Archives for category: Corruption

The charter industry in Los Angeles is worried.

Having spent millions to grab a 4-3 edge on the LAUSD board, what happens if Ref has to resign?

Not only is their slim control in jeopardy, but they were hoping to get less oversight, less accountability, more autonomy from the friendly board.

http://www.latimes.com/local/lanow/la-me-edu-ref-rodriguez-charter-politics-20171018-story.html

At first their friend Peter Cunningham insisted in an op-ed in the L.A. Times that Ref’s charges money laundering of campaign cash were a “rookie” mistake.

But now that his own charter chain has questioned the whereabouts of nearly $300,000, this may be a bad time to tell the Auditors to go away.

If the charter industry had any sense of integrity, they would insist on annual audits of every charter.

What do they have to hide?

The invaluable Nonprofit Quarterly asks whether Harvey Weinstein cynically used philanthropy to cloak his unconscionable actions.

We might ask the same questions of many of the heartless corporations and individuals now poring hundreds of millions into charter schools, simultaneously destroying democratic public schools.

What about the Waltons? They claim they love poor children and children of color, so they spend at least $200 Million every year to dismantle their community schools and replace them with privately managed charters.

They break the unions that assure the parents of these children a living wage. They refuse to pay their own 1 Million plus workers a living wage.

If they really cared about the children, why don’t they care about the conditions in which they live?

This is what NPQ calls depravity.

The story includes this quote:

“Jelani Cobb, a staff writer at the New Yorker, offers us something new to consider about this ugly story. “The great mystery of evil is not that it persists but, rather, that so many of its practitioners wish to do so while being thought of as saints.” As the idiom “a wolf in sheep’s clothing” warns, beware of the champions of progressive causes with whom contact is dangerous. According to countless reports, Weinstein was apparently a wolf in wolf’s clothing.”

How many corporate reformers are impoverishing the people of Puerto Rico by demanding that PR pays 100% on the bonds they scooped up at a deep discount? Their advice to PR: pay us back and close schools and hospitals and all other public services. Maybe they should send in KIPP, Eva, Uncommon, and Achievement First. Oops. You can’t get blood from a stone. They may have to write off their losses on their tax returns.

Call them what they are: predators.

Jeff Bryant, writing for the Education Opportunity Network, analyzes the U.S. Department of Education’s recent award of $253 Million to the Failing Charter Industry. He is especially appalled by the funding of charters in New Mexico, whose state auditor has identified numerous frauds in the charter sector, and whose public schools are shamefully underfunded.

He writes:

“Previous targets for federal charter grants have resembled a “black hole” for taxpayer money with little tracking and accountability for how funds have been spent spent. In the past 26 years, the federal government has sent over $4 billion to charters, with the money often going to “ghost schools” that never opened or quickly failed.

“In 2015, charter skeptics denounced the stunning selection of Ohio for a $71 million federal chart grant, despite the state’s charter school program being one of the most reviled and ridiculed in the nation.

“This year’s list of state recipients raises eyebrows as well.

“One of the larger grants is going to Indiana, whose charter schools generally underperform the public schools in the state. Nearly half of the Hoosier state’s charters receive poor or failing grades, and the state recently closed one of its online charter schools after six straight years of failure.

“Another state recipient, Mississippi, won a federal grant that was curiously timed to coincide with the state’s decision, pending the governor’s approval, to take over the Jackson school district and likely hand control of the schools to a charter management group.”

(Coincidentally, Stephen Dyer just posted about Ohio’s scandal-plagued charter sector. He wrote that nearly one-third of the charters that received federal funding never opened or closed right after they got the money, I.e., they were “ghost schools.”)

Worst of all, writes Bryant, is the $22.5 Million that will be sent to New Mexico, which has high child poverty and perennially underfunded public schools, as well as a low-performing charter sector.

What possible reason is there to fund a parallel school system when the state refuses to fund its public schools?

“According to a state-based child advocacy group, per-pupil spending in the state is 7 percent lower in 2017 than it was in 2008. New Mexico is also “one of 19 states” that cut general aid for schools in 2017, with spending falling 1.7 percent. “Only seven states made deeper cuts than New Mexico.”

“New Mexico’s school funding situation has grown so dire, bond rating agency Moody’s Investors Service recently reduced the credit outlook for two-thirds of the school districts in the state, and parent and advocacy groups have sued the state for failing to meet constitutional obligations to provide education opportunities to all students.

“To fill a deficit gap in the state’s most recent budget, Republican Governor Susana Martinez tapped $46 million in local school district reserves while rejecting any proposed tax increases.

“Given the state’s grim education funding situation, it would seem foolhardy to ramp up a parallel system of charter schools that further stretches education dollars, but New Mexico has doubled-down on the charter money drain by tilting spending advantages to the sector.”

To make matters worse, charter schools are funded at a higher level than public schools, and the state’s three online charters operate for profit. Despite their funding advantage, the charters do not perform as well as public schools. There is seldom any penalty for failure.

The state auditor in New Mexico has called attention to frauds and scams that result from lack of oversight in the charter industry.

So the U.S. Department of Education under Betsy DeVos is now in the business of funding failure. Quality doesn’t matter. Ethics don’t matter. Undermining the educational opportunity of the majority of children doesn’t matter. For sure, money matters, but only when it is spent for privatization.

A few pundits predicted that DeVos would be unable to inflict harm on the nation’s public schools. They were wrong.

(This post has been updated to add in the cost of Secretary Price’s travel on military jets: $500,000.)

As a member of Congress, Tom Price was a fiscal hawk. He begrudged every penny spent on the needs of poor people.

He also got into trouble for investing in health stocks while he was head of a committee that affected the price of health stocks. He should never have been confirmed, in light of his self-dealing and conflicts of interest.

As a cabinet secretary, he has hired private planes instead of flying on commercial flights. He has chartered jets to his vacation home and chartered jets to visit family.

He spent at least $400,000 on private charters. He has piously promised to reimburse the taxpayers only $52,000. Why only $52,000? Rachel Maddow explained tonight that he was repaying the cost of his “seat,” not the cost of the entire plane that he chartered. This is nonsense.

He also rode on military jets for his flights overseas, at a cost of $500,000 to taxpayers. In the past, the Secretary of Health and Human Services flew commercial jets. It is very expensive to fly in military jets. At the same time that he squandered taxpayer dollars on his travel, he was slashing jobs at HHS and pushing for legislation that would take health care away from millions of people.

This is corrupt.

Speak of hypocrisy, this is what his spokesperson said to cover his tracks:

“Last week, Price’s office explained that he had turned to chartered jets when needed for the most efficient and effective travel in managing his department and maintaining contact with the public.

“This is Secretary Price, getting outside of D.C., making sure he is connected with the real American people,” said Charmaine Yoest, his assistant secretary for public affairs.”

The “real American people” are found in his vacation home and his son’s home.

This phony should be fired.

We know the Trump administration gutted the Office of Government Ethics. Other cabinet members have also chartered private jets while firing employees.

Say this for DeVos. She flies in her own private jet, and requires only a security detail that costs taxpayers $1 million a month.

Grifters.

A few days ago, Peter Cunningham of Education Post (and former communications director for Arne Duncan and reliable critic of public schools and unions) wrote an article defending Ref Rodriguez, the then-president of the Los Angeles Unified School District Board, who has been indicted on multiple counts for money laundering and campaign finance fraud. Cunningham said that Ref was being treated harshly because of his prominence and that he had simply made “a rookie mistake.”

Steve Lopez, a regular columnist for the Los Angeles Times, refutes Cunningham’s claims in this article.

He also answers a question that bothered me about Ref’s indictment. Why is it illegal to give money to your own campaign? As Lopez explains it, it is not illegal to give money to your own campaign, but it is illegal to pretend that you received that money from other people and then repay them for pretending to give you money.

Lopez writes:

The chief of a nonprofit that advocates for charter schools — which Rodriguez has championed — argued in a Times op-ed that the charges against Rodriguez are overblown and he should stay on the board.

“If the allegations are true, Rodriguez clearly made a rookie mistake,” said the op-ed, which called Rodriguez a humble, sincere and polite political novice who should pay fines if he broke the law but not lose his job.

A rookie mistake? Here’s my take:

If you field a double off the wall in the right field corner, wildly fling the ball over the head of the cutoff man and give up an extra base, that’s a rookie mistake.

If you pull someone over on your first night as a cop, forget to put your patrol car in park and then watch it roll over your foot as you’re writing a ticket, that’s a rookie mistake.

Rodriguez is charged with taking $26,000 of his own money and redistributing it through an intermediary to 25 people, mostly friends and relatives — who donated $24,250 to his 2015 campaign for school board.

What’s that smell like to you?

A rookie mistake, or a premeditated strategy to work around campaign law?

The L.A. district attorney’s office, which has filed 25 misdemeanor charges along with the three felonies, seems to think Rodriguez pulled off a money-laundering scheme.

And here’s the most interesting thing about the case:

If Rodriguez had donated the $26,000 to himself, that would have been legal because there’s no limit on how much you can dump into your own campaign.

So this leaves the jaded among us to wonder if Rodriguez —who has admitted to nothing, and whose lawyer did not return my call — wanted it to appear as if he had support from ordinary people, rather than just the charter-advocating high-rollers who bankrolled his campaign.

If so, here are some pointers for future reference:

Tip 1: If you want to make it look as if you’re a strong enough candidate to attract donations from working people, try to find more working stiffs who aren’t relatives or employees at the charter school organization you founded.

Tip 2. Janitors and tutors do not typically donate between $775 and $1,100 to school board candidates, and when they do, it raises suspicion.

Tip 3. Never, ever, drag your own mother into a harebrained, bone-head scheme, even if your name is Soprano. There is no way to reverse that kind of bad karma.

As prosecutors lay it out, Rodriguez cashed out a business investment and wrote the $26,000 check to a female cousin, who has also been criminally charged. The cousin — an administrator at the charter school Rodriguez started — is suspected of depositing the money into a bank account under the names of Rodriguez’s parents. Prosecutors say Rodriguez’s mother then signed 16 checks for friends and family members who were listed as donors to her son’s campaign.

I know, innocent until proven guilty. But this sounds like one hell of a rookie “mistake.” And if you’re someone who frets about awkward conversation at family gatherings during the holidays, just thank the holy gobbler you’re not spending Thanksgiving with the Rodriguez clan this year.

This was a fairly sophisticated strategy on Ref’s part, and he faces a criminal indictment.

He stepped aside as board president, but did not leave the board. So many millions were spent to get him elected, and he does not want to disappoint his backers, who funded one of the dirtiest campaigns ever seen in Los Angeles (his ads mocked his highly qualified opponent, Bennett Kayser, for his age and disability). He wanted to make sure the pro-charter majority maintained its control. He knew for two years that he was under criminal investigation, but kept this to himself.

Now, investigators and journalists will look closer at Ref’s finances. Where did the $26,000 come from? It is not only “the union” that wants to know. It is anyone who cares about ethics in government.

Stepping aside and keeping his seat is wrong. He should resign from his position from the board at once.

Are the legislators of Ohio insane? Is the Ohio Department of Education totally corrupt?

Those are some of the questions that come to mind on reading that the state has agreed to designate the Electronic Classroom of Tomorrow as a recipient of funding for dropout prevention and recovery center.

ECOT certainly knows a lot about dropouts.

It produces more dropouts than any other “school” in the state of Ohio, more than any other school in the nation.

As Stephen Dyer shows, ECOT performs worse than any other district in the state:

Now that it appears the Electronic Classroom of Tomorrow — the state’s largest online school and the nation’s largest producer of high school dropouts — will be classified as a dropout recovery and prevention school (without a hint of irony) by the Ohio Department of Education, it is useful to look at just how dreadful ECOT’s performance has been.

In the 2016-2017 school year, ECOT received $103 million in state money meant for kids in Ohio school districts, but which went instead to ECOT. Not a single penny came from a district that performed worse in more report card categories than ECOT. Only $2,204 of the $103 million came from a district whose performance was the same.

But here’s the amazing stat: More than $25 million of that $103 million came from districts that outperformed ECOT in EVERY SINGLE COMPARABLE REPORT CARD CATEGORY!

That’s right. One out of every 4 dollars going to ECOT comes from a district that in every way outperforms ECOT — the largest single chunk of state funding transfers to the school.

Naturally, the inquiring mind wonders who made this decision. It didn’t just happen. Someone or several someones just sat down and said, how can we shovel more millions of taxpayer dollars to the worst performing virtual charter school in the state? in the nation?

Were they incompetent or corrupt? I leave that to you to decide.

This is an alarming article about the invasion of corporate and philanthropic money into higher education, not to underwrite the purposes of higher education, but to buy control of policy and thinking.

The most obvious example is the millions donated by Charles Koch to spread the gospel of free markets and individual responsibility.

All told, the Charles Koch Foundation has invested some $200 million in higher education activities since 1980, with more than $140 million of that money allocated since 2005, funding over fifty free-market research centers and institutes at universities. And these beachheads of private campus cash have become lush islands of ideological purity by partnering with like-minded philanthropists such as Papa John’s CEO John Schnatter and the recently deceased Philadelphia Flyers owner Ed Snider.

But all this high-profile private funding has also provoked a backlash. Groups such as Kochwatch and UnKoch My Campus have galvanized public attention and even sparked protests at campuses nationwide. So the Kochtopus has rebranded. Starting in 2014, Charles Koch introduced the “Well-Being Initiative” with a blog post under his signature and a conference at the Charles Koch Institute in Washington, D.C.

One speaker was Koch beneficiary James Otteson, a philosopher and executive director of the BB&T Center for the Study of Capitalism. BB&T is a bank holding company formerly chaired by a man named John Allison, who retired in 2010 and now serves as “executive in residence” at the center. He was also president and CEO of the libertarian Cato Institute. In 2011 he caused a stir by promising through the BB&T Charitable Foundation to provide grants as high as $2 million to schools that established courses on the first principles of modern capitalism with Ayn Rand’s Atlas Shrugged as required reading. That novel, of courses, preaches naked self-interest as a virtue. At conferences like these, however, the candid celebration of capitalist predation doesn’t always align so cleanly with the institutional interests of the Koch Foundation. So the focus has been rejiggered to explore “what enables individuals and societies to flourish and how to help people improve their lives and communities.”

Koch is far from alone. Read the article and see how many other billionaires have stepped into the game to buy scholars and whole departments.

This is the auctioning off of academic freedom and intellectual pursuit. It is a scandal. Call it intellectual corruption.

Bill Phillis, founder of the Ohio Coalition for Equity and Adequacy and former deputy commissioner of education in Ohio, laments the commercializations that charter schools have introduced into K-12 schooling, while claiming to be “public schools”:

He writes:

“For sale: A school–The practice of buying and selling charter schools signals the complete disconnect between school and community

“The greatest human-inspired public institution-the common school-was created as a school for all children. The nexus between the community and the common school is powerful in the lives of school children; charter schools are not community-based entities.

“Parents in a school district would be shocked if they opened the morning paper and read the headline: School district for sale. That happens in the charter world.

“Charter school organizations are bought and sold. Ron Packard, former CEO of K12-Inc. (in Ohio, K-12 Inc. operates the Ohio Virtual Academy) left K-12, Inc. and started a company that has purchased several charter schools in Ohio. This practice of buying and selling charter schools demonstrates the complete disconnect between school and community. Charter schools are not public.

“The common school is not a for-profit business enterprise. It is a community institution of the community, by the community and for the kids of the community.”

Denis Smith explains how the charter industry has exposed Republican hypocrisy in his state of Ohio. As readers will be quick to point out, charters have also exposed the hypocrisy of Democrats who have jumped on the money train and sold out minority children, public education and unions.

To track the rise of the charter industry, follow the money and campaign contributions. In Ohio, politicians sell themselves for far less than in New York.

Consider this:

“In a page one article detailing the history of the notorious online charter school ECOT, the Columbus Dispatch published a detailed review of this operation that has been efficiently sucking up the low hanging fruit otherwise known as public tax dollars since 2000. In the last four years alone, that low hanging fruit has generated more $100 million annually for ECOT founder Bill Lager’s charter school companies, allowing him to maintain a very comfortable lifetstyle in several luxury residences, including one in Key West, Florida. In return, Lager has donated more than $2 million to the Ohio GOP and its candidates.”

So Lager gives a total of $2 million and in return he collects $100 million annually. That’s quite a handsome return on his investment. No wonder so many entrepreneurs want into the action.

I am reposting this because I forgot to put in the link. Please listen. It is a lecture so you can listen while driving. I knew the late Michael Joyce of the Bradley Foundation, a very rightwing foundation, and I can confirm that he knowingly manipulated black leaders in Wisconsin to get vouchers passed.

Glen Ford, executive editor of Black Agenda Report, is a fierce critic of corporate education reform. He is equally hard on Democrats and Republicans who have sold out their schools to satisfy rightwing foundations and Wall Street.

http://www.blackagendareport.com/node/4666

In this post, he lacerates DeVos, Trump, Booker, and Obama
as enemies of public schools, who sold out their community schools to satisfy their funders or (in DeVos’s case) personal ideology.

Here is an excerpt:

“Sometimes, when ruling class competitors collide, the villainy of both factions is made manifest. Donald Trump did the nation’s public schools a great service by nominating Betsy DeVos, the awesomely loathsome billionaire Amway heiress, for secretary of Education. In turning over that rock, Trump exposed the raw corruption and venality at the core of the charter school privatization juggernaut. Only an historic tie-breaking vote by Vice President Mike Pence saved DeVos from rejection by the U.S. Senate. Two Republicans abandoned their party’s nominee, joining a solid bloc of Democrats, including New Jersey’s Cory Booker, a school privatizer that crawled out of the same ideological sewer as DeVos and has long been her comrade and ally. Booker defected from his soul mate in fear that the DeVos stench might taint his own presidential ambitions.

“The New York Times editorial board, a champion of charters, bemoaned that DeVos’ “appointment squanders an opportunity to advance public education research, experimentation and standards, to objectively compare traditional public school, charter school and voucher models in search of better options for public school students” – a devious way of saying that the Senate hearings exposed the slimy underbelly of the charter privatization project and the billionaires of both parties that have guided and sustained it.”