Archives for category: Corporate Reformers

Daniel Loeb, billionaire chair of the board of Success Academy Charter Schools, slandered State Senator Andrea Stewart-Cousins, an African-American woman who is the Democratic leader of the State Senate.

The backstory is that Cuomo has collaborated with a group of breakaway Democrats who side with the Republicans in the State Senate. Although Democrats have the majority in the Senate at 32-31, the so-called Independent Democrats vote with the Republicans, assuring that Republicans continue to control the Senate even though they are in the minority. Charter supporters, like Daniel Loeb, know that the interests of both charters and the financial community are safe with the Republicans. If Democrats had enough votes to control the State Senate, Senator Stewart-Cousins would be majority leader. Cuomo likes having Republicans in control because it allows him to be the broker between the Assembly and the Senate. Cuomo prides himself on his fiscal conservatism, so he is happy to have Republicans running the upper chamber of the legislature. It also guarantees that Cuomo won’t be forced to veto progressive legislation.

In a private meeting with Democratic members of the State Senate, trying for unity, Cuomo noted that most of the Senate members were from New York City, and that the leader of the Independent Democrats, Jeffrey Klein (whose district is mainly in the Bronx, with a sliver in suburban Westchester), had a better understanding of the suburbs than the city representatives. At that point, Senator Stewart-Cousins objected and pointed out that she represents the suburbs of Westchester.

After this story appeared, Daniel Loeb hurled a slur at Senator Stewart-Cousins on Facebook.

The hedge fund manager Daniel S. Loeb, a prominent supporter of charter schools and a major financial backer of Gov. Andrew M. Cuomo and congressional Republicans, accused the African-American woman who leads the Democrats in the New York State Senate of having done “more damage to people of color than anyone who has ever donned a hood.”

Mr. Loeb made the reference, apparently to the Ku Klux Klan, in a posting on Facebook in response to an article in The New York Times this week in which the Democratic leader, Senator Andrea Stewart-Cousins, confronted Mr. Cuomo about prejudging her based upon race and gender.

In a private meeting last month, The Times reported, Ms. Stewart-Cousins said to Mr. Cuomo during a debate over who best understands suburban voters: “You look at me, Mr. Governor, but you don’t see me. You see my black skin and a woman, but you don’t realize I am a suburban legislator.”

Mr. Loeb weighed in on behalf of Senator Jeffrey D. Klein of the Bronx, the leader of a group of Democrats that has split from Ms. Stewart-Cousins.

“Thank God for Jeff Klein and those who stand for educational choice and support Charter funding that leads to economic mobility and opportunity for poor knack kids,” Mr. Loeb wrote, with “knack” apparently a typographical error for “black.” “Meanwhile hypocrites like Stewart-Cousins who pay fealty to powerful union thugs and bosses do more damage to people of color than anyone who has ever donned a hood.”

Mr. Klein leads a group of eight Democrats who in 2011 broke away from the main Democratic conference, led by Ms. Stewart-Cousins. Mr. Klein’s group, the Independent Democratic Conference, has in the past sided with the Republicans in the Senate to keep Ms. Stewart-Cousins out of the powerful post of majority leader.

Daniel Loeb is a major player in the charter world because of his chairmanship of Success Academy. He is also a major player in politics because he is a big donor. When Ivanka Trump visited New York City, Loeb escorted her on a tour of one of Eva Moskowitz’s Success Academy charter schools.

Mr. Loeb and his wife have donated more than $170,000 to Mr. Cuomo in recent years, state records show. He has also supported Republicans, with contributions including $500,000 to a super PAC that supported Jeb Bush in 2015, $150,000 to the Republican National Committee that year and $700,000 to a super PAC supporting House Republicans in 2016.

Carol Burris wrote recently that Loeb had given even more money to Cuomo than the Times reported:

Success Academy Chairman Daniel Loeb, founder and chief executive of Third Rock Capital, and his wife, have directly contributed over $133,000 to Cuomo. Since 2015, Loeb has added $300,000 to Moskowitz’s PAC, and another $270,000 to other PACs that support Cuomo. That’s more than $700,000.

Daniel Loeb shows the true colors of the charter industry in New York City. He doesn’t pretend to be a liberal. He has the nerve to call an African-American legislator “worse” than the Ku Klux Klan. What do you call a man like this? Indecent? Shameless? Arrogant?

For many reasons, I place billionaire Daniel S. Loeb on this blog’s Wall of Shame.

Alan Singer pulls together the threads of charter school corruption across several states in this post. The corruption is pay-to-play. Give money to a politician and turn him or her into your advocate. Florida presents a different twist on the story: charter owners and employees and family members are elected legislators who shamelessly vote to enrich themselves. In Ohio, charter owners contribute to legislators who then turn on the money spigot and shower their benefactors with riches. In New York, Governor Cuomo accepts millions from billionaires who love entrepreneurial schools and hate public schools–and Voila!, Cuomo becomes a charter champion.

“In Arizona charter schools routinely receive exemptions from state oversight requirements, despite a history of misusing tax dollars. They also receive over 25% of state education funds, although they only enroll 15% of Arizona’s school age students. The right-wing Republican governor of Arizona was accused by the even further right-wing elected Superintendent of Arizona schools of establishing a “shadow faction of charter school operators” committed to “moving funds from traditional public schools to charter schools.”

“The reasons for the lack of accountability and the disproportionate state funding are examined in a report by Arizonians for Charter School Accountability. Among other things, they found that Benjamin Franklin, a for-profit charter school, is owned by Arizona State Representative Eddie Farnsworth (R). In 2016, the charter school spent $155,106 more on facilities than on classroom instruction. It leases its schools from LBE Investments, a for-profit real estate company also owned by Farnsworth.

“Arizona has a state board that grants charter status to “qualifying applicants” and is supposed to “oversee charter schools.” The President of the board is a political lobbyist who defines her role as promoting school “choice” and “sponsoring charter schools,” not regulating them. The Board Vice-President is founder of a charter high school. Other members include the operator of a charter school, a charter school teacher, a lawyer for charter schools, a building company CEO who also serves on the Board of Directors for the local Teach for America chapter, and the CEO of a charter school network.”

For the links, open the article.

In Atlanta, teachers were sentenced to prison under the RICO statute (racketeering) for cheating on tests and are out on appeal.

When, if ever, will public officials round up the criminals who are engaged in buying influence for the enrichment of charter schools? In too many states, the public officials who should enforce the law are charter operators or receive millions from charter operators. The charter industry starts to look like the Tweed Ring. Will it clean up its own act or is public corruption now woven into its fabric?

Arthur Goldstein gives a close reading of Eliza Shapiro’s article about “why New York City is no longer the national leader of reform” in education.

When he read it, he felt heartened by the thought that “reform” was on the ropes, withering on the vine, falling apart, use whatever metaphor you want. Going, going, gone.

And yet he knows how demoralized the teachers in his building are.

He shows the error of Shapiro’s framing of the teacher tenure issue. “Reform” apparently means the utter elimination of any job rights for teachers. “Reformers” want to be able to fire any teacher at any time, without cause, just because they want to. Reformers agree that teachers should have no rights at all, and they wonder why there is a growing teacher shortage.

He writes:

Reforminess is something Trump is strong on, because he doesn’t believe in protecting the rights of working people. With him, it’s all about profit, hence Betsy DeVos, who’s pretty much decimated public education in Michigan. They can wrap themselves in the flag all they want, and claim to care about the children. Those of us who wake up every morning to serve those children know better.

And then there is Andrew Cuomo, who first ran on a platform of going after unions, who appeared at Moskowitz rallies and frothed at the mouth over the possibility of firing as many teachers as possible. Cuomo could not possibly anticipate that parents would become informed and fight back against the nonsense that is Common Core. He could not anticipate that parents would boycott his tests in droves.

What reformies failed to count on was the opportunism of Andrew Cuomo. As a man with no moral center whatsoever, he is driven by rampant ambition. This year, he watched Donald Trump win the presidency against neoliberal Hillary Clinton. Cuomo decided to position himself as Bernie Sanders Lite and pushed a program to give free college tuition to New Yorkers (albeit with a whole lot of restrictions).

Cuomo is now best buds with UFT, judging from what I hear at Delegate Assemblies. While I don’t personally trust the man as far as I can throw him, I’m happy if that works to help working teachers and other working people. So what is education “reform,” exactly?

As far as I can tell, it’s piling on, How miserable can we make working teachers? How can we arbitrarily and capriciously fire them? How can we give them as few options as possible, and as little voice as possible?

It’s ironic. The MORE [MORE is a progressive caucus within the UFT] motto is, “Our teaching conditions are students’ learning conditions.” I agree with that. Take it a step further, and our teaching conditions are our students’ future working conditions. When we fight for improvement of our working conditions, we are fighting for the future of our students as well.

Two of my former students teach in my school. They are the first of their families to be college educated, and the first of their families to get middle class jobs. I will fight for them, and for my other students to have even more opportunity. Betsy DeVos and the reformies, on the other hand, can fight to maximize profits for fraudulent cyber-charter owners and all the other opportunist sleazebags they represent so well.

Eliza Shapiro writes about New York City for Politico.

She wrote a somewhat wistful article about why New York City was no longer “the nation’s education reform capital.”

For one brief shining moment, she suggests, New York City had the chance to expand its privately managed charter schools and to break the grip of the teachers’ union. It came “this close” to evaluating teachers by test scores. It was near to a point where it might have eliminated tenure and seniority.

All of this is supposedly reform?

Well, as she well knows, this is the agenda of hedge fund managers and others on Wall Street. This is the agenda of the billionaires who never set foot in a public school and whose children will never go to public school.

What stopped the headlong rush to crush public schools and teachers’ unions?

Parents. The New York State Allies for Public Education, a coalition of 50 parent and educator groups (not the union), that organized the mass opt outs from testing.

When twenty percent of the parents in the state with children in grades 3-8 refused to allow their children to take the tests, Governor Cuomo stopped in his tracks. He had been gung-ho to evaluate teachers by student test scores; he boldly claimed to be the state’s charter school champion (even though only 3% of the state’s children were enrolled in charter schools). But when the opt out started, he realized he had a political problem. He hired Jere Hochman, the thoughtful superintendent of the Bedford Central public schools, to advise him, and for the first time, he had an experienced educator calming his passions. He formed a commission and grew silent.

Sheri Lederman, a much-loved teacher in the Great Neck public schools, challenged her evaluation, and the judge agreed with her that it was arbitrary and capricious.

The American Statistical Association said that the test-based evaluations in which Cuomo put so much stock were inappropriate for evaluating individual teachers.

Shapiro seems unaware of most of these developments. Her framework is: charter supporters=good; unions=bad; firing teachers at will without cause=good; tenure=bad.

She insists on seeing the New York City story through the framework of “reformers vs. union.” It would have made more sense to look at the NYC story as “parents (in New York State, not New York City) vs. high-stakes testing. Research vs. Cuomo.

Now that the reform laurels are no longer in New York City, she suggests that readers look to Louisiana and D.C. instead, both of which are among the lowest performing jurisdictions in the nation.

I want to suggest to Eliza Shapiro that she read my last two books: The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education (rev., 2016); and Reign of Error: The Hoax of the Privatization Movement and the Danger to America’s Public Schools. She should read Mercedes Schneider on John White in Louisiana and John Merrow on the subject of the D.C. “miracle” that wasn’t. (John Merrow and Mary Levy will have an article in the next issue of the Washington Monthly that takes apart the D.C. “miracle.” but in the meanwhile Shapiro can read this post that Merrow wrote: https://themerrowreport.com/2017/08/08/touching-the-elephant/comment-page-1/

If she contacts me, I will send her both books at my expense. If she reads them, she will be a better education writer. Certainly better informed.

Denis Smith once worked in the charter office of the Ohio State Department of Education. Now that he is retired, he writes often about the scams and frauds in Ohio’s charter sector.

In this article, he points out that political contributions by its founder William Lager have greased the way for ECOT to claim hundreds of millions of dollars of taxpayer money for a very low-performing cyber-charter.

The good news that he brings is that the Columbus Dispatch, an influential newspaper in the state, is all over the charter scams and is acting as a guardian of the public interest. Some Republicans even felt impelled to return charter money because it has become “radioactive.”

Smith says he once took a series of proposals for charter reform to a key legislator and the legislator was not interested.

That one proposal he thought would never happen was an outright ban on political contributions by charter schools and their management companies to state political parties and candidates, as they use public funds to craft state law to their liking, including more than 150 exemptions from the educational requirements provided in Section 3314 of the Ohio Revised Code.

Unless we’re terribly naïve about the corrupt, indeed corrosive effects of money on the legislature, the great Swedish pop group Abba said it best: Money, money, money/Always sunny/In the rich man’s world.

But with ECOT in seeming eclipse, perhaps things right now aren’t sunny in that rich man’s charter world. Indeed, the upcoming solar eclipse might in some way serve as a metaphor for the twilight of ECOT, and, hopefully, the mysterious, gloomy, overcast charterworld, where for nearly 20 years, anything goes.

Could it be that the corruption in the charter industry in Ohio has reached a tipping point?

Has ECOT finally gone too far?

This is a very positive development, if true.

The NAACP bravely spoke out in favor of regulating charter schools to make them accountable, transparent, and subject to the same standards as public schools.

Most people would say that the NAACP’s concerns and recommendations are reasonable.

But supporters of charter schools are outraged and hysterical.

The Center for Education Reform, which has advocated for charters for more than 20 years, astonishingly called the NAACP “opportunity’s opponent.” This is a breathtakingly insulting slur coming from a conservative organization that has long been hostile to public education.

CER provides a link to other rightwing organizations that oppose the NAACP’s criticism of public schools.

Who cares more about black children?

The NAACP or the Heritage Foundation?

The NAACP or CATO?

The NAACP or Betsy DeVos?

The NAACP or hedge fund managers?

The NAACP or the Walton Family Foundation?

The NAACP or the Center for Education Reform?

The NAACP or the Thomas B. Fordham Institute?

The NAACP or the Koch brothers?

Wendy Lecker is a civil rights lawyer who writes frequently about education issues.

In this article, published in the Stamford (Ct.) Advocate, Lecker describes the imposed reforms that breed resentment and failure, not better education.

Corporate reform has been a disaster. Its day of reckoning cannot be indefinitely postponed. The corporate reformers fail and fail and fail, and continue to push their failed ideas.

Connecticut is a state that experienced major corruption in the charter industry. It is also a state with excellent public schools. Why not use the depth of knowledge and experience to help the neediest districts instead of parceling students out to private management?

Lecker writes:

The State Board of Education’s recent rubber-stamping of Capital Prep Harbor charter school’s expansion in Bridgeport is yet another example of a common theme in education reform: trampling community will. Capital Prep, which opened in 2015 over the objection the Bridgeport’s Board of education and community members, does not reflect the community. The school serves no English Language Learners, though 15 percent of Bridgeport’s students are ELL. The school has a 37 percent out-of-school suspension rate, over twice the rate in Bridgeport’s public schools.

Bridgeport’s Board of Education unanimously opposed the school’s expansion. Bridgeport already must pay several million dollars annually to charters. As the superintendent testified, the expansion will drain an additional $200,000 from Bridgeport’s budget; money it cannot afford. Last year, owing to decreased state funding, Bridgeport had to fill a $16 million budget gap. The state board ignored Bridgeport’s needs.

As recent education reform failures demonstrate, robbing local districts of decision-making power over education policies is a recipe for disaster. By contrast, reforms that emanate from the school districts themselves have shown success.

The ultimate in top-down reform for struggling districts is state takeover. Two much-hyped state takeovers occurred in Tennessee — the Achievement School District (“ASD”), and Detroit — the Educational Achievement Authority (“EAA”). After years of consistent failure, both recently closed, returning control of schools to the districts.

ASD and EAA employed reform’s “greatest hits.” Outside managers were hired to run the districts. Charter schools proliferated. They used ill-trained Teach for America recruits.

EAA also employed “student-centered” “personalized” computer-based learning, which caused 10,000 struggling students to fall further behind academically.

Both “reform districts” were plagued with high teacher turnover, a major factor in their failures, and rampant financial mismanagement.

State takeover made things worse for students in the ASD and EAA. In 2015, only one fourth-grader in Detroit’s EAA passed the state math test. After years of EAA control, only three of the 15 EAA schools moved off the list of the lowest 5 percent in the state. In Tennessee, the results were similar, with the ASD’s charter schools performing the worst.

She continues:

At the same time, officials ignore the slow and steady progress made by districts that engage in home-grown educational improvement. Long Beach, California, and Union City, New Jersey, are good examples. Both districts are diverse and majority economically disadvantaged. Yet both have been able to sustain improvement by focusing on the unique needs and strengths of their communities…

In contrast to failed state takeovers, that leave children and communities behind in their wake, district-led improvement methods have staying power precisely because they use the needs of their children and communities as their starting point. It is a shame that Connecticut officials ignore our own local, well-informed voices.

Peter Greene identifies the dirty secret of the charter industry. Two words. Real estate.

In Ohio, a charter lobbyist wrote the charter law for the state. When a charter operator insisted that he owned everything the charter bought with public money, the courts upheld him. It was in the law.

In Pennsylvania, charter schools own the property where the charter school is housed, and they charge rent. They charge rents above the market rate. The state doesn’t ask questions. The state doesn’t even notice that the charter operator owns the property and pays himself rent.

Greene offers a few examples from across the nation, and he didn’t even include Florida, where the charter scams are commonplace:

Carl Paladino, the notorious bad boy of the Buffalo school board, has made a mint in charter-related real estate deals. Not only does Paladino build the charters and lease them, but he builds the new apartment buildings near the shiny new school– a one-man gentrification operation. And he sits on the public school board, where he can vote to approve and support the growth of charters.

That’s not even the most astonishing sort of charter real estate scam. A 2015 report from the National Education Policy Center outlined what might be the worst. Take a public school building, built and paid for with public tax dollars. That building is purchased by a charter school, which is using public tax dollars. At the end of this, you’ve got a building that the public has paid for twice– but does not now own.

In February of this year, researchers Preston Green, Bruce Baker and Joseph Oluwole dropped the provocative notion that charter schools may be the new Enron. It’s a lot to take in, but Steven Rosenfeld pulled out five takeaways for Alternet, if you’d like a quicker look. But just some little factoids give you a taste. For instance, Imagine Schools take 40% of the money they collect from taxpayers and put that right back into lease agreements. In Los Angeles, owners of a private school leased room on their campus for a charter school that they were also involved in running– then jacked that rent up astronomically.

His article has links. Follow them. This is the most underreported story of the charter world: The big money is in the real estate, not necessarily the students.

A school should be the anchor of its community. It should be a place where children and families feel welcome, a place where they learn to work and engage with others who are different from themselves but share common concerns. A public school is a mainstay of our democracy, because for many people, it is the first place where they have a chance to learn and work with others to achieve their goals for their community.

But read this story, and what do you see? Two charter schools were sold to an eager investor.

Colliers International Education Services Group brokered the sale of two Florida charter schools totaling 134,000 square feet. ESJ Capital Partners and MG3 Developer Group sold the properties for $30.5 million to AEP Charter KCC II LLC and AEP Charter Renaissance LLC, entities affiliated with Portland-based Charter School Capital, according to public records.

The assets included in the transaction are the 105,002-square-foot Renaissance Charter School at University located at 8399 N. University Drive in Tamarac, Fla., and the 28,998-square-foot Kid’s Community College Southeast Riverview at 11515 and 11519 McMullen Road in Riverview, Fla. Charter School Capital’s facilities arm, American Education Properties, paid $22.3 million for the Renaissance property and $8.2 million for the Kid’s Community College asset.

SKILLED MANAGEMENT ORGANIZATIONS

Renaissance Charter School at University opened in 2012 and will serve 1,426 students in the 2017-2018 school year. Managed by Charter Schools USA, the building was built in 1982 and underwent renovations in 2015. Kid’s Community College Southeast Riverview opened in 2003 and is slated to serve 397 students in the 2017-2018 school year. It is independently operated by Kid’s Community College, a charter management organization that manages a total of eight charter schools serving Pre-K through high school.

As part of the acquisition, Charter School Capital assumed the existing 20-year leases on both schools, which expire in 2032 and 2033, respectively. Charter schools have enjoyed rising popularity in the state since their inception in 1996. The deal is indicative of the continued interest in educational-based real estate.

“We enjoyed working once again with ESJ and MG3 to arrive at terms that will give the charter school operators the peace of mind that comes in knowing their facilities are securely theirs to operate for years to come,” said Stuart Ellis, president & CEO of Charter School Capital, in a prepared statement.

Todd Noel, executive vice president & national director of the Education Services Group based out of Phoenix, along with Achikam Yogev, senior vice president based in South Florida, represented the seller in the transaction. ESJ Capital Partners is the manager of ESJ Real Estate Fund LLC and focuses on investing in charter schools and medical office buildings. Charter School Capital provides growth capital and facilities financing services to charter schools.

GROWING INVESTOR INTEREST
“Because of the complexities, charter schools have traditionally sold individually and rarely as a portfolio, but the continued interest in this asset class has paved the way for more creative strategies and more complex deals being done on behalf of our clients,” stated Yogev, in prepared remarks.

This isn’t the first deal between ESJ Capital Partners and Charter School Capital. The Aventura-based investment advisor sold a portfolio of five Florida charter schools in November 2016 to Charter School Capital in a $72 million transaction.

No surprise, it happened in Florida, where charter schools open and close with unsurprising rapidity. They are not the anchor of their community. They are exemplars of commerce and consumerism.

My reaction on reading this story: revulsion. It is stories like this that persuades me that the very concept of charter schools is wrong, especially when they operate for-profit and when they are part of a corporate chain. They are not about education; they are not about learning; they are not about children; they are about money and profit.

Allowing the education of American children to be distorted by this greedy industry is a blight on American society.

A reader sent a letter signed by Governor Rick Snyder and the State Superintendent Brian Whiston lamenting the poor performance of Michigan’s schools on the National Assessment of Educational Progress.

Please note that the Governor makes no reference to the failure of the state’s obsession with school choice over the past 15 years.

Nor does he say anything about the proliferation of charters, most of which operate for-profit, and most of which perform worse than the public schools.

Nor does he acknowledge that the state’s education agenda is a wholly owned enterprise of the DeVos family.

Nor does he mention the disaster of the Educational Achievement Authority, into which the state of Michigan poured millions of dollars and overpaid administrators sent by the Broad Academy, only to see the EAA collapse in failure.

This is a politician who does not know the meaning of the word accountability. He is accountable for nothing and responsible for nothing. He should be held accountable not only for the Flint Water Crisis but for the dismantling of what was once a great public school system in the state of Michigan.

For shame, Governor Snyder.

Sad. Very sad.