Tag Archives: Reed Hastings

California Billionaire Election Spending 2022

17 Oct

By Thomas Ultican 10/17/2022

Billionaires are once again spending heavily to flex political influence in California. Much of the spending is directed toward implementing neoliberal ideology into education policy. It makes sense that billionaires embrace neoliberalism and in some cases libertarianism. The present system has made them wealthy beyond even their own imagination and the philosophy of “I got mine so you can bugger off” appeals to many of the ultra-wealthy. However, it is shocking to see unions joining forces with these people who abhor collective bargaining.

Much of the school board spending is directed at the Los Angeles Unified School District. Three seats that the oligarchs previously won with massive spending are up for election. The two incumbents standing for reelection this year won their seats in 2017, which was the most expensive school board election in history. During that race, data from the LA Ethics Commission shows independent expenditures supporting Nick Melvoin totaling $5,500,000 while Kelly Gonez raked in $3,340,000. Melvoin won a tough race for district 4 running against Board President Steve Zimmer. Gonez easily won the district 6 seat.

The other incumbent besides Zimmer running in 2017 was Monica Garcia who had received ample monetary support from billionaire Ely Broad and friends in her first two elections. Because of term limits, 2017 would be Garcia’s last go around. This year, Garcia’s long time chief of staff, Maria Brenes, has been selected to represent neoliberal interests in district 2.

How the Billionaires Structure Their Spending

For the Interactive LilSis Map Select Here

Arthur Rock is a 96-years-old investor who bet on Apple, Intel and other famous tech companies when they were start ups. His 2021-2022 political giving includes being by far the biggest sponsor ($399,000) for the successful effort to recall three members of the San Francisco school board earlier this year. His other donations (ID 499292) include $21,000 for state assembly races, $12,500 for senate races and he has contributed $800,000 (96% of the PAC’s income) to California Educators, Parents and Students for High-Quality Education (ID 1442251). That PAC sent $540,000 to a Mesa, Arizona Foundation called Students First. The rest of this contribution went to campaign consultants and services.

William E Bloomfield Jr. (ID 494345) is an extremely wealthy business man and native Angelino. He is very involved in politics and sees himself as an education reformer. This cycle he has poured more than $1,800,000 into neoliberal education reform friendly candidates. That includes $1,610,000 into the local Los Angeles PAC, Kids First, Supporting Kelly Gonez and Nick Melvoin for Re-election to the LAUSD School Board 2022.

Doris Fisher (Gap Founder ID 1221980) joined Reed Hastings (Netflix CEO ID 499251) and James Walton (Walmart Heir ID 1372611) in sending the Charter Public Schools PAC (ID 1302433) $3,700,000. That PAC is administered by the California Charter Schools Association (CCSA). Charter Public Schools PAC put $1,200,000 into Families and Teachers United as well as donating to several key school board candidates including $375,000 to Kate Dao.

Dao is running for a seat on the Alameda County School Board (Oakland). Her qualifications seem to be that she founded a private school in Livermore, California called Acton Academy East Bay. Before her private school venture, she did marketing for tech startups. The state department of education shows her school opening in fall 2019 and closing on July 1, 2022. Fisher’s Champions for Education PAC (ID 1422949) also sent Dao $20,000.

Three billionaires, Fisher, Hastings and Walton all invested heavily in legislative races. Fisher put $48,000 into assembly seats and $10,000 into senate seats. Hastings put $81,250 into assembly seats and $13,300 into senate seats. Walton who is from Arkansas put $96,700 into assembly seats and $12,100 into senate seats.

CCSA sponsors the PAC Families and Teachers United (ID 1367043). This PAC is mainly funded by the Charter Public School PAC. Families and teachers concentrates its campaign giving on getting preferred state legislative officials elected. Table 1 gives the details for how they distributed $1,429,000.

There is a group on the far right called Fix California. They sponsor a PAC called Education Savings Account (ID 1442249). The PAC has taken in $270,000 and spent $243,000 promoting a petition to authorize school vouchers. They were unsuccessful this year.

Another PAC, Californians for School Choice Foundation (ID 1440327) has taken in $467,000 to promote school choice including vouchers. They spent over $468,000 over the last two years on media and campaign consultants to promote school choice.

Several LA Labor Unions Seem to Support the Neoliberal Agenda

Lily Geismer’s book Left Behind the Democrat’s Failed Attempt to Solve Inequality documents the rise of the Democratic Leadership Council, Bill Clinton and the neoliberal agenda. She observed, “Labor Officials and the rank and file both had strong objections with Clinton’s position on free trade and were well aware of the New Democrats’ long-standing hostility toward unions” (Page 133). So it is astonishing to see labor joining with billionaire neoliberals to support the privatization of public education.

With over 300,000 members the California Teacher Association was not a union spending with the billionaires to privatize public education. Through their PAC, California Teachers Association/Association for Better Citizenship (ID 741941) they donated $301,000 to the LA independent expenditure committee Students, Parents and Educators in Support of Rivas for School Board 2022.  

Professor Rocio Rivas is also enthusiastically supported for the board seat by Diane Ravitch and the Network for Public Education (NPE). NPE which shares,

“Rocio Rivas worked as a teacher assistant during her undergraduate years at U.C. Berkeley.  This work inspired her to seek a career in education. She attended Teachers College, Columbia University where earned a Masters and Doctorate in Comparative and International Education. Rocio has traveled to many countries (Chile, Argentina and Republic of Georgia) conducting educational research. She also participated in research studies as an analyst for LAUSD, where she authored reports on a range of critical issues including academic achievement, culturally relevant education, and charter school renewals.”

Unfortunately, 300,000 teachers giving small donations are easily outspent by one billionaire. But surprisingly the lions share of the big money going to her pro-charter school opponent, Maria Brenes, is coming from the Service Employees International Union (SEIU) local 99. Form 57s filed with the Los Angeles City Ethics Commission show the three Independent Expenditure committees local 99 sponsors are spending more than $7,500,000 to elect the neoliberal candidates. This is spending directed at privatizing public education.

SEIU local 99 is not the only union spending with the billionaires. With no limit on independent expenditure, direct contributions to candidates have less value than they used to but are a source of money that candidates control themselves. The campaign spending limit for this race is $1,300 but it can be given in both the primary and general election. Table 3 shows direct contribution spending by local LA unions. It is all going to the billionaire supported candidates.

Observation

In 1916, President Woodrow Wilson appointed Kentuckian Louis Brandeis to the Supreme Court. His confirmation made him the first Jewish Associate Justice to serve. He entered Harvard University at age 19 and in 1877 he graduated with the highest grades ever recorded there. His nomination was opposed by anti-Semites but more importantly big business was intensely opposed to him. Peter Dreier explained, “As a ‘people’s lawyer’ in Boston, Brandeis fought railroad monopolies, defended workplace and labor laws, and helped create policies to limit corporate abuses of consumers and workers–an approach that is now called ‘public interest’ law.” On the court, he became a great defender of privacy and democracy.

Looking at this year’s election spending, Brandeis’s 1922 statement about democracy and wealth leaps to mind, “We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both.”

True to Brandeis’s declaration, democracy is being sundered by great wealth and unsurprisingly that wealth is being directed at undermining its most important foundation, the public school system. Every time I see pricey color campaign advertisements printed on expensive paper stocks, I ask myself who is paying for this and why? They are completely useless as a source of information.

We have entered an era in which reliable information is becoming more and more obscured by deliberate obfuscation paid for by billionaires. At the same time, some labor leaders appear to have a personal agenda other than serving their members. It is scandalous for SEIU local 99 to invest millions into the election of three billionaire endorsed school board candidates supporting school privatization.

This year democracy and free public education are on the ballot. Vote wisely.

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The City Fund uses Oligarch Money to Privatize Public Schools

22 Apr

By Thomas Ultican 4/22/2022

Born in 2018, The City Fund (TCF) is a concentration of oligarch wealth crushing democracy and privatizing the commons. John Arnold (infamous ENRON energy trader) and Reed Hastings (Netflix CEO and former California Charter Schools Association board member) claimed to be investing $100 million each to establish TCF. Their July 2018 announcement was delivered on Neerav Kingsland’s blog “Relinquishment” which recently started requiring approval to access.

The TCF goal is to implement the portfolio school management model into 40 cities by 2028. At present TCF says it is “serving” 14 cities: Oakland, Ca; Stockton, Ca; Denver, Co; Camden, NJ; Washington, DC: Memphis, Tenn; Nashville, Tenn; New Orleans, La; Indianapolis, Ind.; Atlanta, Ga; Fort Worth, Tx; San Antoino, Tx; Baton Rouge, La; and Newark, NJ.

The operating structure of the fund is modeled after a law firm. Six of the fourteen founding members are lawyers.  They constitute the core of the team being paid to execute the oligarch financed attack on public education.

The Strategy

In 2017, Diane Ravitch posted observations from Dr. Jim Scheurich and his team in the Urban Education Studies doctoral program at the University of Indiana Purdue University Indianapolis (UIPUI). They identified several key strategies being used to end public schools:

  1. Convince the public that business is the best model for running schools.
  2. Develop a huge infusion of new dollars for school board elections. (Dark Money)
  3. Establish unified enrollment for public schools and charter schools.
  4. Undermine teacher professionalism with Teach for America (TFA) or any instant-teacher-certification program and take control of teacher professional development.
  5. Implement Innovations Schools which are an ALEC sponsored method for removing schools from elected school board control.
  6. Develop a funding conduit for national and local wealthy individuals and organizations to support local privatization initiatives.
  7. Co-locate charter schools with public schools using rules that favor charter schools.
  8. Develop a network of local organizations or affiliates that collaborate on the agenda.
  9. Support gentrification.

TCF has spent heavily to develop a local ground game in the communities of targeted cities. On their web site, they provide a list of major grants made by 12/31/2019; defining major grants as being more than $200,000. Many of these grants are to other privatization focused organizations like TFA and Chiefs for Change, but most of them are for developing local organizations like the $5,500,000 to Opportunity Trust in Saint Louis another TFA related business. The TFA developed asset, founder and CEO Eric Scroggins, worked in various leadership positions at TFA for 14 years. Table-1 below lists this nationwide spending.

In many ways, The Mind Trust in Indianapolis, Indiana was the model for this kind of development. A 2016 article from the Progressive Policy Institute (PPI) which is quite school privatization friendly covers its development from the 2006 founding by Democratic Mayor Bart Peterson and his right hand man David Harris until 2016. PPI noted,

“The Mind Trust convinced Teach For America (TFA), The New Teacher Project (now TNTP), and Stand for Children to come to Indianapolis, in part by raising money for them. Since then TFA has brought in more than 500 teachers and 39 school leaders (the latter through its Indianapolis Principal Fellowship); TNTP’s Indianapolis Teaching Fellows Program has trained 498 teachers; and Stand for Children has worked to engage the community, to educate parents about school reform, and to spearhead fundraising for school board candidates.”

The Mind Trust became a successful example of implementing all of the important strategies for privatizing public schools. As a result, the Indianapolis Public School system is the second most privatized system in America with over 60% of its students attending schools no longer controlled by the elected school board.

Stand for Children which the PPI referenced is almost entirely about funneling dark money into local school board races. These nationwide efforts are now being bolstered by the political action organization staffers at TCF created, Public School Allies. Public School Allies was founded as a 501 C4 organization meaning it can contribute to politicians; however contributions to it are not tax exempt.

Billionaire funded organizations like Public School Allies can overwhelm local elections. For example, in 2019 they provided $80,000 to the independent expenditure committee Campaign for Great Camden Schools. In the first school board election since the 2013 state takeover of Camden’s public schools, the three oligarch supported candidates won with vote totals of 1208, 1283 and 1455 votes.

Gary Borden was the Executive Director of the California Charter School Association 501 C4 organization before he became a Partner at TCF. Now he is the director of Public School Allies.

A TCF Partner sits on the board of many of the local political organizations they fund. Kevin Huffman is on the board of The Memphis Education Fund and Atlanta’s RedefinED. Partner Ken Bubp is on the board of New Schools for Baton Rouge. Gary Borden is on the board of The Mind Trust. He replaced David Harris who appears to have resigned from TCF. Harris was also on the board of San Antonio’s City Education Partners. Unfortunately, their new web page no longer lists the board members.

The Misguided and Self-serving Oligarch Philosophy

In 1990, Ronald Reagan’s view that government is inept and that private business with its associated market-based forces were superior dominated libertarian and neoliberal thinking. That year two conservative academics, John Chubb and Terry Moe published Politics, Markets, and America’s Schools in which they asserted that poor academic performance was “one of the prices Americans pay for choosing to exercise direct democratic control over their schools.” In other words, democratic governance is unfit.

At a convening of like minded organizations in San Francisco, TCF co-founder Reed Hastings made it clear that he favors schools governed by non-profit organizations as opposed to elected school boards. He had been espousing this position for at least five years. In other words, the oligarch believes like Moe and Chubb that democracy is bad and privatization is good.

Modern “school choice” ideology promoted by many white billionaires is little different from the strategies of southern segregationist in the 1950s and 60s. It still increases segregation and creates an “inherently unequal” and racist education system.

In 2009, the Center for Reinventing Public Education (CRPE) published “Portfolio School Districts for Big Cities: An Interim Report.” Lead author Paul Hill and his associates stated,

“The report introduces the idea of a ‘portfolio school district,’ and shows how some leading school districts have put the idea into practice. A portfolio district is built for continuous improvement through expansion and imitation of the highest-performing schools, closure and replacement of the lowest-performing, and constant search for new ideas.”

It is an organized idea for managing the charter schools, innovation schools, public schools and voucher schools that make up the mix of schools in a district. Using standardized testing as a proxy for measuring quality, some percentage (5%) of the lowest performing schools will be closed every year. Invariably, the closed school will be replaced by a privatized structure outside of the purview of an elected school board. Also, because standardized testing only correlates with family wealth, the schools in the poorest communities will be privatized and subject to constant churn.

This is the management philosophy that TCF is spending abundantly to institute.

To sell this idea, they have contracted with the Center for Research on Education Outcomes (CREDO). It is part of the Hoover Institute on Stanford’s campus in Palo Alto, California. CREDO has gained some level of discredit for producing non-peer reviewed reports that employ ideas that are not embraced by the research community such as “days of learning.” The latest study is called the City Study Project and compares charter schools and public schools in the TCF “service” cities.

The study is 100% based on standardized testing which is useless and it employs pro-charter school biases. Business writer Andre Gabor noted that their method starts with two assumptions, “A) That standardized-test scores are an adequate measure of school quality and B) that creaming in charter-schools does not exist.” A quick check of special education and language learner enrollment data quickly shows how extensive charter creaming actually is.

In addition, not only is their “virtual twining” model criticized by researchers like Professor Andrew Maul of UC Santa-Barbara, their selection method eliminates students from top performing public schools which biases the study further toward charter schools.

Even with these biases, to make it look like the hundredths of a standard deviation favoring charter schools over virtual public schools is meaningful, they reduce the arithmetically contrived vertical axis to expand the minimal differences. They also further exaggerate the differences by adding a “days of learning” axis. See the following image taken from the City Study Project.

Something Funny about the Money

In December 2018, Matt Barnum of Chalkbeat quoted Neerav Kingsland’s claim that TCF had raised $189 million. However, TCF’s two existing tax documents which go through June 30, 2019 report less than $81 million in received money. It also appears that the Oligarchs are reporting significantly more dollars given than TCF has reported receiving.

The Ballmer group was created by Steve Ballmer and his wife Connie. There are no tax documents available for them, but their web page reports committing $25 million to TCF to be provided over a five-year period. The Silicon Valley Community Foundation is a donor directed site that hides the donor’s identity. It is known that Reed Hastings has put large amounts of money into that foundation so it is a good bet that money listed as SV Community Foundation in Table 2 is from Hastings.

Some Conclusions

The giant quantities of money concentrated in such few hands are destroying democracy. How is a citizen of an impoverished neighborhood who is opposed to having her public schools privatized going to politically compete with oligarchs from San Francisco or Seattle or Bentonville? Organizations like Public School Allies regularly come in and monetarily swamp any political opposition. That is not democracy.

I am convinced that John Arnold who is opposed to people receiving pensions sincerely believes charter schools are better than public schools. Likewise his partner, Reed Hastings, truly believes that elected school boards are bad. And Alice Walton really does think that vouchers are a good idea. However, I believe they are wrong and that the idea of offloading some of their tax burden is much more important to their beliefs than they will admit.

Witnessing the oligarch fueled attacks on the commons; I am convinced that billionaires need to be taxed out of existence if we are to have a healthy democracy of the people, by the people and for the people.

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Schools Closings Creating Community Uproar in Oakland

1 Feb

By Thomas Ultican 2/1/2022

Alameda County has designated Oakland Unified School District (OUSD) with a “lack of going concern” label. Translation: They are going broke and must follow orders to save their district. However, many Oakland citizens are not ready to genuflect; leaving school board members in a trap. Twenty years of billionaires financing attacks on Oakland’s public school system has created a toxic political environment.

In October 2021, the OUSD board voted to end its policy of permanently closing schools every year. On November 8th – less than 2 weeks later – Alameda County Office of Education (ACOE) Superintendent L. Karen Monroe sent a memo approving the OUSD 2021-22 budget but included a “lack of going concern” designation. The memo also demanded school closures resume and $90 million dollars in budget cuts be made by January 31. Monroe also assigned the Fiscal Crisis and Management Assistance Team (FCMAT) to direct fiscal management, noting “the school district shall follow the recommendations of the team.”

The county claimed seven financial issues: (1) decline in enrollment not budgeted; (2) unrecorded health care liabilities; (3) structural deficits; (4) multiyear projection not reliable; (5) one time funding use not sustainable; (6) past board did not make necessary budget adjustments; and (7) forgoing $10 million in AB 1480 funding.

OUSD refuted all of these charges noting: (1) the district’s COVID enrollment declines were less than most districts; (2) health care liabilities were a onetime charge and not significant; (3) the structural deficits cited are quite small and the board agrees all one time funded positions will need to be ended; (4) acknowledges the need to address the positions funded by one-time sources; (5) November 3, 2021 the board explicitly voted that all positions funded with one-time funds will not carry over to the following fiscal year; (6) this is a new board confronted with a clear, manageable challenge it agrees to resolve and (7) the choice to forgo $10 million instead of closing schools was accounted for in the district’s budget.

The District leadership believes not one of these claims by the county can legitimately be considered a basis for the “lack of going concern” designation.  OUSD district-5 Director Mike Hutchinson asserts, “Karen Monroe for five years has had oversight over every budget, and she approved the budgets.” Hutchinson also claims that the district has been working closely with the county and is in better fiscal shape than it has been in years. He asks, “What is new, besides the district’s decision not to close more schools?”

Twenty years ago, the state took over OUSD claiming a financial crisis which has led directly to OUSD becoming the most privatized public school system in California. Then like now, the Bakersfield non-profit FCMAT was brought in to supervise. The state went on to appoint a series of administrators to run the district. The new administrators welcomed charter schools and closed public schools. Concern that this could happen again might explain why three board members have changed their positions on closing schools and are placating Karen Monroe.

Schools proposed to be closed or merged between 2022 and 2024: Prescott, Brookfield, Carl Munck, Parker (K-5), Parker (6-8), Grass Valley, Horace Mann, Korematsu, RISE, Manzanita Community, Westlake, La Escuelita grades 6-8, Ralph J. Bunche, Dewey Academy, Community Day School, Manzanita Community School, Hillcrest grades 6-8.

The Billionaire Created Conundrum

The map of charter schools in Oakland and proposed school closings shows that both are all in the minority dominated flats (the low lying area between the bay and the hills). With all of these closings, residents in the flats may no longer have a traditional public school serving their community.    

Much of this can be laid at the door step of the six billionaire “education reformers” living across the bay – Reed Hastings (Netflix), Arthur Rock (Intel), Carrie Walton Penner (Walmart), Laurene Powell Jobs (Apple), Mark Zuckerberg (Facebook) and Doris Fisher (The Gap).

Reed Hastings established America’s first charter management organization (CMO) in Oakland. There are now six Aspire charter schools serving Oakland families.

Arthur Rock, Doris Fisher and Carrie Walton Penner have been investing in Teach For America (TFA) and charter school growth in Oakland. Mark Zuckerberg and Laurene Powell Jobs have been pushing education technology as well as TFA and charter schools.

Along with these billionaires, New Yorker Michael Bloomberg and Tulsa billionaire Stacey Schusterman have joined in the spending to sway Oakland’s school board elections.

Oakland’s own T. Gary Rogers established a foundation before he died that continues to be central to the local school privatization agenda. It significantly supports and directs privatization efforts by GO public education and Education78. The City Fund created by Reed Hastings and John (Enron) Arnold recently gave GO and Education78 a total of $5 million (EIN 82-4938743).

This brief outline of the money being spent to privatize schools in Oakland would be woefully incomplete if Eli Broad was not mentioned. Although his direct spending to advance privatization in Oakland has been relatively modest, the four Superintendents and many administrative staff members that he trained and got placed in Oakland are central to OUSD being the most privatized district in California. A key training manual developed at the Broad Center was the “School Closure Guide.”

“Black Hole Mike” Hutchinson observed,

“A lot of these policies were first tried out in Oakland. If you go back and look at the Eli Broad handbook on school closures, a lot of the source information that they used for that report is from Oakland.”

The billionaire spending has resulted in 39 charter schools operating in Oakland today. Nine were authorized by the county, one by the state of California and 29 by OUSD. Using data from the California Department of Education, it can be shown that 31% of the publicly supported k-12 students in Oakland attend privatized charter schools.

It is disturbing that 22 of the 39 schools have a student body made up by more than 90% Hispanic and Black students. Overall 67% of Oakland’s charter school children are Hispanic or Black but only 50% of the residents of Oakland are Hispanic or Black. The privatization agenda has driven school segregation in Oakland to new heights.

The other divisive agenda is gentrification. Ken Epstein is a longtime observer of OUSD and a bay area pundit. He observed,

“Many school advocates view these school closures as a land grab of public property by privatizers. Others see this is a way to force Black and Latino families out of Oakland, making education inaccessible for them by closing the schools in the neighborhoods where they live.”

If a well financed developer could gain control of the flats, the profit possibilities are immense. These concerns are further fed when OUSD board President Gary Yee tells a Skyline High School parent that the school should be closed because the property is too valuable to be used for public education.

Is Closing Schools in the Flats the Only Possible Solution?

In an email to board members, Jane Nylund an OUSD alum, a teacher and high school student parent with a long family history in Oakland stated,

“For 2018, I counted 14 positions at $200K+, including benefits. In 2020, OUSD had 47 admin positions at $200K+ including benefits (Transparent California). And in 2019, many of them got 10% raises, all inclusive, around $20-30K each. While it’s true that other large districts have a lot of admin, OUSD has one of highest paid administrations compared to the rest of the state, at 526% of the state average. It still has its consultants at 325% of the state average. Collectively, those salaries went from around $3M to $10.7M in two years.”

Based on the claims in the OUSD administrations school closing presentation, the salary increases Jane highlights total to a million dollars greater than the projected cost savings from the closures and those are disputed.

VanCedric Williams is a school board Director representing OUSD district-3. In a private email former OUSD teacher Steven Miller reported on a community meeting attended by Williams,

“VanCedrick Williams repeatedly pointed out that OUSD has not looked at any other possible solution than closing more schools. He also notes that there is no real plan, just a stampede to close more schools.”

The OUSD board believed they could afford to keep all their schools open in October. Then L. Karen Monroe from the Alameda County Office of Education threatened them. She is in a position to cause havoc in Oakland. That seems to have intimidated some board members who are now ready to ignore equity for residents of the flats. The case for mass school closings is not well founded. Rather, the evidence suggests market based ideology and gentrification are trumping justice.

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Saint Louis School Board Stalls Privatization Agenda

24 Aug

By Thomas Ultican 8/24/2021

The August 19th headline in the Saint-Louis Post Dispatch reported a new plan “sparks school board outrage.”The board accused Better Futures STL of trying to usurp its role. Better Futures soon cancelled the launch of its new program and Superintendent Kelvin Adams apologized for not sharing the extent of his involvement in a plan described as “a new St. Louis education blueprint that serves all children.”

The Post Dispatch went on to outline Better Futures as being started in April by Opportunity Trust, Education Equity Center of St. Louis, Forward Through Ferguson, WePower and others. Fenton, a pricey New York public relations firm, stated that Better Futures was developing a “community-designed plan over the next 12 months to reimagine an equitable K-12 public education system.” Superintendent Adams and Mayor Tishaura O. Jones are both on the new organization’s advisory council.

Kelvin Adams Involvement Not a Surprise

In a magnificent article about the history and demise of public schools in St. Louis, Jeff Bryant detailed the neoliberal philosophy driving the city’s leadership. The hiring of Kelvin Adams was a result.

Mayor Francis Slay served four terms starting in 2001. He brought in Teach for America (TFA) and championed charter schools. When circumstances beyond the school district’s control led to a large deficit, Slay successfully recruited and financed a new slate of school board members in 2003.

Within a month of taking office, the school board voted to hire Alvarez & Marsal (A&M), the corporate turnaround consultants to run the district. A&M had never worked in a school system before. Former Brookes Brothers CEO William V. Roberti became the de facto superintendent of schools. The results were a disaster. District financing became so untenable that the state took over.

To solve the mess in Saint Louis, the state turned to the New Orleans Recovery School District and hired Paul Vallas’s chief of staff, Kelvin Adams. At the time, Peter Downs, president of the elected school board, called Adams unacceptable. However, Adams’ thirteen-year tenure is attributable to his popularity among Saint Louis’s neoliberal embracing business and political leadership.

School Privatization

In 1981, Rex Sinquefield and David Booth a fellow MBA student at the University of Chicago formed the California based financial firm Dimensional Fund Advisor (DFA). Today the company oversees more than $350 billion in global assets. DFA pioneered index fund investing.

In 2005, Rex and his business partner wife Jeanne returned to Missouri ending his absence of more than 40 years. Since returning he has become a major force in Republican politics and has demonstrated a thorough disrespect for public education. Rex claimed,

‘“There was a published column by a man named Ralph Voss who was a former judge in Missouri,’ Sinquefield continued, in response to a question about ending teacher tenure. [Voss] said, ‘A long time ago, decades ago, the Ku Klux Klan got together and said how can we really hurt the African-American children permanently? How can we ruin their lives? And what they designed was the public school system.’”

Sinquefield was a major reason Josh Hawley was elected to the US Senate. Rex also spent $2.5 million trying to get Missouri’s income tax replaced with a sales tax and spent another $1.6 million attempting to have teachers evaluated using testing.

He has consistently championed lower regressive taxes and market based solutions.

On July 31, 2018, Neerav Kingsland, the founder of New Schools for New Orleans, announced on his blog that billionaires John Arnold and Reed Hastings had pleged $100 million each to start The City Fund. Kingsland is the new Fund’s Managing Partner.

In addition to the non-profit, they have also created an associated political action organization called Public School Allies. In 2019, Allies sent $20,000 to Saint Louis’s Civil PAC.

City Fund has spent large amounts of money developing local organizations to promote implementation of the portfolio model of public education management. The portfolio model directs closing schools that score in the bottom 5% on standardized testing and reopening them as charter schools or Innovation schools. In either case, the local community loses their right to hold elected leaders accountable, because the schools are removed from the school board’s portfolio.

The Opportunity Trust is their partner in St. Louis. City Fund has made a three year $5.5 million grant to the Trust. Opportunity is also a TFA related business. Founder and CEO, Eric Scroggins, worked in various leadership positions at TFA for 14 years starting as a TFA corps member in 2001-3.

The 2017 Opportunity Trust founding board consisted of John Kemper, Diane Tavenner, Maxine Clark and Eric Scroggins. (See 2017 tax form 990 – EIN 82-1838644)

Diane Tavenner is the founder and CEO of Summit Public Schools, a charter management organization that serves schools in California and Washington State. Tavenner is a former board member of the California Charter Schools Association (CCSA) and currently serves on the CCSA member’s council.

In 2018, John W. Kemper succeeded his father David Kemper as President and CEO of Commerce Bancshares Inc. Biz journal noted,

‘“He will be a good steward. Cities need good banks to take care of the community, and Commerce is a well run company,’ said cousin and friendly rival Mariner Kemper, chairman of UMB Bank, Missouri’s second largest, with $20.6 billion in assets.”  

Kemper also sits on several local boards including KIPP St Louis.

Maxine Clark is the daughter of Eleanor Roosevelt’s traveling secretary. She was President of Payless Shoes before founding Build-A-Bear Workshop which grew to over 400 mall based stores. Clark retired as CEO in 2013. Since leaving Build-A-Bear, she and her husband have concentrated on civic endeavors. Ladue News reports,

“Among their biggest successes is the launching of the KIPP (Knowledge Is Power Program) Charter Schools in St. Louis. There are two elementary KIPP schools and two middle schools, and this fall, KIPP St. Louis High School will welcome its first freshman class. As a public charter school, KIPP St. Louis High School will operate like a private college prep school.”

Clark calls her latest project “Delmar Devine.” It is a play on the local term “Delmar Divide,” for the line of demarcation separating predominantly white St. Louis from the North Side, where the population is nearly all African-American. She is using Housing and Urban Development money to remodel the 1904 built St. Luke’s Hospital into a mixed use facility with apartments and office space. Many of the new tenants are part of the segrenomics business selling education services to urban poor. They include: Teach for America, The Opportunity Trust, IFF, Education Equity Center of St. Louis, KIPP St. Louis and Navigate STL Schools.

Business elites like Maxine Clark and politicians like Mayor Tishaura O. Jones are making a terrible error in judgment. The public school system is the backbone of communities and the foundation of democracy. Furthermore, unbiased research shows that public schools consistently outperform either private schools or charter schools.

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Why Tax Billionaires Out of Existence

22 Apr

By Thomas Ultican 4/22/2021

Twenty years of studying education policy, politics and practices has been awakening. Seeing billionaires inflict their often misguided and unpopular beliefs on our nation’s public schools has made it clear how undemocratic and dangerous extreme wealth is. They have established voucher programs routinely sending taxpayer money to religious schools even though these programs have lost decisively whenever submitted to voters. In her book Slaying Goliath, Diane Ravitch labeled these 0.1% of Americans as disrupters. She asked and answered the question “what do disrupters want?” They want:

  • Inexperienced teachers with little or no training from organizations like Teach For America.
  • To replace teachers with machine teaching (“blended learning” – “personalized learning”).
  • To move fast and break things including school systems, historic schools and communities.
  • To eliminate local democratic control over schools.
  • To eliminate teacher tenure and seniority rights.
  • To eliminate teacher defined benefit pensions.
  • To eliminate teachers unions.
  • To evaluate teachers and schools with standardized test scores.
  • To lower taxes and reduce spending on education.

Controlling the Political Process

In 2018, the Network for Public Education (NPE) produced a masterful report detailing how school board elections are being stolen from local residents. In the introduction to “Hijacked by Billionaires: How the Super Rich Buy Elections to Undermine Public Schools,” the authors state, “This report provides some insight into how the very wealthy insert themselves into local elections through direct contributions, Independent Expenditure Committees and even non-profit organizations.”

The Billionaires Cited in “Hijacked by Billionaires”

In my post-election analysis of three elections, “School Board Elections 2020: The Good, The Bad and The Ugly,” I show that billionaires Alice Walton of Bentonville, Arkasas, Michael Bloomberg of New York, New York and Stacy Schusterman of Tulsa, Oklahoma poured hundreds of thousands of dollars into the school board races in Oakland, California and Indianapolis, Indiana.

In that same election, the spending in Los Angeles and for California state offices was enormous. Through a combination of direct contributions and political action committees, seven billionaires put more than $14,000,000 into the 2020 election. The bulk of it went into the Los Angeles school board election with over $1,000,000 going to state assembly and senate races plus more than $1,000,000 went into five county board of education elections.

The Path of Billionaire Spending in California’s 2020 General Election

Similar election spending went on in New Orleans, Camden and many other jurisdictions mainly through Public School Allies the political arm of the City Fund founded by billionaires John Arnold and Reed Hastings.

In 2014, SFGATE reported, “Netflix CEO Reed Hastings, who suggests that democratically elected school boards are the problem with public education, says they should be replaced by privately held corporations.” Hastings said out loud a belief held among many of his anti-democracy peers.

Creating an Alternate Teacher Training Path

In their effort to privatize public education, billionaires have created alternate paths for teacher credentialing and professional development.

Mercedes Schneider writes in her book Chronicle of Echoes, “Wendy Kopp declared that she had a force of young, predominantly-Ivy League idealists for sale, and Big Money arrived on the scene to make the purchase.” Wendy Kopp is the founder of Teach For America (TFA) and the young idealists for sale were her “temp teachers” who have no intention of staying in the classroom. In 2011, the Walton Family Foundation donated $49.5 million to TFA. Many corporate donors also sent TFA $100,000 to $999,000: “Anheuser-Busch, ATT, Bank of America, Blue Cross/Blue Shield, Boeing, Cargill Chesapeake Energy, Chevron, Emerson, Entergy, ExxonMobil, Fedex, Fidelity Investment, GE, Marathon Oil, Monsanto, Peabody, Prudential, State Farm, Symantec, Travelers, Wells Fargo.”

These unqualified “temp teachers” have not studied teaching and they have no experience. A new teacher coming through a traditional program has taken many education courses and spent a year working with a master teacher as a supervised student teacher. TFA teachers typically have no education courses in college and get just five-weeks of classroom training in the summer.

TNTP is one of several organizations that only exist because billionaires have financed them. Wendy Kopp founded TNTP (originally called The New Teachers Project) in 1997. She assigned Michelle Rhee, who had completed a two year TFA tour, to lead it. Along with TNTP and TFA there are also the Broad Superintendents Academy and the fake school for professional educators called Relay Graduate School instilling the billionaire inspired privatization mindset.

Selling Technology and School Choice

With their enormous wealth, billionaires have poured more than $200,000,000 into organizations like New School Venture Fund to sell edtech and school choice; also funding think tanks (CREDO and CRPE) to provide a veneer of academic credibility.

To advance these sales they have created their own education media empire with The Education Post and The-74 as their flagships. Bill Gates has spent lavishly on publications like EdWeek turning them from a teacher resource into an edtech promoting outlet.

“An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” —Plutarch (c. 46–120 ce)

In 2017, Bill Moyers wrote,

“The top 1 percent owns more than 30 percent of America’s wealth. The poorest half owns just 2.5 percent. Wall Street bonuses alone are twice the amount of all the combined earnings of minimum-wage workers in this country. We are grotesquely, bizarrely, grossly unequal — unequal in cash, health care, schooling and access to clean air and water. Unequal in our access to power. And we are becoming more unequal by the year: Since Ronald Reagan became president, the income of the wealthiest 1 percent of Americans has doubled.”

As Louis Brandeis famously stated, “We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both.”

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School Board Elections 2020: The Good, The Bad and The Ugly

12 Nov

By Thomas Ultican 11/12/2020

Los Angeles, Oakland and Indianapolis are routinely targeted by pro-public school privatization billionaires. Local school board races that a decade ago required less than $10,000 in order to mount a credible campaign now require ten times that amount. Billionaires again spent lavishly to take control of school boards in these three cities.

The Good

For two decades Oakland has been California’s petri dish for school privatization. Eli Broad has placed four superintendents in Oakland Unified School District (OUSD). Mayor Jerry Brown between terms in the Governor’s mansion helped establish the first charter schools in Oakland. Reed Hastings and “Doowop” Don Shalvey created one of the first ever charter management organizations (Aspire Charter Schools) in Oakland. The billionaire funded and pro-school privatization organizations New Schools Venture Fund, Educate78 and GO Public education are all headquartered in Oakland.

The general election on November 3 had four odd numbered district director positions on the ballot. The Oakland school board has seven seats. In an attempt to place school privatization friendly directors on the board, three out of town billionaires poured $625,000 into the Power2Families independent expenditure committee.

The former New York Mayor and Presidential candidate, Michael Bloomberg, also sent $300,000 to the GO Public School’s independent expenditure committee Families and Educators for Public Education in addition to the $400,000 he gave Power2Families.

For this board of education election there were six independent expenditure committees (IEC) operating.

  • Four pro-charter schools IECs:
    • Families and Educators for Public Education (GO Public Schools)
    • Charter Public Schools PAC (California Charter Schools Association)
    • Power2Families (founded by charter chain founder, Hae-Sin Thomas)
    • Committee for California (founded by Jerry and Anne Gust Brown) 
  • Two pro-public schools IECs:
    • Oakland Education Association Political Action Committee (Teacher Union)
    • Oakland Rising Committee sponsored by (Movement Strategy Center Action Fund a Local Grassroots Political Organizing Group )  

Jan Malvin, a retired UCSF researcher, created the following election spending graphic.

The chart shows that in terms of spending from direct contributions which have maximum contributions limits, the pro-public school candidates had a $48,000 advantage. In the unregulated independent expenditure spending, the pro-charter school PACs had a $580,000 spending advantage.

Campaign Flyer from the OEA

It turned out that the Oakland community was ready to fight back and win. In fact, “Mike ‘The Students Voice’ Hutchinson” achieved a clear victory over “Michael ‘The Billionaire” Bloomberg.”

The vote counting appears close to being done. However, Oakland employs Ranked Choice Voting (RCV) instead of a primary system. Voters rank candidates in their order of preference. When the votes are counted, if no one gains 50% of the vote, the candidate with the least votes is eliminated. Their votes are distributed based on rankings. This process continues until the winner passes 50% of the vote.

An unofficial RCV run shows that the leaders in the following vote count will be elected.

The Oakland community fought back against the billionaires’ spending advantage. They raised money, contacted neighbors and won a decisive victory by taking the seats in districts 1, 3 and 5. In district-7, they lost but achieved more votes, but were divided on who to support. When the new board is seated, it will have a clear pro-public school supporting majority.

The Bad

In March of 2017, the Los Angeles Unified School District (LAUSD) board election became the most expensive of its kind in history. Billionaire financed pro-school privatization organizations poured in almost $10 million to capture a majority on the board; which they did.

A special election was held in 2019 to replace the criminally malfeasant district-5 board member, Ref Rodriguez. Jackie Goldberg’s election swung the four person majority on the board back to the pro-public school side.

Rodriquez had hung onto his seat long enough to be the deciding vote making billionaire Eli Broad’s business partner, investment banker Austin Beutner, Superintendent of Schools. It was a curious hire because Beutner had no education training or experience.

Since superintendents work for the elected board, it is surprising if a superintendent of a public school district takes a position in a school board race. This year Beutner ignored that norm. He forwarded tweets supporting the campaigns of Marilyn Koziatek in district-3 and Tanya Ortiz Franklin in district-7. Beutner claims the tweets were not sent by him.

For the 2020 election cycle, the four odd numbered seats of the board were on the ballot. The three even numbered seats will be on the ballot in 2022. The seats up for election this year was comprised of the four vote majority on the board supporting public schools.

It was an opportunity for the billionaires to swing the board majority back in their favor and they did not let the chance slip away.

This LittleSis Map Documents Billionaire Education Spending in 2020

The three PACs mapped in yellow appear to be the main conduit for billionaire money going to independent expenditures this year. The wealthy real estate developer from Manhattan Beach, California, William E. Bloomfield, is pouring his money directly into private campaign companies normally hired by the PACs to produce their media and campaign mailings. The Campaign Company Group shown above is a fictitious company showing the total funding Bloomfield has spent with seven different companies to produce campaign materials for candidates he supports or opposes.

During the March primary election both District-1 Board Member George McKenna and District-5 Board Member Jackie Goldberg ended their campaigns for reelection by receiving more than 50% of the vote thus winning the seat. That left just districts 3 and 7 to be determined in the general election.

In district-7, incumbent Richard Vladovic was term limited from running. Teacher’s union favorite Patricia Castellanos faced off against the charter industry supported Tanya Ortiz Franklin. The district-3 race was between incumbent Scott Schmerelson and Granada Hills Charter High School employee Marilyn Koziatek.

There were four main independent expenditure groups active in the school board general election:

Pro-School Privatization

  • Families and Teachers United, Sponsored by California Charter School Association
  • Kids First, Established by Benjamin B. Austin
  • William E. Bloomfield, Is an Independent Expenditures Committee of One

Pro-Public Schools

  • Students, Parents and Educators, Sponsored by Teacher’s Unions

The table above shows almost $12 million dollars in independent expenditures spent to sway the election with nearly $10 million promoting school privatization. In the district-3 race, $3,586,443.03 was spent to defeat Scott Schmerelson and in the district-7 race, a whopping $6,387,455.15 went to ensure Franklin topped Castellanos.

The big spending Kids First PAC was established by Benjamin B. Austin who has a long history as a public school “destructor.” He worked as a Deputy Mayor to Mayor Antonio Villaraigosa, he was appointed to the California State Board of Education by Governor Arnold Schwarzenegger, he founded the Parent Revolution and wrote the Parent Trigger Law. Now he is bundling money to undermine democratic elections.

In district-3, Schmerelson who has 40 years of experience as a board member, teacher and school administrator had to fight hard and endure horrible slanders to defeat a charter school employee who has never taught and whose only school related work is in public relations.  In district-7, the massive spending to elect Tanya Ortiz Franklin worked. It gave billionaires a district majority for at least the next two years.

The Ugly

The local Indianapolis PBS station WFYI reported, “Reform Candidates Sweep IPS School Board Race In Expensive, Contentious Campaign.” They continued, “The four winners in the Indianapolis Public Schools Board of Commissioners election will tilt the board firmly into support for the charter-friendly reforms ongoing at the state’s largest school district.”

When putative Democrat Bart Peterson was Mayor of Indianapolis, he led the beginnings of privatizing public schools there. He and his administrations school advisor, David Harris, founded The Mind Trust with major funding from local philanthropies including the Lilly Endowment. Lilly has gifted the organization more than $22 million in the last seven years and given lavishly to local charter schools. Indianapolis is now the second most privatized school system in America; second only to the New Orleans 100% privatized system.

The election results makes it certain that the privatization trend will continue. Bart Peterson is back with a new political action group dedicated to advancing his school privatization cause. Peterson’s new group is Hoosiers for Great Public Schools. This year there were five political action committees operating in Indianapolis.

Pro-Public Education

  • I-Pace – The Indiana Teachers Union PAC

Pro-School Privatization

  • Stand for Children Indy
  • Rise Indy
  • Hoosiers for Great Public Schools
  • Indy Chamber

The pro-privatization groups got a big assist from Billionaires Alice Walton ($200,000) and Michael Bloomberg ($100,000). They ended up with a ten to one spending advantage.

With their great financial advantage and a raging virus limiting door to door campaigning, the election was not close.

It truly is an ugly day for Indianapolis. Already more than 60% of the publicly financed schools are either charter schools or innovation schools. In either case, the elected school board has no control over their operations. They are run by private entities. This election insured that Indianapolis will continue on the course toward ending public education.

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California Plutocrat Education Election Spending

20 Sep

By Thomas Ultican 9/20/2020

Unlike 2018, fewer of the wealthy class appear to be spending so freely to control California school policy, but their spending still dominates campaign spending. Large amounts of money are being spent in an attempt to regain political control of the Los Angeles Unified School District (LAUSD) and there appears to be a concentration of money directed at key county school boards. They are also spending liberally on California state senate and assembly races.

Little Sis Map of Plutocrat Spending for Independent Expenditures

In this election cycle, the three PACs mapped in yellow appear to be the main conduit for billionaire money going to independent expenditures. These expenditures are unlimited as long as no coordination can be shown with a candidate’s campaign. The wealthy real estate developer from Manhattan Beach, California, William E. Bloomfield is pouring his money directly into private campaign companies normally hired by the PACs to produce their media and campaign mailings. The Campaign Company Group shown above is a fictitious company showing the total funding Bloomfield has spent with seven different companies to produce campaign materials for candidates he supports or opposes.

The Battle for LA

LAUSD is by far the largest school district in California and nationally it is second in size only to the New York City School District. Since the introduction of charter schools in the 1990s, LAUSD has become approximately 20% privatized. There are more charter schools in Los Angeles than any other city in the country. Political control of the LAUSD is seen as key to either slowing the privatization train or accelerating it.

In 2020, the four odd numbered LAUSD board seats were up for election. Since the charter school industry already has three board members not up for reelection, they only need to flip one seat to regain control of the board. In 2019, they lost control of the board when Jackie Goldberg received 71.6% of the vote in a special election to replace district 5 board member Ref Rodriquez who pled guilty to conspiracy charges.

During the March primary election both District 1 Board Member George McKenna and District 5 Board Member Jackie Goldberg ended their campaigns for reelection by receiving more than 50% of the vote thus winning the seat. In district 7, incumbent Richard Vladovic was term limited from running. Teacher’s union favorite Patricia Castellanos and the charter industry supported Tanya Ortiz Franklin were the two top vote getters in the primary. They will face off in the general election for the district 7 seat.

The most contentious school board race is between district 3 incumbent Scott Schmerelson and Granada Hills Charter High School employee Marilyn Koziatek. During the primary race, LA Times reporter Howard Blume opened an article writing, “A million-dollar attack campaign is underway portraying Los Angeles school board member Scott Schmerelson as greedy, corrupt and determined to score fast cash by exposing children to deadly vaping and McDonald’s French fries.”

Alex Caputo-Pearl, Teachers Union President, said the ads were an “attempt to eviscerate Scott, a lifelong educator and champion of our public schools…. Scott’s likeness is literally made into a caricature, with clear anti-Semitic overtones.” Scott Schmerelson would hardly be the first Jew in Los Angeles to face anti-Semitism. 

Schmerelson finished his educator career as principal for 10-years at Johnnie L. Cochran, Jr. Middle School in South Los Angeles. He is also a former leader in the Association of California School Administrators.

Schmerelson probably became a more important target for the forces working to privatize public education when he vocally opposed investment banker Austin Beutner as the next Superintendent of LAUSD. He said he wanted a school chief with education experience.

Marilyn Koziatek’s campaign web address says,

“Marilyn is the only candidate who currently works in a public school. She leads the community outreach department for Granada Hills Charter, one of the highest-performing public schools in California.”

First of all, charter schools are not public schools. They are private businesses with a contract to provide services to the government. The public has no democratic influence over them. Secondly, Koziatek has never taught. She does PR for a private company selling education services which pales in comparison to her opponents almost 4 decades working in classrooms and leading schools.

The LA times reported in 2003, “The Los Angeles Board of Education voted Tuesday to convert Granada Hills High School, which has among the best academic records in the school district, into an independent charter school.” (Emphasis added) The article also noted, “Board President Caprice Young hailed the vote as a victory for the charter movement.”

There is a rumor that Koziatek was forced into running by the highly paid Executive Director of Granada Hills Charter, Brian Bauer. The charter’s last tax form 990 (EIN 05-0570400) listed Bauer’s 2017 salary as $271,287. He is also on the board of the California Charter Schools Association.

The independent expenditures for Marilyn Koziatek and opposing Scott Schmerelson by the organization Families and Teachers United is sponsored by the California Charter Schools Association. The Students, Parents and Teachers group supporting Scott Schmerelson and Patricia Castellanos is sponsored by the LA Unified Teachers Union.

In District 7, two Latinas are facing off, Patricia Castellanos and Tanya Ortiz Franklin. Neither candidate appears to have deep experience in education. Franklin taught elementary school for five years and worked part time at Antonio Villaraigosa’s Partnership for Los Angeles Schools while she attended law school. Castellanos was a community organizer and works as the Workforce and Economic Development Deputy for LA County Supervisor Sheila Kuehl.

In direct campaign contributions, as of 9/14/2020 Castellanos had almost a two to one advantage in contributors 581 to 347 and a money advantage of $206,562 to $95,146. Franklin has a large advantage from independent expenditures with Bill Bloomfield’s $3,327,483 to Castellanos $767,551 from the teachers union founded Student, Parents and Teachers.

In a way, the contest for school board seat 7 is between 27,000 LAUSD teachers and an extremely rich man from Manhattan Beach.

Last month, former assistant US Secretary of Education Diane Ravitch posted, “Los Angeles: Vote for Scott Schmerelson and Patricia Castellanos for LAUSD School Board.” She asks if LAUSD will be controlled “by cabal of billionaires who favor privatization by charter schools,” or by parents of the 80% of students who attend public schools?

Spending Directed at the California State Legislature

Campaign data was accessed from the California Secretary of State between September 14 and 17. Total spending for the California State Assembly and State Senate candidates was tabulated for the three PACs and seven plutocrats in the map above. The data is presented in Tables 2 and 3. All 80 Assembly seats are up for election as are the twenty odd numbered Senate seats.

A reasonable analysis of the spending pattern indicates that candidates for State Assembly receiving $5,000 or more are being supported to drive the school privatization agenda. Candidates receiving more than $10,000 probably fall into the category of being heavily influenced and those receiving more than $20,000 are owned.

The candidates receiving less than $5,000 are likely getting those donations to insure they answer the phone and listen.

The spending in the Senate mirrors the spending in the Assembly and the analysis is similar with the exception of the even number candidates. Those candidates who are not on the ballot must be supporting the plutocrat agenda as equally as the candidates receiving more than $10,000.

Kevin Kiley ran for senate seat 1 and lost in the primary. His $30,200 dollars came from 6 plutocrats and EdVoice for the Kids. For the general election EdVoice has sent Brian Dahle, the incumbent who beat Kiley, $1500. Maybe Dahle will not be inclined to answer the phone.

Jim Walton skewed a little from the public school privatization agenda to make 24 direct contributions to republicans running for the California state legislature.

Billionaires Spending on Key County School Board Races

A significant amount of the spending by the three PACs shown in the Little Sis map above was concentrated into the race for five county school boards. The largest amounts were directed toward Alameda, Orange and Riverside counties. Table 4 details the spending.

Some Conclusions

Former Supreme Court Justice Louis Brandeis said, “We can either have democracy in this country or we can have great wealth concentrated in the hands of a few, but we can’t have both.”

On the other hand Abraham Lincoln is quoted as saying, “You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.”

Obviously, democracy is compromised when seven plutocrats have the resources to skew election results in their direction. In this election two of the seven identified plutocrats are from Bentonville, Arkansas not California. However, it is becoming harder and harder to convince people to continue privatizing their public schools, to continue wasting money on standardized testing and to continue cutting taxes for plutocrats.

There is some good news. Fewer plutocrats are supporting the privatization agenda than in 2017 and 2018.  In 2017, billionaires spent more than $10,000,000 dollars to swing the LAUSD election and the following year they spent more the $40,000,000 dollars trying to elect Marshall Tuck as Superintendent of Public Instruction. This year the spending is not as intense or as widely distributed.

Residents of Alameda, Orange, Riverside, Sacramento and San Joaquin counties can use Table 4 to identify who to vote against. Residents in the Los Angeles Unified School District can follow Diane Ravitch’s advice and vote for Scott Schmerelson in district 3 and Patricia Castellanos in district 7.  

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School Choice is a Harmful Fraud

7 Sep

By Thomas Ultican 9/7/2020

Birthed in the bowels of the 1950’s segregationist south, school choice has never been about improving education. It is about white supremacy, profiting off taxpayers, cutting taxes, selling market based solutions and financing religion. School choice ideology has a long dark history of dealing significant harm to public education.

Market Based Ideology

Milton Friedman first recommended school vouchers in a 1955 essay. In 2006, he was asked by a conservative group of legislators what he envisioned back then. PRWatch reports that he said, “It had nothing whatsoever to do with helping ‘indigent’ children; no, he explained to thunderous applause, vouchers were all about ‘abolishing the public school system.”’ [Emphasis added]

Market based ideologues are convinced that business is the superior model for school management. Starting with the infamous Regan era polemic, “A Nation at Risk,” the claim that “private business management is superior” has been a consistent theory of education reform promoted by corporate leaders like IBM’s Louis Gerstner, Microsoft’s Bill Gates, Wal-Mart’s Walton family, Bloomberg LP’s founder, Michael Bloomberg and SunAmerica’s Eli Broad. It is a central tenet of both neoliberal and libertarian philosophy.

Charles Koch and his late brother David have spent lavishly promoting their libertarian beliefs. Inspired by Friedman’s doyen, Austrian Economist Friedrich Hayek, the brothers agreed that public education must be abolished.

To this and other ends like defeating climate change legislation, the Kochs created the American Legislative Exchange Council (ALEC). This lobbying organization has contributing members from throughout corporate America. ALEC writes model legislation and financially supports state politicians who promote their libertarian principles.

Like the Walton family and Betsy DeVos, Charles Koch promotes private school vouchers.

What is the main motive behind the mega-rich spending to undermine public education? Professor Maurice Cunningham of the University of Massachusetts claims what they really want are “lower state and local taxes.”

John Arnold is the billionaire Enron trader who did not go to prison when that company collapsed. He has joined forces with the billionaire CEO of Netflix, Reed Hastings, to sell the nation on the portfolio model of school management.  To achieve their goal, they created The City Fund. After its founding in 2018, Bill Gates, Michael Dell and Steve Ballmer all made significant contributions.

In brief, the portfolio model directs closing schools that score in the bottom 5% on standardized testing and reopening them as charter schools or Innovation schools. In either case, they will no longer come under the purview of an elected school board.

Because standardized testing only reliably correlates with family wealth, this system guarantees that schools in poor communities will all eventually be privatized.

In 2014, SFGATE reported, “Netflix CEO Reed Hastings, who suggests that democratically elected school boards are the problem with public education, says they should be replaced by privately held corporations.”

When it came to privatizing schools, vouchers were a tough sell. Jeffry Henig of Teachers College noted to writer Jeff Bryant, “The Walton foundation itself was one of the early organizations to transition from vouchers to charters.” In an AlterNet article Bryant explained,

“Henig believes many conservatives view charter schools as a way to “soften the ground” for potentially more private options, though he isn’t entirely sure “the Waltons view charters as a Trojan Horse for eventually providing vouchers universally.’”

John Walton read “A Nation at Risk” and that set off his hyper focus on reforming public education. Throughout the 1990s he campaigned endlessly for new voucher legislation and saw his efforts repeatedly rebuffed. Shortly before his death in 2005, John joined Don Fisher and Buzz Woolley in establishing the Charter School Growth fund. Around the same time the Walton Family Foundation began financing charter school startups in communities across America.

No matter how stinking the thinking, a billionaires beliefs have influence. The billionaire led push to privatize public education is based on at least four completely bogus ideas:

1 – “A Nation at Risk” was a misguided fraud but it is still the motivating prime point for corporate driven education “reform.” Former New York Times Education writer, Richard Rothstein states,

“A Nation at Risk based its analysis of declining student achievement entirely on average SAT scores which had dropped by about half a standard deviation from 1963 to 1980. But much of the decline had been due to the changing composition of SAT test takers — in the early 1960s, the preponderance of SAT test takers were high school students planning to apply to the most selective colleges. By 1983, the demographic composition of SAT test takers had mostly stabilized, and average SAT scores were again rising, not declining.”

2 – The growing belief among wealthy elites that elected school boards are the problem is ridiculous. Saying democracy is a discredited way to run publicly financed organizations and elected boards should be replaced by privately run businesses is UN-American.

3 – Market based ideologues religiously believe in Adam Smith’s invisible hand. They are sure comparative school performance will provide families with improving schools that are striving to win the market. These proponents trust that this system will efficiently remove low-performing schools. A 2015 paper notes,

“This idealized theory assumes that all consumers are equally desirable customers for which providers will compete …  just because parents can voice a choice in the system does not mean they will get the choice they want. In New Orleans, the most desirable schools choose their students to a substantial extent.”

4 – Our present Secretary of Education is emblematic of people who believe it is terrible that public schools have replaced churches as the center of community life. Betsy and Dick DeVos have been using their Amway generated wealth to tear down the separation between church and state. They believe the public should provide vouchers to private religious schools and they promote home schooling.

Choice Drives Segregation by Race and Class

It is well known that integrated schools are beneficial for all races and classes and for the social development of society. Professor Peter Piazza’s “School Diversity Notebook” provides a short summary of the research validating this statement.

Data does not inform the decisions to segregate schooling. As Professor Piazza states, “Decisions to segregate are made in the gut or maybe (sadly) in the heart, but not in the head.”

A Matt Barnum article about school integration discusses what happened:

‘“School integration didn’t fail,’ Berkeley economist Rucker Johnson, who has conducted some of the most far-reaching research on school integration, recently argued. ‘The only failure is that we stopped pursuing it and allowed the reign of segregation to return.”’

Adding more perspective, Sonya Ramsey wrote “The Troubled History of American Education after the Brown Decision” for the American Historian. It is made available by the Library of Congress. In that paper she reported,

“From 1954 to the late 1980s, the rate of black children attending white schools rose tremendously in the South, from 0 percent in 1954, to 43.5 percent by 1988, only declining after the dismantling of court ordered desegregation plans to 23.2 in 2011. The South remains the least segregated area of the nation. The current resegregation of the public school are due more to the declining support for desegregation by local districts, the federal government, and the Supreme Court. In 2007 Chief Justice John G. Roberts Jr. stated the following in his majority opinion in two court cases that used race in determining transfer policies and school plans to foster desegregation: “The way to stop race discrimination on the basis of race is to stop discriminating on the basis of race.” [17] This decision turned a blind eye to decades of racial discrimination in public schools and struck a deathblow to Brown. The federal government’s focus on assessment testing in the 1980s also placed less emphasis on enforcing desegregation.” [Note 17: https://www.nytimes.com/2007/06/29/washington/29scotus.html]

Today’s school choice advocates precisely echo the language and schemes created by southern segregationists in the 1950s.

Last year three researchers – Julian Vasquez Heilig from the University of Kentucky, T. Jameson Brewer from the University of North Georgia and Yohuru Williams from the University of St. Thomas – collaborated on a study of the segregating effects of charter schools. Their paper clearly documents that charter schools are accelerating resegregation. 

In the literature search section of the study, they reported that the conservative oriented “American Enterprise Institute (AEI) conducted a study of the entire universe of charter schools in the United States concluding that parents were self-segregating along racial and class lines but that such segregation was simply a result of a ‘well-functioning education market.”’ [Emphasis added]

The researchers concluded that “Many of the nation’s charters can even be classified as “apartheid schools”—a term coined by UCLA Professor Gary Orfield for schools with a White student enrollment of 1 percent or less.” And “double segregation by race and class is higher in charter schools” than in public schools.

A personal 2019 study of Washington DC charter schools revealed that 64 of the 116 charter schools would be classified “apartheid schools” using Professor Orfield’s definition.

For their study, Heilig at al accessed the Common Core of Data (CCD) – the Department of Education’s primary database on public elementary and secondary education in the United States. This data was brought together with census and zip code data to reveal related school site and community demographic data.

A common defense of charter schools is that they purposely serve highly segregated communities. However, the researchers discovered “even when comparing schools that are located near each other—that charter schools are more segregated than nearby public schools.”

The paper contained six tables revealing the magnitude of segregation comparing charter schools with public schools. The following is Table 4 from the study that details growing charter school segregation in major cities.

Overall, the intensity of charter school segregation in America’s major cities is shocking. However, the city with the most charter schools, Los Angeles, looks relatively OK. This is a bit of an illusion because many of the charter schools in that city serve racially isolated white students.

In February, Anji Williams published “How Charter Schools in Hollywood Uphold the Racist Tradition of Redlining Segregation.” In Hollywood, the public middle school, La Conte, is almost 100% free and reduced lunch while the co-located Citizens of the World Charter School is more than 60% middle class.

The School Choice Advantage

For the Catholic Church and Evangelical Christians like Betsy DeVos, publicly provided vouchers for private religious schools opens a path to taxpayer support for their religious organizations. It is lamentable for their cause that every recent large scale study of vouchers have shown that students perform worse when they transfer to voucher schools.

For the Walton family, John Arnold and Charles Koch, school choice grants a path to undermining public education and lowering taxes. However, “when considering the extant literature on school performance comparisons, the minority of charter schools, at best, provide minimal academic benefits whereas the majority underperform public schools.” Worse yet, charter schools are unstable with half of them going out of business within 15 years.  

For Bill Gates, Reed Hastings and Michael Dell, school choice prepares a path for creating an education technology industry that has the promise of huge future profits. Unfortunately for them, digital learning has proven to have serious limitations. The Organization for Economic Co-operation and Development (OECD) said in a 2015 report that heavy users of computers in the classroom “do a lot worse in most learning outcomes.”

For the white supremacist, school choice presents a path for not having their children attending school with “those people.” The data shows it clearly works for their purposes.

For the mission of public education and the future of America, school choice is an atrocious policy.

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Infamous John Deasy Resigned under Suspicious Circumstances Again

29 Jul

By Thomas Ultican 7/29/2020

April 21, the Stockton Unified School District (SUSD) board accepted John Deasy’s letter of resignation effective June 15, 2020. His quitting mid-contract marked the third straight superintendent position he ended in a similar fashion. All three time, the resignation came with ethical charges and legal suspicions.

Stockton, California, was a gold rush town established in 1849. Situated 75 miles down the San Joaquin River from the Golden Gate Bridge at the north end of the San Joaquin valley, it is the farthest inland deep water port in California. Several waterfront scenes for the movie “On the Waterfront” were shot there.

Brando on the Waterfront

Brando “On the Waterfront” in Stockton 1954

Stockton is a small city of about 315,000 people and one of America’s most diverse. The demographic makeup is 42.1% Hispanic, 21.6% Asian, 20.8% White and 11.8 % Black. The city has a more than a 20% poverty rate; however, SUSD reports that 82% of their students live in poverty. The district enrolls 40,000 students into 54 schools.

Why Deasy resigned is not clear. Upon his resignation the 209 Times reported,

“Controversial superintendent John Deasy is out of Stockton Unified School District effective June 15th after agreeing to resign tonight amidst an investigation sources tell us into his actions and possible conflict of interests regarding a contract between board trustee Lange Luntao and the organization he is director of on behalf of Mayor Michael Tubbs, Reinvent Stockton Foundation.”

Bob Highfill of Record Net observed that there has been a 4-3 split on the school board for some time, which was reflected in the 4-3 decision to accept Deasy’s resignation. Board member Scot McBrian said that until this year he had been happy with Deasy’s work.

However, recently Deasy pushed for a $2 million waiver of development fees for a low-income housing project within the district. The reduction in fees to the school district was part of a project being pushed by Stockton Mayor Tubbs. When he did not get the required votes, an angered Deasy reworded the proposal and submitted it again. It was voted down again 4-3.

McBrian also mentioned problematic issues with the unions, the addition of six charter schools and a simultaneous roll-out of English and math curricula objected to by a number of teachers. Controversies surrounding the superintendent were mounting at the time of his resignation.

A 209 Times investigative article delved into the push to privatize public schools in Stockton and the three board member allies Deasy had helping him:

    1. “SUSD Trustee AngelAnne Flores is a current employee of Aspire Charter Schools in Stockton, and is part of a public alliance and voting block along with Lange Luntao and Candelaria Vargas. 
    2. “Lange Luntao is not only the best friend of Mayor Michael Tubbs …, but also simultaneously an SUSD Trustee and the Executive Director of Reinvent Stockton Foundation which is also the “Stockton Schools Initiative” and “Stockton Scholarship”. The Reinvent Stockton Foundation also has a contract with SUSD to farm data of students as well as promote their “stockton scholarships” scheme. 
    3. “Candelaria Vargas, is married to Max Vargas who is the personal assistant for Mayor Tubbs who endorsed and pushed for all three of these Trustees to be elected.

“All three of these SUSD Trustees are not only part of the “Reinvent” network, but are also members of an organization called School Board Partners that are seeking to push a Wall Street inspired “Portfolio” model of big corporate charter schools under the guise of “reform”, in “urban” cities across America including Stockton.”

In 2018, when billionaires John Arnold and Reed Hastings put up $100 million each to found The City Fund, other organizations they support were repurposed. Education Cities was divided into two new school choice promoting organizations, the above mentioned School Board Partners and Community Engagement Partners.

“DoWopDon” Don Shalvey (twitter handle @doWopDon), who joined with Netflix CEO Reed Hastings to found Aspire Charter Schools in 1998, has been working to enhance charter school penetration in Stockton. Today, Aspire is one of three charter schools looking to expand in Stockton. Shalvey left his post as the Gates Foundation Deputy Director of Education Programs, to lead the A+ non-profit organization in Stockton supporting Charter School growth.

As part of their investigation, the 209 Times reviewed and published emails between Shalvey, Deasy and others. They concluded, “What was hidden from the SUSD Board Members was the intimate relationship and secret communications the Superintendent had with Mr. Shalvey and his associates, which led to the fast-tracking of 6 Charter School petitions in SUSD, which were all amazingly approved via Consent Agenda – eliminating any discussion or input from the public.”

Deasy and Tubbs

John Deasy and the Mayor Providing Local Political Support

Mayor Michael Tubbs, a youthful African-American politician, was extremely angered by Deasy’s departure and blamed the four member faction that opposes his personal agenda. Tubbs stated,

“Given the gravity of the circumstances, there should be a serious discussion about whether Mendez and McBrian should be recalled, which I would be in favor of. I’ve heard from community members that are interested in considering a recall and I would be in 100% in favor of that. Our kids deserve nothing less than the best.”

There is a recall the school board effort underway in Stockton.

The obvious question is does Mayor Tubbs realize he has adopted the education agenda of US Secretary of Education Betsy DeVos, the very conservative Walton Family Foundation and the ultra-conservative libertarian mogul Charles Koch? Does Tubbs understand that he has embraced education policies Cornell’s Professor of African-American studies, Noliwe Rooks, derisively labels “segrenomics”; the profiting from selling education to segregated poor communities?

A Legacy of Controversy and Ethical Issues

In 2004, reporter Juliet McShannon writing for the Lookout News in Santa Monica, California noted, “Controversy seems to follow John Deasy.” At the time he had been leading Santa Monica Unified School district for almost three years.

Deasy came to Santa Monica after a five year stint as Superintendent of Coventry School District in Rhode Island. At the relatively small district of 6000 students, Deasy obtained one of the first small school development grants given out by the Bill and Melinda Gates Foundation. He also made national news when he launched a “pay for performance” initiative with Coventry teachers.

Standardized testing became his main metric for evaluating teachers, and he terminated the contracts of a number of teachers who did not meet his expectations.

In April 2001, Deasy abruptly resigned from Coventry effective June 1 to take the superintendent’s job in Santa Monica. He left behind financial problems and a small district that did not have time to find a new leader for the 2001-02 school year.

In 2006, Deasy graduated from Eli Broad’s superintendent’s training academy, which trains its candidates in a market-based data driven methodology. Billionaire Eli Broad is well known for his determination to privatize public education.

Deasy left Santa Monica to become superintendent of the very large Prince George’s County Schools in Maryland, the largest majority African-American county in the United States. This would be the first of three straight superintendents’ positions he would resign under suspicious circumstances.

When he arrived in Maryland, Deasy immediately started promoting charter schools and a teacher “pay for performance” agenda.

There was buzz in the area. Baltimore had Andres Alonzo firing teachers and closing schools and just a few miles the other way Michelle Rhee was promising to “fix” Washington DC’s schools by firing teachers and principals. These three superintendents were given the undeserved label “reformers.” It has become clear that they were just “disrupters.”

After two years on the job in Maryland, Deasy resigned.

That October 2008, the Baltimore Sun’s Liz Bowie speculated, “John Deasy is denying there’s any connection, but many people in the education community will continue to wonder whether the Prince George’s County superintendent would be moving on if there hadn’t been a dust-up in the past several weeks over how he got his doctoral degree.”

Bowie reported that “Deasy had been awarded a doctorate in philosophy from the University of Lousville in 2004 although he had only completed nine credits, or about a semester, there.” She also noted that Deasy had given his advisor, Robert Felner, a $125,000 contract from Santa Monica Unified and that Felner’s group received a total $375,000.

On September 29, 2008, a press release stated “The Bill & Melinda Gates Foundation announced today that Dr. John E. Deasy has been named deputy director of its education division within its United States Program.”

Two years later, with a big push from Eli Broad and the LA Mayor he politically supported, Antonio Villaraigosa, Deasy was hired as Deputy Superintendent of Los Angeles Unified School District (LAUSD). In January, 2011, he was named Superintendent.

At the time, other billionaire groups were also spending to influence the district. The LA-based Wasserman Foundation gave a $4.4 million grant, another $1.2 million came from the Walton Family Foundation, and smaller grants came from the Ford and Hewlett foundations to pay the salaries of more than a dozen key senior staffers in the district.

The staffers were working to advance the market-based data driven school reform agenda, charter schools, testing and competition.

Controversy came to LAUSD soon after Deasy took charge. When he walked into a classroom at Washington Preparatory High School being led by substitute teacher Patrena Shankling, he got into a dispute with her over the quality of the lesson plan and fired her on the spot. When a school teacher was implicated in an ugly sex scandal at Miramonte Elementary school, Deasy removed the entire staff from janitor to principal completely ignoring due process but gaining tough-guy headlines.

Deasy pushed charter school expansion and implementation of education technology. Two technology agendas appear to have led to his demise as Superintendent. He rolled out a completely incompetent student digital data system. It failed at scheduling students for classes, recording attendance and inputting grades; it was a disaster. But his I-pad fiasco was worse because it brought legal charges and an investigation by the FBI.

There were many things wrong with the $1.3 billion plan to put I-pads in the hands of every student but the suspicion that the bidding had been rigged put Deasy in legal jeopardy. Emails showed that he had been in negotiations with Apple and curriculum provider Pearson before any competitive bidding process started.

Interim Superintendent Ramon Corzine noted the bidding process had been plagued by “too many innuendoes [and] rumors.”

Deasy resigned before the legal investigation by the FBI and LA County District attorney got under way. This time the Broad Academy stepped in to hire him as “superintendent-in-residence.” That was in 2015.

In 2018, Deasy was off to be Superintendent in Stockton, resigning this year with ethical and legal malfeasance charges mounting.

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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.

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