Selling Out Our Schools

Selling Schools Out - A Viewpoint.

By Lee Fang Posted on November 17, 2011, Printed on January 9, 2012 . An excellent piece.here: Selling Schools Out | Corporate Accountability | The Investigative Fund

Excerpts.

If the national movement to "reform" public education through vouchers, charters and privatization has a laboratory, it is Florida. It was one of the first states to undertake a program of "virtual schools" — charters operated online, with teachers instructing students over the Internet — as well as one of the first to use vouchers to channel taxpayer money to charter schools run by for-profits.

But as recently as last year, the radical change envisioned by school reformers still seemed far off, even there. With some of the movement's cherished ideas on the table, Florida Republicans, once known for championing extreme education laws, seemed to recoil from the fight. SB 2262, a bill to allow the creation of private virtual charters, vastly expanding the Florida Virtual School program, languished and died in committee. Charlie Crist, then the Republican governor, vetoed a bill to eliminate teacher tenure. The move, seen as a political offering to the teachers unions, disheartened privatization reform advocates. At one point, the GOP's budget proposal even suggested a cut for state aid going to virtual school programs

Lamenting this series of defeats, Patricia Levesque, a top adviser to former Governor Jeb Bush, spoke to fellow reformers at a retreat in October 2010. Levesque noted that reform efforts had failed because the opposition had time to organize. Next year, Levesque advised, reformers should "spread" the unions thin "by playing offense" with decoy legislation. Levesque said she planned to sponsor a series of statewide reforms, like allowing taxpayer dollars to go to religious schools by overturning the so-called Blaine Amendment, "even if it doesn't pass…to keep them busy on that front." She also advised paycheck protection, a unionbusting scheme, as well as a state-provided insurance program to encourage teachers to leave the union and a transparency law to force teachers unions to show additional information to the public. Needling the labor unions with all these bills, Levesque said, allows certain charter bills to fly "under the radar."

Good for Business; Kids Not So Much

While most education reform advocates cloak their goals in the rhetoric of "putting children first," the conceit was less evident at a conference in Scottsdale, Arizona, earlier this year.

Standing at the lectern of Arizona State University's SkySong conference center in April, investment banker Michael Moe exuded confidence as he kicked off his second annual confab of education startup companies and venture capitalists. A press packet cited reports that rapid changes in education could unlock "immense potential for entrepreneurs." "This education issue," Moe declared, "there's not a bigger problem or bigger opportunity in my estimation."

Moe has worked for almost fifteen years at converting the K-12 education system into a cash cow for Wall Street. A veteran of Lehman Brothers and Merrill Lynch, he now leads an investment group that specializes in raising money for businesses looking to tap into more than $1 trillion in taxpayer money spent annually on primary education. His consortium of wealth management and consulting firms, called Global Silicon Valley Partners, helped K12 Inc. go public and has advised a number of other education companies in finding capital.

Moe's conference marked a watershed moment in school privatization. His first "Education Innovation Summit," held last year, attracted about 370 people and fifty-five presenting companies. This year, his conference hosted more than 560 people and 100 companies, and featured luminaries like former DC Mayor Adrian Fenty and former New York City schools chancellor Joel Klein, now an education executive at News Corporation, a recent high-powered entrant into the for-profit education field. Klein is just one of many former school officials to cash out. Fenty now consults for Rosetta Stone, a language company seeking to expand into the growing K-12 market.

As Moe ticked through the various reasons education is the next big "undercapitalized" sector of the economy, like healthcare in the 1990s, he also read through a list of notable venture investment firms that recently completed deals relating to the education-technology sector, including Sequoia and Benchmark Capital. Kleiner Perkins, a major venture capital firm and one of the first to back Amazon.com and Google, is now investing in education technology, Moe noted….

Sponsors of the event ranged from various education reform groups funded by hedge-fund managers, like the nonprofit Education Reform Now, to ABS Capital, a private equity firm with a stake in education-technology companies like Teachscape. At smaller breakout sessions, education enterprises made their pitches to potential investors…

Moe isn't the only member of the Center for Education Reform with a profound conflict of interest. CER president Jeanne Allen doubles as the head of TAC Public Affairs, a government relations firm that has represented several top education for-profits. Allen, whose clients have included Kaplan Education and Charter Schools USA, served as transition adviser to Pennsylvania Governor Tom Corbett on education reform.

Corbett, a Republican who rode the Tea Party election wave in 2010, supports a major voucher expansion that is working its way through the state legislature. The expansion would be a windfall for companies like K12 Inc., which currently operates one Pennsylvania school under the limited charter law on the books. According to disclosures reported in Business Week, Pennsylvania's Agora Cyber Charter School — K12 Inc.'s online school, which allows students to take all their courses at home using a computer — generated $31.6 million for K12 Inc. in the past academic year…

The frenzy to privatize America's K-12 education system, under the banner of high-tech progress and cost-saving efficiency, speaks to the stunning success of a public relations and lobbying campaign by industry, particularly tech companies. Because of their campaign spending, education-tech interests are major players in elections.

Allies of the Right

Lobbyists for virtual school companies have also embedded themselves in the conservative infrastructure. The International Association for Online Learning (iNACOL), the trade association for EdisonLearning, Connections Academy, K12 Inc., American Virtual Academy, Apex Learning and other leading virtual education companies, is a case in point.

Two pivotal conservative organizations have helped Patrick in her campaigns for virtual schools: the American Legislative Exchange Council and the State Policy Network. SPN nurtures and establishes state-based policy and communication nonprofits with a right-wing bent. ALEC, the thirty-eight-year-old conservative nonprofit, similarly coordinates a fifty-state strategy for right-wing policy.

Bush: Man Behind the Virtual Curtain

Jeb Bush campaigned vigorously in 2010 to expand such reforms, with tremendous success. ..The nonprofit behind this digital push, Bush's Foundation for Excellence in Education, is funded by online learning companies: K12 Inc., Pearson (which recently bought Connections Education), Apex Learning (a for-profit online education company launched by Microsoft co-founder Paul Allen), Microsoft and McGraw-Hill Education among others.

An invitation had billed the exclusive gathering as a chance for "philanthropists and venture capitalists" to figure out how to "leverage each other's strengths" — a concise way to describe how for-profit virtual school companies are using philanthropy as a Trojan horse.

This article was reported in partnership with The Investigative Fund at The Nation Institute. Please read the entire excellent article. I have posted excerpts because I do not have permission to post the entire piece.

2012 http://www.theinvestigativefund.org/investigations/corporateaccountability/1580/