Archives for category: Privatization

Long, long ago, almost everyone went to the neighborhood public school. The school had a principal, who was overseen by the superintendent. The superintendent answered to a local school board. Those were not idyllic times, to be sure, but no one ever imagined that there was profit to be found in the public schools, or that the public schools would one day be part of “the education industry.” All that is changed now. There are still neighborhood public schools, but now there is an industry that relies on entrepreneurs and market forces. You don’t have to be an educator to manage or operate or start a charter school (think tennis star Andre Agassi or football hero Deion Sanders). There are tax breaks for investors in charter schools. Charter school properties are bought and sold, like franchises or just ordinary real estate. They have no organic connection to the local community. The profit for entrepreneurs is to be found in the real estate transactions.

A recent real estate deal brought this change into focus. There is a buyer and a seller; there are investors. There is return on investment. The world has changed. The charter industry has profits and losses. They open and close. It is not about education. It is a business.

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A $45 million charter deal suggests profits on the horizon

Graduation mortar board cap on one hundred dollar bills concept
August 09, 2018(Fla.) A private real estate fund, which boasts of pioneering big money investments in charter school properties, announced this week a $45 million deal to buy four schools in three states.

ESJ Capital Partners, based in the Miami area, added the schools to a portfolio that includes a number of more traditional investments, including apartment buildings, medical offices and tourist attractions.

But the firm also owns 28 charter school properties that they say are valued at more than $650 million.

The firm promises to “provide optimum returns for our investors through disciplined procedures, selective investment criteria and structured processes,” according to their website.

Although for-profit investment in charter schools accounts for only a small slice of the movement nationally, there are examples of commercial enterprise within the system.

In some instances, a lender might be able to take advantage of a tax break because of their investment in a school that is located in an economically challenged neighborhood. In other cases, an investor might be interested in the consistent, government-back rent that charters can pay.

There is probably far more invested by a handful  of very wealthy patrons of charters, who view the movement has providing a much needed competition to traditional public schools.

Whether driven by profits or politics, the growing availability of financial support for charters is much needed, supporters say.

In comparison to traditional public schools, charters have much more difficulty borrowing money. The banking community has traditionally viewed charters operators has carrying far more risk of insolvency than traditional public schools.

Charters in most states must also pay for school improvements or new construction out of operating budgets.

A number of big philanthropic organizations have stepped in to improve the fiscal landscape for charter facilities.

The Eli and Edythe Broad Foundation has been very active in the Los Angeles area, as has the Gates Foundation in Washington State.

Earlier this year, the Walton Family Foundation—led by the heirs of Walmart founder—announced the creation of two nonprofit entities to help finance the cost of building and maintaining new charter schools. Combined, the investment from the foundation is expected to be close to $300 million.

But there apparently is also money to be made too.

In 2016, ESJ sold five Florida charter schools for $72 million to Charter School Capital, a financial services company specializing in charter schools. The partners did provide the purchase price of the schools.

The partnership’s latest acquisition are schools located in in the Phoenix area, Washington D.C. and Toledo, Ohio.

All of them are operated by Virginia-based, Imagine Schools.

ESJ reportedly has $100 million invested in properties operated by Imagine Schools.

“The Imagine campuses that we just acquired have been open over 13 years and are thriving financially and academically, with consistent high enrollment,” Matthew Fuller, chief investment officer of ESJ, said in a statement.

According to a release from the partnership in announcing the 2016 transaction, ESJ was one of the first investment groups nationally to see the potential in charter schools.

“At the height of the Great Recession, ESJ identified a niche in developing charter schools as an alternative to their traditional commercial investments,” the release said. “The real estate asset management group predicted this asset type would evolve and scale into a mainstream, single tenant investment category, attracting more institutional investors, lenders and bondholders.”

…read more

Hakeem Jeffries is a Democratic Congressman from Brooklyn. He is part of the Democratic leadership team. Some people believe he might be the next Speaker of the House of Representatives, the successor to Nancy Pelosi. He is a favorite of hedge fund managers and the charter school industry. He recently was honored by the National Alliance for Public Charter Schools as an African American charter school leader (why the organization established a racially segregated award is unclear, as it is unclear why Congressman Jeffries would accept it).

It is not “progressive” to support privatization of public services. It is not progressive to support schools staffed by non-union teachers. It is not progressive to support a “movement” that ignores racial segregation and even celebrates it. It is not progressive to support a movement financed by the anti-union Waltons, the DeVos family, the Koch brothers, and ALEC.

Progressives support public schools.

Dorothy Siegel, a longtime activist in the Working Families Party, wrote this comment about Congressman Jeffries:

“I know Hakeem well. I worked very hard to get him elected, first, to the NYS Assembly, and then to Congress, in order to defeat the even worse Democrat Ed Towns. I even raised a bunch of money for him. Then I saw him slip over to the dark side. But, make no mistake, I believe that his embrace of privatization is NOT (as he claims) primarily about wanting poor black and brown kids to get a good education, but about the fact that there is more money and power on that side than on the side of public education. That money, the hedge funders who provide it, and the corporatist establishment Democrats, were the drivers of Hakeem’s political rise. Money and power have totally corrupted him. Hakeem, like Cuomo and Booker, has and will continue to sell out our public schools when they are in the inner sanctum of their party leadership positions. Hakeem’s rise within Congressional Dem leadership is helping him to thwart ALL our efforts to reign in Congressional support for privatization. On education issues, he wis arguably more powerful than all the new progressive congresspeople we will elect in 2018, combined.

“Sad to say, we must recognize that Hakeem is THE ENEMY. He can not be defeated in his very safe Brooklyn seat, so we must all ORGANIZE to EXPOSE him as the corporate shill that he is. We must tell our progressive Congressional friends that it is NOT ok to go along with Dem leadership (Hakeem) on charters and privatization. Believe me, Hakim will have the tools he needs to fight harder for his corporate friends than anyone on our side will have, so we need to be loud and clear. We also have to insist that, for politicians to gain our support, it’s NOT ok to be “progressive” on reproductive choice and Medicare for All, etc, etc, but anything less than TOTALLY AGAINST corporatism and privatization. Time to take a stand!

“BTW, Hakeem was a key supporter of Zellnor Myrie, the victor in one of the races against the IDC traitors we defeated in the NYS Dem primary. We need to watch what Zellnor does in Albany to make sure he doesn’t pay back his mentor by supporting Hakeem’s education agenda. I’m not at all worried about the other five IDC-slayers. They are solidly and deeply pro-public education. Zellnor may be, too, but he will certainly get pressured by Hakeem and that ilk. So we need to let him know that “progressive” means 100% pro-public education.”

Sad.

Seven charter schools are closing due to poor performance on tests.

These are schools that were supposed to “save” poor kids from their “failingpublic schools.”

Who will save the students from “failed charter schools?”

Seven Shelby County charter schools are being forced to close at the end of this school year due to low performance.

The seven schools were listed as “Priority Schools,” meaning they were the most in need of support and improvement.

The State Department of Education designates schools Priority Schools for one of two reasons:

Being in the bottom 5 percent in 2015-16 and 2016-17 AND not meeting the TVAAS safe harbor, which allows schools to not be identified if they are showing high growth.

Having a graduation rate of less than 67 percent in 2017-18.

State law requires that a public charter school agreement shall be revoked or denied renewal if the school is identified as a Priority School for 2017 and beyond.

There were 27 schools placed on the Priority list, including 18 SCS-managed schools. Most will be given time to improve.

Unfortunately, the seven charter schools will have to close.

The seven charter schools that are set to close are as follows:

City University School Girls Preparatory

DuBois ES of Arts Technology

DuBois MS of Leadership and Public Policy

DuBois MS of Arts and Technology

Granville T. Woods Academy of Innovation

Memphis Delta Preparatory Charter

The Excel Center

The DuBois High School of Leadership and Public Policy and DuBois High Schools of Arts and Technology had already closed at the end of the last school year.

Its not “unfortunate” that they are closing. It’s unfortunate that the people of Shelby County were sold a bill of goods.

Will Bill Gates and his billionaire friends be accountable?

No.

Arizona has a Charter Law that ignores nepotism, conflict of interest, Profiteering, frauds, scams, etc.

Now Governor Doug Ducey is in a tight race with educator David Garcia, and Ducey wants to “reform” the charter law! And I have a bridge to sell you if you are that gullible.

Laurie Roberts of the Arizona Republic says that this is hilarious. PS: I love Laurie Roberts and Craig HARRIS of the Arizona Republic, who regularly expose charter corruption (he exposes it, she ridicules it).

She writes, to begin:

“A month ago, Gov. Doug Ducey said he wasn’t concerned that the head of Primavera charter school – which puts just 11 percent of its state funding into instruction — scored an $8.8 million “shareholder distribution” from the for-profit company that runs the online operation.

“I’m not concerned about the CEO,” Ducey told The Republic’s Craig Harris. “That is of very little interest. I’m concerned about the child and the parent and what the child is equipped to do after 12 years of education.”

“Today, Ducey and other Republicans have seen the light and the light is a freight train of public outrage racing right at them as they seek re-election.

“As a result, Ducey is now backing a set of charter school reforms proposed by state Sen. Kate Brophy McGee, R-Phoenix, who like Ducey is facing a fight to get back to the state Capitol next year.

“While I’m certainly happy to see that Ducey and his Republican colleagues at long last might be willing to plug gaping loopholes that have allowed some charter operators to plunder public money, I have to ask the same question I asked when they suddenly saw the need to prioritize public schools as teachers took to the streets this spring:

“Where’ve you been?”…

“Virtually every year, we hear an outrageous story about a charter school operator who has fundamentally failed the smell test, either by shorting kids or lining their pockets – or both.

“Virtually every year, Democrats in the Legislature propose reforms to fix laughable state laws that require hardly any oversight or public accountability.

“And virtually, every year Republicans ignore all evidence of a problem while joining hands and chanting “school choice, school choice, school choice.” This, to the delight of their dark money pals who shovel campaign money their way.

“Indeed, it is a choice to focus only on charter school successes — and there certainly are some — while ignoring problems rampant in the charter school industry.

“Just last fall, the centrist Grand Canyon Institute released the results of a three-year study that found up to up to 77 percent of charter school holders are using public funds on “potentially questionable financial transactions” — often paying themselves or their various relatives to provide goods and services to their charter schools under a price they get to set, courtesy of no-bid contracts.

“The study found that charter school executives earn on average 50 percent more than their school district counterparts while teachers earn 20 percent less. That classroom spending and academic performance are both lower in charters than in district schools.

“Rather than taking a serious look at those findings, our leaders and the charter school industry labeled the Grand Canyon Institute as “anti charter” and did … nothing.”

Florida has about 650 charter schools. Nearly half the charter schools in the state operate for profit. Charter schools on average do not get better results than public schools. Charter schools are rife with nepotism and conflicts of interest. The Leislature favors charter school expansion because many important legislators have ties to the charter industry and engage in self-dealing. Since 1998, 373 charters have closed, indicating that this is an unstable sector.

These are just a few of the conclusions of this important report about the toxic growth of charters in Florida.

The report urges serious review of the charter law. Otherwise the charter industry will continue to strip resources from public schools and create a parallel system that is wasteful, inefficient, and corrupt.

Here is a newspaper article about this report that summarizes it and includes responses from critics.

When the California Charter Schools Association celebrates the passage of a bill banning for-profit charters, it raises questions about how much the law matters.

Carol Burris has closely studied waste, fraud, and abuse in California’s charter sector. Her report, “Charters and Consequesnces” is must reading for anyone who wants to see how non-profits facilitate corrupt practice when there is neither accountability, transparency, nor oversight.

This is her review of the ban on for-profit charters, which affects a tiny number of charters in the state. Those few for-profits, she predicts, will find a way to work around the new law.

California charter law needs to be reformed, from top to bottom, to protect children and taxpayers, as well as to stop the charter raid on state funding that is intended for public schools.

Sue Legg is a retired assessment and evaluation expert who worked for three decades at the Florida Department of Education; she is past president of the Alachua County (Florida) League of Women Voters.

She writes:

>Amendment 8 Behind the Scenes: Political ideology, religion, dark money, billionaires, and of course, the money trail

Florida’s 652 charters run the gamut from small ‘mom and pop’ charters to large chains organized by for-profit management companies. Some serve children and districts well. Many others tell different stories. They involve not only political ideology but also religion, dark money networks, billionaires, and of course, self-interest.

The Erika Donalds version of the charter story starts simply. A small group of members seceded from the Florida School Boards Association (FSBA) in 2015 to form the Florida Coalition of School Board Members (FCSBM). Erika Donalds, a member of the Collier County school board and wife of Florida Representative Byron Donalds, fronts this coalition, but the political network behind it is extensive. It goes all the way to our nation’s capital.

About 14 of the 50 alternative school board association members have been publicly identified, including:

Rebecca Negron, who has just been defeated for a seat on the Martin County school board even though her supporters raised over $250,000 to unsuccessfully attack her opponent. She is the wife of Senate President Joe Negron. Senator Negron wrote the initial legislation for the Florida Tax Credit Scholarship program to give corporate taxes to private schools.

Some FCSBM members also have strong dark money ties to national conservative political advocacy groups.

Erika Donalds openly displays the Americans for Prosperity logo on her Collier 912 Freedom Council website. This is a tea party group supported by the Koch brothers and others.

In the March 29, 2018, article in the Tampa Bay Times, Speaker of the Florida House Richard Corcoran’s wife Ann, who operates her own charter school, is identified.

Shawn Frost, who is Chair of the Indian River school board, is part of this coalition.

He announced in the Indian River Guardian that he expects to be appointed to the Florida State Board of Education. Frost reported campaign contributions from Betsy DeVos, the U.S. Secretary of the Department of Education. In 2014, Frost received $20,000 in campaign contributions from the American Federation of Children run by Betsy DeVos. Frost lives in Vero Beach, but maintains a room in his father’s house in Indian River to meet the residence requirements for being on the school board. He is also the head of MVP Strategy and Policy which specializes in consulting for school board races.

A Duval School Board member Scott Shine has reportedly joined the FCSBM. He withdrew from his 2018 reelection campaign due to ‘personal attacks’.

Sarasota school board members Erik Robinson, a former Republican Party Chairman and Bridgit Ziegler are listed members. Ziegler’s campaign reported $45,000 in donations from the out of state Phoenix Media LLC. According to the Herald Tribune, the money was funneled through a PAC run by fellow board member Erik Robinson, who is often called ‘The Prince of Dark Money’.

Some FCSBM members are collaborating to build a Florida chain of Classical Academy Charters. This isn’t just any group of charter schools. They are sponsored by the Hillsdale College Barney Charter School Initiative. The College, located in Michigan, has a long religious/conservative/libertarian agenda. The DeVos immediate family and close business associates have several Hillsdale graduates. \The Barney (SmithBarney) and Stanton Foundations fund the initiative. There are 17 of these charters nationwide. In Florida, there are four: Mason in Naples, Pineapple Cove in Palm Bay, St. Johns in Fleming Island, and the newly formed Pineapple Cove in West Melbourne. Donalds and her husband have been active with the Mason Classical Academy in Collier County. Donalds is currently seeking to add a Classical Academy in Martin County where Rebecca Negron was running for school board.

Erika Donalds has more than running a charter school on her mind. She was appointed by the governor to the Florida Constitutional Revision Commission (CRC) which is convened every twenty years to consider proposals to amend the constitution. Donalds is a strategist to divide the Florida public schools into two separate systems, one for ‘independent schools’ and one for public schools established by locally elected school boards. Essentially, it would allow one system for charters and private schools receiving tax credit scholarships and one for traditional public schools.

This year the CRC was plagued with ‘log rolling’. It is a technique to bundle dissimilar proposals into one law. There is a spate of these ‘logs’ projected to be on the November ballot. Multiple lawsuits have been filed against them, and the Florida Supreme Court ruled that the League of Women Voters was correct in its opposition to at least one. This proposed Amendment 8 to the Florida constitution must be withdrawn from the November ballot. How this amendment came to be is a story in itself.

Amendment 8 combines three separate proposals: school board term limits, civics literacy and a clause stating that school boards are only responsible for schools they create. This third proposal is the heart of the amendment. The title for the amendment, however, is: “School Board Term Limits and Duties; Public Schools”. Voters might be in favor of one part of the combined proposals but opposed to another. It was a ‘take it or leave it’ strategy. The wording, even the title was intended to confuse voters.

Term limits and civics education may seem innocuous, but they are not.

Erika Donalds is also the Florida sponsor for the US Term Limits organization. This group has a well-documented conservative political agenda that targets school boards to create more opportunities to influence policy. The Koch brothers founded the US Term Limits group. The civics course requirement proposed by CRC member Gaetz, the former President of the Florida Senate, made no sense. Civics was already required by the Florida Department of Education. Former Governor Bob Graham, long a champion of civics education, stated that not only is Amendment 8 a hodge podge, it is not even good for civics education. The CATO Institute has a major focus on civics education and provides free civics material to k12 schools. Its message is clear. According to the Huffington Post, the CATO group states: “The minimum wage hurts workers and slows economic growth. Low taxes and less regulation allow people to prosper. Government assistance harms the poor. Government, in short, is the enemy of liberty.”

The third component of Amendment 8 was to remove local school board control over the authorization of new charter schools. This too represented the national move to privatize our schools by creating charters and funding vouchers to private schools. In the proposed Amendment 8, however, the schools were called ‘independent’, not charter schools. Florida Commissioner of Education Pam Stewart stated that removing local school board control over the establishment of charter schools goes too far. CRC member Patricia Levesque, CEO of Jeb Bush’s education foundation however, supported the amendment as did Marva Johnson, the President of the State Board of Education.

Erika Donalds formed a Political Action Committee called ‘8 is Great’ to sway voters to support Amendment 8. According to the Vero Communique, Howard Rich, a wealthy New York real estate investor, invested $100,000 in the ‘8 is Great’ PAC. Rich serves on the Board of the CATO institute which was founded by the Koch brothers. David Koch ran for Vice President of the U.S. in 1980 on a platform opposing social security, the FBI, the CIA and pubic schools. The billionaire Koch brothers have a long and intensive interest in promoting school choice through their Americans for Prosperity organization. They are concentrating on Florida, Arizona, Colorado, Nevada, North Carolina, Ohio, Pennsylvania, Texas, Virginia and Wisconsin. Their presence takes many forms. Watch for everything from donations to school board races, charter and voucher expansion efforts and state election campaigns. John Kirtley, the founder of Step Up for Children was a major donor. Step Up is the agency that administers a billion dollars for the Florida Corporate Tax Credit Scholarships for private schools. Indian River School Board member Shawn Frost and Duval School Board member Scott Shine have joined the PAC according to the Tampa Bay Times.

Recognizing that term limits and civics education are popular among many voters, former Supreme Court Chief Justice Wells submitted a brief to the Florida League of Women Voters in which he stated: “This change from local county school board control…is hidden by packaging the change with what are thought to be attractive proposals for term limits and civics education.” These schools were planned to be charter schools but the word ‘independent’ was substituted for the word ‘charter’.

There is a watchdog coalition of about 20 public interest groups, headed by the League, to follow and evaluate CRC proposed amendments. Amendment 8 was identified early by the coalition as part of a package of amendments intended to seize local control from city and county governments. The League of Women Voters and the Southern Poverty Law Center joined forces to file a lawsuit against Amendment 8 asking that Amendment 8 be removed from the November ballot. The suit claimed that the amendment was deliberately vague and intended to confuse the public. The circuit court in Tallahassee agreed. The State filed an appeal.

The Appellate Court immediately referred the case to the Florida Supreme Court saying, “The case involves a question of great public importance and requires immediate resolution by the Supreme Court.” The vagueness of the amendment language and its misleading title: “School Board Term Limits and Duties; Public Schools” was the basis for the justices’ 4 to 3 ruling against Amendment 8. The decision puts a roadblock in the effort to create an alternative charter school system. Some legislators will no doubt continue to push proposals to remove any local school board control of charter schools. In reality, local public schools have very limited responsibility to oversee charters, but they and the local press can shine a spotlight on what is at stake.

After sixteen years of choice, it is clear that choice divides communities, segregates children, and dissipates funding without making any appreciable improvement in student achievement. The Supreme Court has another case before it now, ‘Citizens for Strong Schools vs. Florida State Board of Education’ that has been working its way through the courts since 2009. The plaintiffs contend that Florida’s choice policy has failed to adequately fund schools and does not provide the quality education for all children that the Florida constitution requires. Of particular interest is whether there should be justiciable standards to define a ‘quality education’. The hearing is set for November 8. The future of our public school system will depend upon the ruling from the bench. The future of our public school system will depend on the ruling from the bench.

In the lawsuit that Sue Legg refers to in the last paragraph, a group called “Citizens for Strong Schools” argues that the state “is funding two separate systems of public education through its use of privately-run yet publicly funded charter schools, and vouchers that allow kids to attend private schools for varying reasons. Opponents say such programs take money away from traditional public schools.” Florida courts have rejected that argument in the past.

Gary Rubinstein notes that Eva Moskowitz’s Success Academy charter chain has been a “success” in attracting huge donations from hedge fund managers. Gary was a charter member of Teach for America and a part of the Reform world. But he got woke in 2010 at the TFA 20th anniversary celebration. He just can’t stand lies and boasting; honesty is in his DNA.

In this post, he warns that the big donors are being scammed. They believe what the PR department of Success Academy tells them. It has an obvious interest in putting out information that portrays the chain as a miracle, a miracle that can be easily copied by others. But as he shows, no one has been able to reproduce Success Academy’s test scores, and attention should be paid to how those test scores are generated.

Rubinstein has made a reputation as a miracle-buster. In this post, he does it again.

Dear Seven Digit Success Academy Donor,

Obviously if you have seven (or eight!) figures to donate to Success Academy, you are a person who does not easily fall for scams. But this time, I’m afraid you did.

There are really only two possibilities: Either Success Academy is the greatest miracle in the history of education — or the greatest Hoax…

If Success Academy is hiding some secret methods that could be scaled around the country so that other schools could achieve results even in the same ballpark, these methods would be worth billions of dollars to Eva Moskowitz. If she is for real, she has found the equivalent of Ponce De Leon’s famed fountain of youth…

I assume you were inspired by the mind-blowing statistics from Success Academy’s PR department. I assume you were impressed by the way that their 3rd grade through 8th grade test scores would make them the top district in New York State. You assume that their methods can be replicated, but no other charter school in the state has done so…

Success Academy is built on a foundation of lies and it is only a matter of time before it comes crumbling down.

I think we are beginning to understand the real purpose of Corporate Reform. The 1% and their minions repeat ad nauseum that school choice will fix all education problems, lift the poor out of poverty, and no new taxes are needed. Indeed, they have pushed for tax cuts and cheered on deep cuts to public education. We are watching a generation of defunding public schools, refusing to invest in teachers’ salaries, and a massive transfer of resources from the public sector to private institutions.

Jeff Bryant explains it here.

“Recent news stories about wealthy folks giving multi-million donations to education efforts have drawn both praise and criticism, but two new reports by public education advocacy groups this week are particularly revealing about the real impact rich people have on schools and how they’ve chosen to leverage their money to influence the system.

‘The Education Debt’

“The first report, “Confronting the Education Debt” from the Alliance to Reclaim Our Schools examines the nation’s “education debt” – the historic funding shortfall for school systems that educate black and brown children. The authors find that through a combination of multiple factors – including funding rollbacks, tax cuts, and diversions of public money to private entities – the schools educating the nation’s poorest children have been shorted billions in funding.

“One funding source alone, the federal dollars owed to states for educating low-income children and children with disabilities, shorted schools $580 billion, between 2005 and 2017, in what the government is lawfully required to fund schools through the provisions of Title I of the Elementary and Secondary Education Act and the Individuals with Disabilities Education Act.

“The impact of not fully funding Title I is startling, the report contends, calculating that at full funding, the nation’s highest-poverty schools could provide health and mental health services for every student including dental and vision services, and these schools would have the money to hire a full-time nurse, a full-time librarian, and either an additional full-time counselor or a full-time teaching assistant for every classroom.

“State and local governments contribute to underfunding too by keeping in place tax systems that chronically short schools, particularly those that educate low-income students, mostly of color. Two school districts in Illinois are highlighted – one where 80 percent of students are low-income and gets about $7,808 per pupil in total expenditures, while another, where 3 percent of students are low-income, spends $26,074 per student…

“In the meantime, while the nation’s education debt expands, the accumulated wealth of the richest Americans continues to grow. During that time period the federal government was shorting schools billions, the personal net worth of the nation’s 400 wealthiest individuals grew by $1.57 trillion, the report notes.

“There is a direct correlation between dwindling resources for public schools and the ongoing political proclivity for transferring public dollars to the nation’s wealthiest individuals and corporations,” the report declares. “The rich are getting richer. Our schools are broke on purpose.”

This is the context for Bryant’s discussion of the NPE Action Report, “Hijacked by Billionaires.” The 1% buy control of state and local races so they can advance their tax-cutting, budget-cutting ideas and promote school choice.

“What motivates these wealthy people from exerting their will in the electoral process varies. They are bipartisan politically. Some are directly connected to the charter school industry. Others have expressed disdain for democratically controlled schools and argue, instead, for school governance to transfer to unelected boards. Some are motivated by their hatred of teachers’ unions. While others believe strongly that public education needs to be opened up to market competition from charters.

“But what billionaire donors all have in common, the report authors write, is their devotion to blaming schools and educators for problems posed by educating low-income children. Instead of using their political donations to advocate for more direct aid to schools serving low-income kids, wealthy donors “distract us from policy changes that would really help children,” the report argues, “such as increasing the equity and adequacy of school funding, reducing class sizes, providing medical care and nutrition for students, and other specific efforts to meet the needs of children and families.”

Their one unifying idea is lower taxes.

His third example is a new book about how predatory elites subvert democracy.

“Rich people are playing a double game,” writes Anand Giridharadas in his new book ‘Winners Take All: The Elite Charade of Changing the World.’ “On one hand, there’s no question they’re giving away more money than has ever been given away in history … But I also argue that we have one of the more predatory elites in history, despite that philanthropy.”

The Network for Public Education asks you to join us in protesting the voucher scam.

https://networkforpubliceducation.org/2018/09/stop-voucher-tax-scam/


There is no nice way to say it–it’s a tax scam to promote vouchers.

Twelve states have designed ingenious ways to use the U.S. tax code so that businesses and the wealthy can make money when they “contribute” to voucher programs.

Here is how it works. A business or taxpayer makes a donation to a state voucher “scholarship.” Then the state gives all or most of the “donation” back as a tax credit. The donor then deducts the donation as a charitable deduction on federal taxes, even though they got the money back.

And right now it is perfectly legal.

The profiteering resulting from these tax credit voucher schemes has been marketed by tax accountants, private schools, and voucher proponents. And all of this means less money for public schools in state and federal coffers.

The good news is that the IRS is now trying to stop this.

The bad news is that Betsy DeVos’s American Federation for Children and EdChoice are mobilizing thousands to pressure the IRS to keep the scam going.

Please file your comment today with the IRS and tell them “close the loophole.”

This is all you have to do.

Go to https://www.regulations.gov/comment?D=IRS-2018-0025-0001

In the ‘Comment” box, type the phrase “I submit the attached comment in response to the IRS proposed regulations on Contributions in Exchange for State and Local Tax Credits.” Then continue with your comment. We give you a model comment to paste in below.

Enter your first and last name.

Follow the directions to submit.

Below is a comment you can use:

—————————————————-

I submit the attached comment in response to the IRS proposed regulations on Contributions in Exchange for State and Local Tax Credits.​ I am writing to thank the IRS for proposing the ending of a tax shelter that allows taxpayers to turn a profit when they fund private schools through state tuition tax credit programs. This comes at the expense of state and federal budgets. Meanwhile, people line their pockets while the rest of us pay our fair share of taxes.

Please stay the course and make sure that tax accountants, private schools, and others can no longer exploit the federal charitable deduction to promote voucher tax credits. Thank you.

It is extremely important that you do this. Please add your comment here today.

Then post this link on your Facebook page. https://networkforpubliceducation.org/2018/09/stop-voucher-tax-scam/

Open the link to read other links.