose plaintiffs claimed that teacher tenure was racially discriminatory. It also was posted before a judge in Minnesota tossed out Campbell Brown’s copycat effort to kill teacher tenure in that state.

 

Nonetheless, the article accurately depicts Campbell Brown’s contempt for public schools, teachers unions, and teachers. Facebook announced that it plans to hire her as its face to the news media. It is important to know her low opinion of public education, a basic democratic institution, and the people who work to educate our children. As the article shows, Brown did not want to disclose the funders of her website, The 74, claiming that they might be harassed (as if!).

 

The article says The 74 is funded by: The Dick and Betsy DeVos Family Foundation, Bloomberg Philanthropies, Jonathan Sackler (of OxyContin producer Purdue Pharma) and the Walton Family Foundation.

 

 

According to the Trump group’s favorite news media, businessman Allen B. Hubbard is the likely choice for the #2 job in the U.S. Department of Education. He is a strong advocate for school choice and for the Common Core.

 

He is on the board of the Lumina Foundation, which has made large grants to support implementation of Common Core.

 

Like DeVos, he is very wealthy.

 

So pmuch for Trump’s vow to eliminate Common Core.

 

 

Andre Agassi is in the charter school business with his partner Bobby Turner, and they are building and opening charters across the nation. Agassi and Turner raised $750 million for their for-profit venture.

 

Meanwhile, back in Las Vegas, Agassi’s flagship charter school is one of the lowest performing schools in Nevada, and it will be taken over by Democracy Prep Charter School, based in New York City.

 

Agassi should sell tennis rackets and get out of the school racket.

Do you want to know what is wrong with American education? Look no further than Philadelphia. The city public schools have been a plaything for the city’s rich and powerful. The students are mainly black and poor. The schools are underfunded. Charter schools are thriving. Public schools have been closed to make way for privately managed charters. The city schools have not had democratic control of years. It is run by a School Reform Commission appointed by the governor and the mayor. The SRC does not have a clue about how to “reform” the schools.

 

Consequence: The city’s public schools have eight full-time librarians for 220 schools and 134,000 students. 

 

As Philadelphia school budgets have shrunk, librarians have grown rarer, almost to the point of extinction. In 1991, the school system employed 176 certified librarians. Now, the librarians are only at Anderson, Elkin, Greenberg, Penn Alexander, Roosevelt, and Sullivan elementaries and Central and South Philadelphia High Schools.

 

In addition to the librarian-staffed libraries, 13 libraries are kept open by 128 volunteers from the West Philadelphia Alliance for Children, according to the district.

 

What a disgrace for the nation’s fifth largest city!

 

When I went to the Houston public schools in the 1950s, my public schools had fully staffed libraries. Are we poorer now than then?