Archives for category: Privatization

You may recall the Livermore Charter Schools in Livermore, California. In August, some 500 students fled the charters and returned to the public schools in the district.

Now the company that runs the charter schools has filed for Chapter 11 protection in bankruptcy proceedings. This enables them to default on their bonds and save money while they reorganize financially.

The two Livermore charters recently had seen a mass exodus of students to the local school district. On Nov. 14, the Livermore Valley Joint Unified School District plans on opening a satellite elementary school for more than 300 students coming from the charter school. In August, about 400 students from both the K-8 charter and high school left the charter schools for district schools.

A TVLC spokesman at the time denied the amount of students, and claimed that the district was inflating the numbers.

TVLC interim CEO Lynn Lysko said in a statement to parents on Tuesday that filing for bankruptcy was the first step in debt reorganization for the company.

Lysko said TVLC will continue to operate while “an agreement to reorganize their debit is negotiated with creditors and approved by the Federal Court.”

The company will have 120 days to propose a plan of debt reorganization, she said.

“TVLC’s action today is the next step in the organization’s work to clean up its fiscal house and directly address the concerns of the districts,” Lysko said.

The Bond Buyer reported (behind a paywall):

In a letter posted to the company’s website, interim chief executive officer Lynn Lysko explained that she inherited a multi-million dollar deficit when she took the interim CEO job six months ago and that the school has already made drastic cutbacks including a 70% management staff reduction.

Bondholders are the ones that stand to take a hit in the reorganization, because the school has already settled up with nearly all other creditors including the state pension plan.

The company has about $42 million of outstanding bond debt issued in 2012 and 2015 through the California School Finance Authority, according to financial documents filed on the Municipal Securities Rulemaking Board’s EMMA website, and it is that debt that the company hopes to reorganize.

“The vast majority of TVLC’s debt relates to the 2012 bonds and a 2015 lease agreement for school site renovation that were incurred under previous management,” Lysko wrote. “The present restructuring will allow TVLC to reorganize that debt in a responsible manner.”

Charters are a risky investment.

Investigative reporter Bill Raden of Capitol & Main exposes the political machinations of the billionaire-funded charter industry, which wants more kids, more schools, more market share. Enough is never enough.

Expenditures by charter school lobbying groups was near $24 million, pumped into 35 legislative races. The charter industry wants to buy influence to protect its market share.

Raden writes:

California’s “school choice” movement has always benefited from generous subsidies by a narrow spectrum of big-spending entrepreneurs, many of whom are billionaires. Their wealth has helped give the state the highest number of charter schools in the U.S., even as their election largess has left it with the nation’s most expensive school board elections.

Capital & Main’s analysis of the latest campaign-finance records for the five largest charter school IECs reveals that those same personal fortunes are at the center of the charters’ apparent attempt to buy some Sacramento political insurance against a growing resistance among both lawmakers and the public to the industry’s unbridled expansion in the state.
The amount spent by charter IECs represents about $40 for each of California’s 581,100 charter school students, and a 300 percent jump from 2014 charter election spending — about 570 percent over 2012.

Most of the charters’ IE spending (88 percent) was directed by three committees that served as the 501(c)(4) political arms of industry lobbyists California Charter School Association (CCSA) and EdVoice, the charter school advocacy nonprofit founded by Netflix CEO Reed Hastings: CCSA’s California Charter Schools Association Advocates IE Committee, and the Parent Teacher Alliance (sponsored by the CCSA’s IEC); and the EdVoice Independent Expenditure Committee. (Neither EdVoice nor CCSA responded to requests to comment for this article.)

The remainder was distributed by the Govern for California Action Committee, a PAC controlled by anti-public-pension gadfly and neoliberal Democrat David Crane; and by Parents and Teachers for Student Success – StudentsFirst, the IEC of the national pro-charter group founded by Michelle Rhee.

“They’re investing heavily in maintaining a deregulated environment,” said United Teachers Los Angeles Secretary Daniel Barnhart before the election. “This really isn’t about kids. In their own words, they say it’s about market share.”
He may be right. Though the teachers union spent nearly $33 million on the election, the bulk of that (around $20 million) went to Proposition 55, the education-funding measure that aimed to benefit all California classrooms — both charter and public school students. The charter IECs spent solely on pro-charter legislative and school board candidates.

The unions spent money to support education, both for public schools and charter schools. The charter industry spent only to protect its future prospects for opening more charters and draining more resources from public schools.

Governor Jerry Brown is the ultimate protector of the charter industry. He vetoed a bill to block the educationally disastrous for-profit online charter industry. And he vetoed other bills to rein in charter abuses.

The industry may have become more aggressive this year because the public is growing wary of its promises, its scandals, and its propaganda. The ACLU issued a blistering report about charters in California, and the NAACP call for a moratorium on charters was a body blow to billionaires who think they are in the forefront of the civil rights movement. They are not.

This greedy, self-absorbed industry has overplayed its hand. The public is catching on. The billionaires will have to spend more to buy more legislative seats to stave off a public uprising against them.

Helen Ladd, Professor of Public Policy and Economics at Duke University, and her husband Edward Fiske, former education editor of the New York Times, have written a comprehensive review of England’s radical experiment in school autonomy. The United Kingdom has been thrashing around in search of a managerial solution to school problems. It introduced a national curriculum for Schools in England, Wales, Northern Ireland in 1988, defining what every student should know in every grade, soon followed by national tests. (Wales soon delinked from the national curriculum.) Dissatisfied by the results, England is now embarking rapidly on radical decentralization of its schools.

What began as a limited program under a Labor government seeking “third way” reforms to encourage wealthy investors to take charge of some secondary schools has mushroomed under a Conservative government into a full-blown effort to devolve governmental responsibility for most of the nation’s state-run schools.

In their study released by the National Center for the Study of Privatization in Education at Teachers College, Ladd and Fiske assess the prospects and downsides of this approach.

“While the growth of charter schools from two in Minnesota in 1992 to nearly 7,000 across the country today has been stunning, this transformation of the educational landscape in the United States pales in comparison to what has happened in nearly half the time in England.

“Authorized by legislation in 2000 and officially launched in 2002, academies are England’s answer to charter schools. They are former state schools funded by the central government and granted significant operational autonomy. There are now 5,302 academies. Free schools, introduced in 2010, are academies by another name, created by teachers, charities, parents, or religious groups. There are now 304 free schools. The former Conservative prime minister David Cameron and his education secretary, Michael Gove, pledged in March 2016 to make all of England’s 20,000 government-funded schools into academies or free schools to give parents more choice and school administrators more freedom. Their target date for this complete transformation was 2022. Cameron’s successor, Theresa May, and her education secretary, Justine Greening, have so far stood behind this pledge.

“England’s academies and free schools stand out for not only their rapid growth but also their substantial autonomy. While oversubscribed charter schools in the United States must employ lotteries for admission, academies and free schools have control over whom they admit. The result, according to an analysis summarized by The Guardian, has been significant segregation of students by class as well as academic achievement.

“In “England Confronts the Limits of School Autonomy,” Helen F. Ladd and Edward B. Fiske provide a detailed analysis of the evolution of school choice in England and address the obstacles in the way of full implementation of Conservative Party ambitions as well as its likely drawbacks. Ladd, a professor of economics and public policy at Duke University, and Fiske, a former education editor at The New York Times, ground their working paper in interviews conducted last spring in London with 24 government officials, school leaders, and researchers; and in numerous government reports and academic studies. The result is a rich depiction of dramatic change and a cautionary statement about the impact of full school independence on community input and student interests.”

EduShyster (aka Jennifer Berkshire, a resident of Massachusetts) explains here how a coalition of parents, teachers, students, and civil rights activists defeated Question 2.

Question 2 was a measure on the ballot to expand the number of charter schools in the state by 12 every year, indefinitely. Opponents of the measure said it would drain money from the existing public schools, which enroll 96% of the children in the state. Advocates said it would not. Advocates claimed that they were fighting for opportunity for poor kids to escape failing public schools. Opponents didn’t buy it.

Support for Question 2 came mostly from out-of-state people of great wealth. These people, such as the Waltons and Michael Bloomberg, put up at least $26 million to advocate for more charters. I thought the charter advocates had put up $22 million, but Jonathan Pelto reported yesterday that they had actually spent $26 million. The opposition raised about $12 million, mostly from teachers’ unions and individual small contributions by teachers and parents.

For a billionaire to drop $2 million into a ballot issue in Massachusetts or anywhere else would be akin to one of us sending a dollar to the March of Dimes. They won’t miss it. At some point, however, if they keep losing, they might get bored and find a different hobby.

The election was a battle royal over the future of public education in Massachusetts, and large numbers of people mobilized to save their public schools. Support among black voters was the same as among white voters.

Question 2 was defeated by a vote of 62% to 38%. It was a knock-out punch for the billionaires and the many financiers whose names were hidden from public view because of arcane campaign finance laws that enable “dark money” to be spent without identifying its source.

Berkshire writes:

I could give you a long list of reasons why Question 2 went down in flames. It was a complicated policy question that should never have made it onto the ballot. Yes on 2, despite outspending the ‘no’ camp 2-1 couldn’t find a message that worked, and was never able to counter the single argument that most resonated with voters against charter schools: they take money away from public schools and the kids who attend them. #NoOn2 also tapped into genuinely viral energy. The coalition extended well beyond the teachers unions that funded it, growing to include members of all kinds of unions, as well as social justice and civil rights groups, who fanned out across the state every weekend. By election day, the sprawling network of mostly volunteer canvassers had made contact with more than 1.5 million voters.

Question 2 had not only unprecedented funding, it had the support of the Governor and the state’s Secretary of Education, James Peyser, who is a longtime advocate for charters and a member of the board of Families for Excellent Schools, the same organization that bundled money in New York and elsewhere to push for charters.

Berkshire writes that when people who had no particular interest in charters or public schools began to see who was behind Question 2, she realized that Question 2 was in big trouble:

Do you know why hating on the Yankees is such a popular pastime in Massachusetts? Because they’re regarded as rich, entitled assholes from New York. Which is why the decision to rely so heavily on well, rich, entitled assholes from New York to fund the Yes on 2 campaign puzzles one so. By the final tally before the election, Families for Excellent Schools, reduced to serving as a conduit for the offerings of rich Wall Street-ers, had gifted more than $17 million to the cause. Former Mayor Michael Bloomberg, meanwhile, kicked in an additional $250,000 on top of the $240,000 he contributed back in August. To average voters, unfamiliar with the reform trope of the billionaire changemaker, the outsized role being played by rich New Yorkers was utterly incomprehensible. It’s not enough to field the richest baseball team money can buy, now they want our schools too?

The Yes on 2 team insisted that the public schools would not lose any money if there were more charters, but school committees called out their lie:

By October it was clear that the Question 2 ship was beginning to list. The original claim, debuted in a massive ad buy during the Olympics, that expanding charter schools would actually increase funding for public education, had failed to resonate with voters, and so it was off to the next argument. It turned out that charter schools didn’t *drain* or *siphon* money away from district schools as team #NoOn2 kept insisting—and here was a press release about a study to prove it. But once again, Question 2’s proponents, including editorial page editors at the Boston Globe, which ran a prominent *no draining, no siphoning* editorial, ran into the buzzsaw of a whole bunch of people all over the state who actually knew stuff.

Those school committees, which just would not stop passing resolutions against the ballot question, could tell you exactly how much money their city or town was spending on charter schools. The Mayor of Northampton, which is about as far from Boston as you can get, pointed out that his town spends more to send kids to the specialized charter schools favored by affluent parents—a subspecies never mentioned during the campaign—than on an entire elementary school. Meanwhile, cities that are already home to the largest number of charters and would be most affected by the passage of Question 2, began tallying how much charters were already costing them. Lowell, for example, has seen a drastic spike in its charter school bill and now spends more than $16 million on a parallel school system, money that’s being diverted away from *extras,* like paving the roads in Mill City. The charter waitlist in Lowell, by the way, is dwarfed by the number of kids waiting to get into district schools.

The privatization movement lost in both Massachusetts and Georgia, where Governor Deal wanted to change the state constitution to allow the state to take over low-performing schools and give them to charter organizations. The lesson is that it is cheaper and easier to make campaign contributions to elect pro-charter candidates to state boards and state legislatures than to take a risk on a popular vote. In the case of Georgia, Governor Deal could not eliminate local control without changing the state constitution. And the voters said no, by a vote of 60-40.

Read the article. The defeat of Question 2 proves that big money can be beaten when citizens are informed, organized, and prepared to defend their public schools against privatization.

Please read Mercedes Schneider’s recap of the Georgia vote on an “Opportunity School District,” which was defeated by voters.

See who was funding this initiative in addition to the Walton family, the royal family of school privatization.

This came in my email this morning:

For a short while in Boston last night, we were ecstatic. We beat the privatizers on Question 2, and we beat them across the state, with every demographic – except for the whitest, wealthiest towns. As Barbara Madeloni said from the stage at campaign headquarters, “We beat their money with our democracy.”

Our coalition victory against the privatizers was hard-earned and sweet. Our brave and beautiful young people were inspirational. Barbara Madeloni was electrifying. We were the righteous students, parents, and union members.

And then, as the national results started coming in and it became clear that Clinton was in trouble, DFER was spotted in the back of the hotel ballroom. As was Marty Walz, former state legislator-turned-paid-shill for the charter industry.

Some of us – those who’d been door-knocking, who had made calls, created charts, sent tweets, educated our neighbors, debated on stage – became angry. The Yes on 2 campaign, funded by so-called Democrats with zero history of being on the side of working people and the disenfranchised, had forced us to focus on a state measure, for months and months and months, at the exclusion of the presidential campaign. Not a single one of my comrades working themselves to exhaustion – unpaid – to defeat the ballot measure was also volunteering for Hilary. We couldn’t be in two places at once, and we rightly felt the urgency of defeating Question 2. We were also keenly aware that our colleagues in other parts of the country were counting on us to stop the charter tide in Massachusetts.

DFER and Marty Walz heard from us loud and clear last night. We let them know that their support for an expensive, divisive, diversionary campaign will not be forgotten.

Question 2 and the charlatans behind it went down in flames last night. Our bright spot on this dismal morning.

Be sure to watch this excerpt from Backpack Full of Cash, narrated by Matt Damon.

It is a powerful presentation about the corporate reform movement and the damage it has done in one of America’s greatest cities: Philadelphia, where public schools starve while charter schools are awash in cash.

All the Presidential polls were wrong. Clinton appeared to be headed for a big victory until FBI Director James Comey informed Congress that he had discovered a new trove of emails. He decided there was no problem on the Sunday before the election. I can’t help but think that she was never able to revive the momentum after Comey’s intervention. And so we have a President-elect who has never held public office, has no governmental experience, has made statements that are racist, misogynist, andxenophobic. His party will control Congress. He will select at least one and possibly two or three Supreme Court justices.

On the subject of education, he has shown little interest. He held one press conference at a for-profit charter school in Ohio and promised $20 billion in federal funds for charters and vouchers, transferred from existing programs. He has shown no interest in public education.

But there is a piece of good news in the midst of a dark night for public education.

Voters in Massachusetts overwhelmingly defeated Question 2, by a margin of about 62%-38%. Question 2 would have permitted the addition of 12 charter schools every year into the indefinite future.

A vibrant coalition of parents, educators, and students withstood a barrage of dark money and won. They organized, mobilized, knocked on doors, rallied, and they won. More than 200 school committees passed resolutions against Question 2. None supported it.

The bottom line that unified opponents of the measure was that charters would drain funding from the public schools.

Proponents spent at least $22 million, most of it from out of state donors. Big givers were billionaires and hedge fund managers.

This was the first contest over charter schools in which the key issues became public: the billionaire funding from out of state; the deceptive advertising that flooded the airwaves; the opponents’ recognition that the charter movement was an assault on public schools, an effort to privatize them.

On a sad night for the nation, it is heartening to see that the people defended their public schools…and won.

Jersey Jazzman, aka Mark Weber, updated his commentary on Question 2 after noting a tweet by David Leonhardt about his original post. Leonhardt said that JJ’s analysis was “based on a falsehood.” Leonhardt said the study in question compared lottery winners to lottery losers. JJ said that you can’t generate from a select sample to the entire population of Boston public school students.

Angie Sullivan, Nevada teacher, reports on the bizarre actions of Andre Agassi, one-time tennis star and high school dropout. His flagship charter school that bears his name is on the state’s list of persistently low-performing schools. It is also known for high rates of teacher and principal turnover. The state may give Agassi’s charter to another charter operator. But Agassi and his business partner Bobby Turner have raised nearly $300 million to build charter schools around the country.

Sullivan writes:


Turner-Agassi Charter School Facilities Fund II, L.P. raised $296,294,416 on 2016-06-16.

http://www.whosraisingmoney.com/turner-agassi-charter-school-facilities-fund-ii-l-p

Agassi has become a very very wealthy man selling his “charter doctrine”.

Unfortunately, his own flagship charter school shows charters are the ultimate tax payer scam.

The worst schools in the state of Nevada are charters.

https://drive.google.com/file/d/0B7bJdQH4mFmEVktMRWhDWFY0Mm8/view

In particular, Agassi Preparatory is not graduating, not performing, not achieving.

Agassi has open the door financially for other Vegas charters which are also on the lowest performing list.

He preaches charter doctrine all over he United States selling real estate and profiteering.

This isn’t really about kids. This is about cold hard cash.

Now Agassi charter may be taken over by another charter.

http://www.lasvegasnow.com/news/possible-changes-ahead-for-agassi-prep-academy

The tax payer needs to be asking some serious questions about who is making money from these charter deals.

The tax payer needs to demand some accountability and transparency from Nevada’s charters.

This is some serious fraud and waste.

Someone needs to be accountable for this fiasco.

Maybe the Charter Authority needs to answer some questions.

Maybe the Nevada State Board of Education.

Maybe the Nevada Department of Education.

Who knew all these charters were failing and either covered it up or did nothing about it? It looks like it’s been going on for at least a decade too from the data I’ve been collecting.

Not good.

Dirty dirty dirty.