The Nation
This article was reported in partnership with The Investigative Fund at The Nation Institute.
http://www.thenation.com/article/164651/how-online-learning-companies-bought-americas-schools?page=full
If the national movement to “reform” public education through vouchers,
charters and privatization has a laboratory, it is Florida. It was one
of the first states to undertake a program of “virtual schools”—charters
operated online, with teachers instructing students over the
Internet—as well as one of the first to use vouchers to channel taxpayer
money to charter schools run by for-profits.
But as recently as last year, the radical change envisioned by school
reformers still seemed far off, even there. With some of the movement’s
cherished ideas on the table, Florida Republicans, once known for
championing extreme education laws, seemed to recoil from the fight. SB
2262, a bill to allow the creation of private virtual charters, vastly
expanding the Florida Virtual School program, languished and died in
committee. Charlie Crist, then the Republican governor, vetoed a bill to
eliminate teacher tenure. The move, seen as a political offering to the
teachers unions, disheartened privatization reform advocates. At one
point, the GOP’s budget proposal even suggested a cut for state aid
going to virtual school programs.
Lamenting this series of defeats, Patricia Levesque, a top adviser to
former Governor Jeb Bush, spoke to fellow reformers at a retreat in
October 2010. Levesque noted that reform efforts had failed because the
opposition had time to organize. Next year, Levesque advised, reformers
should “spread” the unions thin “by playing offense” with decoy
legislation. Levesque said she planned to sponsor a series of statewide
reforms, like allowing taxpayer dollars to go to religious schools by
overturning the so-called Blaine Amendment, “even if it doesn’t pass…to
keep them busy on that front.” She also advised paycheck protection, a
unionbusting scheme, as well as a state-provided insurance program to
encourage teachers to leave the union and a transparency law to force
teachers unions to show additional information to the public. Needling
the labor unions with all these bills, Levesque said, allows certain
charter bills to fly “under the radar.”
If Levesque’s blunt advice sounds like that of a veteran lobbyist,
that’s because she is one. Levesque runs a Tallahassee-based firm called
Meridian Strategies LLC, which lobbies on behalf of a number of
education-technology companies. She is a leader of a coalition of
government officials, academics and virtual school sector companies
pushing new education laws that could benefit them.
But Levesque wasn’t delivering her hardball advice to her lobbying
clients. She was giving it to a group of education philanthropists at a
conference sponsored by notable charities like the Bill and Melinda
Gates Foundation and the Michael and Susan Dell Foundation. Indeed,
Levesque serves at the helm of two education charities, the Foundation
for Excellence in Education, a national organization, and the Foundation
for Florida’s Future, a state-specific nonprofit, both of which are
chaired by Jeb Bush. A press release from her national group says that
it fights to “advance policies that will create a high quality digital
learning environment.”
Despite the clear conflict of interest between her lobbying clients
and her philanthropic goals, Levesque and her team have led a quiet but
astonishing national transformation. Lobbyists like Levesque have made
2011 the year of virtual education reform,
at last achieving sweeping legislative success
by combining the financial firepower of their corporate clients with
the seeming legitimacy of privatization-minded school-reform think tanks
and foundations. Thanks to this synergistic pairing, policies designed
to boost the bottom lines of education-technology companies are cast as
mere attempts to improve education through technological enhancements,
prompting little public debate or opposition. In addition to Florida,
twelve states have expanded virtual school programs or online course
requirements this year. This legislative juggernaut has coincided with a
gold rush of investors clamoring to get a piece of the K-12 education
market. It’s big business, and getting bigger: One study estimated that
revenues from the K-12 online learning industry will grow by 43 percent
between 2010 and 2015, with revenues reaching $24.4 billion.
In Florida, only fourteen months after Crist handed a major victory
to teachers unions, a new governor, Rick Scott, signed a radical bill
that could have the effect of replacing hundreds of teachers with
computer avatars. Scott, a favorite of the Tea Party, appointed Levesque
as one of his education advisers. His education law expanded the
Florida Virtual School to grades K-5, authorized the spending of public
funds on new for-profit virtual schools and created a requirement that
all high school students take at least one online course before
graduation.
“I’ve never seen it like this in ten years,” remarked Ron Packard,
CEO of virtual education powerhouse K12 Inc., on a conference call in
February. “It’s almost like someone flipped a switch overnight and so
many states now are considering either allowing us to open private
virtual schools” or lifting the cap on the number of students who can
use vouchers to attend K12 Inc.’s schools. Listening to a K12 Inc.
investor call, one could mistake it for a presidential campaign strategy
session, as excited analysts read down a list of states and predict
future victories.
Good for Business; Kids Not So Much
While most education reform advocates cloak their goals in the
rhetoric of “putting children first,” the conceit was less evident at a
conference in Scottsdale, Arizona, earlier this year.
Standing at the lectern of Arizona State University’s SkySong
conference center in April, investment banker Michael Moe exuded
confidence as he kicked off his second annual confab of education
startup companies and venture capitalists. A press packet cited reports
that rapid changes in education could unlock “immense potential for
entrepreneurs.” “This education issue,” Moe declared, “there’s not a
bigger problem or bigger opportunity in my estimation.”
Moe has worked for almost fifteen years at converting the K-12
education system into a cash cow for Wall Street. A veteran of Lehman
Brothers and Merrill Lynch, he now leads an investment group that
specializes in raising money for businesses looking to tap into more
than $1 trillion in taxpayer money spent annually on primary education.
His consortium of wealth management and consulting firms, called Global
Silicon Valley Partners, helped K12 Inc. go public and has advised a
number of other education companies in finding capital.
Moe’s conference marked a watershed moment in school privatization.
His first “Education Innovation Summit,” held last year, attracted about
370 people and fifty-five presenting companies. This year, his
conference hosted more than 560 people and 100 companies, and featured
luminaries like former DC Mayor Adrian Fenty and former New York City
schools chancellor Joel Klein, now an education executive at News
Corporation, a recent high-powered entrant into the for-profit education
field. Klein is just one of many former school officials to cash out.
Fenty now consults for Rosetta Stone, a language company seeking to
expand into the growing K-12 market.
As Moe ticked through the various reasons education is the next big
“undercapitalized” sector of the economy, like healthcare in the 1990s,
he also read through a list of notable venture investment firms that
recently completed deals relating to the education-technology sector,
including Sequoia and Benchmark Capital. Kleiner Perkins, a major
venture capital firm and one of the first to back Amazon.com and Google,
is now investing in education technology, Moe noted.
The press release for Moe’s education summit promised attendees a
chance to meet a set of experts who have “cracked the code” in
overcoming “systemic resistance to change.” Fenty, still recovering from
his loss in the DC Democratic primary, urged attendees to stand up to
the teachers union “bully.” Jonathan Hage, CEO of Charter Schools USA,
likened the conflict to war, according to a summary posted on the
conference website. “There’s an air game,” said Hage, “but there’s also a
ground game going on.” “Investors are going to have to support”
candidates and “push back against the pushback.” Carlos Watson, a former
cable news host now working as an investment banker for Goldman Sachs
specializing in for-profit education, guided a conversation dedicated
simply to the politics of reform.
Sponsors of the event ranged from various education reform groups
funded by hedge-fund managers, like the nonprofit Education Reform Now,
to ABS Capital, a private equity firm with a stake in
education-technology companies like Teachscape. At smaller breakout
sessions, education enterprises made their pitches to potential
investors.
Another sponsor, a group called School Choice Week, was launched last
year as a public relations gimmick to take advantage of the opportunity
for rapid education reforms. Although it is billed as a network of
students and parents, School Choice Week is one of the many
corporate-funded tactics to press virtual school reforms. The first
School Choice Week campaign push earlier this year featured highly
produced press packets, sample letters to the editor, a sign in Times
Square and rallies for virtual and charter schools organized with help
from the Koch brothers’ Americans for Prosperity. The blitz got positive
press coverage, providing “grassroots” cover for newly elected
politicians who made school privatization their first priority.
A combination of factors has made this year what Moe calls an
“inflection point” in the march toward public school privatization. For
one thing, recession-induced fiscal crises and austerity have pressured
states to cut spending. In some cases, as in Florida, where educating
students at the Florida Virtual School costs nearly $2,500 less than at
traditional schools, such reform has been sold as a budget fix. At the
same time, the privatization push has gone hand in hand with the
ratcheting up of attacks on teachers unions by partisan groups, like
Karl Rove’s American Crossroads and Americans for Prosperity, seeking to
weaken the union-backed Democrats in the 2012 election. All of this has
set the stage for education industry lobbyists to achieve an
unprecedented expansion in for-profit elementary through high school
education.
From Idaho to Indiana to Florida, recently passed laws will radically
reshape the face of education in America, shifting the responsibility
of teaching generations of Americans to online education businesses,
many of which have poor or nonexistent track records. The rush to
privatize education will also turn tens of thousands of students into
guinea pigs in a national experiment in virtual learning—a relatively
new idea that allows for-profit companies to administer public schools
completely online, with no brick-and-mortar classrooms or traditional
teachers.
* * *
Like many “education entrepreneurs,” Moe remains a player in the
education reform movement, pushing policies that have the potential to
benefit his clients. In addition to advising prominent politicians like
Senator John McCain, Moe is a board member of the Center for Education
Reform, a pro-privatization think tank that issues policy papers and ads
to influence the debate. Earlier this year, the group dropped $70,000
on an ad campaign in Pennsylvania comparing those who oppose a new
measure to expand vouchers to segregationist Alabama Governor George
Wallace, who blocked African-American children from entering white
schools.
Moe isn’t the only member of the Center for Education Reform with a
profound conflict of interest. CER president Jeanne Allen doubles as the
head of TAC Public Affairs, a government relations firm that has
represented several top education for-profits. Allen, whose clients have
included Kaplan Education and Charter Schools USA, served as transition
adviser to Pennsylvania Governor Tom Corbett on education reform.
Corbett, a Republican who rode the Tea Party election wave in 2010,
supports a major voucher expansion that is working its way through the
state legislature. The expansion would be a windfall for companies like
K12 Inc., which currently operates one Pennsylvania school under the
limited charter law on the books. According to disclosures reported in
Business Week,
Pennsylvania’s Agora Cyber Charter School—K12 Inc.’s online school,
which allows students to take all their courses at home using a
computer—generated $31.6 million for K12 Inc. in the past academic year.
Thirteen other states have enacted laws to expand or initiate
so-called school choice programs this year. Indiana Governor Mitch
Daniels has pushed the hardest, enacting a law that removes the cap on
the number of charter schools in his state, authorizes all universities
to register charters and expands an existing voucher program in the
state for students to attend private and charter schools (in some cases
managed by for-profit companies). Critics note that Daniels’s law allows
public money to flow to religious institutions as well. Twenty-seven
other states, in addition to Pennsylvania, have voucher expansion laws
pending. And states like Florida are embracing tech-friendly education
reform to require that students take online courses to graduate. In
Idaho this November, the state board of education approved a
controversial plan to require at least two online courses for
graduation.
“We think that’s so important because every student, regardless of
what they do after high school, they’ll be learning online,” said Tom
Vander Ark, a prominent online education advocate, on a recently
distributed video urging the adoption of online course requirements.
Vander Ark, a former executive director of education at the influential
Bill and Melinda Gates Foundation, now lobbies all over the country for
the online course requirement. Like Moe, he keeps one foot in the
philanthropic world and another in business. He sits on the board of
advisors of Democrats for Education Reform and is partner to an
education-tech venture capital company, Learn Capital. Learn Capital
counts AdvancePath Academics, which offers online coursework for
students at risk of dropping out, as part of its investment portfolio.
When Vander Ark touts online course requirements, it is difficult to
discern whether he is selling a product that could benefit his
investments or genuinely believes in the virtue of the idea.
To be sure, some online programs have potential and are necessary in
areas where traditional resources aren’t available. For instance, online
AP classes serve rural communities without access to qualified
teachers, and there are promising efforts to create programs that adapt
to the needs of students with special learning requirements. But by and
large, there is no evidence that these technological innovations merit
the public resources flowing their way. Indeed, many such programs
appear to be failing the students they serve.
A recent study of virtual schools in Pennsylvania conducted by the
Center for Research on Education Outcomes at Stanford University
revealed that students in online schools performed significantly worse
than their traditional counterparts. Another study, from the University
of Colorado in December 2010, found that only 30 percent of virtual
schools run by for-profit organizations met the minimum progress
standards outlined by No Child Left Behind, compared with 54.9 percent
of brick-and-mortar schools. For White Hat Management, the politically
connected Ohio for-profit operating both traditional and virtual charter
schools, the success rate under NCLB was a mere 2 percent, while for
schools run by K12 Inc., it was 25 percent. A major review by the
Education Department found that policy reforms embracing online courses
“lack scientific evidence” of their effectiveness.
“Why are our legislators rushing to jump off the cliff of cyber
charter schools when the best available evidence produced by independent
analysts show that such schools will be unsuccessful?” asked Ed Fuller,
an education researcher at Pennsylvania State University, on his blog.
The frenzy to privatize America’s K-12 education system, under the
banner of high-tech progress and cost-saving efficiency, speaks to the
stunning success of a public relations and lobbying campaign by
industry, particularly tech companies. Because of their campaign
spending, education-tech interests are major players in elections. In
2010, K12 Inc. spent lavishly in key races across the country, including
a last-minute donation of $25,000 to Idahoans for Choice in Education, a
political action committee supporting Tom Luna, a self-styled Tea Party
school superintendent running for re-election. Since 2004, K12 Inc.
alone has spent nearly $500,000 in state-level direct campaign
contributions, according to the National Institute on Money in State
Politics. David Brennan, Chairman of White Hat Management, became the
second-biggest Ohio GOP donor, with more than $4.2 million in
contributions in the past decade.
The Alliance for School Choice, a national education reform group,
set up PACs in several states to elect state lawmakers. According to
Wisconsin Democracy Campaign, American Federation for Children spent
$500,000 in media in the lead-up to Wisconsin’s recall elections. AFC
shares leaders, donors, and a street address with ASC. Bill Oberndorf,
one of the main donors to the group, had been associated with Voyager
Learning, an online education company, for years. A few months ago,
Cambium Learning, the parent company of Voyager, paid Oberndorf’s
investment firm $4.9 million to buy back Oberndorf’s stock. Cambium
currently offers a fleet of supplemental education tools for school
districts. With the recent acquisition of Class.com, a smaller online
learning business, the company announced its entry into the virtual
charter school and online course market.
Allies of the Right
Lobbyists for virtual school companies have also embedded themselves
in the conservative infrastructure. The International Association for
Online Learning (iNACOL), the trade association for EdisonLearning,
Connections Academy, K12 Inc., American Virtual Academy, Apex Learning
and other leading virtual education companies, is a case in point. A
former Bush appointee at the Education Department, iNACOL president
Susan Patrick traverses right-leaning think tanks spreading the gospel
of virtual schools. In the past year, she has addressed the Atlas
Economic Research Foundation, a group dedicated to setting up
laissez-faire nonprofits all over the world, as well as the American
Enterprise Institute in Washington.
Two pivotal conservative organizations have helped Patrick in her
campaigns for virtual schools: the American Legislative Exchange Council
and the State Policy Network. SPN nurtures and establishes state-based
policy and communication nonprofits with a right-wing bent. ALEC, the
thirty-eight-year-old conservative nonprofit, similarly coordinates a
fifty-state strategy for right-wing policy. Special task forces composed
of corporate lobbyists and state lawmakers write “template” legislation
[see John Nichols, “ALEC Exposed,” August 1/8]. Since 2005, ALEC has
offered a template law called “The Virtual Public Schools Act” to
introduce online education. Mickey Revenaugh, an executive at
virtual-school powerhouse Connections Learning, co-chairs the education
policy–writing department of ALEC.
At SPN’s annual conference in Cleveland last year, held two months
before the midterm elections, the think tank network adopted a new push
for education reform, specifically embracing online technology and
expanding vouchers. Patrick opened the event and led a session about
virtual schools with Anthony Kim, president of the virtual-school
business Education Elements.
SPN has faced accusations before that it is little more than a
coin-operated front for corporations. For instance, SPN and its
affiliates receive money from polluters, including infamous
petrochemical giant Koch Industries, allegedly in exchange for
aggressive promotion of climate denial theories. But SPN’s conference
had less to do with policy than with tactics. Kyle Olson, a Republican
operative infamous in Michigan and other states for his confrontational
attacks on unionized teachers, gave a presentation on labor reform in
K-12 education. Stanford Swim, heir to a Utah-based investment fortune
and head of a traditional-values foundation, ran a workshop at the
conference on creating viral videos to advance the cause. He said policy
papers wouldn’t work. Tell your scholars, “Sorry, this isn’t a white
paper,” Swim advised. “You gotta go there,” he continued, “and it’s
because that’s where the audience is.” “If it’s vulgar, so what?” he
added.
Since the conference, SPN’s state affiliates have taken a lead role
in pushing virtual schools. Several of its state-based affiliates, like
the Buckeye Institute in Ohio, set up websites claiming that unions—the
only real opposition to ending collective bargaining and the expansion
of charter school reforms—led to overpaid teachers and budget deficits.
In Wisconsin, the MacIver Institute’s “news crew” laid the groundwork
for Governor Walker’s assault on collective bargaining by creating news
reports denouncing protesters and promoting the governor. In March,
while busting the teachers unions in his state, Walker lifted the cap on
virtual schools and removed the program’s income requirements.
State Representative Robin Vos, the Wisconsin state chair for ALEC,
sponsored the bill codifying Walker’s radical expansion of online,
for-profit schools. Vos’s bill not only lifts the cap but also makes
new, for-profit virtual charters easier to establish. As the Center for
Media and Democracy, a Madison-based liberal watchdog, notes, the bill
closely resembles legislative templates put forward by ALEC.
Although SPN’s unique contribution to the debate has been clever web
videos and online smear sites, the group’s affiliates have also
continued the traditional approach of policy papers. In Washington
State, the Freedom Foundation published “Online Learning 101: A Guide to
Virtual Public Education in Washington”; Nebraska’s Platte Institute
released “The Vital Need for Virtual Schools in Nebraska”; and the
Sutherland Institute, a Utah-based SPN affiliate, equipped lawmakers
with a guide called “Thinking Outside the Building: Online Education.”
SPN think tanks in Maine, Maryland and other states have pressed virtual
school reforms. Patrick visited SPN state groups and gave pep talks
about how to sell the issue to lawmakers.
Meanwhile, ALEC has continued to slip laws written by education-tech
lobbyists onto the books. In Tennessee, Republican State Representative
Harry Brooks didn’t even bother changing the name of ALEC’s Virtual
Public Schools Act before introducing it as his own legislation. Asked
by the Knoxville
News Sentinel’s Tom Humphrey where he got the
idea for the bill, Brooks readily admitted that a K12 Inc. lobbyist
helped him draft it. Governor Bill Haslam signed Brooks’s bill into law
in May. The statute allows parents to apply nearly every dollar the
state typically spends per pupil, almost $6,000 in most areas, to
virtual charter schools, as long as they are authorized by the state.
SPN’s fall 2010 conference featured the man perhaps happiest with the
explosion in virtual education: Jeb Bush. “I have a confession to
make,” he said with grin. “I am a real policy geek, and this is like the
epicenter of geekdom.” Bush shared his experiences initiating some of
the nation’s first for-profit and virtual charter school reforms as the
governor of Florida, acknowledging his policy ideas came from some in
the room. (The local SPN affiliate in Tallahassee is the James Madison
Institute.)
Bush: Man Behind the Virtual Curtain
Jeb Bush campaigned vigorously in 2010 to expand such reforms, with
tremendous success. About a month after the election, he unveiled his
road map for implementing a far-reaching ten-point agenda for virtual
schools and online coursework. Former West Virginia Governor Bob Wise, a
Democrat, has barnstormed the country to encourage lawmakers to adopt
Bush’s plan, which calls for the permanent financing of
education-technology reforms, among other changes.
In
one promotional video, Wise says it is “not only about the content” of
the online courses but the “process” of students becoming acquainted
with learning on the Internet.
The key pillar of Bush’s plan is to make sure virtual education isn’t
just a new option for taxpayer money but a requirement. And several
states, like Florida, have already adopted online course requirements.
As Idaho Republicans faced a public referendum on their online course
requirement rule last summer, Bush arrived in the state to show his
support. “Implemented right, you’re going to see rising student
achievement,” said Bush, praising Idaho Governor Butch Otter and school
superintendent Tom Luna, who was elected with campaign donations from
the online-education industry. Bush also claimed that making high school
students take online classes would “put Idaho on the map” as a “digital
revolution takes hold.” Bush was in Michigan in June to testify for
Governor Rick Snyder’s suite of education reform ideas, which include
uncapped expansion of virtual schools, and he was back in the state in
July to continue to press for reforms.
In August, at ALEC’s annual conference in New Orleans, the education
task force officially adopted Bush’s ten elements agenda. Mickey
Revenaugh, the virtual school executive overseeing the committee,
presided over the vote endorsing the measure. But when does Bush’s
advocacy, typically reported in the press as the work of a former
governor with education experience advising the new crop of Republicans,
cross the threshold into corporate lobbying?
The nonprofit behind this digital push, Bush’s Foundation for
Excellence in Education, is funded by online learning companies: K12
Inc., Pearson (which recently bought Connections Education), Apex
Learning (a for-profit online education company launched by Microsoft
co-founder Paul Allen), Microsoft and McGraw-Hill Education among
others. The advisory board for Bush’s ten digital elements agenda reads
like a Who’s Who of education-technology executives, reformers,
bureaucrats and lobbyists, including Michael Stanton, senior vice
president for corporate affairs at Blackboard; Karen Cator, director of
technology for the Education Department; Jaime Casap, a Google executive
in charge of business development for the company’s K-12 division;
Shafeen Charania, who until recently served as marketing director of
Microsoft’s education products department; and Bob Moore, a Dell
executive in charge of “facilitating growth” of the computer company’s
K-12 education practice.
Like other digital reform advocates, the Bush nonprofit is also
supported by Microsoft founder Bill Gates’s foundation. The fact that a
nonprofit that receives funding from both the Gates Foundation and
Microsoft pressures states to adopt for-profit education reforms may
raise red flags with some in the philanthropy community, as Microsoft,
too, has moved into the education field. The company has tapped into the
K-12 privatization expansion by supplying a range of products, from
traditional Windows programs to servers and online coursework platforms.
It also contracts with Florida Virtual School to provide cloud computer
solutions. Similarly, Dell is seeking new opportunities in the K-12
market for its range of desktop products, while the Michael and Susan
Dell Foundation, the charitable nonprofit founded by Dell’s CEO,
promotes neoliberal education reforms.
Through Bush, education-technology companies have found a shortcut to
encourage states to adopt e-learning reforms. Take his yearly National
Summit on Education Reform, sponsored by the Foundation for Excellence
in Education.
At the most recent summit, held in San Francisco in mid-October, a
group of more than 200 state legislators and state education department
officials huddled in a ballroom over education-technology strategy. Rich
Crandall, a state senator from Arizona, said to hearty applause that he
had developed a local think tank to support the virtual school reforms
he helped usher into law. Toward the end of the discussion, Vander Ark,
acting as an emcee, walked around the room acknowledging lawmakers who
had recently passed pro–education tech laws this year. He handed the
microphone to Kelli Stargel, a state representative from Florida, who
stood up and boasted of creating “virtual charter schools, so we can
have innovation in our state.”
Throughout the day, lawmakers mingled with education-technology
lobbyists from leading firms, like Apex Learning and K12 Inc. Some of
the distance learning reforms were taught in breakout sessions, like one
called “Don’t Let a Financial Crisis Go to Waste,” an hourlong event
that encouraged lawmakers to use virtual schools as a budget-cutting
measure. Mandy Clark, a staffer with Bush’s foundation, walked around
handing out business cards, offering to e-mail sample legislation to
legislators.
The lobbying was evident to anyone there. But for some of those
present, Bush didn’t go far enough. David Byer, a senior manager with
Apple in charge of developing education business for the company,
groaned and leaned over to another attendee sitting at the edge of the
room after a lunch session. “You have this many people together, why
can’t you say, ‘Here are the ten elements, here are some sample bills’?”
said Byer to David Stevenson, who nodded in agreement. Stevenson is a
vice president of News Corporation’s education subsidiary, Wireless
Generation, an education-technology firm that specializes in assessment
tools. It was just a year ago that News Corp. announced its intention to
enter the for-profit K-12 education industry, which Rupert Murdoch
called “a $500 billion sector in the US alone that is waiting
desperately to be transformed.”
As attendees stood up to leave the hall, the phalanx of lobbyists
surrounding the room converged, buttonholing legislators and school
officials. On a floor above the main hall, an expo center had been set
up, with companies like McGraw-Hill, Connections Academy, K12 Inc.,
proud sponsors of the event, providing information on how to work with
politicians to make education technology a reality.
Patricia Levesque, a Bush staffer speaking at the summit and the
former governor’s right hand when it comes to education reform, does not
draw a direct salary from Bush’s nonprofit despite the fact that she is
listed as its executive director, and tax disclosures show that she
spends about fifty hours a week at the organization. Instead, her
lobbying firm, Meridian Strategies, supplies her income. The Foundation
for Florida’s Future, another Bush nonprofit, contracts with Meridian,
as do online technology companies like IQ-ity Innovation, which paid her
up to $20,000 for lobbying services at the beginning of this year. The
unorthodox arrangement allows donors to Bush’s group to avoid
registering actual lobbyists while using operatives like Levesque to
influence legislators and governors on education technology.
Levesque’s contract with IQ-ity raises questions about Bush’s foundation work. As
Mother Jones
recently reported, the founder of IQ-ity, William Lager, also founded
an education company with a poor track record. Lager’s other education
firm, Electronic Classroom of Tomorrow, is the largest provider of
virtual schools in Ohio. ECOT schools have consistently underperformed;
though the company serves more than 10,000 children, its graduation rate
has never broken 40 percent. The company was fined for billing the
state to serve more than 2,000 students in one month, when only seven
children logged on during the same time period. Nevertheless, after
Levesque spent at least two years as a registered lobbyist for Lager’s
firm, Bush traveled to Ohio to give the commencement speech for ECOT.
“ECOT proves a glimpse into what’s possible,” Bush said with pride, “by
harnessing the power of technology.”
* * *
Levesque is no ordinary lobbyist. She is credited with encouraging
the type of bare-knuckle politics now common in the wider
education-reform movement. In an audio file obtained by
The Nation,
she and infamous anti-union consultant Richard Berman outlined a
strategy in October 2010 for sweeping the nation with education reforms.
The two spoke at the Philanthropy Roundtable, a get-together of major
right-wing foundations. Lori Fey, a representative of the Michael Dell
Foundation, moderated the panel discussion.
Rather than “intellectualize ourselves into the [education reform]
debate…is there a way that we can get into it at an emotional level?”
Berman asked. “Emotions will stay with people longer than concepts.” He
then answered his own question: “We need to hit on fear and anger.
Because fear and anger stays with people longer. And how you get the
fear and anger is by reframing the problem.” Berman’s glossy ads, which
have run in Washington, DC, and New Jersey, portray teachers unions as
schoolyard bullies. One spot even seems to compare teachers to child
abusers. Although Berman does not reveal his donors, he made clear in
his talk that the foundations in the room were supporting his campaign.
Levesque ended the strategy discussion with a larger strategic
question. She pointed to the example of Facebook founder Mark Zuckerberg
donating $100 million to Newark schools. She then asked the crowd to
imagine instead raising $100 million for political races where we “could
sway a couple of seats to have more education reform.” “Just shifting a
little bit of your focus,” she added, noting that new politicians could
have a greater impact.
Levesque’s ask has become reality. According to author Steven Brill,
ex–DC school chancellor Michelle Rhee’s new group, StudentsFirst, raised
$100 million within a few months of Levesque’s remarks. Rhee’s donors
include Rupert Murdoch, philanthropist Eli Broad and Home Depot founder
Ken Langone. Rhee’s group has pledged to spend more than $1 billion to
bring for-profit schools, including virtual education, to the entire
country by electing reform-friendly candidates and hiring top-notch
state lobbyists.
A day before he opened his education reform conference to the media
recently, Bush hosted another education meeting. This event, a private
affair in the Palace Hotel, was a reconvening of investors and
strategists to plan the next leg of the privatization campaign. Michael
Moe, Susan Patrick, Tom Vander Ark and other major players were invited.
I waited outside the event, trying to get what information I could. I
asked Mayor Fenty how I could get in. “Just crash in, come on in,” he
laughed, adding, “so what company are you with?” When he learned that I
was a reporter, he shook his head. “Oh, nah, you’re not welcome, then.”
An invitation had billed the exclusive gathering as a chance for
“philanthropists and venture capitalists” to figure out how to “leverage
each other’s strengths”—a concise way to describe how for-profit
virtual school companies are using philanthropy as a Trojan horse.