Archives for category: Dark Money

Dark Money is pouring in to Denver to maintain control of the school board by advocates of privatization and high-stakes testing.

Vote for the candidates endorsed by Our Denver Our Schools. This is an organization of local Denver residents who do not have piles of billionaire cash from out of state.

This is their slate. They will fight for better education for all children, not for privatization.

Xochitl “Sochi” Gaytan, District 2
Dr. Carrie Olson, District 3
Tay Anderson, District 4
Robert Speth, At Large

This is The People’s Slate.

Tell the billionaires that Denver kids and public schools are not for sale.

Maurice Cunningham, a professor at the University of Massachusetts, has been tracking the movement of out-of-state “dark money” into local elections in Massachusetts. He exposed the source of millions of dollars that flowed into the state to press for passage of Question 2 in November 2016, for the purpose of lifting the limit on charter schools. Once the public understood that the Waltons and Wall Street were trying to buy their public schools to turn them private, dark money lost. Question 2 was overwhelmingly defeated.

After the election, state ethics officials fined the Dark Money conduit “Families for Excellent Schools” almost half a million dollars and directed them to stay out of the state for four years.

But they are back.

Now the privatization industry wants to buy a seat on the Malden school board.

There’s a race for school committee in Ward 3 Malden that is sending a signal about the direction of Massachusetts politics. Candidate Mekka Smith, chief of staff of charter school operator KIPP Massachusetts, is running away in the money race. And she’s doing it with backing from the Dark Money/Privatization Industrial Complex.

The money in this case isn’t hidden although it does involve a few of the reluctant stars of Families for Excellent School’s dark money disclosures from the 2016 charter school ballot question. Andrew Balson of Newton, who invested $100,000 in FES’s scheme, gave $1,000 to the Malden candidate. Charles Longfield, who posted $650,000 to FES’s secret stash, gave $250 to Ms. Smith. In 2016 he also gave $25,000 to Great Schools Massachusetts and $100,000 to the pro-charter Campaign for Fair Access to Quality Public Schools ballot committee. And along with the Walton family, the Longfield family funds Massachusetts Parents United (see here and here), whose state director occupied the same role for Banned-in-Boston Families for Excellent Schools.

The total amount invested by KIPP, including loans Ms. Smith made to herself, is $3,950. Individuals affiliated with Teach for America (backed in Massachusetts by Strategic Grant Partners) have contributed $1,500. Charter school backer and venture capitalist Arthur Rock of San Francisco contributed $500.

Candidate Smith raised $14,966 as of October 20. Excluding funds she has lent to her own campaign, she has raised $425 from Malden. Thus Malden residents have been outspent by investors from San Francisco, New York, Atlanta, Newton, Cambridge, Boston, and Summit, NJ. And also of course by KIPP and TFA.

School committee races, especially ones for a small area like a ward, are usually sleepy little affairs funded by friends and family. But they have become of interest to investors who can tip a race with relatively small sums of money. This has been happening all over the country.

Even worse news. The fake reformers “Stand for Children” are funding races across the state. Keep your eye on “Stand.” They are a front for the big money.

Carol Burris and Darcie Cimarusti of the Network for Public Education spent months assembling a portrait of the Dark Money that is now pouring in to local school board races, not to save schools or improve them, but to privatize them.

Valerie astrauss posted their shocking expose here.

Strauss begins:

“The Denver Post’s editorial board recently published a piece endorsing four candidates running for the Denver school board, all of them in support of reforms that employ some basic principles of for-profit businesses to the running of nonprofit public education. The editorial calls their opponents “anti-reformers” (as if they oppose making things better for students) and says they “enjoy plenty of money and energy.” (That, apparently, includes a 19-year-old “anti-reformer” candidate who just graduated from high school.)

“Here’s what it doesn’t mention: the big out-of-state money behind the editorial board’s chosen candidates. This is a phenomenon that we’ve seen for years now, one in which some of America’s wealthiest citizens back school board candidates — even in states in which they don’t reside — to push their view of how public schools should operate. It has happened in Louisiana, California, Minnesota, Arkansas, Washington, etc.

“This is a detailed post explaining the flow of dark money — funds donated to nonprofit organizations that spend the money to influence elections but do not have to disclose where they got it — by looking at the Denver school board race. There are four open seats on the seven-seat board and a total of 10 candidates.”

Who are these billionaires and millionaires who are spending huge sums to buy acquiescence to privatization, whether in Denver or Massachusetts or elsewhere?

Read on.

Maurice Cunningham, professor of political science at the University of Massachusetts, is an expert on the infusion of Dark Money into education.

He wrote several articles about the millions of dollars that poured into Massachusetts to promote the referendum to increase the number of charter schools in November 2016.

This article is about a Dark Money passthrough called Stand for Children, which began its life as a pro-public school group but turned into a pro-Privatization, anti-union, anti-teacher organization. It highlights the role of Stand for Children in Massachusetts. It does not explore its national activities, where it plays a pernicious part in the attack on public schools, unions, and teachers.

http://blogs.wgbh.org/masspoliticsprofs/2017/10/6/your-dark-money-reader-special-edition-stand-children/

Those who remember the early days of SFC now call it “Stand ON Children.”

It has funneled money to corporate reform candidates in cities from Nashville to Denver. It tried to squelch the Chicago Teachers Union by buying up all the top lobbyists in Illinois. It has funded anti-union, anti-teacher campaigns.

It pretends to be a “civil rights” organization. It is not.

The Network for Public Education just held its fourth annual conference in Oakland, California, on October 14-15.

It was a fabulous conference, with great speakers, roundtables, panels, and camaraderie.

I opened the conference on October 14. I introduced our wonderful board and staff (we have 1.5 staff members and hundreds of amazing volunteers).

I described what we are for and what we oppose.

If you agree with us, please join, donate whatever you can, and help us continue our grassroots efforts to strengthen and support public education.

In the days ahead, I will post all the keynote addresses. They were fantastic.

If you knew how inspiring these two days were, you will want to join us next year. I can’t give the location yet, but we will meet in the Midwest.

The Los Angeles Times reports that the charter chain founded by LAUSD board member Ref Rodriguez has now accused him of financial misdeeds. He was accused last month of money laundering during his campaign for the board seat. Rodriguez was put into office by the charter billionaires associated with the California Charter School Association. After the defeat of Steve Zimmer by Nick Melvoin last spring, The board had a charter majority for the first time and was on the cusp of privatizing many more schools. After his indictment, Rodriguez stepped aside as board president but refused to give up his seat.

Will Rodriguez cling to his seat? Will Eli Broad and Reed Hastings and Alice Walton have to buy a new board seat?

“The charter school network that L.A. school board member Ref Rodriguez co-founded and ran for years has filed a complaint with state regulators alleging that Rodriguez had a conflict of interest when he authorized about $285,000 in payments drawn on its accounts.

“Officials at Partnerships to Uplift Communities, or PUC Schools, filed the complaint Friday with the state’s Fair Political Practices Commission.

“According to the complaint and documents reviewed by The Times, the vast majority of the money transfers that Rodriguez authorized and PUC has flagged went from school accounts to Partners for Developing Futures, a nonprofit under his control.

“An attorney who reviewed the records for the school network said he has found little or no evidence so far of services provided for these payments.

“The payments were made in 2014, but do not appear to have been properly authorized,” said attorney Gregory Moser, whose firm was hired by PUC to conduct the investigation. “Nor are the purposes of the expenditures and benefit to the schools adequately documented, our investigation revealed.”

“PUC’s senior managers said they uncovered the transfers — made in a series of checks — while responding to questions and requests from The Times in compliance with the state’s Public Records Act.

“The conflict-of-interest allegations could add to Rodriguez’s legal problems.

“Last month, prosecutors charged him with three felonies and 25 misdemeanors for alleged money laundering in his school board campaign. Rodriguez is accused of soliciting people to give him donations and then illegally paying them back.”

Charter Schools Education Los Angeles Board of Education

Jennifer Berkshire says that critics of Betsy DeVos and her family were wrong to write her off as a dummy. She has a long-term plan and is steadily moving towards it. Privatization of public schools is on her check list. Destruction of unions is on the list. Elimination of any restrictions on campaign cash is there. The long-term target is democracy. Not more of it. Elimination of it. Oligarchy.

Berkshire writes:

“If Betsy DeVos enjoys the occasional quaff of champagne on her private jet, the recent news that the Supreme Court is poised to deliver a knock-out blow to public sector unions presented a reason to celebrate. The announcement was made just hours before DeVos alit in Harvard Square last week, where she was the star attraction at a school choice conference. At Harvard’s Kennedy School, DeVos was met by one of the largest protests she has encountered to date: an all-ages demonstration vs just about everything Trump’s Secretary of Education has said and done during the past seven months. Inside, the event was tense, even hostile—another rocky outing in a tenure replete with them. Or at least that is the conventional wisdom.

“Turning red

“The latest Supreme Court case to take aim at the unions, Janus vs AFSCME Council 31, began two years ago with a suit filed by yet another right-wing billionaire: Illinois’ Bruce Rauner. While it is framed by conservatives as a case about individual rights and freedom, the aptly named “Janus” is about politics and power. Public sector unions, virtually the only ones left, provide the bank and the foot soldiers that get Democrats elected. At their best, they’ve spearheaded progressive causes that go far beyond the interests of their members. In Massachusetts, the teachers unions have been the driving force behind successful campaigns for a minimum wage hike, paid sick time for all workers, and are now pushing a tax on millionaires. The unions are also virtually the last organized defense of what’s left of our safety net—Social Security and Medicare; the right wants those next.

“Just days before DeVos appeared at Harvard, she was back in Michigan, taking what was essentially a victory lap. She exhorted the crowd at a conservative gathering on Mackinac Island to pat themselves on the back for the Mitten State’s having gone Republican in the 2016 Presidential election—the first time since 1988. “We in Michigan have a lot to be proud of, but nothing more than that,” DeVos said. The story of just how the DeVos’ pulled off the feat of turning Michigan red is long and ugly, involving mountains of cash, the steady erosion of representative democracy, and a decades-long effort to dismember the state’s once powerful teachers union: the Michigan Education Association.

“Michigan went right-to-work in 2012, ushered into the former cradle of industrial unionism via the DeVos’ trademark combo of political arm twisting and largesse. Another DeVos-inspired law made it illegal for employers, including school districts, to process union dues, while simultaneously making it easier for corporations to deduct PAC money from employee paychecks. This summer the DeVos’ succeeded in driving a final nail into the MEA’s coffin: the GOP-controlled legislature essentially eliminating pensions, among the last tangible benefits that teachers in Michigan receive from their unions. The union leaders I spoke to when I traveled through the state reporting on DeVos’ legacy were candid about the increasingly precarious state of their organizations. But far worse lies ahead. The demise of retirement benefits means that new teachers have little incentive to join the unions; the shrinking terrain of collective bargaining gives veteran teachers little reason to remain in them.”

Dark Money is winning. Betsy is its face. That’s why she always smiles, no matter how many protestors complain. She is pinning their wings in her scrapbook.

Democracy is in deep trouble.

Andrea Gabor writes here about the dark money campaign to persuade voters in Massachusetts to lift the cap on charter schools last November. The dark money came pouring in, but suffered a crushing defeat when voters weighed in. Andrea worked closely with Peggy Wiesenberg, a Massachusetts attorney and parent of three public-school graduates. Peggy wrote to tell me that KIPP is planning to open two new charters in Lynn, Massachusetts, despite the fact that the people of Lynn don’t want more charter schools. Governor Baker, a Republican, has added two new charter supporters to the state Board of Elementary and Secondary Education; one is a board member of KIPP, the other is a Harvard scholar funded by the Walton Family Foundation:

KIPP plans to expand in Massachusetts by adding two schools in Lynn per a pending request to increase enrollment by 1,014 seats (up from 1,586 in Lynn). The Mass. Board of Elementary and Secondary Education will take up that request in Feb 2018.
See”Charter Amendment Requests Pending BESE Action (Grades, or Maximum Enrollment, or Change to Charter Region)” http://www.doe.mass.edu/news/news.aspx?id=24563

One of the two new BESE members appointed by Gov Baker is on the Board of Trustees of KIPP MA; the other Martin West whose scholarly work has been funded by the Walton Family Foundation.

But, back to the new post by Andrea Gabor:

The New York-based Families for Excellent Schools added about a third of the $45 million spent to push charter schools. Pro-public education advocates spent nearly $16 million.

“Voters defeated Question 2 by a stunning 62-to-38 margin–an endorsement of Massachusetts public schools, which are rated number one in the nation. But not for lack of efforts by organizations like FESA, which allowed a slew of wealthy contributors to hide their identities and their sizeable contributions in support of the referendum. In some cases individuals contributed twice: Once through a ballot committee that was required, by law, to publish names of contributors, and a second substantially greater contribution, in some cases millions more, via FESA.

“At the top of the list of FESA’s secret donors were public officials in the Massachusetts government. Governor Charlie Baker was a leading proponent of Question 2 and backed efforts to impose charter schools in towns, like Brockton, where there was widespread local opposition.

“Normally, nonprofits organized under IRS Code 501(3), such as Families for Excellent Schools (FES), don’t have to reveal the names of donors so long as they are not engaging in political activity. And ordinarily, their affiliated social-welfare nonprofits, organized under IRS Code 501(c)(4), such as FESA, can have some political involvement in electoral politics and keep donors secret, so long as this is not their primary activity. However, if the organization is a vehicle for receiving contributions for a ballot campaign, then the voting public is entitled to know the names of each contributor and the amount donated before the election.”

FES was fined more than $400,000, the largest fine ever imposed by the state for a campaign finance violation.

Here are some of the big donors:

“The campaign-finance disposition agreement has revealed other backers of Question 2 who used FESA contributions to hide the full value of their donations in support of the charter-school referendum including:

“Paul Sagan, Chair of the Massachusetts Board of Elementary and Secondary Education, who contributed $496,000 on August 4 and 5 in addition to his previously disclosed contribution of $100,000 on August 10, 2016.

“Seth Klarman, Investment Manager of the Baupost Group LLC, contributed $3 million within six months of the election in addition to his previously disclosed contribution of $40,000 in September 2015.

“Jonathan Jacobson, Managing Director Highfields Capital Management LP, contributed $2 million in August and October. That’s in addition to the previously disclosed contribution of $40,000 in September 2015 by his wife Joanna, Managing Partner of Strategic Grant Partners, another dark money vehicle, according to Professor Maurice Cunningham of UMass Boston…

“Josh Bekenstein, a Bain Capital investor, and his wife Anita, a private philanthropist, each contributed $750,000 in August and $500,000 on October 2016 for a combined total of $1.5 million, in addition to Josh’s previously disclosed contribution of $40,000 in September 2015.

“Chuck L. Longfield, Founder of Target Analytics and Chief Scientist at Blackbaud, funneled $650,000 to FESA under the name “Chuck Longfield,” in addition to a previously disclosed contribution of $100,000 under the name “Charles Longfield” on August 2016 and $1,000 in November 2015. [The OCPF filings have a discrepancy in the house number associated with Longfield’s contributions—in all likelihood a typographical error.] Longfield went on WBUR radio on October 31, 2016 to explain why he gave $100,000 in support of raising the cap on charter schools, never mentioning the exponentially larger contribution that he made through FESA to lift the cap.

“Martin Mannion, Managing Director of Summit Partners, contributed $100,000 to FESA between August and October 2016 in addition to a disclosed campaign contribution of $30,000 in October 2016.

“Alice Walton contributed $750,000 to FESA on November 2016 in addition to her previously disclosed contribution of $710,000 to Yes On 2, another campaign committee, in July.

“The Boston Globe reports that in addition to paying the fine, and revealing its donors, the group also “agreed with the IRS to dissolve itself, and Families for Excellent Schools, its umbrella group, agreed not to fund-raise or engage in any election-related activity in Massachusetts for four years.”

Gabor says that New York State Attorney General Eric Schneiderman may look into the “Families for Excellent Schools,” a political group of millionaires and billionaires with no purpose other than to destroy and privatize public schools.

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.

Maurice Cunningham is a professor of political science in the University of Massachusetts who has become very interested in “dark money.” He doesn’t write about education policy per se, but he keeps raising uncomfortable but necessary questions about who is funding attacks on public schools, teachers, and unions.

In this post, he wondered why DFER (Democrats for Education Reform) released a poll showing that the public is opposed to raising the pay of teachers who are in the “excess pool.”

He searched the DFER website and could not find the poll or the methods or the questions.

He writes:

How were the questions worded? The story describes the teachers as being in the “excess pool’ — educators who lost their positions because of poor performance or job cuts, or who principals don’t want to hire — now working as co-teachers or in other positions.” But did the question ask if respondents favored “unwanted teachers” to get paid? Or did they favor teachers in the “excess pool” to get paid? Or something else? You’d likely get different responses based on the wording. And the question would need to explain what those terms meant. The “unwanted teachers” are working after all, and what if they aren’t wanted because of inept or misguided administrators? That’s why they have a union to protect them in the first place.

The School Committee is set to vote on a contract negotiated between the city and the Boston Teachers Union in which all teachers including those in the excess pool would get a raise. DFER MA State Director Liam Kerr says that voters “When presented with the facts” don’t want the excess pool teachers to get the raise. But voters weren’t presented with these facts because the contract was just finalized and the poll was conducted in May. And to go back to the nature of the questions asked, “the facts” presented were selected by DFER MA.

Which leads to a larger problem: as Neil Postman argued years ago in Amusing Ourselves to Death, poll respondents often have a limited understanding of the topic being presented to them. From the depths of my ignorance of the topic of the excess pool, I’ll confess I don’t understand the nuances of the issue or the practical application.

That leads us back to taking DFER MA’s word on this. What (or Who)? Is DFER? We don’t know, because it is a dark money front that hides its contributors. Sure the organization is represented in Massachusetts by Mr. Kerr, but he’s an agent. Who are the principals? In other words, show me the money. Who is putting up the money for the political activities of DFER MA? Maybe they are selfless do-gooders too shy to make their names know. But until DFER Ma comes clean about who really controls its political operations (hint: it is hedge fund money, probably from New York), there is every reason to regard their pronouncements with deep skepticism.

We know that DFER is hedge fund money. What we don’t know is their end game. They are zealously pro-charter. They are anti-union. Their board members are very rich. Why are they worried that somewhere a teacher might get a raise of $5,000 when that is the kind of money they spend on a good dinner?