Archives for category: Fraud

 

Tom Ultican, retired teacher of advanced math and physics in San Diego, is a dogged investigator. In this post, he traces the ongoing efforts to reform the weak charter law in California.

California has more charter schools than any other state, with more than 1,300. The original law capped the number at 100. Since then, the money of the California Charter Schools Association has blown away the cap as well as all previous efforts to regulate charters. Billionaire Reed Hastings served as chair of the state board and demolished the meager limits that existed.

In this huge state, the law allows a district to authorize a charter in another district hundredsof miles away and collect a commission for every student who enrolls. It allows charter applicants to appeal all the way to the state board and ignore the needs and wishes of the local district. The law assures that charter schools will have little or no oversight, since the state education department does not have the staff to oversee them.

The current law is an invitation to fraud, embezzlement, and corruption. This is not to say that all charters are run by corrupt individuals, but the constant revelation of financial scandals in the charter industry demonstrates the need for revision of the law to protect the public interest. Only a few weeks ago, eleven people in the charter industry were indicted for stealing more than $50 million.

Yet, as Ultican shows, the road to charter reform has been rocky. Governor Jerry Brown, whose leadership was admirable in many other ways, adamantly refused to rein in the charter industry. Governor Newsom is indebted to powerful families in the charter industry, and his chief of staff is a charterista.

Yet Ultican holds out hope that some actual reform might yet survive. Anything, he says, is better than the complete deregulation that has currently allows unscrupulous grifters to feast on the money intended to pay for education.

The Oklahoma State Bureau of Investigation says that the EPIC virtual charter school has stolen millions of dollars. 

Investigators say the co-founders of the school embezzled $10 million, based on “ghost students” who never enrolled.

Just days ago, a state legislator asked where the money was going but was rebuffed by the state Department of Education.

Oklahoma’s largest charter school is a “blended learning school” that has received so much money that a legislator asked where the money was going. The state Department of Education said it wouldn’t tell him unless he paid a fee of $850 to find out.  The school claims a 99% attendance rate, which in itself is bizarre.

Oklahoma state Sen. Ron Sharp is questioning funding the state’s largest charter school has received in the past two years.

This comes after Sharp said Epic Blended Charter School received a total of $63 million in its first two years of operation.

FOX 25 sat down with Sharp Thursday who said the school was provided allocation money through the Oklahoma State Department of Education (OSDE) for grade levels the school doesn’t provide.

“The first year they were in existence we gave them $23 million. For the second year now, we gave them $40 million. That is an excessive amount of money particularly for kids that’s aren’t being accommodated in the school. That is a problem,” Sharp said….

Sharp said he submitted an Open Records Request to the Oklahoma State Department of Education in March.

“In June, I received an email that they would not provide that information to me because of the extensive hours involved without an $850 fee. Which again, as a state senator, I found that to be a little bit unusual. Now I have been requesting quite a bit of documentation here from the OSDE,” Sharp said….

Sharp also questioned how many students actually show up to Epic Charter School on-site locations.

“Are there enough individuals? If 7,000 are showing up to two sites at any one period of time that, you have to make sure you have proper facilities for them. Individuals of which are able to monitor them and again, how many kids are coming in before school and after school?” Sharp said. “They even say at all these sites they have a 99% attendance rate. Which is absolutely amazing as a 38-year teacher — you cannot get 99% of your kids there at a school each day.

Jeff Bryant notes the escalating scandals surrounding the charter industry, creating a stench that can’t be covered up and hidden.

Yet the charter industry refuses to acknowledge its problems and act to correct them and to oust the bad actors from its big tent.

Case in point: when the Network for Public Education released a study of the federal Charter Schools Program which showed that about one-third of all federally-funded charters had never opened or had closed soon after opening, at a cost of taxpayers of $1 billion, the charter industry was at first silent. Then it responded by attacking the report and NPE, claiming that NPE was “union-funded,” which it is not. NPE has indeed received contributions from unions, but the overwhelming bulk of its funding comes as voluntary gifts from individual supporters.

The attack came from paid employees of the National Alliance for Public [sic] Charter Schools, whose job seems to be to deny any charter misdeeds and to attack all critics and criticism. They were outraged that NPE would criticize the federal Charter Schools Program, which under Betsy DeVos has directed the bulk of its $440 million a year to support of large corporate chains like KIPP, IDEA, and Success Academy. It is now a charter slush fund, controlled by DeVos and her merry band of privatizers.

Bryant, who was a co-author of the NPE report with Carol Burris, writes:

As charter reform in California takes one step forward and two steps back, charter proponents operating at the national level show no signs of being willing to consider the need for more regulatory oversight.

For instance, months after the report Burris and I published about waste in the federal government’s charter school grant program, officials from the National Alliance for Public Charter Schools, a charter school lobbyist and advocacy group, attacked our report in a national media outlet supportive of charter schools.

The critique by Christy Wolfe and Nathan Barrett is a slog through a mostly unsubstantiated defense of a program their organization does not even administer and does not seem to have any greater understanding of than Burris and I’ve demonstrated. But what Wolfe and Barrett have written can serve as a useful example of how charter industry operatives continue to respond disingenuously to criticism of their schools no matter how reasonable and well-founded the criticism is.

Now, why would the National Alliance for Public [sic] Charter Schools respond so defensively to any criticism of the federal Charter Schools Program?

Surely it can’t be because the NAPCS received a grant of $2.385 million from that same program in 2018.

The charter slush fund must be protected at all costs, regardless of where the money goes or how it is spent and misspent. Accountability be damned!

 

 

This law journal article about the self-dealing and corruption in the charter sector was written by Professors Preston C. Green III, Bruce D. Baker, and Joseph Oluwole.

Since it was written, there have been so many examples of scandals, conflicts of interest, and outright theft of public dollars that this prediction seems remarkably prescient.

Here is the table of contents:

INTRODUCTION

OVERVIEW OF ENRON

A. ENRON AND DEREGULATION

B. THE LJM SPES

C. ENRON’S COLLAPSE

II: ENRON’S GATEKEEPER PROBLEMS

A. ARTHUR ANDERSEN

B. INDEPENDENT ANALYSTS

C. CREDIT RATING AGENCIES

D. ENRON’S BOARD OF DIRECTORS

E. SECURITIES AND EXCHANGE COMMISSION (SEC)

III: CHARTER SCHOOLS AND RELATED-PARTY TRANSACTIONS

A. CHARTER SCHOOL DEREGULATION AND PRIVATE INVESTORS

B. EXAMPLES OF ENRON-LIKE RELATED-PARTY TRANSACTIONS

1. IMAGINE SCHOOLS

2. IVY ACADEMIA CHARTER SCHOOL

3. AMERICAN INDIAN MODEL CHARTER SCHOOLS

4. GRAND TRAVERSE ACADEMY

5. PENNSYLVANIA CYBER CHARTER SCHOOL

C. THE FEDERAL GOVERNMENT, RELATED-PARTY TRANSACTIONS, AND THE NEED FOR STRONG GATEKEEPING

IV: CHARTER SCHOOL GATEKEEPERS

A. AUDITORS

B. CHARTER SCHOOL GOVERNING BOARDS

C. CHARTER SCHOOL AUTHORIZERS

D. STATE EDUCATION AGENCIES (SEAS)

E. U.S. DEPARTMENT OF EDUCATION

CONCLUSION

Here is the Introduction to the article:

INTRODUCTION

In December 2001, Enron rocked the financial world by declaring bankruptcy due to the effects of an accounting scandal. Earlier in the year, Enron had been the sev- enth largest corporation in the country.1 This energy trading and utilities giant had become a dominant player by aggressively benefitting from the federal deregulation of the energy markets.2 Enron’s collapse erased more than $60 billion in shareholdervalue and caused thousands of employees to lose their jobs and pensions.3

Enron proved not to be an anomaly. Soon after the corporation’s collapse, thefinancial markets were further roiled when WorldCom, Adelphia, and Tyco, among others, declared bankruptcy because of accounting fraud.4 Congress responded to this wave of scandals by passing the Sarbanes-Oxley Act of 2002, which imposed greater accountability on publicly traded companies and their auditors.5

Andrew Fastow, Enron’s CFO, was a pivotal figure in Enron’s collapse. He cre- ated two special purpose entities (SPEs)—LJM1 Cayman LP (LJM1) and LJM2 Co- Investment LP (LJM2)—to serve as a hedge against potential downturns in Enron stock.6 Fastow and his associates served as the managers of these SPEs.7 Because ofFastow’s dual management roles, Enron should have disclosed to its shareholdersthat the partnerships were related-party transactions, defined as deals between enti- ties with special, preexisting relationships,8 which Enron failed to do.9 Although re- lated-party transactions are legal, they can create conflicts of interest that have the potential of harming their shareholders.10 Specifically, these transactions “can createthe impression that an insider is using company assets for personal benefit, and that the company is getting the short end of the stick.”11 Indeed, Fastow did take ad- vantage of this conflict of interest by making millions of dollars from the SPEs and using the illegal proceeds to invest in other interests.12

Enron’s collapse was significant because it exposed the deficiencies of gatekeep- ers that had the responsibility of protecting the integrity of the markets.13 These gate-keepers included Enron’s auditor Arthur Andersen, independent analysts, credit rat- ing agencies, corporate boards, and the Securities and Exchange Commission (SEC).14 In the case of the Enron debacle, all of these watchdogs failed to detect thedangers caused by Fastow’s conflict of interest.

Related-party transactions are now posing a threat to the charter school sector. Charter schools are a deregulated departure from traditional public schools because they are exempted from laws governing budgets and financial transparency.15 Similar to Fastow, unscrupulous individuals and corporations are using their control over charter schools and their affiliates to obtain unreasonable management fees for their services and funnel money intended for charter schools into other business ventures.16

In spite of this evidence, the federal government has consistently attempted to increase the number of charter schools without pushing for oversight.17 This policy approach is alarming because it will create more opportunities for illegal related- party transactions.18 Also, this approach runs the risk of harming students in low- income and minority communities—the very children whom charter schools are sup- posed to serve.19 Therefore, charter school gatekeepers must learn from the Enron debacle by becoming more prepared to guard against the dangers posed by related- party transactions.20 These gatekeepers include auditors, governing boards, authoriz- ers, state education agencies (SEAs), and the U.S. Department of Education.

In this Article, we discuss how some charter school officials have engaged in Enron-like related-party transactions to defraud charter schools. We also identify several measures that can be taken to strengthen the ability of charter school gate- keepers to protect against this danger. This Article is divided into four Parts. Part I describes how Fastow used his management of Enron and the SPEs to obtain illegal profits contrary to the interests of the former company. Part II discusses why the gatekeepers in the financial sector failed to stop the related-party transactions be- tween Enron and the LJM entities. Part III provides examples of how individuals in the charter school sector are benefitting from their control over charter schools and their affiliates in a manner similar to Fastow. Part IV analyzes, inter alia, pertinent statutory and regulatory provisions that apply to state and federal gatekeepers. We perform this task to identify the steps that legislators and policymakers can take to increase the gatekeepers’ ability to protect against harmful related-party transactions.

If you want to understand the deep potential for financial corruption at the heart of deregulated private charter schools, you must read this article.

Here is a small excerpt:

Major philanthropic organizations have invested heavily in the charter school sec- tor.112 For example, the Walton Family Foundation, which was established by the founder of the Walmart retail chain, has pledged $1 billion to support charter schools.113 Reed Hastings, the founder of Netflix and a long-time supporter of charter schools, has created a $100 million education foundation.114 Hedge funds and other private investors have also become interested in investing in charter schools.115

The attention of philanthropic groups and private investors has dramatically im- pacted the charter school sector. For example, the education management organiza- tions (EMOs) that these groups operate have become the dominant players in the charter school sector.116 EMOs are for-profit or nonprofit entities that provide edu- cational and management services to charter schools.117 EMOs manage between thirty-five to forty percent of all charter schools, accounting for about forty-five per- cent of charter school enrollments.118

Charter schools attract investors because of the potential for new revenue streams.119 For instance, the New Market Tax Credits (NMTC) program provides investors the opportunity to make profits from charter-school real estate transac- tions.120 Enacted as a component of the Community Relief Tax Credit Act of 2000,121the NMTC was designed to encourage investment in low-income communities.122The NMTC accomplishes this goal by providing investors in a community develop- ment entity (CDE) a thirty-nine percent tax credit over a seven-year period.123 A CDE is a corporation or partnership that provides capital for investment in low-income communities.124 An educational organization such as a charter school foundation can use NMTC funding to build a charter school.125

For-profit entities can double their investment in charter-school real estate pro- jects by taking advantage of the NMTC as well as other federal tax credits.126 For- profit entities can also obtain revenue from charter schools through lease payments for the use of the facilities. For instance, the Robert Bacon Academy (RBA), a for- profit EMO operating in North Carolina, received $1.5 million in rent, as well as almost $549,000 for maintenance during the 2013–14 school year—from one char- ter school alone.127

Investors can also obtain profits through the management fees that EMOs charge for their services.128 Management fees can be very generous. In the 2013–14 school year, RBA received a management fee of sixteen percent of its school’sexpense as well as “additional incentive payments based on student achieve-ment.”129 Two charter schools paid RBA nearly “$2.4 million in fees and incentivesout of just $13 million in total revenue.”130

Please send copies of this law review article to the Center for American Progress, the Brookings Institution, the New York Times editorial board, the Washington Post editorial board, your Senators and members of Congress, and to the campaigns of every Democrat running for President.

 

Indiana is one of the state’s that has been all in for choice. One of the choices pushed by former governors Mitch Daniels and Mike Pence is Virtual Charter Schools. These are online schools that allegedly enroll home-schoolers or students who prefer not to attend a Brick-and-mortar school.

Study after study has found that these online schools have high attrition, low test scores, and low graduation rates. However they are very profitable since their operators are paid far more than their actual costs.

The name of their game is enrollment, since their costs decline as enrollment grows, and they must constantly replace those who drop out.

Unfortunately, the incidence of fraud is high since the online schools are seldom auidited.

Indiana is currently trying to recover $40 million from two online charter corporations and their authorizer, which was stolen by inflating enrollments.

Indiana will try to claw back around $40 million from two virtual charter schools and the public school district charged with overseeing them after an investigation found the charters inflated student enrollment counts and defrauded the state for the last three years.

Daleville Community Schools is the charter authorizer, charged with oversight, for Indiana Virtual School and Indiana Virtual Pathways Academy. A state audit found that the schools inflated their enrollment counts, which are used to determine how much money the schools receive from the state.

A report, provided by Daleville, showed that hundreds of students counted in the online schools rolls were never assigned a single class. In the 2016-17 school year, 740 students took no classes in the first semester and 1,048 took no classes in the second semester. 

Many students were re-enrolled by the school, even after they had left. In at least one case, the school re-enrolled a deceased student, said State Examiner Paul Joyce.

Joyce told the State Board of Education at its meeting Wednesday that the schools’ action could be considered criminal.

Is it a novel idea to treat the theft of millions of dollars as “criminal?” That certainly did not happen in Ohio, where the operator of the Electronic Classroom of Tomorrow (ECOT) closed his doors rather than repay the state some $60 million in inflated charges. Over the years, ECOT collected nearly $1 billion, and there were no audits or efforts to recapture public funds until the past year. No criminal charges either.

You know the old saying: If you steal a fortune, you are treated as a gentleman, if you steal a loaf of bread, you go to jail.

 

In a major corruption investigation, the FBI arrested former Puerto Rico Secretary of Education Julia Keleher in DC. 

Keleher was brought to the Island to cut costs, impose charters and vouchers, and break the union. She was paid $250,000 a year while preaching austerity and budget cuts.

Puerto Rican educators did not like her, to put it mildly. They referred to her with the hashtag #JuliaGoHome.

Puerto Rican journalist #RimaBrusi tweeted that the new hashtag is #JuliaGoToJail

The charges include wire fraud, money laundering, and theft.

 

Tom Ultican writes here about the biggest charter fraud in history (to this date). 

This fraud was not one of those one-day wonders that people read about and forget the next day.

This one should wake up state legislators and produce genuine reforms of the state’s super-permissive charter law.

Ultican writes about the indictment of 11 people for the theft of $50 million. Other writers, however, peg the loss to the state and its students at $80 million.

Whether it’s $50 million or $80 million, it should catch the attention of those who are devoted to ethical behavior.

Ultican explains that charter advocates designed the law so that it would NOT regulate who got the money or how it was spent. The California charter law is an open invitation to graft and corruption.

And they walked through an open door, reaping millions from the state’s lax law. Deregulation and lack of oversight was supposed to spur innovation. But it mostly spurred theft.

He writes:

The state of California puts more than $80 billion annually into k12 education. Because that money is a natural target for profiteers and scammers, extra vigilance is needed. However, California’s charter school law was developed to provide minimum vigilance.

During its early stages, several billionaires like Carry Walton Penner, Reed Hastings and Arthur Rock made sure the California charter school law was designed to limit governmental rules and oversight. For example, charter schools are not required to meet the earthquake standards prescribed in the 1933 Field Act, which hold public schools to higher building code requirements. Since its enactment no public schools have collapsed in an earthquake. The picture of the Education Collaborative School above is evidence that students in a known earthquake zone are now at increased risk of injury and death.

A few weeks ago Louis Freedberg observedthat a key weakness in California’s chartering law is that there are no standards for authorizers and a lack of expertise. He also wrote about the number of charter authorizers saying, “unlike many states, California has hundreds of them: 294 local school districts, 41 county offices of education, along with the State Board of Education.” Among these 336 authorizers, several are school districts of less than 1,000 students which have neither the capacity nor training to supervise charter schools. Some of these small districts look more like charter school grafters than public school districts.

The California law is deeply defective. It assumes that the market will produce better schools. We now know that isn’t right.

 

G.F. Brandenburg cannot understand the Washington Post editorial writer Jo-Anne Armao. When Michelle Rhee started her job as chancellor of the D.C. schools in 2007, Armao interviewed her and decided that she was the greatest educator ever. Nothing that has happened in the past dozen years has changed her views. To this day, she still writes lovingly, respectfully about the Miracle that was Michelle Rhee. All her initiatives have failed. A huge cheating scandal was covered up and forgotten. Charter scandals have come and gone. A high school boasted of its 100% graduation rate, but it was a fake.

No matter. The Washington Post editorial board has Rhee’s back, almost a decade after she left.

For a fun trip down memory lane, read the comments on the John Merrow post from 2013 that is included.

 

Angie Sullivan teaches children in a Title 1 elementary school in Las Vegas. Many of her children are poor and don’t speak English. Her school is underfunded. Angie frequently sends blast emails to every legislator in the state, as well as journalists. She refuses to allow them to ignore her students, while they cater to the whims of billionaire casino owners, like the chair of the state board of education.

Angie wrote these posts recently:

Ironically as many scream for transparency of public schools  – they also seem intent on making it as difficult as possible to find information on Nevada Charters.  I’m looking at you “fiscal conservatives”.
 
Finding information on Nevada’s charters is like finding a needle in a haystack.
 
You can find it if you have 100 years. Or have time to puzzle it together.  It took me hundreds of hours to develop just a list of Nevada charter campuses a few years ago.
 
I might come across the name.  Or not.
 
Currently the Nevada State Public Charter School Authority (SPCSA) is the only sponsor accepting applications for new charter schools
 
The main source of information I have found is the Nevada Charter Authority.
 
 
You could look there for the names charters use.  As you know, charters can change their names and I have found up to 15 names for the same address.   Multiple campuses with different names are stacked under one charter.
 
The Nevada Secretary of State website can be searched.
 
 
I do know that business licenses with multiple names often come up as a topic in the Las Vegas City Council.  Mainly because charters open many businesses under different names and/or expand without permission (like open an on-line in a brick and mortar).    They forget to get licenses for all their “businesses”.
 
Charters are a nuisance.  They do not consider traffic at pick up and drop off.  They do not monitor kids and often do not have a playground.  The public regularly complains about charter “business practice” in Las Vegas City council meetings.   Sometimes I find information about them because they are a pain and citizens complain in public forums.
 
There should also be a way to follow the money since the receiverships are so plentiful.  But there is not a easy way that I have found.
 
 
Aaron Ford who got a PHD in charters before becoming our Attorney General is not likely to ask for accountability anytime soon.
 
It is for all these reasons – lack of transparency, lack of accountability, and poor business practice:   Nevada Assembly considered a moratorium on charters.  It did not pass but it should have.  
 
So long story short. 
 
I would not surprise me if you found a someone running a charter in Nevada using a sham company.    Who doesn’t?   Throw a rock and hit a charter scam.  
 
The bottom dwellers have all attempted to come here too.   Sometimes as the FBI is chasing them out of other places.  
 
I can hunt and peck around.   The name does not ring a bell but these shady characters come and go and change their name so often in my corporation friendly state – they could be right under my nose and I see nothing.  
 
You are welcome any time to come and I will find a venue for a movie showing.  I’m just a teacher and have no money – we pulled together enough to have a viewing of the Matt Damon Film last year with Congresswoman Dina Titus and Candidate for Governor turned Governor Steve Sisolak.  They did not watch the film but spoke at the beginning of the event.  
 
You have a true champion in Congresswoman Dina Titus if you ever need one. 
 
You need to avoid anyone from Team Harry Reid – he attended the Gulen Coral opening at the Air Force Base and supports Gulen charters fully.  May even be key to bringing them to Nevada. 
 
Teachers are most likely going to strike in the fall – so no union resources.  The union actually owes me one because VP Theo Small held a union event with a charter expert as a headliner. 
 
Gulen is a problem.
 
Academica is the charter monster in Nevada.  It’s a real estate grab.
 
Along with the Agassi-Turner Hedgefund.  It’s also a real estate grab.
 
We need money so badly – all of this is worse than a shame.  Robs all the kids I love.   All of them.   Robs kids.   Hurts kids.
 
Angie Sullivan
I would love to hear what new appointment Rebeca Feiden thinks of all of the above.   Lack of information or accessible information is long running.  And she knows it.
 
TFA creates data monsters who then are well paid to ignore data.
 

Then Angie wrote this post:

The Nevada Department of Education has been very pro-Charter under the direction of Casino Billionaire Elaine Wynn, Nevada State School Board President.
 
The other Nevada Gulens which are named Corals – even displaced the Air Force Teachers by offering to build a new school for the base.  They forced the military wives off the base because the charters could not match salary.  Gulen Corals clumped their data by north and south.   Their administrators came to some meetings I held and became verbally irate telling folks about how great they are.  How would anyone know?   The Gulen Corals have not shown three years of data for their campuses yet. Opened for decade plus and zero data by campus.
 
Now I suspect they will just manipulate the data.  There have been limited campus visits so no one makes sure there are testing protocols in place.
 
How do you keep a Nevada Charter from opening?
 
If someone can figure that out – I will employ that technique non-stop.  It is difficult to even find a place to voice opposition.
 
They have agenda here:
 
Meetings are held during the day when teachers work.  The person in charge of the 100+ charter campuses is a very young former TFA without a curriculum vitae to manage one charter let alone a $350+ million money distribution.
 
Most of the agendas are charter expansion.
 
And talking about charter problems without ever doing anything.
 
I would love to know how to actually prevent Nevada from being scammed by these corporations that other states are kicking out.
 
Please.   Let me know.
 
Reason does not work.
 
Logic does not work.
 
Data does not work.
 
Nevada insists on pouring money into the charter toilet.
 
Crazy folks go nuts for choice – even as it is explained to them it the worst choice in the nation.
 
There is zero accountability.  Nevada does not close charters for financial corruption/receivership.  Nevada does not close charters for lack of data or lack of graduation.  One charter might have closed because it literally had only one student.
 
Basically I keep pointing out to all the elected legislators,  these businesses are failing to educate children.   I try to shame folks taking money $350+ million and not providing anything to the tax payer.
 
Shaming.
 
Put them in the local newspaper.   That is about the best tool I have.
 
Failing charters that are bottom
dwelling scum are what Nevada attracts because our per pupil spending is last in the nation.
 
So of course Gulen wants to open more.
 
What a scam.
 
Angie Sullivan

 

This is another brilliant post by Sara Roos, known as Red Queen in LA.

She read the report of the leaked emails among charter advocates. She notes their double talk, their rhetorical legerdemain, their organizations that pop up like mushrooms, then morph into new organizations.

Behind this seeming chaos is a steady purpose: to disrupt and destroy public education.

Behind the chaos is the steady flow of millions from the billionaires who despise the commons.

The connect between the chaos and the billionaires are outstretched hands for hire.

She begins:

Charter schools in California band together as an embattled group, agitating for hostile takeover of the Public Commons. They serially convene, dissolve and reform a plethora of working groups to bombard public schools with “messaging” and disinformation.  The groups as well as charters themselves of course, drain resources from schools, necessitating capital (monetary and human) defending what should be protected by the people, for the people.

One of these itinerant ideologues is Ben Austin, founder of the “Parent Trigger”, who in 2014 resigned from his astroturf group to foment a new one, Kids Coalition. A collection of emailsmade public by the municipal-transparency site michaelkolhaas.org uncovered a set of strategies developed among this cabal, reported by Howard Blume at the LATimes hereand here.

The collusion, as one of them explains elsewhere, is “all about the messaging”. And the message revealed in aggregate over 5000+ emails, lays out a very stark code-shift. The catchy phrase, “kids first”, is a logical fallacy. Iterated unceasingly by charter advocates, it simultaneously casts aspersions on a presumed alternative (‘a time or place when kids were not first’) even while kids in schools have always been “first”. But consistent with the ideology of long-standing and now charter-mega-fundersKoch and Walton (among others), that term “kids first” effectively codes for “anti-union”. Because if formerly it were true that kids were not first, it would be the fault of the system that transposed their status, their teacher’s union. ‘If the proper order of kids is not upheld, it must be the fault of their teachers’ is the sly message.

Likewise there is a constant drum-beat against “bureaucracy” and “adult issues” but that too is simply code for “anti-regulation”. Charter schools aren’t really about finding a better way around bureaucracy. It is reviled incessantly, but the rules they denounce are precepts of democratic transparency, safety, efficiency, equity – cumbersome perhaps but the tenets of our republic. Instead the path they forge is of non-accountability: government funding without regulation. And this, even while the maxim “another day another charter school scandal” has been commonplace for decadesnow.