Tag Archives: Broad Foundation

Organized to Disrupt

10 Jun

By Thomas Ultican 6/10/2020

The New Schools Venture Fund (NSVF) is the Swiss army knife of public school privatization. It promotes education technology development, bankrolls charter school creation, develops charter management organizations and sponsors school leadership training groups. Since its founding in 1998, a small group of people with extraordinary wealth have been munificent in their support. NSVF is a significant asset in the billionaire funded drive to end democratically run public schools and replace them with privatized corporate structures.

1990’s Silicon Valley was a Happening Place

Mark Andreessen had just co-written the world’s first web-browser, Mosaic, before he came to town from the University of Illinois to co-found Netscape. John Doerr left Intel in 1980 to join the venture capital firm Kleiner Perkins where his reputation for picking winners became legendary. His wins include Amazon, AOL, Compaq, Electronic Arts, Google, Netscape and Twitter. Internet search engines were in their infancy when in 1999 Doerr convinced his partners to put $12.5 million into Google. Five years later that investment turned into billions.

Like elsewhere in America, every little strip mall in San Jose, California had a Blockbuster video rental store. In 1997, Reed Hastings and Netflix co-founder Mark Reynolds came up with a disruptive idea that put Blockbuster out of business. For a monthly fee, they offered DVD’s by mail with no late charges. Blockbuster did not adapt fast enough and went bankrupt.

In the Valley, everyone was aware that their business could be just one new technology innovation away from being the next Blockbuster.

“DoWopDon” Shalvey was the superintendent of schools in San Carlos, California a bedroom community about a third of the way up the peninsula between San Jose and San Francisco. When California passed its 1992 charter school legislation, Shalvey’s application for a charter turned into California’s first charter school. It officially opened in August 1994.

Apparently, Don Shalvey was an amateur DJ and very into music. His twitter handle is @dooWopDon.

Shalvey joined with Reed Hastings in writing a statewide initiative for the 1998 ballot that lifted the cap on charter schools and eased restrictions on starting one. At that time, Hastings was made president of Technology Network, a bipartisan lobbying group formed by Silicon Valley CEOs. With their support, the initiative quickly amassed more than a million signatures. Opposition from the teachers union ended as they were also fighting against other education proposals coming from Governor Pete Wilson’s office.

A deal was struck making the initiative unnecessary. Legislative leaders passed a bill containing the initiative’s key ingredients and union leader withheld their objections. The new bill green-lighted an unlimited number of charter schools and just as importantly the bill authorized a single board to oversee multiple charter schools. It was the birth of charter management organizations and a massive acceleration in new charter school development.

When Pete Wilson signed the new bill into law in May 1998, Shalvey and Hastings had $403,000 left in their initiative campaign fund. They decided to shift the money into a non-profit and founded what became the Aspire charter school network.

Meanwhile on the other side of the continent, Ann Smith graduated with a degree in political science and psychology from Columbia University in 1989 and started working for Wendy Kopp and the Teach For America (TFA) founding team. In 1993, she moved to the Silicon Valley area and co-founded the Bay Area Youth Consortium – AmeriCorps. In 1996, she left AmeriCorps to pursue a Masters in Business Administration at Stanford University.

Smith was co-chair of the Stanford business school’s entrepreneur club and she wanted to get Amazon founder Jeff Bezos as a speaker for the club. She asked her friend John Doerr to help and he agreed on one condition. In an education session at Al Gore’s house, the name NewSchools had been created. Doerr wanted her to come up with a use for the name.

Bezos spoke at the club and Smith worked on her assignment. She wrote a two page paper outlining the NewSchools Venture Fund. She had been inspired by what Don Shalvey and Reed Hastings had accomplished and thought to herself, “Why couldn’t entrepreneurial philanthropists come together to create networks of entrepreneurial education organizations?” Smith labeled the paper “Creating CMOs — scaling up with quality — with the help of venture-capital-style philanthropic investing.”

The history at the NSVF web-site says,

“NewSchools Venture Fund was created in 1998 by social entrepreneur Kim Smith and venture capitalists John Doerr and Brook Byers.” (Byers is a colleague of Doerr’s from Kleiner Perkins)

“We were among the first and largest investors in public charter schools and the first to identify and support multisite charter management organizations, which launch and operate integrated networks of public charter schools.”

“NewSchools’ work to support digital learning tools began at our inception in 1998.”

Philanthropy Magazine notes that Reed Hastings helped, “to launch the NewSchools Venture Fund.”

Big Money and Political Connections

LittleSis NSVF Map

LittleSis Map of NSVF Massive Funding By Billionaires

While there is little doubt the Bill Gates and The Walton Family Foundation are the largest individual donors to NSVF, the $226,881,394 in grants documented in the map above are only a fraction of the total billionaire largess. Besides receiving help from Reed Hastings, over the last 20-years, billionaires John Doerr, Laurene Jobs Powell and John Sackler have served on the board, but there is no information about any of their monetary contributions.

Kim Smith was the founding CEO of NSVF. The second CEO was Ted Mitchell the former President of Occidental College and a founding board member of NSVF. Mitchell replaced Kim Smith as CEO in September 2005 and held the position until 2014. From 2008-2010, he was simultaneously President of the California State Board of Education.

Mitchell has also served on the boards of New Leaders, Khan Academy, California Education Partners, Teach Channel, ConnectED, Hameetman Foundation, the Alliance for College-Ready Public Schools, Silicon Schools, Children Now, Bellwether Partners, Pivot Learning Partners, EnCorps Teacher Training Program, the National Alliance for Public Charter Schools, and the Green DOT Public Schools.

On May 8, 2014 EdSource reported, “Former State Board of Education president Ted Mitchell was confirmed Thursday as under secretary of education, the third-highest ranking official at the U.S. Department of Education.”

NSVF’s 2010 990-tax form had a note that claimed, “To date, the Organization has successfully received support from … the U.S. Department of Education.” From 2003-2007, NSVF reported $5,997,900 in grants from governmental sources. In 2008, the line requiring listing governmental grants separately disappeared from the 990-tax form. There is no longer an easily accessible method for gaining that information.

Contribution Graph

Enormous Grant Amounts Reported by NSVF and Selected Billionaires

In the graph above the billionaire giving in green is for yearly totals from the tax reports by the billionaires in the LittleSis Map above. The 2016 spike occurred because some unknown entity contributed $68,000,000 to NSVF through the donor directed foundation Silicon Valley Community Fund.

In 2016, Reed Hastings created a $100,000,000 fund within the Silicon Valley Community Fund. At the same time, Laurene Jobs Powell was serving on the board of NSVF when her XQ Institute was granted $24,750,000 in 2015 and $57,402,973 in 2016. Either one of them could have made the large contribution or maybe it was someone else.

Every year NSVF hosts a “Summit” in Oakland, California which they state brings together more than 1,200 educators, entrepreneurs, community leaders, funders, and policy makers to share ideas on how to “reimagine learning.” These “Summits” are a must attend for the disrupter community and they drive contributions.

To replace Mitchell as CEO when he left for the Department of Education in 2014, NSVF brought in Stacey Childress from the Bill and Melinda Gates Foundation. Childress earned an MBA from Harvard Business School in 2000. Afterwards, she spent a year co-founding an enterprise software sales company and then returned to Harvard where she was a Senior Lecturer and Executive Director. In 2010, Childress became Deputy Director of the Gates Foundation. She has been CEO of NSVF since arriving in 2014.

Both Mitchell and Childress have received NSVF salaries in excess of $500,000. The 2018 NSVF tax-form explanation of their compensation method reads,

“The organization obtained compensation studies from several independent sources to compile information used as a metric for salary increases … A subcommittee of the Board of Directors (BOD) conducts the review of the CEO and develops a recommendation for the full BOD.”

This is similar to the method that has ballooned executive pay in corporate America while line worker wages have stagnated. It is a method that justifies those at the top getting an ever greater share.

Investing in Privatization and Education Technology

NSVF claims they have invested in 117 Ed Tech companies, 187 charter schools and 55 diverse leaders programs.

Among their Ed Tech investments are Class Dojo, EdSurge, LearnZillion, Phet Interactive Simulations and Education Elements. When NSVF makes a major investment in an Ed Tech startup, they require a position on the companies governing board.

One of NSVF’s founding board members, Dave Whorton, is also the founder of Tugboat Ventures. When NSVF invested in Education Elements so did Tugboat Ventures. Dave Whorton was made a member of Education Elements Board of Directors where he efficiently keeps an eye on funds from both Tugboat and NSVF.

When first founded, NSVF invested heavily in Aspire Public Schools because of their plan to create a charter management organization. In 2001, they granted $1,095,000 of their total of $2,468,000 in giving to Aspire.

As their wealth grew the grants to charter schools became very similar to the grants their funders were making. They have funded DC Prep, Phalen Leadership Academy, Rocketship Education, Success Charter Network, Yu Ming Charter School and almost 200 more.

The Yu Ming Charter is essentially a private Mandarin immersion school that has just submitted a material revision to their expansion plan that was rejected in December. It has been alleged the Yu Ming does not want new students above the kindergarten level. A parent comment on the Berkeley Parent Network says, “The teachers seem reluctant to admit kids who aren’t quite up to par in Mandarin as it can be really overwhelming for students to be new and they don’t want to see them struggle and be under water from the get-go.” To which Oakland Educator Jane Nylund responded,

“Real, authentic public education is hard; we deal with struggling students every day as expected, standard educational practice. We don’t find a way to reject them because they are ‘struggling’. This honest assessment by an involved parent is just more evidence of a ‘public school’ in name only, and not in practice.”

NSVF’s diverse-leaders investing is aimed at replacing quality teacher education at universities with for profit organizations that have very limited expertise. It is also aimed at selling the privatization agenda. NSVF invested in Branch Alliance for Education Diversity, edfuel, MindWorks Collaborative, National Charter Collaborative, School Board Partners, TNTP and fifty more organizations.

School Board Partners came out of Education Cities when The City Fund was established. They appear to want influence over school board members by offering training; a function every state already provides. They are a part of selling the privatization agenda.

TNTP was rolled out of TFA by Wendy Kopp and Michelle Rhee. Before the billionaire driven push to privatize public education a “non-profit” company like TNTP would have gotten no consideration for training teachers because they are unqualified.

Final Comments

Kim Smith staid on the board at NSVF and in 2011 co-founded Bellwether Education Partners. The next year she founded the Pahara Institute where she is the CEO. Her 2016 pay reported on tax forms signed by her was $419,576. (Update: Smith recently stepped down as the Pahara CEO.)

DoWopDon (Don Shalvey) is now Deputy Director of the College Ready Team at the Bill and Melinda Gates Foundation.

NSVF along with scores of billionaire funded Foundations has been spending staggeringly large amounts of money to privatize public education and monetize it. This spending has been going on for decades now. So, why are about 90% of America’s students still attending public schools? The answer is simple.

The “disrupter” products are bad and Americans are not buying what their selling.

Charter School Scourge Invading Sweetwater

1 Oct

By Thomas Ultican 10/1/2016

Chula Vista, California

On Monday evening (9/26/2016), the board of the Sweetwater Union High School District (SUHSD) had petitions from three charter schools; two requesting charter renewals and one for a new school. The two renewals are co-located charters that were started by SUHSD’s previous board (four of the five resigned as part of plea deals) and the new petition is for an independent study charter.

My first teaching job was in SUHSD as a paid certificated intern, teaching 3 out of a possible 5 classes a day while completing a master’s in education at UCSD. At my new job, I was soon regaled with stories of corruption in Sweetwater instigated by superintendent, Ed Brand. I never witnessed direct evidence of this widely and firmly held belief. Brand’s first stint as SUHSD Superintendent was from 1995 to 2005.

It was surprising in 2011, when the SUHSD Board brought Brand back. He had resigned as Superintendent of San Marcos Unified in 2006, less than a year after leaving Sweetwater to assume that position.

An article in the San Diego Union speculated that Brand was pushed out in San Marcos for unethical hiring and political practices. It says in part:

“… accounts have emerged of other things not in keeping with San Marcos Unified’s image. They include Brand’s ordering the hiring of a teacher, whose husband is a state education official, even though a panel of elementary school principals in charge of hiring voted not to offer her a job; a staff party for management aboard a 112-foot historic yacht; and two outsiders infusing cash into a school board candidate’s campaign.”

The state education official was Scott Himelstein then Deputy Secretary of Education/Chief of Staff and later Acting Secretary of Education for the State of California. In that capacity he served as chief policy advisor to Governor Arnold Schwarzenegger on K-12 and higher education.

William D. Lynch was a source of outside money and according to the Union article cited above, “The High Spirits yacht, where Himelstein hosted the party, is owned by multimillionaire businessman William D. Lynch….” Lynch is an ally of Brand’s and of state Secretary of Education Alan Bersin, former superintendent of San Diego city schools. Lynch is also a philanthropist who runs the William D. Lynch Foundation for Children, which promotes literacy. Scott Himelstein is the foundation’s former president.

Given who he associates with it was not surprising to learn that Ed Brand promotes privatizing public schools. Upon returning to Sweetwater, he started working on a new charter school idea. His dream was to develop a k-16 charter system and with support from several long time cronies, he had a charter proposal written. Susan Mitchell who has an almost forty-year working relationship with Brand was the lead petitioner for the school originally named Ivy League Prep Academy but soon renamed Stephen H. Hawking Math and Science Charter School.

Like Mitchell, most of the stated charter school founders also had similar long term associations with Brand. Before the courts and voters replaced the SUHSD school board, Brand was able to open a second charter school named Stephen W. Hawking II Science, Technology, Engineering, Art and Math Charter. The schools were started as K-6 schools not through 16.

Co-Location

After the passage of proposition 13 in 1978, it became almost impossible to pass a bond issue for the construction of new school facilities in California. Amendments that gutted proposition 13’s 2/3 requirements for passing bond measures always looked popular initially but were soundly defeated come election day. In 2000, proposition 39 was narrowly written so it only reduced the requirement to pass school bonds and it required a 55% majority. A big loud political battle ensued but proposition 39 prevailed.

The charter school industry was able to slip a clause into proposition 39 that required school districts to make any excess capacity available to charter schools. This crucial point was barely noticed and not debated publically at all.

Co-location is a very disruptive unsound education policy. As Gary Cohn reported in Huffington post:

 ‘“One of the difficult things about having a charter school co-located on a district public school campus is that . . . the two schools end up competing for those things that are necessary to provide a quality education for the students,’ says Robin Potash, an elementary school teacher and chair of the United Teachers Los Angeles (UTLA) Proposition 39 Committee. ‘That includes competing for the same students.”’

 In a July 10, 2015 article for La Prensa, Susan Lazzaro wrote:

“Community advocate Maty Adato asked the Sweetwater Union High School board a provocative charter school question at the June 22 board meeting. Trustees were deliberating on the renewal of facility contracts for Stephen Hawking charters I & II. The charters are for grades K-6 and Adato wanted to know if Sweetwater, a 7 -12 district, must give up unused classroom space to a K-6 charter.”

This is a question that seems bound for the courts because besides being bad policy, in order for this co-location mandate to be hidden in proposition 39, the law had to be poorly written. Lazzaro also noted a question from one of the five new board members, Paula Hall, “What happens, she asked, if the charter schools want more of our classroom space?” Another question without an answer.

Hawking I is co-located with Castle Park Middle School and Hawking II is co-located with Southwest Middle School. This is a clear illustration of the irrationality of the charter school movement from the standpoint of the taxpayer. In these two campuses there are four administrations doing the job that two administrations did 5 years earlier. The charter school movement is driving up the education cost per student which means either class sizes must increase or school taxes must increase; probably both.

In addition, taxpayers within the school district’s boundaries obligated themselves with bonds and other taxes to pay for these schools. Now, the buildings have been partially taken out of public control and their elected representatives no longer have legal authority to represent constituent interests.

The charter school movement puts tax dollars outside of democratic control with little accountability. Even with strict public accountability, malfeasance and criminality occur. It should come as no surprise that fraud and abuse are escalating in this low accountability charter school era.

A fundamental charter school theory postulates that elected representatives developed emasculating education code depriving public schools of the opportunity for innovation and improvement. Charter schools freed from accountability promised to untie this Gordian knot and market forces were expected to drive improvement. After 20 years, we see that charter schools are better at marketing than public schools but only rarely match the public school teaching prowess. For the first time nationally, education progress appears to have slowed with the rise of charter schools.

pisa-2000-to-2012

Independent Study Charter

 Carol Burris, the Executive Director of National Public Education is currently publishing a series of articles about the charter school movement. In the second installment carried by the Washington Post she writes about independent study charters.

“Although the original intent of the independent charters may well have been to scoop up at-risk kids and give them a second chance, the lack of criteria for student placement, along with inadequate regulations have led to obvious abuses. There are now far too many independent learning charter schools whose operators, some with no background or expertise in education, make substantial salaries, ….”

The third charter school petition at Monday’s school board meeting was for a proposed new independent study charter, ACATL Leadership Academy. Their Facebook page describes ACATL’s vision:

“ACATL Leadership Academy’s (ALA) mission is to create an educational system that ensures social justice by acknowledging, understanding and healing institutionalized racism, poverty, and marginalization.

“ALA will be a non-classroom based 9-12 grade charter high school within the Sweetwater Union High School District, and will be a reed in our community known for its innovation, flexibility and strength.

“ALA will serve students 14 thru 22 years of age and will set a goal of recapturing students who have left the traditional school system. ALA will partner with students, parents and family (relatives), and community organizations to address social justice issues our youth encounter in San Ysidro, California – the San Diego International Border region of the United States.”

 This sounds great, however, taxpayers have already established Learning Centers at every high school in the SUHSD.

The public school system also provides an Adult School in San Ysidro  which is an opportunity local taxpayers are providing for “recapturing students who have left the traditional school system.” Now taxpayers are being asked to compete with themselves and support yet another facility with no real needs assessment.

In other words, publicly financed schools are already performing the same function ACATL proposes with the advantage of having highly trained experienced psychologists, councilors and certificated teachers working with students. This request for taxpayer money to be taken from Sweetwater schools to finance someone’s heartfelt dream makes little sense, but California’s charter school law pretty much guarantees ACATL will get a charter.

Carrol Burris in the article I cited above also spoke to the profit motive of these kind of schools:

“In addition, running independent learning centers can be very lucrative. One of San Diego County’s largest networks of independent learning centers is the Altus Institute. It advertises on billboards and runs ads in movie theaters and on television.  Altus operates Audeo Charter, Audeo Charter II, the Charter School of San Diego and Laurel Academy. It has a total K-12 enrollment of about 3,000 students and takes in tens of millions of dollars in state and federal revenue. Like Learn4Life, its learning centers are located in malls and office buildings. Its younger students are home-schooled.

“In 2014 compensation for Altus Institute President Mary Bixby was $371,160 — exceeding the total pay plus benefits of the superintendent of the San Diego Unified School District that serves nearly 130,000 students. Bixby is a board member of the charters, a full-time employee of one of the schools and also receives compensation for being “on-loan” to two other Altus schools. Such obvious conflicts of interest would be illegal in a public school.”

 Segregation by Choice

Last year a new charter school, Imperial Beach Charter, opened up next door to my high school. A local resident remarked to me, “the people west of 13th street don’t want their kids going to school with those kids at Mar Vista Academy.”

A blogger going by the moniker educationrealist posted this observation:

“I offer this up as opinion/assertion, without a lot of evidence to back me: most parents know intuitively that bad teachers aren’t a huge problem. What they care about, from top to bottom of the income scale, is environment. Suburban white parents don’t want poor black and Hispanic kids around. Poor black and Hispanic parents don’t want bad kids around. (Yes, this means suburban parents see poor kids as mostly bad kids.)”

 I recently reviewed Mercedes Schneider’s new book, School Choice. On page 22 she writes:

“Thus, what is clear about tuition grants, scholarships, or grants-in-aid, and the history of American public education is that these were tools used to preserve segregation. There it is: The usage of choice for separating school children into those who are ‘desirable’ and those who are not.”

This following table shows the demographic difference between the Mar Vista Academy (the public school) and Imperial beach charter.

School Hispanic or Latino White not Hispanic English Learners Free & Reduced Price Meals
Imperial Beach Charter 514 (59%) 250 (29%) 160 (18 %) 544 (62%)
Mar Vista Academy 714 (82%) 45 (5%) 277 (32 %) 679 (78%)

Conclusions:

Too often, charter schools are just rouges to make taxpayers finance private schools.

Charter schools have not shown significant educational improvements and they come with significant risks. Last year the Center for Media and Democracy reported:

“Nearly 200 charters have closed in California, nearly one of every five that have opened. Their failures have included stunning tales of financial fraud, skimming of retirement funds, and financial mismanagement, material violations of the law, massive debt, unsafe school conditions, lack of teacher credentials, failure to conduct background checks, terrible academic performance and test results, and insufficient enrollment.”

In other words, many charter schools are unstable and they have shut down with no notice even mid-way through a school year.

Charter schools increase the cost of education because of the required redundant administration for the same number of students and private sector administrative incomes are normally much higher than public employment rates.

All of the charter requests to SUHSD should be denied, but under present law if that happens either the county or the state will grant the charter. Past time for an immediate moratorium on new charter schools in California. Unwinding this unstable costly charter school system will benefit students and taxpayers.

The charter school industry wasn’t an organic development. Politicians and their wealthy masters created it with massive incentives. The federal government is spending billions on promoting charters plus foundations such as the Bill and Malinda Gates Foundation, the Walton Family Foundation, the Edith and Eli Broad Foundation and the Fisher Foundation provide unimaginably large sums of money toward these privatization efforts yearly. If the elites succeed in destroying and monetizing our public education system, the opportunities for middle and working class people will significantly diminish. Just look at Detroit to see what the future holds for the poor.

The charter school movement is undemocratic and irrational. It needs to end.

Twitter: @tultican