Archives for category: Corporate Reformers

Jim Miller, professor at the San Diego City College, has posed exactly the right question: Who will save us from “our billionaire saviors?” The question was inspired by Andrea Gabor’s excellent new book After the Education Wars, and by the possibility that billionaire Michael Bloomberg will run for the Democratic nomination for president in 2020.

In New York City, we remember him as a data-driven, test-loving, top-down Reformer, who hired non-educator Joel Klein to terrorize teachers and principals and introduce choice and charters. The result was a public relations success and an education failure. Much boasting, vast disruption, constant reorganization. Change for the sake of change. Bloomberg is one of the billionaires identified in the NPE report about the super-rich who fund anti-public education candidates in state and local elections.

Miller writes:

After failing to prop-up Antonio Villaraigosa’s flagging gubernatorial campaign last June, Michael Bloomberg apparently spent the summer pondering whether it would be wiser for him to personally save the United States rather than waste his time trying to rescue California by proxy. Last week the New York Times reported that Bloomberg was mulling a run for the Presidency as a Democrat because that represented the most viable path to victory. As the Times story observed, while Bloomberg has engaged in some good work on guns and the environment, many of his other positions might not be very likely to win over the liberal base of the Democratic Party…

As Andrea Gabor, (ironically) the Bloomberg chair of business journalism at Baruch College/CUNY, writes in her excellent new book After the Education Wars: How Smart Schools Upend the Business of Reform, Bloomberg’s reign in New York hardly represented a golden era for education: “to be an educator in Bloomberg’s New York was a little like being a Trotskyite in Bolshevik Russia—never fully trusted and ultimately sidelined…”

The business reformers came to the education table with their truths: a belief in market competition and quantitative measures. They came with their prejudices—favoring ideas and expertise forged in corporate boardrooms over knowledge and experience gleaned in the messy trenches of inner-city classrooms. They came with distrust of an education culture that values social justice over more practical considerations like wealth and position. They came with the arrogance that elevated polished, but often mediocre (or worse), technocrats over scruffy but knowledgeable educators. And most of all, they came with their suspicion—even their hatred—of organized labor and their contempt for ordinary public school teachers.

What this has resulted in, according to Gabor, is that the corporate reformers “adopted all the wrong lessons from American business.” Rather than innovating by harnessing “the energy and the knowledge of ordinary employees,” who are the most “knowledgeable about problems—and solutions” because they know the process, the billionaire boys club has favored a punitive, hierarchical, undemocratic, one-size fits all approach that has hurt students more than it has helped them.

Wedded to a factory-style approach to education, corporate reformers “focused on a Taylorite effort to standardize teaching so that teachers can be easily substituted like widgets on an assembly line. This despite the fact that, on average, ‘unions have a positive effect on student achievement’ and the best charter schools are often the independent charters that give teachers voice, often via union contracts.” All of this reflects the fact, Gabor reminds us, that “the corporate education-reform movement has deeply undemocratic roots.”

What this movement has brought us is not pretty. We have systematically devalued the “art” of teaching in favor of a dumbed-down, accountability regimen that prefers standardization and over-testing to empowering educators and students to think more creatively and independently. It has assailed teachers and attacked educational culture to such a degree that it should be no surprise that our society has become increasingly anti-intellectual and hostile to fact-based analysis. As Gabor observes of the Trump era:

[T]he election of this larger-than-life Chucky demagogue, with his multiple bankruptcies and divorces, his sexual predations and business malfeasance, his hate-filled speeches and tweets, also represented a failure of corporate-style education reform as it has taken shape over more than twenty years. Among an electorate that often favors “ordinary” people they can identify with, Trump, the consummate philistine—unread and uninterested, crude, unthinking, and disdainful of facts and any attempt at rational truth—holds up a dystopian mirror of the electorate…

It may not have been the intended outcome of those who simply wished to produce a more useful workforce, but it does show the profound limits of their debased instrumentalism. Hence Gabor again observes: “Corporate education reformers cannot be directly blamed for the ascendance of Trump. However, over two decades of an ed-reform apparatus that has emphasized the production of math and ELA test scores over civics and learning for learning’s sake has helped produce an electorate that is ignorant of constitutional democracy and thus more vulnerable to demagoguery.”

Gabor’s thorough study does more than just criticize the failures of corporate education reform. She outlines how multiple examples of innovative educational practices across the country have defied the technocratic dictates of the well-heeled and focused instead on “bottom-up” strategies that have relied heavily on “a participative, collaborative, deeply democratic approach to continuous improvement, drawing on diverse constituencies—including students, teachers, and local business leaders—in their effort.”

Thus, there are some insights to be found in approaches that rely on “local democracy” that can help do right for our children and the society at large. Following these examples, rather than the lead of self-important billionaires, is where we can find hope for a better education system and a more democratic society.

As for Bloomberg, maybe he should just go away and let the people lead. We’ve had too much “reform” from self-declared rich saviors and philanthrocapitalists already. In fact, it’s long past time that we save ourselves from them.

Gary Rubinstein reports that the latest Tennessee school rankings were just released. Now we know. The Tennessee Achievement School District was a complete and total failure. $100 million down the drain, which came from Race to the Top funding. The same money might have been used to reduce class sizes in these schools. Instead, it was used to induce charter operators to come to Tennessee and work their magic. It failed.

Would someone tell Bill Gates, John Arnold, Reed Hastings, Eli Broad, Michael Bloomberg, and the other billionaires who are still spreading the phony claim of charter miracles?

Spread the word to states like Nevada, Georgia, and North Carolina, which created their own “achievement school districts” based on the Tennessee model.

Seven years ago, as part of Tennessee’s Race To The Top plan, they launched The Achievement School District (ASD). With a price tag of over $100 million, their mission was to take schools that were in the bottom 5% of schools and, within five years, raise them into the top 25%.

They started with six schools and three years into the experiment, Chris Barbic, the superintendent of the ASD had a ‘mission accomplished’ moment where he declared in an interview that three of those six schools were on track to meet that goal.

But a year later, the gains that led to that prediction had disappeared and it wasn’t looking good for any of those six schools. By the time the five year mark had been reached, in the Fall of 2016, Chris Barbic had already resigned and taken a job with the John Arnold Foundation.

The thing about 2016, though, is that whether or not the ASD schools met the lofty goal could not be determined, officially. Tennessee releases their official ‘priority’ list of the bottom 5% schools every three years. And, conveniently enough, the last one was in 2015. So even though it was clear in 2016 that the original 6 ASD schools would not be in the top 25%, an even more important question — how many of those schools remained in the bottom 5%? — would not be known officially for two more years, in the Fall of 2018.

A few days ago, Tennessee finally released the long-awaited 2018 priority schools list, and for the ASD, the results were decisive and devastating.

Long, long ago, almost everyone went to the neighborhood public school. The school had a principal, who was overseen by the superintendent. The superintendent answered to a local school board. Those were not idyllic times, to be sure, but no one ever imagined that there was profit to be found in the public schools, or that the public schools would one day be part of “the education industry.” All that is changed now. There are still neighborhood public schools, but now there is an industry that relies on entrepreneurs and market forces. You don’t have to be an educator to manage or operate or start a charter school (think tennis star Andre Agassi or football hero Deion Sanders). There are tax breaks for investors in charter schools. Charter school properties are bought and sold, like franchises or just ordinary real estate. They have no organic connection to the local community. The profit for entrepreneurs is to be found in the real estate transactions.

A recent real estate deal brought this change into focus. There is a buyer and a seller; there are investors. There is return on investment. The world has changed. The charter industry has profits and losses. They open and close. It is not about education. It is a business.

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A $45 million charter deal suggests profits on the horizon

Graduation mortar board cap on one hundred dollar bills concept
August 09, 2018(Fla.) A private real estate fund, which boasts of pioneering big money investments in charter school properties, announced this week a $45 million deal to buy four schools in three states.

ESJ Capital Partners, based in the Miami area, added the schools to a portfolio that includes a number of more traditional investments, including apartment buildings, medical offices and tourist attractions.

But the firm also owns 28 charter school properties that they say are valued at more than $650 million.

The firm promises to “provide optimum returns for our investors through disciplined procedures, selective investment criteria and structured processes,” according to their website.

Although for-profit investment in charter schools accounts for only a small slice of the movement nationally, there are examples of commercial enterprise within the system.

In some instances, a lender might be able to take advantage of a tax break because of their investment in a school that is located in an economically challenged neighborhood. In other cases, an investor might be interested in the consistent, government-back rent that charters can pay.

There is probably far more invested by a handful  of very wealthy patrons of charters, who view the movement has providing a much needed competition to traditional public schools.

Whether driven by profits or politics, the growing availability of financial support for charters is much needed, supporters say.

In comparison to traditional public schools, charters have much more difficulty borrowing money. The banking community has traditionally viewed charters operators has carrying far more risk of insolvency than traditional public schools.

Charters in most states must also pay for school improvements or new construction out of operating budgets.

A number of big philanthropic organizations have stepped in to improve the fiscal landscape for charter facilities.

The Eli and Edythe Broad Foundation has been very active in the Los Angeles area, as has the Gates Foundation in Washington State.

Earlier this year, the Walton Family Foundation—led by the heirs of Walmart founder—announced the creation of two nonprofit entities to help finance the cost of building and maintaining new charter schools. Combined, the investment from the foundation is expected to be close to $300 million.

But there apparently is also money to be made too.

In 2016, ESJ sold five Florida charter schools for $72 million to Charter School Capital, a financial services company specializing in charter schools. The partners did provide the purchase price of the schools.

The partnership’s latest acquisition are schools located in in the Phoenix area, Washington D.C. and Toledo, Ohio.

All of them are operated by Virginia-based, Imagine Schools.

ESJ reportedly has $100 million invested in properties operated by Imagine Schools.

“The Imagine campuses that we just acquired have been open over 13 years and are thriving financially and academically, with consistent high enrollment,” Matthew Fuller, chief investment officer of ESJ, said in a statement.

According to a release from the partnership in announcing the 2016 transaction, ESJ was one of the first investment groups nationally to see the potential in charter schools.

“At the height of the Great Recession, ESJ identified a niche in developing charter schools as an alternative to their traditional commercial investments,” the release said. “The real estate asset management group predicted this asset type would evolve and scale into a mainstream, single tenant investment category, attracting more institutional investors, lenders and bondholders.”

…read more

Hakeem Jeffries is a Democratic Congressman from Brooklyn. He is part of the Democratic leadership team. Some people believe he might be the next Speaker of the House of Representatives, the successor to Nancy Pelosi. He is a favorite of hedge fund managers and the charter school industry. He recently was honored by the National Alliance for Public Charter Schools as an African American charter school leader (why the organization established a racially segregated award is unclear, as it is unclear why Congressman Jeffries would accept it).

It is not “progressive” to support privatization of public services. It is not progressive to support schools staffed by non-union teachers. It is not progressive to support a “movement” that ignores racial segregation and even celebrates it. It is not progressive to support a movement financed by the anti-union Waltons, the DeVos family, the Koch brothers, and ALEC.

Progressives support public schools.

Dorothy Siegel, a longtime activist in the Working Families Party, wrote this comment about Congressman Jeffries:

“I know Hakeem well. I worked very hard to get him elected, first, to the NYS Assembly, and then to Congress, in order to defeat the even worse Democrat Ed Towns. I even raised a bunch of money for him. Then I saw him slip over to the dark side. But, make no mistake, I believe that his embrace of privatization is NOT (as he claims) primarily about wanting poor black and brown kids to get a good education, but about the fact that there is more money and power on that side than on the side of public education. That money, the hedge funders who provide it, and the corporatist establishment Democrats, were the drivers of Hakeem’s political rise. Money and power have totally corrupted him. Hakeem, like Cuomo and Booker, has and will continue to sell out our public schools when they are in the inner sanctum of their party leadership positions. Hakeem’s rise within Congressional Dem leadership is helping him to thwart ALL our efforts to reign in Congressional support for privatization. On education issues, he wis arguably more powerful than all the new progressive congresspeople we will elect in 2018, combined.

“Sad to say, we must recognize that Hakeem is THE ENEMY. He can not be defeated in his very safe Brooklyn seat, so we must all ORGANIZE to EXPOSE him as the corporate shill that he is. We must tell our progressive Congressional friends that it is NOT ok to go along with Dem leadership (Hakeem) on charters and privatization. Believe me, Hakim will have the tools he needs to fight harder for his corporate friends than anyone on our side will have, so we need to be loud and clear. We also have to insist that, for politicians to gain our support, it’s NOT ok to be “progressive” on reproductive choice and Medicare for All, etc, etc, but anything less than TOTALLY AGAINST corporatism and privatization. Time to take a stand!

“BTW, Hakeem was a key supporter of Zellnor Myrie, the victor in one of the races against the IDC traitors we defeated in the NYS Dem primary. We need to watch what Zellnor does in Albany to make sure he doesn’t pay back his mentor by supporting Hakeem’s education agenda. I’m not at all worried about the other five IDC-slayers. They are solidly and deeply pro-public education. Zellnor may be, too, but he will certainly get pressured by Hakeem and that ilk. So we need to let him know that “progressive” means 100% pro-public education.”

Gary Rubinstein notes that Eva Moskowitz’s Success Academy charter chain has been a “success” in attracting huge donations from hedge fund managers. Gary was a charter member of Teach for America and a part of the Reform world. But he got woke in 2010 at the TFA 20th anniversary celebration. He just can’t stand lies and boasting; honesty is in his DNA.

In this post, he warns that the big donors are being scammed. They believe what the PR department of Success Academy tells them. It has an obvious interest in putting out information that portrays the chain as a miracle, a miracle that can be easily copied by others. But as he shows, no one has been able to reproduce Success Academy’s test scores, and attention should be paid to how those test scores are generated.

Rubinstein has made a reputation as a miracle-buster. In this post, he does it again.

Dear Seven Digit Success Academy Donor,

Obviously if you have seven (or eight!) figures to donate to Success Academy, you are a person who does not easily fall for scams. But this time, I’m afraid you did.

There are really only two possibilities: Either Success Academy is the greatest miracle in the history of education — or the greatest Hoax…

If Success Academy is hiding some secret methods that could be scaled around the country so that other schools could achieve results even in the same ballpark, these methods would be worth billions of dollars to Eva Moskowitz. If she is for real, she has found the equivalent of Ponce De Leon’s famed fountain of youth…

I assume you were inspired by the mind-blowing statistics from Success Academy’s PR department. I assume you were impressed by the way that their 3rd grade through 8th grade test scores would make them the top district in New York State. You assume that their methods can be replicated, but no other charter school in the state has done so…

Success Academy is built on a foundation of lies and it is only a matter of time before it comes crumbling down.

I think we are beginning to understand the real purpose of Corporate Reform. The 1% and their minions repeat ad nauseum that school choice will fix all education problems, lift the poor out of poverty, and no new taxes are needed. Indeed, they have pushed for tax cuts and cheered on deep cuts to public education. We are watching a generation of defunding public schools, refusing to invest in teachers’ salaries, and a massive transfer of resources from the public sector to private institutions.

Jeff Bryant explains it here.

“Recent news stories about wealthy folks giving multi-million donations to education efforts have drawn both praise and criticism, but two new reports by public education advocacy groups this week are particularly revealing about the real impact rich people have on schools and how they’ve chosen to leverage their money to influence the system.

‘The Education Debt’

“The first report, “Confronting the Education Debt” from the Alliance to Reclaim Our Schools examines the nation’s “education debt” – the historic funding shortfall for school systems that educate black and brown children. The authors find that through a combination of multiple factors – including funding rollbacks, tax cuts, and diversions of public money to private entities – the schools educating the nation’s poorest children have been shorted billions in funding.

“One funding source alone, the federal dollars owed to states for educating low-income children and children with disabilities, shorted schools $580 billion, between 2005 and 2017, in what the government is lawfully required to fund schools through the provisions of Title I of the Elementary and Secondary Education Act and the Individuals with Disabilities Education Act.

“The impact of not fully funding Title I is startling, the report contends, calculating that at full funding, the nation’s highest-poverty schools could provide health and mental health services for every student including dental and vision services, and these schools would have the money to hire a full-time nurse, a full-time librarian, and either an additional full-time counselor or a full-time teaching assistant for every classroom.

“State and local governments contribute to underfunding too by keeping in place tax systems that chronically short schools, particularly those that educate low-income students, mostly of color. Two school districts in Illinois are highlighted – one where 80 percent of students are low-income and gets about $7,808 per pupil in total expenditures, while another, where 3 percent of students are low-income, spends $26,074 per student…

“In the meantime, while the nation’s education debt expands, the accumulated wealth of the richest Americans continues to grow. During that time period the federal government was shorting schools billions, the personal net worth of the nation’s 400 wealthiest individuals grew by $1.57 trillion, the report notes.

“There is a direct correlation between dwindling resources for public schools and the ongoing political proclivity for transferring public dollars to the nation’s wealthiest individuals and corporations,” the report declares. “The rich are getting richer. Our schools are broke on purpose.”

This is the context for Bryant’s discussion of the NPE Action Report, “Hijacked by Billionaires.” The 1% buy control of state and local races so they can advance their tax-cutting, budget-cutting ideas and promote school choice.

“What motivates these wealthy people from exerting their will in the electoral process varies. They are bipartisan politically. Some are directly connected to the charter school industry. Others have expressed disdain for democratically controlled schools and argue, instead, for school governance to transfer to unelected boards. Some are motivated by their hatred of teachers’ unions. While others believe strongly that public education needs to be opened up to market competition from charters.

“But what billionaire donors all have in common, the report authors write, is their devotion to blaming schools and educators for problems posed by educating low-income children. Instead of using their political donations to advocate for more direct aid to schools serving low-income kids, wealthy donors “distract us from policy changes that would really help children,” the report argues, “such as increasing the equity and adequacy of school funding, reducing class sizes, providing medical care and nutrition for students, and other specific efforts to meet the needs of children and families.”

Their one unifying idea is lower taxes.

His third example is a new book about how predatory elites subvert democracy.

“Rich people are playing a double game,” writes Anand Giridharadas in his new book ‘Winners Take All: The Elite Charade of Changing the World.’ “On one hand, there’s no question they’re giving away more money than has ever been given away in history … But I also argue that we have one of the more predatory elites in history, despite that philanthropy.”

Mitchell Robinson, professor of music education at Michigan State University, was invited to debate the question of charter schools in Michigan.

He wrote this scintillating article.

The counterpoint is linked inside the article.

Professor Robinson writes:

Why is it that every time I chat with a charter school cheerleader and issues of policy (such as privatization, school choice, competition, school closings, vouchers, teacher tenure, funding, regulations, testing) come up, they are unable to muster a defense of those policies?

Instead, they respond with something like, “We probably agree on more than we disagree. Let’s take the snobbery out of our discourse. I doubt combativeness does much to help conversation, let alone students.”

Counter point: Parents don’t consider charter schools political – why do politicians?

Kind of reminds me of conservatives who attacked President Obama for eight years in the most brutal ways, who are now demanding “civility” from liberals.

No. Just no. Public school advocates and charter school boosters don’t agree more than they disagree. We disagree completely on many issues of prime importance. And public school supporters know that many of the problems in the schools, while they may not have all been caused by charters, have been made a whole lot worse by them – and the reform movement leaders who are profiting from charter schools.

“Let’s stop pretending that competition and choice are the solutions to the problems that have been created by competition and choice.”

The most recent charter school booster I spoke to asked me, “So, what’s your solution? It’s obvious you’re not interested in seeking solutions with me, so just tell me.”

OK, here you go ….

Let’s adequately fund all of our schools, and make sure that the school in the inner city is as clean, safe and well-equipped as the one in the wealthiest suburbs.

Let’s stop allowing uncertified, unqualified edu-tourists from groups like Teach for America to be handed the responsibility of educating our children in urban and rural schools, and insist all kids be taught by dedicated, committed professionals, with the appropriate coursework, licenses and certifications.

Let’s demand that all schools offer a rich, engaging curriculum, including music, art and physical education, and let’s stop referring to these subjects as “extras” or “specials” – our children don’t see them as “extras.” For some kids, these are the things that make school worth going to.

Let’s guarantee that every publicly-funded school is held to the same standards, regulations and expectations, that all such schools are required to admit any child who wishes to attend, that “lotteries” and other similar methods of artificially “managing” student enrollment are eliminated, and that every child has access to a high quality public school, regardless of geography or socio-economic status.

Let’s stop pretending that competition and choice are the solutions to the problems that have been created by competition and choice.

Let’s stop trying to fund two parallel, “separate but equal” school systems, and put a moratorium on the creation of new charter schools until all publicly funded schools are “competing” on level playing fields.

And let’s return control for our public schools to where it belongs: elected school boards made up of concerned citizens from the communities in which their schools are located.

Let’s put an end to schools governed by unreliable charter “management companies” and state-appointed “emergency managers” and “CEOs.”

Mercedes Schneider reviews the new NPE report “Hijacked by Billionaires” and discusses her role in its early days.

She adds:

“For those wishing for more insight on following the money behind elections, I can offer another resource. Along with New York professor, researcher, and journalist, Andrea Gabor, Darcie Cimarusti and I will be participating in the following presentation at NPE’s 5th Annual Conference in Indianapolis, Indiana, October 20 – 21, 2018:

“Where Did All of This Money Come From?? Locating and Following the Dark Money Trail

“In this session, presenters will discuss the ways in which they use publicly available sites, including those of secretaries of state (campaign funding) and nonprofit tax form search engines, to discover individuals and organizations seeking to systematically spread ed reform privatization to cities and states across the nation. Audience members will be afforded opportunity to engage in Q&A with speakers and with each other. The intended audience includes individuals seeking practical information on how to discover exactly who is funding local/state elections, ballot initiatives, and pseudo-grassroots education groups.

“Come and learn how to expose the billionaires’ election purchasing.

“The more attention that is brought to this issue, the better.”

This is a world-class scandal. And it is all legal!

Arizona’s State Representative Eddie Farnsworth sold his for-profit charter chain to a non-profit for about $30 Million and will reap millions in profits, then get a management fee to continue to operate them.

“Yet another millionaire is made, thanks to the latest in charter school scheming.

“This time, it’s state Rep. Eddie Farnsworth, who has figured out a way to sell his charter school business – the one built with taxpayer funds – and make millions on the deal and then likely get himself hired to continue running the operation.

“Which now converts to a non-profit and thus will no longer have to pay property or income taxes.

“Sweet plan. Sickeningly so, when you consider that Farnsworth is making his millions off of tax money intended to be used to educate Arizona children.

“Other charter schools are getting rich

“Farnsworth is just the latest operator to use charter schools as his own personal ATM – one that shoots out public funds.

“The Republic’s Craig Harris has spent all year reporting on operators who are getting rich – or at least, making a tidy pile of cash – off publicly funded charter schools, aided by laughable state laws that require hardly any oversight or accountability.

“There’s the Arizona Charter Schools Association’s No. 2 guy, using his position to throw business to a company he co-owns with his wife by giving her the names of students looking for a charter school. She scores a bounty for every student (and the tax dollars that go with that student) she delivers to certain charter schools.

“There’s BASIS Charters Schools founders Michael and Olga Block, who scored $10 million in fees to manage the charter chain of schools last year.

“There’s American Leadership Academy’s founder Glenn Way, who scored at least $18.4 million profit by getting no-bid contracts to build charter schools thanks largely paid for with public money.

“Then there’s Primavera online school, where most of the public funding has gone not to educate students but to elevate the company’s investment portfolio. Damian Creamer, the school’s founder and CEO, last year scored an $8.8 million “shareholder distribution” from the for-profit company that now runs Primavera, according an audit filed with the Arizona State Board for Charter Schools.

“Taxpayers pay twice for the same schools

“Now comes Farnsworth with his Benjamin Franklin Charter School scheme, approved Monday by the Arizona State Board for Charter Schools.

“Under the arrangement, Farnsworth is selling his for-profit four-school operation to a non-profit run by a trio of handpicked pals who will now select someone to run the schools. Farnsworth has applied for the job.

“According to state records, Farnsworth will score at least $11.8 million in profit from the deal. He’ll also keep nearly $3.8 million in “shareholder equity” accumulated over the years since starting the suburban charter school chain in 1995. But Farnsworth declined to disclose the total profit he will make on the deal.

“I make no apologies for being successful,” he told the Arizona State Board for Charter Schools.

“And you wonder why Farnsworth has fought efforts to require better oversight and reform of Arizona’s charter schools?

“The Republic’s Harris reports that when the sale closes, taxpayers will have paid twice for the same schools – once to essentially pay the mortgage on the Farnsworth-owned buildings and now to assume more debt in order to buy the buildings.

“And – by the way – it’s all legal

“The most outrageous part of this outrageous story is that what Farnsworth is doing is apparently legal.”

Craig Harris of the Arizona Republic reported on Farnsworth’s meeting with the state charter board (which includes other charter operators):

“[Farnsworth] told them he was requesting the change in organization to strengthen the finances of the roughly 3,000-student school chain. Farnsworth said the new structure will allow Benjamin Franklin to avoid property taxes and to qualify for federal education funds.

“The Legislature gives charter operators up to $2,000 more per student in state education funding than traditional district schools. That’s because charters cannot access local property taxes for building debt.

“Farnsworth acknowledged he would make a profit on the deal.

“Board member Erik Twist, who runs the Great Hearts charter schools, tried to press Farnsworth on how much he stands to gain. But Chairwoman Kathy Senseman interrupted him and changed the direction of the discussion.

“Farnsworth told the board that if he had wanted to make money, he merely could have sold the schools and cashed out.

“I make no apologies for being successful,” Farnsworth said.

“The transfer plan calls for the new non-profit operator to hire a contractor to manage the schools, an arrangement similar to other charter chains like Basis and American Leadership Academy.

“Records submitted to the Charter Board appeared to show Farnsworth had already been hired to manage the schools, but he said the document was a “draft” intended to give board members an understanding of the management contract.

“That’s what happens at Basis schools, many of which rank atop U.S. News & World Report’s “best schools” lists. A private contracting arrangement has paid about $10 million in “management fees” to a private firm run by Basis founders Olga and Michael Block.

“Farnsworth told the board, however, that he had submitted an application for the contract to the company’s new three-member board, all of whom he recruited and are his friends.

“Rebecca McHood, a Gilbert resident who attended the meeting, called the board vote “crazy.”

“They just gave a charter to a non-profit, but they didn’t vet them,” said McHood, a charter school critic whose relatives attended Farnsworth’s schools. “Here we are paying for his private property with our tax dollars, and then he can sell them.”

“State to pay twice for campuses

“Farnsworth built his school chain over more than two decades ago and became its sole owner in 2017, when he used $2.2 million of Benjamin Franklin funds to buy out his partners, Sharon Clark and Roy L. Perkins Jr., records show.

“That deal also made him sole owner of LBE Investments, a Gilbert company that owns the four campuses and leases them to Benjamin Franklin. Both companies are headquartered at 690 E. Warner Road in Gilbert.

“Once the planned sale to the new non-profit business closes later this year, taxpayers will have paid for the same schools twice. That’s because Benjamin Franklin, for years, has used education funding from the Legislature to make lease payments to LBE Investments, records show.

“(A 2017 audit showed Benjamin Franklin paid $4.9 million a year in lease payments, and that the remaining lease balance for three elementary schools and one high school was $53.9 million.)

“Farnsworth told the Charter Board that an appraisal of the schools is underway, and they will be sold at fair-market value.

“Documents submitted to the Charter Board indicate the plan is to borrow $65.7 million through the Arizona Industrial Development to purchase the schools. A sale for the projected loan amount would result in an $11.8 million profit for Farnsworth by retiring the outstanding lease balance.”

Why do Arizona taxpayers acquiesce to this blatant Profiteering with money intended to educate children?

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Students protested at Sacramento Charter High School, operated by St. Hope’s Charter chain, led by former mayor Kevin Johnson and his wife Michelle Rhee. They were angry about Teacher firings over the summer and arbitrary rules, like requiring students to wear long pants when the temperature reached 100.

Charter operators can’t push high school students around as easily as little kids.

Here’s some history about Sacramento Charter High School.

“Founded in 1856, Sacramento High School moved several times. In 1922, construction began at its current location on 34th Street. It opened at this location in 1924 and continuously served the growing neighborhoods of Downtown Sacramento, Midtown, East Sacramento, River Park, College Greens, Tahoe Park and Oak Park until 2003.

“The school was closed by the SCUSD School Board in June 2003, over the objections of many students, parents and teachers. The new charter high school, which opened in September 2003, kept the same school colors, purple and white, and the dragon mascot but not the Visual and Performing Arts Center (VAPAC) which had been one of the school’s unique features for many years. Sacramento Charter High School is governed by a private Board of Directors from St. Hope Public Schools.”