Archives for category: Privatization

Maurice Cunningham is a Professor at the University of Massachusetts who writes a blog that”follows the money.” He also happens to be one of the heroes in my new book “Slaying Goliath.”

In this post, he warns that philanthropists are using their vast resources to buy control of the news, in this case, the Boston Globe. You may recall that Eli Broad gave the Los Angeles Times $800,000 a year yo increase its education coverage at the same time that he was trying to buy control of the LAUSD school board and ultimately put half the city’s children in charter schools. Fortunately, another billionaire bought the paper who was not interested in the schools, and Broad’s money went down the drain.

In Boston, as Cunningham explains, the Barr Foundation made a $600,000 gift to the Boston Globe. He explains that the Barr Foundation has a long history in the privatization movement.

This is not an innocent, no-strings-attached gift.

Cunningham writes:

The announcement last week of the $600,000 grant from the Barr Foundation to the Boston Globe was presented as a public spirited philanthropy offering the Globe the means to research our education system’s failures and report back on how to fix them.  It is not. It is the dawn of philanthro-interest group journalism.

That’s a mouthful so let me explain. Journalism is easy – the Globe is the most important media outlet in the state. Philanthropy is something that generates positive responses as leading citizens “give back” to the community. What? You’d rather have them buy another yacht? But philanthropies are increasingly acting like interest groups[1] and that is what Barr is doing. It’s expending money to gain influence for its policy preferences on education.[2]

Get over the idea of Barr as a disinterested philanthropy scrupulously pursuing only the public good. It’s an interest group. How so?

Consider the political operating charities Barr has been supporting in the bitter contest between union and civil rights and community groups versus the wealthy interests who wish to privatize public education. Barr’s Form 990 tax returns show it routinely donates to political non-profits that promote privatization.

  • In both 2015 and 2016 Barr gave $200,000 to Stand for Children, a beard for privatization interests. (SFC, then funded by members of Strategic Grant Partners, was behind the 2010 charters ballot measure and the 2012 anti-union ballot proposal, both of which ended in compromise legislation).
  • In 2016 Barr gave $125,000 and in 2017 $175,000 to Educators for Excellence “to support the launch of E4E’s Boston chapter.” E4E is a faux teachers operation, a company union alternative to real teachers’ unions.[3]
  • Barr has contributed to Massachusetts Parents United, the Walton family front that executes privatization activities for the WalMart heirs.[4]
  • Just this year Barr funded the rollout of SchoolFacts Boston, a new operating non-profit headed by former mayoral candidate John Connolly, whose candidacy was backed by $1.3 million in dark dollars from Democrats for Education Reform Massachusetts. Connolly recently appeared at a DFER event.

We also can’t ignore the history of the money man behind Barr, Amos Hostetter Jr. (By the way, did Hostetter donate to DFER for the 2013 Boston mayor’s race? We’ll never know. DFER is a dark money front).

  • In 2009 Hostetter contributed $32,500 to the Committee for Public Charter Schools, the ballot committee formed by Stand for Children to support a ballot initiative in support of more charter schools.
  • In 2016 Hostetter secretly donated over $2 million to Families for Excellent Schools in favor of Question 2 to increase the number of charter schools. Because Hostetter hid his donations behind that dark money front, his largesse was not known until the Office of Campaign and Political Finance ruled that FESA had violated state campaign finance law and ordered it to disclose the true sources of its funding. Hostetter was the fourth largest individual donor to FESA.[5] If not for OCPF, we’d never know.[6]

Keep reading. The Barr Foundation is buying influence. It’s money will be used to point the Globe to ideas favored by Barr and to ignoreodeas that Barr dismisses.

This is a new-dangled kind of corruption.

 

In this post, Jan Resseger surveys the war against public schools in Florida.

Sue Legg summarized the abject failure of Jeb Bush’s A+ Plan here.

The drive to privatize public schools was masterminded by Jeb Bush, with the help of Betsy DeVos, a compliant Republican Legislature (including some who own or operate charter schools), and a zest to give public money to entrepreneurs and grifters.

Asshe points out, recent legislation requires school districts to share their tax levies with charter schools over which they have no control.

Privatization and school choice are rooted in the desire for profit and segregation.

Despite Jeb Bush’s propaganda campaign, his A+ Plan deserves an F-.

Bush, that educational genius, invented the idea of labeling schools with a single letter.

Floridians now treat school grades as normal, but only 15 states require them, mostly low-performing. states. 

I have said it before and I was say it again: School grades are stupid. They are idiotic. Under Bloomberg as mayor, NYC had school grades for a few years. They were meaningless. The public school in my Brooklyn neighborhood was rated A one year; the Mayor and Joel Klein made a ceremonial visit to the school to congratulate the principal and staff. The next year it got a grade of F. Nothing had changed. Same principal, same staff.

If your child came home with a report card that had only one letter, you would be incensed. Why then should anyone accept a single letter grade for an institution with hundreds of staff and students and multiple programs?

School grades deserve an F. A truly dumb idea. No state should use them.

Education in Florida is a mess that is designed to benefit privateers and harm public schools.

Bill Phillis of Ohio writes:

School Bus
Cleveland Plain Dealer analysis of trends in test scores in HB 70 districts: NO IMPROVEMENT
The state takeover of school districts (HB 70 of the 131stGeneral Assembly) has caused chaos in school communities, fattened the wallets of consultants, but has not demonstrated improved test scores.
The federal government, via No Child Left Behind (NCLB), has created chaos in school communities throughout the nation. Every Student Succeeds Act (ESSA) is not much better than NCLB. The feds are attempting to run schools via NCLB and ESSA with no success. Some states like Ohio are also trying to run school districts with no success.
The feds need to help the states implement a system of education in accordance with each state’s constitutional provisions. In turn, the states need to help districts provide equitable and adequate educational opportunities and then butt out of local school management. Communities have far greater capacity to manage their schools than state and federal officials.
William L. Phillis | Ohio Coalition for Equity & Adequacy of School Funding | 614.228.6540ohioeanda@sbcglobal.net| www.ohiocoalition.org
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Shawgi Tell is a professor at Nazareth College in upstate New York who writes frequently about education.

David Osborne’s Twisted Logic

David Osborne is one of America’s foremost neoliberal demagogues. He is a major representative of the so-called “Third Way,” a clever label for destructive neoliberal aims, policies, and arrangements. His constant attacks on public right can be found at the website of the Progressive Policy Institute, which is not progressive at all, as well as in a number of books emphasizing the theme of “reinventing” (read: further privatizing) government.

Osborne has spent much of his life attacking the public sector and pushing for its privatization (“reinvention”) as fast as possible. He has long been heavily funded by wealthy private interests that support neoliberal policies in every sector and sphere of society.

In the sphere of education, Osborne has been a relentless supporter of privately-operated low-transparency charter schools, which are notorious for being unaccountable, segregated, deunionized, and corrupt.

Osborne receives ample space and time on many platforms around the country to promote neoliberal disinformation masquerading as “interesting and needed discussion.” Recently, he was in Rochester, New York promoting the “benefits” of unaccountable privately-operated charter schools. His visit “coincided” with a big push by local newspapers, the Mayor, local elite, and state education officials to impose the failed state takeover model on the heavily-demonized Rochester City School District (RCSD). Naturally, thousands of people in Rochester oppose charter schools, privatization, and a state takeover of the RCSD.

On June 19, 2019, the Washington Post carried a lengthy article by Osborne with the twisted title, “‘Privatization’ doesn’t make charter schools bad. It makes them like Obamacare and Medicare.”

The entire article is straightforward disinformation designed to fool the gullible.

Comfortable with casually ignoring: (1) a large body of evidence against charter schools, (2) the fact that nonprofit charter schools are as rotten as for-profit charter schools, and that there are (3) profound differences between the meaning, definition, purpose, and scope of public and private, Osborne begins by going after some of the many people rightly opposing charter schools and privatization, starting with Bernie Sanders.

But that is not what is most important here.

The core and stubborn error with Osborne’s entire “argument,” here and elsewhere, is that it rests mainly on thoroughly and deliberately confusing the critical difference between the private and public spheres, including the very different aims, roles, and purposes of each in a modern society based on mass industrial production where all wealth is produced by working people.

Osborne desperately wants people to believe that it is more than OK if public goods, programs, and services are operated, “delivered,” or owned by the private sector. He claims that such an arrangement does not render something privatized or problematic, and that it should not really matter who runs things, as long as “the results” are “good.”

This is a self-serving, worn-out, and shallow “argument.”

Obviously, it does matter who runs, governs, and decides public programs and services in a society based on large-scale production. It matters very much and makes all the difference.

Public and Private are Antonyms

Public and private mean the opposite of each other. Public and private are antonyms. Conceptual confusion flourishes and results in antisocial policies when these different categories are mixed up and used carelessly, as so often happens.

Public refers to everyone, the common good, the general interests of society. Public means  inclusive, open, and non-rivalrous. A public service, for example, is usually free or close to free so that it is accessible by all. A public good is one that benefits everyone, whether they use it or not.

Private, on the other hand, means exclusive, not for everyone, not inclusive, not shared. Private means not open to or accessible by all.

For these and other reasons, the aims, preoccupations, outlook, drive, and agenda of public forces and private forces are not the same. Private wealthy interests and the common good are not identical; they actually contradict each other.

Osborne is eager to cover up these profound distinctions so as to justify the looting of the public treasury by wealthy private interests.

In the Washington Post article, Osborne asks: “But if a publicly funded service is delivered by a private organization, does that make it a private service?”

Yes it does. That is precisely what it means.

Once the narrow private claims of owners of capital, who are obsessed with maximizing profit as fast possible, are imposed on public programs or services, it automatically reduces the claim of workers (the producers of wealth) and the claims of government (which is supposed to serve the public) on enterprise wealth. Public-Private “Partnerships” (PPPs), for example, are nothing more than a way to funnel public funds and assets to owners of capital under the veneer of high ideals. Neoliberals cover up this money grab by “arguing” ad nauseam that PPPs are good for competition, efficiency, results, and choice. PPPs are essentially pay-the-rich schemes.

To put it another way, imposing private claims on public institutions, enterprises, and services necessarily means more public revenue for the private sector and less for the public sector. Workers and the government are the two main claimants on revenue in a public service. Once a third, private, alien claim is introduced, usually in the name of “choice,” “competition,” and “efficiency,” this automatically reduces the amount of public revenue that goes to workers and the government (which is supposed to represent the public but often doesn’t). Some of the revenues produced by working people must now go to an alien external claimant. Again, Osborne wants people to believe that publicly-funded but privately-operated services and programs are just fine, and that we should all stop complaining and just quietly embrace privatization. Osborne sees no problems with pay-the-rich schemes that harm the natural and social environment.

In reality, public goods, services, and programs are not commodities. They are not “consumer goods” or “costs.” They cannot be reduced to mere budgetary issues. This is a capital-centered way of viewing things. They are basic social human responsibilities that must be provided in a way that ensures the well-being of society and the economy. Approaching social responsibilities as a business, contract, or commodity enriches wealthy private interests and lowers the quantity and quality of services for the majority. It also increases corruption and impunity.

Neoliberals do not think it is a problem for everything in society to operate on the basis of the chaos, anarchy, and violence of the so-called “free market.” They want everything to operate according to the law of the jungle.

In the June 19 Washington Post article, Osborne gives example after example of how the rich seize and control public funds under the banner of “providing a public service.” Due to the failure to analyze society, the economy, and the difference between public and private, Osborne is unable to envision a society where the public actually controls the economy and directs the affairs of society. Objectively, he is unable and unwilling to cognize any alternatives to the destructive “Third Way.” He remains trapped in a business-centric view of life.

 

 

John Thompson says we used to disagree, but he has come around. My memory is not what it used to be, but I recall that he took issue with my use of the term “corporate reformers.” He used to think that the “reformers” were trying to help and just needed the hand of friendship extended to them. Now he thinks otherwise.

He knows that I tried to meet Bill Gates when I visited Seattle. My requests were always rebuffed. There are just so many times you can try without getting a message that the meeting will happen never.

He ponders in this post whether I hurt reformers’ feelings and whether I should care.

Ravitch acknowledged that “reformers say I am ‘mean’ or ‘harsh’ when I say that some ‘reformers’ have a profit motive or that their grand plans actually hurt poor minority children instead of helping them.” She had been told, “Bill Gates was very hurt by my comments about his effort to remake American education. He frankly could not understand how anyone could question his good intentions.” But Ravitch had never questioned his intentions, even though she “certainly question[s] his judgment and his certainty that he can ‘fix’ education by creating metrics to judge teachers.”

Ravitch confessed to being less worried about the Billionaires Boys Club’s feelings than their “constant repetition of the blatant lie that American public education is a failure.” She said, “Dear reformers, please know that I didn’t mean to hurt your feelings. I just wanted to let you know that your efforts to create a dual system of publicly funded schools turns back the clock to the shameful era before the Brown decision.”

And Ravitch “wanted you to know that your reliance on standardized testing is a grand mistake.” She opposed reforms mostly based on the edu-philanthropists’ theories, and wanted them to realize “your speculative plans are not ‘hurting the feelings’ of teachers and principals, they are ruining their careers, ruining their reputations, doing real and tangible damage to the lives of real people.”

John comments with his own insights:

Communicating with representatives of the nation’s elites, I learned that most of the pro-reform experts realized that something had gone terribly wrong. Although few agreed the huge body of evidence showing that their movement had taken terrible inner city schools and made them worse, most admitted that it had not produced very many positive changes. Some of the poorest students had been helped and others had been hurt. And reformers often knew that they had had far more success driving veteran teachers out of schools than in finding replacements.

I was not completely wrong in believing we could start a dialogue. A bipartisan coalition was making Oklahoma one of the first states to undo the worst education policy of the era: the use of test scores in teacher evaluations. But I was mostly wrong and Ravitch was right. The Billionaires Boys Club merely adopted a kinder, gentler public relations spin. Then, schools were further undermined by budget cuts, and the exodus of experienced teachers, leaving public education even more vulnerable.

So, we need a new round of the type of conversations that I’ve tried, while heeding Ravitch’s hard-earned wisdom.

 

We have recently heard from political candidates who claim they oppose “for-profit charter schools” but support “non-profit charter schools.”

What they don’t know is that this is a distinction without a difference. Many “non-profit charter schools” are managed by for-profit EMOs (Education Management Organizations). Some are theoretically “non-profit” but pocket big money on their lease agreements (paying exorbitant sums to lease their space from a real estate company who is owned by the charter owner).

Peter Greene explains here how non-profits make a profit. It is legal graft, in which entrepreneurs figure out how to profit from taxpayers’ money intended for students and teachers.

His article originally appeared in Forbes.

He writes:

There is such a thing as a business that specializes in charter schools and real estate. In some states, the government will help finance a real estate development if it’s a charter school, and in general developers have noted an abundance of cash. Though, as one charter real estate loan bond financier told the Wall Street Journal, “There’s a ton of capital coming into the industry. The question is: Does it know what it’s doing?” Many states have found a problem with charters that lease their buildings from their own owners as well.

Why such interest in charter real estate? One reason: the Clinton-eraCommunity Tax Relief Act of 2000 made it possible for funds that invested in charter schools to double their money in seven years. And the finance side can become so convoluted that, as Bruce Baker lays out here, the taxpayers can end up paying for a building twice– and the building still ends up belonging to the charter company.

Management Companies

Once you’ve set up your nonprofit charter school, hire yourself as a for-profit charter management organization. Over the last decade, there have been numerous examples of this arrangement, sometimes called a “sweeps contract,” where the charter school hands as much as 95% of its revenue off to a for-profit management organization. As with real estate, there have been instances where the school’s assets (books, furniture, computers, etc) have been ruled to be the property of the management company— so even if the school tanks, the organizers walk away with assets they can cash in.

 

Tom Ultican writes here about the billionaire takeover of Camden, New Jersey. It was easy. Working with Republican Governor Chris Christie, who was eager to have someone take responsibility for the schools in the state’s poorest district, the billionaires got what they wanted.

Camden was their plaything, their Petri dish.

Have they ended poverty yet?

The biggest battle in the fight against privatization has been to persuade the Democratic Party that it had been hoaxed by Republicans into adopting the Republican agenda. According to this article in The Washington Post, Democratic support for charter schools has evaporated, at least among the candidates.

The title of the article is “Democrats abandon charter schools as ‘reform’ agenda falls from favor.” No one has more egg on their faces than the editorial board of the Washington Post, which loves charter schools and defends them at every turn.

Until 1993, Democrats supported equity and federal funding for public schools, while Republicans supported choice, testing, competition, and accountability.

Then Bill Clinton embraced charter schools, testing, standards, and accountability. Then came NCLB and it was endorsed by Ted Kennedy and the entire Democratic Party.

Then the Obama Race to the Top gave total support to the Bush NCLB approach of charters, testing, and harsh accountability, and Arne Duncan spent seven years parroting the Republican line that the best way to improve schools was to get tough on teachers, make tests harder, and open more charter schools.

According to the Washington Post, the Democratic love affair with charters is over. 

The steady drumbeat of scandals and the vivid advocacy of Betsy DeVos have killed the Democrats’ charter love. 

Suddenly, the Democratic candidates for president  seem to have realized that school choice is a Republican issue. Supporting the public schools that nearly 90% of all students attend is a Democratic issue.

This is awkward for Democrats like Governor Jared Polis of Governor and Senator Michael Bennett of Colorado and Senator Cory Booker of New Jersey, and Governor Andrew Cuomo of New York, all fans of charters.

Democrats have long backed charter schools as a politically safe way to give kids at low-performing schools more options. Many supported merit pay for the best teachers and holding schools accountable for test scores.

The presidential contest is proof that’s no longer the case.

If the candidates say anything about charter schools, it’s negative. Education initiatives boosted by the Bush and Obama administrations are nowhere to be found in candidate platforms.

Instead, the Democratic candidates are pitching billions of dollars in new federal spending for schools and higher pay for teachers, with few of the strings attached that marked the Obama-era approach to education.

It adds up to a sea change in Democratic thinking on education, back to a more traditional Democratic approach emphasizing funding for education and support for teachers and local schools. Mostly gone is the assumption that teachers and schools are not doing enough to serve low-performing children and that government must tighten requirements and impose consequences if results do not improve.

As a senator, Joe Biden said private school vouchers might help improve public schools. As vice president, he was atop an administration that made support for charter schools a requirement to access federal grant funding. But when asked about charters — privately run, publicly funded schools — during a recent forum with the American Federation of Teachers, Biden sounded a negative note.

“The bottom line is it siphons off money for our public schools, which are already in enough trouble,” he said….

Bernie Sanders thus far is the only candidate to call for an end to federal funding of charter schools. The safe position for Democrats is to oppose “for-profit” charters, while ignoring the fact that many “nonprofit charters” are operated by for-profit management corporations.

The story continues:

It’s an unsettling development for advocates of the structural changes that have fallen out of favor, and a sharp turn from where many Democrats were just a few years ago. Former presidents George W. Bush and Barack Obama had pushed a bipartisan drive for accountability, and charter schools were the answer for Democrats who opposed private school vouchers but wanted to offer other options to children — often children of color from low-income families — assigned to low-performing schools. They were important to some civil rights leaders and became a central plank in the drive for school accountability….

The American Federation of Teachers has been hosting candidate forums throughout the country, inviting contenders to spend a day with teachers and then answering questions town hall-style.

At the town hall with Biden last month, AFT President Randi Weingarten was so warm and complimentary that it left some with the impression she was laying the groundwork for an endorsement.

“Vice President Joe Biden was our north star in the last administration,” she said. “We didn’t always get along with the Obama administration positions on education, but we had a go-to guy who always listened to us.” She added: “He’s with us because he is us.”

During the Obama administration, the National Education Association was so angry it called forEducation Secretary Arne Duncan to resign, and the other big teachers union, the AFT, came close…

The shift underway has Democrats who support charter schools and related policies nervous. Democrats for Education Reform is circulating results of a poll that show support for charter schools is higher among African American Democrats than whites. But overall, the poll found just 37 percent of Democratic primary voters have a favorable view of charters.

Some like-minded Democrats are working on something they call the Kids New Deal, hoping to find a candidate to support it. The centerpiece of the proposal is to make children a “protected class” under the law, which would make it easier for them to file lawsuits challenging, for instance, tenure for teachers, on the grounds that it hurts children.

“The goal here is to outflank the teachers unions from the left and not from the right,” said Ben Austin, a longtime education restructuring advocate.

DFER is the hedge fund managers group created to persuade Democrats to act like Republicans and support privatization. It offered big money for candidates who swallowed their line. DFER was condemned by the state Democratic Party in both California and Colorado as a front for Wall Street and corporate interests.

 Ben Austin is one of California’s most aggressive charter school proponents, having run the faux Parent Revolution, whose goal was to convert public schools to charter schools. He spent millions of dollars from Gates, Waltons, and other billionaires, but converted only one or two public schools. If he is behind the “Kids New Deal,”’it is probably another billionaire-funded privatization vehicle.

The great news in this article is that those who have warned Democrats to return to their roots and stop acting like Republicans have won the debate.

 

One of my friend’s in Mississippi sent this column by Bill Crawford in Meridian.

Crawford says the Governor and Legislature regularly complain about federal mandates, and he agrees with them.

But unlike them, he asks why the Governor and Legislator passed a law for charter schools that takes tax money away local districts without their consent. Isn’t this what they complain about when Washington does it?

He writes:

Let’s take a look at the lawsuit against charter schools now pending in the Mississippi Supreme Court.

The state established charter schools outside the normal public school domain. They do not answer to local elected school boards and have their own state agency, not the Mississippi Department of Education. In setting them up, the state mandated that local schools transfer funds to charter schools, so much per local student attending the charter school. This includes a share of local tax revenue as well as state revenue.

Now, remember that local elected school boards set property tax millage rates based on what the regular public schools need to operate. Maximum millage and annual increases are also limited by state mandates.

Parents of students in Jackson public schools have sued the state for taking their local tax money and giving it to charter schools in the city.

The state contends school money, state and local, should follow the students.

Local school advocates contend, since neither local voters nor local school boards had a say in the establishment or operation of these charter schools, just the state, tax money local school boards authorized should stick with the schools for which the money was intended.

Hmmm.

Sure looks like state government overreach to me. Local school boards are a lot closer to the majority of their people than state government.
I have often said that corporate reform is neither conservative nor liberal. It is anti-democratic.  It’s advocates believe in squashing local control and vesting power in a mayor or governor, who can be controlled by the money interests.
The privatizers are fundamentally anarchists. They don’t believe in self-government.
The Southern Poverty Law Center is suing the state of Mississippi because it’s charter law takes money away from the impoverished district of Jackson, without the consent of the people. That’s just plain wrong.

 

This article was published in the Detroit Free Press on a day when not many people were paying attention, December 25, 2018, but it should have been national news.

The Waltons, heirs to the anti-union Walmart empire, have been investing in black organizations to spread their views about charter schools.

The fact that the NAACP and Black Lives Matter have stood up to the bully billionaire behemoth and demanded a moratorium on charters is astounding and a great credit to their integrity.

It begins:

Amid fierce debate over whether charter schools are good for black students, the heirs to the Walmart company fortune have been working to make inroads with advocates and influential leaders in the black community.

The Walton family, as one of the leading supporters of America’s charter school movement, is spreading its financial support to prominent and like-minded black leaders, from grassroots groups focused on education to mainstream national organizations such as the United Negro College Fund and Congressional Black Caucus Foundation, according to an Associated Press analysis of tax filings and nonprofit grants data.

Here is the most astonishingly hypocritical statement in the article:

Those closest to the challenge often have the best solution,” Marc Sternberg, who leads the Walton Family Foundation’s education efforts, said in a prepared statement.