ABOLISHING REPRESENTATIVE GOVERNMENT THROUGH EDUCATION: COMON CORE,
CHOICE & CHARTER SCHOOLS
PART 3 of 4
January 13, 2014
The Real Agenda for Charter Schools Please Stand Up!
schools are privately run, but they receive public money and, as already
noted, an increasing number of these schools are being run on a for-profit
basis. The federal government is subsidizing the CREDIT ENHANCEMENT
FOR CHARTER SCHOOL FACILITIES PROGRAM, providing grants to eligible
entities to permit them to enhance the credit of charter schools so
that charter schools can access private-sector and other non-federal
capital in order to acquire, construct, and renovate facilities at a
reasonable cost. The tax code makes charter schools very lucrative.
have proven that where charter schools have proliferated it is more
likely that the public schools have experienced financial stress due
to the transfer of public assets and institutions into the hands of
private corporations. The “New Markets Tax Credit” program
that became law toward the end of the Clinton presidency allow firms
to invest in charters and other projects located in “underserved”
areas, and these schools can collect a generous tax credit
up to 39% to offset their costs. Private investors are
flocking to charter schools. There is a huge risk factor for any local
school district in a state that has passed laws promoting “choice”—especially
with an easy approval process for new charters with no caps
on expansion. “Race to the Top” grants exacerbate
this situation because states promised to drop their caps on charter
schools when they took the money.
public schools soak your local tax base, putting monies into a school
run by for-profit investors. They have an ideal opportunity to collect
a cut of your property taxes. A well-titled article in Forbes, “Charter
School Gravy Train Runs Express To Fat City,” pointedly remarks:
“About the only thing charters do well is limit the influence
of teachers’ unions. And fatten their investors’ portfolios.”
The article explains:
July 25, 2013, dozens of bankers, hedge fund types and private equity
investors gathered in New York to hear about the latest and greatest
opportunities to collect a cut of your property taxes. Of course,
the promotional material for the Capital Roundtable’s conference
on “private equity investing in for-profit education companies”
didn’t put it in such crass terms, but that’s what’s
are frequently a way for politicians to reward their cronies. In Ohio,
two firms operate 9% of the state’s charter schools and are
collecting 38% of the state’s charter school funding increase
In Florida, the
for-profit school industry flooded legislative candidates with $1.8
million in donations last year. “Most of the money,” reports
The Miami Herald, “went to Republicans, whose support
of charter schools, vouchers, online education and private colleges
has put public education dollars in private-sector pockets.”…
is the math, according to a 2010 article by Juan Gonzalez in the New
York Daily News, “that a lender who uses it can almost
double his money in seven years.”
the Capital Roundtable Conference advertisement it states,
2013, and beyond, will see numerous for-profit companies making inroads
into public and non-profit education by taking over large swaths of
the market. Consider—
•The entire education sector now represents nearly 9 percent of the
U.S. GDP. • Merger and acquisition activity in for-profit
education last year surpassed activity at the peak of the Internet boom. • More and more non-profit colleges are hitting
the wall and seeking investors to help them transform into for-profit
institutions." [See Title IV, Higher Education Reauthorization,
Jeb Bush is in the forefront of this push for charter schools with his
Foundation For Excellence in Education. But don't be mislead into thinking
that charter schools are just a Republican thing. Big-city Democrats,
like Philadelphia Democratic Mayor Nutter, currently the president of
the U.S. Conference of Mayors, closed 23 public schools this past summer—replaced
by charters. In 2009, charters were 15% of the District budget. In 2014,
they will be 30% of the District budget. Chicago, of course, is another
leading newspaper, the Star Tribune, recounts the sordid history of
its charter school movement:
charter school movement, which sparked a national rethinking of public
schooling nearly two decades ago, has been infected by an out-of-control
financing system fueled by junk bonds, insider fees and lax oversight.
article in the Star Tribune, "Charter school fails and bondholders
get bailout," tells more of the story:
promoters claim taxpayers will never be forced to cover the costs
of a failed charter school built with state lease-aid funds, that's
exactly what happened in St. Paul.
The deal dates
to 2000, when American Express purchased $8.3 million in bonds used
to convert the old Science Museum of Minnesota into a charter school
called the Minnesota Business Academy. The project also received $1
million in community development funds from the city of St. Paul….
exchange for a hefty 8 percent interest rate, American Express accepted
the risk of default and nonpayment.
In less than
a year, the school was faltering. There were cost overruns and fundraising
shortfalls, and the school was forced to borrow another $1.6 million.
To pay off its
debts, the school needed 440 students, with each student representing
more than $1,000 in annual lease-aid payments. But the plan backfired,
and total enrollment crashed to 292 in 2004.
2005, city officials approved another bond offering that allowed the
school to reorganize its finances. American Express got $6 million,
while the city recovered a total of $451,352. The unsecured creditors
were paid 10 cents on the dollar. "The corporate folks got their
dough,'' said St. Paul City Council Member Lee Helgen, who voted against
the bond issue."(Source)
Tribune reporter Tony Kennedy, published an article in 2011 titled “State
charter schools program is 'out of control,' Junk bonds fuel a building
spree, but schools are more crowded, insiders are taking fees, and state
regulators can't do much about it." His article divulged the following
In the past decade,
18 charter schools have been built with $178 million in junk bonds,
with financing costs on some projects chewing up nearly a quarter
of the funds raised. Twelve more charter schools have taken steps
to buy or build facilities, and the state projects annual spending
on lease aid to reach $54 million in 2013, up from just $1.1 million
To lure the investors
they need for new buildings, some educators are abandoning the intimate
campuses their founders envisioned and are building large schools
that look more like the conventional institutions that some families
are fleeing. Some charter school advocates say the build-your-own
trend could undermine an education movement built on small class size
and parental involvement….
lawmakers are frustrated by the building boom. Since 2000, at least
64 public school buildings in the metro area closed because of declining
enrollment. Charter schools are responsible for recruiting away some
of those students.
flight to charter schools leave districts vulnerable for closure. Moody's
Investors Service issued a report on October 15, 2013 that “Charter
Schools Pose Greatest Credit Challenge to School Districts in Economically
Weak Urban Areas.”
the Moody’s Associate Analyst who co-authored the report [said]
"Districts may face institutional barriers to cutting staff levels,
capital footprints and benefit costs over the short term given the
intricacies of collective bargaining contracts - leaving them with
underutilized buildings and ongoing growth in personnel costs."
can pull students and revenues away from districts faster than the
districts can reduce their costs, says Moody's. As some of these districts
trim costs to balance out declining revenues, cuts in programs and
services will further drive students to seek alternative institutions
including charter schools.
older, urban areas that have experienced population and tax base losses,
creating stress for their local school districts, have also been areas
where charter schools have proliferated," says Moody's. "Among
the cities where over a fifth of the students are enrolled in charter
schools are Cleveland, Detroit, Kansas City, St. Louis, and Washington,
D.C. Nationwide about one in 20 students is in a charter school."
the ramifications all of these statistics. Public schools will close,
locally elected schools boards will be forced out of their positions.
Representative government is diminished. Choice sets up this agenda
and Charter schools are the end product. But meanwhile businesses are
raking in the cash.
News reported that "Goldman to lend $25M for charter schools."
Sachs Group Inc., the most profitable Wall Street firm, will lend $25
million to a nonprofit community-development organization to finance
16 charter schools in New York City and New Jersey.
group, Local Initiatives Support Corp., will make the money available
to the school operators during the next two years, Goldman Sachs and
LISC, both based in New York, said Tuesday in a statement. The chairman
of LISC, according to the group's website, is Robert Rubin, former
U.S. Treasury secretary. [under the Clinton Administration, ed.]
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are nonsectarian, public institutions that operate independently of
local boards of education in the U.S. under special charters. Goldman
Sachs's Urban Investment Group has committed about $150 million for
charter schools in New York and New Jersey, according to the statement.
financing may allow the charter schools involved to obtain as much as
$100 million in additional capital, credit-enhanced by funds awarded
by the U.S. Department of Education. (Source)
was three years ago. For part four click below.
B. Hoge, lecturer, educational researcher, parent.
1990 a federal investigation was completed against the Pennsylvania Department
of Education, after filing a federal complaint against the Educational
Quality Assessment, EQA, & the US Department of Education's National
Assessment of Educational Progress, NAEP, under the Protection of Pupils
Rights Amendment. Forced the Pennsylvania EQA to be withdrawn. Forced
the US Department of Education to do their job to investigate the psychological
testing of children without informed written parental consent. NAEP was
never investigated because the Department said I didn't have standing,
although documents had proven that NAEP did experimental research &
used different states to pilot their agenda by embedding their test questions
into the Pennsylvania EQA as well as other state tests.
& main researcher for the book, Educating for the New World Order.
My story is told about an incredible journey into the devious & deceptive
operations of our government to change the values, attitudes & beliefs
of American children to accept a new world order. The first to document
the expansive data collection operation of our government establishing
micro-records on individual people in the United States. Experimentation,
illegal testing, & data collection is exposed.
all over the Unites States in the 90's about illegal & controversial
testing, curriculum, & collection of data by our government. Arranged
& lectured town hall meetings all across the state of Pennsylvania
to withdraw affective student learning outcomes to stop Outcome Based
Education. In January of 1992, parents in Pennsylvania won the battle
against OBE when the Independent Regulatory Review Board had requested
that the State Board of Education remove all outcomes which dealt with
attitudes, habits, traits, feelings, values, & opinions which are
difficult & subjective to measure & that the remaining outcomes
be defined & coordinated with academic requirements that can be measured.
The battle continues.