Archives for category: Privatization

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.

Veteran educator Nancy Bailey knows that public schools will be confronted with the threat of deep Bridget cuts in the wake of the pandemic.

She here presents eight excellent ideas to stave off the pain of budget cuts and save public schools. Betsy DeVos offered her ideas, which are the same-old same-old stale voucher schemes. Privatization only hurts public schools, which enroll the vast majority of American children. Let’s put our money where the kids are.

Bailey explains her eight ideas.

She begins:

1. End charter schools. We can’t afford to fund two different school systems.

2. End vouchers. We already know they are unsuccessful.

3. End high-stakes testing. They waste money and produce no benefits for students.

4. End the Common Core. Ten years after this radical standardization was introduced, its proven to be ineffective.

That’s four of her eight big ideas. Open the link to read about the others.

So sensible.

Christine Langhoff is a retired teachers in Massachusetts who is an activist on behalf of public schools. She warns here about the unfolding plot to impose a state takeover of Boston public schools. Having been decisively rebuffed at the polls by the state’s voters in 2016, the Walton allies on the state board have found another way to disrupt and control the Boston public schools and install Broadies and other willing allies to advance their privatization agenda.

Christine writes:

Massachusetts’ state board of education has been moving inexorably toward a takeover of the Boston’s schools. On March 13, the same day as schools shut down, DESE announced a MOU with Boston’s superintendent. In response, Alain Jehlen, Board Member of Citizens for Public Schools, is taking a deep dive into how and why the state rates city schools so poorly on the Schoolyard News website.

Here’s Part 1:

“Boston has 34 schools (out of about 125) that rank in the bottom 10 percent in the state. BPS as a whole is 14th from the bottom out of 289 districts. Why is it rated so low?

“One major reason is that the rating system was designed in a way that almost automatically puts Boston and other urban centers with large numbers of low-income students and recent immigrants at the bottom.

“Here’s how it works: The state rates schools and districts mostly according to test scores. But there are two ways they could use the scores. State officials picked the one that makes urban areas look worse.”

https://schoolyardnews.com/one-reason-boston-gets-low-ratings-from-the-state-the-system-is-designed-to-give-bad-marks-to-f6c9ee3418d

The current board of education is loaded up with Walton connected folks. No doubt that has some impact on decision making.

Three whistleblowers in the U.S. Department of Education filed complaints that Betsy DeVos overruled internal reviews to award $72 million to the IDEA charter chain.

This is not the way federal grants are supposed to work. Funds are supposed to be awarded based on peer reviews and staff reviews, not awarded as plums by political appointees. This is political interference at the highest level. This award should be revoked.

I have often referred to the $440 million federal Charter Schools Program as DeVos’s private slush fund, and this grant proves that my hunch was right.

Valerie Strauss writes in the Washington Post:

A U.S. congressman is demanding answers from the U.S. Education Department, alleging department employees complained to his office about political interference in the awarding of a multimillion-dollar federal grant to the controversial IDEA charter school network.


Rep. Mark Pocan (D-Wis.) sent a letter to the department Monday asking for details and records related to the awarding of the grant.

In an interview, Pocan said “three whistleblowers” told his office that professional staff evaluating applications for 2020 grants from the federal Charter School Program had rejected IDEA for new funding, deeming the network “high risk” because of how IDEA leaders previously spent federal funds.


But according to these whistleblowers, Pocan said, professional staff was overruled by political appointees who ordered the funding be awarded to IDEA. The identities of the whistleblowers were not revealed to The Post, nor were the names of the political appointees.


The Education Department did not respond to a request for comment.


IDEA, a Texas-based charter school network with nearly 100 campuses in Texas and Louisiana serving nearly 53,000 students, said in a statement:
”Peer reviewers from education and other fields evaluate grant applications independently from Department of Education staff. In three of the last four Charter Schools Program competitions, spanning two administrations and including the most recent round of grants, the independent reviewers who evaluated applications gave IDEA Public Schools the highest scores of any applicant in the country. (In 2017, IDEA received the second-highest score.) All of the outside reviewers’ scores and comments are public on the Department’s website, and we encourage anyone doubting the strength of IDEA’s applications and our 20-year track record with students to read those reviews.”


Earlier this month, the Education Department announced it was awarding millions of dollars in new grants to charter schools, which are publicly funded but privately operated. IDEA was the top recipient, receiving $72 million over five years.

IDEA had previously received more than $200 million in funding over the past decade through the program.



But the network has been dogged by controversy. This month, IDEA chief executive Tom Torkelson resigned after publicly apologizing for “really dumb and unhelpful” plans that included leasing a private jet for millions of dollars and spending hundreds of thousands of dollars on San Antonio Spurs tickets.

The Texas Monitor reported last month that Torkelson had flown on a private jet to Tampa to meet with DeVos to discuss “education philanthropy,” records show. The Monitor reported he was the only passenger on a jet that can hold nine people.


Last November, the Education Department’s inspector general criticized IDEA in an audit of data IDEA included in annual performance reviews it submitted to the federal government, required as part of the grants received from the federal Charter Schools Program.
The inspector general concluded that IDEA Public Schools “did not provide complete and accurate information” for all performance measures on annual performance reports over three years and did not report any information for 84 percent of the performance measures on which it was required to report over two years.

Still, IDEA had certified its annual performance reports were “true, complete and accurate.”
The audit also found IDEA “did not always spend grant funds in accordance with federal cost principles and its approved grant applications.”
IDEA acknowledged some of the findings, took issue with others, and agreed with all the recommendations from the inspector general to improve internal procedures.


That inspector general report, together with the suggestion that political appointees pushed through more grant money, should spark an even deeper inspection of IDEA, Pocan said in an interview.
“There needs to be an investigation,” Pocan said. “This would be completely improper to take a program that has to have inspector general reports and a lot of media attention about bad decisions they’ve made, and then to get a grant that wasn’t approved by the professional staff and instead given for political reasons.”

“In The Public Interest,” a nonpartisan organization that supports a healthy public sector, has identified eleven warning signs that privatizers are targeting your school district.

Read them and be prepared to defend your public schools from privatizers and profiteers!

Here are the first six. Open the link and learn about the other five:

As students, parents, educators, and school districts struggle to adjust to the Covid-19 pandemic, others see the crisis as an opportunity to escalate their efforts to further privatize public education. For years, “education reformers,” private companies that want to profit from public education dollars, and others have worked to undermine public education by privatizing all aspects of it—from charter schools, to contracted out bus services and cafeterias, to private testing companies, to software and hardware providers touting the benefits of virtual/online education.

With the current need for districts to rapidly switch to distance learning, many of these same privatization advocates and corporations are using the crisis and the resulting confusion as an opportunity to greatly expand their privatization agenda by offering to help solve some of the problems that the crisis is creating.

The pandemic is creating a fiscal crisis for state, local, and school district budgets and these same forces are also offering up privatization as the solution to these longer-term economic problems. Consequently, we are seeing a major push now by online (virtual) charter schools to greatly increase their number of enrolled students. We are also seeing a major push by “EdTech” companies (education software providers, online pre-packaged classes and tests, computer hardware, cloud computing companies, and others) to peddle their goods and services. These companies seek to offer their services as a way to radically reshape education and education budgets for the long term by dramatically cutting back on qualified classroom teachers and overhead expenses of brick-and-mortar schools.

What to watch for:

Public education advocates need to be vigilant to ensure that during this crisis no long-term commitments are made that increase the privatization of public education.

Below are eleven warning signs and some follow-up questions to help advocates determine whether and how privateers may be trying to make inroads in your school district.

1. Emergency powers have been requested, given, or exercised by superintendents that circumvent normal oversight rules.

• Have emergency powers been granted to district or state superintendents of education? What, if any, are the limits to those powers? When will the emergency powers end?
• How are school boards informed of decisions being made, contracts being entered into, etc., under those powers? Does the board have the authority to review or overturn those decisions?
• Are other emergency orders being put in place? What do they waive or change?
• Are there efforts to suspend open meetings and public records laws?

2. Procurement rules and processes are being suspended, overruled, or ignored.

• In response to the crisis, has your district, locality, or state suspended normal procurement rules?
• Are procurements being made outside the normal process?
• Are there guarantees ensuring that the district isn’t entering into long-term contracts?
• What, if any, transparency is there in the procurement and contracting process?
• Who is responsible for the contracting process and what monitoring and oversight is
there?

3. Virtual/online charter companies are expanding their outreach and recruitment of students.

• Have online charters increased their advertising and recruitment activity in your area?

4. Charter schools and their advocates are pushing to change or ignore authorization and oversight rules.

• Are charter schools attempting to change or relax authorization, oversight, and renewal guidelines?
• Are charter schools requesting or being granted increased funding or extensions on funding or renewal periods?
• Are existing charter schools seeking to expand enrollment caps?
• Are districts providing additional services or technology to charter schools?
• Are there efforts to suspend or disregard open meetings and public records laws for
charter schools?
• Are there efforts to create long-term distance learning contracts with charters?
• Who is monitoring charter schools for compliance with all legal requirements? Are all
the services being delivered?
• Are charter schools ignoring requests for information?

5. Existing charter schools and new charter schools are pushing for immediate charter expansion.

• Are charter school chains or management organizations seeking expansive contracts to provide larger scale education services or replace schools struggling before the crisis?
• Are charter schools advocating for new or additional facilities, or changes in rules regarding facilities?
• Are homeschool charters aggressively marketing payments to families to be used to pay for educational and enrichment programs or services?

6. Education technology companies (hardware and software companies, online testing and lesson planning companies, etc.) are aggressively soliciting the district offering immediate solutions.

• Are education technology companies approaching the district to provide services during the crisis? Which companies? What services? Will those services be needed after the crisis has passed?
• Are companies that already have contracts with the district being allowed to expand those contracts?
• Are companies offering free introductory contracts that are tied to long term obligations?
inthepublicinterest.org
• Are educational technology companies offering free hardware that requires the district to purchase or lease software or other services?
• All students do not have equal access to the Internet. What—if anything—is being done to ensure equal access?
• Who evaluates education technology software for cost and effectiveness? Are new contracts for education technology being executed? What are the durations and terms, and who is providing oversight?
• Is there a protocol for ensuring that student and educator data is secure? What is the policy for responding in the event of a data breach?

Jeff Bryant has kept tabs on Betsy DeVos, who is quietly turning the pandemic into an opportunity to advance her personal agenda of privatizing public schools. She is not going to let this massive national crisis and tragedy go to waste. She came to her position determined to “advance God’s Kingdom” and what better time to do that than now, as the nation is staggering with sickness and death?

Please open the article to see the many links for documentation and to read it to the end. Follow the money. Apparently “God’s Kingdom” needs as much public money as possible, and Betsy DeVos is shoveling it out the door as fast as she can to her friends in the education industry.

Jeff Bryant writes:

COVID-19 has shuttered public schools across the nation, state governments are threatening to slash education budgets due to the economic collapse caused by the outbreak, and emergency aid provided by the federal government is far short of what is needed, according to a broad coalition of education groups, but the charter school industry may benefit from its unique status to seek public funding from multiple sources and expand these schools into many more communities traumatized by the pandemic and financial fallout.

As school districts reported huge problems with converting classroom learning into online instruction delivered to students’ homes, often due to lack of funding for internet-capable devices and Wi-Fi hotspots, charter school proponents spread the news of how their industry could take advantage of emergency aid.

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Charter operators rolled out new marketing campaigns to lure families to enroll in their schools. And in national and local news outlets, advocates for charters, vouchers, and other forms of “school choice” helped forge a new media narrative about how the shuttering of the nation’s schools was an opportunity for parents and their children to leave public schools.

Teachers in Los Angeles and Oakland urged their districts to stop charter school expansions and co-locations, which they believe worsen the trauma that children in their communities are experiencing due to the virus. But the Trump administration and U.S. Secretary of Education Betsy DeVos have shown no signs of easing up their campaigns to further privatize public schools.

“This is an opportunity,” said DeVos in an interview with right-wing radio talk show host Glenn Beck, “to collectively look very seriously at the fact that K-12 education for too long has been very static and very stuck in one method of delivering and making instruction available.”

A Gift from DeVos

On March 27, one of DeVos’s first reactions to the pandemic was to urge Congress to provide “microgrants” to help “the most disadvantaged students,” an idea that struck knowledgeable education policy observers—including retired teacher Peter Greene and National Education Association president Lily Eskelsen Garcia—as being in sync with her longtime advocacy for school vouchers. Somehow the mass shuttering of the nation’s schools convinced her “that necessity has never been more evident.”

A week and a half later, DeVos unveiled an investment of more than $200 million in grants from the federal government to help 13 charter school management companies expand.

It’s not at all clear the new grants come with new measures to oversee how charters spend the money. If they don’t, that would be a big mistake given a December 2019 report from the Network for Public Education (NPE) that found that since the charter grant program’s inception, approximately $1.17 billion has gone to schools that either never opened or that opened and have since shut down. The failure rate of charter startups funded by the education department’s Charter School Program is 37 percent.

An earlier NPE report, which I coauthored, also found that many charter management organizations that have received federal grants are “beset with problems including conflicts of interest and profiteering.” Some of the organizations receiving this new round of federal funding have these same flaws.

For instance, the largest grant, $72 million over five years, is going to the IDEA charter chain, which in January 2020 was publicly humiliated by reports in the Houston Chronicle for its plan to use $2 million in taxpayer money to buy a luxury private jet. The Chronicle also revealed the company had spent hundreds of thousands of dollars annually on tickets and luxury box seats at San Antonio Spurs NBA games—over $400,000 in the most recent year.

Another recent report, in the Texas Monitor, revealed IDEA executives spent over $800,000 on luxury travel between 2017 and 2019, including private jets and limos. In one of these larks, IDEA CEO Tom Torkelson took a private jet to Tampa to meet with DeVos “to discuss ‘education philanthropy,’” the Texas Monitor reports. Torkelson recently resigned.

Another charter chain benefitting from DeVos’s generosity is Mater Academy, which received the second-largest grant of $57.1 million. Mater Academy is affiliated with for-profit education company Academica.

As NPE executive director Carol Burris explained in the Washington Post, three schools operated by Academica in Florida, including two in the Mater chain, were the subjects of a government investigation that found “related party transactions” between Academica and “a real estate company that leased both buildings and security services to the schools.” The companies were also connected to founders of both the Mater Academies and Academica.

An extensive investigation of Academica’s business practices conducted by privatization watchdog group In the Public Interest in 2016 found in addition to providing management services, Academica also leased facilities to many of its schools and tended to charge significantly higher rents than what non-Academica charters were made to pay.

Each of these charter school operations deserves close scrutiny of their business practices, but DeVos has chosen to reward them with over $129 million in federal funding at a time when public school districts are in crisis and likely face severe budget cuts.

How Charters Double-Dip

When Congress and the Trump administration announced plans in late March to send $13.5 billion in emergency aid to public schools, the charter school industry insisted it deserves its cut of the rescue funds too.

Writing in the pro-charter media outlet The 74, Nina Rees, executive director of the National Alliance for Public Charter Schools (NAPCS), said DeVos and governors should encourage districts to release these funds to schools “without regard to differences in school model,” meaning not to exclude charters.

In her letter telling governors where to apply for the emergency funds, DeVos specified the money was intended to support “schools (including charter schools and non-public schools),” meaning funds could be spent on charter schools and private schools.

Days before, Rees insisted charter schools be regarded as public schools and eligible for emergency aid, her organization also advised charter schools to apply for federal rescue funds for small businesses devastated by the pandemic.

According to Education Week, charter lobbying groups including NAPCS have “urged charter schools… to consider applying for the $349 billion Paycheck Protection Program, a short-term loan program designed to help businesses cover payroll expenses.”

Rees, who previously worked as a deputy assistant for domestic policy to former Vice President Dick Cheney, justified the request by claiming to the Education Week reporter, “The last recession hit charter schools pretty significantly” and that the fallout from COVID-19 might adversely affect “private giving to support their operations.”

But in the same article, NPE’s Carol Burris pointed out that “charter schools have had no drop in the funding stream” as a result of the pandemic, because state funding for both charter schools and school districts has already been set for the current academic year.