George Joseph in The Nation has written a sharply researched article about the nine billionaires who have been planning to impose their ideas on New York state since at least 2010.

They are, as you might expect, hedge fund billionaires. They have given millions of dollars to Andrew Cuomo in both his election campaigns. They have also given millions to a group called New Yorkers for a Balanced Albany that campaigned to maintain Republican control of the State Senate. Their handiwork can be seen in organizations such as Families for Excellent Schools (no, these are not families of children in the public schools, they are the families of hedge-fund billionaires), StudentsFirst, Education Reform Now, and Democrats for Education Reform. Their goal: More privately-managed charter schools.

Joseph has done a stunning job of connecting the dots, showing the collaboration among the billionaires, Joel Klein (then chancellor of the New York City public schools), and John White (then an employee of New York City public schools, now state superintendent of Louisiana).

Why do they want more charter schools? Well, you could say, as some do, that they care deeply about the poor children of New York City and want each and every one of them to be in an excellent charter school (although most charters are not willing to take certain children, like those with severe disabilities, those who don’t read and speak English, and those with behavioral problems).

But Joseph thinks there is another reason for Wall Street’s passion for charter schools. They claim that charter schools are the best way to end poverty. It is certainly cheaper to open more charter schools with state money than to pay the billions that the state owes to New York City as a result of a court decision in a case called the Campaign for Fiscal Equity.

Cuomo has said that he is tired of spending more money on the schools. We tried that, he says, and it didn’t work. But a parent advocate does not agree: “Zakiyah Ansari, a parent and public schools advocate with the labor-backed Alliance for Quality Education, called such reasoning shameful, “Why do Cuomo and these hedge funders say money doesn’t matter? I’m sure it matters in Scarsdale. I’m sure it matters where the Waltons send their kids. They don’t send their kids to schools with overcrowded classrooms, over-testing, no art, no music, no sports programs, etc. Does money only ‘not matter’ when it comes to black and brown kids?”

Joseph explores the question of why the New York hedge fund leaders are passionate about charter schools, test-based teacher evaluation, and ending teacher tenure.

He writes:

Their policy prescriptions—basing 50 percent of teacher evaluations on student test scores, for instance—are not in any way grounded in mainstream education research.

“The problem is that Cuomo’s backers aren’t paying much attention to the people who actually understand how Value-Added Modeling works,” explains Professor Julian Vasquez Heilig, an education policy researcher at California State University. “Education statisticians have come out many times saying these models are being used inappropriately and are unstable because other things happen in students’ lives outside of the teachers they encounter. When a kids’ parents in a high needs district are deported, and their achievement plummets, this actually has nothing to do with the teacher.”

Vasquez Heilig added that the reform proposals seem founded on a desire to destroy the development of long-term professional educators, rather than any empirical analysis: “We know 70 percent of teachers will bounce between high performing and low performing from year to year. So this is creating an impossible high stakes testing gauntlet between a young excited teacher and their path to quality, veteran expertise. If you’re looking for a cheap churn-and-burn teaching force, this is your policy, but if you want experienced, qualified teachers, committed to a schools’ long-term success, this is a disaster.”

From a purely business standpoint, however, such cost-effective education reform proposals do make sense for the hedge-fund community, especially given the alternative education reform option: the legally required equitable funding of New York public schools, as mandated by the state’s highest court in 2007. Low-income New York school districts haven’t received their legally mandated funding since 2009 and the state owes its schools a whopping $5.9 billion, according to a recent study by the labor-backed group Alliance for Quality Education. Yet somehow in this prolonged period of economic necessity, billionaire hedge-fund managers continue to enjoy lower tax rates than the bottom 20 percent of taxpayers.

As a recent Hedge Clippers report pointed out, the hedge-fund community has achieved these gains over the last decade and a half by buying political influence and carving out absurd breaks and loopholes in the New York state tax code. Since 2000, 570 hedge fund managers and top executives have poured $39.6 million into the campaign coffers of New York state politicians. Thus, despite New York’s progressive reputation, its school-district funding-distribution system is actually one of the most regressive nationwide, similar to that of states like Texas, North Carolina and Missouri.

According to Michael Kink, an advocate of fair share taxes with the labor-backed Strong Economy For All Coalition, “We could fund the court order completely with fair share taxes.” This would include closing the carried interest loophole that allows hedge funds to pay a smaller share of their income in taxes than, according to Hedge Clippers, “their limousine drivers, dry cleaners, servants, helicopter pilots, and doormen.” Taxing hedge fund fees and profits fairly would bring New York hundreds of millions of dollars that could go straight to local schools. A recent Hedge Clippers analysis found that fair-share taxes and fees targeting hedge funds, billionaires, high-income LLCs and major corporations could raise between $3.1 and $4.2 billion dollars per year—well over the annual minimum required by state law’s school funding formula. But Cuomo’s hedge fund–backed proposals fail to even approach these standards, instead parroting the convenient logic of corporate education reformers that the problem is not the lack of school funding, but the way in which it is spent.

“It was outrageous when the governor said the lack of school funding was not an issue,” explains New York State Senator Liz Krueger (D). “And it’s consistent with his attempts to fail to make good on the CFE lawsuit commitment, somehow ignoring the fact that the poorest-achieving schools are also the most underfunded.” Commenting on the hedge fund forces backing such proposals, Krueger continued, “I can never know what people’s actual intentions are. But it does seem that there is a pattern of spending enormous lobbying money in lobbying and attempting to influence campaigns…. Hedge funds seem in particular to have made a fine art of not paying their taxes, allowing fundamental public services to be inadequately funded.”

Putting it more explicitly, Jonathan Westin of the labor-backed New York Communities for Change, argues the main point of the hedge fund–backed education reform push is thus “about shaping and controlling the public school system so that they will continue to get away with not paying hundreds of millions in taxes.”

In this light, the hedge-fund community’s fervent advocacy of the charter-school movement reflects its neoliberal social vision for the state and society. Charter schools are imagined as institutions where students can be reshaped to prevail against structural barriers like racism and poverty. As hedge-fund billionaire Paul Tudor Jones II claimed, contrary to decades of empirical evidence, “We proved with the charter school that the achievement gap was a myth, that with the right schools, kids from the poorest neighborhoods could do every bit as well as kids from the richest ones.”

To “make up for” pervasive inequality, in lieu of correcting it, hedge-fund billionaires like Daniel Loeb of Success Academy and Larry Robbins of KIPP have promoted charter schools that envelop students in hyper-disciplined and surveilled school environments in which their every decision, down to their most minute physical movement, can be measured, assessed and addressed. This “no excuses” pedagogical approach signals to students that the only barrier to their success is their character. In other words, as Cuomo put in his the State of the State address, students under the charter school paradigm should understand their educational opportunity as “the great equalizer.”

Read the article to see the links. Everything is carefully researched and sourced. It confirms what many of us have long known about the role of Wall Street in financing privatization and other policies that hurt teachers and public schools. And it is still scary. And anti-democratic.