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Maurice Cunningham: Massachusetts Drove “Families for Excellent Schools” Out of the State

By dianeravitch
September 13, 2017 //
14

When I learned that the phony “Families for Excellent Schools” was forced to pay a hefty fine by state officials in Massachusetts, I invited Maurice T. Cunningham to write about it. New Yorkers are familiar with this billionaire-funded group from the time when it made a $6 million television buy to thwart Mayor de Blasio’s plan to establish accountability for charter schools. FES, pretending to be the voice of poor black and brown families, suddenly appeared with bulging pockets to shower millions on TV advertising and politicians, not what one would expect from “families” who live in poverty. As a result of their efforts, charters in New York City got the right to co-locate in public school buildings with no rent ever, and if they preferred a private space, the city was obliged to pay for it. What was certain was that not a one of the billionaires behind FES was planning to send any of their children to charter schools or public schools in New York City.

During the campaign in Massachusetts last fall, Professor Cunningham wrote about the dark money pouring in to influence the Question 2 referendum. Despite the money, opponents of charter expansion lost.

This is what Professor Cunningham wrote:

Families for Excellent Schools Driven Out of Business in Massachusetts

Maurice T. Cunningham

Associate Professor, University of Massachusetts at Boston

Families for Excellent Schools, the hedge funded bully of school privatization, has not only been exposed but driven out of business in Massachusetts.

Last year FES was leading the campaign, through its ballot committee Great Schools Massachusetts, to pass a referendum that would expand the number of possible charter schools in the state. Not only was GSM overwhelmed at the November election by teachers unions, but FES’s wild spending attracted the attention of the Massachusetts Office of Campaign and Political Finance. This past week OCPF released a Disposition Agreement with FES that found that the group had violated Massachusetts campaign finance laws. FES acted as a political committee without registering with OCPF, and channeled over $15 million from donors “without disclosing the contributors, and by providing funds to the GSM Committee in a manner intended to disguise the true source of the contributions.” (OCPF press release here).

The consequences for FES: OCPF levied its largest fine in history, over $426,000, being the total amount of cash on hand for FES and its political arm Families for Excellent Schools-Advocacy. FESA agreed to dissolve its social welfare group status with the Internal Revenue Service. FES Inc. agreed to forego political activities in Massachusetts for four years.

Not only did OCPF release its Disposition Agreement it also required OCPF to divulge the donors it had promised to hide, and their contributions. FES’s list of funders was eye-popping. Boston hedge fund titan Seth Klarman of Baupost LLC was in for $3.3 million. Bain’s Joshua Bekenstein and his wife chipped in with $2.5 million. Jonathon Jacobson of Highfields Capital Management was good for $2 million. Other contributors came from Adage Capital Management, Summit Partners, and Par Capital Management. Alice Walton of the WalMart fortune kicked in $750,000.

Each of those powerful individuals was promised by FES that their identities would be kept secret, hidden behind the Internal Revenue Code rules for 501(c)(4) social welfare organizations. Except this time, it didn’t work. OCPF conducted a thorough investigation and exposed FES for what it is: a dark money political operation.

The Disposition Agreement should be studied across the country and state regulatory agencies pressed to follow its teachings. There is absolutely no reason why citizens should not be informed about who is spending millions to influence their vote. It’s shameful and the dark money train must be derailed if we are not to descend into a plutocracy. OCPF’s action is great news for Massachusetts and great news for democracy.

Categories Billionaires, Charter Schools, Corporate Reformers, Dark Money, Education Industry, Massachusetts, Privatization

Massachusetts: State Fines Dark Money Group $426,000 in Charter Battle

By dianeravitch
September 12, 2017 //
82

In November 2016, the state of Massachusetts held a referendum about whether to expand the number of charters in the state. Millions of dollars were spent on both sides, but the pro-charter groups spent twice as much as the anti-charter groups (mostly funded by teachers’ unions).

Much of the large pro-charter funding was bundled by a group called Families for Excellebt Schools. The names of many individual donors were not released. That’s called “dark money.” It enables the group to pretend to be worried families, eager to enroll their chilren in charter schools, when they are actually billionaires and millionaires who want to promote privatization. One member of the group is billionaire Alice Walton of Arkansas. Another is the chairman of the state board in Massachusetts, who offered nearly $500,000 to undermine public education in a state where he is in control.

FES pulled the same shenanigans in New York, pumping millions into a campaign to persuade the legislature to shower charters with perks and public space and money. But it didn’t work in the Bay State.

Families for Excellent Schools has been ordered to pay a fine of $426,500 for violating campaign finance laws in the state.

“An advocacy organization that gave more than $15 million to a Massachusetts ballot campaign to lift the cap on charter schools has agreed to pay $426,500 to settle allegations of campaign finance violations.

“The Office of Campaign and Political Finance alleged that Families for Excellent Schools contributed money to the ballot campaign in a way that was designed to hide the identity of its donors. The organization denies any wrongdoing.

“This is the largest settlement ever collected by Massachusetts’ Office of Campaign and Political Finance.

“Massachusetts voters deserve to know the identity of all those who attempt to influence them before Election Day,” said Office of Campaign and Political Finance Director Michael Sullivan in a press release. “Complete and accurate disclosure of campaign activity is the goal of OCPF and the cornerstone of the campaign finance law.”

“Families for Excellent Schools is a New York-based advocacy group, which gave $15.3 million to Great Schools Massachusetts, the ballot committee promoting a question in 2016 that would have lifted the cap on charter schools. The question failed at the polls.”

Indeed, the question failed overwhelmingly at the polls.

Families for Excellent Schools agreed not to engage in any election-related activities in the state for four years.

The fine is Penny ante for a group like FES, but it is satisfying to see them get caught hiding the names of donors.

Categories Charter Schools, Corporate Reformers, Dark Money, Education Industry, Education Reform, Fraud, Funding, Massachusetts, Privatization

Koch Brothers Target Colorado for ESA Vouchers

By dianeravitch
July 10, 2017 //
20

Wherever there is a bipartisan consensus for charter schools, the Koch brothers see the state as ripe for expanding vouchers. Now they are targeting Colorado, where they have developed a strategic plan for the state.

Leading Democrats, such as wealthy Congressman Jared Polis and former State Senator Michael Johnston, have led the charge for charters and schiool choice (both have announced they are running for the Democratic nomination for governor.) Polis has opened two charter schools and fiercely supports them as a member of the House Education Committee. Johnston, former TFA, introduced legislation in 2011 to make student test scores count for 50% of teachers’ evaluation. The law has been an abject failure, although Johnston claimed it would guarantee that Colorado had great teachers, great principals, great schools.

DFER and Stand for Children have been active in Colorado, laying the groundwork for the Koch brothers.

And now they arrive with a plan to defund public schools and call it “opportunity.”

“COLORADO SPRINGS — In a nondescript office building on the north side of this conservative enclave, more than a dozen volunteers spent hours making calls to educate voters about a new initiative that will allow parents to use taxpayer dollars to send children to private schools.

“At the same time, just miles down the road, the political network behind the effort gathered hundreds of its wealthiest donors at a posh mountainside resort to raise money to support the campaign to remake the education system.

“The confluence of policy and politics epitomized how the conservative billionaires Charles and David Koch flex their organization’s muscle and spread an ideological agenda in states across the nation.

“The value of this network cannot be overstated,” said Stacy Hock, a Koch donor and conservative education advocate in Texas. “The ability to stand on the shoulders of the giant that is this network to make yourself more impactful and strategic changes the game.”

The Koch brothers plot a conservative resistance movement in Colorado Springs strategy session
Koch network to Trump administration: “You are never going to win the war on drugs. Drugs won.”
The phone calls to middle-of-the-road voters and presentation to donors in Colorado last week were part of the Koch network’s six-figure campaign to promote school choice and education savings accounts, or ESAs.

“The effort in Colorado involves the Americans for Prosperity Foundation and the Libre Initiative, a group focused on Hispanic community outreach. Together the organizations are making calls and sending flyers to voters this summer, two of which promote ESAs as a way to “give families the freedom to select schools, classes and services that fit the unique needs of their kids….

“The Koch network considers Colorado an attractive state for its message because public charter schools are a bipartisan cause. In the 2017 session, lawmakers equalized funding for charter schools with district schools.

“EdChoice, a conservative education advocacy organization aligned with the Kochs, commissioned a survey in 2015 to introduce Colorado to the ESA issue, finding strong support when cast in favorable terms.”

Categories Accountability, Billionaires, Charter Schools, Colorado, Corporate Reform, Corporate Reformers, Dark Money, Education Industry, Education Reform, Hoax, Privatization, Vouchers

Ed Berger: The Stealth Coup to Destroy the American Dream

By dianeravitch
July 10, 2017 //
8

Ed Berger, a retired teacher who lives in Arizona and is active in the struggle to save public schools, has written a powerful post about the billionaire-funded movement to destroy our democracy.

It begins like this. I urge you to read it all:

“Within the core of our freedoms, lie the avenues powerful individuals use to take away the rights of citizens and the controls of government designed and evolved to serve all. Americans are now aware of the reality that subversive forces have made excessive headway in destroying our rights.

“What has been allowed is the incursion of an Oligarchy: The few exploiting the many. We are witnessing the theft of human rights through the infiltration of what were meant to be representative systems within a constitutionally defined government.

“My first introduction to those who want absolute power was through studies of The Robber Barons in America in the 19th Century, and then in the 20th Century, the way Adolph Hitler and Joseph Stalin took total control of their countries. I learned of an American, Fred Koch, who became wealthy via Russian and German contracts and worked with Stalin and then Hitler as WWII began. He was convinced that absolute dictators were necessary to create strong nations. He came home to change the U.S government into a mechanism which would allow him to acquire power and wealth by any means. His tenets were: Destroy public education. Destroy any kind of worker representation. Control the prison system. Destroy the democratic process by distancing or removing undesirable citizen involvement in decision-making. End government interference in the rights of individuals like himself to create his own empire.

“Koch’s ideology was embedded in the goals of the John Birch Society, founded in the late 50s by Fred and ten others. It was one of many organizations spawned or infiltrated by Koch. Be aware of subversive groups founded by Koch and his sons and other powerful billionaires. Groups like the American Legislative Exchange Council (ALEC) which writes legislation supporting Koch’s political and economic agendas. Know the goals of think tank groups established and funded to carry out Fred’s vision, these include: The Freedom School, the CATO Institute, and Americans For Prosperity among others. Be aware of how Foundations and not-for-profit tax avoidance mechanisms allowed the billionaires to finance their think thanks and other subversive organizations.

“The Koch machine gained the support of other libertarian arch conservatives. Richard Mellon Scaife, Harry and Lynda Bradley, John M. Olin, the Coors brewing family, and the DeVos family, to name some of the big supporters recruited by the Fred Koch and his sons David and Charles. All had acquired vast fortunes from activities that exploited citizens and nature. All were against any type of government that limited their rip, rape, and run business philosophies.

“In the last few years, add the names Bezos, Broad, Cohen, Singer, Schwarzman, Adelson, Hendricks, Mercer, and perhaps the worst of the lot, the Waltons. The Koch ideology also appeals to radical splinter groups of the Christian conservative right which is obsessed with the takeover of the US Government and the dismantling of the government. Understanding this unholy marriage explains why so many Tea Party extremists support Koch and the coup.”

Categories ALEC, Betsy DeVos, Billionaires, Dark Money, Democracy, Inequality, Injustice, Privatization, Walton Foundation

Maurice Cunningham: Dark Money Combines to Privatize Public Schools: PLEASE READ THIS!

By dianeravitch
June 21, 2017 //
20

This may be the most important post you read today.

Maurice Cunningham, a professor of political science at the University of Massachusetts, began investigating the millions of dollars pouring into the state during the referendum on charter schools last fall. He wondered why so many billionaires from other states wanted to expand the number of charter schools in Massachusetts. He continued his investigation after the election and has lifted the curtain on groups like Families for Excellent Schools, Stand for Children, and Educators4Excellence, and Leadership for Educational Excellence (a group connected to TFA).

He began researching the intersection between philanthropy and dark money.

My descent into darkness led me to decipher the hidden funding of Families for Excellent Schools, a New York based organization that poured over $17 million in dark money into the Great Schools Massachusetts ballot committee for 2016’s Question 2 on charter schools. That brought me to the initial funding to get FES up and running in Massachusetts, which came from a Boston based Internal Revenue Code 501(c)(3) charity called Strategic Grant Partners. The investments from SGP are consistent with the practice of wealthy individuals using charitable entities to influence the direction of public policy, a topic I explored in Unmasking the Philanthrocapitalists Who Almost Bought Massachusetts Schools. One way for wealthy individuals to grease the path to their public policy goals is to fund organizations that undermine teachers unions, a topic I took up in Philanthrocapitalists Brandish BEANball at BTU.

In the course of this research I have created a database of all Strategic Grant Partners’ publicly available grants since its inception, from its Form 990PF tax returns. The non-profit has dispensed many grants for family support and educational purposes over that time to about seventy grantees, only five of which I would characterize as engaging in political activities: advocacy/organizing/mobilizing for three of them, adding lobbying activities for two, Stand for Children and Families for Excellent Schools. There were no grants to political activities organizations until Stand for Children in 2009, and then no other such organization received a grant until 2013 when Education Reform Now and Families for Excellent Schools received funding.

He concludes:

The Stand for Children and Families for Excellent Schools initiatives both led toward the ballot box and thus we could look at OCFP reports; but these days the reports only tell us which dark money front is laundering for which elegantly named shell. That’s the tip of the iceberg. But there is much more.

Professor Cunningham, keep up the research. Check out Donors Trust, another group that bundles dark money for school privatization. Add ALEC and its donors.

Dark Money wants to destroy our public schools and our democracy.

The people behind these activities use “civil rights” rhetoric to advance anti-democratic goals. They are thieves of democracy.

Categories Accountability, Billionaires, Charter Schools, Corporate Reformers, Dark Money, Education Industry, Fraud, Privatization, Stand for Children
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