How to Get Rich From Public Schools (Without Actually Educating)

Get-Rich

 

Gold!

 

There’s gold in them thar schools!

 

Don’t believe me?

 

When you drive by an inner city school, it doesn’t exactly look like the Taj Mahal. Does it? Even relatively upscale suburban schools wouldn’t be mistaken for a house on MTV Cribs. And some of those fly-by night charter schools look more like prisons than Shangri-La.

 

But I’ve got it on good authority that there’s $1.3 trillion available for someone who knows how to take it.

 

That someone is Harold Levy, an expert on how to get rich through school privatization.

 

The former chancellor of the New York City School System has begun a second career managing an investment company.

 

“For-profit education is one of the largest U.S. investment markets, currently topping $1.3 trillion in value,” according to the Website for one of his master classes for rich investors.

 

Wooo-weee! That’s a lot of money!

 

To put it in context, that’s more than 10 times the amount the federal government spends on education per year. And it’s all yummy profit!

 

So how do you get your hands on some of those delicious taxpayer greenbacks?

 

You gotta’ invest.

 

No! I don’t mean increase education budgets for traditional public schools that can barely make ends meet! I mean invest in shiny new charter schools.

 

Here’s how it works.

 

Lend money to a for-profit company to build a new charter school. If you do it just right, you’re almost guaranteed to double or triple your money in seven years.

 

You’ll want to take advantage of the New Markets Tax Credit (NMTC), which began in 2000 at the end of President Bill Clinton’s administration. This will give you a whooping 39 percent tax credit. But here’s the best part, since it’s money you’re lending, you also get interest on it! And if that weren’t enough, you can piggyback all kinds of additional federal tax credits on top of that – things like historic preservation or job creation or Brownfield’s credits.

 

That doesn’t sound legal, does it? But it is!

 

In case that has you feeling queasy, you can hide what you’re doing by funneling the whole thing through a large non-profit organization like the Gates Foundation. They’ll be more than happy to help. They’ve done it for so many before you anyway.

 

However, make sure you whisk this money through something called a Community Development Entity (CDE). The federal website explains this can be either a “domestic corporation or partnership.” And it must have “a primary mission of serving LICs [Low Income Communities].” (Snicker!)

 

Here’s the best part. A CDE isn’t required to release information about who its donors are or how much they’re spending. So on paper the CDE – not you – gives the money to the non-profit, which, in turn, loans the money to a charter management organization. It’s like money laundering. No one can tell where the funds came from and thus it’s easy to escape from federal regulations or any appearance of wrongdoing.

 

There is a catch, however. You’re probably going to need a substantial amount of capital to put forward – at least a million bucks or so. No bank’s going to waste its time with only a few hundred thou.

 

This method is perfect for those who are already wealthy and want to increase their wealth or hedge fund managers out to boost their clients’ portfolios.

 

But maybe you just aren’t into the whole hedge fund game. Maybe you’re not the banking and investing type.

 

You can still make oodles of cash off public schools through real estate.

 

Here’s what you do – buy up cheap inner city properties that can be renovated or repurposed for charter schools. Then when a school privatization firm wants to set up shop in an impoverished city like Philadelphia, Chicago or Detroit, it needs someone like you to open the door.

 

You’ll get to charge the charter corporation rent and – get this – that’s not price capped! You can charge whatever you want! As long as you’ve got a good spot and no one else is trying to beat you to it, charter corporations are willing to pay bookoo bucks to get their money-making enterprises rolling!

 

A good rule of thumb comes from privatization expert Charter Schools USA, which recommends rental costs not exceed 20 percent of a school’s budget. However, there are plenty of examples of charter schools paying 25, 30 even up to 43 percent of their money just on rental costs! Ca-Ching!

 

And if you really want to boost the bottom line, open a charter school, yourself! That way you can both rent out the real estate and pay for it!

 

Think about it. Who sets the rental price? You do. Who pays the rental price? You do. So you can pay yourself WHATEVER YOU WANT! And where does the money come from? The taxpayers!

 

Doesn’t sound legal does it? But it is!

 

According to the Miami Herald, which conducted an in-depth investigation into these practices, many of the highest rents are charged by landlords with ties to the management companies running the schools. Property records show at least 56 charter schools in Miami-Dade and Broward counties sitting on land whose owners are tied to management companies.

 

Of course there are so many other ways to set things up like this with a charter school. Unlike most traditional public schools, charters contract with for-profit companies for everything from curriculum development to construction. So there are many opportunities for creative investors to figure out how to both set the price and pay it TO THEMSELVES!

 

Moreover, every state has different laws about charter schools so check for loopholes. You’ll find ‘em!

 

Just don’t forget to set up that CDE to hide your shady dealings from the public. After all, if taxpayers could easily see how you’re sucking up their hard-earned money that they thought was going to help school children (Tee-hee!) they wouldn’t be happy.

 

And if you’re reading this from somewhere outside of the USA, don’t despair. You, too, can make a ton of money off school privatization in the United States. It’s like the Statue of Liberty says – wealthy foreign nationals welcome! (Or something like that.)

 

Since the Immigration Act of 1990, investors have been allowed to purchase visas for their families by investing in U.S. corporations. Just stash some cash into a hotel, ski resort or charter school and – voilà! – Move directly to GO and collect way more than $200!

 

It’s called the EB-5 visa for Immigrant Investors. For the low price of at least $1 million -or $500,000 to a rural or high unemployment neighborhood — you can get visas for the whole family.

 

Sounds like some crazy new loophole – right? It isn’t. It’s been around for decades. Every year, the federal government hands out 10,000 of these visas. So while Syrian refugee children drown seeking asylum, wealthy foreign nationals get an express ticket to the US of A.

 

You might be thinking, ‘That gets me into the country, but where do I cash in?’ Easy. You now have a stake in a U.S. charter school and have access to all the same easy money as native-born investors.

 

It’s an incredibly lucrative model even for those more interested in the Prophet than profit.

 

Just look at Gulen charter schools. It’s the largest single charter school network in the country. More than 150 schools in Texas, Ohio, Illinois and other cities are funded by Turkish investors following an Islamic nationalist named Fetullaf Gülen. These schools are part of a “worldwide religious, social and nationalistic movement in his name,” according to the New York Times.

 

Be warned. Many of these schools are under investigation for using U.S. taxpayer dollars meant to educate U.S. children in non-educational or otherwise shady ways. Some of this tax revenue has allegedly been spent on political and religious causes championed by the Prophet Gülen. Other funds have gone to controversial educational practices. For instance, instead of hiring local teachers, the chain is infamous for shipping in Turkish educators to the United States. As if it wouldn’t be cheaper to hire locals! And guess where the money comes from to pay for these Turkish teachers’ visas? That’s right – from the charter school’s funding!

 

Still. Even with a few setbacks, there’s never been a better time to invest in the privatization of public education. Sure there are financial, behavioral and educational scandals at charter schools throughout the country being discovered everyday. But fortune favors the brave!

 

Money is just hanging on the tree waiting to be plucked. It’s hard to walk into a charter school and not come out with pockets fit to bursting with cold, hard cash.

 

In fact, the only folks not making bank in this whole scheme are the teachers!

 

Don’t be one of them.

 

Teachers at charter schools – where unionizing is often prohibited – take home even less than those working at traditional public schools. And those traditional educators aren’t getting rich, either.

 

A new report by the Center for American Progress argues that U.S. teachers usually have bad starting pay and are unlikely to see major salary gains even after several years of teaching.

 

Growth in teacher salaries is especially bad when comparing the U.S. to other developed countries:

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“The bottom line is that mid- and late-career teachers are not earning what they deserve, nor are they able to gain the salaries that support a middle-class existence,” the report concluded.

 

There appears to be a golden rule in education: the less you actually help students learn, the more money you get to take home.

 

Perhaps if public schools were kept out of private hands where profit is the overwhelming motivation for everything you do, things would be different. But thank goodness that isn’t happening!

 

Someday people may wake up and demand more for their tax dollars and for their children. But until then…

 

There’s gold in them thar schools!

 

Don’t be a sap. Don’t be a teacher. Don’t help children. Invest in a fly-by-night charter school and get rich!


NOTE: This article also was published in Commondreams.org.

 

 

Gov. Rick Snyder Should Be Forced to Drink Nothing But Contaminated Flint Water for the Rest of His Life

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As I write this, I have a fresh glass of ice cold water sitting next to me.

It is so clear I can see the wood grain of the the table through it. When I put it to my mouth, my lips almost go numb from the cold.

I gulp down way more than I should. In moments, it seems, the glass is empty.

Nothing satisfies like a crisp simple glass of water.

But in Flint, Michigan, that straightforward, easy pleasure can kill you.

And-or poison your children, cause learning disabilities, hearing loss, vomiting, high blood pressure, pain or numbness in the extremities, infertility or miscarriage. Among a host of other equally terrible maladies.

From the water.

Nine months ago the state officials who took over running Flint because the city was just too darn poor for self government, they shut off the flow of already treated Lake Huron water from Detroit. They replaced it with untreated raw water from the Flint River. The plan was to save money by treating this water, themselves, from a source that had been continually polluted for decades by the disappearing auto industry.

However, this noxious brew corroded the pipes, stripped out the lead and put it right into the water glasses Flint parents were using to hydrate their children.

More than 8,500 children. With high amounts of lead in their blood. Suffering untold injuries. For life.

Oh and the overwhelming majority of them are African American and/or impoverished. Whoops!

Gov. Rick Snyder has been defensively apologizing for this disaster. He knew all about it long before the taps were shut off. He even released a slew of inter-office emails about the situation where officials play pass-the-buck as Flint residents gulp down this filth from their faucets. As citizens complained about the water’s color and odor. As physicians protested it wasn’t safe for human consumption.

Even now Snyder STILL says people can safely bathe their children in this dirty, smelly, poisoned water. Just make sure the kiddos don’t drink it. In fact, he says he wouldn’t mind bathing his own grandchildren in this mess.

Yeah. Kinda takes away any sincerity from his “apology” and his statement that he’s responsible, doesn’t it?

Why isn’t this man in jail? Why is he still in the Governor’s mansion?

If we lived in a just country, this poor excuse for a human being would AT VERY LEAST be locked away in a dungeon somewhere never to sting our eyes at the sight of his repulsive face. A more appropriate punishment would be making him drink nothing but his own contaminated Flint tap water for the rest of his life as he suffers from the effects of lead poisoning – like all those thousands of children he helped poison to save a few bucks.

But no. In the America where we live, his only mistake was getting caught. And now he’s losing political points having to apologize without really doing much. Yeah, he’s called in the National Guard to help deliver bottled water. Yeah, he’s turned back on the Lake Huron water, but Flint’s pipes are already ruined so lead is still leaking into the water. Why are these poor people still being charged with a water bill for something they can’t use? No one except for Grandpa Rick Snyder would use this foul stuff for anything!

Meanwhile, Darnell Earley, the emergency manager appointed by Snyder who actually switched Flint’s water in the first place is at a new government job. He’s emergency manager of another Michigan public service – Detroit Public Schools! Dilapidated buildings, fungus growing on the walls, slime leaking from the ceiling, broken toilets – a state-provided learning environment overseen by this functionary who’s doing a heckuva job! Teachers trying to raise awareness of the situation have staged a series of “sickouts.” But Snyder’s administration still doesn’t have any money to waste on Detroit school kids – just like it didn’t have any money to provide potable water to Flint residents.

And the cycle continues. Crap gets flushed from one source to another – and I’m not talking about the Flint water system!

You can try to make justifications and excuses, but the lie gets awfully thin in Michigan. And if you think this is the only place where business trumps public welfare, you must be drinking from Snyder’s water cooler. Chicago, Philadelphia, Atlantic City, the entire island of Puerto Rico! Terrorists with government jobs are slowly dismantling our metropolitan areas, our public goods, everything that made America great!

And what the heck is being done about it? A lot of news stories, talking heads shaking their noggins and pointing their fingers everywhere except where the blame really lies.

It’s enough to drive one to drink.

Speaking of which, excuse me while I take another swig from my water glass.

Ah!

No, I don’t live in Flint. But this sure isn’t tap water. Are you kidding me?

In Pennsylvania we’ve had too many scares with Giardiasis and other bacteria in our municipal water occasionally making us sick.

I pay extra to bring this water to the house in huge jugs and put it on a machine that keeps it ice cold and refreshing anytime of the day or night.

Some people can’t afford it.

What are they to do?

Can anyone really feel safe drinking from the tap ever again?

What kind of a world is it where we can’t even trust the water?

What kind of world are we leaving for our children?

We are all a few months from becoming Flint.

It could already be happening.

Will we let it?

A Real Solution to the Infinitesimal Cases of Child Predators in Our Schools

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Pat Toomey is obsessed with child predators in our public schools.

When I came to Washington, D.C., this summer to visit 
the U.S. Senator from Pennsylvania, he was lobbying to get his “Passing the Trash” bill included in the Elementary and Secondary Education Act (ESEA).

His proposed legislation – now part of the Senate version of the ESEA – would ban school districts from helping known pedophiles from finding teaching jobs at different schools. Toomey is hopeful the provision will remain in the final version of the law that eventually will reach President Obama’s desk.

I met with his education aide who cheerily told me her job was to comb through the nation’s newspapers everyday and count the number of teachers accused of acting inappropriately with children. I’d mention issues like inequitable funding, standardized testing and Common Core. She’d solemnly quote back the number she’d found in her research.

There was definitely a disconnect between our priorities. After all, I’m a public school teacher. I work in our school system everyday. She and her boss only know about our schools through what they read in the newspaper. And according to the media every school in American houses child predators. They lurk behind every corner protected by administrators, superintendents and unions.

However, the facts do not back this up.

The Associated Press held a landmark investigation in 2007 to discover the extent of the problem. Reporters sought disciplinary records in all 50 states and the District of Columbia over a 5 year period. The investigation found 2,570 educators whose teaching credentials were revoked, denied, surrendered or sanctioned following allegations of sexual misconduct. About 70% of those cases involved children being victimized.

There is no glossing over it. The number is disgusting and startling. However, it is far from the national epidemic the media and Toomey are touting.

There are more than 3 million teachers in this country. This report found that 1 in 800,000 may be a child predator. That’s .00083%.

In other words, your child is more likely to be struck by lightning than be the victim of a child predator at school (1 in 134,906).

Other things more likely to happen include dying in an airplane crash (1 in 7,178), death on the job (1 in 48,000), and being murdered (1 in 18,000).

I don’t mean to be glib. One teacher betraying a young person’s trust in this way is one too many.

I’m glad Toomey is pursuing this legislation. I even support it.

However, I don’t like the slander and libel against the great majority of teachers. I don’t like how we’re all being painted with the same brush – even when it is done in the cause of making it more difficult for child predators.

I’ve been a public school teacher for almost 15 years. In that time, I have never met a single teacher who I would be uncomfortable letting babysit my 6-year-old daughter. Even when I was a student, myself, back in the 1980s and 90s, I never had a teacher who I was afraid would molest me or my classmates.

Compare this to the sex scandals in the Roman Catholic Church. A review by American Catholic bishops found about 4,400 of 110,000 priests were accused of molesting minors from 1950 through 2002. That’s .04% or 1 in 400. Sure the timescale involved is much longer than the AP study of educators, but the pool of priests is also much smaller. It would seem children are more in danger in houses of worship than houses of learning.

However, none of this helps people like Toomey pass legislation. You can’t say this doesn’t happen much, but we need to stop it. No one would vote for it. There would be no sense of urgency.

It’s just that in dramatizing the situation the Senator and his ilk are defaming the majority of teachers who would never even consider hurting a child.

The truth is not politically expedient. Child predation in schools is not a quantitative issue. It’s a qualitative one.

You don’t need large numbers of children to be hurt in this way for us to take the problem seriously. Even a small number, even a single instance, is enough to require action. No child should ever feel unsafe in school. No child should ever be victimized in these hallowed halls – especially by the very people who have devoted their lives to help them.

So I think Toomey’s right. We should pass his legislation. We should take steps to stop this kind of thing from ever happening in our schools.

And if we’re really serious, I have a solution that no one seems to be talking about: Let’s hire more teachers.

Stay with me here. Child predators almost always act alone. This sort of crime requires the perpetrator to have time undisturbed with the victim. Yet what do we have in our public schools? We’ve slashed and burned school budgets until there are fewer teachers and more students than ever. Class sizes have ballooned. It’s not uncommon for teachers to have upwards of 20, 30 even 40 children in one classroom.

This is the perfect breeding ground for child predators. They are more unsupervised than ever. They can do as they please and no one will catch them until it’s too late. Even principals and other administrators have less time to observe what goes on in the classroom because they’re unduly burdened with ridiculous amounts of paper work required to ensure every teacher gets a junk science value-added evaluation.

But if we hired more teachers, we could reduce this problem. We could even take the majority of these new teachers and put them together in the classroom. We could initiate a nationwide co-teaching initiative.

There would be challenges. You’d have to be careful to pair educators together that are compatible and can work well together. However, it would be worth it.

Few teachers would be alone with a class of students. There would almost always be another adult in the room. If another teacher was doing something fishy, it would be observed and probably reported. Moreover, the mere presence of another educator would be a huge deterrent to even trying something funny.

And this would solve our class size conundrum. You might still have larger classes, but the ratio between teacher and student would be halved. Educational outcomes would increase. Students would get more individual attention. They’d learn more. Teachers would be less stressed having someone else to shoulder the burden. And having an influx of new middle class jobs would boost our flagging economy.

This is a win-win.

Of course, it would cost some major bucks. It would require a lot of work from our nations lawmakers and policy wonks. But how could they really say ‘no’? After all, it’s being done to protect children!

From an economic standpoint, we already spend 54% of our federal budget on wars and the military. Only 6% is spent on education. It seems astoundingly unlikely that we can’t afford adding these jobs, increasing children’s educational outcomes, boosting the economy and protecting children – all in one sweep!

So, Senator Toomey, after your measure gets adopted in the final ESEA, I suggest you spearhead this new mission. After all, your bill will help, but co-teaching will almost eliminate the problem. Even if we had all children take classes exclusively on-line, it wouldn’t stop child predators from getting to them. (Heck! Predators thrive on the Web!) But co-teaching could make a real appreciative difference.

If we really want to stop students from being victimized in school, we need more teachers.


NOTE: This article was also published in the LA Progressive.