Archives for category: Privatization

John Thompson, historian and retired teacher, reviews an important new book.


Lawrence Baines’ Privatization of America’s Public Institutions: The Story of the American Sellout combines analyses of assaults on four public sectors, the military, corrections departments, public schools, and higher education, to reveal the immense scale of privatization and its dangers. Dr. Baines, the Associate Dean of Education at the University of Oklahoma, shows that “Privatization is no longer an occasional strategy to help improve efficiency of a particular public service.” It “has become an automatic response to any perceived governmental inefficiency.” Baines carefully documents the ways that “Privatization is changing the nature of America’s public institutions and consequently, the character of the country.”

The first chapter, “Privatizing the Military: Profiting from the Carnage of War,” foreshadows a frightening pattern that explains why I, for one, was slow to see the full nature of the threat. It starts in 2007 with the killing of 17 persons in Baghdad by mercenaries employed by Erik Prince’s Blackwater. The people I know were horrified by that and other behavior of contract fighters when Dick Chaney, formerly of Halliburton, was Vice President. I had no idea, however, that by 2015, private contractors in the Mideast would outnumber soldiers by a 3 to 1 margin.

By that time, 44% of Department of Defense discretionary spending went to private contractors. As one military analyst said, contractors had become “the fifth branch of the military.” Baines explains how the inability to hold contractors accountable leads to an unknowable number of killings, meaning that we can’t evaluate the human and moral costs of military privatization any more than we can calculate the true financial costs.

Baines reports that we have reached the point where ROTC officer training is contracted out. Since the program acculturates cadets who will become the leaders of our democracy’s armed forces, an analyst says, this form of privatization may produce “‘longer-term effects on the overarching values that motivate military service.’”

This reader thought he had a more thorough understanding of the topic in the next chapter, “Privatizing Corrections: Making Money from Misery,” which documents the costs in money, lives, and our values of privatized prisons. I had read about numerous individual scandals, such as Montana Two Rivers Detention Center which was funded with a $27 million bond issue in 2007, but I had not seen the bigger picture described by Baines. Two Rivers remained vacant for 9 of 10 years but the private corporation which ran it still made money. Similarly, Mississippi had to pay off the debt of about $121 million for a closed prison, but its operators, Geo Group made over $2 billion. And with the scandal-ridden Pennsylvania institution, where the program was dubbed “kids for cash,” private operators walked away with profits for a million-dollar condominium and a $1.5 million yacht.

It’s bad enough that private operators charge more for detentions that were more brutal towards adult inmates, but since crime has declined, they’ve moved into even more disgusting systems for making big bucks, such as juvenile detentions. More than half of incarcerated juveniles are locked up for nonviolent crimes; 21% committed no crime. They are locked up due to “technical violations,” and “status offenses.” So, an institution profits from detaining a 13-year-old who didn’t show for a hearing about a fight he didn’t witness and a 15-year-old girl who ridiculed an assistant principal on social media.” The median time for a juvenile for status offense is 128 days.

Then the story grows more horrific. As states like Oklahoma over-incarcerate on the cheap, fees and fines become an essential funding source. I knew how cruel the situation is in Oklahoma, where we are #1 in the world in incarceration rates, but I had no idea that 48 states have gone down that path. And since fees and fines are a doomed method of funding the overgrown incarceration complex, monitored release of inmates is growing. That creates another market for privatizers, electronic bracelets to oversee parolees. And, surprise!, the lucrative, private market for monitoring those devices is “subject to virtually no judicial oversight.”

And the story became even more unconscionable as private prisons moved into another growing market, immigrant detentions. Since 2003, 176 immigrant deaths have gone largely unreported by for-profit institutions. And private prisons have enabled Trump’s attacks on immigrant families.

Moreover, the dangers and costs of privatized prisons, like those of privatized schools, have grown worse during the Trump administration. And that leads to Baines’ concise indictment of the privatization of public schools through charter schools and vouchers. Readers of this blog are well-versed in the ways that privatization has undermined public education, so I will merely touch a few of Baines’ insights in Chapter Three, “Privatizing K – 12 Public Education: How the Profit Motive Is Changing Schools,” as well as recommend a full reading of his evidence.

The use of privatization as a tool for corporate school reform has denigrated teacher quality and fostered dumbed-down education. It uses technology to reduce number of teachers needed in the culture of data-driven competition it created. It has gotten to the point where 5,000 emergency certificates were issued in Oklahoma in 2017 and 2018. Next door, Texas adjudicated 222 cases of teacher misconduct in 2016, with most involving sex acts with minors. The backlogged caseload is over 1,100.

And privatization has increased inequality and segregation. Baines offers a corrective to the spin of charter advocates who deny they have promoted segregation, “Most minority students who attend privatized schools have few white classmates; most white students who attend privatized schools have few minority classmates.”

The next topic that Baines analyzes, higher education, is intertwined with the legacy of privatization by charters and vouchers, as well as the budget-cutting that has devastated k – 12 education in Oklahoma and many other states.

Early in the chapter, “Privatizing Public Education: Selling Off the Alma Mater,” Baines lists the ten states that have cut higher education by 26% to 54% from 2008 to 2017. Oklahoma is 6th, with cuts of 34%. In 1996, higher education privatization was basically limited to five support services. By 2017, there were 17 categories of privatized services, culminating with academic programs. Moreover, in 2016, 1/3rd of universities outsourced their online programs.

Public school teachers have more than enough experience with the testing toxicity pushed by the Pearson corporation and Eli Broad. Less well known is their intrusions into universities. Privatizers have even moved into micro-credentialing, making money off of credentials for skills like “Checking for understanding using whiteboards.” Moreover, when these online providers are both a private company and a LLC (Limited Liability Company), they aren’t obligated to reveal their instructors’ qualifications.

To take just a couple of Baines’ examples, the Eli Broad College of Business, Michigan State University gets 32% of the gross revenue in partnership with Bisk, “a corporation specializing in curricular design, online education, and student support,” which gets 68% of the gross revenue from the Business Analytics master’s program. Baines notes that most students probably don’t know that they will not be taught by M.S.U. faculty, as opposed to Bisk employees who may not have a degree in the subject they are teaching.

A similar lack of transparency is illustrated by Arkansas State University’s Academic Partnership program where students aren’t told that they may not have instructors from their university, and that A.S.U. program’s website is virtually identical to its counterpart at U. of Texas, Arlington, which has 18 tenure-track faculty and a 1000-1 ratio for tenure track faculty.

Finally, Baines listed the costs to graduates, and students who failed to graduate from our privatized universities. Ironically, these debts are, in large part, a legacy of corporate school reform which claimed to be a “21st century civil rights movement.”

From 2010 to 2016 individuals with at least some college “captured 11.5 million of the 11.6 million jobs available.” Pay for workers without a high school diploma is less than half of that for workers with a college degree, so access to high-quality education should have been an important tool for achieving equity. But even when a student earns college degree, privatization has undermined the prospects for many or most graduates. Pell Grants used to pay 75% of 4-year college costs but now they only pay for about 30%. Consequently, former university students have accumulated $1.5 trillion in debt.

Too often, the value of university degrees has been compromised. Today, 70% of higher education instructors are adjuncts. The university’s mission of service to society has been de-emphasized. College is supposed to be a transformational experience “a rush of unfamiliar people, cultures, knowledge, relationships, and interactions.” But now, the “collegiate experience is becoming commercialized, standardized, and monetized.”

Baines wraps up his account of the human and financial costs of privatizations by illustrating ways that the military, prisons, public schools, and higher education are being undermined by interrelated forces. Just as the military’s belief in service to the U.S. is put at risk, the university’s contributions to the public good are being undermined. Privatized prisons lead to more segregation of inmates by race as a means of self-protection. Similarly, privatized schools increase segregation as they foster a culture of competition that increases inequality. And the tragic tale all comes together in the final chapter about the privatization of universities.

Baines explains that, “Privatization is happening so quickly and on such a colossal scale in higher education that it is difficult to stay current.” To take one example of how it is interconnected with k-12th grade schools, he shows how teacher certification is “being transmogrified into a product traded on the open market, teachers are circumventing universities and teacher preparation completely and moving straight into the classroom.” This has led to unqualified teachers being rushed into many states’ classrooms, pushing down school quality and enabling privatizers to blame the public schools.

Privatization of America’s Public Institutions is so full of memorable characterizations of the tragedies of privatization that it is difficult to select one as a concluding statement. So, I’ll borrow Baines’ quote of the Commissioner of U.S. Bureau of Education, whose words from 1891 would be equally true if applied to today’s armed forces or the penal system. The commissioner said, “let us hope, that the time is not far distant when an untrained teacher will be considered a greater absurdity than an untrained doctor or lawyer.”

Will Huntsberry of the Voice of San Diego reports that all the online charters connected to the biggest charter fraud in U.S. history will close.

Huntsberry writes:

An online charter school empire whose leaders have been charged with enrolling fake students and misappropriating $80 million in public funds will be forced to close all of its schools across California.

In May, the San Diego district attorney’s office charged 11 people in a corruption scandal of historic proportions. Prosecutors say Sean McManus and Jason Schrock, who operated A3 Education, were the ringleaders of the operation. Several who worked with McManus and Schrock have also been charged with crimes, including the superintendent of the Dehesa School District in San Diego County.

At its peak, A3 operated 19 online schools across the state, including three in San Diego, according to investigators. One closed before the charges were filed. And two more – one in San Diego and another in Los Angeles – were slated to close. But now a court-appointed receiver has decided to shutter all of the remaining schools.

Students’ records at each of the closing schools will be transferred to their school district of residence by Sept. 30, according to a letter obtained by the Marin Independent Journal, which was sent out to districts associated with the A3 schools. Richard Kipperman, the court-appointed receiver, confirmed to Voice of San Diego that all the schools will close.

How the Scam Worked

Prosecutors painted an intricate picture of a complex organization that managed to turn student records into giant sums of cash. A3 Education enrolled many students who took actual classes, but it also enrolled many students who never did any schoolwork, prosecutors say.

Most of the fake students were participants in summer athletic programs, according to the indictment. Enrollment workers would approach a football program, for instance, and offer as little as $25 a head for each player’s records. The enrollment worker would also get a commission on however many students he or she enrolled. The rest of the money – which totaled in the thousands of dollars for each student – went to companies controlled by McManus and Schrock.

In one instance, Luiz Rigney, an enrollment worker, carried several suitcases of student paperwork, worth roughly $5 million, to one of A3’s offices. Rigney had been asked to backdate that paperwork so A3 could get maximum profit, prosecutors say.

In another instance, two workers texted each other back and forth about the large sums of cash flowing through the company: “I had the weirdest dream last night! One was about us growing all Sean’s schools. I was running all the Facebook campaigns and you were running around my office drinking champagne throwing money everywhere yelling I love bonuses,” the texts read, according to court documents.

Marc Mannella opened the first KIPP middle school in Philadelphia in 2003.

He started with 90 students in fifth grade.

KIPP promised that students who stuck with the “no-excuses” regimen would go to college.

Avi Wolfman-Arent of WHYY in Philadelphia tracked down 33 of those students to find out what happened to them.

The former KIPPsters are now about 25.

Of the 90, 25 dropped out in the first year of middle school.

The students entered a world of incentives and punishments, of strict rules administered strictly.

It wasn’t right for everyone.

Of the 90 students who enrolled in KIPP Philly’s first middle school class, about half were boys. By the time 8th grade graduation arrived, enrollment was whittled down to 34 students — and only 11 boys remained….

Almost none of the KIPP alumni we interviewed did four years at one high school followed by four years at one college. All of them seemed to flounder or grow restless or get sidetracked somewhere along the journey up that mountain.

KIPP propelled them to high school — usually a Catholic school or a private school or a magnet school — but they didn’t stick there. KIPP’s lessons didn’t always follow them out the door…

Here’s what the numbers say.

Six years after high school graduation, 35 percent of the original KIPP Philly class had an associate’s or bachelor’s degree. At the seven-year mark, that number was 44 percent.

What does that mean?

In Philadelphia, about a quarter of students who graduate high school earn a college degree by the six-year mark. That overall Philly number would be lower if you tracked students back to eighth grade, like KIPP does.

There’s a prominent nationwide study that tracked students starting in 10th grade.

It found that eight years after high school graduation, about 14 percent of students from the lowest income quartile had a degree.

KIPP Philly students almost all came from poor neighborhoods, and the results suggest that they earned degrees at much higher rates — rates that are about the same as middle-income students.

“And that feels like we did something that was real,” said Mannella, the school’s founder.

There are serious caveats, though.

KIPP’s number doesn’t count all the kids who left over those four years. Some of those kids did graduate college. Some didn’t. It’s quite possible that the 34 who made it through KIPP were more likely to have long-term academic success for a whole host of reasons, no matter what school they attended.
Frankly this project is incomplete, too.

We talked with 24 of the 34 alum from the original class — as well as nine students who attended KIPP Philadelphia but didn’t finish. The ten graduates who chose not to talk may have very different experiences than the 24 who did

The author wonders what is the best way to evaluate KIPP. Graduation rates? College entry? College persistence? Employment?

KIPP is now the largest charter chain in the nation.

One thing we learn from this piece is that its strict discipline code helps some students, turns off others.

Its methods are not a panacea. Most kids who enter do not persist. For some, it is a lifesaver.

Perhaps the same might be said of the public schools that were closed to make way for KIPP and the public schools that accepted the KIPP dropouts and pushouts.

Justin Parmenter here tells the story of the “white flight academy” that decided to turn itself into a charter, thus relieving the parents of the burden of paying tuition. Now the taxpayers of North Carolina get to fund this school with a long history of fighting desegregation.

Hobgood Academy was founded in 1969 and opened in 1970 as a private academy for white parents who didn’t want their children to attend desegregated (by court order) schools in North Carolina. Tuition was low ($5,000) but onerous for the parents. They realized not long ago that they could become a charter school and the state would pay all their costs.

The Hobgood parent site confirms that the primary reason behind the school’s desire to become a public charter was not to increase diversity and expand opportunity for children of poverty at all. Rather, it was to allow children who already went to the 87% White school to continue to attend it, instead of going to Halifax County Schools, where only 4% of students are White. According to 2010 census data, Halifax County’s residents are 40% White and 53% Black.

North Carolina’s Director of Charter Schools opened Hobgood’s opening ceremony as a charter school and praised it for…its “diversity.”

Do you laugh or cry when confronted with such hypocrisy?

Carl J.Petersen describes the machinations of Nick Melvoin, a school board member who was put into office by the money of the charter school lobby.

As blogger Michael Kohlhaas has demonstrated by publishing leaked emails between Melvoin and leaders of the California Charter School Association, Melvoin is looking out for the interests of his sponsors.

Larry Lee writes about a small town in Alabama called Fruitdale. He describes the central role of the public schools in that community. It is the anchor of the community.

The charter lobby doesn’t care about Fruitdale, its history, its people, its future. They have dollar signs in their eyes.

He begins:

Sweet Jesus. It was hot, like really, really hot. But what do you expect on an August afternoon in the middle of a football field just 90 miles from the Gulf of Mexico?
I was there to watch the 2019 version of the Fruitdale Pirates practice. Fruitdale is one of five high schools in Washington County. It’s a 1A school, the smallest classification in Alabama high school sports. There are dozens and dozens of such schools across the state, places where Dollar General coming to town is a big deal. (Fruitdale recently opened one.)

Places where community and school are joined at the hip. Take away the school and you’ve jerked the heart from the community.

This August afternoon coach Johnny Carpenter was getting his 32 players ready for their first game against A. L. Johnson of Marengo County. Carpenter grew up just down the road in Citronelle, played football at Mississippi State and met a cheerleader in college who later became both his wife and an M.D. This is his first year as a head coach.

When you coach at this level, you do it all. From teaching class, to cooking ribs for a fund-raiser, to lining the field, to selling signs to merchants to help pay the bills and to actually coaching. His staff is another teacher/coach, John Hobbs. Former player Michael Dubose is a volunteer coach.
There was a pep rally before the first game. Elementary, middle and high school students sweated and yelled. Cheerleaders cheered. Players were introduced. Later that afternoon, fifth grade boys went home and ran around their yard with a football dreaming of the day they could be a Pirate scoring touchdowns and making tackles. Fourth grade girls jumped and pumped their arms and yelled for their team.

I know about dreams and memories. Fifty-nine years ago this fall number 83 of the Theodore Bobcats scored the only touchdown of his high school football career. Quarterback Charles Bryant threw a short pass to his left end, a 160 pound farm boy, standing in the end zone. That touchdown catch will always be mine. No one can take it away from me.

More than anything, that is what Fruitdale is all about. A small school in a small place where dreams are realized and memories are made.

David Koch died of cancer a few days ago. He and his brother funded the free-market libertarianism that fueled the rise of the Tea Party and Trumpism. They zealously fought to destroy any government program that helped people, from Medicare to Social Security.

They were major funders of ALEC. They opposed any government regulations.

The story in the New York Times falls to mention that they funded attacks on public education and teacher certification, and they zealously supported charter schools and vouchers.

Interesting from the article:

In addition to Southampton, Mr. Koch had palatial homes on Park Avenue in Manhattan, in Aspen, Colo., and in Palm Beach, Fla. He kept a yacht in the Mediterranean for summer getaways and rented it out for $500,000 a week. His friends and acquaintances included Bill and Melinda Gates, Prince Charles and Winston Churchill’s grandson Winston Spencer Churchill.

No mention of the fact that the Koch brothers set up institutes to spread libertarianism at more than 300 colleges and universities. A resistance group called Unkoch My Campus emerged to expose their malign influence.

They insisted that they adhered to a traditional belief in the liberty of the individual, and in free trade, free markets and freedom from what they called government “intrusions,” including taxes, military drafts, compulsory education, business regulations, welfare programs and laws that criminalized homosexuality, prostitution and drug use.

More:

Among the groups they supported was the American Legislative Exchange Council, an organization of conservative state legislators and corporate lobbyists. Alec, as the group is known, drafts model state legislation that members may customize for introduction as proposed laws to cut taxes, combat illegal immigration, loosen environmental regulations, weaken labor unions and oppose gun laws.

Charter vs. charter!

Charters in California are angry at the Inspire Charter chain for poaching their students. Inspire is the chain that caters to homeschooling parents.

https://www.nbcsandiego.com/investigations/Inspire-Charter-School-Unethical-Practices-557802161.html

Critics of Inspire accuse the charter of using unethical practices to entice parents and students to leave their current charter schools and go to Inspire. A spokesperson for Inspire says the criticism is the result of the charter school’s “incredible growth.”

Inspire Charter runs a network of home schools operating throughout California; some of those schools are authorized by the Dehesa School District…

Through Inspire, parents receive instructional funds totaling $2,800 per year for students who are in kindergarten through eighth grade, according to the charter school. High school students can receive $3,000 every year. That money is used for curriculum and extra-curricular activities…

Another critic is Terri Schiavone, the Founder and Director of Golden Valley Charter School in Ventura. Schiavone says her school is one of many that are losing students to Inspire Charter.

“They target a school and then they try to get as many of their teachers and students as possible,” Schiavone said.

Schiavone said families and teachers are enticed by incentives like using instructional funds to buy tickets to Disneyland and other theme parks. Schiavone says there is a lack of oversight and accountability.

No one is making sure teachers are checking up on students’ work, and Schiavone says parents can buy whatever they want from vendors who she says are not fingerprinted or even qualified.

“It’s very desirable for some parents to enroll in schools in which nobody’s looking over their shoulder,” said Schiavone. “They can utilize whatever curriculum they want, including religious curriculum, which is illegal if using public dollars…”

But while supporters defend Inspire, the charter school has made moves to change its operations. It ended the option of using instructional funds to buy tickets to Disneyland and other theme parks last year, according to a letter sent to parents.

Then on August 1, Inspire closed its “Enrichment Adventure Program.” Through the program, parents could use their instructional funds for dinner theater productions, tickets to the Smithsonian, for example, when a family is on an out of state field trip.

Inspire says the other charters are jealous of their success.

Jan Resseger noted that the Colorado state board of education awarded a contract to MGT Consulting based on their “success” in turning around the public schools of Gary, Indiana. She shows in this post that there was no turnaround.

She writes:

Colorado state school board members praised MGT’s record in the so-called turnaround of the only whole school district it has managed—for the past two years—in Gary, Indiana. The fact that MGT Consulting, a for-profit, was praised for work in Gary caught my eye. I have been to Gary, just as I have been to Detroit, whose public schools have shared some problems with Gary’s. Detroit’s school district was assigned a state emergency fiscal manager by former Governor Rick Snyder; in fact Detroit’s school district was assigned an emergency manager named Darnell Earley after he left Flint, where, as municipal emergency fiscal manager, he had permitted the poisoning of the city’s water supply. Fortunately Detroit’s schools have been turned back to the democratically elected local school board, which hired a professional educator, Dr. Nikolai Vitti.

And I have been to the cities in Ohio now in state takeover, and being operated by appointed Academic Distress Commissions. I am thinking of Youngstown, which in four years under an Academic Distress Commission and appointed CEO, has not turned around. I am thinking of Lorain, where outright chaos has ensued under an Academic Distress Commission’s appointed CEO, David Hardy. And I am thinking of East Cleveland, whose schools are just beginning the state takeover process, and ten other Ohio school districts—including Dayton and Toledo—being threatened with state takeover.

All of these Rust Belt cities and their school districts are characterized by economic collapse. They are industrial cities where factories have closed and workers moved away to seek employment elsewhere. When industry collapses, the property tax base—the foundation of the local contribution of school funding—evaporates, and as workers lose jobs or leave, local income tax revenue collapses as well…

In July 2017, the state took over the school district in Gary and turned the schools over to a private, for-profit management company: MGT Consultants. MGT hired Peggy Hinkley, a retired school superintendent to run the schools, but she resigned a little more than a year later. The Post-Tribune‘s Carole Carlson describes Hinkley’s tenure: “Hinkley served 14 months and ruffled the feathers of some elected officials who criticized her decisions, especially the closing of the Wirt-Emerson School of Visual and Performing Arts. When Wirt-Emerson closed in June (2018), it left the district with just one high school, the West Side Leadership Academy. It stoked fears of a continuing exodus of students who would leave for charter schools or other districts… Under Hinckley, Gary reached a deal resolving $8.4 million in back payroll taxes owed to the Internal Revenue Service. The IRS forgave a large portion of the debt, leaving the district with a $320,000 payment. The freeing up of the liens on buildings allowed Hinckley to list 33 vacant schools and properties for sale. By November, the district had accepted five offers, amounting to $480,000. More sales are still being weighed. In all, Hinckley erased about $6 million of the district’s $100,000 million in long-term debts and reduced its monthly deficit from about $1.8 million to $1.3 million… Academically, all seven elementary schools received Fs on state report cards this year.”

Clearly, in Gary, Indiana, MGT Consultants has not miraculously achieved the kind of quick school district turnaround Colorado’s state school board bragged about when it contracted with MGT to take over three school districts.

Read on to learn about the role of ex-Indiana superintendent Tony Bennett and the Corporate Reform-disruption-greed Movement.

The evidence is clear that privately managed charters can get higher test scores by culling, exclusion, and attrition. It’s equally clear that charters drain resources from the public schools that enroll most students. Most public officials seem to understand that it costs more to run parallel systems, one public, one private.

But not in Rhode Island, where Governor Gina Raimondo is a big fan of charters (she was a hedge fund manager before running for governor). She is eager to expand Achievement First, a no-excuses charter known for high test scores and harsh discipline.

This article by Linda Borg in the Providence Journal lays out the findings of two independent studies that warned about the negative fiscal impact of charters on public schools (one from Moody’s Investors, the other from the Brookings Institution, which is erroneously described as “left-leaning”).

https://www.providencejournal.com/news/20190822/providences-achievement-first-proposal-refuels-charter-debate

Borg should also have Gordon Lafer’s significant study of the fiscal drain of charters on the public schools of three districts in California.

Click to access ITPI_Breaking_Point_May2018FINAL.pdf

Supporters of expanding Achievement First cite a report funded by the Arnold Foundation, a rightwing foundation that zealously supports privatization and opposes public sector pensions. Billionaire John Arnold was an energy trader at Enron.

The recently appointed state commissioner, a member of Jeb Bush’s Chiefs for Change, dismissed the controversy as an “old conversation,” showing her indifference to stripping nearly $30 million from the needy public schools of Providence.

“State Education Commissioner Angélica Infante-Green, in an interview Wednesday, called this an “old conversation,” adding that the expansion plan was approved by the Rhode Island Council of Elementary and Secondary Education three years ago after a contentious debate between charter proponents and critics.”