In education "there's big money to be made behind the reformy scenes." With taxpayer money.

[madfloridian]

Jersey Jazzman's blog yesterday talked about the endgame in this rush to reform education.

Education "Reform": The Endgame

ultimately we can't understand what's happening in Newark, in New Jersey, and in the rest of the country without asking where this is all going. What are these radical superintendents and state leaders -- trained by Eli Broad, Teach For America, and New Leaders for New Schools, among others -- trying to accomplish? What is the goal for the reformy, self-appointed, corporate foundation-supported education policy mavens? What do the big money donors to the reformy cause -- Gates, the Waltons, Broad, Zuckerberg, Arnold, Tepper & Fournier, Rock, the Koch brothers -- want? What is the endgame?

It's a difficult and complex question, and the data doesn't really give us an answer. The best we can do is speculate, but there's a problem with that: in my opinion, these people are highly self-conflicted when it comes to their goals. I don't believe that Bill Gates really thinks it's OK to see good teachers inadvertently fired because of an innumerate, illogical evaluation system that uses Value-Added Modeling. I don't think Michelle Rhee really wants children and parents wasting time on test prep. I don't think Arne Duncan really believes that children in poverty aren't at a disadvantage when gauging their academic outcomes.

He then says that "The only reason they would do this is that there has to be something in it for them."

1) There's good money to be made in being reformy.

2) There's big money to be made behind the reformy scenes. Down in South Florida, the Zulueta brothers, according to the Miami Herald, control a $115 million real estate empire, financed with public monies, and tax-free because it houses charter schools. Andrew Tisch's K12 Inc. is looking to expand into Newark, managing virtual charters for profit in a market they hope to see expand enormously. Investors are gathering big piles of money to invest in charter school expansion, using new markets tax credits to practically guarantee a return. Charter operators have essentially bought themselves state-level politicians and rewritten the laws to rake in piles of cash for their schools as public districts wither and die. Even the "noble" CMOs have back-channel real estate deals brewing.

I could spend all day providing links to stories like these. Anyone who denies that the "reform" movement isn't abetting a wholesale transfer of public monies and property to private concerns is either corrupt or willingly obtuse.

In another article the blogger points out more about how "back-channel" real estate deals work:

Make Big Money Building Charter Schools: Joe Bruno Shows You How!

Step 3: Charter Operators - Including FOR-PROFIT Operators - Build Facilities On Land They Own

But the Zuluetas’ greatest financial success is largely unseen: Through more than two dozen other companies, the Zuluetas control more than $115 million in South Florida real estate — all exempt from property taxes as public schools — and act as landlords for many of Academica’s signature schools, records show.

These companies collected about $19 million in lease payments last year from charter schools — with nine schools paying rents exceeding 20 percent of their revenue, records show.

Here's the telling part:

Step 4: The Taxpayer Foots the Bill

As "public" schools, the charters in the Doral network receive taxpayer funds for each child they enroll. According to Doral Academy High School's 2012 audit, Academica receives a $450 yearly management fee for each student enrolled. That makes expansion a good deal for Academica: more students, more fees.

I think they also get per-pupil fees in addition to that. Which of course means that money is not going to "real" public schools. This link gives info on that in the section called Funding. I am looking up more on that, as I am pretty sure they get more than the $450 a year per student.

There's more at this link about about Zulueta and his charter schools and influence.

FL's richest charter school company has close ties to state legislators, Bahamian retreats.

I would not care about their luxury retreats if they were not getting public money. That does make me care. From 2011.

They have strong ties to the Florida legislature.

Academica’s achievements have been profitable. The South Miami company receives more than $9 million a year in management fees just from its South Florida charter schools — fees that ultimately come from public tax dollars.

.....On April 15, the board of Doral Academy selected state Sen. Anitere Flores to run a new college proposed by the charter school network. As the college president, Flores will work side by side with Academica, the influential charter school management company that will also manage the college.

....Academica’s owners, Fernando and Ignacio Zulueta, have steered $150,000 in campaign donations to Tallahassee lawmakers and political committees through real-estate companies they control since 2007, state election records show. The Zulueta family has donated a further $75,000 in the past five years, and Academica executives and school contractors donated a further $54,000, records show.

Academica’s closest ally in the capital is in the family: Rep. Erik Fresen, a Miami Republican, is the brother-in-law of Fernando Zulueta, Academica’s CEO. Zulueta is married to Fresen’s sister, Maggie, who also is an Academica executive.

Education for profit, what's best for the students is down the line a bit.

[madfloridian]

1. Another link to FL's funding formula, still not very clear...

about what charter schools get. Last I heard they get about 60 to 70% of what public schools get, but that has probably been changed. I know the last two years that charter schools got 55 million one year and 64 million the next for maintenance and buildings. Public schools got zero.

http://www.democraticunderground.com/10022276120

The funding formula link:

http://www.fundeducationnow.org/education-101/floridas-funding-formula/

Breaking the back of public schools.