Archives for category: Corporate Reformers

There is still time for you to tune in at 3 pm EST to hear Joe Nathan and Howard Fuller discuss political strategy to promote charter schools and privatization.

Nathan is a week-known Charter advocate.

Fuller is a well-known voucher advocate. His defunct organization, Black Alliance for Educational Options, received millions of dollars annually from pro-voucher, pro-charter groups. In its last year, it had revenues of $8.5 million. Fuller relied on the Rightwing Bradley Foundation to launch him into national activism for vouchers and privatization. Read Mercedes Schneider on BAEO, it’s association with Betsy DeVos’s AMERICAN Federation for Children, and its persistent efforts to privatize public schools.

Nathan and Fuller will share their concern about the “well-funded” efforts to stop charter schools and privatization.

I hope they will let listeners know where to find the funding to stop privatization. I’d like to raise some money for the Network for Public Education, which is not “well funded.”

Do you think they will mention the hundreds of millions of dollars spent every year by the Waltons, Eli Broad, Bill Gates, John Arnold, the Koch brothers, the DeVos family, Reed Hastings, Michael Bloomberg, Paul Singer, Dan Loeb, and other billionaires, as well as the U.S. Department of Education, to fund charter schools?

If ever there was a well-funded industry, it is the charter industry.

If ever there was an underfunded opposition, it is those who fight to protect their public schools against the charter vultures.


Carl Cohn is one of the most respected educators in California. He has been a teacher, principal, and superintendent. He led Long Beach, where he earned a reputation as a calm problem solver. I got to know him when he was superintendent in San Diego, and I was researching the first district to embrace and impose top-down Corporate Reform. After voters booted out the Reformers, Carl was brought in to restore calm and trust. When Carl Cohn speaks, I listen.

In this article, he tells the public what is at stake in the contest for Superintendent of Public Instruction in California. This race is likely to be even more expensive than the governor’s race, where Gavin Newsom has a large lead over his

On one side is Tony Thurmond, social worker and legislator. On the other is Marshall Tuck, the chosen favorite of the charter-loving billionaires. The money is pouting in for Tuck. Just last week, another $4 million arrived from his super-rich allies.

He writes:

Why will so much money be spent on this race? The reason lies with a small group of billionaires who have no education experience but because of their outsized pocketbooks wield huge influence in education politics across the nation. Billionaires like the Waltons (of Walmart fortune), Eli Broad, and President Trump’s Education Secretary Betsy DeVos have made it their priority to fight for the charter school industry, school vouchers, and high-stakes testing.

The billionaires are supporting candidate Marshall Tuck, a former charter schools executive with a mixed record of success and reputation for fighting not fixing – because they know they can count on him to support the charter school industry.

His opponent is Democratic state legislator and public school parent Tony Thurmond. Tony is a social worker by training who has spent 20 years working inside and outside of schools with some of the most high-need children in California.

Tony’s passion for education stems from his own life experience.

Like many California students, Tony Thurmond comes from humble beginnings. Tony’s mother emigrated from Panama to San Jose to become a teacher. His father was a Vietnam veteran who, suffering from PTSD, did not return to the family. When Tony was 6, his mother lost her battle to cancer. He and his brother were sent to live with a distant cousin.

Tony grew up on public assistance and college was never a sure thing – but he succeeded because he was able to attend a great public school where his teachers encouraged him to apply. At Temple University in Philadelphia, Tony became student body president.

After graduation, Tony became a social worker to give back, serving foster youth, children with incarcerated parents, folks with disabilities, immigrants, first-generation college students, and families living in deep poverty. He went on to lead nonprofits and run school-based mental health programs. Tony has taught civics, life skills, and career training courses.

Tony Thurmond believes, as I do, that public education can save lives.

For me, it’s a belief that stems from 50 years working in education, first as a teacher and counselor in the Compton public schools, then as a superintendent in the Long Beach and San Diego school districts. Most recently, as executive director of the California Collaborative for Educational Excellence, it’s been my job to get the right kind of help to schools, districts, charters and county offices of education.

With Trump and DeVos leading the federal education agenda, it is imperative that California elect a strong, effective advocate for public education who will stand up to the billionaires and their charter school industry. Tony Thurmond is that advocate.

While Secretary DeVos was proposing to eliminate the federal Office for English-Language Learners, Tony was passing legislation to expand bilingual education. One in five California students is an English Learner.

While Trump and DeVos were shortchanging STEM (science, technology, engineering and math) education funding on the national level, Tony was fighting for $200 million here in California — an appropriate investment for California, the fifth largest economy in the world and innovation capital of the world.
Tony Thurmond is the only Superintendent of Public Instruction candidate who Californians can trust to fight for our public schools and to fight back against the billionaires and their pro-charter school industry agenda. That’s because Tony believes to his core that we must create a public education system where every child, no matter their circumstances, graduates prepared for success in the 21st century economy.

Valerie Jablow, a D.C. public school parent, keeps close watch on the politics of the District of Columbia schools. In this post, she shows how the Mayor, Muriel Bowser, ignored the letter of the law, which says that the Chancellor Selection Committee should be composed of teachers, parents, and students of the D.C. public schools; why a judge allowed her to ignore the law; and how she added a significant number of people (8 of 19) who are closely identified with the interests of the charter lobby.

The selection panel meets today.

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.

Bill de Blasio was elected Mayor of New York City in 2013. He appointed former Deputy Chancellor Carmen Farina as his chancellor. Having been a teacher, a principal, and a superintendent, she was far more qualified than her predecessors Joel Klein (a lawyer) and Dennis Walcott (a non-educator who had served as Mayor Michael Bloomberg’s Deputy for education), and teachers welcomed a leader who had knowledge and e perience. However, Farina never cleaned house. People hired by Joel Klein remained in top positions. Farina, of course, had worked for Klein too.

The new Chancellor Richard Carranza has done some shaking up, although the deep strata of corporate reformers remain sheltered in place throughout the upper echelons of the Department of Education.

Leonie Haimson reports here on the resignation of one top Klein hire after two recent demotions and the retention of others.

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.

In this post, journalist Stephen Rosenfeld explains how charter operates make a profit. He has only scratched the surface. Some make profits through clever real estate deals, where they buy or lease a space, renovate it at public expense, then charge the state exorbitant rental fees. Some embezzle. Some use their school credit card like an ATM. Some set up “related companies” and divert funds to those companies, which they happen to own. Some hire contractors and get kickbacks. There is no end to ingenuity when no one is watching.

Rosenfeld begins with the interesting question: In what way is Enron like the charter industry? (One of the major funders of charter schools is John Arnold of Texas, who made his fortune as an Enron trader, before it imploded).

On the surface, Enron was in the energy business. But behind closed doors, it was engaged in an array of dubious investments and transactions that helped its top executives amass wealth. The charter schools cited in their report similarly present a public face of being alternative public schools. But their founders also used an array of financial tactics, especially involving school real estate deals, to become rich by diverting millions from their classrooms.

Nationwide, 43 states and the District of Columbia have 6,800 charters serving 2.9 million students. They comprise 6 percent of K-12 public school enrollment, which has increased six-fold in the last 15 years. When states approved the first charters in the 1990s, the idea was to nurture locally accountable experimental schools. However, since then a K-12 privatization industry has emerged that is dominated by companies seeking to create regional or national brands, akin to any other corporate franchise. These larger charter operations tend to have non-profit and for-profit arms, which can mask an array of complicated financial relationships.

The charter industry’s largest operations often are run by what’s called educational management organizations, EMOs, which “now control 35-to-40 percent of the industry with an estimated 45 percent of charter students,” the scholars said. These sophisticated operations can attract private investors because they can use their status as schools to get large tax breaks, which, in turn, are applied to a range of profit-making ventures that have nothing to do with educating under-served communities.

“Charter schools attract investors because of the potential for new revenue streams,” the authors said. “For instance, the New Market Tax Credits (NMTC) program provides investors the opportunity to make profits from charter-school real estate transactions. Enacted as a component of the Community Relief Tax Credit Act of 2000, the NMTC was designed to encourage investment in low-income communities. The NMTC accomplishes this goal by providing investors in a community development entity (CDE) a 39% tax credit over a seven-year period.”

But the biggest way to grab seven-figure sums in the privatized education sphere was through shady real estate transactions, they said, saying their for-profit arms can “obtain revenue from charter schools through lease payments for the use of the facilities.” The authors them gave five stunning examples, where the school’s founders could not stop themselves from grabbing millions.

Read about his five examples.

The school board of Antioch Unified School District in California had an extended discussion about whether to approve two new charter schools. The discussion was often heated. The district made the decision knowing that the two charters will draw away $25 million from its own public schools. The board staff urged the board to reject the charters.

It makes for interesting reading.

The lead petitioner stressed the district’s low test scores and the urgency of change.

On Wednesday, the Antioch Unified School District approved charter petitions for East Bay Tech Middle School Academy and High School Academy on 3-2 votes in a meeting that lasted more than 5-hours.

As a result, District staff anticipate losing $25 million in revenue over the next several years.

In favor was Debra Vinson, Chrystal Sawyer-White and Walter Ruehlig. Opposed were Gary Hack and Diane Gibson-Gray.

The vote came after staff recommended the Board deny the petition based on an analysis by legal council in which numerous deficiencies were identified in the petition along with concerns related to the petition and the proposed Charter School’s operations. HE also stated that that more than one of the legal grounds for denial were met. Specifically, the petition does not provide a reasonably comprehensive description of several essential charter elements and the petitioners are demonstrably unlikely to successfully implement the proposed education program.