Archives for category: Scandals

Thank goodness for independent media! Oklahoma Watch published an investigative report that detailed a secret slush fund that supplements the salary of the state Secretary of Education.

(This story was produced in partnership with the Oklahoma nonprofit newsroom The Frontier.)

Gov. Kevin Stitt vetoed legislation that would have required cabinet members to file public reports to disclose their finances.

If Stitt had signed the bill last month, Oklahomans would learn that Secretary of Education Ryan Walters makes at least $120,000 a year as executive director of a nonprofit organization that keeps its donors secret. Walters is also paid about $40,000 a year by the state, according to state payroll data.

The nonprofit, Every Kid Counts Oklahoma, has refused to disclose its largest donors.

But a joint investigation by The Frontier and Oklahoma Watch has found that much of the organization’s funds come from national school privatization and charter school expansion advocates, including the Walton Family Foundation and an education group founded by billionaire industrialist Charles Koch.

As Secretary of Education, Walters serves as Stitt’s top advisor on public education policy and is the governor’s liaison for dozens of state boards and programs.

Walters’ outside employment with a nonprofit funded by advocacy groups could be a conflict of interest, said Delaney Marsco, senior attorney for ethics at the Campaign Legal Center, a nonprofit group that focuses on government transparency and accountability.

“If you are responsible for making decisions in a certain area of the government and you are being paid by an outside organization that has an interest in that, that absolutely can be a conflict of interest,” Marsco said. “If you are a public servant, your duty is to the public, and anything that kind of calls that into question, even raises the appearance of a conflict of interest, is a problem.”

Under Walters’ leadership, Every Kid Counts Oklahoma was the public face of Stitt’s program that distributed $1,500 grants to families in 2020 funded with $8 million in federal coronavirus relief money. The money was intended to buy tutoring and educational supplies. But a lack of safeguards allowed parents to use some of the funds to buy TVs, gaming consoles and home appliances, an investigation by Oklahoma Watch and The Frontier found. Emails and other recordsshow that Walters helped secure the no-bid contract with a Florida company to distribute the money. The U.S. Department of Education’s Office of Inspector General has opened an audit into how the state used those funds.

Walters, who declined multiple interview requests, is now running for state superintendent, an elected position overseeing the state Department of Education and a budget of over $3 billion. Unlike in federal elections, candidates for state office in Oklahoma are not required to fill out financial disclosures until after they are elected.

Please open the link and read on.

Historian Heather Cox Richardson wrote a fascinating column about Steve Schmidt’s recent revelations about important political figures. Like the good historian she is, she connects the dots.

At home, a big story broke over the weekend, reminding us that the ties of the Republican Party to Russians and the effect of those ties on Ukraine reach back not just to former president Trump, but at least to the 2008 presidential campaign of Arizona senator John McCain.

Late Saturday night, political strategist Steve Schmidt, who worked on a number of Republican political campaigns including McCain’s when he ran for president in 2008, began to spill what he knows about that 2008 campaign. Initially, this accounting took the form of Twitter threads, but on Sunday, Schmidt put the highlights into a post on a Substack publication called The Warning. The post’s title distinguished the author from those journalists and members of the Trump administration who held back key information about the dangerous behavior in Trump’s White House in order to include it in their books. The post was titled: “No Books. No Money. Just the Truth.”

Schmidt left the Republican Party in 2018, tweeting that by then it was “fully the party of Trump. It is corrupt, indecent and immoral. With the exception of a few governors…it is filled with feckless cowards who disgrace and dishonor the legacies of the party’s greatest leaders…. Today the GOP has become a danger to our democracy and our values.” Schmidt helped to start The Lincoln Project, designed to sink Trump Republicans through attack ads and fundraising, in late 2019.

The apparent trigger for Schmidt’s accounting was goading from McCain’s daughter Meghan McCain, a sometime media personality who, after years of slighting Schmidt, recently called him a pedophile, which seems to have been a reference to the fact that a colleague with whom Schmidt started The Lincoln Project was accused of online sexual harassment of men and boys. Schmidt resigned over the scandal.

Schmidt was fiercely loyal to Senator McCain and had stayed silent for years over accusations that he was the person who had chosen then–Alaska governor Sarah Palin as McCain’s vice presidential candidate, lending legitimacy to her brand of uninformed fire-breathing radicalism, and about his knowledge of McCain’s alleged affair with a lobbyist.

In his tweetstorm, Schmidt set the record straight, attributing the choice of Palin to McCain’s campaign director and McCain himself, and acknowledging that the New York Times had been correct in the reporting of McCain’s relationship with the lobbyist, despite the campaign’s angry denial.

More, though, Schmidt’s point was to warn Americans that the mythmaking that turns ordinary people into political heroes makes us unwilling to face reality about their behavior and, crucially, makes the media unwilling to tell us the truth about it. As journalist Sarah Jones wrote in PoliticusUSA, Schmidt’s “broader point is how we, as Americans, don’t like to be told the truth and how our media so loves mythology that they work to deliver lies to us instead of holding the powerful accountable.”

Schmidt’s biggest reminder, though, was that the director of the 2008 McCain campaign was Richard (Rick) Davis, a founding partner of Davis Manafort, the political consulting firm formed in 1996. By 2003, the men were representing pro-Russia Ukrainian oligarch Viktor Yanukovych; in July 2004, U.S. journalist Paul Klebnikov was murdered in Moscow for exposing Russian government corruption; and in June 2005, Manafort proposed that he would work for Putin’s government in former Soviet republics, Europe, and the United States by influencing politics, business dealings, and news coverage.

From 2004 to 2014, Manafort worked for Yanukovych and his party, trying to make what the U.S. State Department called a party of “mobsters and oligarchs” look legitimate. In 2016, Manafort went on to lead Donald Trump’s campaign, and the ties between him, the campaign, and Russia are well known. Less well known is that in 2008, Manafort’s partner Rick Davis ran Republican candidate John McCain’s presidential campaign.

Schmidt writes that McCain turned a blind eye to the dealings of Davis and Manafort, apparently because he was distracted by the fallout when the story of his personal life hit the newspapers. Davis and Manafort were making millions by advancing Putin’s interests in Ukraine and eastern Europe, working for Yanukovych and Russian oligarch Oleg Deripaska. Schmidt notes that “McCain spent his 70th birthday with Oleg Deripaska and Rick Davis on a Russian yacht at anchor in Montenegro.”

“There were two factions in the campaign,” Schmidt tweeted, “a pro-democracy faction and…a pro Russia faction,” led by Davis, who—like Manafort—had a residence in Trump Tower. It was Davis who was in charge of vetting Palin.

McCain was well known for promising to stand up to Putin, and Palin’s claim that she could counter the growing power of Russia in part because “[t]hey’re our next-door neighbors, and you can actually see Russia from land here in Alaska, from an island in Alaska” became a long-running joke (the comment about seeing Russia from her house came from a Saturday Night Live skit).

But a terrific piece in The Nation by Mark Ames and Ari Berman in October 2008 noted: “He may talk tough about Russia, but John McCain’s political advisors have advanced Putin’s imperial ambitions.” The authors detailed Davis’s work to bring the Balkan country of Montenegro under Putin’s control and concluded that either McCain “was utterly clueless while his top advisers and political allies ran around the former Soviet domain promoting the Kremlin’s interests for cash, or he was aware of it and didn’t care.”

Trump’s campaign and presidency, along with Putin’s deadly assault on Ukraine, puts into a new light the fact that McCain’s campaign manager was Paul Manafort’s business partner all the way back in 2008.

Note: Richardson has a list of sources at the end of her post. For some unknown reason, WordPress did not permit me to copy her notes. I inserted some but not all. Open the post to check the links.

Jonathan Chait writes for New York magazine, where his latest article appeared, opposing the U.S. Department of Education’s proposed regulations for the federal Charter Schools Program (CSP). CSP currently spends $440 million annually to underwrite new charter schools. Chait titled his article “Biden Abandons the Obama Legacy on Charter Schools,” but it might as well have been titled “Biden Abandons the Betsy DeVos Legacy on Charter Schools.”

Chait also attacked the Network for Public Education, which had issued two reports (see here and here) documenting the waste, fraud, and abuse in the CSP, based on the Education Department’s own data. NPE found that almost 40% of CSP funding went to charters that either never opened or closed within a few years of opening. In the life of the program, almost $1 billion had been wasted. In addition, NPE pointed out the scandals associated with some high-profile for-profit charter operators, as well as the use of CSP money to open white-flight charters.

This year, for the first time since the CSP was created nearly 30 years ago, the Department proposed to ban the funding of for-profit charter management organizations and of white-flight charters. The regulations also ask applicants for an impact analysis that describes what effect the new charter is likely to have on existing public schools and why the new charter is needed. These sensible reform proposals sent the charter lobbyists into frenzied opposition, claiming falsely that these regulations were meant to destroy all charter schools. This was nonsense because they would have no effect on the thousands of existing charters, only on applicants for new federal funding, that is, charters that do not yet exist.

Congresswoman Rosa DeLauro, chair of the powerful House Appropriations Committee, sharply denounced the lies and misrepresentations of the “trade organization” for the charter industry. But, despite her reproach, the charter industry still promotes dishonest diatribes about the Department’s efforts to reform the CSP.

Carol Burris, the executive director of the Network for Public Education, was incensed when she read Chait’s defense of the charter industry’s effort to protect the for-profit managers who have abused CSP funds and of the operators that have used CSP funding to provide white-flight charters.

She wrote the following response.

In his recent column, “Biden Abandons the Obama Legacy on Charter Schools,” Jonathan Chait is perturbed that the U.S. Department of Education referred Chalkbeat’s Matt Barnum to me for comment on an article he was writing about the Department’s proposed regulations for funding new charter schools. He then scolds Barnum for not disclosing that the Network for Public Education has received donations from unions. He calls Barnum’s story “neutral.” Chait’s source for this big scoop? The National Alliance for Public Charter Schools.

Jonathan Chait then parrots the “wild exaggerations and misrepresentations” that Rosa De Lauro called out last week after expressing her support for CSP reforms during the Education Department’s 2023 budget hearing. The Appropriations Chairwoman noted that “this kind of information campaign is a familiar tactic for the trade organization [National Alliance for Public Charter Schools]. It does represent charter schools that are run by risky low-quality for-profit education management organizations.”

You know those “wild exaggerations.” I wrote about them here. Obviously, Chait did not read the mentioned Barnum piece, which was solid reporting, and he certainly did not read the proposed regulations carefully (which Representative DeLauro described in a letter to Secretary Miguel Cardona about the charter industry’s misrepresentations). Or he just chose to twist facts and truth.

Now let’s talk about what Jonathan Chait failed to disclose as he opposed the CSP regulation reforms, using the same misinformation that has appeared in other op-eds.

His wife worked for Center City Charter Schools as a grant writer when that charter chain received two grants from the Charter School Program (CSP), the program whose loose rules he is now defending. Download the 2019 database that you can find here and match the years of dispersion to the resume of Robin Chait. But the undisclosed conflict continues to this day. Since 2018, Robin Chait has worked for West Ed which evaluated the CSP during the Betsy De Vos era. And her employer, West Ed, once got its own $1.74 million grant from CSP.

But back to NPE funding. During some recent years we got modest donations from unions to bring teachers to our conferences. At our very beginning, we received start-up funds from the Chicago Teachers Union through a fiscal sponsor, Voices for Children. That ended in 2015. We will always be grateful to our friend, the late Karen Lewis, for that jump-start. Karen foresaw the growing attacks on public schools and teachers as an ominous trend and wanted to encourage allies to support a bedrock institution of our democracy.

We appreciate any tax-deductible donations we get. You won’t get favors, but you will always get a thank you. Our income comes from individual donations from our large number of supporters—educators, parents, family foundations, and other citizens who have a deep and abiding love for public schools.

This is not the first time Chait has been called out for not disclosing his wife’s connections with charters. But given the topic and her work in organizations connected with the Charter School Program, this is the worst omission yet. Shame on New York Magazine for not making him disclose and for letting him play fast and loose with the truth. And shame on Chait’s hypocritical critique of Barnum even as he hides the family connections with the program he defends.

The Tennessee Holler asks a pertinent question:

Why did Commissioner of Education Penny Schwinn fail to mention her husband’s employer in her disclosure statement?

The Holler wrote:

This week some eagle-eyed Hollerers pointed out TN Ed Commissioner Penny Schwinn left TNTP, the company where her husband works, off of her source of income disclosure.

She listed it last year, but not this year, despite the fact that he remains on their website as a “Leadership Coach.”

This is especially noteworthy since TNTP was a recipient of an $16 MILLION contract from the Tennessee Education Department, a department Schwinn is in charge of… a fact that was not lost on legislators who raised the “Conflict of Schwinnterest” issue in committee last session.

Was leaving TNTP off the disclosure an oversight on Penny’s part? Was it intentional? Are they no longer married? Is he no longer at the company?

These are questions someone should ask, and we will next time we see her.

It’s worth noting that Schwinn has a history of conflicts of interest and self-dealing. They’ve been hallmarks of her career, showing up in both Delaware and Texas, her stops along the way since starting a charter school in Sacramento. She also ran for school board in Sacramento, where she was supported by Michelle Rhee, whose charters lobbyist organization 50 CAN now is affiliated with charter school lobbyist Victor Evans at Tennessee Can, who is now vocally pushing through the new TISA funding overhaul plan from Governor Lee, even standing with him at press conferences.

Victor does NOT want to talk to us about the connection between Michelle Rhee at his parent company and Schwinn, no matter how hard we try.

There is more. Open the link and follow the story.

Carol Burris is executive director of the Network for Public Education.

She writes:

For the past four years, the Network for Public Education has collected and posted charter school scandals from across the United States on a special page of its website entitled Another Day Another Charter School Scandal which you can find here.

NPE has now turned that page into an interactive research tool, allowing you to find a collection of stories by state, by scandal type and by keyword. For example, if you want to search any published story on scandals associated with Success Academy, just type in Success Academy into the query box and ten stories pop up.

Looking for stories regarding charter theft or fraud? Use the drop down menu and 177 stories appear.

At the beginning of the month, we load up all of the stories we found during the prior month. Check back in early December to see November’s scandals. We have presently cataloged stories from 2019 to the present. We plan to add 2017 and 2018 to the research tool shortly. One thing we know from doing this work is that if it is another day, there is another charter school scandal-which is quite remarkable given that there are only about 7500 charter schools in the United States.

The authorizer of the Hmong College Prep Academy in St. Paul, Minnesota, wants to fire the superintendent of the school after learning of big losses in the school’s funds.

A St. Paul charter school’s authorizer has placed the school on probation and recommended the board fire its superintendent after she lost $4.3 million of the school’s money investing in a hedge fund.

The authorizer, Bethel University, said Hmong College Prep Academy’s failed investment “illustrates areas of great concern related to managing finance, governance and legal compliance.”

Christianna Hang, superintendent and chief financial officer, founded the school in 2004. It’s now the state’s largest single-site charter school, with around 2,400 students in the Como neighborhood, and is building a $43 million middle school with financing facilitated by the city of St. Paul.

Hang was looking for opportunities to pay for that project when she ended up wiring $5 million to a hedge fund in 2019, in violation of the school’s policy and state law. The school is now suing the hedge fund.

Bethel’s Aug. 30 letter also cited “significant concerns” about conflicts of interest regarding the superintendent, her husband and a former school board member.

The first conflict involved Bridge Partner Group, a company owned by Hang and her husband, Paul Yang. The board in January approved a contract with the company, effectively converting Yang from the school’s chief operating officer to an independent contractor on a fully guaranteed, five-year contract worth around $190,000 a year; the board later reversed that move.

The second conflict involves Northeast Bank, which was chosen to finance $7 million of the middle school project while one of its vice presidents, Jason Helgemoe, served as vice chair on the Hmong College Prep board.

Bethel has directed the board to spend 90 days making numerous changes at the school, including dividing superintendent and chief financial officer into two separate positions and hiring a financial consultant who reports directly to the authorizer.

In addition, Bethel is “recommending” the board fire Hang and replace her with someone with no prior ties to Hmong College Prep and for the board to appoint a chairperson who is not employed by the school; the current chair is a teacher.

If you are wondering why there is a Hmong charter school, Minnesota has a long-established practice of authorizing racially and ethnically segregated schools. Defenders of the practice say the children are more comfortable going to school with children of the same background.

I remember when Southerners said the same about segregated schools in the 1950s.

When was the last time your school had millions to invest in the market?

Denis Smith went to graduate school in West Virginia and served as an elementary and middle school principal, director of curriculum, and director of federal programs in the suburban school system adjacent to the state capital. He subsequently moved to Ohio, where he was in charge of overseeing the state’s burgeoning and scandal-ridden charter sector. He wrote a warning to West Virginia, published in the state’s major newspaper, about its new charter law and what is likely to happen. It won’t be pretty.

He said that charters will not be accountable. They will divert money from the state’s public schools, while doing whatever it takes (campaign contributions?) to avoid academic and financial accountability.

He pointed out that the people of West Virginia will lose local control of their schools, as national charter chains move in.

Consider the irony that the leader of the founding coalition of the proposed West Virginia Academy is a professor of accounting. But then we should also know that, when it comes to all things related to charter school accounting and accountability, nothing adds up. Add to that the fact that these schools are free from many sections of state law, including school boards that are directly elected by the public. For example, in Ohio, where I live, charter schools are exempt from 140 sections of the state code.

Keep in mind that charter boards are hand-picked, selected by the companies that manage the school, where school governance by design is not accountable to the voters…

As a former resident of West Virginia and a school administrator in West Virginia and Ohio, it is my hope that the citizens of the Mountain State might learn from the mistakes of Ohio, which bears the distinction of having a refuse pile containing the wreckage of nearly 300 closed charter schools, some of which received funding but never opened, emitting a rancid, overpowering odor, a byproduct of bad public policy.

And speaking about waste, Ohio has spent more than $4 billion on the charter school experiment so far, an exercise that is hell-bent on using public funds for private purposes while skirting transparency and accountability requirements.

Smith asks the people of the state:

Are West Virginians, exploited for generations by energy companies, in favor of selling off their public schools?

Republicans have whipped up a frenzy in the states and in the conservative media that they control about “critical race theory.” They are blowing up the issue because it benefits their party in two ways:

First, it distracts public attention from the violent and unprecedented assault on the U.S. Capitol on January 6. They want to pretend that day—where their own lives were at risk—never happened. It was like “a normal tourist visit,” as one House Republican member said. It was a day of infamy that should never be forgotten, but Republicans are trying to bury it.

Second, the CRT dispute is the kind of cultural wedge issue that fires up the Republican base. They cheer as legislatures pass laws that would criminalize teaching about racism and sexism, because some students might feel bad to learn what really happened in the past.

Nikole Hannah-Jones is a celebrated journalist who has won major awards for her work. The current controversy was launched in reaction to “The 1619 Project,” which she organized and to which she contributed the introductory essay about the resilience of racism. It waspublished in a full issue of The New York Times magazine.

You know the story by now about how the journalism school at the University of North Carolina offered her the Knight Chair of Race and Investigative Journalism. But when the faculty decision reached the board of the university, they decreed that—unlike her white predecessors—she would not be offered tenure.

In response to ongoing protests by students and faculty, the board took another vote and agreed (9-4) to reverse their original decision and to offer her tenure. Hannah-Jones rejected their grudging offer and will instead create a journalism center at Howard University, the most prominent Historically Black University in the nation.

Mercedes Schneider posts here the story behind the scene, as written by Joe Killian of NC Policy Watch. Killian fills in the blanks about the influence on the original decision by Walter Hussman, the wealthy and conservative magnate who donated $25 million to UNC for the journalism school, which was renamed the Hussman School of Journalism. Initial reports suggested that he did not use his influence to affect the board’s decisions. Killian says otherwise.

Carol Corbett Burris was a teacher and principal on Long Island, in New York state for many years. After retiring, she became executive director of the Network for Public Education.

She writes:

Last spring, HBO released Bad Education, which tells the story of how a Roslyn, New York Superintendent named Frank Tassone conspired to steal $11.2 million with the help of his business officer, Pamela Gluckin.  Promo materials called the film “the largest public school embezzlement in U.S. history.”

I did not watch it. I am waiting. I am waiting for HBO to release a movie on how a crafty fellow from Australia, Sean McManus, defrauded California taxpayers out of $50 millionvia an elaborate scheme to create phony attendance records to increase revenue to an online charter chain known as A3. 

Or the documentary about the tens of millions that the Electronic Classroom of Tomorrow (ECOT) owes taxpayers for cooking the books on attendance. Or perhaps there will be a mini-series about the fraud and racketeering that charter operator Marcus May engaged in that brought his net worth from $200,000 to $8.5 million in five years and landed him a 20-year sentence in jail. 

The truth is, Frank Tassone and his accomplice are small potatoes compared to the preponderance of charter school scandals that happen every day. What is different is how lawmakers respond. 

When the Tassone case hit the news, I was a principal in a neighboring district. The New York State Legislature came down hard with unfunded mandates on public schools.

We all had to hire external auditors and internal auditors that went over every receipt, no matter how small. Simple things like collecting money for field trips or a club’s T-shirt sale suddenly became a big deal. Although there was no evidence that any other district was engaging in anything like what happened in Roslyn, every district transaction came under scrutiny.

Whether those regulations and their expenses were justified or not is irrelevant. What is relevant is that despite the years and years of scandal in the charter sector, state legislatures never change laws or impose new rules. For-profits run schools doing business with their related companies behind a wall of secrecy, and lawmakers do not worry a bit. 

I am puzzled. Why can’t charter schools be as transparent as public schools?  Why is the ability to easily engage in fraud necessary to promote innovation? 

No one has been able to answer my question yet. 

Billy Townsend was a school board member in Polk County, Florida. He saw up close and personal how charters were sucking the high-scoring students out of public schools and excluding the students with disabilities. He saw up close and personal how the state’s voucher program was serving as a refuge from high-stakes testing and enabling the restoration of racial segregation. Billy believes, as I do, that if the day ever comes when so-called reformers see the harm they are doing to kids and to our democratic institution of public education, they might repent. Will shame move them more than the pursuit of profit and power? Perhaps we are naive to think it might. But hope springs eternal that even the profiteers and entrepreneurs and shady fly-by-night grifters might someday see the light.

Billy has written a powerful series about the Jeb Crow school industry and how its sole purpose is to destroy public education without helping kids. All of the articles are referenced in this post, the last of the series. He has demonstrated how the voucher schools are highly segregated and low-quality. He refers to the choice schools as “failure factories” but now calls them “Jeb Crow” schools to credit former Governor Jeb Bush for creating the Big Lie that school choice saves children. It doesn’t.

Townsend throws out a challenge to reformers who are sincere, if there are any, about equity and helping kids:

Serious “reformers” — those who actually mean it when they use the moral, racialized language of equity in justifying punitive policies that destroy public education capacity — know today that their entire life’s work is bullshit that failed on its own terms. 

They know it. Every single one of them. Some of them will cry about America’s super awesome graduation rate; but they know that’s manipulated data bullshit, too. Mostly, they’ve just gone silent while think tanks beg to keep getting useless test data and grifters use the language and weaponry “reformers” provided them to demolish public education capacity for everyone. 

The question now: if, when, and how will “reformers” ever break their shamed silence about their failures and decide to help us fix them?

Jeb Crow means wealthier, whiter kids get high capital charters; more vulnerable, less white kids get no capital vouchers; and we kill/privatize public schools altogether.

The grifting and cheating by state education officials is breath-taking. They know that school choice is a cynical ploy to shift money from taxpayers to private corporations. They know that the corporation that handles the voucher funding now has assets of nearly $700 million. They know where power lies in Florida. They know how corrupt the Legislature is. But everyone goes along to get along.

If you read one thing today, read Billy Townsend’s reports on Florida’s massive crime against children and the state’s own future.