Archives for category: Fraud

Peter Greene explains school issues better than anyone. In this post in the Bucks County Beacon in Pennsylvania, he explains why vouchers fail, why renaming them doesn’t make them better, and why anyone who cares about the quality of education should forget about vouchers/ESAs.

He writes:

School Vouchers Have Been A Disaster—Now Advocates Are Trying To Rename Them

What you need to know about education savings accounts, a kind of “super-voucher.”

Although a sizable number of Republican candidates in the 2022 midterm elections who were counting on school vouchers to be a winning issue—including Tudor Dixon in Michigan, Kari Lake in Arizona, and Tim Michels in Wisconsin—went down to defeat, school vouchers are not about to go away. Voucher advocates are instead changing the name and pushing for education savings accounts (ESAs).

ESAs are legal in around 10 states so far, but if this new idea for promoting school choice hasn’t already been proposed in your state, it may be appearing there soon. Here’s what education savings accounts are, how they work, and what policymakers and families in your state should consider before rushing headlong into adopting this idea.

What Are ESAs?

Education savings accounts are a kind of super-voucher. While traditional vouchers give parents a chunk of taxpayer money that they could use for tuition at the school of their choice, an ESA gives parents a chunk of taxpayer money that they can spend on private school tuition or a variety of other educational expenses.

Tennessee’s ESA law offers a typical list of eligible expenses that not only include private school tuition and fees but also textbooks, school uniforms, tutoring, transportation to and from school, computer software, tech devices, summer school tuition, and tuition and fees at a postsecondary school.

ESAs provide a wider range of choices—and a wider range of ways for vendors to get their hands on education tax dollars without having to open a whole school to get voucher money.

ESAs also provide political cover. Vouchers have frequently been rejected by voters, so voucher proponents, on Twitter and in legislative discussions, have opted not to use the label of “voucher” for ESAs. They may further try to sweeten the rebranding by using terms such as “education scholarship accounts” and “education freedom accounts.”

The money comes to parents by way of a company hired to handle these funds. Step Up for Students and ClassWallet are two examples of these “scholarship management” companies. These companies handle the actual disbursement of the monies, often through debit cards; they also take a cut of the funding.

Where Does ESA Money Come From?

Funding for an ESA program can come from several different paths.

One pathway is via tax credit programs that allow corporations and individuals to contribute directly to “scholarship” funding while getting a dollar-for-dollar tax credit. Former Education Secretary Betsy DeVos proposed this on a national scale with her failed Education Freedom Scholarships.

Proponents like to say that tax credit funding does not involve any government spending, which is technically correct because the money never touches government hands. But because it is a tax credit, it does cost the taxpayers. A million dollars in tax credit scholarships means $1 million of revenue the government does not get, leaving a hole that must be made up either by raising taxes or cutting other state and federal programs. Kentucky set up tax credit scholarships to fund its ESA program; the tax credit scholarship program was thrown out in December 2022 by the state’s supreme court for being “unconstitutional.

Another pathway to ESA funding comes from new laws enacting “backpack funding,” where per-pupil funding that would have gone to the student’s home school district goes to the student’s ESA instead. This can be particularly damaging in states like Arizona, where the money is pulled from the student’s assigned district even if the student has always attended private school. In other words, the school’s operating revenue is reduced by the per-pupil funding, but its operating costs are reduced by zero dollars.

ESAs can also be funded by taking the money off the top of the state’s education budget, meaning the costs of the vouchers hit all school districts, whether they have students choosing vouchers or not.

In addition, a suggestion was made that pandemic relief funds be distributed via ESA-style programs (Oklahoma was one state that tried it).

GOP legislators have also tried to propose that federal funding intended for poor students or students with special needs, such as the Individuals with Disabilities Education Act (IDEA), be turned into school voucher programs, a particularly ironic proposal, as students usually give up their rights under IDEA when they move out of the public education system. This repurposing of federal funding for education will no doubt become part of the rhetoric used for ESA funding.

How Are Tax Dollars in ESA Spent?

Tracking how tax dollars are spent in ESA programs is difficult if not impossible because these programs have hardly any accountability.

ESAs, like vouchers, have proven to be a way to use public tax dollars to fund private religious schools. In fact, in states where voucher programs exist, vouchers primarily fund religious schools (particularly Catholic ones). While the separation of church and state, when it comes to education, is already being increasingly whittled away, ESAs, like vouchers, allow states to circumvent that wall entirely.

Further, there are few checks in place to ensure that ESA money is spent on legitimate education expenses. In Arizona, parents spent $700,000 of their ESA money on beauty supplies, clothes, and other questionable expenses. In Oklahoma, pandemic relief funds were disbursed ESA-style, and when news broke that about half a million dollars in funds had been used to buy things like Christmas trees, gaming consoles, and outdoor grills, the state passed the buck.

Ryan Walters, who was just elected as Oklahoma’s education chief, bragged that the private sector would be a “more efficient way” to handle the funds, and he gave ClassWallet freedom to administer the state’s ESA program. But ClassWallet has admitted that it has “neither responsibility for, nor authority to exercise programmatic decision making with respect to the program or its associated federal funds and did not have responsibility for grant compliance.” In other words, nobody is checking to see how the money is really spent.

In most ESA programs, parents can select from an official list of vendors. One might assume that such a list would include vendors that have been screened to make sure that they are qualified providers of high-quality materials and instruction, but one would be wrong. In many states, a vendor is included in the list after simply meeting some very basic requirements. Tennessee’s ESA program leaves oversight of education vendors largely up to the management of its private contractor. Arizona’s ESA program doesn’t even have a list of approved schools, vendors, or providers, leaving the destination of taxpayer funding up to the “discretion” of the account holder.

The argument is that free market forces will keep vendors in line and that parents’ ability to make choices will work better than government regulations. One might also argue that the Food and Drug Administration should be shut down and the market should be allowed to regulate food manufacturing behavior. If a company gets sloppy or cheap and starts producing poisoned food, the market will correct it. All we have to do is let some consumers be poisoned in the process.

Not only are taxpayers’ interests unguarded in ESA systems, but parent and student interests are unguarded as well. Parents have to navigate an unregulated marketplace, an asymmetrical market where sellers have far more information than buyers, and where marketing materials take the place of useful information.

What Risks Do ESAs Pose to Students and Families?

Whether school choice advocates are pushing vouchers or ESAs, they frequently fail to mention the most fundamental issue for students and their families—private schools do not have to admit anyone they don’t wish to admit, either by placing various barriers in the way (not offering transportation or meals) or by simply putting restrictions in place.

That was one of the takeaways from Carson v. Makin, a Supreme Court decision that declared that Maine must allow voucher money to go to religious private schools, even if they are clearly discriminatory. Many ESA laws include a sort of non-interference clause that declares that accepting voucher money does not make the school a state actor, and the state may in no way dictate to the school how it will operate. In other words, they may teach what they want and discriminate as they like, even if they accept taxpayer dollars. Students with special needs, as well as LGBTQIA+ students, find they may have far fewer “choice” options than others.

ESA programs fail to protect students in other important ways. Should a family run out of ESA money, or find that they’ve been bilked by a bad vendor, or even be dumped by a vendor that goes out of business midyear, there are no real protections for families of students. Some school choice advocates have suggested that this risk would be minimized by providing third-party consumer reviews via a service like Yelp. But generally, it’s assumed that the invisible hand of the market, wearing its caveat emptor ring, is supposed to do the job of quality oversight.

In one striking example, an ESA bill proposed in Utah in 2022 included a requirement that parents sign a statement that they “assume full financial responsibility for the education” of their child. That means if they run out of voucher money or get left high and dry by a bad vendor or find the vendor incompetent, they are on their own. Presumably, in such a situation, a student would have no recourse but to return to a public school, though that school might get zero funding for that student.

Do ESAs Improve Education Results?

Most importantly, study after study shows that voucher programs in all their forms do not foster excellence in education. ESAs are a newer creation and so have been studied less, but given that the ESA system has even fewer guardrails than traditional vouchers, there’s no reason to think that the educational results would be any better.

In any case, under ESA, poor educational outcomes would be the parents’ problem, and the solutions we’ve seen for this problem are grim.

For instance, some voucher proponents (including DeVos) suggest a low-cost use for vouchers would be microschools, in which a handful of students gather in someone’s home around a computer with some online lessons while an adult “coach” keeps an eye on things. It’s not anyone’s first choice for a great education, but if that’s what you can afford—well, enjoy your choice.

That is the heart of voucher programs, whether you call them vouchers or education savings accounts or freedom scholarship accounts; they get the government out of the school business and turn education into a commodity that is the responsibility of parents alone. In voucher world, the state hands you your debit card and washes its hands of you. “Enjoy your freedom, and good luck.” And if an excellent education is not readily available because the ESA money is inadequate or your child has special needs, and your local public school is struggling with reduced funding, well, that’s your problem.

It’s all about the three D’s—disrupt, defund, and dismantle. Call the voucher system whatever you would like, but it is about reducing education from a public good and shared societal responsibility to a simple consumer good.

This article was produced by Our Schools, a project of the Independent Media Institute.

Peter Greene

Peter Greene is a recently retired classroom secondary English teacher of 39 years. He lives and works in a small town in Northwest Pennsylvania, and blogs at Curmudgucation.

Periodically, the Network for Public Education sponsors a conversation with an important voice in education policy. On January 11, I interviewed Josh Cowen, Professor of Education Policy at Michigan State University.

Josh has been an insider in voucher research for almost 20 years. It’s a small club, and he knows the research and the researchers. Josh came to the conclusion that vouchers have been a disaster for the students who leave public schools, supposedly to be “saved” by them.

But he points out that 70-80% of the students who use vouchers were never enrolled in public schools. Many return to the public schools. The political pressure for vouchers comes from politicians and parents seeking a subsidy for students already attending private and religious schools. The claim that they will help “save kids from failing schools” is a hoax to cover up the real purpose of vouchers: to transfer funds to private and religious schools.

The discussion was oversubscribed. Many people who wanted to watch the zoom were turned away. You can watch the recording here. The link is at the bottom of the page.

Donna Ladd, editor and CEO of the Mississippi Free Press, writes here about the sustained rightwing effort to co-opt Dr. Martin Luther King’s legacy of militant resistance to racism and his dedication to telling the truth about our tarnished history. This is an important essay. It’s about a concerted attempt to hijack the words of Dr. King by those who hate his message. It’s about conservative white people like Chris Rufo and Ron DeSantis trying to use his words to prevent honest teaching about the history of racism. I have left the fund-raising appeals in the article because I hope you will send some money to this brave publication.

She writes, powerfully:

I grew up hearing people around me badmouthing Dr. Martin Luther King, Jr. To hear white folk in east central Mississippi in the 1960s and 1970s tell it, he was the very root of all evil, and everything wrong in their lives was his damn fault. He had marched in my hometown of Philadelphia, Miss., in 1966 amid violent chaos when I was a kid—he spoke near the murderers of James Chaney, Andrew Goodman and Michael Schwerner by law-enforcement officials.

Yes, Dr. King gave his life in the search for more love and less hate, but he was not only spreading a message of love, as so many white thieves of his legacy try to say today. His message was pure fire. And he was out to hold a mirror up to our nation about white Americans—not only Mississippians and southerners—using terror to maintain power over everyone else and to enjoy the fruits of that terrorism.

Throughout his life, Dr. King toiled and ultimately sacrificed his life in the fight to change power structures and systems established and enforced to keep white people on the top and Black people on the bottom. He wanted America to understand that enslaved people built this nation—after many of their enslavers figured out how to steal the land from Indigenous Americans and forcefully remove them from the land they coveted.

None of this history is pretty or honorable, and Dr. King never tried to say it was or to cover up any of it. He wanted it taught to every person in this country and certainly wanted children to grow up having learned the lessons of the past. He knew that the “arc of the moral universe is long, but it bends toward justice.” And he was blunt that he was not likely to live long enough to see that happen.

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When a white man shot him at the Lorraine Hotel in Memphis, Dr. King was more focused than ever on systemic racism and its links with poverty, and he was a harsh critic of capitalism and the Vietnam War. He was putting together the Poor People’s Campaign intending to occupy Washington, D.C., to bring more attention to the racism-poverty connection.

Of course, I didn’t know all that until I was well into adulthood. I knew most white folks in Mississippi hated him, and he was a martyred hero against racism. Like many Americans, I was fed the whitewashed version of Dr. King, which has worsened over the decades. I was nearly 40 when I studied with Dr.Manning Marable at Columbia University and learned the larger and more accurate history of Dr. King, Malcolm X, Marcus Garvey, and many Black freedom fighters. I’ve also read his speeches; I know fully what Dr. King was about and what he supported.

Just read his “I’ve Been to the Mountaintop Speech” in Memphis.

Now, 54 years after Dr. King went to Memphis to support a labor strike by sanitary workers, we see so many arrogant efforts by white Americans to remake him into their preferred hero—you know, the one who would tell us all now to forget all that sticky history and get along despite the systemic inequities our history embedded into our nation’s DNA.

It would be funny if it weren’t so sick and offensive. Right here in Jackson, a public-policy institute led by a former Brexiteer from the U.K. used a photo of Dr. King and his words out of context in a report a year ago to push legislation against so-called “critical race theory” in schools. Their report argued the precise opposite of what the Black freedom hero said or wanted. They even twisted his call for “being judged by the content of their character” out of context to make absurd statements about Dr. King, like this one: “Instead of celebrating the enormous achievements made since the Civil Rights Movement, critical race theory specifically rejects King’s color blind ideal and seeks to racialize every aspect of culture, sport, and public discourse.”

“Color-blind ideal”? That’s what this institute—and its board of prominent white Mississippians—think Dr. King meant by the need for white Americans to stop judging people by the color of their skin? Seriously? That’s some shoddy thinking. Or propaganda, as it were. Such cynicism can explain why this institute claiming Dr. King’s moral ground as its own has nine white men and two white women on its board.

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As we consider Dr. King’s legacy this weekend, we must study the whole legacy. No serious person can argue that he would want this nation to block the teaching of our full race history from colleges, schools and homes. No serious person would say that he would want us to simply be proud of how far we’ve come and not examine how far we’ve got to go—until that arc bends toward actual justice and inequity is no longer baked into our systems. No serious person thinks Dr. King would not want us to interrogate how and why inequity became baked into our systems and how to fix them so they don’t keep replicating themselves.

And no serious person would argue that Dr. King would not want the systemic history of slavery, massacres and lynchings that helped end Reconstruction and install Jim Crow, the story of little Ruby Bridges or our Medgar Evers or Lamar Smith down in Brookhaven, the story of ongoing attacks on public education since integration—or the full story of his real dreams taught to every American on this road to eradicating the baked-in legacies of racial suppression and white supremacy.

I get it. Complaining that teaching real race history is somehow “Marxism”—which no serious person would do, either—is bringing back the stunts and propaganda the rich and powerful white people used successfully to scare white folks back in the 1950s and 1960s and even inspire violence against Dr. King and Mr. Evers. The rewriting of history is sick politics. But it is a stunt that all serious people of any party who are, indeed, working not to judge people by their skin color must reject loudly and definitively.

Dr. Martin Luther King Jr. gave his life to speak truth to power. We owe it to him to continue doing just that.

Donna Ladd, Editor and CEO

[I am not inserting a link because I can’t find one. Google Mississippi Free Press. If you find a link, please send it.]

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Far-right extremists concocted a cascading series of so-called culture wars that have no basis in fact or reality. Their purpose is to undermine public trust in teachers and public schools, paving the way for divisive “school choice,” which defunds public schools.

Teachers are intimidated, fearful that they might violate the law by teaching factual history about race and racism. Students are deprived of honesty in their history and social studies classes. Schools are slandered by extremists. Needless divisions are created by the lies propagated by zealots whose goal is to privatize public funding for schools.

First came the furor over “critical race theory,” which is not taught in K-12 schools. CRT is a law school course of study that examines systemic racism. The claim that it permeates K-12 schools was created as a menace threatening the children of America by rightwing ideologue Chris Rufo, who shamelessly smeared the teachers of America as purveyors of race hatred that humiliated white children. Rufo made clear in a speech at Hillsdale College that the only path forward was school choice. The entire point of Rufo’s gambit was the destruction of public trust in public schools.

Then came a manufactured brouhaha over transgender students who wanted to use a bathroom aligned with their sexual identity. The number of transgender students is minuscule, probably 1%. And yet again there was a furor that could have easily been resolved with a gender-neutral bathroom. Ron DeSantis made a campaign ad with a female swimmer who complained that she competed against a trans woman. What she didn’t mention was that the trans woman was beaten, as was she, by three other female swimmers.

And then came the nutty claim that teachers were “grooming” students to be gay. Another smear. No evidence whatever. Reading books about gay characters would turn students gay, said the critics; but would reading about elephants make students want to be elephants?

Simultaneously, extremists raised loud alarms about books that introduced students to dangerous ideas about sexuality and racism. If they read books with gay characters, students would turn gay. If they read about racism, they would “hate America.” So school libraries had to be purged; even public libraries had to be purged. One almost expected public book burnings. So much power attributed to books, as if the Internet doesn’t exist, as if kids can’t watch porn of all kinds, as if public television does not regularly run shows about American’s shameful history of racism.

As citizens and parents, we must stand up for truth and sanity. We must defend our schools and teachers against libelous claims. We must oppose those who would ban books.

Of course, parents should meet with their children’s teachers. They should partner with them to help their children. They should ask questions about the curriculum. They should share their concerns. Learning benefits when parents, teachers, students, and communities work together.

During the Trump administration, Congress appropriated billions of dollars for COVID relief, mostly to help small businesses survive by paying their employees. The main relief was the Payroll Protection Program, which dispersed nearly $800 billion. The program was run through the Small Business Administration, and there was little, if any, oversight. Some businesses that didn’t need financial aid applied for money and got it.

Millions of dollars were paid out to businesses, churches, synagogues, private schools, charter schools, religious schools, and all sorts of other enterprises. Charter schools, which never lost funding, received more than a billion dollars and received six times as much COVID relief as public schools. Public schools were not allowed to apply for the PPP program. ProPublica created a site where you can see who received PPP money in any zip code.

In Kansas, a former legislator was just convicted of COVID fraud. His case was noteworthy because his calling card was his alleged deep religious faith. Just as interesting is the publication in which the story appears. It’s called Only Sky, and it is pointedly a voice for secularism in a region where Elmer Gantry could get rich every day at tent revivals. The story was written by Hemant Mehta.

Michael Capps, a former Kansas lawmaker who once sponsored a bill to put the words “In God We Trust” in every federal building, has been found guilty of committing COVID relief fraud and money laundering.

His career wasn’t supposed to end this way. In 2018, the Republican was appointed to the Kansas State House and won his own election bid later that year. Like other members of his party, he used his time in office to push Christianity on everyone. That’s why, in addition to his anti-trans and anti-abortion bills, Capps sponsored a bill to put “In God We Trust” in public buildings, including public schools….

Capps was defeated in 2020.

After losing that race, he could have just faded away. Instead, in 2021, Capps was indicted by a federal grand jury on charges of COVID relief fraud and money laundering:

An indictment filed by the United States Attorney’s Office for the District of Kansas says Capps bilked federal, state and local agencies for more than $450,000 in COVID-19 business recovery funds.

Capps inflated his payroll and applied for loans to pay employees who don’t exist, according to the indictment.

The federal indictment says Capps laundered hundreds of thousands of dollars in COVID relief funding through his businesses and charity between May and August 2020.

Why did Capps do it? Maybe because the words “In God We Trust” weren’t on the walls of his office building. Or maybe because criminals are criminals and Christianity makes for a great cover story to stop people from looking over you shoulder while you’re working on a scam.

Whatever the reason, a jury has now found Michael Capps guilty on 12 felony charges (out of a possible 18):

Capps defrauded Emprise Bank, U.S. Small Business Administration and Kansas Department of Commerce out of $355,550 in COVID-19 recovery funds, the jury found. He then transferred the money through business and personal accounts, including some money that went into investment funds.

Capps remains out on bond while he awaits his sentencing hearing, which is scheduled for March 10. He could face millions of dollars in fines and decades in prison.

He should be excited. That’s plenty of time to read the Bible over and over….

Again: This was a guy who spent his time in office pretending that Jesus made you a better person. He was a liar then. He’s a liar now. He’s a perfect example of why you should never trust a politician who takes the Bible more seriously than the Constitution.

It gets tiresome to read about the cheats, liars, grifters, and dishonorable people who rise to wealth and power. Thus it is a relief to read about a young woman who had neither wealth nor power, but something far more powerful: a moral core. A sure sense of right and wrong. Principles. Others could boldly lie or feign ignorance when testifying under oath. She couldn’t do it. She wanted to be able to look herself in the mirror every day without grimacing.

Ruth Marcus, the deputy editor of The Washington Post, wrote about her, a woman with more wealth and power than those she served because she has a clear conscience.

After I read the column below, I read the transcript of Cassidy’s interview with the January 6 Committee. She goes through the details of how she changed from a loyal partisan of Trump world to a renegade, more concerned with telling the truth than pleasing her handlers. She was without a job for a year, and she relied on a Trump world lawyer. He advised her to say as little as possible in answer to the Committee’s questions and to answer whenever possible, “I don’t recall.” He and others in Trump’s entourage promised to get her a good job, to take care of her, as long as she protects the team. They flattered her and told her that she’s doing a good job, she’s a member of the family, and they will always have her back. So much of it sounds like something out of The Sopranos. She wants to please them, but she also wants to tell the truth. At one point, as she is doing her best to please them, she admits that she is “disgusted” with herself.

A cynic might wonder why she had so many qualms about lying for a president who lied repeatedly every day. But then you remind yourself that she’s a young kid, not long out of college, working in a dream job. Of course she wanted to please her superiors in Trump world. Of course she was afraid that they would destroy her if she defected. But somewhere inside her was a moral core that required her to tell the truth.

Marcus wrote:

Cassidy Hutchinson knew better than to put herself in debt to what she called “Trump world.” As she would later testify, “Once you are looped in, especially financially with them, there is no turning back.”

But Hutchinson, who witnessed the final days of the Trump White House from her all-access perch as an aide to Chief of Staff Mark Meadows, had been subpoenaed by the Jan. 6 select committee. The deadline for turning over documents was looming, and Hutchinson was, she said, “starting to freak out.” One lawyer she consulted said he could assist — then demanded a $150,000 retainer.

So, the young aide, out of work since Donald Trump had left office a full year earlier, initially decided to turn to Trump world for help. Which is how she came to receive a phone call from Stefan Passantino, previously a lawyer in the Trump White House counsel’s office.

“We have you taken care of,” he told Hutchinson. When she asked who would be paying the bills, Passantino demurred — this despite legal ethics rules that let attorneys accept payment from third parties but only with the “informed consent” of their client.

“If you want to know at the end, we’ll let you know, but we’re not telling people where funding is coming from right now,” Hutchinson, in her deposition, recalled him saying. “Like, you’re never going to get a bill for this, so if that’s what you’re worried about.”

If Hutchinson’s live testimony before the select committee was riveting, her deposition testimony, taken several months later and released Thursday, is a page-turner: The Godfather meets John Grisham meets “All the President’s Men.” Before, we could only imagine how frightening the situation must have been for the 20-something Trump staffer. Now, we can read of her frantic search for help, and her terror as she contemplated telling the truth.

It is a tale, at least in Hutchinson’s telling, of Trump allies dangling financial support in exchange for unyielding loyalty. “We’re gonna get you a really good job in Trump world. You don’t need to apply other places,” Passantino assured Hutchinson. “We’re gonna get you taken care of. We’re going to keep you in the family.” The goal, as he set it out, was clear: “We just want to focus on protecting the President.”

It’s a story of meek compliance enforced by fear of consequences — and menacing admonitions to remain on board. “They will ruin my life, Mom, if I do anything they don’t want me to do,” Hutchinson told her mother when she offered congratulations about finally securing a lawyer.

The night before her second interview with the committee, an aide to Meadows called Hutchinson about her former boss: “Mark wants me to let you know that he knows you’re loyal and he knows you’ll do the right thing tomorrow and that you’re going to protect him and the boss. You know, he knows that we’re all on the same team and we’re all a family.”

Most vividly, it is a chilling account of questionable legal ethics practiced by Passantino who, in a plot twist worthy of a Hollywood scriptwriter, was the Trump White House’s chief ethics officer. Passantino is depicted repeatedly advising Hutchinson to fall back on an asserted failure to remember anything. “The less you remember, the better.”

Except Hutchinson did remember — and quite a lot. Such as the incident in the presidential limousine, as related to Hutchinson by deputy chief of staff Tony Ornato, in which an enraged Trump allegedly lunged at his lead Secret Service agent when he refused to take the president to the Capitol on Jan. 6.

When Hutchinson mentioned this episode to Passantino shortly before her first interview with the committee, “he’s like, ‘No, no, no, no, no. We don’t want to go there. We don’t want to talk about that.’” The committee, he said, “have no way of knowing that. … But just because he told you doesn’t mean that you need to share it with them.”

Deposition prep with Passantino seemed confined less to reviewing the facts than to instructing the witness in the art of declining to disclose them. “He was like, ‘Well, if you had just overheard conversations that happened, you don’t need to testify to that,’” Hutchinson said.

“Stefan never told me to lie,” she told the committee. “He specifically told me, ‘I don’t want you to perjure yourself, but “I don’t recall” isn’t perjury. They don’t know what you can and can’t recall.’” Hutchinson pressed him on this matter. “I said, ‘But, if I do recall something but not every little detail, Stefan, can I still say I don’t recall?’ And he had said, ‘Yes.’”

A week later, appearing before the panel, Hutchinson found herself peppered with questions about the Trump limousine incident. She kept saying she hadn’t heard anything like that — and Passantino sat silently by as his client offered testimony he knew to be false.

“I just lied,” a rattled Hutchinson told Passantino during a break. “And he said, ‘They don’t know what you know, Cassidy. They don’t know that you can recall some of these things. So you saying “I don’t recall” is an entirely acceptable response to this.’”

No, no, no. Lawyers advise their clients not to volunteer information — that’s appropriate. They instruct them to give limited answers, confined to the precise scope of the question — that’s appropriate, too.

But lawyers — at least lawyers who want to keep their law license — do not provide the kind of counsel that Hutchinson describes. There is no “overheard” or “I don’t recall” loophole if, in fact, you did hear something and you do remember it. Ominously for Passantino, the deposition transcript reveals that Hutchinson provided the same information to the Justice Department.

Passantino, who has taken a leave of absence from his law firm to “deal with the distraction of this matter,” said in a statement that he represented Hutchinson “honorably, ethically, and fully consistent with her sole interests as she communicated them to me” and believed she “was being truthful and cooperative with the Committee throughout the several interview sessions in which I represented her.”

In the end, Hutchinson decided she could not accept such advice and still look at herself in the mirror. So, she dumped Passantino and decided to spill what she knew to congressional investigators.

“To be blunt, I was kind of disgusted with myself,” Hutchinson said. “I became somebody I never thought that I would become.”

To read her deposition is to wonder: What do the others in the Trump crowd see when they look in the mirror?

Politico reports that there was no sweep for partisans of the culture war issues. We can expect to see more attacks on teachers, students, and school boards in the next election, based on hyped-up falsehoods about race and gender. Support from rightwing conservative foundations—the usual suspects—will keep alive the battles and the fake organizations leading them. (Expect a special report soon from the Network for Public Education on these front groups attacking school boards, written by an authority on Dark Money).

Juan Perez Jr. of Politico writes:

THE DIVIDED CLASSROOM — In case you missed it amid the advertising noise and campaign spending avalanche of November’s midterms, 2022 proved to be an incredibly busy — and contentious — year for education elections.

Fifteen states and the District of Columbia held state school board or education superintendent races this year. Roughly 1,800 local board seats across some 560 districts in 26 states were also up for grabs on Nov. 8, according to the nonpartisan nonprofit Ballotpedia.

Who came out on top? Nobody. Neither Democrats nor Republicans managed a clean sweep.

This means the state of education in the United States remains divided sharply along partisan lines — and the education wars are likely to continue unabated in 2023 and beyond.

The bitter differences between the two sides and lack of consensus between the poles of both parties — over everything from teaching about slavery and gender identity to childhood vaccinations – offer little incentive for either side to back down.

“We are stopping Critical Race Theory from being taught, stopping access to obscene pornography in our schools, and ending the tenure of radicalism and indoctrination of our kids because the left is waging a civil war in our classrooms,” newly-elected Oklahoma State Superintendent Ryan Walters recently wrote in the Daily Caller.

Candidates who supported having race and sex-related curricula or Covid-19 safety requirements in schools won about 40 percent of the roughly 1,800 local board elections tallied by Ballotpedia this year, and tended to win in counties President Joe Biden carried in the 2020 election. Candidates with opposing views won about 30 percent of their elections, often doing so in counties held by former President Donald Trump.

Nearly one-third of incumbent school board members also lost to their challengers on Nov. 8.

“People didn’t feel listened to. Parents felt they lost agency and power over their kids’ education,” Randi Weingarten, president of the American Federation of Teachers labor union, recently told Nightly. “My concern is that we can’t have two countries. This is one United States of America, and we have an obligation to help kids — regardless of whether they’re in South Carolina, Tennessee, New York or California — to learn how to critically think.”

As they turn toward 2023, Democrats take solace in battleground state victories for governor, successful education-related ballot measures and local school board races where moderate incumbents defeated far-right challengers in Louisville, Ky., the suburbs of Austin, Texas, and other places.

Sure, conservatives lost plenty of races. But they won more than enough to show their brand of culture-based education politics thrives in areas controlled by the party faithful. Trump seems to have this on his mind, too. The former president promised schools would lose their federal funding if they don’t get rid of critical race theory, and what he described as “radical civics and gender insanity,” when he announced his reelection bid.

No state school boards with elections this year flipped partisan control, according to the National Association of State Boards of Education. But majority parties did expand their influence on boards in Colorado, Kansas and Utah while conservative incumbents often lost primary challenges.

Candidates endorsed by two upstart GOP-aligned political committees also won roughly half of their midterm elections.

Candidates backed by Moms for Liberty, a group formed by a former Florida school board member to fight school Covid-19 mask requirements and controversial library books, won about half of their 2022 elections, according to the organization. The 1776 Project PAC, a group opposed to the critical race theory academic framework that examines how race and racism have become ingrained in American institutions, saw a similar win-loss ratio.

Open the link to read more.

The U.S. General Accountability Office is a federal agency that reviews federal programs and informs Congress about problems and progress. The GAO is expected to be nonpartisan and highly competent.

But when the GAO was asked to report on the number of federally funded charter schools that closed or never opened, its count fell dramatically short, according to Carol Burris, executive director of the Network for Public Education. Burris was lead author of two reports that found that a large percentage of charter schools funded by the federal Charter Schools Program closed within their first five years or never opened at all. Read those reports here and here. Now she finds that the GAO is asleep at the wheel.

Burris wrote to the GAO to ask it to correct its findings. She gave specific examples of charter schools that disappeared, yet were counted by GAO as open. The agency stonewalled.

Why does this matter? The Department of Education issued new regulations for the federal Charter Schools Program (CSP), banning for-profit charters from receiving federal funding and requiring greater transparency. The charter lobby has vigorously resisted both demands. This week, friends of the charter lobby will attempt to overturn the new CSP regulations, enabling profiteers to continue to grab federal dollars and incompetent charter managers to do the same.

Carol Burris reported her efforts to correct the GAO report at Valerie Strauss’s “Answer Sheet” blog on the Washington Post.

Valerie Strauss wrote the introduction:

In October, the U.S. General Accountability Office (GAO) released a report titled “Charter Schools That Received Federal Funding to Open or Expand Were Generally Less Likely to Close Than Other Similar Charter Schools” in response to a congressional request. The report looked at data about the federal Charter School Program, which over several decades has awarded billions of dollars in grants for the expansion or opening of charters. These schools are publicly funded but privately operated, often with minimal or no oversight from a governmental agency. The GAO said in part:


“The Department of Education awards Charter Schools Program (CSP) grants to help open new charter schools or replicate and expand high-quality charter schools, among other things. While few charter schools closed overall, charter schools that received CSP awards closed at lower rates than similar charter schools that did not receive an award between fiscal years 2006 and 2020. GAO’s analysis found, for example, that within five years after receiving CSP awards, CSP-recipient charters schools were about 1.5 times less likely to close than similar non-CSP charter schools—with an estimated 1.4 percent and 2.3 percent closing, respectively. Within 12 years of receiving CSP grants, the same pattern generally held. The pattern also generally held for CSP-recipient charter schools regardless of the schools’ grade level, locale, student body racial and ethnic composition, or percentage of students receiving free or reduced-price lunch.”


This post, written by Carol Burris, an award-winning former New York high school principal and now executive director of the advocacy group called Network for Public Education, raises questions about the report, saying that the GAO “used outdated charter school status data as the basis of their descriptive analysis.” She explains below how she came to that conclusion.

Burris has written previously on the charter school program on this blog (for example, here and here), and in the following piece she takes issue with some of the GAO’s data and report results. The Network for Public Education is an alliance of organizations that advocates for the improvement of public education and sees charter schools as part of a movement to privatize public education.

The GAO denied that it used outdated data and said it stands by the report. It said that it needs “to use rigorous methodologies that are acceptable to social scientists and statisticians and can withstand scrutiny.” You can see its full response at the end of the piece.

The Department of Education was also asked for a comment and provided a short one that did not directly address the GAO report or Burris’s critique. It said in an email: “Our administration is committed to supporting high-quality public charter schools, as reflected in the president’s budget. And we’re committed to accountability, transparency and fiscal responsibility in the federal charter school program, as reflected in our regulations.”

Burris said her data shows significant undercounting by the GAO of charter schools that closed after receiving federal grants from the Charter School Program — either through state governments or from the Education Department. She said she shared her data with the GAO on numerous occasions.After repeated scandals in the charter school sector and negative fiscal impacts on public school districts from charter expansion, the Biden administration this year made changes to the Charter School Program in an effort to stop waste and fraud and bring more transparency to charter school operations.

In September, the U.S. Education Department’s Office of Inspector General released an audit of the nearly 30-year-old federal Charter School Programs that found, among other things, that charter school networks and for-profit charter management organizations did not open anywhere near the number of charters they promised to open with federal funding. Previous investigations by an education advocacy group, the Network for Public Education, which opposes the growth of charter schools, had found similar problems. (You can read my stories about their “Asleep at the Wheel” reports here and here.)


By Carol Burris


Congress last year directed the Government Accounting Office (GAO) to investigate the controversial federal Charter Schools Program (CSP), which was the subject of regulatory reform by the Biden administration this year. In a 2021 appropriations bill, the House Committee on Appropriation said:


“The Committee requests GAO to provide a report to the Committees on Appropriations on the Department’s oversight over CSP and whether the program is being implemented effectively among grantees and subgrantees. The report should include an analysis of CSP grant amounts over time that supported charter schools, with a particular focus on schools that eventually closed or received funds but never opened; the relationships between charter schools supported by CSP grants and charter management organizations; and an analysis of enrollment patterns at these schools, especially for students with disabilities. The report should examine ways to improve the Department’s oversight of CSP as well as make recommendations on potential legislative changes to the program that would reduce the potential for mismanagement and ineffective operations.


The GAO report published in October does not address all of Congress’s mandate to, and, according to my research conducted over several months, severely undercounts the number of closed CSP schools and the federal dollars spent on them. In addition, that error has a ripple effect on findings throughout the report. What follows explains what went wrong, and the facts that back up these conclusions.

GAO’s numbers don’t add up

The published report, which covered only a small part of the congressional investigatory request, examined three programs, which they refer to as (1) the State Educational Agencies/State Entities Awards, (2) the Charter Management Organizations (CMO) Awards, and (3) the Non-State Educational Agencies/Developers (Developers) Awards. The report contains a descriptive analysis of grants to schools that closed or never opened and a comparative probability analysis of grant recipients (new schools only) closing during their first 12 years. The comparative probability analysis, which became the headline for the report, was not part of the congressional request. Its findings are misinterpreted in the headline of the report.

This post, however, focuses on the requested descriptive analysis, which reported the present status (open, closed, future, will not open) of CSP awardee schools and how much was spent on those that never opened or closed. Its source was a data set given to the GAO by the U.S. Department of Education. That data set includes program information, school names, award years and amounts, identifying details, and a status for each grantee school — open, closed, opening in the future, will not open, or undetermined (as indicated by a blank) when their grant is complete.

In 2019, the department published a detailed data set of CSP awards, which you can find on the department’s website here. Most of that data set, specifically awards from 2006 through 2018, is a subset of the data set given to the GAO. The data set provided to the GAO also includes the 2019 and 2020 awards, however, we estimate that upward of 80 percent of the grantee information is in the public data set.

Let’s begin with a few examples of awardee schools and their status in the 2019 data set to understand why the report got it wrong.

Path Academy Charter School in Connecticut was a school that received a grant directly from the department. According to the 2019 data set, it received $585,800 in a three-year grant from 2013 to 2015. The data set reports the school’s status as open, but Path Academy closed in 2018 after the state discovered that the school and its charter management organization, Our Piece of the Pie, defrauded “the state of nearly $1.6 million, billing the state for 128 phantom students, operating unauthorized schools, and tolerating excessive absenteeism.”

Spirit Prep was a proposed “blended” school powered by the for-profit K12 (now Stride) online programs. It received a grant for over $186,000 in 2011 to plan for its opening. Although K12 announced in April of 2012 that Spirit Prep would open that fall, by July, the New Jersey Department of Education decided that the school would not open and denied its charter. In 2019, the department still had it listed as a “future” school with a note that it would open in 2012.

Tallulah Charter School, a Louisiana 2013 grantee, closed in 2017 following a cheating scandal. Its status is listed in the data set as open.


Hope Academy, a 2008-2010 grantee that received more than a half-million dollars, shut down in 2014 and was later sued by the state of Missouri for $3.7 million after “an audit found inflated attendance numbers.” Again, its CSP status was listed as open in 2019.

These are not isolated examples. They are representative of the hundreds of such cases that we found. Why do there appear to be so many errors?


The answer is that once the grant is finished (most end within three or fewer years), the department says it no longer checks to see if they are open. Therefore, the status of the school is frozen in time in the data set. A school open when the grant was complete may be shuttered today. The department requires that state entity, charter management organizations and developer grantees report twice a year on the operational status of all CPS-funded schools — but only for active and open grants.


This also explains why the Department of Education cautiously reports numbers of closed CSP schools using the term “closed prematurely.”


But the GAO did not check on the current status of schools, with the exception of the 189 schools that had no status in the data set. This is explained in Appendix I on pages 22 and 23 and was communicated to me in an email on Oct. 27 from GAO Assistant Director Sherri Doughty.


Recall that the GAO’s congressional mandate was “to report on CSP grants, with a particular focus on charter schools that eventually closed or never opened” (emphasis added). By accepting the department’s status in the majority of cases, it was using data that had not been updated in years, with the exception of 189 of 6,023 awards. Yet in the report, the GAO reports closures as current as of May 2022. Footnote 11 on page 11 says that the GAO defined “open” as currently open schools.

Despite my sending extensive file after file of correct information, their response was, “we stand by our report.”


Now, I will describe what they got wrong.


Extensive under-reporting of CSP awardee closures


For the Network for Public Education’s analysis, we used the public 2019 CSP data set, which is a subset of what the GAO received. The vast majority (exceeding 80 percent) of the CSP awards from 2006 forward are in the data set, which covers 13 of the 15 years examined by the GAO.
Using the procedure outlined below, NPE’s Marla Kilfoyle and I identified the extent to which the GAO underestimated the number of closed and never opened schools, which were the categories of interest to Congress.

  1. We isolated those awards in the 2019 data set made in 2006 and beyond, eliminating all awards made before 2006.
  2. For all charter school awards with an NCES number (91.2 percent of all awards), we checked the school status against the 2020-2021 Common Core of Data (CCD). We marked charter schools as closed if they were no longer listed in the CCD, or if they converted to public schools while retaining the same NCES number. If a charter remained a charter with the same NCES number but changed its name, that school was marked open. In some states, including California, we double-checked with the state database. [NCES numbers are the unique 12-digit school identifier found in the Common Core of Data of the National Center for Education Statistics (NCES). We used the charter school filter in the CCD database to include awards that went to charter schools that closed as a charter and became public schools and to identify public schools that took CSP money but never converted to a charter school.]
  3. If a public school received an award to convert to a charter school but did not, we marked it as “will not open.” If schools were listed as future schools in the data set that ended in 2018 but could still not be found in the CCD, we checked outside sources and, if not found, marked it “will not open.”
  4. For the remaining 8.8 percent of schools, we accepted the school status as reported in the 2019 data set, knowing that would result in an underreporting of closed and never opened charter schools and an inflated number of open and future schools. We, therefore, erred on the side of caution.

Grantee closure


Let’s start with the smallest of the three programs, the Non-State Educational Agencies (SEA)/Developers awards, which I will refer to as non-SEA awards. These awards are given directly to charter schools by the Department of Education.

According to the GAO, the department gave out 235 non-SEA awards between 2006 and 2020. The 2019 data set, from 2006 on, contains 178 of those awards. According to Table 5 of the GAO report, only six went to schools that have closed, and four went to schools that never opened, resulting in a closure rate of 3 percent and a never-opened rate of 2 percent.

Using the CCD and additional outside sources to determine the status of schools, we found 29 — not 6 — schools that received a CSP award between 2006 and 2018 that had closed. Here we provide the names, date of grant, dates regarding the school’s closing, news stories about the closure, and other verification of closure.

Some charters closed due to low enrollment or poor test scores. Others closed, as confirmed by linked news stories, due to fraud.
We also identified 13 — not four — non-SEA grant schools that never opened between 2006 and May 2022.


Even if all of the 57 awards given after 2018 went to schools that opened and thrived (which is highly unlikely), closure rates would be 12.3 percent, and the never opened rate would be 5.5 percent of the non-SEA awardees, not 3 percent, and 2 percent.


SEA/SE grantee award closures and never-opened schools


The underreporting was even more dramatic when it came to the oldest and largest of the three CSP programs (SEA/SE).


According to the GAO, the CSP (SEA/SE) program gave 4,616 school awards totaling nearly $2 billion between 2006 and 2020. The 2019 data set identifies 4,351 SEA awards as sub-grants between 2006 and 2018. Almost all (3,992) have an NCES number associated with the school.


Within the data set, there is some duplication of schools. To catch those duplications, we identified and reported the number of unique closed or never opened schools. If we had reported by award, the number would be substantially higher. The GAO report is fuzzy in its tables and narrative, sometimes referring to schools and at other times to awards. It is possible for schools, especially longtime open schools, to receive more than one award; therefore, if the GAO counted awards, not schools, its “open school” number is inflated by more than error.


If the charter school did not have an NCES number in the data set, we again accepted the status listed by the department in 2019. As stated above, this likely results in an underreporting of closures.

GAO states in Table 2 that 429 SEA/SE awards went to now-closed charter schools—a number quite similar to the 2019 CSP data set non-updated number (409). However, we found that more than twice as many, 951 closed charter schools, received one or more awards. In addition, while the GAO reported that 209 schools never opened, we identified 230. These numbers do not include closed and unopened schools given grants after 2018. The total number is higher than what we report; it cannot go lower.


Note that we did not analyze the closures of charter schools that received Charter Management Organizations (CMO) awards since the department only required CMOs to report their schools beginning in 2012. The report lists 37 percent of that CSP CMO-grant funding going to “future schools.”

Our complete analysis is available upon request. It was sent to the GAO and the department along with a tool developed by data expert Ryan Pfleger that allows one to examine the history of schools by enrollment and status across the years of the CCD. I received an email acknowledgment and thank you from a representative of the Department of Education. I received no response from the GAO.


The CCD can be an imperfect source and may have generated minor errors in our final numbers. Nevertheless, it would have provided a far more accurate accounting of “schools that eventually closed” than the outdated status in the data set of the department they were asked to audit.


The ripple effect


The error described above directly affects the number of charter schools listed as open, closed, future, and will not open. It also affects the calculation of the total taxpayer dollars that have been wasted on CSP charter schools. For example, if more than twice the number of charter schools that received CSP grants closed, the GAO report’s estimation of $152 million spent on closed and never opened SEA/SE schools during those years is only capturing less than half of that cost since more funds went to closed schools than schools that never opened.

The state-specific numbers set forth on pages 13-15 of the report similarly need correction. Some of the states identified as the biggest wasters in the report’s Figure 15 may not deserve that identification. Other states may earn the dubious honor of being in the chart.


What now?


It is difficult to track charter school closures. Some schools close as charters and become public schools. We have seen schools switch between charter and public several times. At other times, a school shuts, and a new management organization takes it over. Sometimes the school’s name, staff, and students are different; sometimes not. Charter schools merge. In some states, information is easy to find; in others, information is obscure. It doesn’t have to be this way; states and the federal Charter School Program can demand better record-keeping and reporting.


The GAO’s descriptive analysis needs to be checked, verifying whether a school is currently open using the CCD. Claims regarding closed and open schools in their report need to be revised so that it is clear those are only closures during the active years of the grants. The stakes are even higher, however, for families. The closure of any school, whether public, charter, or private, is a painful and disruptive event in a child’s life. Families deserve honest information regarding closure risk when they enroll their children in a charter school. It is time for the GAO to revise its report to Congress and the public.


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This is the response from the GAO:


“We need to use rigorous methodologies that are acceptable to social scientists and statisticians and can withstand scrutiny. Practically speaking, we cannot Google the status of 6,000 schools and call that proper research. When we spot checked some of what Ms. Burris cited, we came up with conflicting results. As with any methodology and any data set, ours had limitations and they were disclosed clearly in the report.

“In addition, GAO is an independent agency. We do work for Congress, but they do not dictate our research objectives, methodologies, or scope of work. GAO determined that the best way to meet Congress’s needs in this case was to conduct a descriptive analysis, which examines trends and relationships, and to pair that with a much more sophisticated model with rigorous controls in place. This was done to properly examine underlying issue at hand: the effectiveness of CSP awards. We laid out this approach to the relevant Congressional stakeholders prior to the work beginning, and they determined that it met their needs. And then it was laid out in our report as well.We know critics who do not like our message will cherry pick at different statistics. But the message is based on a sound analysis and we stand by it.”


Here is Burris’s response:


“The GAO used outdated charter school status data as the basis of their descriptive analysis. The use of that data was confirmed in an email sent to me by the GAO and in the appendix of the report. The rationale for not using the Common Core of Data rather than the data provided by the Department they were auditing was illogical, especially given that they used the Common Core of Data for what they referred to as their “more rigorous model.” The charter school status data they used is not updated once a grant is closed. This was confirmed in an email from a Department of Education spokesperson to Ms. Strauss. Therefore, when the GAO report states that its information is current as of May 2022, it is providing false information to both Congress and the public. One does not need to “google” schools. The GAO is well aware that this is not the methodology I used. If their spot check resulted in conflicting results, I invite them to send those examples to me.”

Ten years ago, a deranged young man blasted his way into the Sandy Hook Elementary School in Newtown, Connecticut. He killed 20 first-grade children and six staff members, including the principal, who tried to stop him at the school’s door.

The nation was stunned. President Obama wept. There was a widespread sense that this heinous act would lead to decisive action by Congress. It didn’t. The gun violence against children continues.

Why? The Republican Party has sworn allegiance to an extreme interpretation of the Second Amendment in which every person has the unfettered right to own and carry guns. and the Supreme Court, now securely in the hands of hard-right conservatives after Trump added three justices, is overturning long-standing limits on gun ownership. There are more guns than people in the U.S., and so far as conservatives are concerned, there is no need to restrict their availability and use (except in the halls of Congress, the Supreme Court, and other special places.)

Among the weapons used at Sandy Hook were a Bushmaster XM15-E2S and a Glock 20SF handgun. The killer first murdered his mother, who bought the guns and took him to firing ranges. When fist responders arrived, he killed himself.

Not long after the massacre of babies at Sandy Hook, the professional liars entered the scene. They said that there was no massacre. Everything we saw on television was staged, they said. The “parents” who were mourning were actually “crisis actors.” Someone sent me a link to a video purporting to show that Sandy Hook never happened; it was a hoax created to promote gun control legislation.

Alex Jones leapt on the story and repeatedly broadcast it to his many followers. Some of them harassed the families who had lost a child or a mother or a sister, even sending them death threats.

Alex Jones has this year been convicted of defamation and ordered to pay fines exceeding $1 billion. He moved his assets and declared bankruptcy.

There have been so many mass murders in the past decade that it’s impossible to remember them all. We remember the massacre of 17 people at Marjory Stoneman Douglas High School in Parkland, Florida, both because of the numbers and the heroic response of the survivors, who lobbied fiercely for gun control. Uvalde got our attention because of the number of children killed: 19, along with two teachers. And it got our attention because of the sheer incompetence of the law enforcement officers, who arrived on the scene by the hundreds and failed to enter the classrooms where the killer was for over an hour.

Of one thing we can be sure, there will be more mass killings of students. Uvalde will not be last. Schools now practice active shooter drills. Some teachers are armed. School security has been enhanced. Door locks are common.

But when the next killer pulls a gun out of his backpack or blasts through the entry with an assault weapon, children and staff will die. We will mourn them and their teachers as we have before. And then there will be another. And another.

Nothing will change until we enact strong gun control laws that limit access to guns. That won’t happen unless the voters elect people sworn to protect the lives of their children.

Ellen Ann Fentress is a Mississippi writer who dug deep into a state tradition of converting federal funds for the poor into a boondoggle for the few. She writes here in an upstart online investigative journal called the Mississippi Free Press. (To learn more about this brave entry into investigative journalism in Mississippi, read this post.) Federal money intended to supply housing for poor and middle-income Mississippians was diverted by politicians to refurbishing a port, which benefitted the casino industry.

She writes:

The plantation-owner model lingers in the Mississippi imagination. It’s manifested, for example, in the local soft spot for white columns on McMansions and even gas stations in suburban communities.

The plantation archetype, however, is not a yokel, but the opposite. To make money off his cash crop—that’s the definition of a plantation over a self-sustaining farm—the plantation owner had to master credit lines and commodity futures in a far-off financial market and put that mastery into play on his home soil. His success rested on being a bifurcated practitioner. His feet in his home dirt, his head attuned elsewhere.

I wrote a version of those words in mid-2008 for the Oxford American magazine about how then-Mississippi Gov. Haley Barbour had channeled $570 million in Hurricane Katrina housing recovery funds away from rebuilding housing for poor Gulf Coast residents and toward improving the state port at Gulfport.

In words not that different from what we’re hearing now about the arrogant and greedy redirection of federal Temporary Assistance for Needy Families funds, Barbour’s excuse for hubristic diversion was economic development.

Sinking recovery money into the port would bring 6,500 direct jobs, the Yazoo City native declared in 2009. His economic trickle-down policy hit the right note with the national free-market conservative audience. The powerful Washington lobbyist and former head of the party tested the GOP presidential waters for 2008, in fact, stymied in part by his own words about racism in his hometown.

Barbour’s port move, however, was at the expense of low- and middle-income Coast residents cut out of the state’s recovery aid framework that was weighted toward homeowners with insurance policies. The promised high-paying jobs hardly materialized, either.

Amid the outrage around the money grab of $77 million in TANF funds discovered in a state audit of 2016-2020 TANF spending, Haley Barbour’s $570-million port gambit must not be forgotten. And it’s historically instructive. The willingness of Mississippi leaders to arbitrarily hijack federal funds away from specific needy recipients is not a new story.

The TANF scandal is only the latest rendition.

‘Not Asking the Hard Questions’

Reilly Morse was a Mississippi Center for Justice attorney involved in the court fight over the port funding. Morse sees the similarities in Barbour’s handling of Katrina funds from the U.S. Department of Housing and Urban Development and the recent TANF revelations that emerged in early 2020 during the administration of Barbour’s successor, Phil Bryant.

Bryant was state auditor during Barbour’s time in office, and current Gov. Tate Reeves was state treasurer.

“They count on people not asking the hard questions,” Morse said in an Oct. 4 telephone interview. “I think that’s another common theme here because all of these folks that lambast Washington adore disaster-response money or other block-grant money, social-services block-grant money, that they think they can just clear out regardless of whether it benefits the people.”

In December 2008, the Mississippi Center for Justice and other community groups sued HUD for allowing the port funding since Congress had appropriated the monies for low- and middle-income home repair. The litigation ended in 2010 when Barbour, HUD and the Mississippi housing advocates negotiated an agreement to provide $133 million to assist low-income Mississippians still in need of Katrina-damaged home repair.

HUD had expected the project to create 1,300 jobs and retain 1,300 more. By 2013, no new permanent jobs had been created, a 2013 PEER committee report found. That number is shocking in the way that learning that the State of Mississippi only qualified 1.5 percent of TANF applicants for cash assistance in the nation’s poorest state in 2016, the first year of the MDHS audit.

But shunting Katrina housing money toward the port wasn’t shocking enough to break through in Mississippi media outlets that tend to give Barbour a pass, nor has it re-emerged now in most outlets as important context for the current TANF scandal.

In 2019, HUD declared the job-creation goals met. Yet reaching the job-count goal required a fuzzy calculation, as journalist Anita Lee reported at the time in the Sun Heraldin Biloxi. During the Trump administration, HUD allowed Mississippi to count jobs that the Island View Casino Resort added at a new casino hotel facility since the resort was on port property. The job total still initially didn’t meet the project requirement until HUD then allowed recalculating part-time hotel jobs into full-time jobs through hours worked.

The State of Mississippi thus counted 1,167 jobs at the casino hotel as jobs creation, although the number of actual higher-paying maritime jobs at the port was only 262. Lee noted in her reporting that the state investment netted one job for every $2.2 million in recovery funds spent….

Barbour has long done his post-Katrina part for his team’s ideology—if not for the Gipper, at least for Milton Friedman. That favorite conservative economist taught that the best time to slip in a political change was in the wake of disaster. “Only a crisis—actual or perceived—produces real change,” the Nobel Laureate wrote. “When that crisis occurs, the actions that are taken depend on the ideas lying around.”

Blanco: ‘He Only Cared What He Got’

The casinos had ideas lying around when Katrina hit.

Ever since their 1992 debut in Mississippi, it was the widely held belief in this Bible Belt state that the industry was just waiting for their then-floating facilities to crumple up in the next hurricane to justify legalizing their expansion onto land. Katrina provided the scenario. The barge on which the Grand Casino sat actually managed to crush the new Frank Gehry-designed Ohr-O’Keefe Museum of Art in Biloxi.

Barbour’s first—and chief—legislative response was to convene the Mississippi Legislature to legalize the casinos’ move inland. The powerful Southern Baptist lobby howled. But, by December, three casinos had reopened on terra firma, and by 2007, the $1.3 billion in revenue from the 11 Coast casinos topped the old pre-Katrina tally.

The state legislation squared away, Barbour headed up to his Washington stomping grounds, where Mississippi proportionately outscored Democrat-led Louisiana in Congress’ $29-billion recovery appropriation in December 2005. Barbour was the closer, persuading then-House Speaker Dennis Hastert to accept the funding terms, the New York Times reported, calling it “using a lobbyist’s pull from the governor’s seat.”

Mississippi’s take was at Louisiana’s expense, its former governor, Democrat Kathleen Blanco, later said in a July 2008 telephone interview about Barbour: “He didn’t care how much anyone else got. He only cared what he got.”

Please open the link and read more about high-level corruption at the expense of the poor people of Mississippi.