Archives for category: For-Profit

During this past two decades of “reform,” there has been a concerted effort to minimize or eliminate democratic control of public schools. Egged on by No Child Left Behind and Race to the Top, states and districts initiated state takeovers of entire school districts, which typically failed, and mayoral control, which substituted the singular judgment of the mayor for elected school boards. John Chubb and Terry Moe wrote a book in 1990, “Politics, Markets, and America’s Schools,” in which they argued that school choice was a panacea, and that democracy was the most essential obstacle to achieving that nirvana.

In this article, posted at Valerie Strauss’s “Answer Sheet,” Carol Burris and I argue that governance matters, and that democratic governance is a fundamental tenet of public education.

We have learned from the repeated errors of state takeovers and mayoral control, as well as charter school failures and voucher scams, that democratic accountability is essential to public education. The schools belong to the public, and they must not be handed off to grifters, celebrities, religious groups, or corporate charter chains.

Governance matters.

This is our article:

https://www.washingtonpost.com/education/2018/11/04/why-it-matters-who-governs-americas-public-schools/

This video is about the ECOT scandal, which siphoned hundreds of millions of dollars from Ohio’s public schools.

When you vote, think about the politicians who let this happen.

Jan Resseger sums up the many reasons to be optimistic about resistance to corporate education Reform.

Among them are the teacher walkouts this spring.

And much more.

The Reformers are no longer making grandiose claims. The evidence is in. They have no secret sauce. Just money. Lots of it.

Summary: Democracy beats billionaires.

The New York Times reported that Governor Rick Scott created a “blind” trust that was not at all blind. He has been plagued with ethical problems because…he is unethical.

TALLAHASSEE, Fla. — Rick Scott had been governor of Florida for barely three months when questions first mounted about conflicts of interest. Fabulously wealthy but a newcomer to politics, Mr. Scott mandated random drug testing for state workers in March 2011, and was pushing the legislature to require it for welfare recipients. The Republican governor, who had made his fortune as a health care executive and investor, also proposed reorienting the state’s Medicaid system toward managed care.

As it happened, those moves would have created vast potential markets for the chain of 32 urgent-care clinics that Mr. Scott had co-founded a decade earlier, after his forced resignation as chief executive of the hospital company Columbia/HCA. News reports about the governor’s personal stake in the Solantic clinics, which he transferred to his wife shortly before taking office, stifled the momentum of his first months in office.

To shield himself from future conflict charges, Mr. Scott, who is now running to unseat the incumbent senator Bill Nelson, created a $73.8 million investment account that he called a blind trust. But an examination of Mr. Scott’s finances shows that his trust has been blind in name only. There have been numerous ways for him to have knowledge about his holdings: Among other things, he transferred many assets to his wife and neither “blinded” nor disclosed them. And their investments have included corporations, partnerships and funds that stood to benefit from his administration’s actions.

Only in late July, when compelled by ethics rules for Senate candidates, did Mr. Scott disclose his wife’s holdings. That report revealed that his wife, Ann Scott, an interior decorator by trade, controlled accounts that might exceed the value of her husband’s. Their equity investments largely mirrored each other, meaning that Mr. Scott could, if he wanted, track his own holdings by following his wife’s.

The filing revealed that the Scotts together were worth between $254.3 million and $510 million. (The Senate requires that assets be valued only in ranges.) They own a beachfront mansion in Naples, Fla., valued at $14.1 million (along with a $147,000 boathouse) and a Montana residence on 61 acres worth $1.5 million. The governor, who has banked more than $200 million in investment income while in office, forgoes his $130,000 state salary and jets across Florida in his own plane.

If he wins a tight race for the Florida seat, which is central to control of the Senate, Mr. Scott could well become the richest member of the next Congress. His broad menu of investments might regularly present conflicts that require recusal. He has declined to say whether he would use a blind trust in the Senate, where the rules controlling them are far more stringent.

Mr. Nelson, a 76-year-old Democrat who is serving his third term, has made campaign issues of Mr. Scott’s wealth and the blindness of his trust. “Governor Scott has been in public service for himself,” he charged in August.

Time for Rick Scott to return to the private sector!

Vote for Bill Nelson.

For years, the politicians in Ohio took campaign contributions from the charter industry, let the charter lobbyists write the law regulating them, and ignored their frauds.

But the Electronic Classroom of Tomorrow went bankrupt, and the frauds could no longer be ignored.

Jan Resseger writes here that the ECOT scandal has turned charters into an election issue. This is good news for anyone who cares about accountability and transparency for public funds.

The surprise really ought to be that the 17-year, billion dollar ripoff of tax dollars by the Electronic Classroom of Tomorrow (ECOT) has remained among high profile election issues in this 2018 election season. After all, when USA Today profiled 28 American cities which have not yet recovered from the 2008 Recession, 9 of them were in Ohio: Warren, Youngstown, Mansfield, Marion, Lorain, Middletown, Sandusky, Akron and Dayton. Besides the economy, the opioid crisis is devastating parts of the state and healthcare more generally is an issue.

But the ECOT scandal hasn’t died as an issue on voters’ minds. Partly this is due to clever work by public education advocates and Democrats. When ECOT’s property was auctioned off, an anonymous purchaser paid $152 in taxes and fees to buy the costume of ECOT’s mascot, Eddy the Eagle. You can watch Eddy on twitter, @EddyEagleECOT, traveling to political events across the state carrying his “Ask Me About Mike DeWine” sign. DeWine, running as Ohio’s Republican candidate for governor, has been Ohio’s attorney general since 2010 but only filed a lawsuit to recover tax dollars lost to ECOT last winter as the school was being shut down.

Because of the way Ohio distributes state aid and the way its charter school law works, over its 17-year life, ECOT ate up local school operating levy dollars in addition to state aid. A tech-savvy opponent of Ohio’s entrenched Republican majority has now set up https://www.kidsnotcorruption.com/ , an interactive website which describes ECOT: “ECOT THE SCANDAL: Wondering just how bad is the ECOT scandal? Well, you should be angry because ECOT is the biggest taxpayer ripoff in Ohio history and Republicans are responsible. Sadly, it’s our kids who were hurt.” At this website it is possible to track how much each Ohio school district has lost to ECOT over the years: for example, from Cleveland’s schools, $ 39,405,981; from Columbus’ schools, $591,000,000; from Cincinnati’s schools, $ 14,648,988.

Several local school districts have now initiated legal action on their own against ECOT to recover lost funds, and three other school districts so far have filed in court to argue that they do not want Attorney General Mike DeWine, who earlier this year filed to recover funds from ECOT, representing them. The Dayton Daily News‘ Josh Sweigart reports: “Springfield City Schools is joining Dayton Public Schools and the Logan-Hocking School District in arguing in court that they don’t want the state representing them in getting money from ECOT. The school districts argue that Attorney General Mike DeWine—the Republican candidate for governor—is soft on charter schools and has received campaign donations from ECOT founder Bill Lager… DPS and Springfield are both working with the Cleveland-based law firm Cohen, Rosenthal and Kramer. The firm is working on a contingency fee, meaning it gets paid only if the districts succeed… (T)he districts are skeptical that DeWine would be as aggressive as their attorney.”

William Phillis, executive director of the Ohio Coalition for Equity and Adequacy of School Funding, notes, in his October 11, Daily E-Mail, that Attorney General Mike DeWine has filed a memorandum opposing the intervention of local school districts in this case on their own because their interest is “substantively remote from the claims” in the Attorney General’s lawsuit. Phillis notes that William Lager, ECOT’s founder and operator has made “essentially the same arguments” to oppose the intervention by specific school districts on their own behalf. Phillis comments: “It is curious that both the Plaintiff and Defendant in this case are on the same page. That accord might validate the importance of intervention by the districts. If they agree on this matter, maybe they will agree on more substantial issues.”

On October 8, the Cleveland Plain Dealer endorsed Cleveland attorney, Steve Dettelbach for attorney general in the fall election over his opponent Dave Yost, the current Republican state auditor. Yost was elected to that post in November, 2010. He has been accused of moving too slowly against ECOT, and the Plain Dealer‘s endorsement reflects this concern: “There is a tiebreaker in this decision however, and it comes in the form of the long-running ECOT… scandal that has hung like a millstone around the neck of a number of Republicans on the Ohio ballot this year who took large campaign contributions from those connected to the now-shuttered online school. That includes Yost, who announced he’s given more than $29,000 in ECOT-related contributions to charity but denies the campaign donations impacted his actions… But the fact remains that the whistleblower’s warning came in 2014 and Yost’s office did not start investigating with gusto until 2016.”

Read it all.

The politicians eagerly accepted ECOT’s invitation to be its commencement speaker. Even Jeb Bush flew to Ohio to testify to ECOT’s awesomeness.

Every politician in Ohio who facilitated and ignored this massive rip-off of taxpayer’s dollars and waste of kids’s lives should be voted out.

Mike DeWine was State Attorney General abd ignored the ECOT fraud; he is now running for Governor.

Dave Yost was State Auditor and ignored the fraud until it blew up in his face; he is running for Attorney General.

They are responsible for the state’s failure to monitor ECOT and for the favorable treatment ECOT received. Voters should hold them accountable for this massive fraud.

Bill Phillis of the Ohio Coalition for Equity and Adequacy noticed a curious phenomenon. The Ohio State Attorney General Opposes the efforts of school districts trying to recover funds they lost to the fraudulent Electronic Classroom of Tomorrow (ECOT), which went bankrupt last January, having claimed state funds for non-existent students and having lost its authorizer. Why is the Attorney General taking the side of the guy who was indicted?

Bill Phillis writes:

It is baffling that both the Attorney General and the ECOT Man, Bill Lager, oppose the intervention of school districts in the case to recover funds from Lager and some of his former employees.

In his October 9 Memorandum in Opposition to Intervention, the Attorney General argues, “The Districts cannot intervene…because their interest is substantively remote from the claims pressed here,” the Districts “lack standing” and “their intervention would complicate these proceedings.”

William Lager’s memorandum proffers essentially the same arguments against the intervention.

It is curious that both the Plaintiff and Defendant in this case are on the same page. That accord might validate the importance of intervention by the districts. If they agree on this matter, maybe they will agree on more substantial issues.

Boards of education in three districts-Dayton, Logan-Hocking and Springfield-have adopted resolutions to intervene. Other districts are considering a resolution.

William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540 | ohioeanda@sbcglobal.net| http://www.ohiocoalition.org

You must always remember that Betsy DeVos is working every day to promote vouchers and charters, no matter what story is in the headlines.

While the nation was obsessed with the crucial battle for control of the Supreme Court for the next generation, DeVos was busy promoting her privatization agenda.

Jeff Bryant has the story here.

We know, for example, that she handed out $399 million to the overfunded charter industry, which is riddled with fraud, conflicts of interest, nepotism, and profiteering. These are matters of no concern to DeVos, who supports the expansion of online charters, which have proven to be frauds, and for-profit schools, which have enabled widespread fraud in Michigan.

Bryant writes:

USDoE recently awarded $399 million in federal grants to expand and support charter schools across the country.

The grants, made through the Charter Schools Program, which has enjoyed a $40 million boost under the Trump administration, went to individual charter school operators and various state education agencies and nonprofit groups that either help secure funding for charters, push for their expansions, or advocate for the charter cause.

Even a cursory scan of some of the recipients warrants deeper scrutiny.

For instance, among three Alabama charter schools that received $1 million each in grant money, two have already been the subjects of multiple lawsuits.

Birmingham charter Legacy Prep – which recently changed its name, postponed its opening date, and has yet to find a building – just settled a messy court case with its founder – a Baptist church pastor – over who had authority over the school’s operations and whether the school’s governing board was properly constituted.

The court settlement follows closely after the Alabama Public Charter School Commission won its effort to overturn the Birmingham district school board’s original denial of the charter’s application. The district board had ruled last year that the school’s application did not meet the requirements of the district’s request for charter proposals.

So now, thanks to DeVos and her department, federal funds are going to a charter school under suspect leadership, with no building, that the district doesn’t want.

Similarly, another Alabama charter with a million dollar grant, University Charter School in Livingston, had to hurdle a lawsuit to open its doors.

In May, the county board that oversees the district filed suit to prohibit the charter’s authorizer from operating the school in a former high school that the district sold to the authorizer with the specific condition not to open a charter school in the building.

Here again, federal dollars are funding a charter startup in a local community that does not want it. So much for DeVos’s promises to curb the “overreach” of the federal government in education.

Supporting Rightwing Cronies

Another charter school grant winner on the list that deserves a closer look is the American Heritage Academy in Idaho.

The school’s founder Frank Vandersloot is a conservative billionaire, with a net worth of $1.9 billion, who was a finance co-chair of Mitt Romney’s 2012 failed presidential campaign and has given money to Florida Republican US Senator Marco Rubio, former Republican presidential candidates Carly Fiorina, the Republican National Committee, and state Republican parties across the US, according to a report in Forbes.

Vandersloot made national headlines in 2015 when he sued Mother Jones magazine for defamation after the news outlet published an article detailing his efforts to oppose gay rights.

Vandersloot has hosted a closed door meeting with President Trump at the headquarters of his company, Melaleuca. The company – which sells diet, personal care, home cleaning, and cosmetic products – has been compared to Amway, the mega-company DeVos is heiress to, in that it employs a multi-level marketing strategy.

Vandersloot and DeVos are, in fact, connected through their participation in a multi-level marketing trade group that has been active in promoting legislation that attempts to limit the Federal Trade Commission’s ability to investigate and prosecute multi-level marketing scam operations.

All the Things We Don’t Know

None of this is to consider whether Vandersloot’s charter school, or any of the other charter school grantees, may or may not be worthy institutions, but shouldn’t taxpayers know more about why the school deserves our money?

Should we know, for instance, why grant money will go to a North Carolina charter, the Charlotte Lab School, that touts racial diversity in its mission, yet has a student population that is two-thirds white in a district where only 30 percent of the students are white?

Should we know more about why a federal grant is going to a Kansas City charter school, Scuola Vita Nuova Charter School, that is located at an Italian Cultural Center and had to pay $30,000 to former principal who filed lawsuit claiming the school’s founder made her fire her same-sex partner who also worked at the school?

Because of DeVos’s general lack of transparency, what we’re left with, instead of answers, are more questions and a well-founded suspicion that her purpose in office is to purloin as much public money as she can into the hands of private interests while justifying it as a much-needed reform.

Perhaps if there’s a Democratic majority in the US House of Representatives after the upcoming midterm elections, there will be inquiries to reveal the inner machinations of DeVos’s department. But in the meantime, she and her associates toil away behind a shroud of scary headlines, and that’s just the way they want it.

You read that right. Democratic senators want an investigation of virtual charter schools, the kind that I have posted about here about 100 times. They read a report about how shoddy they are, written by the Center for American Progress. That shocked them. They say there is almost no research about these profiteering virtual charter schools that Betsy DeVos and ALEC adore. Apparently, the only research they ever hear about is whatever is written by the Center for American Progress, which loves charters but not vouchers.

Two Democratic senators asked Wednesday for the Government Accountability Office to launch an investigation into the practices and policies of virtual charter schools. The request comes on the same day the Center for American Progress released a report outlining stark academic shortcomings at these schools and a disproportionate focus on profit over quality.

The virtual charter schools have come under scrutiny in states including California and Ohio. But now Democratic Sens. Patty Murray (Wash.) and Sherrod Brown (Ohio) are calling for a more comprehensive look at how these schools work in the 27 states that house them. About 300,000 students attend these online public schools of choice. The enrollment has been steadily increasing over the years.

“There is almost no research on whether virtual charter schools meet student needs, especially for students who require specific accommodations, including English learners and students with disabilities,” says the letter from the senators.

Of course, they are wrong. There has been a great deal of research about the failure of virtual charter schools, much of it by Gary Miron of the Western Michigan University, published by the National Education Policy Center. Here is the latest.

The charter-friendly CREDO at the Hoover Institution at Stanford studied online charter schools in 2015 and determined that their students typically lost a full year of learning in math, and 72 days in reading. (p. 23). That’s like not going to school at all.

The first set of analyses examines the academic growth of online charter students compared to the matched VCRs made up of students who attended brick-and-mortar district-run schools. These schools are typically referred to as traditional public schools (TPS). Compared to their VCRs in the TPS, online charter students have much weaker growth overall. Across all tested students in online charters, the typical academic gains for math are -0.25 standard deviations (equivalent to 180 fewer days of learning) and -0.10 (equivalent to 72 fewer days) for reading (see Figure 3). This means that compared to their twin attending TPS, the sizes of the coefficients leave little doubt attending an online charter school leads to lessened academic growth for the average student.

In addition to research studies documenting the virtual charter sham, there have been many excellent pieces of investigative journalism, like Jesse Calefati’s series on K12, Inc. in California.

And I should mention that I devoted a chapter to virtual charter scams in my 2013 book Reign of Error: The Hoax of the Privatization Movement and the Danger to America’s Public Schools.

What kind of education staff do these senators have? Why is CAP their only source of information?

Over the years, it has become obvious that virtual charter schools are a sham. ECOT in Ohio was a spectacular failure, which made millions for its for-profit owner (“the ECOT man”) but cost taxpayers over a billion dollars that should have gone to public schools. The founder of the Pennsylvania Cyber Charter School is now in jail, convicted of stealing millions of dollars, but convicted only of tax evasion, not embezzlement. June Brown, who operated K12 Inc. schools in Pennsylvania, avoided conviction because of her advanced age (she kept the money).

K12 Inc. is perhaps the biggest of the shams because it has the most students. It is listed on the New York Stock Exchange. It makes handsome profits, but its students drop out at a high rate and get low test scores on state tests. The NCAA stripped 24 of the virtual K12 Inc. schools of accreditation a few years back after it discovered that students were often taking the K12 Inc. tests without bothering to first sit for instruction. NCAA officials saw tests that included “true-false” questions, and observed that students could take the test again if they failed. Any number of K12 Inc. virtual schools have been engaged in fraudulent practices that led to fines or even jail sentences for their operators.

K12 Inc. has been repeatedly criticized for the poor performance of its students. They start behind and they don’t catch up. See here. See here. See here. See here.

K12 Inc. originated with Ron Packard, who was paid $5 million a year to run it, Michael Milker, the ex-felon who invested in it, and Bill Bennett, the ex-Secretary of Education who was supposed to sell it to home schooling families (but had to step back after making a comment on his radio show that the best way to reduce crime was to encourage the abortion of black babies.)

Politico interviewed Kevin Chavous, a close ally of Betsy DeVos, who adores for-profit virtual charter schools. He promised to do better in the future.

K12 INC. PUSHES TO DO BETTER AMID CRITICISM OF VIRTUAL SCHOOLS: Low graduation and attendance rates have led to widespread scrutiny in recent years of virtual schools, which allow students to do Internet-based schooling on a computer at taxpayers’ expense. One of the largest providers is K12 Inc., which serves 110,000 students in 31 states.

— Kevin Chavous, a former D.C. council member and a founding board member of the American Federation for Children school choice group that Education Secretary Betsy DeVos used to chair, took over a year ago as president of the company’s academics, policy and schools group. He recently stopped by the POLITICO newsroom, and offered insight into work underway at K12 Inc. Here’s what he shared:

— Tracking students. Chavous said the company rolled out a new system to more closely track both student and teacher performance and focus on “aggressive engagement” to ensure students are logging on. Teachers and administrators are held accountable when students aren’t progressing. He noted that only 11 percent of K12’s first-time students are on grade level when they start, so many have a long way to go to catch up academically. “We are going to be very disciplined about making sure we have growth with all of our students,” Chavous said.

— ECOT collapse. Even though K12 wasn’t affiliated with the massive Ohio virtual school ECOT that closed earlier this year, Chavous said its collapse has been a wakeup call. He said about 4,000 of its former students moved to Ohio Virtual Academy, a K12 school. One big lesson is that the “onboarding process” is important, so he said in Ohio they’ve started requiring mandatory orientation so there’s a clear understanding among students and parents of what’s expected. Another lesson, he said, is that providers need a better understanding of each student’s academic needs from the get-go.

— Desperate parents. Chavous said he’s spent hours listening to inquiries from parents calling to ask about attending a K12 school. Nearly half are parents whose kids have been bullied, he said. “Ninety-five percent of those phone calls, the parents are full of desperation,” Chavous said.

— School violence. After school shootings, he said K12 sees an uptick in calls, and safety concerns are one reason parents like online education. “We’re filling a need that others aren’t filling. That means we do have a responsibility to fill that need academically in the right way. And … our company takes that charge on,” he said.

— Future of school choice. Chavous said he thinks DeVos’ support for virtual schools has had little effect on the work K12 is doing around the country. “It really hasn’t had an impact on policy shifts that we’ve seen,” he said.

Forbes reports on the investment strategy of billionaire hedge fund manager William Ackman. He makes money investing in charter schools and thinks he is “doing good” by undermining public education.

“It turns out that Bill Ackman is making good money in the most unexpected of places: financing charter schools for low-income kids.

“Since 2011, the billionaire hedge fund manager has invested $20 million of his own money in the Turner-Agassi Charter School Facilities Fund, which was started by former tennis star Andre Agassi and has built 79 new charter schools in poor neighborhoods around the country. The impact investment, which Ackman made via his charitable foundation, has netted annual returns north of 10%.

“Meanwhile, performance at his hedge fund has been languishing. Ackman has lost money for the past three years running, largely because of disastrous bets on two companies: Valeant and Herbalife. During that time, his net worth has dropped by more than half, to an estimated $1.1 billion. Recently he’s managed to turn things in the right direction, with his Pershing Square Holdings posting gains of 15.8% through September 30, according to the firm.

“Ackman’s foray into impact investing began in 2011 when Agassi, a tennis champ with eight Grand Slams under his belt, pitched him on his new fund, the Turner-Agassi Charter School Facilities Fund. Agassi, who had teamed up with professional impact investor Bobby Turner, promised Ackman that his capital would go toward the construction of 100 new charter schools for low-income children by 2020 in areas like the Bronx and Southwest Detroit—and that he would see double-digit returns, to boot. Ackman put in $10 million and agreed to take calls from other potential investors who were deciding whether to plunk down their own money. (Ackman, who began playing tennis at age 7, says he managed to beat Agassi in a doubles match—sometime after the two first met in 2011).

“With that, Ackman became a vocal and early proponent of impact investments, which are designed to reap a financial return as well as some positive social or environmental impact. His foundation has put a total of $42 million toward these investments in recent years, in areas ranging from affordable housing to financial inclusion to education…

“His largest impact investment to date is in the Turner-Agassi Charter School Facilities Fund, which has financed construction for 79 new charter schools that have served over 41,000 students since 2011. It generates returns for investors by leasing or selling new schools to charter school operators like KIPP at a profit. Ackman has put a combined $20 million into two funds. (Stewart Rahr, another U.S. billionaire and a Forbes 400 member, has put in $10 million.)..

“Ackman, who signed the Giving Pledge in 2012 and promised to donate more than half his wealth, has pledged or donated over $400 million to organizations like Teach for America and Human Rights Watch through his foundation.”

Someone should tell Mr. A koan that his investments and gifts are undermining a basic democratic institution and harming the teaching profession by sending inexperienced amateurs into classrooms to replace professional teachers. At the same time, he is helping to kill unions.

Maybe that, plus return on investment, is exactly what he wants.