Archives for category: For-Profit

Mercedes Schneider here reviews the transcript of a board meeting of Pearson in April 2014. Anyone can read the transcript but is allowed to quote only 400 words. That was Mercedes’ challenge.

What struck her was that Pearson’s business plan is heavily tied to adoption of CCSS. In this case, contrary to the assurances of Bill Gates, national standardization promotes monopolization, not competition.

What struck me was that the leaders of this behemoth, now taking control of large sectors of American education, had nothing to say about education. The discussion, not surprisingly, was all about profits and business strategy. Who decided to outsource American education?

Congress is considering new charter legislation, awarding more money to the charter sector, which will operate with minimal accountability or transparency.

The bill has already passed the House of Representatives with a bipartisan majority and now moves to the Senate.

Make no mistake: on the 60th anniversary of the Brown decision, Congress is set to expand a dual school system. One sector, privately managed, may choose its students, exclude those who might pull down its test scores, and kick out those it doesn’t want. The other sector–the public schools–must take in all students, even those kicked out by the charters.

One sector–the charter sector–may enroll no students with profound disabilities, while the public schools are required by federal law to accept them all. The charter sector may accept only half as many English language learners, while the public schools are required to accept them all. Some charter schools push out children who are behavior problems, the public schools must take them all.

This is a dual school system, one bound by laws, the other deregulated. One free to select the “winners, ” the other bound to accept all.

Will federally-funded charters be allowed to operate for profit, as many charters do? Will they pay their executives exorbitant salaries, of more than $400,000, as some charters do? Will they be exempt from nepotism laws, as many charters are? Will charter leaders be allowed to hire their relatives or give them contracts? Will they be exempt from conflict of interest and self-dealing laws, as they are in some states? Will members of the board be permitted to win profitable contracts from the board?

The growth of the charter sector has been driven by a strange coalition. Charters are supported by wealthy hedge fund managers who give generously to individual charters and to charter chains; they fund political candidates who support charters. Charters are supported enthusiastically by the Obama administration, which endorses the privatization of public schools. Charters are a favorite of conservative groups like ALEC (the American Legislative Exchange Council) and rightwing governors. Charters receive millions from some of the nation’s wealthiest foundations, including the Gates Foundation, the Broad Foundation, and the Walton Family Foundation.

This odd coalition doesn’t seem to care that it is reversing the Brown decision of 1954. The fact that charters are highly segregated does not trouble them. The fact that charters undermine public education, an institution that is basic to our democracy, does not trouble them.

The federal courts bore the historic burden of dismantling the long-established institution of legally-enforced racial segregation. Sadly, as new justices were appointed, the federal courts abandoned that role. The U.S. Department of Education too abandoned its once strong dedication to eliminating segregation and ignored its return. Both parties lost interest in integration. Imagine if the Obama administration had dedicated its $5 billion in Race to the Top funds as rewards for districts that increased racial integration. Instead, it initiated a pursuit of higher test scores, and dismissed segregation as yesterday’s issue.

Once there was a dream that American children could live and learn together. That was Dr. Martin Luther King’s dream. The charter movement says that dream is over, if it ever existed, and that the democratic dream of equal educational opportunity for all in common schools controlled by local communities is history, a relic of the past, replaced by the 21st century reality of a dual school system, separate and unequal.

Should we acquiesce in a social arrangement that we know is wrong? Should we celebrate the official approval of segregated schools? Should we hail Congress for bending to the new realities of segregation and academic apartheid? Should we cheer Congressional support for privately-managed schools that get public funds but are not subject to the same requirements of accountability and transparency as public schools?

The 60th anniversary of the Brown decision is a time to recall how far short we have fallen from our ideals. And a time to plan for the day when we can reclaim them and build the America we want for our children and grandchildren.

One of the nation’s leaders of the privatization movement, Ted Mitchell, has been confirmed by the. u.S. Senate as Undersecretary of Education, the second most powerful job in the U.S. Department of Education.

Mitchell most recently was CEO of the NewSchools Venture Fund, which collects millions from philanthropies and venture funds and invests the money in creating charter chains and for-profit ventures.

Among his many other accomplishments, Mitchell served as chairman of the State Board of Education for Governor Arnold Schwarzenegegger, a time of unprecedented expansion of charter schools and deep budget cuts for both K-12 piblic schools and public higher education.

Lee Fang

Barbara Madeloni, who led the fight against outsourcing teacher credentialing to Pearson, was elected president of the Massachusetts Teacher Association, will take charge of a union of 110.000 educators

“Until last August, Madeloni directed the Secondary Teacher Education Program at the University of Massachusetts.

“While UMass said her employment ended as part of a move to reduce the use of adjunct professors, Madeloni stated in interviews that the school was punishing her for opposing a project in which UMass tested a teacher assessment program for the for-profit company Pearson.

“Madeloni, 57, said in an interview Sunday she plans as MTA president to “amplify the voice of educators and be a leader at the national level.”

“She noted that her victory comes amid efforts in Los Angeles, Seattle and Chicago to shift the debate back to supporting high-quality public education and the people who provide it over the interests of for-profit companies in the field.

“It should be national news,” Madeloni said of her win in Massachusetts. “It’s a message to everybody that teachers will not be silent and compliant as this assault on public education continues — and undermines public education. This is foundational to democracy and we need to defend it.”

A teacher sent the following comment in reference to the requirement that all Common Core testing must be done online. Schools will lay off teachers and cut programs and services to pay for technology for testing:

“My campus has 1200 students and 32 computers in the lab. You do the math. We have to buy HUNDREDS of new computers, so that our primary-aged kids can take a test in the spring. Our district has frozen our salaries, cut staff, and cut our benefits…because our funding was also cut by our state…but we still have to come up with the $10 million that these computers will cost our district.”

Peter Greene, a man of infinite patience, watched a video in which Cami Anderson explains why she has the right to tell everyone in Newark what to do without listening to their opinions.

She compares herself to her sister, who is a surgeon. Her sister doesn’t ask the opinion of nobodies; she does what she has to do to save the patient’s life.

Greene points out to Cami that her sister is a highly trained professional who spent years learning her profession, whereas Cami’s five weeks of training in TFA is hardly equivalent. Furthermore, her sister operates with the consent of the patient and the patient’s family, and was not given consent to cut up the patient by Chris Christie.

The bottom line, Greene sees, is this:

“Democracy is stupid.

“Look, say the Reformistas. We are just better than you are. We are wiser, smarter, and just plain righter than the rest of you. So you should stop getting in our way. All of you lesser humans should stop insisting that you’re entitled to some sort of voice– you aren’t. Shut up, sit down, and let the superior humans take care of these difficult matters.”

Greene is not sure where Cami is, other than noting she is at Arizona State University/GSV. A few days ago, I wrote about the education “gold rush.” Cami is speaking to 2,000 entrepreneurs, hedge fund managers, and investors who are looking to make profits in education with the Next Big Thing. They paid $1,000-2,000 each to meet at the Phoenician Resort in Scottsdale. The meeting was co-sponsored by Global Silicon Valley, which leads the way in monetizing and privatizing education.

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