Archives for category: For-Profit

It seems like only yesterday that Governor RickSnyder appointed an emergency manager for the public schools of Muskegon Heights, which were running a deficit.

The emergency manager turned the district over to Mosaica, a for-profit charter chain.

But Mosaica didn’t make a profit, instead they ran a deficit, and their contract has been canceled“.

“Muskegon Heights Public Schools Emergency Manager Gregory Weatherspoon said the separation came down to an issue of finances. Mosaica, a for-profit company, was running a deficit budget and not making a profit. School officials said the split is not the result of dissatisfaction with academic progress of students in the K-12 Muskegon Heights Public School Academy.

“Weatherspoon said both Mosaica and the charter district board agreed the separation agreement was necessary.

“They came here to do a service for the children,” Weatherspoon said. “They got the job done, but it didn’t fit their financial model… The profit just simply wasn’t there.”

“At the core of the financial problems were investments into the school buildings, which Mosaica leased from the public school district for $1, as well as higher-than-expected special education costs and lower-than-expected enrollment. As the first charter school district in the nation, school officials have acknowledged there was a lot of uncertainty about costs when Mosaica took on the management role two years ago.

“Mosaica recently has had cash flow troubles that resulted in it seeking emergency advances of state aid in order to make payroll, which had to be delayed earlier this month. The management company, based in Atlanta, fronted $761,000 so that staff could be paid, Weatherspoon said.

The company will be repaid that money with a portion of a $1.4 million emergency state loan that Muskegon Heights Public Schools expects to receive on Monday, he said.

“Mosaica’s contract calls for it to receive about a $1 million annual management fee. It was paid the fee the first year of the contract, but not this year. This year, the company will receive $84,000 split over the next three months, which will help cover administrators’ salaries for the rest of the year, said John Gretzinger, an attorney for the charter district.

What do you say? Job well done? No profits to be found? Try, try again? What next?

Reader Michael Fiorillo deciphers the corporate reformers’ game plan:

The Final Solution to the Teacher Question:

– Proclaim austerity for the public schools, while continuing to expand charters.

– Create incentives for non-educators to be in positions of power, from Assistant Principal on up.

– Maintain a climate of scapegoating and witch hunting for “bad teachers,” who are posited as the cause of poverty and student failure, doing everything possible to keep debate from addressing systemic inequities.

– Neutralize and eventually eliminate teacher unions (the first part largely accomplished in the case of the AFT). As part of that process, eliminate tenure, seniority and defined benefit pensions.

– Create and maintain a climate of constant disruption and destabilization, with cascading mandates that are impossible to keep up or comply with.

– Create teacher evaluations based on Common Core-related high stakes tests for which no curriculum has been developed. Arbitrarily impose cut scores on those exams that cast students, teachers and schools as failing, as was done by NYS Education Commissioner John King and Regent Meryl Tisch.

– Get teachers and administrators, whether through extortion (see RttT funding) threats or non-stop propaganda, to accept the premises of “data-driven” everything, even when that data is irrelevant, opaque, contradictory, or just plain wrong.

– Get everyone to internalize the premises and language of so-called education reform:

– Parents are not citizens with rights, but “customers” who are provided “choices”
that are in fact restricted to the decisions of those in charge, based on policies
developed by an educational industrial complex made up of foundations,
McKinsey-type consultants and captive academics.

– Students are “valuable assets” and “products,” whose value is to be enhanced
(see the definition of VAM) before being offered to employers.

– Teachers are fungible units of “human capital,” to be deployed as policy-makers
and management see fit. Since human capital depreciates over time, it
needs to be replaced by fresh capital, branded as “the Best and Brightest.”

– Schools are part of an investment “portfolio,” explicitly including the real estate
they inhabit, and are subject to the “demands” of the market and the preferences
of policy-makers and management.

– Create an intimidating, punitive environment, where the questions and qualms are either disregarded or responded to with threats.

– Get the university education programs on board under threat of continuing attack. Once they are on board, go after them anyway, and deregulate the teacher licensing process so that it’s easier to hire temps.

– Eliminate instruction that is deemed irrelevant to the most narrowly-cast labor market needs of employers, getting rid of art, music, dance, electives, etc., thereby reducing the focus of education to preparation for passive acceptance of low-wage employment.

– Embed software and electronic gadgets in every facet of the classroom and school, from reading to test-taking, with the intention of automating as much classroom input and output as possible.

– Use the automation of the classroom to enlarge class size – something explicitly promoted by Bill Gates – and transform teachers into overseers of student digital production that is connected to massive databases, so that every keystroke is data to be potentially monetized.

– Cash your bonus checks, exercise your stock options, and declare Excellence and Civil Rights achieved.

It is curious that duo many supporters of the Common Core standards want choice among schools but celebrate the standardization and lack of choice among suppliers of education materials. They want to multiply choices of schools while standardizing learning and standing back while only two, perhaps three at most, mega-publishers create nearly identical products for the nation’s students and schools.

Robert Shepherd posted a comment about the death of competition in the marketplace for educational materials. Consolidation started years ago as large companies bought up small companies, and as small companies found they were financially unable to compete with the giant corporations. Those trends have accelerated to the point where only two or three corporations control the education publishing industry. He wonders if anyone cares. I say yes, but no one knows how to stop this monopolizing trend. We feel powerless. To whom do we direct our complaints? This is not an oversight. Creating a national marketplace for vendors of goods and services was an explicit purpose of Race to the Top.

Joanne Weiss, who was Arne Duncan’s chief of staff and who directed Race to the Top, wrote in The Harvard Business Review:

“The development of common standards and shared assessments radically alters the market for innovation in curriculum development, professional development, and formative assessments. Previously, these markets operated on a state-by-state basis, and often on a district-by-district basis. But the adoption of common standards and shared assessments means that education entrepreneurs will enjoy national markets where the best products can be taken to scale.

“In this new market, it will make sense for teachers in different regions to share curriculum materials and formative assessments. It will make sense for researchers to mine data to learn which materials and teaching strategies are effective for which students – and then feed that information back to students, teachers, and parents.”

This may explain why so many major corporations are enthusiastic about the Common Core. It promises them a national market for their products and bring America’s schools into the national economy, where consolidation reigns. Walmart wins, Amazon wins, Google wins, small-scale enterprises lose and disappear.

Robert Shepherd writes:

“I am despairing of anyone’s paying any attention to the consequences for markets in educational materials on the CC$$ and of inBloom.

“Perhaps we have become so used to people using political influence to fix markets in this country that they simply don’t think twice when they see another instance of this. Is that the problem? Or is it that people don’t understand why these dramatically reduce the number of players in the educational materials market? Or are people just fine with having a couple of all-powerful providers of educational materials and with having all the little companies go under. Maybe people are OK with curricula from the educational equivalent of McDonalds or Walmart or Microsoft.

“Even on this blog, when I post about these matters, there is very, very little, if any, response.

“When I started in the educational publishing business years ago, there were 30 companies competing with one another. When the teachers at a school got together to decide what book they wanted to use, there were many, many options. Now, there are three big providers that have almost the entire market. What were previously competing companies are now separate imprints from one company.

“And the CC$$ creates ENORMOUS economies of scale for those few remaining publishers, making it almost impossible for any other publisher to compete with them.

“And inBloom creates a single monopolistic gateway through which computer-adaptive online materials must pass. A private monopoly created by the state.

“Are people OK with this? Where are the articles and essays and speeches about these issues from those opposed to Education Deform? One can understand the silence from the deformers–they created these deforms precisely in order to ensure their monopoly positions. But . . . but . . . why the deafening silence from the other side?

Starting today, the nation’s leading entrepreneurs will gather for their annual conference at the Phoenician Resort in Scottsdale, Arizona, to exchange ideas about the ongoing monetization, privatization, innovation, and profits in the education “industry.” This summit was originally organized by Michael Moe, who has for years predicted that the education sector could be monetized. He was right. His company—GSV stands for Global Silicon Valley–says on its website: “Our founders have spent the past two decades focused on the Megatrends that are disrupting the $4 trillion global education market along with the innovators who are transforming the industry.”

Some of the sponsors: Pearson, the Gates Foundation, Microsoft, McGraw-Hill, Cengage, amazon, Scholastic, etc.

The speakers’ list reads like a who’s who of the privatization movement, which it is.

Penny Pritzker, U.S. Secretary of Commerce, billionaire heiress to the Hyatt fortune, former member of the board of Chicago public schools; Jeb Bush, Chris Cerf, Cami Anderson, Reed Hastings, Margaret Spellings, Tom Vander Ark, Kaya Henderson, James Shelton, Jonathan Hage, and many more in the business of education reform.

Stephanie Simon wrote about this GSV annual conference here for politico.com:

“ED TECH’S ‘DAVOS’ STARTS TODAY: Hundreds of ed tech investors and entrepreneurs will rendezvous in Scottsdale, Ariz., this week for the Education Innovation Summit. The massive meet-and-greet will surely be lively, as business is booming. The ed tech market has been on a sustained boom the past several years, with no signs of a slowdown: Capital flows into companies serving the K-12 and higher education markets jumped to $650 million last year – nearly double the $331 million invested in those spheres in 2009.

–“You’re seeing people who can invest money anywhere” turn to ed tech, said Michael Moe, co-founder of GSV Capital, a sister company to GSV Advisors. The rapid growth of companies such as Coursera, Edmodo and Knewton “attracts the big players,” Moe said, who see an opportunity for big profit. And the Common Core is helping the cause: The standards are making ed tech more attractive because entrepreneurs can now tailor their product to a single set of academic guidelines. Several notable investment deals have closed in the past month alone.

More for Pros, from Stephanie Simon: http://politico.pro/1pmsymu

Advocates for school choice like to say they believe in a free market in education. They say, let the consumer choose, let the market decide. And with this ideology, they merrily seek to undermine public education.

But is there a free market?

I received this comment from a reader:

“There is absolutely nothing “free market competitive” about the charter school movement. The only thing they are competing for is to strip away federal tax subsidies from public schools. I say, terminate all federal tax subsidies. Why should federal taxes subsidize Michael Milken? Public school funding should just stay funded by local taxes.

“The hedge funds are all good businessmen of course, because they smell the free government money. That’s what businessmen always do. Particularly Wall St. They love taxpayer guarantees.

“Free market competition means you are able to sell your product because it is better than the competition with NO government subsidy.”

Sol Stern of the rightwing Manhattan Institute is a fierce advocate for the Common Core Standards. He is a journalist of great rhetorical skill, not a classroom teacher or a scholar or researcher. Stern is a devotee of E.D. Hirsh Jr.’s Core Knowledge curriculum, and he thinks that Common Core will install CK in every school in the nation. He cant accept the reality that CCSS is not the vehicle to impose CK. It must be puzzling to him, if not infuriating, that his arch-enemy Lucy Calkins and her colleagues have written the best-selling book about the Common Core, called “Pathways to the Common Core.” That sort of thing can make a person cranky.

In his piqué, Stern wrote an article excoriating me for abandoning this great national experiment. He didn’t seem to notice that my major objection to the CC was not substantive but procedural–that is, the absence of participation of knowledgable parties in the drafting process, the lack of any effort to include early childhood educators or experts in educating students with disabilities or any classroom teachers, the absence of any means of appealing or revising the standards, the failure to try them out before imposing them nationwide–all of which made their implementation speedy but built distrust. Process matters. Democracy matters. I have consistently maintained that it is better to go slowly and get it right than to move fast and sow dissension and suspicion. Back when I was on the dark side, Sol was a friend, so I decided not to be offended by his unprovoked attack on me.

However Mercedes Schneider, who probably knows more about the Common Core than anyone else, decided to respond to Stern and set him straight. He responded to Schneider, dismissing her, a mere classroom teacher in Louisiana, with disdain. And here, in this new post, Mercedes Schneider–who is not only an experienced classroom teacher but holds a Ph.D. In research methods, again corrects Stern’s fundamental misunderstanding of the Common Core.

Our friend Edward Berger returned from a long period of rest, reading, and reflection, and he is back in fine form.

He wrote a letter to President Obama and the First Lady to warn of the damage their education policies are inflicting on the nation’s children, teachers, and schools.

He writes:

“Prior to your administration, with few exceptions, public schools were not created as sources of investment income or profit. Schools were run by democratically elected boards under state supervision. Schools were accountable for financial management and academic achievement. A proven (if not100%s effective) means of teacher accountability and school effectiveness was in place and functioning well in areas where great poverty and futility were not generated by our failed economic system.

“Prior to your administration, the tax dollars Americans pay for public education could not be accessed by profiteers or religious groups and cults. No taxpayer was forced to support a religion, ideology, or partial school with their education tax dollars.

“Sadly, strengthened by your administration, an unproven and false use of testing replaced the tests used by educators to understand student needs and to teach effectively. Data generated by wrong and unproven means is causing great harm to students and teachers throughout America. The only known beneficiaries of this drive for data are the corporations creating the tests, and the egos of billionaires who use their wealth to force their “hunches” on our schools.

“Your administration supports those who can buy access to schools and thus children’s minds. Your administration accepts the whims of billionaires who have no certification, little or no contact with professional educators, no concept of the history of American education and how education is delivered, and most devastating, they have very little concern for our children. Almost all send their children to separate schools that do not follow the rules your administration is instigating.”

And much more.

One of the most absurd conceits of the “reformers” is that they are leaders of the civil rights movement of our time. They bust unions. They strip teachers of hard-won due process rights. They include in their ranks the titans of Wall Street. How long can they pretend that they have any common ground with Martin Luther King Jr., who died while helping the sanitation workers of Memphis who wanted a union ?

In this post, Julian Vasquez Heilig conducts a mock interview with labor leader and civil rights leader Cesar Chavez. Heilig seeks to show how Chavez would see today’s Status Quo billionaires and their apologists.

A sample:

“Q: How about charter and voucher approaches that help the few at the expense of the many?

A: We cannot seek achievement for ourselves and forget about progress and prosperity for our community… Our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own.”

A teacher describes a new start up–open the link and see if you can find a teacher in the lineup of leaders–funded by Rupert Murdoch and aligned with the Common Core. Thar’s gold in them thar hills!

She writes:

“You probably know about this outfit already, but take a look at the team members of Teach Boost. Quite telling. I am enraged.

(By the way, we are not K-12 educators. We teach at-risk youth between 17-21 with the goal being passing the Test Assessing Secondary Completion (TASC) and college and career readiness. Of course, the test is Common Core-aligned, ensuring significant failure and dropout rates as we go forward.

Note in particular the connections to corporations, particularly Wireless Generation/Amplify:

https://teachboost.com/company/team

The TASC:

http://www.tasctest.com

Paul Rosenberg writes on Salon about the well-honed Fox-News style tactic of “crying wolf,” “the sky is falling,” we are in an “unprecedented crisis” to achieve political ends, in the present case, the privatization and monetization of public education. In urban districts, the privatization is gobbling up public schools and turning them over to private corporations–both for-profit and non-profit. In suburban districts, which are not prepared to relinquish their community public schools to charter chains, the gold rush is on to panic these districts into buying edu-schlock and paying consultants to train teachers to meet the federal government’s latest mandate.

What Rosenberg describes is what I earlier called the deliberate use of FUD–fear, uncertainty, and doubt–by the well-paid PR machine of the Status Quo privatizers.

Here is a small sample of Rosenberg’s comprehensive review of scare tactics and whom they benefit:

“In September 2012, for example, economist Jeff Faux, principal founder of the Economic Policy Institute, wrote an article, “Education Profiteering; Wall Street’s Next Big Thing?” which first noted, “It is well known, although rarely acknowledged in the press, that the [education] reform movement has been financed and led by the corporate class,” but then went on to note a crucial change:

In recent years, hedge fund operators, leverage-buy-out artists and investment bankers have joined the crusade. They finance schools, sit on the boards of their associations and the management companies that run them, and — most important — have made support of charter schools one of the criteria for campaign giving in the post-Citizens United era. Since most Republicans are already on board for privatization, the political pressure has been mostly directed at Democrats….

“What’s more, Faux noted, there was less money for Wall Street to play with from the sources they had burned, but the money-making opportunities in education were proliferating like never before:

“You start to see entire ecosystems of investment opportunity lining up,” Rob Lytle, a business consultant, earlier this year told a meeting of private equity investors interested in for-profit education companies….

“This is the context in which Andrew Cuomo hooked up with Wall Street, as the New York Times reported in May 2010. Cuomo’s ticket to Wall Street came courtesy of Joe Williams, executive director of Democrats for Education Reform, a PAC that “advances what has become a favorite cause of many of the wealthy founders of New York hedge funds: charter schools.” Members who met with Cuomo included “the founders of funds like Anchorage Capital Partners, with $8 billion under management; Greenlight Capital, with $6.8 billion; and Pershing Square Capital Management, with $5.5 billion.” But in retrospect, 2010 was nothing. As already noted, Cuomo has raised $800,000 from Wall Street charter school supporters — roughly half that total from Moskowitz supporters alone.

“The Philanthropic Dimension

“Money may be all the motivation Wall Street needs, but there’s more. Philanthropy has always been a means for the wealthy to extend their influence over society beyond the marketplace, to serve a multitude of functions. Northern philanthropists spent an enormous amount of money bringing education to Southern blacks after the Civil War, for example. This brought them into prolonged and complex conflicts with both Southern elites, who resisted virtually all education efforts, and with blacks who resisted the Northern philanthropists’ focus on industrial education (epitomized by the Tuskegee model), as well as their broader pattern of trying to appease Southern white racism. (See, for example,”The Education of Blacks in the South, 1860-1935.”) Although highly conflicted and complicated, these efforts eventually synergized with blacks’ own broader civil rights struggles to bring about the integration of public education in the South — at which time, Southerners’ first response was the policy of massive resistance, including the creation of private academies, and the closing of public schools.

“Amazingly, three decades later, the education panic reform movement began the process of recycling the racist Southern resistance strategies as general solutions for the purported failure of public education. Another three decades further on, those very same anti-civil rights strategies are now being touted as the key to civil rights. The reasons are at least partly psychological. After the financial crises decimated the economy, Wall Street elites and their 1 percenter allies were profoundly defensive, as seen most shockingly in remarks comparing their critics to Nazi Germany. But the “productive” manifestation of this same acute status anxiety was arguably much more destructive — that is, the intense desire to re-create themselves as moral leaders, not lepers, by recasting public education as a locus of evil, and portraying its destruction as “the civil rights struggle of our time” — which they, of course, would be only too happy to lead.”