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Does anyone have a problem with Venture Capitalists, Charter Schools, and Entrepreneurs all being in the same sentence?  You should.

Yes, the $Billionaires are lining up to invest in Charter Schools and are looking for like-minded entrepreneurs. Nothing new here.  BUT and I mean a BIG BUT.....

It seems like kids are a great commodity to invest in, like pork bellies.  There is a Kid Rush as tech companies and school builders line up for the Charter Gravy Train.

The Charter School Investment Gravy Train began during the Clinton Administration thanks to a new law: New Markets Tax Credit Program

NMTC emerged in the late 1990s, when numerous foundations and think tanks were working to popularize the idea of using business-oriented mechanisms to help disadvantaged communities increase wealth and jobs.

... to open untapped markets through a fostering of “community capitalism.”

participants called for improving access to capital (especially through equity investment)

Vice President Al Gore, in support of the conference conclusions, stated that,

“The greatest untapped markets In the world are right here at home, in our distressed communities.”

That's so true.  Poverty is a huge, profitable market.  Just as the Pay Day Lenders charging poor people 600% interest or the car dealerships that charge poor people 25% interest.  And privately owned and operated Charter Schools are booming.

We are closing Head Start programs, some 60,000 kids will be shut out, but Goldman Sachs to Finance Early Education Program

Thte Walmart Foundation is one of the largest financial behemoths funding Charter Schools.  Let's no forget that Hillary Clinton served on Walmart's Board of Directors for six years, from 1986-1992

Hillary Clinton, Board Member Walmart, 1990

David Sirota has done a great job following the well-funded, often scandalous, and mediocre-at-best but VERY PROFITABLE Charter School movement.  Here's his recent article:

School reformers give a lesson in corruption

Paradoxes come in all different forms, but here’s one that perfectly fits this Gilded Age:

The most significant lesson from the ongoing debate about American education has little to do with schools and everything to do with money.

This lesson comes from a series of recent scandals that expose the financial motives of the leaders of the so-called education “reform” movement — the one that is trying to privatize public schools.

David hits the "For Profit Charter School drive" nail on the head in this video.  (embedding twice, with both the old and new embed codes).

IN A NUTSHELL:  Charter Schools are For-Profit Public Education, run by hopeful entrepreneurs, funded by $Billionaires, Banks, Hedge Funds, and Private Equity firms who will profit from For-Profit Public Education.

For-Profit Public Education is a $1.3 Trillion dollar market to be tapped.  All those yet unscooped dollars must be driving some investors absolutely crazy.

Like the privatized prison business model, K-12 School privatization is just another humanity-callous opportunity for the 1% Owners to profit from the 99% Serfs.

But the Charter School corruption is becoming a huge scandal. Click here for an alphabetical listing of Charter School Scandals

Also, Check out these reports:

Hucksters, Campaign Donors, Scam Artists: Open a Charter School in New Jersey

Charter School Moguls Scam Oregon Out of Millions

Head of Charter School Pleads Guilty to Fraud Charges

Charter School Founder Dorothy June Brown Charged in $6 Million Fraud Scheme

Georgia file connects Twin Cities charter school, fraud scheme


Imagine how wonderful public education would be today if these uberly wealthy people had spent their $Trillions on improving existing schools and building enough new schools to keep the student teacher ration below 20:1

But, hey, who expects anyone to invest in America's children and their future without some promise of profiteering.  

This isn't Sweden, you know!

Will the $Billionaires pockets keep the money train rolling if the Charter train crashes?  Are they aware they might be making unsound investments?

According to the following, today's Charter School profits might just crash the train in the not-to-distant future.  Here's why

Even television's somewhat conservative Legal Authority, Jonathan Turley, is raising the alarms about Charter School Investors profits being made off of publically-funded, privately-owned Charter Schools.

Shockingly, the GOP Congress, towards the end of Bill Clinton's second term, provided the financial incentive to make HUGE PROFITS from building Charter Schools:  New Markets Tax Credit Program (NMTC Program)

Turley writes:

Charter Schools and The Profit Motive

Gonzalez said the banks and other wealthy investors had been making “windfall profits” by taking advantage of “a little-known federal tax break to finance new charter-school construction.”

That little know tax break, the New Markets Tax Credit, can be so lucrative, Gonzalez said, “that a lender who uses it can almost double his money in seven years.”

He added that the tax break “gives an enormous federal tax credit to banks and equity funds that invest in community projects in underserved communities, and it’s been used heavily now for the last several years for charter schools.”

WHAT WILL WALL STREET AND THE $BILLIONAIRES BET ON NEXT?  My guess is federally-funded Pre-School.

Who is providing all the cash?


Walton Family Foundation Charter School Org. Funding

Note two items the Waltons are funding:  New Teacher Project and Students First.  Both of these organizations were launched by Michelle Rhee, as seen in this chart.

Michelle Rhee & Husband Connections

There is so much big money flowing into the Charter School movement it is mind boggling.  For instance,

BILL & MELINDA GATES, JP MORGAN, & other $Billionaire Foundations

TEACH FOR AMERICA - Promoting Charter Schools

And Lawrence Summers is a former Director for Teach for America, along with his many insider money making ventures that should disqualify him for the Fed Chair, imo.

Lawrence Summers Muckety Map

THE INFORMATION THAT WAS MISSING WAS HOW THE MONEY FLOWED from $Billionaires through foundations to Entrepreneurs to build and open, operate, and profit from Charter Schools that collect taxpayers money for the students.

There are several funnels but NewSchools Venture Fund is a key financial sourse element.  And, yes, Ms. Rhee got a grant from them, too.

NewSchools Venture Fund - 1


Kim Smith, Co-Founder of NewSchools Venture Fund; and

Deborah McGriff, Partner of NewSchools Venture Fund


Black Alliance for Educational Options (BAEO): Community Voice or Captive of the Right?

BAEO announced its formation on August 24, 2000 at a national press conference in Washington, D.C. Former Milwaukee Schools Superintendent Dr. Howard Fuller, the group's president and founder, said it would support tax-funded voucher programs, private scholarships, tuition tax credits, charter schools and public/private partnerships.
Note that Deborah McGriff is also Vice Chair of BAEO and Kim Smith and Cory Booker are two of the directors of BAEO.

Black Alliance for Educational Options - Charter Schools

Also, note that Theodore Mitchell is a Director of New Leaders AND he is the CEO of NewSchools Venture Fund.

He has long been a leader in education reform in California and nationally. From 2008 through 2010, he served as president of the California State Board of Education.
So here's how it works:

$Billionaires make money selling to us, the profits are donated to their foundations that then fund organizations that are organized to fund entrepreneurs to grow the Charter School movement, change political policy to be more favorable to Charter Schools, and to fund politicians that will go with the Charter School program which, once built, will be PAID FOR BY US and our children forever.

To add spice to the HUGE K-12 MARKET, you can invest in all sorts of new businesses springing up everywhere THANKS TO FUNDING from the $Billionaires and their foundations.

You will find an interactive link here that you can use to find the hundreds of new business NewSchools is helping to launch.

Education is now a burgeoning market for venture capitalists, private equity, and entrepreneurs.

In a short time, we will begin to hear about problems with a new investment opportunity to help poor people:

Building a Healthy & Sustainable Social Impact Bond Market:

Pay-for-Success (PFS) financings, sometimes known as Social Impact Bonds (SIBs) or Social Innovation Financings

Over the next several months, we hope to continue to drive the field forward by catalyzing investor collaboration that brings together private foundations and commercially-oriented capital, leveraged into these deals initially by subordinated philanthropic investment.

Our commitment to testing SIBs stems from the belief that this structure could represent the most tangible example of innovative financing we are likely to see for the next five to ten years. We hope you will join us in building this market to scale solutions to social problems facing poor or vulnerable communities in the US.

Apparently, investors can double their investments in a few years earning 7.5% - 13% depending on how successful the program they invest in becomes.


If the program creates better results through lower re-conviction rates, the return to the investors can increase up to 13.5%.

US Corruption seems to be a bigger problem than ever.

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Comment Preferences

  •  Tip Jar (15+ / 0-)

    It's difficult to be happy knowing so many suffer. We must unite.

    by War on Error on Thu Aug 22, 2013 at 07:52:10 PM PDT

  •  For-profit schools=forever higher taxes... (7+ / 0-)

    ...gotta get that profit somewheres!

    Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

    by JeffW on Thu Aug 22, 2013 at 07:56:27 PM PDT

    •  If you like for-profit health "care," (7+ / 0-)

           you'll love for-profit "education."

      The free market is not the solution, the free market is the problem.

      by Azazello on Thu Aug 22, 2013 at 08:00:47 PM PDT

      [ Parent ]

    •  I don't really understand this. (1+ / 0-)
      Recommended by:

      Why would for-profit schools always result in increasingly higher taxes?

      •  They strip funding away from public schools (3+ / 0-)
        Recommended by:
        boriskamite, War on Error, Stwriley

        resulting in the need to raise taxes to keep them open. My property taxes could go up almost $500 in two years if the second levy in two years passes this November. Not every state has for-profit charter schools and in few states are they raging as out of control as they are here in Ohio, where they are catastrophically bad but stealing money from public schools at a rapid rate — facilitated by our Governor, Taxin' John Kasich. Kasich, like virtually every Republican politician in the state as well as the Ohio Republican Party, is the bitch of for-profit charter school interests such as David Brennan's White Hat Charter Schools, virtually all of which are mediocre or worse — mostly worse. In addition, we're about to see a new spate of e-schools, including a new one run by an operator who is already under a cloud for lousy, mismanaged schools.

        I think the unchecked growth of charter schools in general increase taxes, as do vouchers, which should be outlawed. But for-profit charters are particularly egregious for the cheap education they provide and their frequent lack of stability — resulting in closed schools midyear when students return to public schools, but the charter keeps the money.

        Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

        by anastasia p on Thu Aug 22, 2013 at 10:59:19 PM PDT

        [ Parent ]

      •  Why don't you write a diary, it would be (0+ / 0-)

        your first if you do.  

        You could use your 11 comments in this stream to build your diary.

        Please do.  

        Thank you.

        It's difficult to be happy knowing so many suffer. We must unite.

        by War on Error on Fri Aug 23, 2013 at 09:34:08 AM PDT

        [ Parent ]

  •  Another reason we shouldn't anoint (7+ / 0-)

    another Clinton.

  •  a horrible example (5+ / 0-)

    of how a charter school can fuck over the neediest people:East San Jose Charter Fail

  •  I disagree that private schools are analogous to (1+ / 0-)
    Recommended by:

    privately run prisons.

    Private prison operators has an incentive for people to be harmed. They profit when people are victimized. More disgustingly, they profit when the state abuses its authority.

    Private schools, however, have an incentive is to improve lives through better education. That's the whole reason parents send their kids there in the first place. If the private school succeeds, someone's life was improved.

    •  If they are in higher income areas (3+ / 0-)
      Recommended by:
      JeffW, bleeding blue, lostinamerica

      It works out ok for the most part.

    •  Private schools are not charter schools (3+ / 0-)
      Recommended by:
      devis1, War on Error, Stwriley

      They are very seldom run for profit.

      Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

      by anastasia p on Thu Aug 22, 2013 at 11:00:12 PM PDT

      [ Parent ]

    •  But most for-profit charters don't. (1+ / 0-)
      Recommended by:
      War on Error

      Their incentive is to skim off the top performing students and throw the rest back to an under-funded public school system that can then be blamed for "failing" kids. The most successful charters are all of this type, with selective admissions and policies that enable them to kick out any student they don't want or that makes them look bad. I see the process firsthand in our district; we always get a flood of students kicked out by charters back into the public schools just before the testing cut-off date, so that they will not have to be held responsible for those students' poor test scores.

      It's a scam, along with virtually all the rest of what passes for education "reform" as being pushed by the big organizations and foundations (the Gates, Broad, and Walton Foundations and their pet groups like StudentsFirst especially.) The real goal is and has always been using "reform" as a fig-leaf to cover the privatization of a major public good and one of the foundations of our modern democracy: a free and equitable public education.

      Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat. Sun Tzu The Art of War

      by Stwriley on Fri Aug 23, 2013 at 08:28:44 AM PDT

      [ Parent ]

      •  Michelle Rhee = Students First (1+ / 0-)
        Recommended by:

        What a tool she is.  How does she even look in the mirror.

        It's difficult to be happy knowing so many suffer. We must unite.

        by War on Error on Fri Aug 23, 2013 at 09:28:41 AM PDT

        [ Parent ]

        •  Don't forget Sandy Kress, who started it all. (2+ / 0-)
          Recommended by:
          War on Error, Stwriley

          This is a comment I made in one of teacherken's diaries from a couple of weeks ago, about the originator of NCLB and his being able to get W's ear on education early in his pResidency.

          I live in Dallas, and frankly, we are fortunate our son was not in public school here the last 12 years.  I had forgotten about Sandy Kress, onetime Democrat and Dallas Independent School District board member, and his role and transmogrification into Geo. W. Bush's education "go-to guy" and the real originator of "you can't teach what you can't measure", or however that nonsense goes. His connivance goes all the way back to when he left Dallas for Austin in 1997, and was able to be the one to get Bush's ear about testing.  The rest is, rather than history, now our present and future. You have insightfully explained just what great disservice Bush and NCLB have really done to us, and the ongoing ramifications.

          Sandy Kress, onetime Democrat:

          I'm part of the "bedwetting bunch of website Democrat base people (DKos)." - Rush Limbaugh, 10/16/2012 Torture is Wrong! We live near W so you don't have to. Send love.

          by tom 47 on Fri Aug 23, 2013 at 10:38:01 AM PDT

          [ Parent ]

  •  This train has left the station. (0+ / 0-)

    Public schools are a waste of public money

    Who ya gonna shoot wit dat homie, you'd rather blast an original instead of a phony, true macaroni, you don't even know me, and why does your gun say n****z only?

    by mim5677 on Thu Aug 22, 2013 at 08:30:10 PM PDT

    •  And private, for-profit schools... (8+ / 0-)

      ...can waste even more money!

      Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

      by JeffW on Thu Aug 22, 2013 at 08:30:55 PM PDT

      [ Parent ]

      •  And it's still public money! (8+ / 0-)

             That's the beauty of charters, public funds into private pockets.

        The free market is not the solution, the free market is the problem.

        by Azazello on Thu Aug 22, 2013 at 08:41:55 PM PDT

        [ Parent ]

      •  Actually, waste/efficiency is an (0+ / 0-)

        argument in favor of privatization. The profit motive creates an incentive to avoid wasting resources.

        •  Yes, like great teachers for one (5+ / 0-)

          Profit motives don't necessarily improve performance and can often short change the kids

          It's difficult to be happy knowing so many suffer. We must unite.

          by War on Error on Thu Aug 22, 2013 at 08:55:35 PM PDT

          [ Parent ]

          •  Of course the profit motive improves performance. (0+ / 0-)

            That's why Apple makes such awesome cell phones and laptops -- they get wads of cash and we get cool electronics.

            You may have seen the recent story about a teacher in South Korea who makes $4 million a year:

            "The harder I work, the more I make," Kim told the outlet. "I like that."
            And why should great teachers be poor? I don't understand why people get so upset about teachers making real money from their skills. If the government won't pay them more, why should they just resign themselves to a life of living paycheck to paycheck?

            The jury is still out when it comes to education, but I don't see any reason why being a great teacher means you shouldn't be able to capitalize on a skill that also serves to better the community.

            •  you sound quite naive (3+ / 0-)
              Recommended by:
              Azazello, War on Error, JeffW

              or a purposeful plant.

              Teachers making great money? GMAFB.

            •  But that's not what actually happens... (1+ / 0-)
              Recommended by:
              War on Error

              in virtually every merit pay scheme that's been tried, and many have. If you really want to understand this, try reading the actual literature on the idea. Here's a fine analysis of the idea by Ester Quintero of the Albert Shanker Institute that lays out the case against merit pay and links to the studies from three major cities (Nashville, Chicago, and NYC) where it bombed, as well as a large number of other studies on merit pay effectiveness. If you'd like something a little more official, try this extensive study from Berry, Eckert, and Bauries conducted for the National Education Policy Center, which also suggests some actually effective way to structure teacher incentives.

              I am, by the way, a teacher and one who is rated consistently as "highly effective". I'd run like a rabbit from any merit pay scheme, knowing that it would subject me to an arbitrary and pointless process that would be unlikely to change my teaching or my pay in any way that would help either my students or myself.

              Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat. Sun Tzu The Art of War

              by Stwriley on Fri Aug 23, 2013 at 09:02:00 AM PDT

              [ Parent ]

            •  By the way... (1+ / 0-)
              Recommended by:
              War on Error

              did you actually read the WSJ article on this guy? It's not exactly what you may think.

              Basically, he's at the very top end of a system that we don't even have in the US, the hagwon, or after-school, private tutoring industry. He does not work as a regular scholl teacher at all. Most of his $4 million earnings seems to come from his celebrity status and the fact that he's selling access to his lectures as online tutoring to huge numbers of students at $4/hour and writes and profits from the textbooks and workbooks required for these sessions as well. This is neither a real merit pay system nor is Mr. Kim a regular teacher in any sense. Put bluntly, this could not happen in the US at all, and will certainly never happen in a way that would change the pay of 99.99999% of teachers, no matter how good they are.

              Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat. Sun Tzu The Art of War

              by Stwriley on Fri Aug 23, 2013 at 09:14:14 AM PDT

              [ Parent ]

        •  That's crazy talk. (5+ / 0-)

          From the taxpayers' point of view, profit is waste. Look, there's no law preventing anyone from starting a for-profit private school, have at it. Privatization is when public funds are used to pay for it. The privatizers want taxpayer funded vouchers, but they'll settle for charters, as long as they can get their greedy hands on government funding.

          The free market is not the solution, the free market is the problem.

          by Azazello on Thu Aug 22, 2013 at 09:52:30 PM PDT

          [ Parent ]

          •  How is profit a waste from the taxpayer (0+ / 0-)

            perspective? I mean, they even pay taxes on profits?

            If the voucher represents funds that would have been otherwise spent on a student if she enrolled in public school, what's the problem with allowing that money to be used to get a better education elsewhere? Why should only the rich have access to better education?

            •  Unbelievable ... (3+ / 0-)
              Recommended by:
              boriskamite, JohnnySacks, JeffW

              You seem not to understand even basic economics. OK, a public school is non-profit. They pay for the physical plant and salaries necessary to deliver the service and no more. A for-profit school has to either charge more or deliver less in order to have a profit margin, that is revenues above what is required to deliver the service. See ?

              The free market is not the solution, the free market is the problem.

              by Azazello on Thu Aug 22, 2013 at 11:05:57 PM PDT

              [ Parent ]

              •  You're forgetting something. (0+ / 0-)
                A for-profit school has to either charge more or deliver less in order to have a profit margin
                There is another option. They can deliver the same service more efficiently.
                Unbelievable ...
                You seem not to understand even basic economics.
                I do love seeing the classic "assertion of intellectual superiority by way of a plainly incorrect statement." Never gets old. Usually just isn't this plainly obvious.
              •  Booooo!!!!! (0+ / 0-)

                Public schools are in now way shape or form non-profits.  

                If they were even close to non-profits they would actually make one.

                Don't be fooled in to thinking that non-profits don't make any money.

                As a non-profit you have to push out a profit making product otherwise you survive on nothing but grants and volunteerism.  

                Public schools in that sense make a very poor example of a non-profit.  

                Who ya gonna shoot wit dat homie, you'd rather blast an original instead of a phony, true macaroni, you don't even know me, and why does your gun say n****z only?

                by mim5677 on Fri Aug 23, 2013 at 06:16:56 AM PDT

                [ Parent ]

              •  ... An EVER Increasing Profit! (0+ / 0-)

                Profit isn't some one time or perpetual fixed value.  Profit must be ever increasing, by whatever means necessary.  Innovation... what a joke.  Innovation requires effort, and education is a messy non-deterministic process, unlike assembling cell phones or a cars on a billion dollar assembly line.  Killing wages and benefits and defrauding the taxpayer are the easy routes to increased profits.

            •  Profit is a waste (5+ / 0-)

              when you have a certain amount of dollars to educate your state's children, and school across your state are slashing courses, increasing class sizes, cutting support services etc because there isn't enough money — yet a chunk of that money is going into some rich person's pocket as PROFIT because that person is delivering even CHEAPER education. Meanwhile, all the kids in these communities are getting inferior education, so those people's profit is actually jeopardizing the future of the states that allow this.

              If we don't have enough money to properly fund our public schools, we do not have extra to give someone OUR tax money in the form of profit. In fact, this makes me angry that you would even naively suggest this. My property taxes are through the roof. If we pass a second levy in two years this November, they will have gone up almost $500 in two years — because our governor has slashed state money — our tax money — to public schools and redirected it to his cronies and donors in the for-profit charter school industry. This is MY money, and I am livid at its misuse.

              Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

              by anastasia p on Thu Aug 22, 2013 at 11:07:37 PM PDT

              [ Parent ]

        •  No, the profit motive (6+ / 0-)

          creates an incentive to deliver the cheapest, most substandard education possible to pocket the largest amount of money that should be going to help kids. Since most of the kids in charter schools are from poorer backgrounds, often sent there by desperate parents hoping they'll be better than the neighborhood school, the families are essentially voiceless.

          Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

          by anastasia p on Thu Aug 22, 2013 at 11:02:29 PM PDT

          [ Parent ]

          •  In some cases, you may be right. (0+ / 0-)

            But this is quite different than, say, a privately run prison. Private schools compete as a secondary option, and their customers are there by choice. Unlike with prisons, customers have a readily available alternative -- parents are free to put their kids back into public schools any time they like.

            Ongoing survival therefore depends on the ability to offer a better option. As a result, the profit motive creates an incentive to do the opposite of what you say - an incentive to provide a better education than what is available.

        •  No, it doesn't. (0+ / 0-)

          The profit motive creates an incentive to cut costs, which may or may not be efficient and effective in doing something other than generating the profits desired. Since we know that cost-cutting is in no way an effective tool to improve education (far and away the number one determinate of student success is the income level of their parents, tied directly to the overall wealth of their community and the resulting level of school funding), this is a particularly poor idea when applied to education. Put bluntly, it just doesn't work and we now have almost thirty years of experimenting with it in the US to show this.

          Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat. Sun Tzu The Art of War

          by Stwriley on Fri Aug 23, 2013 at 08:35:48 AM PDT

          [ Parent ]

      •  Charter schools are public schools (4+ / 0-)
        Recommended by:
        Azazello, War on Error, JeffW, Stwriley

        They're duplicative — and usually worse. It's the most expensive way to fund public education.

        Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

        by anastasia p on Thu Aug 22, 2013 at 11:00:53 PM PDT

        [ Parent ]

    •  So not true (3+ / 0-)
      Recommended by:
      boriskamite, bleeding blue, Azazello

      It's difficult to be happy knowing so many suffer. We must unite.

      by War on Error on Thu Aug 22, 2013 at 08:59:03 PM PDT

      [ Parent ]

  •  At the college level (1+ / 0-)
    Recommended by:
    War on Error

    For-profit "colleges" are embraced by Dianne Feinstein's husband, Richard Blum. Who is also a University of California Regent.

    Richard Blum

    And Her Pelosiness also diluted Obama's proposal for accountability for for-profit institutions:


  •  this issue really raises my hackles (6+ / 0-)

    Remember how one of the strategies of the ardent right-wingers was to get into politics by first being elected to school boards? So that they can teach Jesus rode a dinosaur or what not.

    Destroying the public school system is the goal of the more "sophisticated" (And by that I mean Sophist) politicians on both the right and the so-called left.

    The public school system was instrumental in creating a common culture, much like the old network (free) television did, despite its imperfections.

    A lesson from my Republican parents, back in the day:

    My siblings and I were sent to Catholic schools. When I heard that my parents paid taxes that supported public schools, I complained of the unfairness of that, as we had to pay tuition for the Catholic school. My parents explained to me that they were glad to live in a country where they had a choice. Bottom line: they believed that everyone should be educated.

    •  In Ohio, we have a legislator (3+ / 0-)
      Recommended by:
      boriskamite, devis1, Stwriley

      Kris "Wife Abuser" Jordan (R-of course) who wants to smash that compact via a bill that would absolve home schoolers from paying their education property taxes. They would get a fat tax refund every year — thousands of dollars, depending on the community they lived in. He says they save the schools money by not using them (never mind a new ruling that they are allowed to participate in public school sports and extracurriculars in Ohio now) so they should get that money back to pay for "more books and museum admissions."

      There aren't enough home schoolers in Ohio for this to make a substantial impact on school systems. But what it does is open the door to the idea that you shouldn't have to pay taxes for services you don't use? Don't go to the library? You should get a refund on the taxes that pay for libraries. Etc. Obviously, families who send their kids to private or parochial schools will be lining up for this refund, but I will be elbowing them out of the way as someone who has REALLY saved the schools money — by not having any children.

      It's all about destroying the idea that we pay taxes for the collective good — a massive extension of that constant harping we hear from the right about how they should get to keep "their" money.

      Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

      by anastasia p on Thu Aug 22, 2013 at 11:14:36 PM PDT

      [ Parent ]

  •  Many Charter Schools are non-profits (0+ / 0-)

    Here in New York that is one of the rules.

    •  I wish Ohio banned for-profit charters (2+ / 0-)
      Recommended by:
      Azazello, Stwriley

      It makes total sense to do so. The only high-achieving charters in Ohio are ones that are not out for profit. The for-profits have dismal records.

      Ed FitzGerald for governor Of Ohio. Women's lives depend on it.

      by anastasia p on Thu Aug 22, 2013 at 11:15:32 PM PDT

      [ Parent ]

    •  There is profit in financing the buildings (1+ / 0-)
      Recommended by:

      The real estate investments offer huge returns.  Read the links, k

      It's difficult to be happy knowing so many suffer. We must unite.

      by War on Error on Fri Aug 23, 2013 at 05:44:18 AM PDT

      [ Parent ]

    •  That is often a fig-leaf. (2+ / 0-)
      Recommended by:
      War on Error, Justanothernyer

      There is a growing problem that charter schools are the products of larger entities. Essentially, it works like this: a for-profit company wants to run a charter school but can't (because of the law or because the public would resist the idea) so they spin off a separate non-profit entity that then applies for and "runs" the charter by contracting administration, curriculum development, supply, etc., etc. out to the original for-profit company, right down to leasing buildings and borrowing construction funds from the original entity. The entity theoretically running the school is still non-profit, but they're paying large sums into a for-profit company run by the very same people in order to actually make the school function.

      At other times, the non-profit is actually legitimate (that is, it's a local effort by parents or other local forces) but they are persuaded or duped into contracting out to these same for-profit entities since they often have little idea of how to run the school themselves (also a problem with so-called "parent trigger" laws, which often institutionalize this process and give it official sanction.) Here's a fine article from Jonathan Turley about some of the ways this has been done, including in New York (he uses a set of charters in Albany as one of his major examples.)

      It's really quite an easy end-run around the laws, if you don't mind being unscrupulous and pillaging local communities and their students for your profits.

      Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat. Sun Tzu The Art of War

      by Stwriley on Fri Aug 23, 2013 at 09:45:30 AM PDT

      [ Parent ]

  •  Human Husbandry, having milked higher (3+ / 0-)
    Recommended by:
    JohnnySacks, Stwriley, War on Error

    education dry, is now moving into the elementary education arena. There are other flavors. There's incarceration, eldercare, industrial medecine and organized sports for starters.
    The main characteristics are a captive market and exploitation. That is, human husbandry involves the exploitation of people by their own kind (as opposed to natural parasites) to their detriment.
    Charters have been with us since the crowned heads of Europe issued them to explorers of the American continents, letting contracts on resources they claimed but didn't own.

    Delegation, it's a wonderful invention. Delegation evades legal responsibility by shifting a task to someone else. Commercialization is the forte of the middlemen. Middlemen profit by stirring things up and moving them around. In the real estate and stock market it's called "churning." On the other end of the spectrum are the people who claim a "cut" of the action by obstructing the enterprise, until, like highwaymen of old, they get a share.

    There are many ways to get something for nothing. Indeed, that's the premise of the free market -- to get free resources (by stealing them from the natives) and take them to market for a profit. It's a system that's predicated on the recognition of property rights (exclusive ownership).

  •  Love your poll answers... (4+ / 0-)

    I often ask myself the same question, and no matter which answer I pick, I'm never sure it is right.

    My daughter is a public schools teacher and a damned good one.   If you were a parent, you would want your kid in her class.   The bureaucracy, politics, and incompetence of the system drive her nuts.    I wish she would open a good charter school and run it.  I would be happy to invest in the business to get it up and profitable.

    If the question is, 'do I believe education should be free and public", the answer is yes.    There are somethings that should never be done for money and/or under a capitalistic demand driven market model:   capital punishment, imprisonment, medicine, education,  and national security/defense.  

    We all know the goal in education, just like Medicare, is to provide a totally inadequate voucher that also allows the carpetbaggers to rip off parent and kids at the carnival.   IF you have the money to supplement, good for you.   If not, who cares because they always need more prisoners for their for-profit jails.   THIS is tracking system used for America's education.  Afterall, who needs US welders, when they're shipping all the jobs overseas.  

    What we need is a Democrat in the White House. Warren 2016

    by dkmich on Fri Aug 23, 2013 at 04:43:08 AM PDT

  •  Rand Paul is trying to wedge into this (1+ / 0-)
    Recommended by:
    War on Error

     public charter school game - essentially trying to split the Dem vote - using his "libertarian" view - of which I believe is absolute BS.

       What most don't know or consider is how the deferred benefit programs for these entities are structured.  I have read the private charter schools essentially use the $$$ that would go to a defined benefit program (DB) as their profit.  So having low wage ( aka competitive) educators and no DB - what could possibly go wrong.    

        WOE:   Great info, but also look at the Walmart Family Trust - value over $1 Trillion and how many States they are funneling money (? buying) for the Charter School System...IMO, it appear to be more than Koch buying Colleges.  

    •  As luck would have it, non-profits have to file (1+ / 0-)
      Recommended by:

      with the IRS

      WalMart Family Foundation 2011 990-PF

      Sadly, it's not a searchable doc.

      I had to sign up to view this, for free.

      Here's the link

      BUT here's a SEARCHABLE 2009 Walmart Family Foundation 990-PF IRS report

      Search this for Charter and there are 100 search hits within the document.

      Here's the first examples:

      ORIGINAL AMOUNT:  3,750,000.
      INTEREST RATE: 0.000000
      DATE OF NOTE: 01/31/2005
      MATURITY DATE: 12/31/2014
      OF CONSIDERATION:$3,750,000 CASH

      ENDING BALANCE DUE  3,750,000.
      ENDING FAIR MARKET VALUE  3,750,000.

      ORIGINAL AMOUNT: 5,000,000.
       INTEREST RATE:  0.000000
      DATE OF NOTE: 05/31/2007
       MATURITY DATE: 12/31/2010
      OF CONSIDERATION:  $5,000,000 CASH
      ENDING BALANCE DUE  5,000,000.
      ENDING FAIR MARKET VALUE   5,000,000.

      ORIGINAL AMOUNT:  9,000,000.
      INTERREST RATE:  0.000000
      DATE OF NOTE:  05/14/2007
      MATURITY DATE:  12/31/2014
        DESCRIPTION AND FMV:  $9,000,000 CASH
      OF CONSIDERATION: 9,000,000
      BEGINNING BALANCE DUE:  5,227,500.
      ENDING BALANCE DUE :  8,024,705.

      AMOUNT: 10,000,000.
      INTEREST RATE: 3.000000
      DATE OP NOTE: 07/30/2007
      MATURITY DATE: 02/01/2018
      BEGINNING BALANCE DUE 10,000,000.
      ENDING BALANCE DUE:  2,500,000
      ENDING FAIR MARKET VALUE:  2,500,000

      May I speculate?

      As the articles in the diary above point out, there is every chance for defaults in building loans DUE to interest due.

      I can imagine the Charter Schools declaring bankruptcy and/or closing for other reasons, and private equity firms creating chains of Private Schools as they buy up these buildings at fire sale costs.  The Waltons can make their money back by investing in future school privatization stocks.

      IMO, it's all designed to destroy FREE public education and move desparate parents into FEE BASED, private schools, maybe in WalMart parking lots.


      It's difficult to be happy knowing so many suffer. We must unite.

      by War on Error on Fri Aug 23, 2013 at 08:17:00 AM PDT

      [ Parent ]

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