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Eli Broad Pays Yale University $100 Million to Take Charge of His Controversial Broad Leadership Academy

By dianeravitch
December 6, 2019 //
72

Many school districts have had unfortunate experiences with “Broadies,” the graduates of Eli Broad’s management program for future school leaders. The Broad Leadership Academy has sent forth hundreds of would-be superintendents to impose Broad’s top-down management style, his faith in data, and his belief that the best way to reform a public school is to close it and replace it with a privately managed charter school. Broad is one of the major funders of charter schools in the nation. Although he graduated from the public schools of Detroit, he has zero interest in public schools other than as objects for privatization. In my 2010 book, The Death and Life of the Great American School System: How Testing and Choice Are Undermining Education, I referred to the Broad Foundation, the Gates Foundation, and the Walton Foundation as the Billionaire Boys Club. Since then, I have discovered that the club has dozens of billionaire members, and a few (think Alice Walton) are Girls, not Boys. All, however, share an animus toward public schools and a passion for privatization of what belongs to the public.

The big news is that Eli Broad has given $100 million to Yale University to administer his efforts to train future leaders of schools. It is not clear where the faculty will come from, since the Broad training program is unaccredited and is led by Broad allies, not academicians or scholars.

Now the graduates will be accredited, but their degree won’t mean much unless the philosophy of the program  changes from its current emphasis on DPE (“Destroy Public Education”) to SPE (“Support Public Education”). That change is hard to imagine. If you want to see the fruits of Broad’s distorted thinking, look no farther than Detroit and Oakland, where Broad-trained leaders encouraged (or imposed in the case of Oakland) massive charter expansion, a goal shared with Betsy DeVos. Michigan’s Education Achievement Authority, whose leadership he selected, collapsed in failure.  Oakland continues to suffer from the disruptive actions of Broadie leaders. His efforts to hand half of the students in Los Angeles over to charter schools have thus far been foiled.

Read Mercedes Schneider’s account of the multiple failures associated with Eli Broad’s agenda. 

Eli Broad is aggressive in using his money and policy agenda to destabilize and disrupt public education.

Here is the press release from the Broad Foundation/Broad Center, with the usual puffery and zero admission of the failed policies (privatization, school closings, high-stakes testing, VAM) that Broad and the graduates of his program have inflicted on American schools over most of the past two decades.

 

The Broad Center Will Become Part of Yale University to Train Future Generations of Public School Leaders

$100 Million Donation from The Eli and Edythe Broad Foundation will Fund The Broad Center at the Yale School of Management to Offer Tuition-Free Master’s Degree to Emerging Education Leaders and Advanced Management Training to Superintendents and Senior Leaders in Public School Systems

 

Los Angeles, CA – With a gift of $100 million to Yale University, The Broad Foundation today reaffirms its commitment to public K-12 education and makes possible the launch of a major new initiative of the Yale School of Management focused on strengthening leadership in public education. Building on transformative work by The Broad Center in Los Angeles, the initiative will ensure in perpetuity high-impact programs to advance excellence and equity in education.

 

The Broad Center at Yale SOM will develop research, teaching, and policy initiatives devoted to improving the effectiveness of top leaders in America’s public school systems. The ambitious initiative will leverage Yale SOM’s expertise in delivering rigorous management education to talented professionals in fields that have broad societal impact, while furthering and amplifying the previously independent Broad Center’s mission of ensuring high-quality leadership in public education.

 

“I’m very proud of what we’ve accomplished in the last 20 years and I can think of no better future for The Broad Center than Yale University,” said Eli Broad.

 

The gift is the largest ever received by the Yale School of Management and will enable the creation of a master’s degree program for emerging public education leaders and advanced leadership training for top school system executives—successors to The Broad Residency in Urban Education and The Broad Academy, respectively. The Broad Center at Yale SOM will also develop extensive research endeavors aimed at assembling the premier collection of data on public education leadership.

 

“With its mission to educate leaders for business and society, Yale SOM is a natural home for The Broad Center,” said Yale SOM Dean Kerwin Charles. “We have long recognized public education as critical to the health of our communities, and we believe that our distinctive approach to management education and research can have tremendous impact. Our efforts will build on the extraordinary work of The Broad Center team over the past two decades. Indeed, we are impressed by and grateful for what they have done to advance excellence and equity in public education.”

 

The Broad Foundation has learned through its 20 years of investing in public education that schools alone can’t solve for the inequities, indignities, and challenges facing students from underserved communities: Having The Broad Center housed at Yale SOM means all of its programs can be enhanced with input from Yale University’s leading thinkers in management, public health, law, child development, policy, criminal justice and economic development. The center will draw on the experiences and insights of practitioners, including Broad Center alumni and Yale SOM graduates, to help guide and inform its efforts in both teaching and research.

 

“I am honored that The Broad Foundation is entrusting Yale to carry out this important part of Eli and Edye’s philanthropic legacy. Educating leaders who will serve all sectors of society is part of Yale’s mission, so it is fitting that the Yale School of Management is creating a master’s degree program tailored to delivering management and leadership training that meets the unique needs of public education,” said Yale President Peter Salovey. “The school’s dedication to leadership education and cultivation is unmatched. Its track record of producing transformational leaders across a range of fields speaks to the tremendous promise of the new Broad Center at Yale SOM.”

 

The two programs of The Broad Center, The Broad Academy (founded in 2002) and The Broad Residency in Urban Education (founded in 2003), have trained more than 850 education leaders working in over 150 urban school districts, public charter school networks and state education agencies nationwide. More than 150 Broad Center leaders have served as superintendents or chief executives of local and state systems, and over 70 are currently in these roles. Each program has made great strides in building a diverse network of leaders that better represent the students and families they serve.

 

“The Broad Center has been committed to evaluating and evolving its work since it was founded – continuous improvement is in our DNA,” said Becca Bracy Knight, Executive Director of The Broad Center. “Organizational leadership has a direct effect on school quality, which is why The Broad Center has worked for two decades to elevate the field of public education management. We look forward to new opportunities to increase our impact by combining each organization’s unique and complementary strengths in service of our shared mission to improve public education.”

 

The current cohorts of fellows and residents will finish their programs through The Broad Center as currently structured; successor programs run by SOM will begin in 2020.

 

In its 20 years of investing in public education, The Broad Foundation has made grants to transform school governance, improve district operations, grow high-quality charter management organizations, engage in education policy and advocacy, and develop talented leaders, managers and teachers for public school systems.

 

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Categories Accountability, Broad Foundation, Charter Schools, Closing schools, Corporate Reformers, Detroit, Education Industry, Failure, Los Angeles, Michigan, Privatization

Politico: Betsy DeVos Thanks ALEC for Its Ideas to Defund Public Schools

By dianeravitch
December 5, 2019 //
13

Politico reports that Betsy DeVos thanked her ideological bedfellow, ALEC, for its help in framing proposals to defund public schools (aka vouchers, opportunity scholarships, tax credits, education savings accounts, a rose by any other name, etc.).

ALEC is the far-right extremist libertarian organization that hates public schools, gun control, unions, environmental regulations, and anything else that infringes on the right of corporations to pursue profits without regard to consequences. ALEC is also a strong supporter of charter schools.

 

DEVOS IS SCHEDULED TO THANK ALEC FOR EDUCATION FREEDOM SCHOLARSHIP SUPPORT in a speech to the council’s conference in Arizona today, the Education Department said. The proposal, which has found little traction in Congress, would create a new $5 billion federal tax credit for donations to scholarship-granting organizations to pay for students to attend private schools or expand their public education options.

— DeVos is a longtime friend to ALEC’s group of conservative state legislators. The secretary’s addressed the group’s conferences before, and drawn protests with a push for local control of education issues.

— Arizona unionists have planned extended protests at ALEC’s conference, and have been aware that DeVos would be visiting.

Categories Accountability, ALEC, Betsy DeVos, Education Industry, For-Profit, Privatization, Vouchers

Justin Parmenter: NC Software Giant Pays to Send State Legislators to ALEC Meetings

By dianeravitch
December 5, 2019 //
10

NBCT high school teacher and blogger Justin Parmenter discovered a shocking fact: a company in the state called SAS pays to send state legislators to the annual conference of the American Legislative Exchange Council (ALEC), a far-right anti-public school organization that writes model legislation. SAS sells software to districts and states to evaluate teacher effectiveness.  The SAS software is very controversial because it’s algorithms are secret and proprietary. Teachers in Houston sued and won a court judgement against SAS, when the judge ruled that its secret processes were arbitrary and denied due process to teachers, who had no way to know how they were judged or if the calculations were accurate.

Parmenter writes:

The American Legislative Exchange Council (ALEC) is an infamous legislation factory which is notoriously hostile toward traditional public schools.  Its model bills are passed into law–often word for word–by state legislatures around the country.

ALEC’s education platform claims the nation’s K-12 education system is “failing our students, leaving them unprepared for college, careers, or life,” and the policies the organization writes for lawmakers offer a smorgasbord of legislative pathways for defunding public schools, especially those that serve high-poverty students.

That’s why it’s so disappointing to learn that one of North Carolina K-12 public education’s most high-profile partners, SAS Institute, is paying for members of North Carolina’s General Assembly to travel to ALEC’s annual meetings, where viewing and discussing the group’s suggested anti-public school policies is one of the primary activities.

SAS Institute is a privately held analytics software company based in Cary, NC.  Its founder and CEO James Goodnight’s net worth is estimated at more than $13 billion, making him the richest person in North Carolina by a wide margin.

SAS has an extremely cozy relationship with the NC Department of Public Instruction (DPI).  Just last month, for example, SAS hosted an event where company software specialists and professional educators including DPI Deputy Superintendent of District Support Dr. Beverly Emory presented on how to use SAS data in public schools.

Millions of North Carolina taxpayer dollars go to SAS every year for a variety of software-related education contracts.  The company provides K-12 teachers with EVAAS ratings, which employ a secret algorithm to measure individual teachers’ effectiveness using DPI’s standardized test data.  It also produces the North Carolina School Report Cards.

North Carolina’s School Report Cards assign each school a single A-F letter grade representing its overall performance. The report cards have been controversial since state legislators introduced them in 2013 as the grades are highly correlated with levels of poverty and sometimes have the effect of pushing families away from traditional public schools.

Probably not by coincidence, ALEC has been peddling its “A-Plus Literacy Act” to lawmakers since early 2011.  The model bill recommends a statewide A-F school report card system with a special focus on reporting results for students who score in the lowest 25th percentile, and it refers to the grading system as a “lynchpin for reforms.”  One such reform is also included in the bill, as ALEC recommends students who attend F schools be given an opportunity to enroll in private schools instead.

A cozy arrangement indeed!

Categories Accountability, ALEC, Education Industry, Education Reform, North Carolina, Privatization, Teacher Evaluations

Thomas Ultican: Wealthy White Elites Are Attacking the Little Rock School District

By dianeravitch
December 5, 2019 //
4

Thomas Ultican writes here about the Walton-funded effort to control the public schools of Little Rock. Given the Walton love of charter schools, we can safely assume that they hope to eliminate democratic control of the citizenry and impose charter schools. Ultican follows the money, where it comes from, where it goes.

He writes:

In an apparent reaction to the 2014 school board election, new Republican Governor Asa Hutchinson and the state of Arkansas assumed stewardship of Little Rock School District (LRSD). A law passed January 28, 2015 authorizing the takeover requires the state to give control back to Little Rock voters by January, 2020. New racially motivated proposals hearkening back to the days of openly racist governor, Orville Faubus, ensure minority residents lose their democratic rights. Big money from the Waltons – The world’s wealthiest family – is driving privatization and segregation within LRSD.

A leading Little Rock community activist, Reverend Anika Whitfield, said in an interview, “The Governor, the Attorney General and the state legislature are all controlled by the Walton family.” In 2016 when new Superintendent Mike Poore came to Little Rock from Bentonville, Arkansas (headquarter of the Walton family), Whitfield was suspicious and asked him about his relationship with Walmart’s owners. He replied, “I know you all are apprehensive; I don’t even know Jim Walton.”

Driving Corporate Education Reform in Little Rock

Littls Sis Map Attacking Little Rock Schools

Little Sis Map Showing Leaders of the Attack on LRSD

Bear in mind that the point of corporate reform (as practiced by the Waltons, Bill Gates, Eli Broad, and other of their ilk) is disruption, not school improvement. Their efforts seldom lead to better schools, but always produce disruption.

Categories Accountability, Billionaires, Charter Schools, Corporate Reformers, Disruption, Education Industry, Little Rock, Privatization, Walton Foundation

Kentucky: Districts Required to Take Charter School Training, with No Charter Schools in Sight

By dianeravitch
December 5, 2019 //
4

Back when conservative Republican Governor Matt Bevin was riding high, back when he was set to promote charter schools across the state, back when Betsy DeVos visited Kentucky to tout charter schools, every school district was required to take training on how to authorize charter schools. The applications, Bevin’s hand-picked state board assumed, would be pouring in and local boards needed training.

As it happened, the legislature never funded any charter schools, and a Democrat was elected Governor who promised to support public schools and throw out the state board and the state commissioner.

Some local school districts sought permission NOT to be trained to authorize charter schools, but the Bevin state board and state commissioner refused their request. Despite the lack of charter funding, despite the election, all districts must be trained to authorize charters! 

This is an example of stubborn and delusional ideology.

Eight Kentucky school districts on Wednesday asked to skip mandatory charter school training for their school board members, but the charter-friendly state board of education unanimously voted to deny the requests.

Officials in one of the districts, Bell County, said in its request, “Any talk of creating a charter school would not get off the ground in this environment,” according to Kentucky Board of Education documents.

Kentucky Commissioner of Education Wayne Lewis, an advocate of charter schools, and the Kentucky Department of Education staff, recommended that the school districts should not be excused from the training. Under Kentucky law, local public school boards have to approve or authorize and oversee charter schools and must receive training to do that job.

Lewis told the Herald-Leader that he made the recommendation because under current law, every local school in the state is required to serve as an “authorizer” of charter schools and any one of them can receive an application at any time.

 

Categories Charter Schools, Education Reform, Kentucky, Privatization, Stupid

The Lucrative Loophole That Charter Operators Exploit

By dianeravitch
December 4, 2019 //
40

This article about charter real estate dealings was written by Professors Preston Green III, Bruce Baker, and Derek W. Black.

They argue that lax state laws allow charter operators to reap profits while maintaining an ostensibly “nonprofit” status.

While critics charge that charter schools are siphoning money away from public schools, a more fundamental issue frequently flies under the radar: the questionable business practices that allow people who own and run charter schools to make large profits.

Charter school supporters are reluctant to acknowledge, much less stop, these practices.

Given that charter schools are growing rapidly – from 1 million students in 2006 to more than 3.1 million students attending approximately 7,000 charter schoolsnow – shining a light on these practices can’t come too soon. The first challenge, however, is simply understanding the complex space in which charters operate – somewhere between public and private.

Unregulated competition

Charters were founded on the theory that market forces and competition would benefit public education. But policy reports and local government studiesincreasingly reveal that the charter school industry is engaging in the type of business practices that have led to the downfall of other huge industries and companies.

Charter schools regularly sign contracts with little oversight, shuffle money between subsidiaries and cut corners that would never fly in the real world of business or traditional public schools – at least not if the business wanted to stay out of bankruptcy and school officials out of jail. The problem has gotten so bad that a nationwide assessment by the U.S. Department of Education warned in a 2016 audit report that the charter school operations pose a serious “risk of waste, fraud and abuse” and lack “accountability.”

Self-dealing

The biggest problem in charter school operations involves facility leases and land purchases. Like any other business, charters need to pay for space. But unlike other businesses, charters too often pay unreasonably high rates – rates that no one else in the community would pay.

One of the latest examples can be found in a January 2019 report from the Ohio auditor-general, which revealed that in 2016 a Cincinnati charter school paid $867,000 to lease its facilities. This was far more than the going rate for comparable facilities in the area. The year before, a Cleveland charter was paying half a million above market rate, according to the same report.

Why would a charter school do this? Most states require charter schools to be nonprofit. To make money, some of them have simply entered into contracts with separate for-profit companies that they also own. These companies do make money off students.

In other words, some “nonprofit” charter schools take public money and pay their owners with it. When this happens, it creates an enormous incentive to overpay for facilities and supplies and underpay for things like teachers and student services.

Many millions of dollars of public funds that were intended to educate children are squandered, they say.

It is called “legal graft.”

 

Categories Accountability, Charter Schools, Corporate Reformers, Education Industry, For-Profit, Ohio, Privatization

Chris Whittle Tries a Splashy Comeback

By dianeravitch
December 3, 2019 //
19

Chris Whittle is the Uber entrepreneur of for-profit education. Back in the 1990s, he launched the Edison Project, assuming that George H.W. Bush would be re-elected and would get a voucher plan through Congress. That didn’t happen, so Edison sought contracts to run low-performing schools. Lots of push back from districts and parents. The share price plummeted. To learn th3 story of Edison, read Samuel Abrams’ excellent book, Education and the Commercial Mindset.

After the failure of the Edison Project, Whittle raised many millions to start a for-profit private school called avenues that was to have locations around the world. He hired educators with long experience in elite private schools and had splashy openings in Manhattan and in China. tuition was over $50,000 a year. In 2015, he and the board had differences, and he moved on.

Now Whittle is opening a new international for-profit chain, and openings are planned in multiple locations, including the District of Columbia, Brooklyn, and international locations. As the roll out of the new chain proceeds, with glitz and glamour, the board of Avenues is suing Whittle for $5.8 million that he allegedly owes them.

 

Leslie Brody of the Wall Street Journal wrote:

As he wooed hundreds of guests with cocktails, mini lobster rolls and goat cheese bonbons at a reception in Brooklyn, entrepreneur Chris Whittle made an audacious claim: There are no world-class K-12 schools, anywhere.

And he intends to change that.

“Our mission is to actually create the first modern school,” Mr. Whittle told a crowd last week at the launch of a downtown site of Whittle School & Studios. His new for-profit enterprise aims to create one school with 36 campuses world-wide in a decade, with a shared curriculum and “a collective intelligence,” according to its stylish 118-page brochure.

At 72 years old, Mr. Whittle is known for marketing prowess, bold visions and major setbacks in his quest to build educational empires. He says he has raised more than $1 billion for Whittle School, including funds from investors and real-estate expenses borne by firms that construct and own its campuses. Its first sites started operating this fall in Washington, D.C., and Shenzhen, China. The Brooklyn venue, to open next fall, will be the third.

“It’s an ambitious, risky venture,” said Thomas Toch, director of FutureEd, a think tank at Georgetown University. “It’s classic Chris Whittle, to throw a long pass and attempt to run under it for a touchdown.”

Mr. Whittle, a former publisher of Esquire magazine, co-founded Edison Schools, a company that aimed to bring private-sector efficiencies to managing taxpayer-funded schools in the 1990s. The company helped usher in the charter school movement, but ran into financial problems.

In 2002, Edison Schools was investigated by the Securities and Exchange Commission, which said it inaccurately described aspects of its business in SEC filings. The company settled, saying it would add an internal audit function, without admitting or denying the SEC findings. It was taken private and renamed, and Mr. Whittle left.

Mr. Whittle’s first attempt at launching a global school in New York fizzled in the 2008 financial crisis. Then he co-founded Avenues: The World School, a for-profit institution in Manhattan, in 2012 with a pitch of 15 campuses world-wide by 2021. But he left Avenues in 2015. So far, the school has only three sites, including São Paulo and Shenzhen, China, plus a new online program with 20 students…

Whittle School plans capacity for 90,000 students in 15 countries, with much of its leadership from China, India and the U.S. “We were building from scratch an organization that was very intentionally bi- and tri-cultural,” Mr. Whittle said. “It’s been very challenging.”

His team includes such high-profile educators as Benno Schmidt, the former Yale president who worked with him at Edison Schools and Avenues; Nicholas Dirks, former chancellor of the University of California, Berkeley; and Jim Hawkins, former head of the elite Harrow School in London. Designing the schools is Renzo Piano, architect of the Whitney Museum.

Such big-ticket staff and glossy marketing are expensive, said Jonathan Knee, a Columbia Business School professor who called Whittle the “Wizard of Ed” in his book “Class Clowns: How the Smartest Investors Lost Billions in Education.” Mr. Knee questioned whether the school will be sustainable, given Mr. Whittle’s lavish spending.

“This is a startup that is going to be losing money for a long time,” Mr. Knee said. “It’s sort of breathtaking, given the track record, that he could get away with using his name as the brand.”

Mr. Whittle says his investors take the long view: “This is what I would call patient and long-term capital.”

Thomas Franco, an early investor, said he was drawn by Mr. Whittle’s expertise and deep networks in education. “Chris is a catalyst for constructive change in an industry that is very ripe for disruption,” he said. “The obvious challenges are the execution risks but so far the team has demonstrated an ability to manage these.”

Mr. Whittle puts the price of launching the Brooklyn site at more than $300 million, including the developers’ costs. It involves renovating 10 floors of the old Macy’sbuilding on Livingston Street, with a roof terrace, theater, boarding facilities and 16-foot ceilings to inspire creativity.

It advertises hands-on, personalized learning and Mandarin lessons from age 3 to help children compete in a fast-changing global economy. In an echo of Avenues, it promises students will be able to hop among campuses to study abroad. New York already has several established for-profit schools with sister sites in other countries.

With its first open house for parents on Thursday, Whittle School is soliciting applications for preschool and kindergarten next fall. Tuition and fees cost $49,500. Mr. Whittle says the bill for older grades, to start in fall 2021, will reflect the city’s other independent schools, which can top $56,000 yearly.

Some parents are leery of the model. Samuel Abrams, director of the National Center for the Study of Privatization in Education at Teachers College, Columbia University, cautions that seeking profit from tuition doesn’t fit with an educational mission, or putting as much money as possible into instruction.

“There is a lot of opacity” in the business operations, Mr. Abrams said. “You have to trust, in the case of a complex service, that the provider is going to do what was promised.”

Mr. Whittle says parents care about innovation far more than nonprofit status. “There is no way we could assemble these resources philanthropically,” he said.

The new head of the Brooklyn site, Larry Weiss, has led two nonprofit private schools, Brooklyn Friends and Saint Ann’s. He says Whittle School’s resources will liberate him from the onerous job of raising donations. “It’s an enormous relief for parents, who end up besieged by fundraising” at nonprofits, Mr. Weiss said. “People get angry with each other. People get disappointed.”

Joyce Szuflita, admissions consultant at NYC School Help, says she will watch how the school fares before recommending it. Parents “occasionally grumble that a for-profit school will be less choosy because they have to fill seats,” she said. “Any new school, for profit or not-for-profit, will have this problem.”

Another consultant, Victoria Goldman, says she is happy a new school is coming to Brooklyn, which lacks enough options. “This may not be for everybody,” she said, “but it will be on everybody’s list” to check out.

Some parents are curious. Ari Goldstein, a real-estate executive with a baby and a 3-year-old in Brooklyn Heights, wants to explore public schools nearby as well as Whittle School. He says he likes that it has “the capacity to step back and think about what is the best educational environment, and create something from scratch.”

 

In a follow up article, Brody of the Wall Street Journal described the legal battle between Whittle’s previous venture, Avenues, and Whittle. The board is prepared to force Whittle to sell his lavish East Hampton estate on Long Island, valued at more than $100 million, to settle his debt.

https://www.wsj.com/articles/schools-entrepreneur-chris-whittle-still-owes-5-8-million-to-avenues-11574289768?mod=searchresults&page=1&pos=1

Chris Whittle, the education entrepreneur who is launching a new for-profit global school in New York City, has been mired in a legal battle over his multimillion-dollar personal debt to his previous local startup, Avenues.

Legal filings by the school’s company, Avenues Global Holdings, say it lent its co-founder, Mr. Whittle, a sum in 2013 that grew to more than $13 million in 2017. He didn’t repay it on time, and the dispute landed in state Supreme Court in Manhattan in 2018.

Officials at Avenues and Mr. Whittle agreed this month that he still owed it roughly $5.8 million, records show. Avenues is one of the city’s biggest independent schools, with annual tuition topping $56,000.

Avenues officials said Wednesday that Mr. Whittle still hadn’t paid the debt and that they are seeking to force a sale of his estate in Long Island’s East Hampton, which they say was appraised at more than $100 million. It sits near the Atlantic Ocean with a view of Georgica Pond.

“Chris has failed to meet his commitments to Avenues,” said Jeff Clark, president of Avenues: The World School, by email. “Despite giving him many chances and time to cure this, we are now pursuing other remedies because of his track record of unkept promises.”

A representative for Mr. Whittle said Wednesday that “Chris anticipates paying the final $5.8 million due over the next couple of weeks.”

Mr. Whittle is known for his bold visions and major setbacks in a series of educational projects. His new business is Whittle School & Studios, which he says will become a single private school with 36 campuses world-wide in a decade. One site is scheduled to open in Brooklyn next autumn.

In a 2017 arbitration filing, Avenues Global Holdings said it lent him about $10.8 million in 2013 “to ameliorate his dire personal financial situation so he could focus on his work for Avenues.” The filing was included as an exhibit in Avenues’ 2018 legal action against Mr. Whittle. He resigned in 2015 because of disagreements with the company’s leadership, and his outstanding loan grew to more than $13 million in 2017, the arbitration filing said.

In his separation agreement, he promised he wouldn’t engage in school operations in New York City and other major cities until November 2018, according to the arbitration filing. Avenues accused him of violating that noncompete clause and his confidentiality agreement by working on the Whittle School before the clause allowed. Some Chinese officials mistook Whittle School representatives for those of Avenues, the arbitration filing said.

Whittle School’s business plan reflects Mr. Whittle’s “effort to copy wholesale the Avenues model in direct violation of his covenants,” the arbitration filing said.

Mr. Whittle vehemently denied violating the noncompete and confidentiality clauses, his representative said Wednesday, noting that the settlement agreement required that he pay only the loan amount due, and no additional damages. The representative said the allegation that Chinese officials mistook anyone from Whittle School as being part of Avenues was never substantiated.

Mr. Whittle has said he has raised more than $1 billion for Whittle School, including funds from investors and real-estate expenses borne by firms that construct and own its campuses.

Mr. Whittle is a former publisher of Esquire magazine and co-founded Edison Schools, a company that helped usher in the charter-school movement in the 1990s but ran into financial problems.

He went on to help start Avenues, which opened in the city’s Chelsea neighborhood in 2012.

Benson Lu, a Whittle School board member, said he was aware of Mr. Whittle’s dispute with his former company. “I don’t think this will be important to parents,” Mr. Lu said. “Parents care more about the quality of education and faculty members.”

 

Categories Disruption, Education Industry, Education Reform, For-Profit, Privatization

New Hampshire: Legislature Puts $46 Million Federal Charter School Grant on Hold

By dianeravitch
December 3, 2019 //
3

New Hampshire has divided government. The governor is a Republican, who chooses the State Commissioner. But in the last election in 2018, Democrats won control of the legislature.

The State Commissioner is a home-schooling parent who is hostile to public schools. He comes from the Betsy  DeVos mold.

Speaking of DeVos, she gave New Hampshire $46 million from the federal Charter Schools Program, which is her own $440 million slush fund to promote charters.

If spent, this money would double the number of charters in the state, a dramatic expansion.

But the Legislature used its powers to hold up the grant. They want answers to their questions about how the state’s public schools would be affected, and how the charter expansion would affect the state’s finances.

The pending charter expansion grant – the largest earmarked for any state – aims to double the number of charter schools in New Hampshire over the next five years. It is currently on hold, after Democrats on the Joint Legislative Fiscal Committee cited concerns that building more charter schools would lead to unanticipated costs for the state and harm existing, non-charter public schools. 

Governor Chris Sununu criticized the hold, calling the money a “game-changing grant [that] would have cost New Hampshire taxpayers nothing.”

But an analysis by the public education non-profit Reaching Higher estimated that, because charter schools are typically funded by the state rather than local districts, the state’s plan to expand charters with this grant money could cost the state over $100 million in the next ten years.

Is this a pig in a poke?

 

Categories Accountability, Betsy DeVos, Charter Schools, Education Industry, Funding, New Hampshire, Privatization

An Ongoing Debate about Charter Support Among Black and Latino Families

By dianeravitch
December 3, 2019 //
94

On November 26, the New York Times published an article that had this headline: ‘Minority Voters Chafe As Democratic Candidates Abandon Charter Schools.’

The point of the article was that many black and Latino families are very disappointed that all the Democratic candidates have turned their backs on charter schools, excepting Cory Booker, currently polling around 1-2%. The article was especially critical of Senators Bernie Sanders and Elizabeth Warren, who have, as the article put it, “vowed to curb charter school growth.”

The article implied that the shift was due to the candidates’ pursuit of the support of the teachers’ unions, and charter schools are mostly non-union. Thus, if you want the union vote, you oppose non-union charters. (In my experience, neither the AFT nor the NEA is anti-charter, since they seek to organize charters to join their unions and have had some modest success; still, about 90% of charters are non-union.)

The article was prompted by an organized disruption of a speech in Atlanta by Elizabeth Warren, who was talking about a washerwomen’s strike in Atlanta in 1881, led by black women. The disruption was led by Howard Fuller, who, as the article notes, has received many millions from rightwing foundations, not only the Waltons but the Bradley Foundation in Milwaukee, to sell vouchers and charters to black families.

Not until paragraph 25 does the article mention that the national NAACP, the nation’s largest organization representing black families, called for a charter moratorium in 2016. That fact alone should raise the question of how representative the protestors are.

I wrote this post about the article. The gist of my complaint was that the Times’ article gave the impression that black and Latino families are clamoring for more charters, when in reality there are many cities in which black and Hispanic families are protesting the destruction of their public schools and the loss of democratic control of their schools.

I questioned why the article relied on a five-year-old press release from the National Alliance for Public Charter Schools as evidence for its claim that the “wait list” for charter schools was in the “hundreds of thousands.” Actually, the 2014 press release from the charter advocacy group said the “wait list” topped one million students. My comment was that “wait lists” have never been audited or verified and that a claim by a lobbying group is not evidence.

I added to my post a commentary by Robert Kuttner, the editor of the American Prospect,  who was also critical of the article.

Both Kuttner and I heard from a reporter from the New York Times. In the response posted below, he acknowledges he made an error in citing poll data in the article, without reading the underlying poll.

I heard from one of the writers of the Times article. She said my post had many inaccuracies. I invited her to write a response and promised I would post it in full. I pleaded with her to identify any inaccuracies in my post and said I would issue a correction. She did not send a response that I could post nor a list of my “inaccuracies.”

The Times posted an article last July about the growing backlash against charter schools. But I do not think the Times has exhausted the question of why the charter “movement” is in decline.  It would surely be interesting if the Times wrote a story about why the NAACP took a strong stand against charter expansion, despite the funding behind charters. Or why Black Lives Matter opposes privatization and supports democratic control of schools. Or why black families in Little Rock, Chicago, Houston, and other cities are fighting charter expansion. None of those families are funded by the Waltons, Bill Gates, Eli Broad, Charles Koch, or Michael Bloomberg, so they don’t organize buses to take hundreds or thousands of people to demonstrations.

The Times should take note of the fact that white Southern Republicans have made the charter issue their own, and they are using it to recreate segregated schools. Indeed, the Republican party has made charter schools and vouchers the centerpiece of their education agenda, and Democrats in most state legislatures have resisted that agenda and support public schools. There is also the fact that DeVos and Trump are pushing charters and school choice even as they dismantle civil rights protections.

I wish the Times had noticed a court decision in Mississippi a few months ago that upheld the right of the state to take tax money away from the predominantly black public schools of Jackson, Mississippi (which are 96-97% black), and give it to charter schools authorized by the state, not the district. They might note that the sole black justice on the Mississippi Supreme Court, Justice Leslie King, dissented from that decision. The district, under black leadership, fought that decision and lost. The black parents of Jackson, Mississippi, are fighting for adequate funding of their public schools, while the white Republicans in state government are imposing charter schools.

In Justice Leslie King’s dissenting opinion, which Justice James Kitchens joined, he wrote “This Court should not be a rubber stamp for Legislative policies it agrees with when those policies are unconstitutional.”

Public school districts in Mississippi receive local funding from ad valorem tax receipts. When a student enrolls in a charter school, which is a free public school, money that would have gone to the district follows the student to the charter school instead.

My view is that we need a great public school in every neighborhood, with experienced teachers, a full curriculum, a vibrant arts program, a nurse, and all the resources they need for the students they enroll. I think that charter schools should be authorized by districts to meet their needs and supervised by district officials to be sure that there is full transparency and accountability for the academic program, the discipline policies, and the finances. Charter schools should complement public schools, not compete with them or supplant them.

Here is Robert Kuttner’s second commentary on the article:

americanprospect

 

DECEMBER 2, 2019

Kuttner on TAP

Charter Schools and the Times: a Correction and Further Reflections. I made an error in my On Tap post last week on the New York Times feature piece on black public opinion and charter schools.

My post criticized the Times for publishing a page-one story with an exaggerated headline, “Minority Voters Feel Betrayed Over Schools.”

The Times piece cited a poll showing black support for charter schools at 47 percent. My mistake was to infer from this figure that black support and opposition were about equally divided. As one of the story’s authors pointed out in an email, the actual poll showed support at 47 percent, opposition at 29 percent, and no opinion or similar for the rest.

That 29 percent opposed figure was not mentioned in the Times piece. Nonetheless, I should have pursued the underlying poll and reported it, and not just made assumptions. I regret the error.

That said, polling results vary widely depending on the wording and framing of the question, the sponsor of the poll, and the context. For instance, a poll by the Public Policy Institute of California, in a state that has more charters than any other, reverses the finding of the Education Next poll cited by the Times. In California, blacks, with just 36 percent support, were far less likely to support charters than whites.

One of the two polls that the Times linked to used the phrase “public charter schools.” Most charter schools are public only in their taxpayer funding; their actual accountability to public systems varies widely. Many are for-profit, or nominally nonprofit but managed by for-profit management companies.

Another poll, which my post cited, by Peter Hart Associates (for the American Federation of Teachers), finds that black parents are strongly opposed to the idea of reducing funds for public schools and redirecting them to charters, which is often the practical impact of increased spending on charters. As this study shows, the practical effect of charters, in a climate of fiscal scarcity, is often precisely to divert funds from public schools.

I owe our readers a much deeper look at the charter school controversy, as well as error-free reading of polls. Both will be forthcoming. ~ ROBERT KUTTNER

Robert Kuttner’s new book is The Stakes: 2020 and the Survival of American Democracy.

Follow Robert Kuttner on Twitter

Categories Accountability, Arkansas, Billionaires, Charter Schools, Chicago, Corporate Reformers, Democrats, Education Industry, Education Reform, Houston, Little Rock, Mississippi, Privatization, Resistance, Unions, Walton Foundation

Indiana: Karen Francisco on Shady Charter Real Estate Deals

By dianeravitch
December 3, 2019 //
10

Indiana legislators have rewritten state laws to favor privatization of public assets. If a public school is considered unutilized, a charter operator can claim it for only $1. When the West Lafayette school district sued to challenge the law, a judge sided with the legislators. Give the public school away to a private operator, even though it belongs to the public who paid for it!

Karen Francisco, the brilliant editor of the Fort Wayne Journal Gazette, writes here that the state’s political leadership is conspiring against the public interest by giving away public property to entrepreneurs. More than once, the  public has been fleeced by shady charter operators in search of profit.

The “real estate racket” that the legislature endorsed on behalf of charter entrepreneurs is draining millions of dollars away from taxpayers in Indiana and other states.

It would take an accountant to disentangle the tangled web of real estate deals that allow charter operators to rip off the public.

Francisco tries to explain it here:

A decade ago, The Journal Gazette reported a local charter school, Imagine MASTer Academy, was using state tax dollars to pay a for-profit landowner nearly triple in rent what it could have paid to own its building outright.

No one – not the governor, attorney general or any lawmaker – stepped up to protect taxpayers from that poor deal. None showed interest in the growing number of national headlines about charter school real estate scams. In announcing last week it was getting out of the charter school business, the former property owner of Imagine MASTer Academy illustrated why West Lafayette and other public school districts must challenge Indiana law.

Admittedly, the complex shell game is tough to follow, but no one should doubt who is prospering when an out-of-state real estate investment company boasts of 10.5% returns on a charter school portfolio that just sold for $454 million. Is it any wonder Indiana teacher salaries weren’t growing?

EPR Properties of Kansas City, Missouri, bought Imagine’s North Wells Street campus in 2008 from Schoolhouse Finance, the real estate arm of Imagine Schools Inc., a management group hired by businessman Don Willis and other area residents to operate the local charter school. The sales price was $5.5 million. Two years earlier, Schoolhouse had bought the campus from the YWCA. EPR, a real estate investment trust, sold it back to Schoolhouse eight years later for nearly $7.4 million. Just two years later, it was sold to Wallen Baptist Church for $3.25 million.

In the interim, Indiana taxpayers made rent payments of nearly $2 million in a three-year period alone. Under a triple net lease, the public was also on the hook for the for-profit company’s property taxes, insurance and maintenance. When the charter school faced closure because of poor academic performance in 2013, Imagine was converted to Horizon Christian School. State officials, under another charter-friendly law, forgave $3.6 million in loans to Imagine.

We don’t know how much Horizon Christian School paid in rent during its six years at the Wells Street site.Although the school, now at3301 E. Coliseum Blvd., is supported almost entirely by taxpayer-funded vouchers, its financial affairs are not subject to public access laws.

The entrepreneurs are betting that the public won’t be able to follow the trail of bread crumbs that transfers millions of dollars from taxpayers to the bank accounts of private corporations.

Categories Accountability, Charter Schools, Education Industry, Education Reform, For-Profit, Indiana, Privatization
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