Tag Archives: John Sackler

Steady Education Privatization Advancing in California

9 Sep

By Thomas Ultican 9/9/2026

This post looks at the state of public education in California. It is important to be clear that charter schools are not public schools but are private schools financed by the public. I firmly believe that the great gift from our forefathers was public education for all. It may be surprising for many people but it can be shown that public schools are superior to all forms of privatized schools including charters and high-end private schools. Therefore, the continuing expansion of charter schools in California can only be explained by their superiority over public schools in marketing.

The first step in this evaluation was to download and graph enrollment data. The next six graphics show the rate of privatization and other k-12 school enrollment trends.

Figure 1:

Figure 2:

Figure 3:

Figure 4:

Figure 5:

Figure 6:

Figure 6 is based on data provided by the World Population Review. For the past decade, a right-wing friend (yes, I have a few) has been telling me that people have given up on California and that there is a mass exit occurring. This graph says that my friend is misinformed. In fact, between 2015 and 2025 the state’s population grew by half a million people.

Interestingly, Figure 1 based on data from the California Department of Education shows that California’s publicly supported student population decreased by half a million students between 2015 and 2025. One possible explanation for this decline might be that many children started attending private schools. However, Department of Education data graphed in Figure 5 shows that from 2015 to 2025 private school enrollment only grew by 13,775 students. The Little Hoover Commission reports on two factors that are likely behind the public-school enrollment declines; the population is aging and fertility rates are decreasing both of course leading to less students.

Figures 3 and 4 break out the attendance of the five largest ethnic groupings. Hispanic students constitute about 56% of California’s student population. Their attendance from 2015 to 2025 decreased by 150,000 students. The second largest ethnic group, White students, saw their enrollment fall by more than 370,000 students over the same period. African Americans decreased by 85,000 students and Filipinos by 29,000 students. Asian enrollment grew by 37,000 students marking them as the only ethnicity to expand their numbers.

Growing Privatization

Since their 1994 inception, charter schools have been educating an expanding percentage of California students. Figure 2 is a graph of the percentage of charter school students enrolled in California over past 10 years. The data shows that charter school enrollment has averaged 0.35% percentage growth per year going from 9.7% of total enrollment in 2015 to 12.7% in 2025.

California’s charter school establishment and growth have always been a billionaire financed and led effort. The first California charter school was authorized in 1994. The original charter school law capped the number of these schools at 100; however, Netflix CEO, Reed Hastings, successfully campaigned to end that limitation.

A powerful proponent of the privatization movement has been the California Charter Schools Association (CCSA). It was founded in 2003 with an uncompensated Caprice Young listed as CEO. CCSA’s first tax report was filed less than two months after the founding and showed no activity or appointed board. The next tax report in 2004 listed Walmart billionaire, John Walton on the first CCSA board of directors. He died in a plane crash in 2005 and his billionaire niece, Carrie Walton Penner, took John’s seat on the board. Reed Hastings was a CCSA board member from 2007 until 2015. (TIN: 51-0465703)

There were other billionaires supporting the charter school movement. The history tab at the NewSchools Venture Fund (NSVF) website states, “NewSchools Venture Fund was created in 1998 by social entrepreneur Kim Smith and venture capitalists John Doerr and Brook Byers.” Doerr and Byers are both billionaires. Kim Smith was a friend of John Doerr’s and a graduate student at Stanford when she wrote a two-page paper outlining NSVF which promotes charter schooling.

Bill Gates and the Walton Family Foundation are the largest individual donors to NSVF. In 2020 their grants totaled $226,881,394. Over the last 20 years, billionaires John Doerr, Laurene Powell Jobs and John Sackler have served on the NSVF board.

Research by the Network for Public Education revealed that charter schools are plagued by instability. In the first three years of operation, more than 15% of new charter schools close their doors and eventually half of all charter schools go out of business. Charter promoting organizations like CCSA and NSVF counter that charter schools get better test results, but testing by California’s Department of Education shows the opposite.

Some parents who put their children in charter schools do not recognize the risks. In many states, charter schools are exempt from most state and local laws, rules, regulations, and policies governing public and private schools, including those related to safety, personnel and students. Unlike public schools, charter schools in California are not required to meet earthquake safety measures. Dr. Lucy Jones of the California Seismic Safety Commission was asked if she thought public schools were safer than charter schools. Her simple answer was “Yes.”

The most rigorous and most expensive study of charter school performance commissioned by the US Department of Education found no overall positive effect for charter schools. Maybe the reason billionaires like charter schools is a mindless belief in private business or maybe they see a business opportunity. Whatever the case, the result is they are undermining that great public education gift from America’s forefathers.

Conclusion

Public education in California is facing two issues, a decreasing student population and attack by the unbelievably wealthy. Like almost every other issue plaguing society, the increased concentration of wealth in a relatively few hands is a significant driver for education privatization. It follows that stopping the demise of public education requires reversing today’s great concentrations of wealth.

Public education in California is relatively healthy but the ongoing charter school privatization drive is creating two problems. Our public schools have been the great training ground for democracy and social cohesion. With more than 90% of students attending public schools, Californians had a common background and a shared understanding of democracy in action. Now that is disappearing. With more than 12% of California students attending privatized schools we are losing commonality and the ideals of a democratic society.

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.