Archives for category: Education Industry

 

A blogger who is a middle-school teacher with 30 years of experience writes here about how tests are the entry point for privatization. The privatized schools won’t get better schools but once they get their clutches on public schools, they don’t let go. The rewards of privatization are considerable. The private sector gets to seize the assets and resources of the public sector at no cost. What a deal. Entire communities have been gobbled up and disappeared.

“How can parents and communities end the insanity? Be informed. Click on the links to supporting materials if you want to know more. Go to nysape.org run by and for parents. Have your children opt out. Refuse consequential use of scores… including evaluating your child’s teacher, impacting your child’s access to gifted programs or remediation, your school’s report card. Demand that tests be used diagnostically not as a tool for stack ranking or predatory take over of public institutions. And, like all important things, remember that involvement is the key. The best school is not the creation of an external entity, but the product of the living partnership of a community. Instead of investing in high stakes testing, invest in a relationship with your child’s teachers. Partner with them and with the other stakeholders in the community. Together, we are responsible for the education of our children and for protecting a future in which they can participate fully. Be part of a thriving real community.”

I posted this report during the Obama administration. It remains timely since the for-profit higher education sector is having a renaissance under the leadership of Betsy DeVos, who is the best friend the predatory, for-profit higher education sector ever had.

As a private citizen, she invested in this squalid sector. As Secretary of Education, she has protected predatory for-profit institutions and even put one of their champions in charge of monitoring their behavior. A fox in charge of the henhouse. She has also cut back on federal efforts to help students who were defrauded by these institutions and left with a mountain of debt and a worthless diploma (think Trump U).

Here’s the lowdown: When your company is raking in profits, it can afford to hire top lobbyists. When you are operating in the public sector, you have to squeeze out the money to pay for any lobbyist.

I urge you to read this fascinating report on the predatory for-profit higher education sector, written before the Trump administration came into being by D.C. lawyer David Halperin. It is carefully researched and sourced. It is long, but has the interest level of a detective story. You will find villains in both political parties. You will find distinguished academics who sold their reputation to bolster a predatory for-profit institution. Behind most of the political squalor is one unifying theme: the power of greed.

It opens like this. I invite you to read the entire report to find out who is protecting the for-profit colleges that rip off American students:


Timothy J. Hatch and Ronald L. Olson are two of the most prominent and successful lawyers in Los Angeles. Hatch is a partner at the national litigation powerhouse firm Gibson Dunn. Olson, a name partner at Munger, Tolles & Olson, has represented some of America’s biggest corporations. He is a former chair of the American Bar Association’s Litigation Section, and today he serves on the boards of directors of Warren Buffett’s Berkshire Hathaway, the RAND Corporation, the Mayo Clinic, and the California Institute of Technology.

Both Hatch and Olson also have been for years key parts of the protective infrastructure that has shielded predatory for­-profit colleges, institutions that have deceived and abused U.S. students and taxpayers. Hatch has represented the giant publicly­traded for­profit college businesses Education Management Corporation (EDMC), Kaplan, and ITT Tech against charges of fraud, and he has sued the U.S. Department of Education to halt regulations that would hold poorly­performing colleges accountable. Olson is on the board of directors of Graham Holdings Company, which owns Kaplan, and his law firm has represented Corinthian in major fraud litigation ­­ which is fitting, as the Graham company owned a significant stake in Corinthian until its 2015 collapse. In the fraud case where Olson’s firm represented Corinthian, the other party that whistleblowers were suing was Corinthian’s auditor, giant accounting firm Ernst & Young. Their lawyer in the case was Timothy Hatch.

Although the notorious Corinthian Colleges is gone (sort of), many bad actors remain in business. Seven of America’s ten biggest for-­profit college companies, which collectively received about $8 billion dollars in taxpayer money last year, have in recent months and years been under investigation or sued by federal and state law enforcement agencies for deceptive business practices. Despite the mounting evidence that these seven companies ­­ Apollo/ University of Phoenix, EDMC, ITT Tech, Kaplan, Career Education Corporation, DeVry, and Bridgepoint Education ­­ have engaged in predatory behavior against their own students, they continue to market themselves as affordable places to build successful careers, and they continue to enroll new students and deposit their federal grants and loan checks. These companies also have continued to fight reform measures by government to hold bad schools accountable for abuses.

A key reason why such predatory for­-profit colleges have been able to continue receiving billions annually in taxpayer dollars while ruining the financial futures of students across the country is that national power players ­­ politicians, lawyers, academic leaders, celebrities ­­ have been willing to vouch for these companies, serving as their paid lobbyists, board members, investors, and endorsers. It’s not just Donald Trump who has made big money off a deceptive college operation.

Read on to learn who these power players are. You may be shocked. I was. After reading this, I felt that the whole political system is rigged to protect the predators. I went to wash my hands. Why is the “money all gone,” as reformers like to say when they explain why budget cuts are necessary? Because it is lining the pockets of the rich and connected.

Imagine if that $8 billion dollars were used to make community college free for all those who wanted higher education at a reputable university?

Hear are a few tidbits from this report:

● Department of Education data has shown that the University of Phoenix’s graduation rate for first­time, full­time students is about 16 percent, and that graduation rate for the school’s online programs is about 4 percent.

● A 2012 comprehensive investigative report on for­profit colleges by then­ Senator Tom Harkin (D-Iowa) found that the University of Phoenix spent $892 on instruction in 2009, compared to $2,225 per student on marketing, and $2,535 per student on profit. “This,” the report found “is one of the lowest amounts spent on instruction per student of any company analyzed.”

● Around 25 percent of University of Phoenix students default on their loans within three years of leaving school.

Read and gasp. And weep that students will continue to be defrauded by predatory corporations peddling online for-profit junk.

 

A county court in Florida threw out a challenge to a new state law allowing the state to locate charters over local objections and to draw on local revenues.

Charter industry advocates were elated.

“After a nearly five-hour hearing, Leon County Judge John Cooper wasted little time Wednesday in throwing out several school districts’ challenge of HB 7069, the controversial 2017 education legislation that created a new class of charter schools, among several other measures.

“Cooper found the law constitutional.

“He issued his ruling of summary judgment for the defendants — the Florida Board of Education, Department of Education, and intervening parents and charter schools — from the bench without boiling it down to writing. Lawyers for the two sides will submit suggestions for a written order within a week…

“The Florida Legislature created the Schools of Hope charter school system outside the control of districts. It directed local tax revenue away from the districts without school board approval. It changed the rules of the game for improving low-performing schools, in some cases taking operations away from the districts.

“It was really just a pure question of law,” Arnold said.

“Attorneys for the districts argued that the Legislature overstepped its constitutional authority. They pointed to the section of the state constitution that gives school boards the power to establish, maintain and operate schools within their political boundaries.”

Florida Republicans proved yet again that they don’t care about local control, only about the profits of the charter industry with which so many are financially connected.

Read more here: http://www.miamiherald.com/news/local/education/article208035184.html#storylink=cpy

 

This is a victory for parents, educators and other citizens who love public schools: The Kentucky Legislature passed a two-year budget that does not include funding for charter schools. 

The charter lobbyists are still working the halls, hoping to turn it around, but the clock is running out.

Two Louisville Republicans (where charters are likeliest to open) said they would not support funding charters if public school funding was cut. Public school funding was actually increased, but higher education and other government programs were cut.

Legislators understand that there is only one pot of money, and funding charters means less money for public schools. They may have paid attention to the failure of charters in their neighbor Tennessee, which have been divisive, expensive and ineffective.

 

 

Maurice Cunningham is a treasure. He follows the money involved in efforts to privatize public schools in Massachusetts. In this post, he takes issue with the Boston Globe writer Scott Lehigh, who has a sentimental attachment to privately run charter schools.

Leigh mocks the idea that “corporate reformers” are hell-bent on privatization. Such were the “fevered imagines” of charter opponents, he writes.

Cunningham responds:

“As someone who accurately identitied that raging fever I’ll concede that “corporate” reformers may not be the best description. Rather it was the hedge fund plutocrats of the Financial Privatization Cabal who were most responsible for seeking the privatization of public education.”

He then posts the list of campaign contributions—all staggeringly large—made by Families for Excellent Schools to the Massachusetts referendum about charter expansion in 2016 that caused that organization to be fined nearly half a million dollars by state campaign finance officials, banned from the state for five years, and shuttered.

Cunningham writes:

“Why deem the “corporate” reformers the Financial Privatization Cabal? Because most of the money came from hedge fund and other financial services titans. They ardently seek privatization. And as they knew transparency would be the death of their plot, their strategy depended on a secret cabal.”

Before he finished writing, he noticed that the former director of the disgraced FES is now leading the “Massachusetts Parents Union” and has been invited by the state board to represent parents. That’s a good one!

“Just as I was picking up Mr. Lehigh’s column off my twitter feed came tweets that Keri Rodrigues, former state director of now Banned-in-Boston Families for Excellent Schools and present state director of Massachusetts Parents United is invited to represent parents at DESE. I confess I know little of this and won’t say anything about DESE because … read the disclaimer below.

“But as I wrote in Why Massachusetts Parents United?, MPU is a front for the Walton heirs and other plutocrats tied up in the 2016 privatization campaign.

“DESE’s promotion of the MPU state director is consistent with my argument in Why Massachusetts Parents United? in that the invitation confers legitimacy on the organization that may help it attract attention from the press and add members – all useful when it comes time for the Financial Privatization Cabal to offer up a “parents group” to call for more privatization, including charters.”

As readers here know, I usually refer to the Privatization moment as “corporate reformers,” but Cunningham says it is more accurate to call them the “Financial Privatization Cabal.”

What do you think?

His last bit of advice: Follow the money. Dark Money never sleeps. When a parent group pops up and suddenly has a million-dollar budget, look for the source of the funding.

 

 

Maurice Cunningham is a political scientist in Massachusetts who follows the trail of Dark Money. “Dark Money” refers to groups that conceal their donors and that use phony front groups that pretend to be grassroots families and parents.

In 2016, the Bay State held a referendum on whether to expand charter schools, and the Dark Money flowed through a NYC group called Families for Excellent Schools. FES was a front for hedge fund managers, mostly from out-of-State. The pro-charter forces vastly outspent the teachers’ unions but the proposal was overwhelmingly defeated. It lost in every part of the state, e crept for a few affluent communities that never expected to see a charter school in their neighborhood. Most towns, especially those that already had charters, knew that the arrival of a charter meant budget cuts for their public schools, and they voted no.

After the election, state campaign finance officials punished Families for Excellent Schools for its lack of transparency. It fined the group nearly $500,000 and banned from Massachusetts for five years. Shortly afterwards, FES closed its doors.

But, Cunningham reports, the Dark Money has returned. 

First, it created a from group called Massachusetts Parents United, only three months after the 2016 election. This was supposed to be regular parents, right? But the money rolled in, more than any group of concerned parents could muster.

“Soon the plucky parents had a website, services of two political communications firms, several thousand members (so-claimed), and projected income of $1,500,000 and expenses of $800,000 for 2017. MPU operated under a sponsorship agreement with Education Reform Now, which bankrolls the millions that enables Democrats for Education Reform Massachusetts to fertilize state politics with dark money. MPU’s state director, who also served in that capacity for Banned-in-Boston Families for Excellent Schools, is on the Advisory Council of DFER Massachusetts.”

Does your local parents’ group have that kind of money? I didn’t think so.

“In the Empty Bottle I spelled out some of the contributions made by MPU’s funders to the 2016 charters campaign. Let’s update that first with contributions from WalMart heirs. Jim Walton gave $1,125,000 into the Campaign for Fair Access to Quality Schools. Alice Walton provided $710,000 to the Yes on 2 Ballot Committee and slipped another $750,000 of dark money into the coffers of the now Banned-in-Boston Families for Excellent Schools Advocacy. Thus the Waltons spent down the inheritance by $2,585,000 for Question 2.

“But the Walton Family Foundation, a tax deductible organ of the Walton family, had been putting upstream money into the Massachusetts charters effort for years. From 2010 through 2016, WFF gave over $12,000,000 to Education Reform Now (the Walton family sustaining the funder of a Democratic front is, uh, what?). WFF gave nearly $14,000,000 to the collapsed-in-corruption Families for Excellent Schools, almost half of that in the 2015 run up to the ballot question. Across those years WFF slid over $900,000 to the Pioneer Institute.

“Then there is the Longfield Family Foundation and its benefactor Chuck Longfield. In Empty Bottle I noted that Chuck Longfield had contributed $125,000 to two pro-charter ballot committees. When OCPF forced the disbanded-in-disgrace Families for Excellent Schools to disclose its donors, it revealed that Longfield had given another $600,000 in dark money. He also contributed to the weird Mekka Smith situation, which was also bound up in charters.

“The Barr Foundation is the charitable foundation of Amos Hostetter, who funneled $2,000,000 in 2016 dark dollars through the invested-in-iniquity Families for Excellent Schools Advocacy.

“The largest giver of dark money to formed-in-fraudulence Families for Excellent Schools Advocacy was its office mate engorged-in-effluvia Families for Excellent Schools Inc., which laundered $3,700,000 through FESA to Great Schools Massachusetts. On May 26, 2016 the Davis Foundation sent $100,000 to FESI and on November 2, 2016 another $10,000, and also invested $20,000 in Pioneer for “Project to Expand Educational Opportunity in MA.”

“Charters were killed off in 2016, you say? In Washington state charters failed at the ballot box in 1996, 2000, and 2004 before squeaking by on a fourth try in 2012, and that was with the help of the Gates family. Privatizers play the long game. Money never sleeps.”

What do they want? Why spend so many millions?

The Dark Money club wants privatization. They want to undermine public schools in the most successful state in the nation.

 

Stephen Dyer, former legislator and currently a senior policy fellow at Innovation Ohio, writes here that Ohio charter schools spend about the same as public schools but get far worse results.

It doesn’t matter whether one looks at the median or the mean, charters are faring poorly in the state.

Just look at the state’s own school grades, which he display on this post. There are far more failing charters than F-rated public schools.

Now the law should be changed to say that if a charter is failing, its charter is revoked and the students are able to flee to a public school.

Nick Trombetta, founder of the nation’s first cybercharter, will be sentenced on July 10.

He admitted stealing $8 million in public funds intended for his school.

The long-delayed sentencing hearing of former Pennsylvania Cyber Charter School CEO Nick Trombetta on charges of tax fraud and conspiracy is set for July, according to information filed Wednesday in U.S. District Court.

The July 10 sentencing will come nearly five years after Trombetta, 62, was indicted by a grand jury on 11 counts of tax fraud and conspiracy in August 2013. He pleaded guilty to conspiring to defraud the IRS in August 2016.

He faces up to five years in federal prison.

Trombetta siphoned $8 million from the Midland-based public school and used the money to stockpile retirement money and buy personal luxury goods for himself, his girlfriend and his family — including multiple homes and a twin-engine airplane.

The conspiracy involved Trombetta and several others – including his accountant, Neal Prence – moving the money to other companies created or controlled by Trombetta and filing false tax returns.

He had this great idea. Give a computer and distance instruction to students who enrolled. Collect full state tuition. He collected $10,000 per student and had 10,000 students. He was rolling in dough. $100 million. It is easy to let that kind of money go to your head or your bank account.

There are virtual charter schools operating across the country that are raking in lots of money that they don’t need or deserve. What should they do with it?

If every charter operator who used his school’s credit card as his personal piggy bank were put into jail, the jails would be overcrowded. If they happened to be privatized prisons, the charter industry would turn against privatization and demand decent public prisons.

 

Dora Taylor, parent activist, wonders why the Seattle school board would consider another Broadie, in light of the city’s horrible experience with another Broadie.

“Many of us painfully recall our last Broad Superintendent, Dr. Goodloe-Johnson and the pain she brought with her through school closings, successful programs being decimated, an increase in bureaucracy, nonsensical rifing of teachers and a regime of fear.

“This kind of disruption has been felt by other districts who hired superintendents trained by the billionaire Eli Broad who thinks all schools should be privatized.”

Peter Greene does his very best close reading of Arne Duncan’s bizarre article in The Washington Post in which he insists that his policies have NOT failed, contrary to the evidence and public opinion.

He begins:

Lately, a wave of apostasy has swept through Reformsylvania, and reformsters have stepped up to say that ed reform kind of, well, failed. Yesterday, just in time for April Fools Day, former secretary of education Arne Duncan (and current thinky tank fixture) took to the pages of the Washington Postto try his hand at some non-reality-based history and argue that ed reform has been a resounding success.

How has he managed this feat? Well, there are several tricks.

This damn guy

First, move the goalposts. All the way back to 1971. Fourth grade math and reading scores on the NAEP are up since then!! Why focus on fourth grade scores? Maybe because 17-year-old scores haven’t really moved much at all. And of course, reform hasn’t been in place since 1971– and most of that growth happened before modern ed reform ever took hold– you know, prior to those days when Secretary Duncan was explaining that American schools actually sucked? And all of this assumes that a single standardized math a reading score is a good proxy for the quality of the entire educational system.

Duncan has an explanation for those flat 12th grade scores– because the graduation rate is up, more weak students are taking the NAEP, and so keeping the scores flat is a win. Yay? Anyway, graduation rates are up, so that’s more proof of ed reform success, except that, of course, whether those diplomas actually mean anything other than districts have learned how to game the system with credit recovery and other baloney– well, never mind. There’s probably some real gain there, and that’s not a bad thing. The numbers are up, so woohoo…

[His] notion that test-based accountability “revealed” achievement gaps is baloney. Educators knew where the gaps were. We’ve4 always known where the gaps were. We’ve screamed about the gaps. I don’t believe any teacher in this country picked up test results and said, “I’ll be damned! I had no idea these non-white, non-wealthy students were having trouble keeping up!” At best, test-based accountability was a tool to convince policy makers who would listen to data spreadsheets before they would listen to teachers. And even then, policy makers didn’t look at the data and say, “Well, we’d better help these schools out.” Instead, all the way up to Duncan’s office, they responded with, “Well, let’s target this school for closure or conversion or a growth opportunity for some charter operators.”

This, it turns out, is another thing Arne “Katrina’s Destruction of NOLA Public Ed Is a Great Thing” Duncan counts as success- three million students in charter school. He cites Boston as a win (again, debateable) but ignores the widespread fraud, corruption and failure that charters have been prone to nationally…

Duncan has tried a variety of history rewrites for his administration (only politicians hated Common Core! charter school magic unleashed! ESSA was not a reaction against his work! CCSS should have been rolled out faster!) But all of his reflections stumble over the same problem– Duncan simply refuses to acknowledge the damage that his policies have done to public education. Here he is acting puzzled again–

[Duncan wrote:] Some have taken the original idea of school choice — as laboratories of innovation that would help all schools improve — and used it to defund education, weaken unions and allow public dollars to fund private schools without accountability.

No, Arne! Not “some.” Not some faceless mysterious group of folks. You. You and the people that you empowered and encouraged and cheered on and backed with your policies. You did that.

Well, as we have come to expect, Peter is right on target.

Charter schools are the gateway to vouchers. It is now widely understood that Arne Duncan and his friends paved the way for Betsy DeVos and her all-out war on  public schools. That is now widely recognized, even if Duncan doesn’t admit it.

Reform is failing, failing, failing. The public is wise to the reformers’ real goal, which is to privatize public schools and disparage teachers instead of confronting the real issues of poverty and segregation.

And nothing that Arne writes here changes that fact.