Archives for category: Corporate Reformers

Most people who are active in school board elections never heard of Democrats for Education Reform (DFER), know nothing of the duplicity of Stand for Children, and are unaware of the privatization agenda of corporate reformers.

This article by Justin Miller in the American Prospect seeks to demystify the strange confluence between hedge fund managers and the charter school movement.

Miller tells the story of the transformation of school board elections, once a sleepy affair, now attracting large sums of money from out of district and out of state organizations. The key organization in the race to control local school boards is Democrats for Education Reform (DFER), the hedge fund managers’ group.

He gives illustration of how they operate by focusing on school board elections in Indianapolis, and to a lesser extent, Minneapolis and Denver.

Flying under the radar, DFER bundled money to put their allies in charge.

The list of original funders is chock-full of Wall Street A-listers. There was Joel Greenblatt, head of Gotham Asset Management and author of the seminal high-finance book You Can Be a Stock Market Genius. There were Charles Ledley and James Mai of Cornwall Capital, perhaps most well known for betting big against the subprime-mortgage market, which was depicted in the book-turned-blockbuster The Big Short. There was David Einhorn, head of Greenlight Capital, who has drawn scrutiny on more than one occasion for financial wrongdoing.

Basically, if you were anybody who was anybody in hedge funds, you probably chipped in. [Whitney] Tilson called the group Democrats for Education Reform (DFER), and set it with a mission “to break the teacher unions’ stranglehold over the Democratic Party.”

Early on, DFER identified then-Senator Barack Obama and then–Newark Mayor Cory Booker as promising politicians willing to break with teachers unions. DFER was instrumental in convincing Obama to appoint charter-friendly Chicago Superintendent Arne Duncan as secretary of education, and it spent a lot of time and money lobbying the administration to pursue reformist education policies like Race to the Top and Common Core. Tied to Obama’s coattails, DFER was now one of the most influential political players in the ascendant education-reform movement.

Who is involved in DFER? Miller answers:

The list of original funders is chock-full of Wall Street A-listers. There was Joel Greenblatt, head of Gotham Asset Management and author of the seminal high-finance book You Can Be a Stock Market Genius. There were Charles Ledley and James Mai of Cornwall Capital, perhaps most well known for betting big against the subprime-mortgage market, which was depicted in the book-turned-blockbuster The Big Short. There was David Einhorn, head of Greenlight Capital, who has drawn scrutiny on more than one occasion for financial wrongdoing.

Basically, if you were anybody who was anybody in hedge funds, you probably chipped in. Tilson called the group Democrats for Education Reform (DFER), and set it with a mission “to break the teacher unions’ stranglehold over the Democratic Party.”

Early on, DFER identified then-Senator Barack Obama and then–Newark Mayor Cory Booker as promising politicians willing to break with teachers unions. DFER was instrumental in convincing Obama to appoint charter-friendly Chicago Superintendent Arne Duncan as secretary of education, and it spent a lot of time and money lobbying the administration to pursue reformist education policies like Race to the Top and Common Core. Tied to Obama’s coattails, DFER was now one of the most influential political players in the ascendant education-reform movement.

It is important for reports like Miller’s story to be circulated widely, among school board members across the nation. They need to understand where the “dark money” is coming from. They need to know why a race that once could be self-financed now requires large sums of money. They need to know who DFER is, who Stand for Children is, and know that their agenda is privatization of public schools. As the recent election in Nashville showed, outside money poured in but it was not enough to defeat the candidates who were fighting to improve the public schools, not to replace them. Since the “reformers” always fly under a false flag, promising to improve public schools and to save children from “failing schools,” democracy requires that voters know who they are and what they seek.

Joshua Leibner wrote an open letter to celebrated author Ta-Nahisi Coates, with the expectation that Mr. Coates would never see the letter.

Leibner, an NBCT teacher in Los Angeles for 20 years, wrote this letter to counter an “open letter” that John Deasy had written to Ta-Nahisi Coates.

Leibner acknowledged that both of them were using the format to make a statement directed at the public, not the author.

He used his letter to excoriate Deasy and his fealty to the agenda of the Billionaire Boys Club.

If Deasy would like to respond to Joshua Leibner, I welcome his letter.

Tom Ultican teaches in San Diego. He recently read Ciedie Aech’s new book about teaching in Hyper-Reformy Denver and highly recommends it.

Denver is a trifecta of reformers. Non-educator Michael Bennett was tapped to be superintendent. He has a law degree from Yale. He then was appointed to fill an empty Senate seat, so he is now Senator Bennett. He was replaced by Tom Boasberg, another non-educator. He too is a lawyer with no education background. And Colorado has wonder boy Michael Johnston, the TFA-Broadie in the state senate who wrote the nation’s most punitive teacher evaluation bill. It passed in 2010. Colorado was supposed to have great schools, great principals, and great teachers by now. Results don’t matter.

Tom loved the book and thinks you will too.

The California Teachers Association created a useful graphic of the billionaires who are supporting charter schools and privatization of public schools. (There are many more billionaires supporting privatization, but this is a good start.)

Here are a few things you should know about the people on this site.

The Waltons are probably the richest family in America. Forbes estimates their family fortune at $130 billion. Privatizing public education is a family hobby or passion. Wherever there is a critical election, whether in Washington State or Georgia, you are likely to find that a Walton has put in big money to help those who want to replace public schools with private management. They don’t like unions. They boast that they have funded one of every four charters in the nation. I don’t know if any of them have a union, but I doubt it. Walmart is non-union, and it has thrived–for the Waltons, if not for its workers. Workers at Walmart had to fight to get minimum wages. Many qualify for food stamps. If the Waltons wanted to reduce poverty, they could do it by raising the wages of their workers to $15 an hour. They have 1 million low-wage workers. Imagine the good the Waltons could do if they gave their workers a living wage.

Arthur Rock not only gives generously to charters, he is a major contributor to Teach for America. He personally pays for its Washington, D.C., interns who work as Congressional staff and diligently protect TFA’s financial and political interests.

Reed Hastings owns Netflix. He told a meeting of the California Charter Schools Association that he looks forward to the day when there are no local school boards. Think of it. You would get to pick your charter but have no voice whatever in its decision making. Democracy is such a nuisance. Hastings contributed to a fund to oust the chief judge of Washington State this fall because she wrote the opinion saying that charter schools are not public schools. He established a $100 million fund to promote charter schools headed by the guy who ran New Schools for New Orleans.

Doris Fisher is the matriarch of the Fisher Family that owns the Gap and Old Navy. The family has heavily supported KIPP and TFA. The three Fisher children went to Phillips Exeter Academy.

Eli Broad pushes to eliminate public schools everywhere. His Broad superintendents have been strategically placed in key positions in school districts across the country after being carefully indoctrinated in his view that the best way to improve public schools is to replace them with charters. He likes to work with school districts where there is minimal public participation, preferably where the mayor has total control. He wants to put half the children in Los Angeles in privately managed charter schools. He is another reformer who doesn’t like democracy. The more autocratic control, the better the environment for his top-down management plans.

The Laura and John Arnold Foundation of Houston has made its mark beyond supporting charter schools in California. John Arnold tried, but failed, to turn Dallas into an all-charter district. He has a passion for eliminating defined-benefit public pensions and replacing them with 401Ks, which fluctuate with the market. When investigative reporter David Sirota discovered that Arnold was financing a PBS program on the “crisis” in public pensions, PBS was shamed into returning Arnold’s donation of $3.5 million.

Know your reformers!

CTA represents charter school teachers in addition to public school teachers. But it is standing up to the billionaires who are promoting charters in hopes of killing unions.


California Teachers Association
1705 Murchison Drive
Burlingame, CA 94010
http://www.cta.org

Contacts: Claudia Briggs at 916-325-1550 or Mike Myslinski at 650-552-5324

Educators Launch ‘Kids Not Profits’ Campaign

Radio Ads and Website Support Legislation for More Charter School Accountability

and Expose Billionaires’ Agenda to Divert Money from Neighborhood Public Schools

BURLINGAME – California’s educators launched the “Kids Not Profits” campaign today, calling for more accountability and transparency of California charter schools and exposing the coordinated agenda by a group of billionaires to divert money from California’s neighborhood public schools to privately-managed charter schools. These billionaires are spending record amounts of money to influence local legislative and school board elections across the state.

The campaign is launching with a series of radio ads and an informative website – www.KidsNotProfits.com – where parents and the public can get more information about privately-managed charter schools, their impact on students, the billionaires behind them and take action to demand accountability, transparency and equal access for all students. A coalition of education, civil rights and community organizations is supporting legislation that is now headed to Governor Brown for his signature. The first radio spots are running in Los Angeles, San Francisco and Sacramento. Listen to the English and Spanish radio ads here.

“Public schools should be about students and inspiring young minds – not profits,” said Eric Heins, president of the 325,000-member California Teachers Association. “Educators, parents and civil rights advocates have been talking about the need for accountability and transparency of these privately-run charter schools for some time. We can’t let a group of billionaires with no classroom experience push their profit-driven agenda on our public schools.”

The radio ad lays out the billionaires’ coordinated agenda to:

Divert money out of California’s neighborhood public schools to fund privately-run charter schools, without accountability or transparency to parents and taxpayers.
Cherry-pick the students who get to attend charter schools – weeding out and turning down students with special needs.

Spend millions trying to influence local legislative and school board elections across California.

In the June primary election, this small group of billionaires spent more than $11 million in several state legislative and county office of education races. This network of billionaire donors mirrors the dark money networks used by the Koch brothers. In fact, many of the same donors were directly implicated in an illegal dark money scheme in 2012. This group promised to spend even more in the November election and have already begun writing big checks.

Recent news headlines and academic studies have documented the waste, fraud and abuse by privately-managed charter schools that have cost taxpayers millions while hurting students. An ACLU report, “Unequal Access,” found that more than 20 percent of California’s charter schools deny access to students with disabilities, English learners, or students who have lower grades and test scores. The NAACP recently called for a ban on privately managed charters. State regulators have found more than $81 million in fraudulent and wasteful spending at charter schools in California, while another report shows that an expansion of privately-run charter schools would cost the Los Angeles Unified School District more than $500 million this year alone.

The coalition is calling on Governor Brown to sign AB 709. This bill requires all charter schools to be transparent and accountable to parents and to disclose how they spend taxpayer money, including budgets and contracts. It prohibits charter school board members and their families from profiting from their schools, and requires charter schools to comply with California’s open meetings, open records and conflict of interest laws.

The coalition also supported SB 322, which prohibits charter schools from having discriminatory admission requirements to prevent them from cherry-picking the students they want and turning away students that need extra help, such as special education students, students learning English or students with low academic performance. It also ensures uniform disciplinary actions for all students by requiring charter schools to identify a list of acts for which students can be suspended or expelled, as well as setting a maximum length for suspensions. This bill failed on the Assembly floor late yesterday.

“CTA proudly represents more than 5,000 charter school educators and is working with many others who want to join with us in standing up for students and accountability,” said Heins. “When the charter law was passed in California, no one ever intended it to be a playground for billionaires who want to profit off students and push their agenda on the rest of us. It’s time to hold charter schools and their private operators accountable to some of the same standards as traditional public schools.”

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Peter Piazza earned his doctorate in 2015 and wrote his doctoral dissertation about the activities of Oregon-based Stand for Children in Massachusetts. He is now working as a professional researcher. SFC is an organization that started out as an advocate for children, but then received millions from corporations and foundations to fight teachers’ unions and advocate for charter schools.

Piazza wrote this summation of his research for the blog:

Stand for Children: Misadventures in Massachusetts

In the upcoming school year, a new law restricting teacher job security will become effective in Massachusetts, after having taken a winding road to its fruition that was at best nonsensical and at worst deeply undemocratic. Better known as the Stand for Children compromise law, MA 2315 prohibits public schools from using seniority as the primary factor in teacher personnel decisions, ending a long tradition that had allowed districts to make these kinds of decisions themselves, through the collective bargaining process.

The law was originally proposed by Stand as a ballot question that would have had even more far reaching consequences for teachers. Then, Stand and the state’s largest teachers’ union worked out a compromise bill in private negotiations with their lawyers. That bill was passed through the state legislature in order to remove the original (and worse) proposal from the ballot in 2012.

I tried to follow as many of the twists and turns as I could in my doctoral dissertation, relying most heavily on interviews to reconstruct a deliberately obscure policymaking process. Much of this story will be frustratingly familiar to public education advocates-

• As others have noted on this blog (here and here) and elsewhere (see here, here and here), Stand was initially created as a genuine grassroots advocacy group. Following Race to the Top and Citizens United, the group abruptly turned away from local level membership and towards big money grants from national foundations, especially – of course – Gates and Walton (2010, 2011). Research found that in 2010 Stand’s Leadership Center – its 501(c)3 wing – was among the top 5 recipients of grants from venture philanthropy in educational advocacy.

• In Massachusetts, Stand, a registered 501(c)4 group, began accepting large donations around 2009 from “dark money” sources, including a shadowy but extremely influential organization called Strategic Grant Partners. Local donors to Stand’s (c)3 wing also included The Boston Foundation, a prominent Boston donor that launched the state’s Race to the Top Coalition which continues to advocate for neoliberal reform, and Bain Capital. Because (c)4’s don’t have to disclose their donors, however, it’s hard to trace the money all the way through. Reporting, however, has linked Stand’s MA office to the usual suspects of hedge-fund managers and investment bankers. In all, it was widely believed that Stand had nearly $10 million to spend on the ballot initiative, though, the group saved some money in compromise, ultimately spending a little more than $850,000, according to state campaign finance records.

• Long-time members in the state left publicly, in an open letter expressing both critique and confusion regarding Stand’s new direction. Without an active base of volunteers, most of the money spent on the campaign went to paid signature gatherers or lobbyists.

• Even worse: Stand’s national CEO, Jonah Edelman – the son of Marian Wright Edelman – told everyone on YouTube that the organization would bring its anti-union agenda to states like Massachusetts. After passing restrictions on job security in Illinois, Edelman referred to teachers unions when he infamously trumpeted that Stand was able to “jam this proposal down their throats.” He then stated baldly that “our hope and our expectation is to use this as a catalyst to very quickly make similar changes in other very entrenched states.”

But, in the Massachusetts example at least, there are potential sources of hope for public education advocates –

• Stand was almost completely conflicted within every major level of the organization. National leaders wanted a quick win, state leaders wanted more time to build relationships, and Stand’s community organizers genuinely wanted to do good community organizing.

Here’s my best short summary of the whole process: As told to me by a state level leader at Stand, “the original Great Teachers Great Schools campaign plan was over a three year time period. So we had the intention of building a coalition around it, spending a significant amount of time lobbying on it.” This would have lined them up to try to pass a traditional bill through the state house in 2014.

Then, the organization abruptly changed its plans, deciding instead to pursue a ballot question for the 2012 election. Another state level leader told me that this decision was made “basically five weeks” before the deadline for filing ballot measures. Potential allies in the business community and even their own staff assumed that the decision to go with the ballot question was likely driven by national leadership because the state office “wasn’t big enough to tell national ‘here’s the deal’.”

Then, amazingly, it turned again. When the campaign for the ballot question wasn’t going well – because Stand hadn’t built a state coalition of any kind – national leadership put clear and direct pressure on state leadership. As reported by a former staff member, during a visit from national in the winter of 2012 staff were “told explicitly that we need to win the campaign or essentially the Massachusetts chapter is going to cease to exist.” Thus, the compromise.

• Absent a major outreach effort, Stand had a very limited number of local allies. Only a few spoke at the legislative hearing for the ballot question, including (of course) a local investment banker; a parent and teacher member of Stand, each of whom had joined the campaign after it started; and a Boston city councilor, who would later – in his mayoral campaign – return a half-million dollar donation from Stand, stating that he did not want to accept money from outside special interest groups.

• The media praised the compromise as a big victory for Stand, but they largely got it wrong. Instead, the organization found itself almost completely isolated in the state. Likely allies in the business community balked at a partnership “because of that national-local issue, you don’t know who you’re talking to.” Community organizers told me that principals wouldn’t return their calls. When I asked Stand leaders what they might have done differently, they responded frankly: “I would have drafted the ballot question with more time. We drafted it in no time.” Without a chance to build a broader coalition, the organization was largely left standing on its own.

• In the compromise, they gave up a lot. More dramatic changes to teacher tenure and collective bargaining were removed from the compromise law, with the restrictions on seniority – not tenure – the only major parts that remained and even those were watered down. The compromised also pushed the effective start date from 2013 to the 2016-2017 school year.

In the end, this all contributed to a process that was troublingly undemocratic. Contrary to how they might be portrayed more broadly, state leaders and community organizers at Stand wanted to organize parents and teachers in Boston schools and wanted to work on other issues completely unrelated to the ballot campaign. They just couldn’t. Under pressure from national leadership, community organizers went out instead to find “folks that would be predisposed to arguing in favor of this anyways whether they had something substantive to say or not and get them on board” often by “giving a 30-second pitch to somebody at Stop & Shop” and getting them to sign an apple-shaped card.

Grad students are often asked to name/label things. I called this “neo-democracy” – an umbrella term for cases like this where big money and high-stakes pressure lead to shallow forms of democratic engagement at the local level, an increasingly common occurrence as neoliberal advocacy groups – like Stand, StudentsFirst and DFER among others – gain influence over state policy.

That’s the bad part, of course. But, it can be reversed, and it is every day by the many, many people who work to bringing public voice to public education. What can’t be reversed, at least not any time soon, is Stand’s reputation in Massachusetts. As others have noted, Stand hasn’t been very active in Massachusetts since. But, this wasn’t a page out of the astro-turf playbook. It was an unintended consequence of a clumsy advocacy process led by heavy-handed “direction” from the national level. And, it suggests that these kinds of groups may not be the smooth operators they appear to be, that without relationships and meaningful connections to the local level, money can of course buy something, but it may only be a flash in the pan.

Peter Greene received a notice from the Center for Education Reform, which has led the fight against public schools for almost 25 years, promising a reward to the charter school that created a video showing how great charter schools are. This was in response to John Oliver’s devastating critique of the charlatans who have profited off the deregulation of public money for nonpublic schools.

Right after the John Oliver piece appeared, the CER asked its followers to write Oliver and tweet him to tell him he was wrong. Apparently this didn’t do the job, so now it is offering a prize of $100,000 for a video showing the awesomeness of privately managed schools.

Greene writes:

I, too, would be interested to see what opportunities charters offer that wouldn’t exist without charters. Perhaps some videos will highlight charter-only perks like “getting away from Those Children” or “enjoying a constantly churning staff of underpaid unretained teachers” or “the delightful mystery of what exactly is being done with our tax dollars” or “the warm glow of knowing that we’ve helped some investors make a buck or ten” or even “the suspense of never knowing when my school might suddenly close.” Please, somebody, make that video…The “Our School Is Great” video is a common genre. Public schools all across the country make them– for free– all the time. But it’s completely in keeping with the charter school industry that, having failed to raise a groundswell of grass roots anger over the Oliver piece (which is now over a week old and yet the righteous indignation over it seems largely confined to people who make their living shilling for charters), the charter cheerleading squad must now pay somebody to stand up for them and help them fight back against this PR disaster.

When I read the CER announcement (I am on the CER mailing list), I was aghast that a school-related organization had that kind of spare money to hold a contest. The Network for Public Education certainly doesn’t. That kind of money represents a large percentage of our annual budget. It must be nice to have that kind of money. But I feel far better having the right principles, even though it doesn’t enhance our bank account. It is good to wake up every day knowing that you are on the right side of history, fighting to create better schools for all. I feel sorry for people fighting for better schools for a few kids, while sucking resources out of the schools that enroll the majority o kids. This is akin to providing 50 life vests for a ship that holds 1,500 passengers. The donor can feel proud of saving 50 lives, while ignoring the other 1,450 passengers. I want a safer ship, a well-trained pilot and crew, and life vests for all.

Phi Delta Kappa released its annual poll today. Nothing new except that Gallup is no longer the polling company. No headlines. The only obvious conclusion: the American public is confused about why we have schools and what they should be doing and whether they are doing it well.

The public doesn’t agree on what the purpose of public schools is. 45% says it is to teach academics. About a quarter think they should teach career readiness. Another quarter think they should prepare students for citizenship.

Just to be clear, the reason that public schools were first established and treated as a community responsibility was to prepare good citizens to sustain our society into the future. There are many subdivisions under the goal of preparing to be good citizens, which would include the academic skills needed to read, write, think critically, be informed about issues in science and history, and be in good health. Somehow, the central purpose has been lowered in status. When people lose sight of the central purpose of education, then they fall prey to bogus claims about choice, charters, and vouchers, about which sector can do a better job of teaching academic skills or career skills. We have public schools as a public responsibility to teach young people to become active and informed citizens. All the rest follows.

In reading through the inconclusive public opinion on almost every subject, one question caught my attention because of its wording:

Q. Charter schools are public schools that are run without many of the state regulations placed on other public schools. Do you think it’s better for charter schools to meet the same educational standards as other public schools or to set their own educational standards?

The answer was a split decision. 48% said meet the same standards, 46% said no.

The question assumes that charter schools are public schools.

But charter schools are NOT public schools. Whenever charter operators are sued, their defense is that they are not public schools. They are privately managed schools that receive public funding. As the NLRB ruled last week, and as federal courts have ruled, charter schools are not held to the same standards as public schools because they are NOT “state actors.” Public schools are state actors. Charters themselves plead that they are not public schools. In 2010, the Ninth Circuit Court of Appeals ruled that a charter operator in Arizona ran a private nonprofit corporation, not an agency of the state, in response to a lawsuit by a former teacher. In 2011, the staff at the New Media Technology Charter School wanted to form a union. They appealed to state law. The charter owner, however, said the school was not public and was not governed by state law; he said it was a private school subject to the NLRB. In the same year, teachers at the Chicago Math & Science Academy also wanted to form a union. There, too, the charter operator rebuffed them by saying the school was a “private” entity, not a public school, and was not subject to state law. (See pp. 163-164 of Reign of Error). Charter schools are run by private entities that receive government contracts. The receipt of public funds does not make an entity public. If it did, then every major defense contractor would be public, not private.

The answer is troubling as well as the question. If nearly half of the respondents think that charter schools do not have to meet the same standards as public schools, what is it they believe? Do they believe that charter schools should not be held accountable for student test scores? Do they think that charter schools should be judged by some other metric?

I have been reading PDK polls for years. I learned nothing new from this one, other than that the public has lost sight of why we have public schools. That may be the consequence of propaganda from the privatizers. If there is no agreement on why we pay taxes to support public schools, then any alternative will do, including schools run by churches and schools run by foreign nationals.

Leonie Haimson, parent activist in New York City, crusader for reduced class size and student privacy, lays waste to the charter privateers in this hilarious post!

First came the devastating resolution passed by the national convention of the NAACP, calling for a charter moratorium.

Then came the attack on charters by Black Lives Matter.

And the topper was John Oliver’s funny and accurate portrayal of charter school graft.

But the privateers (or privatizers, as I usually say) continue their assault on public education with propaganda and lies.

In Massachusetts, they claim that expanding charter schools will “improve public education,” when in fact it will drain money from neighborhood public schools and take away local control.

In Georgia, a constitutional amendment on the ballot in November authorizes the creation of a state district that will eliminate local control, like the failed Tennessee ASD, yet says it will empower communities.

This is Orwellian. That means when you say one thing but mean the opposite. Another word for lying. Like saying “reform” when you mean “privatization.”

Mercedes Schneider here describes a new entity that has joined the corporate reform movement. It is called SEN, the School Empowerment Network. It seems to be funded by the Walton Family Foundation, the billionaires who want to privatize all of public education and get rid of teachers’ unions. It is based in Brooklyn, New York, but gained its first contract in Michigan.

Michigan is the state where 80% of the charters operate for-profit. It doesn’t really need more charters. It does need accountability and transparency. The Detroit Free Press published a week-long series in 2014 about taxpayers being fleeced by the charter industry, which gets $1 billion a year and is never held accountable.