Archives for category: Privatization

Shawgi Tell, professor at Nazareth College in New York, describes the multiple ways in which corporate charter chains are cashing in during the pandemic.

He begins:

While private businesses like non-profit and for-profit charter schools have been seizing enormous sums of public money for decades,1 they continue to seize hundreds of millions of public dollars during the “COVID Pandemic”—a move that further undermines the nation’s public education system and economy.

The latest example of this massive transfer of public funds to segregated charter schools involves $200 million set aside a few weeks ago for large corporate charter school chains by billionaire Betsy DeVos, U.S. Secretary of Education. This pay-the-rich scheme is taking place in the context of more brutal cuts to public school budgets around the country.

On top of this, in the current crisis, which is worse than the 2008 economic collapse engineered by Wall Street, charter school advocates are also taking virtue-signaling to new heights, casually and repeatedly lauding themselves as saviors and as “tried-and-true online experts,” even though many have ironically(?) turned away from notoriously poor-performing cyber charter schools in this disruptive transition to inefficient digital “communication” at all levels of education. Most people have simply not turned to online charter schools during this crisis. They recognize that online charter schools are subpar and not the way forward. Even well-funded organizations that support charter schools, like the neoliberal Center for Research on Education and Outcomes (CREDO) at Stanford University, bemoan the persistently abysmal performance of cyber charter schools.

The conceited charter school sector believes, however, that this virtue-signaling will suddenly cause people to forget that charter schools are notorious for all sorts of corruption, fraud, and scandal. While the “COVID Pandemic” has overwhelmed many, people have not spontaneously forgotten the poor track record of cyber charter schools or brick-and-mortar charter schools.

The necessity today is for governments at all levels to cease funneling much-needed public funds to private business like charter schools and to direct these funds to public schools that serve 90% of the nation’s students. Public funds belong to public schools and charter schools are not public schools. There is no such thing as a public charter school, especially given the fact that charter schools are now openly claiming to be small private businesses so as to obtain public Small Business Administration money (from the CARES Act) that regular public schools, precisely because they are actually public, do not have access to.

Read on.

Donald Cohen of the nonpartisan “In the Public Interest” has assembled a brief history of anti-government rhetoric.

He has assembled quotations from the anti-government crowd. It is only 12 pages and a quick, enlightening read.

It is called The Anti-Government Echo Chamber.

Here is the introduction on the ITPI website:

“They play to your fear, government plays to your fear.”

“Will you resist the temptation to get a government handout for your community?”

“Most businesses would tell you that they presently take care of their employees. They don’t need government telling them how to do it.”

“Government is a dangerous thing.”

No, these quotes aren’t from a recent Fox News broadcast about the coronavirus crisis. They’re examples from a decades-long, relentless attack on government by corporations, conservative politicians, and right wing think tanks.

Over the past few months we’ve been collecting anti-government rhetoric from Ronald Reagan to the Cato Institute to the mid-20th-century white supremacist Sen. James Eastland. We’ve dubbed it “The Anti-Government Echo Chamber.”

What stands out is that anti-government rhetoric has gotten clearer and more consistent over time. It’s come from diverse right-wing voices, from white supremacists to the religious right. It’s been weaponized to oppose a wide range of policies and programs, from education to ensuring civil rights. Of course, it’s been selective—focused on the safety net and public services we all rely on but silent about tax cuts, subsidies, and other benefits for corporations.

And it’s been effective—dramatically so. Taxes on corporations and the wealthy have been slashed. Public budgets have been cut. Public goods and services have been privatized, from highways to education. Nearly every state’s tax code is regressive, meaning they collect more taxes from low-income people than high-income people as a share of their income. At the federal level, spending on public health, education, and other nondefense discretionary programs is at a historic low.

Despite what these voices have said, government is the only institution capable of ensuring that things like quality health care, clean water, a good education, well-paid work, and equal voice are available to all. There are just some things that private markets can’t do.

We published “The Anti-Government Echo Chamber” also as a call to action to progressive leaders, thinkers, strategists, organizations, organizers, and activists.

Virtually every policy, program, and issue we focus on relies on using public power to create a fairer, healthier, and safer country and world. Yet, progressives rarely talk about government successes and progress except when under attack. The language we use is often tinged with anti-government attitudes.

Conservatives have long been clear about what they want—less government, a weaker democracy, and more power for corporations, the bigger the better. Progressives have focused on specific issues and campaigns and remained silent on the ideas that unite those issues.

The coronavirus crisis is revealing the dire need for effective, democratic, adequately funded public institutions. We must create our own “Pro-Public Echo Chamber” until our ideas become the new popular conventional wisdom and a governing reality. Are you with us?

The Anti-Government Echo Chamber begins like this:

“The emancipation of belief is the most formidable tasks of reform and the one on which all else depends.”
– John Kenneth Galbraith

“The power of the [corporation] depends on instilling the belief that any public or private action that serves its purposes also serves the purpose of the public at large.”
– John Kenneth Galbraith

“The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.”
– President Ronald Reagan

“The folks who run Koch [Industries] are very clear. They would love to have government just get out of the way and allow companies to compete, whether in their particular sectors or other sectors. They are true believers in small government.”
– Congressional candidate Mike Pompeo when asked if he was influenced by Koch Industries, his largest donor.

“Expansive government undermines the moral character that is necessary to civil society.”
– Cato Institute 2017 Handbook for Policymakers

Anti-government sentiment by corporations and conservative intellectuals isn’t new. In 1914, three years after the Triangle Shirtwaist Company Fire killed 145 women and girls, real estate interests lobbied against new building safety codes.“The experience of the past proves conclusively that the best government is the least possible government, that the unfettered initiative of the individual is the force that makes a country great,” said Laurence McGuire, chairman of the Real Estate Board of New York.

But since the 1960’s (particularly after Barry Goldwater’s presidential campaign), anti-government rhetoric has gotten clearer, more consistent, and has come from diverse right-wing voices, from white supremacists to the religious right. It’s been weaponized to oppose a wide range of policies and programs, from education to ensuring civil rights. The attack on government is often selective—focused on the safety net and public services we all rely upon but silent on tax cuts, subsidies and other benefits for industry.

I think you will want to read it all.

Media Contacts:

Ashley Levett, SPLC, ashley.levett@splcenter.org / 334-296-0084

Sharon Krengel, ELC, skrengel@edlawcenter.org / 973-624-1815, x24

Lindsay Kee, ACLU-TN, communications@aclu-tn.org / 615-320-7142

Christopher Wood, Robbins Geller, cwood@rgrdlaw.com / 615- 244-2203

Judge Strikes Down Tennessee School Voucher Law

NASHVILLE, Tenn. – Public school children in Tennessee won today when Davidson County Chancellor Anne C. Martin struck down the state’s private school voucher law, known as the Education Savings Account (ESA) Pilot Program. Because the law applies only to students in Davidson and Shelby counties, Chancellor Martin ruled that it violates the Home Rule provision of the Tennessee Constitution, which prohibits the General Assembly from passing laws that target specific counties without local approval.

The rulings are a milestone victory for the plaintiffs challenging the voucher law in two separate cases: public school parents and community members in Nashville and Memphis, who sued in McEwen v. Lee, and Davidson and Shelby County governments, in Metropolitan Government of Nashville v. Tennessee Department of Education.

The voucher law was enacted in May 2019 over the strong objections of legislators from both counties. The voucher program was originally intended to begin in the 2021-2022 school year, but Governor Lee accelerated the timeline with plans to issue vouchers starting this fall.

In March, the plaintiffs in McEwen v. Lee filed a lawsuit to challenge the voucher law in Davidson County Chancery Court. The lawsuit argues that the voucher law violates several provisions of the Tennessee Constitution, including the Home Rule provision as well as the Education and Equal Protection provisions and the Appropriation of Public Moneys provision.

When the state began accepting applications for vouchers to be used in fall 2020, the McEwen plaintiffs immediately moved for an injunction to temporarily block the law until the court had the opportunity to rule on its constitutionality.

Davidson and Shelby counties filed a motion for summary judgment in their separate lawsuit challenging the voucher law.

Both cases are before Chancellor Martin in Davidson County Chancery Court. Oral argument on the summary judgment motion was originally scheduled to be heard in late May. However, the McEwen plaintiffs requested that Chancellor Martin hear argument before the state began giving out vouchers for this fall. Accordingly, Chancellor Martin accelerated the schedule for oral argument on all motions in both cases, setting them for late April, and the McEwen plaintiffs secured the state’s agreement that it would not notify voucher applicants until after she issued her decision on the motions.

Chancellor Martin’s decision today, granting the counties’ summary judgment motion, now permanently enjoins the state from implementing the unconstitutional voucher program.

The McEwen plaintiffs are represented by Education Law Center and the Southern Poverty Law Center, which collaborate on the Public Funds Public Schools (PFPS) campaign to ensure public education funds are used exclusively to maintain, support and strengthen public schools. The plaintiffs are also represented by the American Civil Liberties Union of Tennessee and represented pro bono by the law firm Robbins Geller Rudman & Dowd LLP.

Plaintiff Roxanne McEwen, a public school parent in Nashville, said “I am grateful to Chancellor Martin for safeguarding the resources in Metro Nashville Public Schools and Shelby County Schools, and the rights of all public school children in these districts. Our public schools serve every child who walks through their doors. Especially in this time of crisis, our schools could not afford to have more resources drained away from them.”

“Chancellor Martin’s ruling is an enormous victory for Tennessee public school students,” said Chris Wood, a partner at Robbins Geller who argued for the McEwen plaintiffs last week. “This unpopular voucher program was forced on two communities without their consent, and it threatened to drain public resources from already underfunded public schools. Today, the voices of public school parents and community members were heard. The state needs to adequately fund our existing public schools, which educate the vast majority of students in Tennessee, instead of trying to send our taxpayer dollars to unaccountable private schools.”

# # #

The Southern Poverty Law Center, based in Alabama with offices in Florida, Georgia, Louisiana, Mississippi, and Washington, D.C., is a nonprofit civil rights organization dedicated to fighting hate and bigotry, and to seeking justice for the most vulnerable members of society. For more information, visit http://www.splcenter.org/.

Founded in 1973, Education Law Center is a national leader in advancing the rights of public school students to equal educational opportunity under state and federal law through litigation, policy, advocacy and research. For more information, visit http://www.edlawcenter.org/.

The ACLU of Tennessee, the state affiliate of the national American Civil Liberties Union, is a private, non-profit, non-partisan public interest organization dedicated to defending and advancing civil liberties and civil rights through advocacy, coalition-building, litigation, legislative lobbying, community mobilization and public education. For more information, visit http://www.aclu-tn.org/.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex litigation firms representing plaintiffs in securities fraud, antitrust, corporate mergers and acquisitions, consumer and insurance fraud, multi-district litigation, and whistleblower protection cases. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities, antitrust, and consumer class action recoveries in history, recovering tens of billions of dollars for victims of fraud and corporate wrongdoing. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in their fields of practice. Visit http://www.rgrdlaw.com/.

Valerie Jablow, parent activist in the District of Columbia, posts often about the D.C. government and its passion for giving away public property.

In this post, she questions what happened to the playing field of a Duke Ellington High School of the Arts.

Some time in February, Ellington Field–the field that belonged for most of a century by court order to DCPS’s Duke Ellington High School of the Arts–was officially transferred from DCPS to the department of parks and recreation (DPR). Despite many appeals to the DC city council and to the deputy mayor for education (who has oversight of both DPR and DCPS) explicitly asking for the terms of the use agreement before the transfer and assurance that Duke Ellington high school would have first priority use among all users, no one in the public knows what the terms of that transfer really are; what use of the field the high school (or any DCPS school) is allowed; and whether Duke Ellington will be able to provide credited programming there ever again.

The Ellington transfer happened because Mayor Bowser gave Maret, a private school, exclusive use of a nearby public field, Jelleff. In the wake of public protest against the Jelleff deal, Bowser then transferred Ellington Field from Duke, to make it a public recreation center kinda sorta standing in for Jelleff.

So it was that despite opposition of parents, neighbors, and many others (see here and here for a few), this unprecedented transfer of an asset of a DCPS school, actively used by students, for the immediate and lasting benefit of those not necessarily affiliated with DCPS happened without much fanfare.

A short time later, on the afternoon of March 3, the private Maret school (yes, that same one) was photographed using Ellington Field. On its website, Maret had posted a spring schedule of activities it was hosting at Ellington Field.

All of this was quite some news to Duke Ellington HS staff, who apparently had no idea of Maret’s activities at the field that day beforehand–much less that the field had been, by that point, officially transferred from Duke’s control.

Dr. Theresa Trevino, a public school parent in Austin, wrote to Texas Commissioner of Education Mike Morath to complain about the insertion of a BASIS charter school into a community where the school is neither wanted nor needed. BASIS is owned by a couple who pay themselves $10 million a year. Their charter schools require students to pass multiple AP exams, which effectively winnows out low-performing students, who no longer bother to apply. Most of their charters are in Arizona, where they are celebrated for their high scores. Their high scores are achieved by excluding students who might get low scores.

See the letters here and here.

 

As the old saying goes, better to steal a million dollars than to steal a loaf of bread. The former is smart thinking, the latter is a crime.

In Livermore, California, the leaders of a charter chain were charged with securities fraud. But they got off without any criminal charges or jail time.

When you read this story, you realize what clever guys they were to figure out such a complex scheme. You have to be an accountant to follow the money.

The U.S. Securities and Exchange Commission has charged former CEO of the Tri-Valley Learning Corporation, Bill Batchelor, with allegedly misleading investors when acquiring a $25 million bond for Livermore charter schools.

Batchelor and John Zukoski, the former director of finance for the schools, were charged with a violation of the antifraud provision of the Securities Act of 1933. They were accused of helping prepare and sign a bond-offering document of $25.54 million to fund the purchase and renovation of a Livermore building to house two schools in May 2015. One was a charter school run by the Tri-Valley Learning Corporation (TVLC) and the other was a private school, which Batchelor also managed.

But according to the complaint by the Securities and Exchange Commission filed in the U.S. District Court of Northern California and made public this week, both men were aware that TVLC had “serious cash flow problems” that would negatively affect the corporation’s ability to make payments on the bonds. The commission also alleges that TVLC was delinquent on payments owed to vendors, had other debt from a private loan that was overdue by a year and had drawn a bank line of credit to its limit in a previous bond.

But, the bond document failed to disclose that TVLC was in “serious financial distress,” and both Batchelor and Zukoski signed documents stating the material had no misrepresentations or omissions.

Without admitting any wrongdoing, Batchelor and Zukoski agreed to not participate in any future municipal debt offerings. Batchelor agreed to pay a $20,000 penalty, and Zukoski a $15,000 penalty. Both settlements are subject to a court approval, according to the Securities and Exchange Commission.

TVLC and California Preparatory Academy, the private high school school, went before the Alameda County Board of Supervisors seeking approval for a $30 million municipal bond to finance the purchase of a new high school building at 3090 Independence Drive in May 2015.

The bond was approved, and the Livermore Valley Charter Prep high school and the private school ended up sharing the same space on Independence Drive in Livermore.

Gary Rubinstein saw an article in Rupert Murdoch’s New York Post claiming that 100% of the 98 students in the graduating class of Success Academy’s high school had been accepted into college.

Based on Success Academy’s long history of high attrition, he knew this claim was likely false.

So he checked and his hunch was right.

He asked:

Is 98 really all the students in the class of 2020?

The answer, of course is, ‘no.’ What the actual number is depends on how you define the class of 2020.

If you go back to a New York Post editorial from just six months ago, it begins with the sentence “Seniors at the Success Academy HS of the Liberal Arts just got their SAT scores — and all 114 did great, with an average score of 1268, 200 points above the national average.” So six months ago there were 114 seniors, which is 16 more than the 98 that are now called the ‘entire’ senior class. For Success Academy to lose roughly one-seventh of the students who were in the senior class just six months ago is stunning. These 16 students had been at the school since at least 3rd grade. Where did those 16 students go?

But if you look further back to the state data, you will find that the class of 2020 had 146 eleventh graders for the 2018-2019 school year. This means that they lost about 1/3 of the class of 2020 between then and now….

If you go back two more years to see where the class of 2020 was when they were in 9th grade you find that there were 191 students in the cohort back then. Also notice that when they were in 9th grade the boy/girl split of the 191 was about 50%/50% while when they were in 11th grade the boy/girl split of the 146 was 44%/56% in favor of the girls. We will have to wait until the official data comes out next year to see what the split was for the ‘entire’ 98 who graduated.

Rubinstein looks at the numbers all the way back to kindergarten and finds that only 28% of those who started Eva Moskowitz’s celebrated Success Academy made it to high school graduation. Way different than 100%.

Another great “success” for skimming, exclusion, and attrition.

Another landmark in the history of charter hype.

Mercedes Schneider reports that Jeb Bush has staked a claim on Coronavirus relief dollars to benefit private schools.

When it comes to supporting voucher schools, including those that openly engage in discrimination, no dollar will be left behind.

In this post, Tom Ultican takes a close look at the takeover and privatization of the Indianapolis school district, funded by billionaires and managed by a well-funded group called The Mind Trust (which, of course, claims to be deeply concerned about “civil rights,” while stripping parents of color of their right to elect a school board that represents them). By Ultican’s reckoning, nearly 64% of the students in Indianapolis now attend privately managed schools.

He writes:

With the introduction of Innovation schools in 2015, Indianapolis Public Schools quickly became the second most privatized taxpayer supported schools system in America. It has zoomed past Detroit and Washington DC in the privatization sweepstakes to only trail the poster child for disaster capitalism, New Orleans. The right wing billionaire funded organization, The Mind Trust, has played a major role in this outcome.

He provides a handy list of the major funders of this betrayal of the public trust. Leading the charge is the Lilly Endowment, with a donation of $22.7 million, followed by the City Fund (Reed Hastings and John Arnold) at $18 million. And there are other familiar names, well known in the disruption industry.

Ultican traces the history of the disruption/privatization industry in Indianapolis and finds that its origins can be traced to the far-right extremists of the American Legislative Exchange Council (ALEC) and the Koch brothers. You will not be surprised to learn that Teach for America and TNTP (the organization founded by Michelle Rhee) are integral to the privatization of Indianapolis’s schools. And Relay “Graduate School of Education” (the one with no real faculty or campuses or professors or researchers or library) is also in the mix.

Ultican reviews the sorry situation in Indianapolis, where disrupters have pulled the wool over the eyes of the public and the media with their dazzling sums of money, and he speculates about why billionaires are so devoted to undermining public schools and the teaching profession:

Why are billionaires spending so much to undermine professionalism in public education? It is probably not altruism. More likely, they want to reduce the biggest cost associated with education; teacher’s salaries. In the antebellum south, plantation owners preached anti-tax ideology because they owned the most and paid the most. Today’s billionaires aren’t much different. Most of them won’t put their children in public schools and really don’t value high quality public education. It seems the big motivation is to reduce tax burdens and simultaneously create new education industries.

Gary Rubinstein reports that KIPP has taken advantage of the coronavirus shutdown of schools to close two of its charters in the ill-fated “Achievement School District” in Tennessee. Once hailed as a model for other states to copy, the ASD has been a flop.

Rubinstein has followed the ASD from its early days, so filled with promise and boasting, to its collapse.

The Tennessee Achievement School District, or ASD, is the Edsel of school reform. Created with a Race To The Top Grant and developed by TFA alum Kevin Huffman, who was state education commissioner at the time, and TFA alum Chris Barbic, the first ASD superintendent, the ASD completely failed in it’s mission to ‘catapult’ schools from the bottom 5% into the top 25% in five years. It is now eight years into the experiment and hardly any of the 30 ASD schools even made it out of the bottom 5%. Not to worry, both Huffman and Barbic resigned and are doing very well with their new project called The City Fund.

Three of the 30 ASD schools are run by KIPP. Five days ago I read in Chalkbeat TN that two of those KIPP schools are shutting down at the end of this school year. On the KIPP Memphis website they explain to the families “While the community welcomed our network with open arms, we’ve been unable to fulfill our academic promise to our students, teachers and families at KIPP Memphis Preparatory Elementary and KIPP Memphis Preparatory Middle. We understand that these closures will have significant implications on our families. However, we strongly believe this decision is in the best interest of our entire KIPP Memphis community and is a step in the right direction to improve our organization’s ability to build a stronger network of schools.”

Tennessee is where the value-added and growth metrics were developed and these two schools ranked at the bottom of the state. Out of a 4 point scale, one of the schools got a 1 and the other got a 0.1 in growth.

Incidentally, KIPP currently has 13 schools in Tennessee. Of those 13 schools, only 11 have growth scores for 2018-2019, five of those (including the two that are now closing) had growth scores between 0 and 1 and two had growth scores between 1 and 2. So of the 11 schools with this rating, 7 had below to very below average ‘growth.’ Reformers are going to have to make up their minds: Is KIPP a fraud or are growth scores a fraud — they can’t have it both ways.

In other words, Kippsters, we are outta here! Sorry, kids, we just couldn’t help you!

But with tens of millions of federal dollars awarded by Betsy DeVos, there may soon be another KIPP, opening near you.