Common Cause Takes on Wealthy NY School Privatizers and ALEC

Common Cause New York has just published a scathing report that, “shows how political spending around education issues has spiraled in New York State, making it virtually impossible for everyday New Yorkers not already aligned with either side of the issue to obtain objective information or have their voices heard.  While in the past, education union political strength has resulted in the adoption of measures favored by teachers, the infusion of direct campaign contributions on the part of privatizers has resulted in (proposed) education scholarship tax credit bills that significantly advantage the wealthy in ways not seen in other states….”

Who are the top ten political donors and privatizers who have made donations—between 2005-and 2014—to organizations supporting privatization of public education, expansion of charter schools, and stiff accountability for teachers tied to test scores? Common Cause identifies these donors: Michael Bloomberg who launched corporate school reform during his three terms—$9,203,195;  David Koch—$1,609,627; James Simons—$3,007,350; Paul Singer (board member of Success Academy Charters and Manhattan Institute)—$2,202,770; Daniel Loeb (chair of Success Academy Charter Board, co-founder of Students First New York, contributor to New Yorkers for a Balanced Albany)—$1,941,367; Paul Tudor Jones, II (founding member of Students First New York,  founder of Excellence Charter School, supporter of charter schools through his Robin Hood Foundation, funder of New Yorkers for a Balanced Albany PAC)—$1,547,750; Bruce Kovner (founder of School Choice Scholarship Fund, funder of Bronx Preparatory Charter School and the Brighter Choice Foundation), $1,445,100; Roger Hertog (founding chair of Foundation for Opportunity in Education, board member of StudentsFirst New York, supporter of New Yorkers for a Balanced Albany PAC—$1,445,735; Julian Robertson, Jr. (founder of PAVE charter schools)—$1,113,477; and Joel Greenblatt (Chair of Success Academy Charter School Board, co-founder Democrats for Education Reform, contributor to New Yorkers for a Balanced Albany PAC)—$934,740.

While education unions and their allies spent $117.4 million in lobbying and non-candidate expenditures from 2005-2014, giving by advocates for privatization was only $44 million, but donations from those who favor privatization have grown rapidly since 2010 and have come from fewer than 400 wealthy individuals.  In contrast, union donations have been made by, “at least 75,000 contributions to Union PACS from well over 18,000 individuals, associated organizations and PACS.”  According to Common Cause, “Pro-privatization spending in substantial amounts is a recent phenomenon, showing exponential growth in the last five years, while union spending has remained at a fairly high constant level over the last 10 years.  In 2014, education privatization interests outspent education unions on contributions by $3.15 million.”

Here is what happened in 2014 to transform educational lobbying in the state of New York: “2014 was a game changer for privatizer spending, not only in campaign contributions, but also in lobbying.  Families for Excellent Schools (FES) yet another charity-advocacy organization created by the same hedge fund billionaires active throughout the country (which shares office space with StudentsFirst NY) registered as a lobbyist for the first time in NYS (New York State) in March, 2014.  FES’s lobbying expenditures eclipsed all other (New York donor) organizations in every industry, placing it at the top of the JCOPE annual list of lobbying entities ranked by total lobbying expenditures.  The $9,670,372 FES spent lobbying is almost $5 million more than NYSUT (New York State United Teachers) and UFT (United Federation of Teachers) combined lobbying for 2014.  What is even more incredible is that the majority of the FES lobbying spending was spent in March and April of 2014… This tidal wave of money was directly aimed at influencing how the 2014 NYS budget handled education policy, and FES added muscle to another privatizer player backed by hedge fund billionaire Bruce Kovner, The Foundation for Opportunity in Education…  FES has received millions of dollars in combined funding from the Walton Foundation, the Peter and Carmen Lucia Buck Foundation and the Eli and Edythe Broad Foundation—the very same foundations funding Democrats for Education Reform, the Success Charter School network, StudentsFirst, and ALEC—to name just a few.”

Common Cause has made the exposure of the American Legislative Exchange Council (ALEC) the centerpiece of its work, and this report covers ALEC in some depth, especially in relation to the bills that Governor Andrew Cuomo is supporting that would bring tuition tax credit school vouchers to New York.  Here is how Common Cause describes ALEC: “Through the American Legislative Exchange Council (ALEC), some of the nation’s largest companies invest millions of dollars each year to pass state laws putting corporate and private interests ahead of the interests of ordinary Americans. ALEC’s membership includes some 2,000 state legislators, corporate executives and lobbyists.  ALEC brings together corporate lobbyists and state legislators to vote as equals on model bills, behind closed doors and without any public input, that often benefit the corporations’ bottom line.  These model bills are then introduced in the state legislatures across the country…. Among ALEC’s legislative portfolio are bills to privatize public schools and prisons, weaken voting rights, eviscerate environmental protections and cripple public worker unions.  Common Cause has filed a ‘whistleblower’ complaint against ALEC with the Internal Revenue Service, accusing the group of violating its tax-exempt status by operating as a lobby while claiming to be a charity.”  Common Cause’s New York report concludes that ALEC model bills including “The Great Schools Tax Credit Program Act” and the “Parental Choice Scholarship Accountability Act” appear to be the templates for the tuition tax credit school voucher program Governor Cuomo is trying to get New York’s legislature to include in next year’s budget, currently being debated.

Common Cause concludes: “The current trend of market-based education proposals can be seen as interrelated to the ideology and policy goals that contributed to the pre-2008 deregulations of the financial industry and to the Supreme Court ruling in Citizens United v. FEC.  Using a long term, multi-pronged strategy, the self-styled ‘education reform’ organizations (whose boards are populated by the very hedge fund executives who have dominated Super PAC contributions since the Citizens United decision) are framing this issue.  They have used their wealth to access and infiltrate the policy landscape on almost every front except one: the teachers’ unions.  In an increasingly polarized debate, these camps are battling for ideological control of the future of education policy at all levels of government.”

I encourage you to read this lucid report packed with information.

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2 thoughts on “Common Cause Takes on Wealthy NY School Privatizers and ALEC

  1. Pingback: Plutocrats in NYC Wielding Power, Buying the Airwaves, and Trashing Public Schools Again | janresseger

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