Voucher Vultures Swoop Down on Nashville

Roughly one month after Governor Bill Lee signed his Education Savings Account voucher scheme into law, a North Carolina-based private school announced it is expanding operations to Nashville. Perhaps not surprisingly, tuition at the school is similar to the amount available to families in Nashville and Memphis under the ESA program.

The school, Thales Academy, is operated by the CEO of a commercial kitchen ventilation company. Bob Luddy is also a top GOP donor in North Carolina.

Here’s Luddy on how great his schools are:

“We get results. If you look consistently over a period of time, kindergarten students come in, they can barely walk in the door, they can barely sit down, and then you see them progress as they learn sounds, and they learn to decode. By the time they progress into the 3rd or 4th grade they’re doing very sophisticated work, which is going to prepare them to be excellent students in the long term,” Luddy says in a video on the Thales Academy website.

And here’s more on accreditation straight from the school’s website:

The accreditation process does not align with Thales Academy’s mission and would prevent Thales from maintaining our standard of the highest quality education.

Thales and Luddy are not new to Tennessee. In fact, in 2015, voucher advocate Lee Barfield paid for a private plane to take former Nashville Mayor Karl Dean and then-House Speaker Beth Harwell to North Carolina to visit the Thales schools. Like Bill Lee, Barfield is a long-time supporter of Betsy DeVos’s American Federation for Children and even served on the group’s Board of Directors.

Those in the GOP cozying up to Luddy should beware, though, he’s known for expressing his disappointment where it hurts politicians the most: campaign contributions.

Here’s how he treated the House GOP in North Carolina:

A major conservative donor’s decision this week to divert a planned $25,000 contribution away from state House Republicans highlights an increasingly bitter divide within the party over tax policy and government spending.

Raleigh businessman Bob Luddy, who chairs the board of the conservative Civitas Institute think tank and is an influential financial supporter of conservative candidates, emailed a sharp critique of the House budget to House Republicans, who are in the majority.

Luddy complained that the budget advancing to a major vote on Thursday does not include new tax cuts and extends tax breaks for specific industries. He called the spending plan too “liberal” and said he’s decided to withold his planned, annual donation to the House Republicans’ campaign committee.

Luddy instead directed his money to Americans for Prosperity and then issued this sharp rebuke to those who had taken his money in the past but were not doing his bidding:

But Luddy says the state shouldn’t prop up the solar industry. “These guys couldn’t exist without government subsidies, and those subsidies have to come from every working taxpayer who are capable of creating way more jobs than the solar industry could ever create,” he said.

Here’s a guy who plans on using public money to fund his private school scheme and he’s decrying the use of public funds to support an industry he simply doesn’t like. Perhaps if public money shouldn’t be used to “prop up the solar industry” it also shouldn’t be used to prop up Luddy’s Thales Academy.

Those who warned that passage of vouchers would lead to “pop-up” private schools have already been proven right. Thales Academy and Bob Luddy were invited into Tennessee by Bill Lee and friends and are now perched like hungry vultures ready to suck funds from Nashville’s public schools.

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Bill Lee’s Beach Buddy

Governor Bill Lee has appointed unregistered voucher lobbyist Mark Gill to the Tennessee Board of Regents, according to a report in the Tennessean.

Lee appointed Mark Gill, a longtime advocate for school vouchers who made headlines after treating five lawmakers to a stay at his Alabama seaside condo and a deep-sea fishing trip, to the Tennessee Board of Regents.

Gill has served on the Board of Directors of the Tennessee Federation for Children, the Tennessee arm of Betsy DeVos‘s American Federation for Children. Lee is both a long-time voucher advocate and a financial backer of DeVos’s school privatization efforts.

Readers may recall Gill’s pro-voucher antics, including hosting lawmakers at his beachfront condo:

So, Mark Gill serves on the Board of Directors for the Tennessee Federation for Children, is a large donor to the group, and hosts five Tennessee lawmakers at his beachside condo and then those same lawmakers just happen to co-sponsor pro-voucher legislation at the General Assembly?

No, this isn’t illegal. Yes, it actually happened. This is the type of behavior these same lawmakers decry about DC politicians.

Make no mistake, Bill Lee depends on shady characters like Lee Beaman, Shaka Mitchell, and Mark Gill in order to claim victory in his quest to take public money and shift it to private schools.

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Business as Usual

The Tennessean has the story of a Nashville charter school facing turmoil amid financial challenges created by poor management and lax oversight.

Knowledge Academies charter school has operated with a large deficit, occasionally failed to pay teachers on time and slipped into financial turmoil while its CEO ran side businesses out of its Antioch school building.

Understaffing at the school forced teachers to regularly take on extra students, while long-term substitutes without teaching licenses filled in as if they were full-time staff.

Teachers say the staffing, financial problems and cavalcade of issues centering around school leadership created a culture of disorganization and made classroom instruction extremely difficult.

The news about Knowledge Academies comes after a state legislative session which saw Governor Bill Lee win approval of a new, statewide charter authorizer.

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Voucher Sponsor Facing FBI Probe

As Governor Bill Lee signed controversial voucher legislation into law this past week, revelations emerged that the FBI is investigating potentially illegal campaign activity by the Senate sponsor of Lee’s plan.

The Daily Memphian reports Senator Brian Kelsey’s failed 2016 congressional campaign faces an investigation into illegal use of state campaign funds for a federal race.


The Tennessee Journal is reporting the Department of Justice talked recently to state lawmakers about alleged “straw donations” into state Sen. Brian Kelsey’s 2016 congressional campaign.


Kelsey, a Germantown Republican who represents East Memphis and Cordova, came in fourth in the Republican primary three years ago. But reports have raised questions about whether money was funneled from his state accounts into his congressional fund, which is illegal.


During the 2016 campaign, his state political action committee, Red State PAC, contributed about $20,000 to state legislators who then gave funds to his congressional race, according to the Tennessee Journal article.

The FBI is also investigating the House vote on voucher legislation to determine if any improper benefits were offered in exchange for votes in favor of the bill.

All of this comes amid the controversy surrounding soon-to-be former House Speaker Glen Casada, who will resign from his leadership role following a months-long scandal which began with the framing of an African-American political activist and included Casada’s appointment of an admitted sex offender to a key leadership role.

Just to be clear: Governor Bill Lee signed a bill that is currently facing an FBI investigation due to alleged impropriety in securing votes. The lead sponsor of that bill in the Senate is ALSO under an FBI investigation.

Rather than wait for the outcome of these investigations, Lee moved forward and signed the bill into law. Lee is so determined to privatize our state’s public schools that he partnered with the nefarious Glen Casada, ignored a potentially illegal vote, and relied on a Senate sponsor who seems to have displayed blatant disregard for campaign finance law.

Make no mistake: Lee is a win at all costs governor. His prize: Taxpayer dollars funneled to private entities with a record of failing to achieve results.

The losers in Lee’s dangerous, morally bankrupt game are the citizens of Tennessee and especially the students and families impacted by a voucher scheme that both fails to help kids and also sucks money from our chronically under-funded public school system.

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Vouchers Already Impacting Teacher Pay, School Resources

A story out of Coffee County explains how Governor Bill Lee’s voucher scheme (currently under investigation by the FBI), is already impacting teacher pay raises and resources dedicated to public schools:

The day it passed in the senate, April 25 (May 1 for an amended version), the Coffee County Board of Education expressed their concerns and decided it would be more frugal to give their faculty a 1 percent raise instead of a 2 percent raise. This decision had multiple factors involved, including balancing the budget, but the uncertainty of the vouchers was part of the discussion, Aaron explained.

In Manchester, the Board of Mayor and Aldermen did not pledge money in their 2019-20 budget to assist College Street Elementary School with renovations due, in part, to the uncertainty of the voucher program as well. Alderman Ryan French pointed out the program has the potential to decimate Average Daily Attendance (a facet of BEP), which will reduce funding and therefore put more strain on the local population.

It’s still unclear what the total cost of Lee’s voucher scheme will be should it be fully implemented. Some estimates put the cost at more than $300 million. That’s a significant hit to the state’s school funding formula. Even at the conservative end of the scale, a total cost of around or just above $100 million would mean a significant loss to all districts across Tennessee. To put that amount in perspective, $100 million would fund a four percent raise for all of Tennessee’s teachers.

Lee has already demonstrated he prefers to spend money on voucher schemes and charter schools instead of teacher salaries. His initial budget proposal provided a big boost for charter school facilities while offering only a minor increase in funding for teacher salaries.

Previous analysis indicates that even if the voucher program grows only modestly, the impact to all school systems will be significant:

Nearly 15,000 students who never attended public school suddenly receiving vouchers would mean a state cost of $98 million. That’s $98 million in new money. Of course, those funds would either be new money (which is not currently contemplated) or would take from the state’s BEP allocations in the districts where the students receive the vouchers.

In other words, don’t believe the lie that just because your school district isn’t in the current voucher plan, vouchers won’t impact your schools. They absolutely will. Taking $100 million off the table means a big hit to the BEP formula, a plan that already struggles to meet the needs of our state’s schools.

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Secret Voucher Man

So we know Governor Bill Lee’s controversial voucher plan narrowly passed after gaining the support of Lee’s besties Lee Beaman and Betsy DeVos while earning opposition from Tennesseans across the state. So much opposition, legislators representing 93 counties opted their districts out of the bill.

Now, we also know the FBI is investigating whether anything improper occurred in the backroom dealings that led to the bill’s passage. We saw at least one lawmaker change his vote at the last minute after arm-twisting by House Speaker Glen Casada. Other lawmakers reported receiving offers from Governor Lee or Speaker Casada in order to switch their votes.

Here’s what Nashville’s NewsChannel 5 is reporting:


FBI agents have begun interviewing Tennessee lawmakers about whether any improper incentives were offered to pass Gov. Bill Lee’s school vouchers bill in the state House, NewsChannel 5 Investigates has learned.

It’s also interesting that in light of all the recent revelations about Glen Casada, Bill Lee has been reluctant to call on Casada to resign. It seems likely that without Casada’s help, Lee would have failed to achieve many of his legislative goals this session. Now, Casada’s true character is coming to light and Bill Lee is refusing to take a clear stand.

But hey, at least we have vouchers and a state charter authorizer, and as an added bonus, Lee signed the legislature’s bill that criminalized voter registration so that even if some Tennesseans are now motivated to vote Lee and his allies out, they’ll find it harder to get that done.

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PET on Voucher Passage

Immediately following yesterday’s passage of Governor Bill Lee’s “Education Savings Account” voucher program, Professional Educators of Tennessee sent out this statement:

The Tennessee General Assembly today voted to support a second Education Savings Account type program.  The legislation which passed today will serve up to 15,000 lower income students in Nashville and Memphis, after five years.  It will very likely face legal challenges.  Education policy must support all children in developing the skills, the knowledge, and the integrity that will allow them to be responsible, contributing members of their community and ultimately gain employment with a sustainable living wage. Public education still provides the best opportunity for most children to obtain that success.  We do not envision this limited pilot program changing that fact.   The vast majority of our schools are incredibly successful, as are the teachers who serve and students who attend them. 

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How Much is that Voucher in the Window?

Both the Tennessee House of Representatives and the Tennessee Senate today passed Governor Bill Lee’s school voucher (Education Savings Account) scheme and the measure now heads to his desk for signing.

The bill passed despite the fact that no one could clearly articulate the ultimate cost of the program. An early version of analysis by the legislature’s Fiscal Review Committee indicated the cost could be as much as $335 million by 2024.

As the Senate began debate on the measure, that large amount caused some concern (our state underfunds schools by at least $500 million). Not long after that concern was expressed, a “new” fiscal analysis appeared. This time, the projected cost was some $165 million. But wait, that still seems pretty high, right.

Not to fear, Finance Committee Chair Bo Watson and Conference Committee Report author Brian Kelsey assured lawmakers the actual cost would be roughly HALF what the fiscal analysis suggest because there won’t be enough students to meet the program’s caps in the early years.

Wait, what?! We’re supposed to count on a program being unpopular so it won’t cost so much? But, Governor Lee says everyone wants this. He campaigned on it, even. In fact, the plan is so desirable, legislators in 93 counties worked their asses off to ensure it didn’t impact their school districts.

During the debate, Senator Richard Briggs of Knoxville noted that once the door to vouchers was opened, it wouldn’t be closed. He cited the example of the failed Tennessee Virtual Academy, operated by K-12, Inc. Despite years of poor performance, the school is STILL allowed to operate.

Of course, there’s also the experience of Indiana. There, a limited voucher program was started by then-Governor Mitch Daniels. Then, under Mike Pence, the program expanded rapidly and now costs more than $150 million per year.

What’s worse, the legislature supported a program backed by the Governor despite overwhelming evidence the plan simply won’t help kids. In fact, research suggests that kids who receive vouchers perform no better than their non-voucher peers in reading and actually fall behind in math.

Oh, and then there’s the fraud. Rep. Mark White of Memphis USED To care about this, until Governor Lee and Speaker Glen Casada told him to stop.

So, to summarize: We don’t know how much this plan will ultimately cost. We don’t know how many kids will use it. We don’t know how large it will grow. We don’t know how the state will prevent fraud. We don’t know how, or even if, we’ll be able to shut it down if the results are as bad as the Tennessee Virtual Academy.

We do know this: Vouchers haven’t worked. Anywhere. We also know that somewhere between $70 million and $200 million will be shifted from current education funding to a voucher scheme. We know the low end of that would give our state’s teachers a badly needed additional 2.5% raise. We know the $200 million+ price tag that’s very possible if our state tracks others in expansion would mean an 8% raise. We know our schools are underfunded by AT LEAST $500 million according to the state’s Republican Comptroller. We know Tennessee is 45th in education funding. We know we spend $67 less (inflation adjusted) per pupil now than we did in 2010.

Instead of addressing any of that, we’ve watched our lawmakers do Governor Lee’s bidding so he can claim victory on one of his signature initiatives.

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BOOM!

A joint statement from Shelby County Schools and Metro Nashville Public Schools on Governor Bill Lee’s ESA voucher scheme:

Shelby County Schools (SCS) and Metro Nashviille Public Schools (MNPS) released a joint statement on Monday in opposition of the highly controversial Education Savings Account bill that passed both the state House and Senate last week.

In the statement, the districts call the bill unconstitutional because it affects only a small portion of school districts, which includes both SCS and MNPS. If the bill is signed into law, both districts say they are prepared to challenge its legality in court.

  You can read the full statement below:

The Education Savings Account (ESA) legislation violates Article XI, Section 9 of the Tennessee Constitution because it is arbitrarily limited to only a portion of the state when the Constitution requires any Act of the General Assembly to apply statewide unless approved by a local legislative body or through a local referendum.

The language, in both the House and Senate versions of the bill, reflects an arbitrary application to Shelby County Schools (SCS) and Metro Nashville Public Schools (MNPS), as there are school districts, such as Madison County and Fayette County, with larger or nearly the same percentages of schools performing in the bottom 10 percent. The legislation also applies to only certain districts with priority schools from the state’s 2015 priority school list even though there is a more current list from 2018 that includes schools in Campbell, Fayette, Madison and Maury Counties. These districts are arbitrarily left out of the legislation.

Should this legislation be signed into law, an immediate constitutional challenge is likely to ensure equal protection under the law. Shelby County is no stranger to asserting and prevailing on such constitutional challenges as reflected in the November 27, 2012 decision in the case of Board of Education of Shelby County Tennessee et al v. Memphis City Board of Education by federal Judge Hardy Mays which rendered a similar bill void that was local in effect.

“If the Governor and Legislature are determined to pass a general law that would apply arbitrarily only to us or a limited number of school systems, we will be sure to exhaust all of our legal options,” said SCS Superintendent, Dr. Joris M. Ray.

“No matter what you call them, vouchers are a bad idea. They are not what we need for public schools. We owe it to this generation of students — and to all of those who follow them – to fight for a system that is fairly funded,” said Dr. Adrienne Battle, the MNPS Interim Director.

If the ESA bill becomes law, Shelby County Schools and Metro Nashville Public Schools stand prepared to evaluate and pursue all legal remedies that ensure the constitutional guarantees of equal protection under the law remain intact for the children and families of our districts and state

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Out of the Gate

Bill Powers is brand new to the Tennessee State Senate. He was elected in a special election on Tuesday night to fill the Clarksville-area seat vacated when Mark Green was elected to Congress.

During the campaign, Powers promised he’d be against vouchers if elected. The race, decided by around 1000 votes, was relatively close. It’s possible if he’d said he supported vouchers, he would have lost the race.

While new to the body, he’s apparently not new to the art of creative deception. The very first bill Powers voted on was Governor Bill Lee’s voucher proposal. How did Powers vote? He voted YES.

Less than 48 hours after winning an election where he told voters he had one position on vouchers, he “changed his mind” after talking with Bill Lee and voted the other way.

That seems like a pretty big deal. Powers will face voters again in 2020 should he choose to run for a full 4-year term. It will be interesting to see how he explains his outright lie to the voters next year.

Photo/text courtesy of TN Holler

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