Archives for category: Privatization

Kenneth Campbell is a political consultant who worked in the Obama administration.

In this article, he points out that the offhand racist remark of hedge fund manager Daniel Loeb–chair of the board of Success Academy Charter Schools network–was not an anomaly.

He writes:

Loeb isn’t the only Success leader who traffics in incendiary racial commentary. Board member Charles Strauch has had a blog for years that specializes in right-wing race baiting and recycled conspiracy theories from the dregs of the Internet, many with a racial tinge.

Strauch’s blog, Wealth Creates Good, was taken down on September 5th, not long after I began Tweeting excerpts of his posts to Success, asking for a response. (An archive of some of Strauch’s post can still be viewed here.)

In one post, Strauch writes about one of his projects, praising it as a “labor of love by those of us who really care about helping blacks to help themselves,” a regular theme on a blog that he says is dedicated to Blacks who dislike being portrayed as victims by other Blacks, especially the “well-financed government-and-media-backed minority leaders.”

In another post, he chastises Joshua DuBois, a former aide to the Obama administration, disparaging him as “Political Black activist-Degree in Black Nationalism. Anti gun ownership lobbyist. How does this guy stay busy – keepin’ the faith?” DuBois, by the way, was the White House aide responsible for strengthening national unity through work with faith-based leaders and organizations. He holds a master’s degree in public affairs from Princeton University’s Woodrow Wilson School of Public and International Affairs.

Strauch has also used his blog to recycle outrageous allegations from the dregs of the Internet. Here he is, for example, sharing excerpts from a controversial story written about former President Obama, which questioned Obama’s objectiveness and ability to lead because he had taken “multiple subsequent journeys to Africa” and was raised in Hawaii. He also shared a crude satirical letter originally posted on Breitbart News and addressed to black students at Oxford University, asking: “what were your ancestors doing …? Living in mud huts, mainly. … You’ll probably probably say that’s ‘racist’. But it’s what we here at Oxford prefer to call ‘true.’”

And in yet another post, Strauch shares a fear-mongering op-ed, entitled “America is in decay.” The post, originally from National Review, claims that “for the first time – in recorded history – gender is meaningless,” which Strauch highlighted. He also highlighted an excerpt which blames “the End of Religion” as the fault of America’s “decay.” The excerpt reads: “The End of Right and Wrong … There are no moral truths because there is no longer a religious basis for morality.”

Strauch is not the only rightwinger on the Success Academy board. There are others who have donated millions to rightwing causes.

Campbell adds:

When Americans were sold the idea of charter schools more than three decades ago, the argument that they would be hubs of innovation that could reinvigorate all of our public schools gave them bipartisan appeal. Charter school leaders and their funders no longer share that vision. Instead of integrating some of their ideas into public classrooms for all children and educators to benefit, they are interested in dismantling public education for their own gain with little transparency and minimal public oversight. And, those who disagree will face the wrath of charter schools’ political organs and influence – just as Dan Loeb attacked Senator Andrea Stewart-Cousins, Charles Strauch attacked black Democrats and civil rights leaders, and Moskowitz herself attacked the NAACP, accusing the civil rights organization of turning its back on students of color.

Success Academy’s Board of Directors and leadership have collectively contributed hundreds of thousands of dollars to candidates and special interest groups, including many who challenge the rights of LGBTQ people – including LGBTQ youth – and who have worked to advance cuts to public education, youth meal programs, and young people’s access to health care.

Ultimately, it is our communities that must deal with the collateral damage. Youth and parents have been dragged into a political debate when all that truly matters to them is a high-quality education and leaders who invest in the welfare of our youth. Our communities are stronger when youth wake up in decent housing, attend a school in a clean and well-equipped school building that is staffed by certified teachers and coaches who oversee extracurricular activities; and, where students have access to a nurse or a doctor when they are ill; and, of course when youth have access to a solid meal for breakfast, lunch, and dinner.

The stench of colonialism is strong and getting stronger.

Deregulation has its downsides. When no one watches, no one supervises, bad things happen to taxpayers’ money.

In New Mexico, the state auditor happened upon what seems to be a serious case of fraud and embezzlement.

“ALBUQUERQUE, NM – Today, State Auditor Tim Keller released the results of an investigation into La Promesa Early Learning Center, a state charter school in Albuquerque. The Risk Review found about half a million dollars were diverted from the School into a former employee’s personal bank account between June 2010 and July 2016. Office of the State Auditor (OSA) subpoenas of bank records uncovered that the former Assistant Business Manager deposited over 500 checks written to 53 different vendors into her personal accounts by apparently signing many of them over to herself, through a process known as “dual endorsing.” The report outlines specific potential criminal violations such as fraud, embezzlement, larceny and forgery.

“After reviewing bank statements and school records, we discovered an apparent forgery scheme that funneled over $475,000 from the School to an employee’s personal bank account,” stated State Auditor Tim Keller. “As a result, hundreds of kids were defrauded of funding that should be going to their education. The accountability from our investigations enables the School to get to the bottom of past financial problems so they can continue serving their diverse students well into the future.”

“The Risk Review found that the former Assistant Business Manager for La Promesa deposited over $475,000 worth of checks that were made payable to various vendors into her personal bank account. Additionally, the employee deposited about $177,000 worth of checks that were payable to her mother, who was the Executive Director at the time, and her boyfriend, who was a vendor of the School. The checks made payable to the employee’s mother and boyfriend may also have been fraudulently dual endorsed. The former Executive Director was also responsible for signing all outgoing checks from the school, including the checks in question. Bank records indicate that the money was used by the former Assistant Business Manager to pay for day-to-day expenses, bills and loans.”

The Los Angeles Times knows that it is a truly bad idea to let a billionaire buy a school of his choice in the LAUSD, but hey, it is Eli Broad, and he does provide $800,000 a year to underwrite education coverage in the LA Times.

LAUSD already has STEM schools, but this is Eli’s STEM school, and he really wants it.

Besides, it will provide wonderful resources for a few hundred kids in the nation’s second biggest school district, so who can say no?

So much for public education. So much for deliberation and due process. So much for billionaires buying whatever they want.

Does the LA Times agree that any other rich person should be allowed to get funding from the state for any school they want to open? Oh, yeah, that’s charter schools.

The LAUSD board split on the issue, with the pro-charter majority (all in debt to Eli Broad) supporting it, and the anti-charter minority saying that the district already has many excellent STEM programs which could use extra funding. (If they voted again today, the vote might be a tie, since the president of the board was just charged with multiple felony counts of campaign finance fraud.)

But with Eli, enough is never enough. He enjoys sticking his big thumb into the public’s eye and expecting gratitude.

Let us never forget that he secretly contributed money to defeat a ballot proposition to increase funding for the public schools.

If he can’t control them, why bother?

Peter Greene read a new report about how to fix teacher education. Written by two experienced think tank desk jockeys who worked in the Obama administration, the report pretends to be progressive, but it is in fact reactionary.

The key, say these non-teachers, is to judge the quality of teacher education institutions by the test scores of students taught by their graduates. Just what you would expect from two guys who never taught.

The authors, David Bergeron and Michael Dannenberg, suggest several scenarios in which their plan could be imposed. The easiest and cheapest is just to buy the accrediting agencies and change their rules.

Greene writes:

“But really– what a perfect neo-liberal reformy solution to a problem. If something stands in your way, just buy it, and bend it to your will.

“Enter the Golden Era

“Once the New Reformster Accreditation Board was open for business, reformsters could put their stamp of approval on any number of bogus “Schools of Educaytion.” In fact, the paper notes happily, ESSA opens wide the door for all manner of “alternative providers of teacher preparation” as long as they can have their results validated by a USED-recognized authority, which– hey , we just made one of those a few paragraphs ago!! Yes, there’s some pesky law from 1965, but the Secretary can waive (aka “ignore”) that if she’s a mind to.

“The writers characterize the old system as the fox guarding the henhouse; they would like to replace the old fox with their own brand new reformy charter-loving test-driven fox. They are also fond of the same language used by choicesters to attack the public ed system– the current teacher prep system is a “cartel” that needs to be broken up, because these new guys want to cash in, too, and it’s not fair that they have to play by rules that they don’t like. Let a hundred sad versions of Relay GSE bloom. Let charter operators crank out fake teachers from “fully accreditated” fake teacher factories.

“And most of all, let’s base the entire structure of BS Test scores, one more terrible idea that refuses to die.

“It is the last building block in the grand design for a parallel school system, where schools are staffed by substandard teachers trained in only test prep, and therefor providing a substandard education, cranked out by substandard teacher prep programs set up to prove to a substandard accreditation board that they meet the substandard standards.

“Look, I am one of the last people to defend the current system of teacher prep. My solution is simple– replace every single person in the accrediting agency with a classroom teacher. My solution is certainly not to stage a coup to impose a ridiculous standard by which college programs are judged by second-hand results on a third-rate test.

“In the end, I can’t decide if these guys are cynical, arrogant, greedy, or dumb. I mean, it takes some balls to say, “The whole foundation of the teaching profession is wrong. We should rip it out and replace with our own unverified untested unproven results– by force if necessary.” It takes some serious greed to say, “If we just gutted and upended the system, we could redirect so many public tax dollars to private corporate pockets.” It takes huge cynicism to think either, or both, and just not care about the consequences. At this point, it just takes plain old boneheadedness to think that PARCC and its ilk can be used as a measure of educational success. But then, I’m cranky today. These guys have been around several blocks, have done respectable work in other areas. I’m honestly confused– how do people end up pushing such terrible ideas?

“The only good news I see here is that this is not a plan Betsy DeVos is likely to jump on. It comes from so-called progressives, and it involves more structures and institutions and rules. While I suspect that DeVos sees the same problem (“People have to jump through all these stupid hoops to become a teacher and all these dumb rules to run a teacher prep program”), I suspect her solution is much simpler (“No more rules for anyone! You can call yourself a teacher training program, and you can call yourself a teacher training program, and you can call yourself a teacher training program, and anyone can operate a so-called school and hire anyone they want and we’ll shovel money at all of them!”)

“So call it one more reminder that “progressive” doesn’t equal “friend of public ed” as well as a reminder that there are no limits to the huge badness of some reformster ideas.”

Rachel M. Cohen writes in The American Prospect about the curious efforts of charter schools to prevent their teachers from joining a union.

When it suits their purposes, they insist their employees are private employees of a private corporation, and therefore exempt from unionization.

But the y also, in other jurisdictions, say their employees are public employees of a state actor, and therefore exempt from unionization.

The only constant is their effort to prevent their overworked teachers from forming a union.

What charter teachers can depend on is that their employers will harass them if they display any interest in joining a union.

Gary Rubinstein has followed the progress (and lack thereof) of the celebrated Tennessee Achievement School District. It was the ultimate proving ground of the claim by charteristas that they could “turnaround” the state’s worst schools and vault them into the top 25% in five years.

As Gary reports here, they didn’t.

They have plenty of excuses. And the education press refuses to hold them accountable for their inflated promises and their failure to keep them.

The original architect Chris Barbic (one of the “stars” of the charter industry, having founded the YES PREP chain in Houston) left before the gig was up and went to work for billionaire John Arnold, ex-Enron trader, who devotes his “philanthropic” efforts to two goals: charter schools and eliminating pensions for public employees.

And now, the ASD has changed its goal, having demonstrated that its original goal was out of reach. And its second leader is leaving, having accomplished nothing. She too will go on to a cushy job.

Only the children will be left behind.

Gary reminds us that other states are copying the failed Tennessee model. In “reform,” nothing succeeds like failure.

I am reminded that last year, I had an acerbic exchange with an editor from one of North Carolina’s daily newspapers. I asked on this blog why NC was adopting the Tennessee Achievement School District, right after a team of Vanderbilt researchers found that it was not improving achievement (test scores). I dared to say that the experiment was a failure. The newspaper editor lashed out and demanded to know why I called the TN ASD a failure; it hadn’t achieved its goals “yet,” but that was no reason not to try it in NC. Wonder what he will say now. Give it another decade? Two more decades? Forever?

When I learned that the phony “Families for Excellent Schools” was forced to pay a hefty fine by state officials in Massachusetts, I invited Maurice T. Cunningham to write about it. New Yorkers are familiar with this billionaire-funded group from the time when it made a $6 million television buy to thwart Mayor de Blasio’s plan to establish accountability for charter schools. FES, pretending to be the voice of poor black and brown families, suddenly appeared with bulging pockets to shower millions on TV advertising and politicians, not what one would expect from “families” who live in poverty. As a result of their efforts, charters in New York City got the right to co-locate in public school buildings with no rent ever, and if they preferred a private space, the city was obliged to pay for it. What was certain was that not a one of the billionaires behind FES was planning to send any of their children to charter schools or public schools in New York City.

During the campaign in Massachusetts last fall, Professor Cunningham wrote about the dark money pouring in to influence the Question 2 referendum. Despite the money, opponents of charter expansion lost.

This is what Professor Cunningham wrote:

Families for Excellent Schools Driven Out of Business in Massachusetts

Maurice T. Cunningham

Associate Professor, University of Massachusetts at Boston

Families for Excellent Schools, the hedge funded bully of school privatization, has not only been exposed but driven out of business in Massachusetts.

Last year FES was leading the campaign, through its ballot committee Great Schools Massachusetts, to pass a referendum that would expand the number of possible charter schools in the state. Not only was GSM overwhelmed at the November election by teachers unions, but FES’s wild spending attracted the attention of the Massachusetts Office of Campaign and Political Finance. This past week OCPF released a Disposition Agreement with FES that found that the group had violated Massachusetts campaign finance laws. FES acted as a political committee without registering with OCPF, and channeled over $15 million from donors “without disclosing the contributors, and by providing funds to the GSM Committee in a manner intended to disguise the true source of the contributions.” (OCPF press release here).

The consequences for FES: OCPF levied its largest fine in history, over $426,000, being the total amount of cash on hand for FES and its political arm Families for Excellent Schools-Advocacy. FESA agreed to dissolve its social welfare group status with the Internal Revenue Service. FES Inc. agreed to forego political activities in Massachusetts for four years.

Not only did OCPF release its Disposition Agreement it also required OCPF to divulge the donors it had promised to hide, and their contributions. FES’s list of funders was eye-popping. Boston hedge fund titan Seth Klarman of Baupost LLC was in for $3.3 million. Bain’s Joshua Bekenstein and his wife chipped in with $2.5 million. Jonathon Jacobson of Highfields Capital Management was good for $2 million. Other contributors came from Adage Capital Management, Summit Partners, and Par Capital Management. Alice Walton of the WalMart fortune kicked in $750,000.

Each of those powerful individuals was promised by FES that their identities would be kept secret, hidden behind the Internal Revenue Code rules for 501(c)(4) social welfare organizations. Except this time, it didn’t work. OCPF conducted a thorough investigation and exposed FES for what it is: a dark money political operation.

The Disposition Agreement should be studied across the country and state regulatory agencies pressed to follow its teachings. There is absolutely no reason why citizens should not be informed about who is spending millions to influence their vote. It’s shameful and the dark money train must be derailed if we are not to descend into a plutocracy. OCPF’s action is great news for Massachusetts and great news for democracy.

Peter agreement has noticed a Democratic think tank in D.C. that sounds like an echo chamber for Betsy DeVos. It is called the Progressive Policy Institute, and back in the 1990s, it inspired many of the Clinton administration’s flirtations with privatization.

It’s back, and it sounds like a np mouthpiece for a Betsy Dezvos. Even DFER and other charter-loving Dems have tried to distance themselves from the Trump administration. But not PPI.

Its spokesman on education is David Osborne, and he adores privatization. He is yet another non-educator who wants to reinvent schools. And of course, he loves charters. Like ALEC, like the Walton family, like the whole privatization industry, he loves deregulation without accountability.

Peter writes:

“You may not have heard of the Progressive Policy Institute lately, but they’ll be coming up more often as their Education Honcho releases his new book. PPI is worth paying attention to, if for no other reason than the organization provides Exhibit #1,635 of Why Teachers Can’t Trust Alleged Democrats….

“I have not read the book (and it’s not high on my list), but I am curious where he stands on the charter characteristics of non-transparency, non-accountability, and generating profits for private corporations and individuals. Nor do I see any signs of Osborne grappling of what happens to “undesireable” students in a charter world in which no charter has to take a student they don’t want (a serious issue in New Orleans).

“There’s a whole world of charter mis-information here, coupled with the tone of someone who has no interest in a serious conversation about any of the issues that charters raise. That’s all just another day at the education debates.

“No, what I want you to notice, and remember as this group pops up, is that these are self-labeled progressives, folks with long and strong Democratic ties. The GOP is no friend of public education, but at least they never pretend otherwise. But here’s evidence once again that when it comes to education, some Democrats are completely indistinguishable from the GOP.”

Anita Senkowski is a blogger in northern Michigan who has written numerous posts about a for-profit charter operator who ripped off taxpayers and is now serving a term in jail for his financial crimes. She read Mark Binelli’s piece in the New York Times about charter schools in Detroit and its surroundings and hopes that he will come to Northern Michigan to see how the fraudster mentality permeates the DeVos charter industry throughout the state.

She writes:

Binelli’s fine piece, focused primarily on districts south of Eight Mile Road, the northern border of Detroit made infamous by former Detroit Mayor Coleman Young in his 1973 inaugural address. Telling “rip-off artists and muggers” to “hit Eight Mile Road” and leave Detroit, Young made few friends in suburban Detroit, especially Oakland County.

As they say in Las Vegas, the house always wins.

And although Michigan gambled on charter schools and its children lost, there have been winners.

One, former optometrist Steven Ingersoll, (whose story I’ve beaten like a rented mule for three years), walked away with millions. Although he’s serving a 41-month federal prison term, no Michigan authority (state or local law enforcement) has expressed any interest in prosecuting Ingersoll for his admitted fraudulent conversion of approximately $5.0 million from the Grand Traverse Academy and another roughly $1.4 million from the Bay City Academy.

If Ingersoll had lived in Mississippi and not Michigan, John Grisham would have already written a not-very-fictitious-sounding novel about him.

In its theory of the case, the federal government asserted Ingersoll’s federal tax evasion case demonstrated the truth of the sayings that “money gives power” and “unchecked power corrupts”.

“Steven Ingersoll obtained control over millions of dollars by creating and running the public charter schools known as the Grand Traverse Academy. The power of that money enabled Steven Ingersoll to corrupt himself, his wife Deborah Ingersoll, his brother Gayle Ingersoll, Roy Bradley, Sr., and Tammy Bradley.

As the person who controlled the accounting books and public funds intended for the operation of the Grand Traverse Academy, Steven Ingersoll ignored his obligation to separate his personal finances from the finances of the Grand Traverse Academy.

Instead, Steven Ingersoll treated the tax dollars provided for public education as his personal piggy bank, ultimately diverting approximately $3.5 million from the Grand Traverse Academy to uses other than the operation of the Grand Traverse Academy.

Steven Ingersoll also manipulated the books of entities he controlled, including Smart Schools Management and Smart Schools Incorporated, to hide his diversion of the public money that had been entrusted to him.”

And Ingersoll, on who reported to FCI Duluth on February 2, 2017 to serve a 41 month sentence for his federal tax evasion and conspiracy convictions, filed a “pro se” motion to vacate on January 24, 2017, seeking “post-conviction relief” based on attorney Martin Crandall’s alleged “ineffective assistance of counsel” — an attorney who’d sued him for nonpayment of nearly $362,000 in outstanding legal fees.

Ingersoll’s motion was denied, and he’s sitting in stir until January 22, 2020 — ironic, since he was an optometrist.

Let’s hope Binelli takes a look back here in Michigan…about 250 miles north of Eight Mile Road.

In November 2016, the state of Massachusetts held a referendum about whether to expand the number of charters in the state. Millions of dollars were spent on both sides, but the pro-charter groups spent twice as much as the anti-charter groups (mostly funded by teachers’ unions).

Much of the large pro-charter funding was bundled by a group called Families for Excellebt Schools. The names of many individual donors were not released. That’s called “dark money.” It enables the group to pretend to be worried families, eager to enroll their chilren in charter schools, when they are actually billionaires and millionaires who want to promote privatization. One member of the group is billionaire Alice Walton of Arkansas. Another is the chairman of the state board in Massachusetts, who offered nearly $500,000 to undermine public education in a state where he is in control.

FES pulled the same shenanigans in New York, pumping millions into a campaign to persuade the legislature to shower charters with perks and public space and money. But it didn’t work in the Bay State.

Families for Excellent Schools has been ordered to pay a fine of $426,500 for violating campaign finance laws in the state.

“An advocacy organization that gave more than $15 million to a Massachusetts ballot campaign to lift the cap on charter schools has agreed to pay $426,500 to settle allegations of campaign finance violations.

“The Office of Campaign and Political Finance alleged that Families for Excellent Schools contributed money to the ballot campaign in a way that was designed to hide the identity of its donors. The organization denies any wrongdoing.

“This is the largest settlement ever collected by Massachusetts’ Office of Campaign and Political Finance.

“Massachusetts voters deserve to know the identity of all those who attempt to influence them before Election Day,” said Office of Campaign and Political Finance Director Michael Sullivan in a press release. “Complete and accurate disclosure of campaign activity is the goal of OCPF and the cornerstone of the campaign finance law.”

“Families for Excellent Schools is a New York-based advocacy group, which gave $15.3 million to Great Schools Massachusetts, the ballot committee promoting a question in 2016 that would have lifted the cap on charter schools. The question failed at the polls.”

Indeed, the question failed overwhelmingly at the polls.

Families for Excellent Schools agreed not to engage in any election-related activities in the state for four years.

The fine is Penny ante for a group like FES, but it is satisfying to see them get caught hiding the names of donors.