Archives for category: Deregulation

Thanks to Guy Brandenburg for directing me to this fascinating post about what happens when private corporations take over government services, in this case, reporting the weather.

Restore Reason writes about the commercialization of weather reporting and draws a parallel with charter schools and vouchers. Please open the link and read the entire post.

I just listened to “The Coming Storm”, by Michael Lewis. I didn’t carefully read the description before diving in, and thought it would inform me about the increasing violence of weather. Rather, I learned about the privatization of weather, or at least the reporting of it, and the Department of Commerce.

Turns out, the Department of Commerce has little to do with commerce and is actually forbidden by law from engaging in business. Rather, it runs the U.S. Census, the Patent and Trademark Office, and the National Institute of Standards and Technology. Over half of its $9B budget though, is spent by the National Oceanic and Atmospheric Administration (NOAA) to figure out the weather. And figuring out the weather, is largely about collecting data. “Each and every day, NOAA collects twice as much data as is contained in the entire book collection of the Library of Congress.” One senior policy adviser from the George W. Bush administration, said the Department of Commerce should really be called the Department of Science and Technology. When he mentioned this to Wilbur Ross, Trump’s appointee to lead the Department, Ross said, “Yeah, I don’t think I want to be focusing on that.” Unfortunately for all of us, Ross also wasn’t interested in finding someone who would do it for him.

In October 2017, Barry Myers, a lawyer who founded and ran AccuWeather, was nominated to serve as the head of the NOAA. This is a guy who in the 1990s, argued the NWS should be forbidden (except in cases where human life and property was at stake) from delivering any weather-related knowledge to Americans who might be a consumer of AccuWeather products. “The National Weather Service” Myers said, “does not need to have the final say on warnings…the government should get out of the forecasting business.”

Then in 2005, Senator Rick Santorum (a recipient of Myers family contributions) introduced a bill to basically eliminate the National Weather Service’s ability to communicate with the public. Lewis asks his readers to “consider the audacity of that manuever. A private company whose weather predictions were totally dependent on the billions of dollars spent by the U.S. taxpayer to gather the data necessary for those predictions, and on decades of intellectual weather work sponsored by the U.S. taxpayer, and on the very forecasts that the National Weather Service generated, was, in effect, trying to force the U.S. taxpayer to pay all over again for the National Weather Service might be able to tell him or her for free.”

It was at this point in my listening that I began to think how this privatization story was paralleling that of education’s. In both cases, those in the public sector are in it for the mission, not the money. In both cases, the private sector only “wins” if the public sector “loses”. In both cases, it is in the interest of the private sector to facilitate the failure of the public sector or make it look like it is failing.

Just as private and charter schools profit when district schools are perceived to be of lower quality, Barry Myers has worked hard to make government provided weather services look inferior to that which the private sector can provide. As Lewis points out, “The more spectacular and expensive the disasters, the more people will pay for warning of them. The more people stand to lose, the more money they will be inclined to pay. The more they pay, the more the weather industry can afford to donate to elected officials, and the more influence it will gain over the political process.”

This is the beginning of a thoughtful post. Please read it.

In 2016, the General Accounting Office—watchdog of the federal government—published a report warning about waste, fraud, and abuse by charter school operators. Every day, there are new reports of shady real estate deals by charter schools, embezzlement, and Profiteering.

In 2016, the NAACP national convention passed a resolution calling for a moratorium on new charter schools until they were accountable, met the same standards as public schools, and stopped draining resources from the public schools, which enroll most students.

Yet Congress just agreed to increase annual funding for new charters to $440 Million in the coming year.

Are charter schools more effective than public schools? No.

Do they take resources and the students they want from public schools? Yes.

Do they threaten the viability of public schools? Yes.

Do they already have the overflowing support of the billionaire class? Yes.

Has the charter industry been riddled with waste, fraud and abuse of public dollars? Yes.

Why is Congress pouring more money into expanding this private sector activity which is neither accountable nor transparent?

Write your member of Congress and ask these questions.

Yesterday we learned that Governor Jerry Brown signed a bill to ban for-profit charters. This sounded great, but there are very few for-profit charters in California other than K12 Inc. Even K12 Inc.’s CAVA (California Virtual Academies) won’t close until their charter comes up for renewal. It can go on ripping off students, families and taxpayers until then.

The fact that the California Charter Schoools Association celebrated the ban is evidence that it will do nothing to curtail the graft and corruption that is commonplace in the California charter industry.

How timely that Steven Singer explains that there really is no difference between for-profit and non-profit charters. They all drain resources and the students they want from public schools, undermining them and threatening the future of public education.

He writes in part:

“Stop kidding yourself.

“Charter schools are a bad deal.

“It doesn’t matter if they’re for-profit or nonprofit.

“It doesn’t matter if they’re cyber or brick-and-mortar institutions.

“It doesn’t matter if they have a history of scandal or success.

“Every single charter school in the United States of America is either a disaster or a disaster waiting to happen.

“The details get complicated, but the idea is really quite simple.

“It goes like this.

“Imagine you left a blank check on the street.

“Anyone could pick it up, write it out for whatever amount your bank account could support and rob you blind.

“Chances are you’d never know who cashed it, you’d never get that money back and you might even be ruined.

“That’s what a charter school is – a blank check.

“It’s literally a privately operated school funded with public tax dollars.

“Operators can take almost whatever amount they want, spend it with impunity and never have to submit to any real kind of transparency or accountability.

“Compare that to a traditional public school – an institution invariably operated by duly elected members of the community with full transparency and accountability in an open forum where taxpayers have access to internal documents, can have their voices heard and even seek an administrative position.

“THAT’S a responsible way to handle public money!

“Not forking over our checkbook to virtual strangers!

“Sure, they might not steal our every red cent. But an interloper who finds a blank check on the street might not cash it, either.

“The particulars don’t really matter. This is a situation rife with the possibility of fraud. It is a situation where the deck is stacked against the public in every way and in favor of charter school operators.”

The Guardian reports here on the collapse of a privatization program in England supported by both the Labor and Conservative parties. The idea sounds very much like our corporate charter chains. If a school was scoring poorly, hand it over to a private “trust” that renames it an academy and takes control of the school.

“Multi-academy trusts” are government-funded, run by private entities, and the schools are no longer locally controlled.

Lots of potential for graft and scandal.

“Wakefield City Academies Trust was in 2015 named a “top-performing” academy sponsor by Nicky Morgan, then education secretary, and handed a £500,000 slice of a £5m fund to improve schools in the north of England. Since then, things have gone awry. The trust has sunk to the bottom of the league tables to become one of the lowest-performing academy chains in the country. And it has been plagued by question marks over its finances.

“In July 2016, the Education Funding Agency investigated the trust. Its draft report, leaked to the TES, found that its interim chief executive, the businessman Mike Ramsay, had paid himself £82,000 over a three-month period. It concluded that the trust was in an “extremely vulnerable position as a result of inadequate governance, leadership and overall financial management”. Later that year, it was reported that the trust had paid almost £440,000 to IT and admin companies owned by Ramsay and his daughter.

“The trust was nevertheless allowed to carry on. Then, in September last year, it suddenly announced it would be looking for new sponsors for all 21 of its schools – but not before it had transferred more than £1.5m of reserves from its schools to its central coffers, entirely permissible in the current system. Some of this was funds raised by parents. It’s not clear whether any of this money will be left when the trust winds up, or whether those schools will see it again.

“The collapse of Wakefield City Academies Trust has sent shockwaves through our area,” says the local Labour MP Jon Trickett, who has for months been seeking answers from the government. “For many parents, it has been disturbing to find that their children’s futures could be threatened by the recklessness of people with very limited educational experience.”

“Wakefield City is one in a series of high-profile failures of trusts forced to give up all their schools. The magazine Schools Week reported just last week that Bright Tribe, the trust with the lowest-performing secondary schools in the country, would also be closing and handing back its 10 schools.

“Are these failures the inevitable consequence of a quasi-market system, predicated on the idea of takeovers? Or a sign of something deeply rotten at the heart of the government’s flagship education policy?

“Academies have been a jewel in the education policy crown for both Labour and Conservative governments in the past 25 years. According to Professor Becky Francis, director of the Institute of Education at University College London, Labour’s academies programme was “focused on the revitalisation of schooling as an engine of social mobility in deprived areas”. She says the idea of bringing in business and philanthropic sponsors – including big names such as the London-based French financier Arpad Busson – “not just for money but for expertise” was controversial from the start.”

We and the Brits have this in common. Both nations have eagerly abandoned responsibility for the quality of education and thrown the schools to the vagaries of the marketplace.

Here is a sickening decision, indicative of Trump-era thinking:

https://m.metrotimes.com/news-hits/archives/2018/07/02/us-court-detroit-students-have-no-right-to-access-to-literacy

“On Friday, dumped out with the least desirable news of the week came word that a lawsuit arguing that Detroit students were being denied an education had been dismissed.

“Perhaps you remember the case. MT presented a cover story about it last year. With the help of a public interest law firm, a handful of Detroit students charged in federal court that educational officials in Michigan — including Gov. Rick Snyder — denied them access to an education of any quality.

“The lawsuit took pains to illustrate how Detroit’s schools — run under a state-appointed emergency manager — were a welter of dysfunction: overcrowded classrooms, lack of textbooks and basic materials, unqualified staff, leaking roofs, broken windows, black mold, contaminated drinking water, rodents, no pens, no paper, no toilet paper, and unsafe temperatures that had classes canceled due to 90-degree heat or classrooms so cold students could see their breath.

“At times, without teachers or instructional materials, students were simply herded into rooms and asked to watch videos. One student claimed to have learned all the words to the film Frozen in high school. The lawsuit even mentions one eighth grade student who “taught” a seventh and eighth grade math class for a month because no teacher could be found.”

Some state laws describe charter schools as “public charter schools.”

ALEC model legislation describes charter schools as “public charter schools.”

But calling them so doesn’t make them so. You can call a horse a camel, but it’s still a horse. You can pass a law calling a horse a camel, but it’s still a horse.

Peter Greene explains here the essential differences between public schools and charter schools.

Charter schools get public money, but that’s the only thing public about them.

If state legislators truly believed that deregulation was necessary for success, they would deregulate public schools. But they don’t. They keep passing more mandates. But only for public schools.

Greene writes:

“The charter sector has been trying to redefine “public” for years. Identifying charters as public schools solves a variety of marketing problems by giving the impression that charters include features that people expect from their public school. “Oh, a public school,” the customers say. “That must mean that the school will be open forever (certainly all of this year), it is staffed with qualified professionals, and is required to meet any special needs that my child might have. Oh, and as a public school, I’m sure it must be accountable to the public as well.”

“Of course, none of these things are true, but the use of the word “public” is a buffer against having the questions even come up. I mean, who even thinks to ask a public school to guarantee that it will stay open all year?

“”Public” when it comes to schools has been taken to mean “operated by the public, paid for by the public, serving the public, and accountable to the public.” Charter fans would like it to mean “paid for by the public” and nothing else. They would like voters and taxpayers not to think of charter schools as private schools that are paid for with public money. They would like voters and taxpayers absolutely not to think of charters as businesses that allow private people and companies to make money by billing the taxpayer. They would definitely not like the voters and taxpayers to think of charters as schools that are “accessible” to all, but which only serve a select few (like a Lexus dealership). They would certainly not like the voters and taxpayers to think of charters as businesses that are accountable only to their owners and operators– and not transparently accountable to the public. The word “public” is a handy fig leaf to cover all of that.”

DeVos wants to water down the definition of “public” even more, to allow private schools, religious schools, and every sort of entrepreneurial venture to get public money. In her view, the real public schools would be dumping grounds for the kids that the charters and voucher schools don’t want.

If we want to retain any sense of the common good, we must resist at every turn. We must protect the common good and our obligations to our fellow citizens.

Ever wonder why the Koch brothers want to quash environmental regulations? Why they support ALEC, which writes model legislation for states to deregulate corporations? Why they are in an alliance with far-right titans like the DeVos family?

Ever wondered how they made their wealth?

This article, published in 2014 by Rolking Stone, answers your questions.

This is one of the best pieces I have read about the pernicious effects of “education reform” on the the Democratic Party. I have consistently argued that the Democrats triangulated so far during the Clinton administration that they blurred the distinct lines between the parties, then ended up supporting the Republican policies of testing, accountability, and choice, which previously they abhorred.

Jennifer Berkshire here fills in the details with her sharp eye and wit. So thoroughly have Democrats joined with Republicans in demonizing teachers and unions, that there is hardly a dime’s worth of difference between them on education issues. Things have gotten so bad that one Democrat espousing privatization recently co,pare the teachers unions to Alabama governor George Wallace, blocking children as they try to escape public schools to enter charter nirvana.

She writes:

“To begin to chronicle the origin of the Democrats’ war on their own—the public school teachers and their unions that provide the troops and the dough in each new campaign cycle to elect the Democrats—is to enter murky territory. The Clintons were early adopters; tough talk against Arkansas’s teachers, then among the poorest paid in the country, was a centerpiece of Bill’s second stint as Governor of Arkansas. As Hillary biographer Carl Bernstein recounts, the Arkansas State Teachers Association became the villain that cemented the couple’s hold on the Governor’s mansion—the center of their Dick Morris-inspired “permanent campaign.” The civil rights language in which the Democratic anti-union brigade cloaks itself today was then nowhere to be heard, however. And little wonder: Civil rights groups fiercely opposed the most controversial feature of the Clintons’ reform agenda—competency tests for teachers—on the grounds that Black teachers, many of whom had attended financially starved Black colleges, would disproportionately bear their brunt.

“Hillary made the cause her personal crusade in 1983, trotting out anecdote after anecdote about teachers she’d heard about who couldn’t add or read. The reform package passed, cementing Bill’s reputation as a new breed of Democratic governor, one who wasn’t afraid to take on entrenched interests in order to tackle tough problems. “Anytime you’re going to turn an institution upside down, there’s going to be a good guy and a bad guy,” recalls Clinton campaign manager Richard Herget. “The Clintons painted themselves as the good guys. The bad guys were the schoolteachers.”

“By the early 1980s, there was already a word for turning public institutions upside down: neoliberalism. Before it degenerated into a flabby insult, neoliberal referred to a self-identified brand of Democrat, ready to break with the tired of dogmas of the past. “The solutions of the thirties will not solve the problems of the eighties,” wrote Randall Rothenberg in his breathless 1984 paean to this new breed, whom he called simply The Neoliberals. His list of luminaries included the likes of Paul Tsongas, Bill Bradley, Gary Hart and Al Gore (for the record, Gore eschewed the neoliberal label in favor of something he liked to call “neopopulism”). In Rothenberg’s telling, the ascendancy of the neoliberals represented an economic repositioning of the Democratic Party that had begun during the economic crises of the 1970s. The era of big, affirmative government demanding action—desegregate those schools, clean up those polluted rivers, enforce those civil rights and labor laws—was over. It was time for fresh neo-ideas.

“Redistribution and government intervention were out; investment and public-private partnerships were the way to go. Neoliberal man (there are no women included in Rothenberg’s account) was also convinced that he had found the answer to the nation’s economic malaise: education, or as he was apt to put it, investment in human capital. “Education equals growth is a neoliberal equation,” writes Rothenberg.

“But this new cult of education wasn’t grounded in John Dewey’s vision of education-as-democracy, or in the recent civil-rights battles to extend the promise of public education to excluded African-American communities. No, these bold, results-oriented thinkers understood that in order to fuel economic growth, schools had to be retooled and aligned in concert with the needs of employers. The workers of the future would be prepared to compete nimbly in the knowledge-based post-industrial society of the present, For the stragglers still trapped in older, industrial-age models of enterprise and labor, re-training—another staple of the neoliberal vision—would set them on the path to greater prosperity….

“Today’s Democratic school reformers—a team heavy on billionaires, pols on the move, and paid advocates for whatever stripe of fix is being sold—depict their distaste for regulation, their zeal for free market solutions as au courant thinking. They rarely acknowledge their neoliberal antecedents. The self-described radical pragmatists at the Progressive Policy Institute, for instance, got their start as Bill Clinton’s policy shop, branded as the intellectual home for New Democrats. Before its current push for charter schools, PPI flogged welfare reform. In fact, David Osborne, the man so fond of likening teacher unions to arch segregationists in the south, served as Al Gore’s point person for “reinventing government.” Today the model for Osborne’s vision for reinventing public education is post-Katrina New Orleans—where 7,500 mostly Black school employees were fired en route to creating the nation’s first nearly all-charter-school-system, wiping out a pillar of the city’s Black middle class in the process.”

Read the article.

It brilliantly describes how Democrats attacked their own base, embraced Republican ideas, and merged their thinking with that of Republicans. A sure-fire recipe for disaster, since Republicans are so much better at being Republicans than Democrats are. You can’t win by destroying your base.

Most of the time, scandals come and go and no one remembers them after a day or two. But sometimes scandals cause a seismic reaction. Think Harvey Weinstein. Powerful men have sexually assaulted women in their employ and hoping to be in their employ or just in their proximity for as long as anyone can remember. Despite a number of high profile scandals, the larger phenomenon is ignored. Many people assumed Trump’s gloating about his sexual assaults would doom his campaign but it didn’t. Bill O’Reilly had to leave FOX news, but that passed. The Harvey story has gotten more attention and more outrage than any of the others.

Could the Ref Rodriguez corruption scandal awaken the public to the systemic problem of giving public money to private corporations and individuals without regular oversight and accountability? Could this be the Big One that tarnishes the privatization movement?

Nonprofit Quarterly writes:
“Something is rotten in the world of Los Angeles school board politics.

“Partnerships to Uplift Communities (PUC) charter school network founder and L.A. Unified School District Board member (and, until recently, board president) Refugio Rodriguez faces three felony charges, 25 misdemeanor charges, and conflict-of-interest allegations for laundering money in his school board campaigns in 2014 and 2015. Charges were filed last month by the city’s ethics commission.

“It might seem unusual that a charter school founder (and recent employee) would head the school board for a major city’s public K-12 system, but this was no accident. Rodriguez was part of a slate, “one of four board members who came into power with the strong backing of charter school supporters and who now make up a majority of the seven-member body.” As Rachel Cohen writes for The Intercept, Rodriguez “was backed by the well-heeled charter school movement, which spent more than $2 million to help elect him. This past spring, education reform advocates won three more seats, giving the board a slim pro-charter majority for the first time ever. Rodriguez was then elected board president in July.” After the ethics charges were filed, Rodriguez stepped down as board president, but remains a school board member.

“Then this past Monday, the other shoe dropped and a second investigation was launched. As another Los Angeles Times article explains, “Officials at PUC Schools, a local charter school network, have filed a complaint with the state Fair Political Practices Commission.”

The filing alleges that Rodriguez, who co-founded PUC, ordered the transfer of about $265,000 from PUC to a nonprofit that appeared to be under his control. An additional $20,000 went to a private company in which he might have owned a stake.

““PUC”, according to the Los Angeles Times, “operates 17 schools in Los Angeles and one in Rochester, N.Y. It is a nonprofit that operates under its own board, with L.A. Unified authorizing its local schools individually.”

“Last Friday, PUC accepted the resignation of Rodriguez’s cousin “senior manager Elizabeth Tinajero Melendrez. In PUC records reviewed by the Times, Melendrez is listed as the person who requested eight of the checks Rodriguez authorized, adding up to nearly $188,000.”

“As NPQ has reported previously, conflicts of interest, or even the appearances of them, put the entire organization at risk of losing its credibility. Jacqueline Elliott, the cofounder of PUC, has distanced herself from the scandal in the media, perhaps hoping to maintain the reputation of the charter network with funders. (Elliott is not under any investigation.)

“A large and complicated web of money and influence has been woven under the feet of Los Angeles’ education leaders. Untangling it will certainly cost the district time and credibility, especially since, as noted above, the balance of the school board recently shifted toward charter school supporters, who strongly supported Rodriguez and who now occupy four of the seven board seats.“

NPQ ends hopefully on the note that “Big money and scandal are not, obviously, necessary or even frequent companions to large charter networks.“

As we have seen time and again, “big money” is indeed a necessary and frequent companion of large charter networks. Whether scandal follows depends on the extent to which there is public oversight of public money.

Given the fact that the charter industry controls the school board in Los Angeles, don’t expect LAUSD to clean its own house. Expect it to join the coverup, even if Ref is thrown off the island as a necessary sacrifice.

Will the public wake up to the waste of their tax dollars? Will this scandal be the one that ignites outrage? Should the public pay $1 Million a year for visas for Turkish teachers? Should the public pay charter CEOs over half s Million a year? Should the public pay for executives at virtual charters who collect millions a year in compensation? Should the public turn a blind eye to the millions from hedge fund managers and other financiers and rightwing foundations that want to privatize public education?

When the editorial boards of the nation’s most powerful newspapers—the New York Times, the Washington Post, the Los Angeles Times— consistently defend private and unaccountable charters and support privatization, it makes you wonder how big a scandal is necessary before they wake up and defend the public interest? Do they know they are supporting the agenda of ALEC and Betsy DeVos? Do they care?

This looks like a good deal for the leaders of a charter school who were accused of misappropriating
Ropristing $3 million for their personal use. No jail time. A payback of $600,000 and pocket change. And an agreement not to lead any other charters until 2020. The fines apparently will be paid by insurance companies, not the defendants.

“The former leaders of a public charter school for disabled and at-risk teenagers have agreed to settle a District lawsuit alleging they sought to enrich themselves by diverting millions of dollars in taxpayer money meant for the school into private companies they created.

“Donna Montgomery, David Cranford and Paul Dalton, all former managers at Options Public Charter School, agreed to a collective settlement of $575,000, which will be paid to the school that now operates under new leadership as Kingsman Academy. Jeremy Williams, a former chief financial officer of the D.C. Public Charter School Board, who allegedly aided the scheme, agreed to a settlement of $84,237 in a separate deal signed last week. The defendants agreed that they would not serve in a leadership role of any nonprofit corporation in the District until October 2020.

“This settlement ensures that more than $600,000 in misappropriated funds will now go to Kingsman Academy to serve disabled students in the District of Columbia, and will deter future wrongdoing,” said Robert Marus, a spokesman for the Office of the Attorney General. “As the referees for the District’s nonprofit laws, our office will continue to bring actions against any who would misuse funds meant for public or charitable purposes.”

“A statement issued by attorney S.F. Pierson, who represents Dalton, said all three former managers “continue to contest the District’s claims and continue to maintain their position that they managed Options to the highest standards.” Pierson said the former school leaders are “not personally paying” anything to settle the District’s claims. It’s common that insurance plans cover litigation-related costs for nonprofit directors or corporate officers.”

This is a big win for the accused, but a loss for the disabled students, who didn’t get the services intended for them.