Thursday, May 27, 2010

J.P Morgan bailout brings a gift for charter operators

Conservative think-tanks like Fordham and AEI are pouring out their hearts to the poor for-profit school reformers who they claim, are being squeezed out of Duncan's i3 funding opportunities. They also claim that privately-managed charter schools are  "terribly underfunded." Debra Viadero at Edweek, gives the claim some credence in this blog post although she can't help but "wonder whether this report takes into account the dollars that many charter schools get from foundations and other private donors." Wonder indeed, Deb.

Meanwhile, back in the real world, J.P. Morgan Chase took out full-page ads in the nation's news papers to announce a gift of $325 million to privately-run charter school organizations. I know the money is funneled through J.P.'s private tax-sheltered foundation, but I wonder if it comes from the pot of $50 billion in bailout money they received from us taxpayers? It's also questionable how much of that money will ever reach a classroom once the partner institutions and management companies like The Reinvestment Fund of Philadelphia, The Low Income Investment Fund of San Francisco, and NCB Capital Impact of Arlington, Virginia each take their cuts and pay their own salaries. Some charter managers make hundreds of thousands each year in salaries and benefits.

Interesting side note--the Midwest chairman of J.P. Morgan Chase is none other than Bill Daley, brother of Chicago's mayor, Richie, who currently controls the schools in our fair city.

1 comment:

  1. Finn & the boys at Fordham admit that J.P. Morgan's "gift" is a tax scam. See "Wall Street gets bullish on charter schools"

    But they'll take the money anyway.


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