The Long Beach Board of Education voted 3-2 to reject a plan to privatize the school district’s lunch program that administrators said would have saved hundreds of thousands of dollars. At a contentious July 6 meeting, the board rejected a bid by Chartwells, a food- service company, to take over the district’s food operations and help fill a budget gap. School officials said the district lost about $400,000 in food services in each of the past two years due to a lack of student participation in the federally funded National School Lunch Program, which partially reimburses the district for lunches that the agency considers healthy. …
Source: Brian Alexander, The Atlantic, July 12, 2017
… As vague as Trump’s pronouncements have been on the matter, it is clear that the general thrust behind the promised building-and-repair push involves using federal dollars as up-front investment to entice private enterprises to provide most of the financing. While Democrats announced their opposition, the general idea of increased privatization of infrastructure has had a bipartisan cast. President Obama supported a plan to create an “infrastructure bank” that would help finance so-called public-private partnerships (known, for their alliteration, as P3s), but that idea fizzled under the glare of Republican opposition. He also floated the idea of selling off the Tennessee Valley Authority. …
Selling Back To The Public What It Already Owned: ‘Public-Private Partnership’ Shark Bait
Source: Mercedes Schneider, Huffington Post, June 12, 2017
Today, I read two articles centered on this idea, both of which concerned Vice President Mike Pence – and one that concerned Pence’s role in the aftermath of Hurricane Katrina. One article also included a sprinkling of US secretary of [privatized] education, Betsy DeVos. A major goal of corporate education reform is to deliver public education to private entities (corporations, or even nonprofits, but don’t think that an entity termed “nonprofit” cannot be a handsome money dispenser for those running the nonprofit and doling out contracts). However, the extreme-right-Republican aim does not end with public education but with delivering the operation of the entire American infrastructure to private entities. In the end, what this entails is having private corporations front money to state and local governments in order to lease back to the public what the public already owns.
How President Trump Might Carry The Torch Of Privatization
Source: Here & Now, WBUR, May 8, 2017
… Now President Trump is poised to continue privatization and private contracting in all kinds of industries, from education to incarceration. Here & Now’s Jeremy Hobson looks at the history and politics of privatization with Donald Cohen and Shahrzad Habibi of the group In The Public Interest. …
Source: Danielle Douglas-Gabriel, Washington Post, July 9, 2017
Step by step, the Trump administration is walking back policies and rules in higher education that its predecessor said were needed to protect students who rely on federal funding to pursue a degree. … Through the first half of the year, the department led by Education Secretary Betsy DeVos has withdrawn, delayed or announced plans to revamp more than a half dozen Obama-era measures involving federal student aid. …
Betsy DeVos delays 2 Obama-era rules designed to protect students from predatory for-profit colleges
Source: Valerie Strauss, Washington Post, June 14, 2017
The Trump administration is suspending two key rules from the Obama administration that were intended to protect students from predatory for-profit colleges, saying it will soon start the process to write its own regulations. The move made Wednesday by Education Secretary Betsy DeVos was a victory for Republican lawmakers and for-profit colleges that had lobbied against the rules. Critics denounced it, accusing the administration of essentially selling out students to help for-profit colleges stay in business.
Trump’s Administration Is Making It Easier for For-Profit Colleges to Screw Over More Students
Source: Michelle Chen, The Nation, March 31, 2017
Education Secretary Betsy DeVos’s controversial pick for a special assistant—for-profit college corporate lawyer Robert Eitel, may be a portent. As counsel for Bridgepoint, the parent company of the now-tainted brands of Ashford University and University of the Rockies, was forced by the Obama administration last year to refund $24 million in tuition and debt costs to students, plus civil damages, after the Consumer Financial Protection Bureau found that its heavy marketing scheme for its online programs, and “deceived its students into taking out loans that cost more than advertised.” …
Source: Valerie Strauss, Washington Post, July 3, 2017
The president of the country’s largest labor union, Lily Eskelsen García of the National Education Association, told delegates at her organization’s annual gathering that they would not work with the Trump administration because the president and Education Secretary Betsy DeVos could not be trusted to do what is in the best interests of children. Eskelsen García just addressed the 96th NEA Representative Assembly meeting in Boston, accusing President Trump of residing “at the dangerous intersection of arrogance and ignorance” and labeled DeVos as “the queen of for-profit privatization of public education.”
Interviews for Resistance: On the Commodification of Education
Source: Sarah Jaffe, In These Times, May 18, 2017
What has been happening in education over the last 20-30 years—people talk a lot about the prison-industrial complex and about the pharmaceutical-industrial complex, but folks don’t talk enough about the educational-industrial complex. Education is where all these things come together and that is what we have been having for the last 20-something years is an educational-industrial complex where you have all these businesses come in trying to provide a service and really privatize education, which is our last public good. …
This is the new Betsy DeVos speech everyone should read
Source: Valerie Strauss, Washington Post, May 16, 2017
The Michigan billionaire appeared at the 2017 annual technology and innovation conference in Salt Lake City sponsored by Arizona State University and Global Silicon Valley, delivering a speech and answering questions from Jeanne Allen of the nonprofit Center for Education Reform, who, as Liz Willen, editor of the Hechinger Report, said in this column, “threw one softball after another, such as: “What would you say to people about technology?” … What she talked mostly about, though, is what she always talks about — school choice — and she renewed previous attacks she has made on the value of government and public schools. If anybody thought that having the responsibility of running the entire Education Department would broaden her scope, this speech should disabuse them of that.
Source: Molly Hensley-Clancy, Buzzfeed News, June 20, 2017
When the Trump administration announced its pick to run the $1.3 trillion federal student loan system on Tuesday, there was one notable thing about the candidate that wasn’t mentioned in the press release: He’s the CEO of a private student loan company. The Education Department’s statement described A. Wayne Johnson as the “Founder, Chairman and former CEO” of a payments technology company called First Performance Corporation. … But what wasn’t noted was Johnson is currently the CEO of Reunion Student Loan Services, a detail confirmed by a company representative reached by phone on Tuesday afternoon. Reunion originates and services private student loans, and offers refinancing and consolidation for existing loans. …
Betsy DeVos undoes Obama’s student loan protections
Source: Danielle Douglas-Gabriel, Chicago Tribune, April 11, 2017
Education Secretary Betsy DeVos on Tuesday withdrew a series of policy memos issued by the Obama administration to strengthen consumer protections for student loan borrowers. The Education Department is in the middle of issuing new contracts to student loan servicing companies that collect payments on behalf of the agency. These middlemen are responsible for placing borrowers in affordable repayment plans and keeping them from defaulting on their loans. But in the face of mounting consumer complaints over poor communication, mismanaged paperwork and delays in processing payments, the previous administration included contract requirements to shore up the quality of servicing. Companies complained that the demands would be expensive and unnecessarily time consuming. … DeVos has withdrawn three memos issued by former education secretary John King and his under secretary Ted Mitchell. One of the directives, which was later updated with another memo, called on Runcie to hold companies accountable for borrowers receiving accurate, consistent and timely information about their debt. … The Obama administration requested routine audits of records, systems, complaints and a compliance-review process. … The exhaustive list of demands were a direct response to an outpouring of complaints to the Education Department and the Consumer Financial Protection Bureau. The CFPB, in particular, has documented instances of servicing companies providing inconsistent information, misplacing paperwork or charging unexpected fees. Because the federal government pays hundreds of millions of dollars to companies such as Navient, Great Lakes and American Education Services to manage $1.2 trillion in student loans, advocacy groups and lawmakers argue that more should be required of these contractors. …
Federal Student Loan Servicing: Contract Problems and Public Solutions
Source: Eric M. Fink, Roland Zullo, Elon University School of Law, University of Michigan, June 2014
One consequence of the 2007–2008 financial crisis was an abrupt shift from bank-based to direct federal student loans. This momentous change required the Department of Education to rapidly establish the capacity to service loans, which was achieved by outsourcing this responsibility to four large for-profit firms and a group of smaller regional entities. Loan servicing involves routine payment processing, account management and borrower communication, as well as the non-routine yet more labor intensive role of assisting borrowers that face hardship with debt repayment. Borrowers have expressed dissatisfaction with the present system. Complaints jumped significantly in the first two years of the loan servicing contracts and remain at historic highs. Several factors contribute to this increase, including the lackluster job market for graduates. However, upon close inspection it appears that loan servicers bear part of the blame for neglecting their responsibility to counsel borrowers with distressed loans. The Student Loan Ombudsman’s Office of the Consumer Finance Protection Bureau has issued several reports that further validate this assertion. To understand why the system is underperforming, we draw attention to the public-private contract. A question for any public-private contract is whether the incentives within are adequate to encourage contractor behavior consistent with the mission of the service. In our review of the contract terms, we conclude that the incentives to reduce operational costs far outweigh the incentives to be responsive to the needs of borrowers…This case illustrates the inherent limitations of a performance-based contract as an administrative tool. Regardless of design, contractors will strive to minimize operational commitment to any labor-intensive task, in this instance attending to the personal needs of borrowers….
A public university in Michigan is considering privatizing its parking system – and using Ohio State University as an example. Eastern Michigan University regents on Tuesday authorized President James Smith to pursue an arrangement to lease out its parking apparatus in exchange for upfront money. … It’s a significant decision because it is one of the first universities to follow Ohio State’s lead after the school signed a first-of-its-kind arrangement in 2012. Ohio State leased its parking operations to Australian pension fund QIC Infrastructure in a 50-year, $483 million deal, framing it as raising money for academics. …
A judge has ruled in favor of a media group that sued the state of Tennessee to release records about its attempt to outsource services at Fall Creek Falls State Park. The Tennessee Coalition for Open Government says Davidson County Chancellor Bill Young on Tuesday ruled that the state must produce records to City Press Communications LLC, parent company of the Nashville Scene and the Nashville Post, and reporter Cari Wade Gervin. …
Controversial state plan to outsource college jobs moves forward
Source: Adam Tamburin, The Tennessean, May 26, 2017
Tennessee moved forward with a controversial plan to outsource jobs at public colleges Friday when officials finalized a contract with a corporation that already handles a sizable amount of state business. Under the contract, JLL — which currently manages about 10 percent of state facilities — will oversee the potential expansion of outsourcing at college campuses, state parks and prisons. It is a pivotal moment for the proposed expansion, which has been in the works for two years. …
Fall Creek Falls state park outsourcing push draws no bidders
Source: Associated Press, May 11, 2017
A push by Gov. Bill Haslam’s administration to outsource hospitality services at a Tennessee state park has drawn no bidders. Tennessee Department of Environment and Conservation spokeswoman Kim Schofinski says that no one bid on the proposal at Fall Creek Falls State Park, located on the Upper Cumberland Plateau in Van Buren and Bledsoe counties. TDEC planned to award the winning bidder $20 million to raze the park’s inn and build a new one. The Tennessee State Employees Association and park workers opposed it. …
Source: Ty Tagami, Tribune News Service, June 26, 2017
Georgia’s highest court has determined that a state law allowing taxpayers to steer some of what they owe the state to private schools instead does not violate the state constitution. The unanimous ruling Monday by the Georgia Supreme Court strikes a blow against the claim by Raymond Gaddy and other taxpayers that the state law establishing tax credit student scholarships is unconstitutional. … Taxpayers pledge money — up to $1,000 for an individual, $2,500 per married couple and $10,000 for shareholders or owners of businesses (except “C” corporations, which can contribute up to three quarters of their state tax debt) — to specific private schools and get a tax credit off what they owe the state for the same amount. The money passes through nonprofit scholarship organizations that assign it as scholarships to students and keep up to 10 percent as fees.
Public Money Finds Back Door to Private Schools
Source: Stephanie Saul, New York Times, May 21, 2012
When the Georgia legislature passed a private school scholarship program in 2008, lawmakers promoted it as a way to give poor children the same education choices as the wealthy. …A handout circulated at the meeting instructed families to donate, qualify for a tax credit and then apply for a scholarship for their own children, many of whom were already attending the school. … The exchange at Gwinnett Christian Academy, a recording of which was obtained by The New York Times, is just one example of how scholarship programs have been twisted to benefit private schools at the expense of the neediest children. Spreading at a time of deep cutbacks in public schools, the programs are operating in eight states and represent one of the fastest-growing components of the school choice movement. This school year alone, the programs redirected nearly $350 million that would have gone into public budgets to pay for private school scholarships for 129,000 students, according to the Alliance for School Choice, an advocacy organization. Legislators in at least nine other states are considering the programs. …. One big proponent of the tax-credit programs is the American Legislative Exchange Council, a coalition of conservative lawmakers and corporations that strongly influences many state legislatures. The council became a flash point in the Trayvon Martin case because it had championed the controversial Stand Your Ground gun laws.
Source: Laurie Kellman, Associated Press, May 18, 2017
U.S. Labor Secretary Alexander Acosta is making public-private apprenticeships his debut issue as President Donald Trump’s point man on matching American workers with specific jobs. … The declaration, and a new campaign of tweets on the subject, represent the first indication since Acosta’s swearing-in three weeks ago that apprenticeships are at the core of the Trump administration’s plans to train a new generation of workers. The discussion of apprenticeships is a relatively new one for Trump, who campaigned for the White House on promises to restore manufacturing jobs that he said had been lost to flawed trade deals and unfair competition from China, Mexico and more. But it’s not new to policymakers of either party or the private sector, whose leaders have for years run apprenticeship programs. … There’s also evidence of rare bipartisan agreement, at least on the value of apprenticeships, which generally combine state and federal government money with support from universities and companies looking to train people for specific jobs. In some cases, students split their time between school and work, and the companies pay some portion of wages and tuition. The budget compromise funding the federal government through September passed this month with $95 million for apprenticeship grants, an increase of $5 million — in part to increase the number of women apprentices. …
Town Meeting unanimously agreed to $15.5 million as the town’s share of a $31.3 million budget for the Amherst-Pelham Regional Schools and $22.5 million budget for the elementary schools. … The budgets also include money to bring the food service program back in-house, which Hazzard said will mean better tasting, less processed, more organic and locally sourced foods. …