Charter Schools Were Never a Good Idea. They Were a Corporate Plot All Along

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America has been fooled by the charter school industry for too long.

 

The popular myth that charter schools were invented by unions to empower teachers and communities so that students would have better options is as phony as a three dollar bill.

 

The concept always was about privatizing schools to make money.

 

It has always been about stealing control of public education, enacting corporate welfare, engaging in union busting, and an abiding belief that the free hand of the market can do no wrong.

 

Charter schools are, after all, institutions run privately but paid for with tax dollars. So operators can make all decisions behind closed doors without public input or accountability. They can cut student services and pocket the difference. And they can enroll whoever the heck they want without providing the same level of education or programs you routinely get at your neighborhood public school.

 

In essence, charter schools are a scheme to eliminate the public from public education paid for at public expense.

 

 

But whenever anyone brings up these facts, they are confronted by the bedtime story of Albert Shanker and his alleged advocacy of the industry.

 
So grab your teddy bear and put on your jammies, because here’s how it goes:

 
Once upon a time, hero president of the American Federation of Teachers (AFT) Al Shanker had an idea. He wanted to make laboratory schools where educators would be freed of regulations so they could experiment and find new pedagogies that worked. Then these innovations could spread to the rest of the school system.

 

One day in 1988, he gave a speech at the National Press Club and subsequently published a column in the New York Times advancing this idea.

 

And he called it – Dum, Dum, DUM! – charter schools!
The second act of the story opens in the mid-1990s when Shanker had largely turned against the idea after it had been co-opted by business interests.

 

He dreamed of places where unionized teachers would work with union representatives on charter authorizing boards, and all charter proposals would include plans for “faculty decision-making.” But instead he got for-profit monstrosities that didn’t empower workers but busted their unions.

 

If only we’d stuck with Shanker’s bold dream!

 

Or at least, that’s how the story goes.

 

Unfortunately it’s just a story.

 

It’s not true. Hardly a word of it.

 

Shanker did not come up with the idea of charter schools. He wasn’t part of the plan to popularize them. He didn’t even come up with the term “charter school.”

 

If anything, he was a useful patsy in this stratagem who worked tirelessly to give teachers unions a seat at the table where he then discovered they were also on the menu.

 

The real origin of charter schools goes back decades to at least the 1950s and the far right push for deregulation.

 

When the afterglow of the atomic bomb and the allied victory in Europe had faded, there was political backlash at home to roll back the amazing economic successes of the New Deal. Social security, strong banking regulations, deposit insurance, a minimum wage, job programs that put millions of people to work – all of that had to go in favor of right wing ideology.

 

A cabal of mostly wealthy, privileged elites wanted to do away with these policies in the name of the prosperity it would bring to themselves and their kind. They claimed it would be for the good of everyone but it was really just about enriching the already rich who felt entitled to all economic goods and that everyone else should have to fight over the crumbs.

 

Never mind that it was just such thinking that burst economic bubbles causing calamities like the Great Depression in the first place and made the conditions ripe for two world wars.

 

Show me the money!

 

However, this really didn’t go anywhere until it was combined with that most American of institutions – racism.

 

Even before the Supreme Court’s 1954 Brown vs. Board decision struck down school segregation, many white people said they’d never allow their children to go to school with black children.

 

In the South, several districts tried “freedom of choice” plans to allow white kids to transfer out of desegregated schools.

 

In 1952 and ’57, governments in two states – Georgia and Virginia – tried out what became known as the “private school plan.” Georgia Gov. Herman Talmadge and community leaders in Prince Edward County, Virginia, tried to privatize public schools to avoid any federal desegregation requirements. Each student would be given a voucher to go to whatever school would enroll them – segregated by race.
The plan was never implemented in Georgia and struck down by the federal government in Virginia after only one year as a misuse of taxpayer funds.

 

But these failed plans got the attention of one of the leading deregulation champions, economist Milton Friedman.

 

He sided with the segregationists citing their prejudice and racism as merely “market forces.”

 

In his seminal 1955 tract, “The Role of Government in Education,” he wrote:

 

“So long as the schools are publicly operated, the only choice is between forced nonsegregation and forced segregation; and if I must choose between these evils, I would choose the former as the lesser. Privately conducted schools can resolve the dilemma … Under such a system, there can develop exclusively white schools, exclusively colored schools, and mixed schools.”

 

Throughout the 1970s, school voucher proposals were widely understood as a means to preserve school segregation, according to education historian Diane Ravitch. But they couldn’t gain any traction until privatizers came up with a new wrinkle in the formula – the charter school.

 

Charter schools are really just school vouchers with more money and regulations.

 

In the case of vouchers, we use tax dollars to pay for a portion of student enrollment at private and parochial schools. In the case of charters, we use tax dollars to pay for all of a student’s enrollment at a school that is privately managed. The only difference is how much taxpayer money we give to these privatized schools and how much leeway we give them in terms of pedagogy.

 

Charter schools can do almost whatever they want but they can’t blatantly teach religion. Voucher schools can.

 

Other than that, they’re almost the same thing.

 

In order to get the public to support school privatization, Friedman thought we’d need to convince them that they didn’t need the burden of self-government. This was especially true of minorities.

 

In his 1981 book Free to Choose, Friedman and his wife Rose suggested the necessity of convincing black voters that they didn’t need Democracy. School privatization could be pitched as a system that would “free the black man from dominion by his own political leaders.”

 

The opportune moment came in 1983 with the publication of the Reagan administration’s propaganda piece A Nation at Risk. Using bogus statistics and outright lies, the report painted our public school system as a failure and set up the false urgency that school deregulationists needed.

 

From this point forward, a series of supply side lawmakers, policy wonks, economists, billionaires and CEOs came out of the woodwork to push for school privatization which culminated in the first charter school law in 1991 in Minnesota.

 

In the middle of all this tumult came Shanker’s National Press Club speech in 1988.

 

Ronald Reagan was still in office and it’s hard to overstate the threat he posed to unions having infamously fired more than 11,000 striking air traffic controllers.

 

Shanker was trying to ride the tide of public opinion in favor of deregulation and privatization. He accepted the bogus criticisms of schools in A Nation At Risk and offered to restructure schools to fix the problem. Like so many union leaders after him, Shanker gave away much of the power of his people-driven movement so as not to come across as obstructionist. He didn’t think teachers unions could oppose the rising tide of privatization without offering innovations of their own.

 

It’s true that he called these reforms “charter schools” but he didn’t invent the term. He borrowed it from a little-known Massachusetts educator, Ray Budde, who meant by it something very different from what it has become. Budde thought school boards could offer “charters” directly to teachers allowing them to create new programs or departments.

 

Shanker’s proposal wasn’t nearly the first time a public figure had suggested restructuring public schools.

 

In the late 1960s after helping provide justification for school desegregation, sociologist Kenneth Clark advocated for alternative school systems that could be run by groups as diverse as universities to the Department of Defense.

 

Shanker’s contribution was not nearly as powerful as subsequent apologists have claimed. He was one voice among many. Though his comments were useful to the deregulators, they ignored everything of substance he had said beyond the myth that he supported their efforts at school privatization.

 

According to journalist Rachel Cohen, the true architect of the charter school concept as it appears today wasn’t Shanker, Budde or Clark. It was Minnesota “policy entrepreneur” Ted Kolderie.

 

He was at the heart of the issue pushing for school privatization from the 1970s through the 1990s.

 

Throughout the 1970s, Kolderie lobbied for a plethora of ways for private industry to provide government services – including education – through an initiative known as Public Service Options (PSO). By 1981, the focus narrowed almost exclusively to education.

 

In several reports, he blamed the bogus failure of public schools on the democracy of the school boards. Though he didn’t use the term “charter school,” his conception was essentially the same as the modern charter school: independent schools accountable only through market forces and a set of contractual obligations. He thought they could be run by almost anyone – universities, corporations, nonprofits— even public school districts – if state law could be amended to allow it.

 

That’s pretty much a charter school – a privately run learning institution that’s publicly financed.

 

Why doesn’t Kolderie get the credit? Why the emphasis on Shanker who had very little to do with what ultimately became law?

 

Because Kolderie and others wanted to hide behind the union. They wanted their policy to have a friendlier public image than that of a shadowy puppet master.

 

Shanker walked right into their trap.

 

He even agreed to give another speech in favor of charter schools in October 1988 at the Minneapolis Foundation’s annual Itasca Seminar for political and business leaders.

 

With continued lobbying from the corporate sector and right wing ideologues, three years later the state was the first to pass a charter school law.

 

And the die was cast.

 

Sure charter school cheerleaders like to give Shanker the credit today, but the legislation that was eventually passed and funneled to other states through the American Legislative Exchange Council (ALEC) had little resemblance to anything Shanker said.

 

It was the deregulation and privatization model first conceived in the 1950s, funneled through Friedman and now Kolderie.

 

And make no mistake – the overall plot wasn’t simply to enact charter schools. That was merely the foothold that enabled subsequent school voucher bills and tax scholarship plans (vouchers lite). The end game was made clear by Friedman time and again – the complete destruction of public schools.

 

While speaking to rightwing lawmakers at a 2006 ALEC meeting, Friedman explained that school privatization was always about “abolishing the public school system.”

 

Here is an excerpt from Friedman’s ALEC speech:

 

“How do we get from where we are to where we want to be—to a system in which parents control the education of their children? Of course, the ideal way would be to abolish the public school system and eliminate all the taxes that pay for it. Then parents would have enough money to pay for private schools, but you’re not gonna do that. So you have to ask, what are politically feasible ways of solving the problem. The answer, in my opinion, is choice…”

When Minnesota proposed the first charter school law, the state teachers union fought against it. But tellingly Shanker refused to speak out during legislative debates.

 

And this was due in part to the rise of the neoliberals.

 

School privatization was the brainchild of the far right. But as the ‘80s gave way to the ‘90s, so dawned a new type of political figure – the social progressive with distinctly right wing economic views.

 

In 1989 when the Democratic Leadership Council (DLC) named Bill Clinton as chairman, it also founded its own think tank—the Progressive Policy Institute. Kolderie worked closely with the DLC and even wrote its first policy paper on school privatization.

 

Clinton was an immediate convert, embracing Kolderie’s proposals as he traveled around the country making speeches even though he knew it was unpopular with teachers unions. Clinton ruffled so many feathers that Shanker, himself, commented, “It is almost impossible for us to get President Clinton to stop endorsing [charters] in all his speeches.”

 

Though the first charter school law came a year later, in 1990 Wisconsin passed the first school voucher program. Since it was pushed through with mostly Republican support, this provided cover for neoliberal charter supporters. Though there was little difference between the two policies, neoliberals could distinguish themselves by criticizing school vouchers while endorsing their ideological cousins the charter schools.

 

So we had the two major political parties both supporting different flavors of the same school privatization.

 

It allowed Democrats to stop supporting more funding for social programs and schools while weakening the main driver of such policies – labor unions. This allowed the neoliberals to be economically as conservative as their “adversaries” across the aisle while publicly pretending to support progressivism.

 

Today, there are charter schools in 43 states and the District of Columbia educating nearly three million students.

 

This does not now – and never did – represent any ideal offered by Shanker or unions.

 

His dream of teacher-run schools as laboratories of innovation may or may not have merit, but not at the expense of making different rules for different schools. Where regulation is important, it is important for all schools. Where it is too restrictive, all schools should be freed from its requirements. All teachers should be allowed to innovate and take a leadership role in their schools.

 

When Shanker spoke about “charter schools,” he was not a visionary. He was leading us down a dead end. He was foolishly offering an olive branch to an inferno. That doesn’t mean he started the blaze or even that it was his idea.

 

Yet even now you can read propaganda that says otherwise on the AFT’s own Website – “Restoring Shanker’s Vision for Charter Schools” by Richard D. Kahlenberg and Halley Potter. It’s funny how Potter, a former charter school teacher, and Kahlenberg, a senior fellow at the Century Foundation – which loves charter schools – both want to keep the happy face on an ugly idea. And sad that one of the largest teachers unions can’t face up to one of its heroes biggest mistakes.

 

If charter schools have a face, it should be Kolderie’s or Friedman’s – or perhaps it should be the industry’s most famous modern champion Betsy Devos.
Charter schools are no progressive dream.

 

They are the corporate paradise of spending tax dollars with zero accountability, zero transparency and as much deregulation as possible. They are the continued destabilization of public education in the knowledge that the edifice cannot stand without support indefinitely.

 

Public education will crumble and fall just as the architects of school privatization always knew it would.

 

Unless we take a stand and take back our power.

 

To do that we need to understand where charter and voucher schools came from and who is responsible.

 

Charter schools do NOT represent a good idea that was perverted by the corporate world. It is an essentially bad policy that should be abolished immediately.

 


NOTE: This article owes a debt to the reporting of Rachel Cohen.


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Every Charter School Must Be Closed Down – Every. Single. One.

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The problem with charter schools isn’t that they have been implemented badly.

 

Nor is it that some are for-profit and others are not.

 

The problem is the concept, itself.

 

Put simply: charter schools are a bad idea. They always were a bad idea. And it is high time we put an end to them.

 

I am overjoyed that lawmakers on both sides of the aisle are starting to hear the criticisms leveled against the charter school industry in the face of the naked greed and bias of the Trump administration and its high priestess of privatization, Betsy DeVos. However, I am also disappointed in the lack of courage displayed by many of these same lawmakers when proposing solutions.

 

Charter schools enroll only 6 percent of students nationwide yet they gobble up billions of dollars in funding. In my home state of Pennsylvania, they cost Commonwealth taxpayers more than $1.8 billion a year and take more than 25 percent of the state’s basic education funding. That’s for merely 180 schools with 135,000 students!

 

Charter schools are privately run but publicly financed. They are what happens when the public abrogates its responsibility to run a school and signs that right away (in a charter agreement) with another entity, usually a business or corporation.
As such, these schools are not held to the same standards as authentic public schools. Unlike your neighborhood school, charters are not required to be run by elected boards, to have public meetings, to have open records, or to spend all their money in the service of their students. Nor do they have to provide the same standard of services for students – even children with special needs. Nor do they have to accept all students within their coverage area who enroll. And that’s to say nothing of how they increase racial segregation, are susceptible to fraud and malfeasance, often produce much worse academic results, close without notice, hire many uncertified teachers, trample workers rights and destabilize the authentic neighborhood public schools.

 

These are not problems that can be solved by fiddling around the edges.

 

 

We cannot simply constrain them from stealing AS MUCH from authentic public schools and consider it a victory.

 

We need to address the issue head on – and that issue is the very concept of charter schools.

 

Why would the public give up its schools to a private entity? Why allow someone else to take our money and do whatever they want with it behind closed doors? Why allow anyone to give our children less of an education than we’re already providing at our own schools?

 

We must end this failed experiment. Nothing less will do. It will only provide more breathing room so  that this unjust situation can drag on for another generation.

 

In Pennsylvania, Gov. Tom Wolf has proposed sweeping reforms via executive order that would make real progress toward holding charter schools accountable. He has asked that the state senate and house take the next step with legislation to finish the job.

 

Just this past week, Wolf visited Twin Rivers Elementary School in McKeesport along with state Senator Jim Brewster and state Reps Austin Davis and Jake Wheatley to listen to resident and teachers’ concerns and propose solutions.

 

Such a move is unprecedented and represents a seismic shift in the political landscape. However, I am concerned that lawmakers are too timid to fix the real problem here.

 

No one has the bravery to come out and say what I’ve said here.

 

Consider this statement from Brewster, my state Senator:

 

I have legislation to address some of these issues, but it’s not an indictment on charter school teachers. It’s not an indictment on the charter school concept. It’s an indictment on the process that was put in place 20 some years ago that has put in a playing field that’s not level. Together I believe if we get the charter school folks to the table we can iron this out, we can fix several things that need to be fixed – the funding formula, the capacity, the cap and those sort of things – and when we do that, then the mission statements of the charter schools and the public schools are the same – educate our children, bring their skill sets out, help them achieve their dreams.”

 

 

I am deeply grateful for Brewster’s support and willingness to take on the charter industry. And he is right about many things. But not all of them.

 

He is right, for example, about the financial impact of charter schools on authentic neighborhood public schools.

 

At the same meeting, McKeesport superintendent Mark Holtzman said, “Charter schools are depleting our resources with no accountability or without being financially responsible. Taxpayer money is being used to flood the media with commercials and billboards right before the start of school so that they can take our students.”

 

There are roughly 500 students living in the McKeesport district enrolled in brick-and-mortar charter schools and 100 students enrolled in cyber charters. The district spends about $7 million — or 10% of its budget — on charter school payments, according to Holtzman.

 

It’s roughly the same at other districts in the Mon-Valley. Steel Valley Schools, where I work as a middle school teacher, has budgeted a $6 million payment to charter schools this year – 16% of our spending plan.

 

Again, I am extremely grateful that Wolf and other state Democrats recognize this fact and are willing to take measures to make matters more fair. I hope many Republicans will join them in this.

 

However, fixing the way charters are funded alone will not correct the problem.

 

Charter schools are a parallel service to authentic public schools. If you’re suggesting we fund them both, you’re asking taxpayers to pay for two complete and separate school systems.

 

Why should we do that? Why should we waste our money on it? I don’t think the people of Pennsylvania – or any state of the union – have money to spare on a pointless duplication of services.

 

It is a politically impossible position that has zero justification – especially when you consider all the inequitable practices charter schools are allowed to get away with.

 

In his executive orders, Wolf proposes putting a stop to some of this.

 

For example, he wants to require charter schools to stop turning away students based on race, ethnicity, gender, disability, intellectual deficits, or other factors. He wants to make charter schools as transparent as authentic public schools. He wants to stop conflicts of interests for charter school board members and operating companies so that they can’t make decisions on behalf of the school that would enrich themselves, their families and/or friends.

 

These are excellent suggestions and I hope he is able to make them a reality.

 

However, these “fixes” are all things that authentic public schools already do. They don’t discriminate in enrollment. They are financially accountable and transparent. They aren’t allowed to engage in conflicts of interest.

 

Why bother making charter schools act like authentic public schools when we already have authentic public schools? That’s like genetically engineering your cat to have a longer snout and say “woof.” Why bother when you already have a dog?

 

The same could be said about for-profit and non-profit charter schools.

 

Apologists want to pretend that the former is the “bad” type of charter and the latter is the “good” type.

 

Wrong.

 

As Jeff Bryant, an editor at Education Opportunity Network, puts it, this is a “Distinction without a difference.”

 

These terms only define an organization’s tax status – not whether it is engaged in gathering large sums of money for investors.

 

With a knowledgeable accountant or hedge fund manager, almost anyone can claim nonprofit status while still enriching yourself. It happens all the time.

 

For instance, take the use of management companies.

 

A for-profit charter school can simply cut services to students and pocket the savings as profit.

A nonprofit charter school can do the same thing after engaging in one additional step.

All they have to do is start a “nonprofit” charter school and then hire a for-profit management company to run it. Then the management company can cut services and pocket the profits!

 

 

Yet we call such a school “nonprofit.” It’s meaningless.

 

 

It doesn’t even matter who owns the for-profit management company. It could even be the same people who own the nonprofit charter school.

 

The law actually allows you to wear one hat saying you’re nonprofit and then put on a different hat and rake in the cash! The only difference is what hat you’re wearing at the time! You get to claim to be a nonprofit while enjoying all the advantages of being for-profit.

 

You can even buy things with public tax dollars through your for-profit management company and then if your “nonprofit” school goes bankrupt, you get to keep everything you bought! Or your management company does.

 

So the public takes all the risk and you reap all the reward. And you’re still called a “nonprofit.”

 

 

But let’s not forget real estate shenanigans.

 

 

If I own property X, I can sell it to my own charter school and pay myself whatever I want. And I can do the same thing with a nonprofit charter school, I just need to sell it to my for-profit management company which will still buy my property for whatever I decide to pay myself.

 

 

Face it – charter schools are a scam.

 

They are a failed policy initiative.

 

It’s time they were ended.

 

But don’t get me wrong. I’m not suggesting we simply throw away the people who work there or the students who are enrolled there.

 

We need to look at each charter on a case-by-case basis and decide how best to transition them to an authentic public school system.

 

In some cases, it may make sense to rehabilitate charters into fully public schools with all the transparency and regulations that means. However, in most cases it will mean eventually closing them.

 

If there are any charters that actually provide valuable services for students and their families wish to keep children enrolled there, we should allow these students to finish their academic careers there. But let the present classes be the last.

 

In schools that do not offer better outcomes than the neighborhood public school (i.e. the overwhelming majority) students should be transitioned back to the neighborhood schools.

 

If there are any charters that do not wish to abide by such changes, they should have the opportunity to become what they already are except in name – private schools. The only difference is that taxpayers will no longer take up the tab.

 

And when it comes to charter school teachers, they should not be punished for having worked in the industry. In fact, we should find ways to bring them into the authentic public schools.

 

Our public schools need more teachers. Charter teachers who are fully certified should be given first chance to fill some of those vacancies. And charter teachers who are not certified should be given the opportunity to go back to school and complete their education degrees.

 

Any sane solution to the charter school mess would include these measures with the ultimate goal of ending school privatization in all its forms financed at public expense.

 

We don’t want privatized prisons. We don’t want privatized mercenary armies like Blackwater. We don’t want privatized schools.

 

Tax dollars should go to our authentic neighborhood public schools so that we can make them even better than they already are.

 

Our students deserve the best we can give them – and we can’t give them the best when we’re needlessly paying for two separate school systems and passing legislation with more of an eye on private investors than the welfare of the next generation.

 

It is my sincere hope that this push for real charter school reform becomes an effort to solve this problem once and for all.

 

Are we brave enough to do it?

 

 

Do we have the courage and conviction to take that on?


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Inside Bill Gates’ Hubris: Propaganda to Make America Neoliberal Again

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Once upon a time, the world was run by rich men.

 

And all was good.

 

But then the world was conquered by other rich men.

 

And that is something the first group of rich men could not allow.

 

That is the reason behind Netflix’s new film “Inside Bill’s Brain: Decoding Bill Gates.”

 

The three-part documentary goes live on Sept. 20. But the film’s aims are clear from the trailer.

 

It’s a vanity project about Bill Gates, the second richest man in the world.
By examining his mind and motivations, director and executive producer Davis Guggenheim will show us how Gates deserves his billionaire status and that we should allow him to use his philanthrocapitalist ventures to rule the world.

 

After all, shouldn’t the best and richest among us make all the decisions?

 

It’s a cry for oligarchy in an age of idiocracy, a love letter to neoliberalism in a time of neofascism.

 

The pity is that Donald Trump and the “Make America Great Again” crowd have goose stepped all over their new world order.

 

But instead of showing the world why we need to return to democratic principles, strengthen the common good and empower the people to govern themselves, some would rather continue the same plutocracy just with a different set of plutocrats at the wheel.

 

In the days of Obama, the Bushes and Clinton, it wasn’t membership in the same political party that defined the ruling class. It was holding the same ideology.

 

It’s not that neoliberals were so much wiser, ethical or empathetic than Trump. They just kept their greed a secret or tried to make it seem a virtue. They told better lies and didn’t incite as much violence on our shores, and they were better at manipulating markets to make themselves richer while keeping the rest of us relatively poorer.

 

The MAGA insurgents are also rich men, but their greed is transparent. They lie and no one expects them to tell the truth. They can freely dismantle the social safety net because they stoke our prejudices and keep us fighting over race, gender and abortion so much we forget they’re robbing us blind. And when the market crashes, they don’t have to care because they’ve stolen everything of value and can weather the economic depression that will destroy the nation.

 

Neofacism is certainly worse – but it’s only a difference of degree, not of kind.

 

It’s no wonder then that the neoliberals want to make us nostalgic for their brand of simmering destruction instead of Trump’s rapid boil disasters.

 

And Gates is the perfect poster child for old style neoliberalism.

 

He’s the former CEO of Microsoft and – together with his wife – the founder of the Bill and Melinda Gates Foundation.
In the trailer, Gates confides that his deepest fear is that one day his brain will “stop working.”

 

Gates is a “multiprocessor” says his wife Melinda. “He will be reading something else but then processing at the same time. It’s chaos!”

 

Gates “thrives on complexity,” Melinda says. “He makes a framework in his mind, then he starts slotting in the information. If something doesn’t line up, he gets really frustrated.”

 

“It’s scary,” says Melinda. “But when Bill stills himself, he can pull ideas together that other people can’t see.”

 

Thus we gain a picture of a brilliant man striding over a world populated by intellectual inferiors. How foolish we would be to question his authority!

 

And since his intelligence has enabled him to hoard more money than almost anyone else in the world, why shouldn’t we let him use this economic power to change it for our benefit?

 

It’s truly one of the most patronizing, paternal and insulting pieces of propaganda I’ve ever seen in my life. And that includes Guggenheim’s previous movies.

 

Guggenheim is, after all, the man behind the most notorious propaganda film of modern times, “Waiting for Superman.” Back in 2010, he popularized the school privatization of Bill Clinton, George W. Bush and Barack Obama. He made charter schools cool until Betsy DeVos came along and made them uncool again.

 
Though I can’t imagine what could possibly be cool about for-profit schools run by appointed bureaucrats that can discriminate against students in enrollment, skimp on special education services and cut academic programs for students while pocketing the savings! All while gobbling up funding for the public schools that try to educate everyone!

 
More recently, he tried to pull the same sleight of hand for education technology firms in 2013 with the film “Teach,” but by then no one was really paying attention to him.

 

 

And for all that time his ventures have been backed by the richest neoliberals out there – Netflix CEO Reed Hasgtings, Amazon founder and CEO Jeff Bezos, eBay founder Jeff Skoll, and Salman Khan of Khan Academy.

 

 

Sure these folks are usually identified as Democrats, but their philosophy is completely in line with The Walton Family Foundation, Charles Koch, Walden Media (run by creationist Philip Anschutz), and lobbying groups such as the Lumina Foundation, the New American Foundation, and others.

 

Oh! And let’s not forget Bill Gates, himself, who has bankrolled a number of Guggenheim’s projects including “Waiting for Superman.”

 

It’s no wonder Guggenheim is making a fawning tribute to Gates. He owes the man!

 

It’s time to pay back his sugar daddy with what he does best – agitprop public relations.

 

Yes, Gates is a very intelligent person.

 

But he is also a very stupid one.

 

When it comes to computers, few people can beat him. But like so many overprivileged people, he takes excellence in one area to mean excellence in all areas.

 

And that’s just not how things work.

 

The ancient Greek philosopher Socrates famously bragged that he was the wisest person in Athens – not because he knew so much more than everyone else but because he was the only person who knew that he didn’t know anything.

 

Gates could have learned something from that humility, because it’s the trait he is most lacking.

 

Take public education.

 

No one has had a greater negative impact on public schools than Gates. With his so-called philanthropic contributions, he has steered the course of education policy away from research-based pedagogy to a business-minded approach favored by corporate raiders.

 
He didn’t come up with Common Core State Standards, but he did bankroll them. He bribed the state and federal government to force their schools to adopt the same or similar academic standards for all students. Not good standards. Not standards developed by classroom teachers, psychologists or experts. But standards created by the standardized testing industry.

 

 

The result has been more high stakes standardized tests, narrowing the curriculum, shrinking education budgets for the poor and minorities, and an increase in developmentally inappropriate approaches to education. Nearly every parent with a school age child will tell you horror stories of attempting to do homework with their children and having to relearn basic math and English skills just to untwist the needlessly complex knot that children are expected to unsnarl in order to grasp the bare basics of academia.

 

 

Gates poured billions of dollars into that failed initiative, spent hundreds of millions of dollars for development and promotion and influenced trillions of taxpayer dollars to be flushed down the drain on it. All to no avail.

 

But it’s not his only education policy failure.

 

Gates now admits that the approximate $2 billion he spent pushing us to break up large high schools into smaller schools was a bust.

 
Then he spent $100 million on inBloom, a corporation he financed that would quietly steal student data and sell it to the corporate world. However, that blew up when parents found out and demanded their children be protected.

 

 

He also quietly admits that the $80 million he spent pushing for teachers to be evaluated on student test scores was a mistake. However, state, federal and local governments often still insist on enacting it despite all the evidence against it. Teachers have literally committed suicide over these unfair evaluations, but it hasn’t stopped Gates from continuing to experiment on the rest of humanity with his money.

 

 

And he’s still at it.

 

His new plan has been to spend $1.7 billion over five years to develop new curriculums and networks of schools, use data to drive continuous improvement, and give out grants to high needs schools to do whatever he says.

 

There’s nothing wrong with someone wanting to help improve public schools. But the best way to do that is to listen to the people most knowledgeable and invested and then give them the tools they need to succeed.

 

But Gates doesn’t play that way. He reads up on a subject and then comes up with his own harebrained schemes.

 

“It would be great if our education stuff worked, but that we won’t know for probably a decade,” he said during a speech at Harvard in 2014.

 

Lots of people know, Bill. Teachers, students, parents, psychologists, professors. You just won’t listen to us.

 

You just insist the rest of us listen to you despite the fact that you have no idea what you’re talking about.

 

You’re rich and you think that makes you better than us.

 

And Guggenheim’s documentary purports to support this position by reference to Gates’ incredible brain.

He is a smart guy. No one would really contradict it.

 

He was a National Merit Scholar who scored a 1590 out of 1600 on his SATs. But he also comes from a very privileged upbringing.

 

He didn’t grow up on the mean streets of urban America while attending a neighborhood public school. He went to an elite preparatory school since he was 13.

 

At Harvard he wasn’t a polymath. He excelled in subjects he cared about, but neglected others that weren’t immediately interesting. According to a college friend:

 

“Gates was a typical freshman in many ways, thrown off pace by the new requirements and a higher level of competition. He skipped classes, spent days on end in the computer lab working on his own projects, played poker all night, and slept in a bed without sheets when he did go
 to bed. Other students recall that he often went without sleep for 18 to 36 hours.”

 

Gates was no genius. He earned good grades in the subjects he liked and significantly less so in classes he didn’t. Nor was his heart in his studies. Gates joined few college activities unless someone dragged him off to a party.

 

School was of little interest to him. He dropped out of Harvard before getting a degree to start his computer software company.

 

Imagine how privileged you have to be to feel empowered to do that!

 

Nothing much was at stake for him at school so he could do whatever he liked with little to no real life consequences.

 

You want to decode Bill’s brain? Look at his family’s wealth. Look at his upbringing. Look at his medical records.

 

But the moral of the story of Bill Gates is not that rich elites should rule the world.

 

It is that everyone – EVERYONE – should practice humility and not deign to think they have all the answers.

 

It is a paean to the need for collaboration to solve problems, the need to listen to all voices and decide the best course together.

 

And more than anything it is a desperate cry for democracy and social goods – not to defeat Trump through Gates’ example – but to lead to real human flourishing by smashing through the fallacies supporting Trump and Gates together.

 

 

 


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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What Kind of A—hole Ransoms School Data?

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You’ve got to be a grade A sleaze bag to steal from kids’ public schools.

 

But that’s exactly what a growing number of slime balls are doing when they hack into schools’ computer networks and hold their data for ransom.

 

Even worse – districts are paying it!

 

Just this week the Rockville Center School District in New York state paid an $88,000 ransom to get back files that had been encrypted by Ryuk ransomware.

 

The district negotiated the payment down from $176,000. School directors only decided to pay after realizing it would cost more to hire another firm to fix the problem.

 

Plus the school had insurance that covered ransomware so it only ended up losing its $10,000 deductible.

 

But this district isn’t the only one being extorted by these basement dweller bandits.

 

In July, alone, schools in New Mexico, Nevada, Louisiana, Oklahoma, Alabama, Connecticut and another in New York suffered similar cyber attacks.

 

Nor do they show any signs of slowing down.

 

A report by cybersecurity firm Recorded Future concluded that attacks on state and local governments have reached an all time high. There were 170 cyber attacks since 2013, of which 22 occurred just this year.

 

After years of budget cuts and downsizing, hackers see local governments like wolves see the oldest and weakest animals in the herd – easy pickings.

 

And schools are particularly vulnerable.

 

They often have small IT departments, antiquated equipment and the cheapest cybersecurity.

 

That’s why in recent months schools in Lake City, Fla.; La Porte County, Indiana; and Riviera Beach, Fla. have all paid ransoms to regain access to their data.

 

If you think about it, data is one of the most financially valuable things schools have.

 

Districts are responsible for students’ privacy in so many ways – records of special services, grades, accommodations, discipline, etc. In addition, schools are large employers with privileged information on their staffs including healthcare, finances, insurance, social security numbers, etc.

 

School directors and administrators have a responsibility to safeguard this information. It’s no wonder, then, that many are giving in to these demands, especially when nefarious nonentities ensure payment is cheaper than any other alternative.

 

Even so, what a monster you have to be to squeeze schools in order to make a buck!

 

Every dollar you blackmail away from district coffers is a dollar not spent on children’s educations.

 

That’s less money for teachers, supplies, classes, tutors, nurses, counselors, etc.

 

You aren’t stealing candy from a baby. You are literally snatching away opportunities for a better future.

 

Given the stakes involved, it shouldn’t be all up to individual districts to stop cyber thieves. The state and federal government should be flexing their muscles to help.

 

One thing they can do is toughen laws against using ransomware.

 

Maryland legislators proposed a law to consider ransomware attacks that resulted in a loss of more than $1,000 as a felony, which would then be subject to a fine of up to $100,000 and 10 years in jail.

 

Current Maryland laws define such attacks that extort less than $10,000 as misdemeanors, while only a breach that results in a loss of greater than $10,000 is a felony.

 

But some argue that there are already federal laws on the books criminalizing ransomware such as The Computer Fraud and Abuse Act and the Electronic Communications Privacy Act. Unfortunately, these laws don’t mention ransomware specifically and may be too broad.

 

Federal and state governments could at least offer grants to update school cybersecurity to make such attacks more difficult. Otherwise, the burden becomes an exponential increase in the cost of doing business for schools which can only be made up by increasing local taxes and/or cutting student services.

 

Another option would be setting up a federal program to step in whenever schools are victims of ransomware. After all, these are public schools! If they were under attack by armed terrorists, the federal government wouldn’t think twice before jumping in.

 

With federal resources, perhaps we could stop all schools from ever paying these ransoms again. Because that’s the only way to truly end these cyber attacks.

 

As long as schools and governments are willing to pay, there will be trolls unscrupulous enough to take advantage.

 

Public services set up to meet the public good should never have to shortchange society so they can meet some fool’s ransom demand.

 

Ransomware has been around since at least 2012. The largest incident so far came last year with the WannaCry attack which infected more than 200,000 computers in about 150 countries, including the United Kingdom’s National Health Service, at a cost of about $4 billion.

 

It’s past time we got serious in dealing with these cowards.

 

As technology increases, data crimes have become more common. In fact, there are far too many legal ways to pilfer private data.

 

Schools, in particular, do a bad job of safeguarding student data by entering into unregulated and nefarious contracts with ed tech companies. Contracts with these companies commonly contain loopholes allowing them to take student data at will and sell it.

 

The situation is worsened by the supply-side economic policies governing public schools. There are already numerous roads to privatize public schools and turn tax dollars into corporate profits. Moreover, the standardized testing industry monetizes learning when their services are mandated by the state and federal government. They conveniently offer to remediate the large numbers of students who don’t score well on these same tests and cash in on both ends.

 

With so many fully legal ways to steal education dollars from practices and policies that actually help kids learn, it’s no surprise where these shadow dwellers get their ideas.

 

As repulsive and selfish as these hackers are, they’re only taking the greed of the testing, privatization and ed tech industry to its logical conclusion.

 

What kind of a—hole ransoms school data?

 

The a—holes we allow to get away with it.


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Blaming Schools for Student Absences is Like Denouncing Doctors for Disease

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If something is wrong with children, it must be the school’s fault.

 

Right?

 

If kids can’t read, write and do ‘rithmetic, the teachers must not have taught ’em right.

 

It couldn’t have anything to do with home life, generational poverty, economic inequality and systemic racism.

 

Except that it almost always does.

 

Inextricably.

 
The fact is children who don’t live in safe, loving homes have much greater difficulty concentrating and caring about academics. Kids with impoverished parents are much more likely to go to underfunded schools and sit in classrooms that are racially segregated.

 

None of that is under the control of teachers or schools, but a focus on high stakes standardized testing, school privatization and dangerously unregulated ed tech hides the problem.

 
It’s not that teachers don’t teach. Inequality, prejudice and privatization – these are the root causes and the reason we do nothing about them generation after generation is that we have an easy scapegoat in the public schools in general and public school teachers in particular.

 
Take student absences.

 

It’s a huge problem.

 

When kids don’t show up to school, they learn less. It’s a simple concept.

 

Yet just four years ago when we had a chance to rewrite the federal law governing public education to actually DO SOMETHING about the problems we’re facing, we dropped the ball. Again!

 

The Every Student Succeeds Act (ESSA) requires states to include five indicators measuring school performance: four based on academic achievement, and a fifth, “non-academic” measure of student success.

 

Most states have adopted chronic student absenteeism as this “fifth indicator.”

 

So we take those five indicators, weight them and combine them together to get overall school scores that are used to sort and rank educational institutions. That way we can prioritize funding to the highest performers and withhold it from the lowest.

 

It’s the same supply side nonsense we’ve been doing for years with a few numbers moved around and given a different name.

 

Schools overflowing with resources serving rich white kids get a sticker. Schools starving for resources serving poor brown kids get a kick.

 

And somehow that’s supposed to help things get better.

 

Don’t get me wrong. Absenteeism is important.

 

Nearly 8 million students missed 15 or more days of school in 2015-16 — an increase from the 6.8 million who missed the same amount in 2013-14, when the federal Department of Education began tracking the data. And there’s a mountain of research that links chronic absenteeism with poor academic performance, delayed graduation, and increased dropout rates.

 

But putting it all on neighborhood schools and local districts is a huge abrogation of responsibility.

 

By and large, public schools do not cause students to be absent. Nor do they have the resources to ensure these students start attending.

 

But we’ve found someone to blame and that’s really all this whole exercise was about in the first place.

 

It’s like denouncing your doctor for your disease. It won’t cure you, but it might make you feel justified as you die.

 

The reasons students are chronically absent have little to do with individual schools.

 

According to Attendance Works, a non-profit focusing on ways to improve student attendance, the main causes of chronic absences are:

 

•Chronic disease or lack of health care and/or dental care.

 

•The need to care for siblings or other family members.

 

•Unmet basic needs: transportation, housing, food, clothing, etc.

 

•Trauma.

 

•Feeling unsafe getting to school.

 

•Academic or social struggles.

 

•Being teased or bullied.

 

•Poor school climate or unsafe schools.

 

•Parents had negative school experience.

 

•Lack of engaging and relevant instruction.

 

•Peer pressure to be with peers out of school vs. in school.

 

•No meaningful relationships with adults in school.

 

•High suspension rates and disproportionate school discipline.

 

Certainly some of these things are under the control of school directors, administrators, and teachers.

 

Schools can and should provide safe ways for students to get to and from school. They should work to reduce bullying and make school a welcoming place for all children. They should provide engaging instruction, fair discipline policies and reach out to parents and the community.

 

But most schools are already doing that – or certainly trying to do that within the confines of their budgets.

 

My own Western Pennsylvania district has been flagged by the Commonwealth for increasing chronic absences. In the state, this is defined as students with 10 or more unexcused absences. We’ve been put on an improvement plan – which basically means an employee at the state Department of Education wagging his finger and telling us to get better or else.

 

However, the overarching problem and solution are easy to see. We are a district without busing.

 

The high school and middle school sit on top of a hill. Students who live in the poorer sections of town at the bottom of the hill have to walk or take public transportation daily to get to school.

 

It’s no wonder that some of them don’t do that every day and stay home instead.

 

However, we serve a mostly impoverished population. Decades ago, school directors decided it would be more cost effective to save money on busing so they could provide greater services for students. Yet as the economy has continued to stagnate and funding has become even more hard to come by, attendance has worsened.

 

So what are we to do? Cut services and add buses?

 

Doing so would mean we’d have to bus students to local charter schools as well, increasing the burden on taxpayers and the amount of muscle and bone we’d have to cut from our own academic programs.

 

It’s all very well and good to have the federal government tell us that attendance is important – but where is the help to improve it?

 

As with everything else in education, we get threats and the promise of economic sanctions but nothing in the way of assistance, aide or intervention.

 

We could be working together to try to solve this and other social issues. We could pool resources and construct social programs to help parents get jobs, set up stable homes, fund robust systems of public transportation, and a host of social services for students and their families such as tutoring, counseling, child care, and continuing education classes. We could end discriminatory policies such as school segregation, school privatization and high stakes standardized testing.

 

But doing so would mean abandoning the blame game and nothing has worked better to shield the rich from paying their fair share than pointing fingers at the less privileged and those who dedicate their lives to help them.

 

In truth, the problems with public schools are rarely the teachers.

 

It’s that society has written them off and refuses to take responsibility for its own role in supporting the next generation.

 


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Gov. Wolf Tries to Stop Charter Schools Gorging on Public School Funding

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Sooey! Here Pig Pig Pig!

 

No one minds that healthy call at the hog farm when it’s time to feed the sows.

 

But taxpayers do take issue with it when it’s the call of the state legislature gathering a different kind of swine around public tax dollars.

 

Pennsylvania’s 180 charter schools gobbled up $1.8 billion last year from the Commonwealth’s public schools.

 

And Gov. Tom Wolf is refusing to let them continue to gorge on public funding meant to nourish everyone.

 
Last week, he took executive action to hold these schools accountable and force them to be more transparent – even if the legislature won’t.

 
Charter schools are publicly financed but privately run. Unlike authentic public schools, charters are often administered by appointed boards. They don’t have to provide the same level of services for children, don’t have to accept all students, can make a profit and don’t even have to be transparent about how they spend their money.

 

 

Yet that money comes from taxpayers.

 

For years fiscal watchdogs have complained that the state’s 22-year-old charter school law needs revising. However, after lining lawmakers pockets with charter school cash, the legislature continually refuses to do anything about it.

 

A few Democrats have offered plans that would increase accountability, but they’ve gotten no traction. And Republican plans have almost exclusively offered to make matters worse by dumping more money in the trough and putting up a thicker curtain so we don’t see the school privatizers eat.

 

So finally Gov. Wolf, a Democrat, took action on his own.

 

He has directed his Department of Education to circumvent the legislature to develop regulations that he says,  “will level the playing field for all taxpayer-funded public schools, strengthen the accountability and transparency of charter and cyber charter schools and better serve all students.”

 

His plan would:

 
•Allow districts to limit student enrollment in charter schools where students aren’t making academic gains.

 

•Require charter schools to stop turning away students based on race, ethnicity, gender, disability, intellectual deficits, lack of athletics or other student characteristics.

 
•Make charter schools as transparent as authentic public schools.

 

 

•Stop conflicts of interests for charter school board members and operating companies so that they can’t make decisions on behalf of the school that would enrich themselves, their families and/or friends.

 
•Make charters submit to financial audits to state regulators, make them publicly bid contracts for supplies and services and use fair contracting practices.

 
•Provide greater oversight of charter school management companies so they can’t profit off of the students enrolled in the schools they’re managing.

 
•Seek more information about how prospective charters will be run in a new model state application to be used when charters seek to open up shop or renew existing charters.

 

 

•Require charters to accurately document their costs.

 
•Prevent charters from overcharging for services they provide to students.

 

•Make charters pay to cover the state’s costs for implementing the charter school law.

 

•Recoup money from charter schools for the time and services the state provides when it reviews applications, distributes payments and provides legal and administrative support to them.

 
It’s a bold step for a governor, but apparently Wolf is tired of waiting on a dysfunctional legislature to actually legislate.

 

The problem is Wolf has to be more than a governor. He has to be a goalie.

 

The state House and state Senate are deeply gerrymandered and controlled by Republicans.

 
Every year, lawmakers pass mostly crap bills written by Koch Brothers proxies only to be vetoed by Wolf.

 

 

Occasionally, the GOP convinces enough right-leaning Democrats to go with them and Wolf can’t or won’t veto the bills.

 
And that’s pretty much how things work in Harrisburg.

 

However, this time Wolf wasn’t content to just guard the net. He actually took the puck down the ice, himself, and made a slap shot on the opposing team.

 

Can he do this? Is he still operating within the law?

 

Time will tell – though I’d argue that in the absence of legislative action, he is within his job description.

 

Moreover, this is only a first step.

 

Wolf, himself, has said that more needs to be done by the legislature. Even after his executive actions, much needs to be done to make charter schools function properly in the Commonwealth.

 

Specifically, Wolf asked the legislature to pass a moratorium on new cyber charter schools, cap enrollment in low-performing charter schools until they improve, subject charter management companies to the same transparency rules that districts must follow, and create a fair, predictable and equitable charter school funding formula.

 

I’d like them to go even further.

 

Frankly, I’d like to see charter schools ended as educational institutions.
Why should the public pay for schools that aren’t locally controlled? Why pay for privatized schools at all?

 

I suppose if there are some that are functioning well for students, they can be grandfathered in, but they should be funded separately. When two districts have to compete for the same funding, the students lose.

 

At least, we should not be opening up new charters. The public should not be in the business of funding privatized schools.

 

I am grateful to Gov. Wolf for finally having the guts to stand up to this powerful industry.

 

The state exists to further the public good – not enrich private corporations like those running many charter schools.

 

It’s time we admitted that charter schools are a failed experiment and shut them down.

 

It’s time to block these pigs from chowing down on public funding without public oversight.

 


See how much each charter school gets of Commonwealth tax dollars.


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Who’s Trading Public School Funding for a Tax Credit?

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Ever wonder why our roads and public school buildings are crumbling?

 

Ever wonder why schools can’t afford books, buses and nurses?

 

Ever wonder why classroom teachers are forced to buy paper, pencils and supplies for their students out of pocket?

 

Because businesses like Giant Eagle, American Eagle Outfitters, and Eat’n Park aren’t paying their fair share.

 

It’s a simple concept – you belong to a society, you should help pay for the roads, bridges, schools, etc. that everyone needs to keep that society healthy.

 

After all, as a stockholder, CEO or business owner, you directly benefit from that society. If it didn’t exist, you wouldn’t have nearly as many customers – if any.

 

Many of us learned this kind of stuff in kindergarten or grade school.

 
But ironically programs that allow businesses to avoid paying their fair share are being used to short change many of those same kindergarten and grade schools.

 

In Pennsylvania, one such program is called the Educational Improvement Tax Credit (EITC), and everyone from local banks to Duquesne Light to UPMC healthcare providers are using it to lower their taxes while stealing from the public school cookie jar.

 
Here’s how it works.

 
If you expect a tax bill of $X at the end of the year, you can donate that same amount to the state for the purpose of helping parents pay off enrollment at a private or religious school for their children. Then you get between 75-90% of that donation back.

 

So if your tax bill is $100 and you donate $100, you can get back $90 – reducing your total tax bill to a mere 10 bucks.

 

Heck! Since this money is classified as a “donation” you can even claim it on your taxes and get an additional refund – even to the point where you end up making money on the deal! Pennsylvania even allows a “triple dip” – so you get the EITC tax credit, a reduction in your taxable income, and a reduction in your federal taxable income. We actually pay you to shortchange us on your taxes!

 

Now I’m oversimplifying a bit since you can only use the EITC for up to $750,000 a year, but it’s still a sweet deal for businesses. It just really hurts nearly everyone else because it reduces the state’s general fund – by $124 million last year, alone.

 

When we give away hundreds of millions of dollars every year to religious and parochial schools, we have less money to spend on public schools, roads and all other services that benefit the majority of our citizens – especially the poor who rely more heavily on these services.

 
So why doesn’t the state just budget this amount of money directly to religious and private schools instead of ransacking the general fund after businesses donate it to the tax incentive program?

 

Because it’s illegal to give taxpayer dollars to religious and private schools. The establishment clause of the First Amendment forbids it.

 

The founders of our country didn’t want a state religion with schools teaching theological propaganda like we had in Great Britain. Moreover, they demanded tax dollars be spent with accountability to the whole public – something you cannot do in a private or religious school which isn’t set up for everyone but only those who choose and can afford to go there.

 

However, some smart ass thought of an alleged loophole. He said that if tax money is turned into a tax credit, it’s no longer tax money and it doesn’t violate the rules to spend it on religious and private schools.

 

So this is a fiscal sleight of hand meant to give businesses a tax break while boosting private schools.

 
Who’s guilty of hiding behind this loophole to bolster their bottom line while short changing ours?

 

Probably a lot of businesses you know.

 

Thankfully, their donations to the EITC Program are a matter of public record as is how much money returned to them as savings.

 

You can find a handy database of state businesses right HERE searchable by county compiled by Pennsylvania Capital-Star.

 

 

I happen to live in Allegheny County in the Pittsburgh region – the second highest area of the Commonwealth for these tax dodge…. I mean credits.

 

 

Across the county in 2017-18 (the most recent year for which data is available), Allegheny County businesses donated $15,741,544. They got back $14,180,261 in tax credits.

 
A quick search came up with these noteworthy businesses:

 
Fatheads – the Southside sports bar along Carson Street in Pittsburgh
Contribution: $ 10,000
Tax Credit: $ 9,000

 
AEO Management, Co. 
(American Eagle Outfitters Corporate Office in the South Side, Pittsburgh)
Contribution: $ 350,000
Tax Credit: $ 315,000

 
Apex Diamonds, Inc. (A Pittsburgh jeweler)
Contribution: $ 149,000
Tax Credit: $ 134,100

 
Cochran Motors, Inc. (car dealership in Monroeville)
Donation: $ 100,000
Tax Credit: $ 90,000

 
Deer Leasing Co. (freight and cargo business) THREE ENTRIES:
Donation: $ 444,444
Tax Credit: $ 400,000

 

Deer Leasing Co.
Donation: $ 221,111
Tax Credit: $ 200,000

 

Deer Leasing Co.
Donation: $ 388,888
Tax Credit: $ 349,999

 
-Dollar BankTWO ENTRIES
Donation: $ 225,000
Tax Credit: $ 202,500

 

Dollar Bank
Donation: $ 400,000
Tax Credit: $ 360,000

 
Duquesne Light CompanyTHREE ENTRIES
Donation: $ 10,000
Tax Credit $ 10,000
(So 100% return on investment!?)

 

Duquesne Light Company
Donation: $ 50,000
Tax Credit: $ 45,000

 

Duquesne Light Company
Donation: $ 240,000
Tax Credit: $ 216,000

 

-Eat’n Park Hospitality Group, Inc. (Corporate headquarters in Homestead)
Donation: $ 25,000
Tax Credit: $ 23,500

 

-Federated Advisory Services Company (Asset management company) – THREE ENTRIES
Donation: $ 111,111
Tax Credit: $ 100,000

 

Federated Investment Counseling
Donation: $ 111,111
Tax Credit: $ 100,000

 

Federated Investment Counseling
Donation: $ 222,222
Tax Credit: $ 200,000

 
Giant Eagle, Inc.TWO ENTRIES
Donation: $ 833,333
Tax Credit: $ 750,000

 

Giant Eagle, Inc.
Donation: $ 221,111
Tax Credit: $ 200,000

 
Glimcher Brokerage, Inc. (Real estate company) – TWO ENTRIES
Donation: $ 380,000
Tax Credit: $ 342,000

 

Glimcher Group, Inc.
Donation: $ 300,000
Tax Credit: $ 270,000

 
HM Health Insurance Company (Camp Hill, Pa) – THREE ENTRIES
Donation: $ 50,000
Tax Credit: $ 45,000

 

HM Health Insurance Company
Donation: $ 243,333
Tax Credit: $ 219,000

 

HM Health Insurance Company
Donation: $ 165,556
Tax Credit: $ 150,000

 
PNC Bank, N.A. – TWO ENTRIES
Donation: $ 685,000
Tax Credit: $ 616,500

 

PNC Bank, N.A.
Donation: $ 148,303
Tax Credit: $ 133,500

 
Rohrich Imports, Inc. (Luxury Pittsburgh Car Dealership)
Donation: $ 60,000
Tax Credit: $ 54,000

 
The Buncher Company (property management company) – THREE ENTRIES
Donation: $ 416,667
Tax Credit: $ 375,000

 

The Buncher Company
Donation: $ 416,667
Tax Credit: $ 375,000

 

The Buncher Company
Donation: $ 221,111
Tax Credit: $ 200,000

 

The Huntington National BankTWO ENTRIES
Donation: $ 549,556
Tax Credit: $ 494,600

 

The Huntington National Bank
Donation: $ 111,111
Tax Credit: $ 100,000

 
UnitedHealthcare of Pennsylvania, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

-UPMC Diversified Services, Inc. (Healthcare provider) – SIX ENTRIES
Donation: $ 200,000
Tax Credit: $ 180,000

 
UPMC Diversified Services, Inc.
Donation: $ 200,000
Tax Credit: $ 181,000

 

UPMC Diversified Services, Inc.
Donation: $ 190,000
Tax Credit: $ 171,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 181,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

But this leaves out the largest and shadiest group donating to the EITC Program – Limited Liability Corporations (LLCs).

 

 

These “special purpose entities” are set up to represent individual donors so they can more easily divert tax dollars to private and parochial schools.

 

LLCs represent hundreds of individuals who allow the LLC to donate on their behalf and then they get the tax credits passed back to them. It’s a way to encourage the wealthy to get the tax cut and support school privatization without all the hassle of doing the paperwork themselves.

 

And most (if not all) of these LLCs are set up by religious organizations to boost their own parochial schools.

 

For instance, Business Leadership Organized for Catholic Schools is perhaps the largest LLC receiving EITC funds.

 

Across the state, these organization made $15.6 million in donations and claimed $14 million in tax credits.

 

In Allegheny County, the largest are CASTA-SOS LLC and Pittsburgh Jewish Scholarship LLC.

 

CASTA was set up by the Catholic Diocese of Pittsburgh. Pittsburgh Jewish Scholarship benefits Jewish schools in the city.

 

Here’s how much they took from the state general fund last year:

 

CASTA-SOS I LLC
Donation: $ 509,500
Tax Credit: $ 458,550

 

CASTA-SOS II LLC
Donation: $ 460,890
Tax Credit: $ 414,801

 
Pittsburgh Jewish Scholarship I LLC
Donation: $ 675,250
Tax Credit: $ 607,725

 

Pittsburgh Jewish Scholarship II LLC
Donation: $ 750,000
Tax Credit: $ 675,000

 

EITC money went to almost 1,170 different organizations across the state. A fraction were YMCA’s, the Salvation Army and preschools. But the vast majority were private and religious schools.

 

Defenders of the project claim this money goes to fund “scholarships” for poor children to help defray the costs of enrollment at these schools.

 

However, a family making as much as $100,608 per year can qualify for an EITC scholarship for their child. A family with two children could make up to $116,216 and still qualify.

 

Consider this: one of the largest single recipients of this money in Allegheny County was the exclusive Shady Side Academy in Pittsburgh. The private secular school took in almost $1 million last year so that its wealthy students didn’t have to spend as much on enrollment.

 

Why are we subsidizing the rich?

 

Why are we robbing the poor to do so?

 

Why are we using public money to fund the teaching of climate denial, creationism, indoctrination in religious and political ideologies?

 

The short answer – our politicians are spineless and indebted to the people this benefits.

 

Just this summer, the Pennsylvania legislature AGAIN increased the limit for the program by an additional $25 million.

 

That’s the pattern. Every year, the Republican-controlled (and heavily gerrymandered) legislature can’t get their regressive policies passed Democratic Gov. Tom Wolf. They need some Democrats to support their spending priorities. So they entice right-leaning Democrats with increases to these tax incentive programs in order to reach compromises.

 

The result – every year we allow more tax dollars to fly away to private and religious schools while further undermining funding for public schools.

 

But it could have been worse. Earlier in the year, the legislature passed a measure to increase the EITC Program by $100 million. Thankfully it was vetoed by Gov. Wolf. Unfortunately, he let the $25 million increase get through.

 

This is a problem that is not going away.

 

We need to let our lawmakers know in no uncertain terms that we do NOT support these programs. And this isn’t just Republican lawmakers. We especially need to pressure Democrats and even run challengers to those who are not progressive enough in the primaries.

 

And we need to let businesses who partake of the smorgasbord of tax credits that doing so will lose them our business.

 

If we want to stop theft disguised as “tax credits,” we have to start hitting these businesses where it hurts – in the pocketbook.

 

Because they certainly don’t feel it in their hearts.


 

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