Heckman and Pritzker Pitch Apps as Poverty “Solutions” Yielding a 13% Return on Investment

Reposted with permission from Wrench in the Gears.

Do You See A Child or Human Capital?

If you have time to watch the entire hour, I encourage you to listen as these two men discuss their plans to create tools that will measure non-cognitive skills in service of outcomes-based contracts and a futures market in infant and toddler data. They are creating the next “big short” right before our eyes, and this time it’s not homes hanging in the balance, it’s our children. As if IQ scores weren’t awful enough, now they are developing an IQ equivalent for Big 5 character traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism. They want to define and rate our kids according to their “soft skills.”

This is the fourth in a series providing context for the Global Business Summit on Early Childhood that ReadyNation will be hosting in New York City November 1-2, 2018. The featured image is from an article pitching Waterford Upstart online preschool, piloted in Utah, a state experimenting with funding early childhood education using social impact bonds. The caption on the photo states that this four year old doesn’t have running water in her home, but she does have access to literacy education on a chromebook.

The focus of this post is Dr. James Heckman, a professor of economics at the University of Chicago since the early 1970s. Much of his research focuses on investments in early childhood as it pertains to labor markets. In 2000, Dr. Heckman was awarded the Nobel Prize in Economic Sciences for contributions to the field of micro-econometrics. James Heckman; Arthur Rolnick, former senior researcher at the Minneapolis Federal Reserve; and Robert Dugger, venture capitalist and ReadyNation advisor, have worked together for decades. Below is a relationship map for Heckman. See the interactive version here.

HeckmanDugger, and Stephen Durlauf, another professor of economics at the University of Chicago, lead the Human Capital and Economic Opportunity Global Working Group (HCEO). Launched in 2010, the initiative is run by the Center for the Economics of Human Capital Development and supported financially by the Institute for New Economic Thinking, a think tank established by George Soros in the aftermath of the financial collapse of 2008. Yes, Soros is funding human capital research conducted by a professor working out of the Becker (Milton) Friedman Institute for Economics at the University of Chicago. In the short video below, Heckman describes how HCEO fosters interdisciplinary research between 400+ academics who research poverty and then use that research to influence public policy.

HCEO’s six focus areas are closely linked to the social impact investment sector: childhood interventions, family inequality, health inequality, identity and personality, inequality measurement and policy, and markets.

With financial support from JB Pritzker via the Pritzker Children’s Initiative, Heckman’s academic work has been organized into an online tool kit to promote early childhood education as an investment opportunity, one they claim could yield a 13% annual rate of return once health outcomes are taken into account.

Suzanne Muchin’s branding firm Mind + Matter Studio developed The Heckman Equation website. Muchin served for four years as Vice President of programs for Teach for America and serves on the board of 1871, a tech accelerator based in Chicago’s Merchandise Mart launched by Pritzker in 2012.

Pritzker is a tech-oriented venture capitalist and politician. His sister Penny served on the Chicago Board of Education and later as Commerce Secretary in the Obama administration. In 2014, the Pritzker Foundation joined with the Gates, Irving Harris, and Kaiser Family Foundations and the Buffett Early Childhood Fund to create the First Five Years Fund to expand universal pre-k access. Pritzker has participated, as a funder, in two pilot early childhood social impact bond programs in the United States; one in Salt Lake City and the other in Chicago. If you are not up to speed on the history of and dangers posed by SIBs and pay for success programs, spend some time looking over the resources here.

In the trailer for a new documentary on social impact bonds, The Invisible Heart, Pritzker states:

“We are in the nascent stages of a social impact bond boom. Could be as big as the New York Stock Exchange…I’ve heard (people say), why are we letting investors make money off of our children. Well, that’s silly.” JB Pritzker

Pritzker is the Democratic candidate in Illinois governor’s race. He has also thrown money to the Silicon Valley Community Foundation’s campaign “Choose Children,” that is pushing to elect a governor of California who will be a “champion of young children.” Of course the subtext here is that Silicon Valley hopes to install a governor who will scale pay for success early childhood education programs, programs that will tap the state’s millions of vulnerable children as profit centers.

Heckman and Pritzker have been laying the groundwork for the early childhood impact investing market for years. The remainder of this post is comprised of clips and transcripts I pulled from a presentation the two men gave in San Diego in 2016. The passages that follow make it clear the formerly worthy idea of “whole child” education has been completely hijacked by global finance. It also explains why in some districts in Maine half the report card rubrics revolve around evaluations of “habits of mind.”

If you have time to watch the entire hour, I encourage you to listen as these two men discuss their plans to create tools that will measure non-cognitive skills in service of outcomes-based contracts and a futures market in infant and toddler data. They are creating the next “big short” right before our eyes, and this time it’s not homes hanging in the balance, it’s our children. As if IQ scores weren’t awful enough, now they are developing an IQ equivalent for Big 5 character traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism. They want to define and rate our kids according to their “soft skills.”

Below are presentation highlights in case you don’t have time to listen to the clips:

  • Poverty it’s not just about money, it’s about “parenting, encouragement and skills.”
  • Investing in young children yields higher results relative to workforce and life outcomes than do investments in older children and teens.
  • The highest returns will be on interventions directed at ages 0 to 3.
  • Children have achievement gaps documented as early as age 3.
  • IQ doesn’t increase much after a child reaches the age of 10, but interventions can continue to shape a child’s “character skills” to improve workforce outcomes.
  • It’s not just about being smart; it’s about being motivated.
  • Heckman identifies non-cognitive skills as a “target of opportunity” for investors.
  • But first they need to develop an inventory of social emotional skills to assess, track, and measure non-cognitive traits. (For the purposes of predicting outcomes for impact investment evaluation).
  • Having the OECD (promoter of PISA) on board is a good sign.
  • By “improving outcomes” through interventions, they claim poor children will require fewer public expenditures in the future. Social impact bonds will then capture those anticipated savings as profit to be handed over to privateinvestors.
  • Factoring in health outcomes, the return on these investments could be as high as 13% per year, which is HUGE.
  • Pritzker plans to identify cheap, scalable interventions-like parenting apps. (Because all impoverished families really need is an app to tell them what they should be doing to parent their children.)
  • There has been push-back from both ends of the political spectrum against using Pay for Success to Fund early childhood interventions, but they were able to convince communities by using compelling financial structures and promising “results.”
  • In closing, Heckman says you have to get parents on board or the whole thing is going to fail.

Do you hear that parents?!

Their talk was sponsored by Education Synergy Alliance, whose director Laura Kohn came from Seattle where she worked as a state-level advocate for the Gates Foundation, and San Diego Grantmakers, a collaborative that has been promoting use of Pay for Success in program delivery. Connie Matsui, social entrepreneur and former chair of the San Diego Foundation, brought Heckman and Prizker to San Diego in 2016.

This two-minute clip is from JB Pritzker’s introduction. Watch it here.

(Pritzker) “Really, I’m just grateful for the opportunity to be here. I had the opportunity to be here earlier today, and so did Jim, to speak to the larger community foundations where they are doing amazing work and where so many communities from around the country that have large endowments and lots of donor advised funds are beginning to look at early childhood development as an important arena for them. I’m, of course, particularly grateful to be asked to join Professor Heckman and to share thoughts today on a subject that I care deeply about, and that I believe is maybe the most important issue facing us in the country today, early childhood development.

So in truth, I’m a businessman (fortune valued at $3.4 billion), and I’m not a Nobel prize winner. No one will ever claim I will win anything like that. I’m lucky to share a stage occasionally with Professor Heckman. So I’ll speak from my heart about what I care about deeply and from the position that I come from. I’m here to solicit you for your business. I want to make a pitch to you today. It’s a subject that I care about, that’s about making investments. And so if you’re ready for my pitch…if you invest with me, and you invest with Professor Heckman we can not only unlock human potential, but we can also get you at HUGE return on your investment. So, do you want to hear the rest of my pitch?”

The middle section of the presentation, between timestamp 23:30 and timestamp 35:00, features Dr. Heckman presenting his theories about the importance of character education in public schools; that non-cognitive (social emotional) skills are more important to workforce outcomes than cognitive (academic) performance. He goes on to discuss the importance of interventions linked to non-cognitive skills training to health outcomes. Heckman proposes that certain interventions will yield an impressive rate of return of up to 13% once health outcomes are considered. Watch a seven-minute excerpt here.

(Heckman) “Poverty, as we understand it now is not just money. Poverty, of course the way we measure it IS money, but actually it’s more than that. We’ve come to understand that it’s not JUST money. And that is what the great experiment was launched by Johnson. We’ve also come to understand it has to do with parenting, encouragement and basically this set of skills. And I think what we have now is a much more comprehensive notion.

So basically we think the early lives play a very important role for promoting social mobility, for promoting equality. And then miracle of miracles and we started following these people using the same kind of experiments that were started, but then stopped in the wake of the war on poverty, and head start. What we found was, yes, actually IQ did fade out after about age 10, just like Jenson said, just like everybody said.

And guess what? When we follow these people to age 40 and 50, these people have very high social and economic returns, and it came exactly through this mechanism of character skills and engagement. And surprise of surprise, even though these kids didn’t have any higher IQ, it also turned out they actually did have higher test scores. Why? Because these achievement test scores involve more than just being smart, it’s being motivated

We think about the skills problem, and JB referred to this skills problem, it’s an enormous problem. So we looked for examples at this measure, the civil international adult literacy survey that’s taken every few years. It’s basically America, the United States, when stacked up against all of the OECD countries is the worst in terms of percentages of people who are at the lowest rung of literacy and numeracy. We mentioned another dimension of this is the fact that among children, among males 16 to 26 eligible for military service, only about 25% are actually qualified. They’re mostly disqualified, a lot of it has to do with cognitive deficits and so forth. Now these are preventable, because we know from these interventions that we can do something about it.

We have the skills problem. But how do you promote skills? That leads to another issue if you…look at test score gaps, which is what sees a lot of attention between the haves and the have-nots; if you look at age 18 you see a tremendous gap between those kids who have parents who are college-educated and those whose parents are high school drop outs, mothers probably, ok. So if you look at the graph you’ll also see that that gap is there before they enter school, and it’s actually there at age three, which is the earliest age we can reliably measure these things.

So now wait a minute, you can say oh we’re talking about genetics, that’s a perfect eugenic argument, right? These people are born dumb to dumb parents and their dumb parents didn’t get education, so therefore this is just the manifestation of what Charles Murray was talking about. The answer is no, because what we’ve done is we’ve actually randomly assigned these children, put them in different environments, enriched their local environment, their parenting environment, the school environments. And we then track them against students who didn’t receive such supplementation early in life, and we find they’re much better performing. But we need a much richer inventory of how we decide what’s better and a deeper understanding of what the skills are that make them successful in life.

So, I think a good measure of how much the world has changed in terms of thinking about skills is a new report issued by the OECD. The OECD was the group that promotes the PISA exam, so every few years you know Shanghai is very proud and has some of the highest PISA scores in the world. And you go into China and you go into Hong Kong and they are lower and very envious. But the OECD now is getting the point. It only got it recently, but it’s now starting to say we need to inventory exactly these character skills, because they’ve been shown to be predictive, they’re also highly malleable, and they’re actually highly valuable even to somewhat later ages.

So even when we think we can’t boost IQ, that might be very difficult because the rank is stable and your ranking in the IQ distribution is pretty well established as JB was saying around 8, 9, 10 or somewhere in that zone. It is still true that these character skills are more manipulable (malleable?). In the sense they are actually our target of opportunity. So a much deeper understanding, and I think when we go in and look at what the economic and social benefits are of these interventions, we have a deeper and more comprehensive evaluation system looking at both cognitive and non-cognitive skills.

But to come to the economic return; we can see substantial benefits. So we have actually computed the rate of return, the kind of rate of return that venture capitalists worry about, and should properly worry about, and that many of you probably worry about. What we found was the rate of return on something like the Perry Preschool Program was somewhere between seven and ten percent per annum, per annum, which is extremely high. If you look at the US stock market average investment in equity between 45 and 2008, that’s above that. Great, ok so you’re actually finding it’s a very, very good investment. These are targeted towards kids who are disadvantaged; it’s providing family supplementation. We can talk about the details of those programs. Then, more recently, we did some studies and this blew people out; it blew me out. We also followed another group of children who are actually followed now in the wake of the Perry study, but in Raleigh Durham, North Carolina. We followed these children up to age 35, and we not only gave them the standard measures of unemployment, crime, participation in the larger society, but we also looked at health.

We asked how did they look in terms of health? What we found was that those children, now actually adults, have much lower risk factors for all the adult onset diseases: lower propensity for diabetes, lower cardiovascular conditions. And what we see is that there is not only a benefit that comes, but health. How can that be? It’s because of that same notion of regulation behavior, following numeracy, getting engaged in the larger society. We find less smoking, less drinking, less engagement in unhealthy lifestyles in the wake of having these higher levels of cognitive and non-cognitive skills. So, you know, we’re in the process of learning. But the fact of the matter is we’re getting a very high rate of return for that intervention. Preliminary evidence is suggesting somewhere between 11 and 13 percent IF we include the enhanced health benefits.”

This section is from the question and answer period and closing to the presentation. Timestamp 48:50, watch it here.

(Pritzker) “That expense that you talked about; gee, that’s a very expensive intervention? That’s taken into account in these returns, okay. So it’s not like, I mean, the expense gets you that return. So it doesn’t matter that your investment was a thousand dollars or a hundred dollars or five thousand dollars. The return is what you get on those dollars invested.

(Heckman) But in addition to the direct expense you’re also going to get the welfare cost of raising taxes, so that’s also factored in here, so the sum of ten percent or the return is after accounting for actually the direct cost of hiring the teachers and the cost of collecting taxes to finance those. So that’s why I think it’s a fairly compelling study…if you look at the evidence I’m happy to send you the papers we’ve written, and we’re writing more. But you are finding very strong precision about these estimates.

(Pritzker) And we’re not advocating for very, very expensive interventions specifically. There are lots of scalable, much less expensive interventions. In fact, that’s what I spend my time looking for and helping to evaluate the scalability of, because ultimately that’s how we’re going to get the federal, state, and local governments to adopt them. Right? They’ve got to feel less expensive, but the reality is the more expensive actually works, too…

(Heckman) It’s an area of evolution. We really want to find out what’s best practice and what’s cheaper, right?

(Pritzker) The returns on preschool are much lower than on 0 to 3. So the interventions on 0 to 3 that we know work are home visitation, just as an example. Home visitation works.

Now there’s an expensive version of home visitation, and there’s a less expensive version of home visitation. And there’s been lots of study on these home visitation programs, but the critical component of it is reaching the parent. The parent is the first and best teacher for a child and if you can reach a parent, almost every parent, almost, wants to be a good parent. So we know what works and we know what are some scalable versions. Some of them, by the way, are texting programs. So almost every poor parent in America has a smart phone, and there are programs just for reminding parents what things work, and they want to know and they want to do these things and they’ll find time to do them.

But back to getting communities to buy in, it is very hard, and we got involved, I’ll talk about social impact bonds. But basically bringing preschool to Utah, a state where the political environment for preschool is hard; we did it with a finance plan that made sense for Utah, for Salt Lake. It got community engagement in it and support for it, because, frankly because we showed them what the results would look like.

So we started with that. There was resistance on both ends for preschool for example and any kind of early childhood education. On one end of the political spectrum the resistance is, you’re interfering with the parent-child relationship; you’re somehow interceding, the government is being paternalistic and getting engaged in something that should be a private matter. That’s one side of the political spectrum. On the other side of the political spectrum are the views that well with a social impact bond is why are private investors getting involved in something government should do? The government should get all the returns on this, the taxpayers should get all the returns-I happen to agree with that, that the government should put forward. But how many people think, how many people have a surplus in their local, state or federal government right now? None.”

Previous posts about the ReadyNation Global Business Summit on Early Childhood:

Pre-K Profit: ReadyNation Hosts Global Business Leaders in New York City This November: Link

Making Childhood Pay: Arthur Rolnick, Steven Rothschild and ReadyNation: Link

Galton and Global Education Futures Forum: Scientific Racism Looking Backwards and Forwards: Link

-Alison McDowell

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Making Childhood Pay: Arthur Rolnick, Steven Rothschild, and ReadyNation

Reposted with permission from Wrench in the Gears.

Pre-K Teachers Heart Tech

The push for early childhood education access is NOT being driven by a desire to meet the basic human needs of children. Rather financial interests that view children as cogs in a national workforce development program are pushing it; and they see preschoolers as lumps of human capital to be plugged into economic forecasts. This is all happening at a time when human services are being privatized in the name of scalable, outcomes-driven social entrepreneurship. The trailer for a new documentary, The Invisible Heart, on social impact bonds indicates how much capital is flowing into this new market.

This post provides additional background on the ReadyNation Global Business Summit on Early Childhood Education that will take place at the Grand Hyatt hotel in New York City November 1-2, 2018. No U.S. educators or policy advocates may attend unless they come with at least four pre-approved business sponsors. Review the draft agenda here.

This is the second in a series. Read part one here.

Where did ReadyNation come from?

The idea emerged from a conversation three men had on a conference call during the summer of 2003:

  • Arthur Rolnick, senior researcher at the Minneapolis Federal Reserve
  • Robert Dugger, financial policy analyst and venture capitalist
  • James Heckman, University of Chicago economics professor

Its first incarnation, the “Investing in Kids Working Group,” focused on researching returns on early childhood investments, developing finance mechanisms, and crafting policy recommendations. Over the past fifteen years Dugger, in consultation with Heckman and Rolnick and with support from the Pew Charitable Trusts, gradually built a structure to undergird a global investment market fueled by debt associated with provision of early childhood education services.

The push for early childhood education access is NOT being driven by a desire to meet the basic human needs of children. Rather financial interests that view children as cogs in a national workforce development program are pushing it; and they see preschoolers as lumps of human capital to be plugged into economic forecasts. This is all happening at a time when human services are being privatized in the name of scalable, outcomes-driven social entrepreneurship. The trailer for a new documentary, The Invisible Heart, on social impact bonds indicates how much capital is flowing into this new market.

Arthur Rolnick, Steven Rothschild, and Pay for Performance

Much of my research has focused on the Boston area (global finance), the Bay Area (tech), Chicago (blockchain), and New York (urban policy). So I was surprised to find what may be a key piece of this puzzle actually comes out of Minneapolis Minnesota. Though perhaps the fact that Minnesota is home to the nation’s first charter school, City Academy that opened in St. Paul in 1992, indicates local conditions favor neoliberal reforms.

Arthur (Art) Rolnick spent his 40-year career as a senior economic researcher at the Minneapolis Federal Reserve Bank. During that time he also served as an associate professor in the economics department of the University of Minnesota and was co-director of the Human Capital Research Collaborative in the Humphrey School of Public Affairs. The Collaborative houses the Chicago Longitudinal Study whose researchers are tracking the short and long term effects of early intervention on 1,000 students who attended Chicago’s Child-Parent Centers in 1984-85.

The Chicago Child-Parent Centers were service providers for one of the nation’s first two early childhood social impact bonds, begun in December 2014. The Chicago SIB included payout metrics tied to third grade literacy scores. Thus far the program has issued maximum payments to investors including Pritzker, Goldman-Sachs and Northern Trust. According to this report from the Institute for Child Success, it is possible that over the seventeen-year time horizon for the SIB, $34 million could be paid out on the initial $16.9 investment.

Click here for the interactive version of this map.

Rolnick connected with Steven Rothschild, a former vice president at General Mills who left the corporate sector and launched Twin Cities RISE!, an “innovative anti-poverty” program that provided workforce training for low income adults, in the mid 1990s. Rothschild arranged with the state of Minnesota to provide services via an outcomes-based contracting arrangement where the organization was only paid when the “economic value” they provided to the state by increasing taxes (paid by those placed in jobs) and decreasing state expenditures (reduced costs for social services or incarceration) met approved targets.

Arthur Rolnick and Gary Stern of the Minneapolis Federal Reserve worked with Rothschild and Twin Cities Rise! to develop the economic analysis in support of the outcomes-based contracting initiative. Rolnick’s work with Rothschild eventually led him to examine the economic implications of early childhood interventions using data from the High/Scope Perry Preschool Study. In 2003, the year Rolnick had that auspicious phone call with Robert Dugger and James Heckman, he and and Rob Grunewald, regional economic analyst, put out the following report for the Minneapolis Federal Reserve: Early Childhood Development: Economic Development with a High Public Return.

In a 2006 profile of Rolnick, Minnesota journalist and blogger Kevin Featherly notes that report catalyzed $1 million in seed money for the Minnesota Early Learning Foundation, a project of the Minnesota Business for Early Learning. It also put Rolnick and Grunewald on the lecture circuit for the next several years where they touted early childhood education as a prudent economic investment. Weatherly likened Rolnick’s schedule after the release of the report to that of a presidential candidate, sharing the stage with Jeb Bush at the National Governor’s Convention, the head of the Gates Foundation at the National Council of State Legislatures, and presenting to a global audience at the World Bank.

Rothschild who served on the boards of the Greater Twin Cities United Way and Minneapolis Foundation, went on to found the consulting firm Invest in Outcomes and write the Non Non-Profit, a book that exhorted non-profits to focus on the Return on Investment (ROI) and measurable economic outcomes of the services they provide. These ideas eventually led the Minnesota legislature to adopt the “Pay for Performance Act” in 2011 that appropriated $10 million for a pilot program to develop Human Capital Performance Bonds or HuCaps.

Rothschild provides a detailed explanation of how HuCaps function in a 2013 article for the San Francisco Federal Reserve’s publication Community Development Investment Review. HuCaps differ from social impact bonds in that they are true bonds and tap into the state bond markets; which, in theory, could give them access to significantly more capital-trillions of dollars rather than millions. In this podcast with the St. Louis Federal Reserve, Rothschild describes the model developed by Twin Cities RISE! as the basis for much of the social impact investing activities that have emerged over the past decade.

Source for this slide.

As structured in the Minnesota legislation, the service provider is the one that takes the risk rather than the investor. If the provider is not able to meet the target metrics they are the ones who will not be paid. As a consequence, HuCaps have not yet taken off; see Propel Nonprofit’s analysis here.

Source for this slide.

Nevertheless, there are those who have not given up on the Human Capital Performance Bond approach. Arnold Packer, former director of the education reform and workforce development SCANS 2000 Center based out of Johns Hopkins University, wrote about HuCaps for the Brookings Institution in 2015 (the co-chair of the Commission on Evidence-Based Policy Making is Bruce Haskins also of Brookings). He noted that Milton Friedman was among the first to float the idea of leveraging private investment in human capital development. Take a minute to watch this one-minute video, from Institute for the Future, that portrays a college student contemplating entering into an income-sharing arrangement in exchange for tuition.

The idea that states could issue bonds for human capital in the same way they do for infrastructure like bridges, and that future savings will be created as people attain higher paying jobs due to their improved human capital, is central to the HuCap premise. In order to justify future cost savings, those receiving services must be tracked, so their “outcomes” can be measured over time. According to Arnold:

“This reform requires a shift in thinking on all sides, investors in human resources (early childhood education falls into this category) will have to consider statistically estimated benefits in terms of future cost savings and revenue as equivalent to projected revenue from a toll road. Government agencies will have to coordinate in order to structure attractive Human Resource bonds, since different agencies at different levels of government, benefit from the savings resulting from earlier investments.” Source

This model of finance, if ever widely adopted, would demand all recipients of public services (including education) be part of the government’s statistical estimate. Because many early-intervention services are directed at families, a person’s predictive profile would likely start to be amassed prenatally; babies assigned a Decentralized Identifier (DID), before they are even born. Estimates would be made about the likelihood a person would need to access services in the future, what those services would be, and what they would cost. Assessments would be made about the anticipated tax revenue a person would in turn generate over their lifetime. All of this data would need to be calculated in order to determine the impact metrics for the investors and structure “attractive human resource bonds.”

Before the rise of cloud-based computing, such a level of tracking would have been impossible. Having access to data to make those predictions would have been difficult to obtain. But that is rapidly changing in this world of Big Data, digital identity and “moneyball for kids.” The bi-partisan Commission on Evidence-Based Policy Making concluded public hearings in February 2017, and the vast majority of those providing testimony favored creating enormous pools of data to inform public policy decisions.

Evidence Based Policy Making

Read the report.

Responsibilities of the Commission on Evidence Based Policy Making:

Things seem to be on hold for the moment with Human Capital Performance Bonds, but I feel strongly they may be simply waiting in the wings until Blockchain sovereign identity is normalized. An Illinois state Blockchain task force (note Pritzker, backer of early childhood SIBs is running a well-funded campaign for governor of Illinois now) has developed preliminary recommendations linking public service benefits to citizens using Blockchain technology. They even envision building in behavioral incentives tied to the provision of services through digital economic platforms. See the diagram below for an illustration of how they might incentivize food purchases.

Read the report.

Of course the implications of this type of manipulation for people who live in food deserts with limited access to fresh produce remains unaddressed. And it doesn’t take a stretch of the imagination to see how other choices might be economically incentivized: which online course to take (the evidence-based one); which training program (the evidence-based one); which therapy provider (the evidence-based one); which medical treatment (the evidence-based one). But by whose measure? Who sets the metrics? Who profits when “evidence-based” standards are imposed?

How will independently-owned, neighborhood-based child care centers fare in this new landscape? If they are shuttered, what will the economic impacts be for communities, especially in economically distressed neighborhoods where such businesses are important sources of employment? Will small-scale providers be willing to collect the “human capital” data required to take advantage of pay for success investments? If they are willing, would they even have the money to purchase the technology (smart tables, anyone?) required to gather their “impact” evidence?

Rob Grunewald, Rolnick’s collaborater on the Federal Reserve Early Childhood paper, is on the ReadyNation Summit planning committee. Rolnick is part of a workshop, “Scalable Success Stories in Early Childhood Programs,” at 11:45 on Friday, November 2nd.

The “pay for performance” finance mechanism dreamed up by Rothschild and Rolnick in the 1990s is particularly well-suited to this age of Internet of Things data collection, surveillance, predictive analytics, financialization, and economic precocity. This is why we should all be very concerned about ReadyNation’s Global Business Summit on Early Childhood; especially because it so clearly discourages early childhood educators and policy advocates from attending.

Next up, Dr. James Heckman and the Institute for New Economic Thinking.

-Alison McDowell

 

Pre-K Profit: ReadyNation Hosts Global Business Leaders in New York City this November

Reposted with permission from Wrench in the Gears.

Data Driven PreK

The rise of pay for success, social impact bonds, development impact bonds, and outcomes-based contracting will usher in privatization of vast new areas of public services, including education and training at all levels from infants through human resource management (lifelong learning, reskilling). This is not merely a phenomenon of the United States; this summit is intended for a global audience, a neocolonial project driven by late-stage capitalism.

Business executives, government officials, and representatives of non-profits and NGOs from across the globe will gather in New York City this fall to discuss the business of early childhood. These are not people looking to open childcare franchises. No, that is not their “business.” The intent is more sinister, transforming our youngest learners into points of profit extraction under the guise of social justice and equity. Through technology and forms of “innovative finance” they aim to catalyze a speculative market in toddler data, using the lives of young, vulnerable learners as vehicles to move vast sums of social impact venture capital.

ReadyNation, a program of the Council for a Strong America, is hosting the summit, set to take place at the Grand Hyatt Hotel on November 1-2, 2018. Council for a Strong America, a bipartisan coalition of leaders from the law enforcement, military, business, religion, and athletics spheres, has placed influencers guiding early childhood education policy in every state. Their intent is to promote public-private partnerships that will generate investment returns for global finance while shaping children into a compliant citizenry conditioned to accept economic precariousness and digital surveillance while doing the bidding of the power elite.

The rise of pay for success, social impact bonds, development impact bonds, and outcomes-based contracting will usher in privatization of vast new areas of public services, including education and training at all levels from infants through human resource management (lifelong learning, reskilling). This is not merely a phenomenon of the United States; this summit is intended for a global audience, a neocolonial project driven by late-stage capitalism.

Remember the 2007 housing market crash? The fraud Goldman Sachs perpetrated, misleading investors to purchase financial instruments tied to sub-prime mortgage bonds? The $16.65 billion penalty Bank of America had to pay, the largest settlement between the government and a private corporation? Seeing financiers from both companies on stage at a 2014 ReadyNation event promoting early childhood social impact finance should give us pause. Watch the hour-long talk here. The excerpt below is taken from a two-minute clip where the moderator, Ian Galloway, introduces a panel on potential financing structures. Watch that here.

“Christina Shapiro is a vice president at Goldman Sachs. You know, I’ve heard a lot that if you’ve seen one social impact bond, other people may have heard it, too. If you’ve seen one social impact bond, you’ve seen one social impact bond, right? That is true with one exception, and that is that just about every social impact bond out there has Goldman Sach’s fingerprints all over it. They are by far the leaders in the space. They are creating this marketplace out of thin air, and I commend Christina and her colleagues for their hard work on that front.”

Ian Galloway, Senior Research Associate, San Francisco Federal Reserve

To dig the hole deeper, the Council for a Strong America has accepted over $10 million from the Gates Foundation since 2006, including a $4.2 million grant in October 2015 to “engage stakeholders around the Common Core and high quality preschool.” Last summer in the run up to the fall 2018 elections, Gates granted the organization $300,000 to “educate potential future governors about the importance of college and career readiness in their state.”

Gates Grants to Council for a Strong America

ReadyNation’s speakers range from the World Bank, UNICEF, Omidyar Network, and the Girl Scouts to KPMG, the Massachusetts Business Roundtable, Learn Capital, and Sorenson Media (founded by Jim Sorenson, Utah tech entrepreneur and impact investor). A previous summit launched early-childhood campaigns in Romania, Australia, and Uganda in 2015. ReadyNation Romania and The Front Project (formerly ReadyNation Australia) will be participating.

What do summit attendees get for their $200 registration fee? ReadyNation touts the event as “the only training ground in the world for business people from outside the children’s sector to become unexpected and uniquely influential advocates for public and private investments in early childhood…Summit attendees from the U.S. must be business people or public officials; those from outside the U.S. can come from other sectors.” Children’s advocates and policy experts in early childhood education are specifically excluded from the conference unless they attend with at least four business people. In order to attend, one must to submit an online request.

Why is ReadyNation so emphatic about excluding early childhood educators and policy advocates? Find out in Part 2: Making Childhood Pay: Arthur Rollick, Steven Rothschild and ReadyNation.

-Alison McDowell

Biocapitalism and the West Virginia Wildcat Teachers Strike

Anarchist_black_cat

West Virginia’s Teachers became guinea pigs in a state sanctioned experiment to lower the cost of healthcare by directly linking teachers’ implied unhealthy choices – measured through steps, blood glucose, and waist size –  to the rising cost of healthcare.

One under examined, but critical, contributing factor to the West Virginia Teachers’ wildcat strike was a battle over healthcare – specially rising premiums coupled with enrollment in healthy living programs requiring increasingly intrusive biometric data gathering paired with punitive measures if enrollees did not meet specified targets or refused to participate.

Trouble began for West Virginia’s Teachers with the Healthy Tomorrows Program – a requirement if they wanted to enroll in the state’s healthcare. This healthy living program required participants to submit biometric information gathered at a mandated visit with a designated primary doctor. The required biometric data for submission: blood pressure, blood glucose, cholesterol, and waist circumference. Failure to report or missing the program’s target ranges for these metrics would result in a $500 penalty.

As premiums continued to rise, West Virginia’s Teachers were hit with another shock, they would also be enrolled in the Go365 Program. Go365 required enrollees to wear Fitbits, report their steps, participate in check-ins to the program, and complete surveys which included how vigorously and often they performed sexual activity. Failure to report steps or to meet step targets would result in a $25 per month fee.

Biocapitalism and Education

The West Virginia Teacher’s strike brought to light how the deliberate linking of state power with biocapitalism has tangible dehumanizing effects.

From the separate but unequal institionalization of racism under Jim Crow to the rationing of resources under test-based accountability measures, public schools have a long history of being sites for state sanctioned experiments in social control.

Biocapitalism treats all life as a potential source of profit. Promissory value can be created by molding the next STEM ready workforce or locking kids into low wage, precarious career pathways. Financial speculation allows investors to bet on the winners and losers of the longevity and health game through private insurance rationing and discriminatory pricing. Government investment in social impact bonds opens a whole new market for speculation – an opportunity to bet on members of society too sick or broken to be covered by private insurance.

West Virginia’s Teachers became guinea pigs in a state sanctioned experiment to lower the cost of healthcare by directly linking teachers’ implied unhealthy choices – measured through steps, blood glucose, and waist size –  to the rising cost of healthcare.

One important aspect of this experiment is how it cleverly dismisses any critique of the overall healthcare system or the effect of the for-profit model on costs. Instead, the issue is framed as individual teachers making unhealthy choices as the sole driver of skyrocketing healthcare costs.

Sneaky.

-Carolyn Leith

 

 

 

Ted Dintersmith is not here to save neighborhood schools!

Reposted with permission from Wrench in the Gears.

Dintersmith your schools are obsolete

Dintersmith knows good storytelling has the power to sway people’s opinions and has the money to buy the best messaging. His first outing was “Most Likely To Succeed” a documentary screened nationally with the goal of initiating discussions about disruptive education.

No, Ted Dintersmith is not coming to save our schools, because to him they’re obsolete. Last week Valerie Strauss of the Washington Post pitched Ted Dintersmith’s new book “What School Could Be,” and many ed-activists ate it up. I thought by now a “philanthropic” white male technocrat investor with absolutely no teaching experience coming on the scene to tell us how to fix our broken-on-purpose schools would be met with a healthy dose of skepticism. Dintersmith might say what we want to hear. His pitch might validate our concerns about punitive high-stakes standardized testing and the psychological damage caused by developmentally inappropriate education standards. He may criticize AP classes and the College Board; but if it sounds too good to be true, it probably is. Consider his quote from a recent EdSurge article “the focus should really be on funding schools that produce future entrepreneurial adults, instead of entrepreneurial adults today funding obsolete schools.”

Dintersmith’s is the face of Ed Reform 2.0. The new paradigm for education he envisions replacing our “obsolete” schools with is one where:

Competency or mastery-based education is the norm.

Skills are uploaded to online portfolios via apps.

Mindsets and habits of work are tracked.

Children teach one another.

Students are expected to be “in charge” of their learning.

Teachers become “mentors;” or are even replaced by volunteers.

Out of school internships are prioritized.

Instruction may be outsourced to community or work-based organizations.

Students are expected to have a passion and a pathway to the workforce.

With such a model, bricks and mortar schools and certified teachers could wither away and eventually disappear.

I had exchanges this week where I was told that everything in the Strauss piece sounded so good. It couldn’t be argued with, even though the person delivering the message hailed from one of the largest early-stage tech venture capital firms in the world. We should simply accept what he said at face value and be grateful that someone was saying it. I expect many teachers reading the article wanted to believe they would be the ones leading the project-based learning Dintersmith pitched; that one day they would be given back their autonomy and allowed to manage their classrooms again. If they had paused to consider how the venture capital crowd is reimaging education, surely they would have soon realized those were unrealistic expectations. The Dintersmith version of “personalized” learning is about disempowering teachers. Those projects will happen “Out of School Time” and be run by cyber-education companies or gig-economy precarious labor in the learning ecosystems envisioned by Knowledgeworks.

Dintersmith knows good storytelling has the power to sway people’s opinions. He founded and funded the Catalyst Initiative with Sundance to match “forward-thinking financiers” with social justice film projects. He has the money to buy the best messaging. His first outing was “Most Likely To Succeed” a documentary screened nationally with the goal of initiating discussions about disruptive education. Many many ed-activists took the bait and screened the film not understanding it was a Trojan horse for Ed Reform 2.0. The blogger Edu-Shyster interviewed him at the time, and Diane Ravitch shared Berkshire’s post noting, “This is good news! A venture capitalist has seen the light.” At least one thoughtful commenter, Dienne, saw through the sham.

Dienne - Dintersmith

It is interesting that in her piece Strauss attempted to set up Dintersmith as a foil to Gates, a kind of “good philanthropist” “bad philanthropist” dynamic. In fact, they are both on the same team. Case in point: High Tech High, which was a focal point of Dintersmith’s film, is a charter school based in San Diego that was provided seed money in 2000 by the Gates Foundation to the tune of $9.3 million.

Gates High Tech High

A recent feature in the Chronicle of Higher Education ran the headline “A Venture Capitalist Uses Philanthropy to Reimagine Education,” while a Forbes article from last November proclaimed “How A Former VC Wants to Disrupt American Education.” Are you seeing the red flags now? Dintersmith made his fortune at Charles River Ventures, where he is listed as partner emeritus. The company invests in technology startups. A few are education-related, like Udacity, but more involve AI, robotics, cloud-based computing, biotech, and automation. You can review the company’s extensive holdings in Crunchbase. CSV’s Boston office is located at One Broadway in Cambridge, a stone’s throw from MIT’s Sloan School of Management where Jean Hammond, founder of the Learn Launch ed-tech accelerator, sits on the board. They also have offices in San Francisco and Palo Alto.

CRV

CRV Other team members

Dintersmith likes to portray himself as just an average person who happens have the wherewithal to take two years off to tour, meeting with billionaires, politicians, teachers and students to reimagine public education. Though retired, he is cultivated as a thought leader in tech and innovation. The year he launched his film, Dintersmith met with Gates and Global Education Futures Forum affiliate Tom Vander Ark in Seattle to discuss impact investments in education.

The 2015 gathering, hosted by Vulcan Inc. included representatives from Digital Promise, the Clayton Christensen Institute, and Dreambox. Vulcan Inc. is the “engine behind Microsoft cofounder Paul G. Allen’s network of organizations and initiatives.” Mr. Allen has his hands in many enterprises. In addition to being an incubator for innovative technologies, the firm manages extensive real estate holdings, ownership of the Seattle Seahawks, and the Allen Brain Science Institute. A number of guests at the Vander Ark/Vulcan meet-up created videos to promote impact investing in education. This is Dintersmith’s clip.

Dintersmith - Getting Smart

That conference resulted in the 37-page report “25 Impact Opportunities in K12 U.S. Education.” It references Dintersmith’s film and can be read here. I have found no evidence that Charles River Ventures is directly involved in Pay for Success or Social Impact Bonds. They are, however, based in Cambridge, the epicenter of the innovative finance sector, and make investments in the types of technological “solutions” that will enable the data-collection and impact evaluation of outcomes-based contracts.

In November of 2015, Dintersmith was referenced in a White House press release detailing the launch of the Obama administration’s Next Generation High School initiative. The president’s call to action specified a more “personalized,” “real world” approach to learning that, of course, emphasized STEM. Dintersmith, along with Ed Reform 2.0 funders like the Nellie Mae, Grable, and Overdeck Foundations, teamed up with Hewlett Packard to create a MOOC that would promote a “deeper learning” approach to education to a thousand school leaders nationwide. Their “School ReTool” effort is housed within IDEO, a global design and innovation company focused on “social impact.” Among IDEO’s partners are the Gates, Rockefeller and Bezos Family Foundations. Richard Culatta, Director of Educational Technology under Obama, former Chief Innovation Office for the State of Rhode Island and now CEO of the International Society of Technology in Education, is currently a design resident for IDEO.

School ReTool

In recent years Mr. Dintersmith has invested some of his fortune in Big Picture Learning, a school model where students pursue work-based placements for much of their school week. The organization based in Rhode Island launched in 1995, and with considerable support from the Gates Foundation expanded to a network of 65 schools operating in the United States, Canada, Belize, the Netherlands, Italy, New Zealand and Australia. Work-based internships are a key element of their program, and Dintersmith put $100,000 towards Big Picture’s capacity to share the ImBlaze internship coordinator and data collection platform app created by Salesforce with other education service providers. The platform tracks academic and social-emotional competencies students demonstrate on the job.

Salesforce - Dintersmith - Big Picture Learning

Dintersmith also financially backed the Mastery Transcript Consortium, a collective of private schools and non-profit groups that hopes to replace traditional transcripts based on graded academic content with mastery-based learning standards and micro-credentials. The plan is to leverage the reputation of elite private schools to fundamentally restructure the college admissions process for all high school students.

Dintersmith - Big Picture Learning

Members of the Mastery Transcript Consortium’s Advisory Council include:

Andrew Calkins of Next Generation Learning Challenges

Auditi Chakravarty of the College Board

Virgel Hammonds of Knowledgeworks

Emmi Harward of the Association of College Counselors in Independent Schools

Mark Milliron of Civitas Learning

Kaleb Rashad of High Tech High

Todd Rose of the Mind, Brain and Education Program at the Harvard Graduate School of Education

David Ruff of the Great Schools Partnership

Chris Sturgis of CompetencyWorks

Tom Vander Ark of Getting Smart

Connie Yowell of Collective Shift (Cities of LRNG, formerly of MacArthur Foundation)

Knowing the background of these individuals it seems clear they are laying the groundwork for a system along the lines of Edublocks described in Institute for the Future’s video “Learning is Earning.” This is a must-watch if you have not yet seen it.

Competency-based education is a means by which reformers and investors intend to move instruction outside schools, away from certified teachers, and into cloud-based platforms and community and work-based learning programs. It’s about making education subservient to the needs of industry. It will erode the centrality of the student-teacher relationship and cement public education as a profit-center for the technology and social impact investors. That is what Mr. Dintersmith is selling. While I appreciate many teachers want to believe the best about people, I need for you all to start to be more skeptical and militant in pushing back against this transformation. He is giving you a sugar-coated poison pill. They know how to play you, and they are doing it. Let’s turn this around, shall we?
-Alison McDowell

Step-by-step Privatization and Profit: ESSA Delivers Schools to Wall Street with a Bow on Top

Reposted with permission from Educationalchemy.

100_dollar_bill_green

ESSA was designed to open the flood gates for neoliberal profiteers to not only profit from public educations services (I,e. tests or curriculum) but to completely own it…

Social impact bond projects are very definitely privatisation. PFI/PPP projects have effectively privatised the design, finance, construction and maintenance of much public infrastructure. Now social impact bond projects potentially privatise the design, finance, service delivery, management, monitoring and evaluation of early intervention and prevention policies.”

Step One- Curriculum: Common Core standards created one set of standards (modules) (originating from a global agenda circa 1985) For a full history of support for this outline click the link.

According to a promotional flyer created by the Bill and Melinda Gates Foundation:

“Education leaders have long talked about setting rigorous standards and allowing students more or less time as needed to demonstrate mastery of subjects and skills. This has been more a promise than a reality, but we believe it’s possible with the convergence of the Common Core State Standards, the work on new standards-based assessments, the development of new data systems, and the rapid growth of technology-enabled learning experiences.” 

So that…

Step Two-Testing: There can be one consistent numerical metric by which to measure student outcomes (PARCC)

So that…

Step Three- We can have modularized Competency Based Assessment: Instruction and ongoing testing can be delivered via technology ….

Competency-based education has been part of Achieve’s strategic plan for a few years, … states and national organizations that have made this topic a priority: Nellie Mae Education Foundation, iNACOL, Digital Learning Now, CCSSO and NGA.”

Pearson. “With competency-based education, institutions can help students complete credentials in less time, at lower cost.”

So that…

Step Four– We can have Pay for Success (or) Social Impact Bonds (evaluated for their “success” via the competency/outcomes based model) replace the funding infrastructure of public schools….

CTAC, the Boston-based Institute for Compensation Reform and Student Learning at the Community Training and Assistance Center partners with departments of education to develop and promote student learning outcomes (SLO’s). William Slotnik is executive director of CTAC. He advocates for VAM and merit pay schemes. “William Slotnik,… has argued that performance-based compensation tied directly to the educational mission of a school district can be a lever to transform schools.”

According the National Governors Association (NGA): “CBE can be a way for states to pay for the outcomes they want if supported by a funding formula that allocates dollars based on student learning, not simply time spent in a classroom or full-time equivalency” http://www.nga.org/files/live/sites/NGA/files/pdf/2015/1510ExpandingStudentSuccess.pdfm

ESSA was designed to open the flood gates for neoliberal profiteers to not only profit from public educations services (I,e. tests or curriculum) but to completely own it. See Fred Klonsky who concurs with Mercedes Schneider that “these bonds are an open door for the exploitation of children who do not score well on tests.” Social Impact Bonds have been criticized as a central piece of ESSA as noted by BATS: “‘Pay for Success’ from Every Student Succeeds Act as it is located in Title 1, Part D, Section 4108, page 485. Social Impact Bonds favor financial investors and NOT KIDS! In Title IV, A in the section titled Safety and Healthy Students, page 797, Social Impact Bonds are defined as ‘Pay for Success.’ Investors are paid off when a student IS NOT referred to special education. ”

The entire system of reforms over the last three decades have been a step by step sequence of actions designed to privatize public education as a for- profit enterprise of Wall Street investments.

Social impact bonds are a development in the mutation of privatization … The new emphasis on financialising and personalising services to create new pathways for the mutation of privatisation recognised that health, education and social services could not be sold off in the same way as state owned corporations. It ensured marketisation and privatisation were permanent and not dependent on outsourcing, which could be reversed by terminating or not renewing contracts (Whitfield, 2012a and 2012b).”

Again, the NGA: “In addition, leadership, promotion, and pay structures might look different in a CBE system that asks educators to take on new, specialized roles. Underpinning many current policies are labor contracts, which specify the educator’s role based on specified amounts of class time. Such policies would not only be unnecessary in a CBE system but would significantly impede the adoption of such a system.”

You dismantle labor unions on a global scale, which was, the goal of ALEC and the World Bank back when they began devising these policies. The following is an outline from the World Bank link on Global Education Reform,  summarizing what they think are key issues:

  1. Decentralization & School-Based Management Resource Kit
    Directions in Development: Decentralization Series

Financing Reform

  1. Vouchers
  2. Contracting
  3. Private Sector
  4. Charter Schools
  5. Privatization
  6. Private Delivery of Services

Teacher Reform

  1. On-line resources related to teacher career development
  2. Teacher Evaluation as part of Quality Assurance

Curriculum Reform

  1. Country Examples of Curriculum Reforms
  2. Accountability in Education
  3. Standard in Education

Does any of this sound familiar to you?

One report I found by Pauline Lipman (2012)  summarizes all of this quite nicely:

 “Under the Global Agreement on Trade in Services, all aspects of education and education services are subject to global trade. The result is the global marketing of schooling from primary school through higher education. Schools, education management organizations, tutoring services, teacher training, tests, curricula online classes, and franchises of branded universities are now part of a global education marketEducation markets are one facet of the neoliberal strategy to manage the structural crisis of capitalism by opening the public sector to capital accumulation. The roughly $2.5 trillion global market in education is a rich new arena for capital investment …and testing is a prominent mechanism to steer curriculum and instruction to meet these goals efficiently and effectively.”

The 2011 ALEC Annual Conference Substantive Agenda on Education shows their current interests:

“…the Task Force voted on several proposed bills and resolutions, with topics including: digital learning, the Common Core State Standards, charter schools, curriculum on free enterprise, taxpayers’ savings grants, amendments to the existing model legislation on higher education accountability, and a comprehensive bill that incorporates many components of the landmark school reforms Indiana passed this legislative session. Attendees will hear a presentation on the National Board for Professional Teaching Standards’ initiative to grow great schools, as well as one on innovations in higher education.”

According to one European white paper: “Philanthrocapitalism is the embedding of neoliberalism into the activities of foundations and trusts. It is a means of marketising and privatising social development aid in the global south. It has also been described as Philanthropic Colonialism … It’s what I would call ‘conscience laundering’ — feeling better about accumulating more than any one person could possibly need to live on by sprinkling a little around as an act of charity. But this just keeps the existing structure of inequality in place. The replacement of public finance and grants from public/foundations/trusts to community organisations, voluntary organisations and social enterprises with ‘social investment’, requiring a return on investment, means that all activities must be profitable. This will have a profound impact on the ability to regenerate to meet social and community needs. The merging of PPPs, impacting investing and philanthrocapitalism would be complete!”

-Morna McDermott

Gambling With Our Futures: Big Data, Global Finance and Digital Life

Reposted with permission from Wrench in the Gears

broken on purpose

Through predatory public-private partnerships, global financiers are in the process of digitizing not only our education system, but many other aspects of public service delivery. This 10-minute video provides an overview of “Pay For Success” and social impact bonds, detailing how their operations hinge on intrusive and oppressive collection of data from our classrooms, homes, jails, and clinics.

By defining “success” in narrow terms suited to outcomes-based contracting, powerful investors will control how public services are delivered. Securitization of debt associated with program operations will turn our lives, including those of our children, into fodder for financial speculation. YouTube originally categorized this video as a comedy; perhaps based on the whimsical nature of the collages. After watching it, however, I’m confident you’ll see it’s truly a horror show. A slide share version of the video can be viewed here and a PDF of the script is available here.

I wish to express my deep appreciation to all who offered support and input on the creation of this piece, especially Dr. Tim Scott whose groundbreaking research is foundational to understanding this topic (read more here, here, here) and Mary Porter for her valuable editorial insights. The artwork was prepared with scissors and construction paper at my kitchen table with the goal of making this critical information accessible to a wider audience. My hope is that it will pique your interest and spur you to explore the linked resources that follow.

-Alison McDowell

Additional Resources

Impact Investing and Venture Philanthropy’s Role in Sowing the Seeds of Financial Opportunity, Tim Scott, Truthout, Link

Social Impact Bonds: The Titans of Finance as the Altruistic Merchants of Schools and the Common Good, Tim Scott, Dissident Voice, Link

Education Technology, Surveillance and America’s Authoritarian Democracy, Tim Scott, Dissident Voice, Link

Race, Finance and the Afterlife of Slavery, A talk given at the Whitney Museum of America Art by Dr. Justin Leroy, Link and his paper Bonded LifDownload

Global Finance Needs Our Schools to Fail, Wrench in the Gears, Link

What You Should Know About “Pay For Success” As Testing Season Approaches, Wrench in the Gears, Link

Smart Cities and Social Impact Bonds: Public Education’s Hostile Takeover Part II, Wrench in the Gears, Link

Who are the Players in Pay for Success / Social Impact Bonds?, Wrenches of Resistance, Link

Is Wall Street About to Take Over Public Education Once and For All?, Emily Talmage, Save Maine Schools, Link

The Real Reason Your Child Is Being Psychologically Profiled At School, Emily Talmage, Save Maine Schools, Link

Wall Street Zombies, Coming Soon to a Pre-K Near You, Emily Talmage, Save Maine Schools, Link

Social Impact Bonds, A Primer, Deb Mayer, Parents Across America, Link

Pay for Success-Also Known as Social Impact Bonds, Senator Orrin Hatch and the Every Student Succeeds Act (ESSA), Carolyn Leith, Seattle Education, Link

Pay for Success and the McCleary Crisis: Did the Every Student Succeeds Act (ESSA) Help Position Social Impact Bonds As A Last Resort Funding Option For Our Public Schools?, Carolyn Leith, Seattle Education, Link

The Proposed NSA-Like National Database for Student Data: Moneyball for Kids, Cheri Kiesecker, Missouri Education Watchdog, Link

Congress Suspending Rules to Rush Through Bill For National Citizen Data System: HR 4174, Cheri Kiesecker, Missouri Education Watchdog, Link

Scoop.it! page of articles on Pay for Success Programs and Social Impact Bonds, curated by Roxana Marachi, EduResearcher, Link

Biocapitalism, Corporate Colonialism & Education Policy

Reposted with permission from Educationalchemy.

Clearcutting_in_Southern_Finland

To learn more about how biocapitalism controls bodies and minds of children via public education policy read Clayton Pierce –Education in the Age of Biocapitalism: Optimizing educational life for a flat world. Pierce explores how generations of “extractive schooling” (of which standardized testing has been a part since the birth of the Eugenics movement in the early 1900’s) and how this has begun to transform itself through “technologies of control” of which the increasing push toward computer learning, machine learning, and artificial intelligence as the mode of education delivery for all children. He concludes, “education life is ever more becoming the target of an expanding range of sophisticated technologies of control (p. 142) … calling for greater and greater degrees of regulation and discipline over the body of the students” (p. 143). This makes me wonder even more about Class Dojo and other uses of privately owned technologies to monitor the student body and mind. And the purpose of them becomes yet more evident.

In the last few years a lot of debate has been had over promise and perils of ESSA. Many education advocates argued we must embrace ESSA because it promised to reduce federal choke hold of high stakes standardized testing that was wielded starting with NCLB and ramped up further under Race to the Top. The promise of EESA seemed too good to be true. Why would the same people who devoted decades to dismantling public schools, creating avenues for defacto segregation, and privatizing a public system suddenly want to turn around and “do the right thing?” ESSA authors (Lamar Alexander) claimed that testing would take a “back seat” And it has. The argument in support of ESSA was “to restore responsibility to state and local leaders what to do about educational decisions. If a state decides to move away from Common Core, they don’t have to call Washington and ask permission—they can just do it.”

And so many supporters of democratic public education “bought in” to the hype. Exactly what ARE states deciding to do instead? Those are the details we need to examine, and it’s vital (if we are really to reclaim public spaces and democracy) that we understand that there is a global paradigmatic shift occurring beyond the scope of what we already think we know or can anticipate. We must broaden our understanding of the end-game.

In unwritten or loosely defined ways, ESSA also ushers in a host of opportunities for corporations and private entities to avail themselves of every child’s most private funds of data. See Emily Talmage. The data surveillance tactics have found their ways into what otherwise might have been meaningful community and classroom practices.

Companies and government agencies still have access to students test scores (via online daily competency based education data), despite claims of reducing end-of-year testing. ESSA may in fact be reducing the role that HST testing does play in education policy and practice. But don’t be fooled. It is not because those of us in the opt out movement “won” the battle. The powers-that-be manufactured that move as a distraction. The formulators of ESSA have created the illusion that these new policies will be what we want. The opposite is true. The new avenues of data collection formulated for ESSA, in addition to academic (test) data,  include social emotional data, measuring such things a “grit and tenacity.”  They evaluate “mindfulness.” Some might be asking the question “why?”—what is to be gained from this data collection? The answer is: A great deal if you are keeping up with the research. You know this answer– at least in part.

In part, it is because in the traditional neoliberal framework, any data means money. For example, “Silicon Valley is going all out to own America’s school computer-and-software market, projected to reach $21 billion in sales by 2020.”

Data also means knowing how to anticipate outcomes through predicative analytics, how to sort and track students as future consumers, workers, or prisoners (using 3rd grade data to build prisons goes back decades). But wait….there’s more. We need to understand what this “more” is, and why HST (as insidious as it is/was) PALES in comparison to the new data collection mechanisms and forms of data being mined, and the ways in which this data will significantly erode global democracy and human rights. This is because “a mechanism that is at the heart of biocapitalism in its ever-expanding attempts to commodify all aspects of life.” (Haraway).

The capitalist/consumer paradigm is shifting beneath our feet. With the growing capacities of new technologies, such as artificial intelligence and the push for Big Data (McKinsey),  we have seen in the last few decades the development of education policies mirroring something more (i.e. Common Core becomes CBE which becomes online learning which means more and more uses for AI and tracking student behavior because now the computers must monitor the children once the teachers are all gone)…. See a summary here. The growing technological advances are slowly forming a new relationship between human and capital. It’s called biocapitalism. And the education policies underway, invited in through the gates of ESSA and other tactics such as social impact bonds, are the way forward for biocapitalism to successfully engender us unto it. Those “innovative assessments” being developed for ESSA are a vehicle by which corporations can build a new biocapital world for all of us. In a biocapital reality, data becomes surveillance becomes total control.

Biocapitalism transforms the interdependent systems of capital and labor (as external phenomena) into a capitalist system that utilizes more abstract form of labor that are internal and intangible. The relationship between man and machine is far more enmeshed in a biocapital relationship.

One website describes it as follows:

“(T)he concept of biocapitalism refers to the production of wealth by means of knowledge and human experience, through the use of those activities, both intellectual and corporeal, that are implicit in existence itself. We might add that every process of production reflects not only material realities, but also social contexts. Thus, relations of production not only characterize different modes of production, but also societal forms. Gradually, the process of production turns into a process of production and reproduction of itself, which is the fundamental activity of a living organism. Although this basic idea is shared by all social forms of life, it becomes absolutely central in biocapitalism.”

As this article Harpers from 1997 clearly describes, “Scratch the surface of information and biotech revolutions ….and what one discovers underneath is a ‘control revolution’….a massive transfer of power from beauracries to individuals and corporations. In an unregulated control revolution free markets and consumer choice become even more dominant forces and in virtually every arena social regulation gives way to economic incentive. …even such social intangibles as privacy become commodified.”

To learn more about how biocapitalism controls bodies and minds of children via public education policy read Clayton Pierce –Education in the Age of Biocapitalism: Optimizing educational life for a flat world. Pierce explores how generations of “extractive schooling” (of which standardized testing has been a part since the birth of the Eugenics movement in the early 1900’s) and how this has begun to transform itself through “technologies of control” of which the increasing push toward computer learning, machine learning, and artificial intelligence as the mode of education delivery for all children. He concludes, “education life is ever more becoming the target of an expanding range of sophisticated technologies of control (p. 142) … calling for greater and greater degrees of regulation and discipline over the body of the students” (p. 143). This makes me wonder even more about Class Dojo and other uses of privately owned technologies to monitor the student body and mind. And the purpose of them becomes yet more evident.

So as we continue to fight yesterday’s battle, i.e for a reduction in standardized testing and believe that that’s a “win” while also ignoring the profound destruction these other education policies (see McDowell) being quietly floated under our noses are having, the effort to control the next generation (our children) will be complete. We cannot become distracted by a bait-and -switch set of tactics.  Look for the forest, not the trees. We have to see the picture for these corporate reformers is much bigger than most parents and teachers and citizens can even imagine. It explains why global billionaires and tech giants like Bill Gates and Google have such a vested interest in “disrupting” education and taking education over with “21st century technology.” Biocapitalism relies on “the use of the relational, emotional and cognitive faculties of human beings.” LINK. In a biocapitalist framework of which 21st century education is a necessary part, “what is exchanged in the labour market is no longer abstract labour (measurable in homogeneous working time), but rather subjectivity itself, in its experiential, relational, creative dimensions. To sum up, what is exchanged is the ‘potentiality’ of the subject. Whereas in the Fordist model it was easy to calculate the value of labour according to the average output and professional skills based on workers’ education and experience, in bio-capitalism the value of labour loses almost any concrete definitional criterion.” LINK

The goal is not merely to sell us all iPads or market education materials and services. The scope is greater than that, and personal data (to be gathered via educational systems sold out to private interests) will use our children’s data not simply to sort and track them by test scores, not simply to close schools in black and brown neighborhoods to profit Wall Street charter schools)….sure all of that is true….but that’s not the end game. We cannot continue to fight yesterday’s demons and expect to reclaim the rights to our schools, our children’s futures, or our democracy. First, we have to see and understand the nature of biocapitalism as an all encompassing and global phenomena and the clear pathways between the new ESSA assessments and education delivery systems and the mechanisms of control being constructed.  We have to construct systemic avenues of wholesale resistance instead piece meal compromises. We cannot afford distractions or avoidance.

The devil is in the details.

The devil is in the data.

-Morna McDermott

Bill Gates’ Data Quality Campaign is Coming for Your Child’s Privacy – Again.

Original Title: Big Money Coming for Your Child’s Privacy – Again. Reposted with permission from Save Maine Schools – Helping You Navigate Next-Gen Ed Reform.

data oil

In my fourth grade classroom, when there is something very important that I want all of my students hear and to understand the first time (a task that is more difficult than you can imagine), I tell my kids to “wake their brains up.”

And then I do this (sort of) to demonstrate:

tenor.gif

Today, I am asking parents to do the same.

And this is because your child’s privacy is under attack, and you, moms and dads, are literally the only thing standing in the way of the complete and utter hijacking of all personal information related to your loved ones.

Before you glaze over, realize that the implications of this data-grab may be greater than you think.

This week, a group of corporate-funded researchers joined Bill Gates’s “Data Quality Campaign” to lobby legislators to weaken the Family Education Rights and Privacy Act (FERPA) yet again.

In an era when entire school districts are being shut down due to data breaches and ransom notes from anonymous hackers, profiteers are seeking to put your child’s personal information into the hands of still more people.

Screen Shot 2017-10-30 at 2.30.41 PM

But here’s the thing: it’s not only creepy anonymous hackers that we need to protect ourselves from.

Data was recently called the “new oil” by the CEO of Mastercard, but few people seem to understand how – beyond vague notions of algorithms and advertising revenue – they intend to turn our personal information into a multi-trillion dollar market.

The intent is to put social services – schools, public health, prisons, foster care, you name it – into the hands of private investors via “social capital markets.”

Using social impact bonds, pay-for-success contracts, and other so-called “innovative” financial tools, investors – in collaboration with a wide network of corporate-sponsored “nonprofits” – intend to hand out loans for public services in exchange for repayment (with interest) when we meet theirpredetermined outcomes.

It’s the technocratic nightmare behind ever-increasing calls for “evidence-based” (read: data-based) policy:

Screen Shot 2017-10-30 at 2.33.05 PM

that leads not only to endless demands for data-collection, but to service-shortcuts like ipads in place of teachers and for-profit foster care programs that claim excellent “outcomes” while children are dying in their care.

(Please read here for more.)

And so when they – the data-miners themselves – suggest that perhaps we put our children’s data into something more “secure” like blockchain, realize that they are simply trying to secure the very data they themselves need to build their fortunes.

Unfortunately, this means that demands for greater “privacy” protections are not going to be enough.

What we need to do is stop the oil rigs from being built on our children’s backs in the first place.

data oil

 

#TOTALREFUSAL2017   #DATAREFUSAL2017

Save Maine Schools

Social Impact Bonds — a Primer

Reposted with permission from Parents Across America Oregon.

Monopoly

This post is the first in a series on social impact bonds. The idea is rather simple, but the devil is in the details.  Although the concept has been around for a few years and caused controversy in other places,  it has only recently come to my attention in Oregon. That topic will be the subject of a future post. Goldman Sachs is a purveyor of social impact bonds. It seems only fitting that they should be our guide through a first look at SIBs.

 

“Goldman Sachs is a pioneer in the creation of the “social impact bond” – an innovative and emerging financial instrument that leverages private investment to support high-impact social programs.”  Goldman Sachs, 2014

 

During the past few years while parents and educators have been struggling to protect students from the  harmful effects of high stakes tests and edtech, the billionaire class has been salivating over their most devious scheme yet: social impact bonds (SIBs). While they sound benign enough as portrayed in the graphic below, social impact bonds are the proverbial “wolves-in-sheep’s-clothing.”   Below is a Goldman Sachs’ explanation for the 1%:

 

For a printable 11″ x 17″ back-to-back copy of both posters, click here.

 

 

Using the Goldman Sachs poster as a template,  I’ve taken the liberty to expand and improve on that description in plain speak. Please feel free to share widely. Below is a translation for the 99%:

 

Social impact bonds are also referred to as Pay for Success programs. More about that in a future post. What questions and concerns do you have?

-Deb Mayer

The New “Jack”: Trading Justice for Grit

Reposted with permission from Educationalchemy.

Statue of Liberty in Disgust

What reformers are able to do is to distract schools and communities from engaging in the more radical systemic work that RJ was intended to do…and places (again…) our best initiatives, the ones we believe in, into the hands of the reformers and privatizers who are experts at selling us back our ideas as watered down, declawed, defanged versions of their original selves. We’ve taken the equivalent of a revolutionary treatise and reduced it to a Hallmark card.

Is Restorative Justice being “jacked?”

Restorative Justice (RJ) has a lengthy (centuries-old) global history too lengthy and complex to elucidate here. It  thankfully has become the recent focus of school disciplinary and judicial systems at a time when the school- to- prison pipeline is booming (thanks, private prisons), policy brutality is soaring, there is a rise in hate crimes (thanks, 2016 elections), and the inequitable rates of imprisonment and suspensions between white students and students of color have now continued unabated for decades.

However, despite its powerful and positive effects, and future potential to radically re envision our approach to peace, justice and sustainable communities, I am beginning to witness the emergence of something else calling itself “restorative justice,” but is perhaps offering us something else.

In schools across the United States, RJ being presented as group circle discussions on just about anything (so … nice democratic classroom practice… but not justice focused…) and the language being blended into what is being touted as “justice” frameworks are beginning to smack of something else reformy….GRIT.

Speaking to the GRIT narrative,  Pedro Noguera says “I’m not hearing in the conversation acknowledgments of the effect poverty, income inequality and the opportunity gap has on student achievement …All the grit in the world can’t compensate for the obstacles that face so many students in low income communities.” So, when RJ is synonymous with “grit” what happens to the focus on systemic injustice? It becomes  … something else.

RJ has its (contemporary) roots in 1970’s work in challenging systems of inequality by placing the tools for change and healing in the hands of children and communities themselves, and reducing the school- to- prison pipeline. RJ was (is) a practice intended to, “protect individuals, social stability and the integrity of the group.” (“Utu”Ministry of Justice, New Zealand. Retrieved 17 September 2013).

But more and more, what is being called RJ is in fact a focus on “character building” or “grit”—these terms attend to individual character, not on addressing systematic inequality. They place the narrative back in the neoliberal lap of individualism. While restorative justice is definitely personal (i.e perpetrator and victim), the focus is more on community building/healing than it is on strengthening personality traits. It is a process that commits people to one another in a rebalancing of the power distribution in society and shared behaviors. “Restorative justice views violence, community decline, and fear-based responses as indicators of broken relationships. It offers a different response, namely the use of restorative solutions to repair the harm related to conflict, crime, and victimization.” (Zehr, Howard. Changing Lenses – A New Focus for Crime and Justice. Scottdale PA: 2005, 268–69).

Now that RJ is the new “in” thing (everyone’s doing it) it has a following, and examples abound everywhere of teachers modeling this practice. Some of these classrooms are focused on “vocabulary” which includes teaching kids to focus on words like: orderliness, perseverance, and rigor. Not sure what any of that has to do with justice. What I am beginning to sense is that RJ is being carefully and quietly hijacked by the GRIT narrative that has recently gained traction as the vehicle for teaching (tracking? training?) social emotional learning. Yet, ironically they are at their core very different things. Grit and Duckworth’s study have been linked to racist practices and research.

Concepts such as “social-emotional or non-cognitive learning, or character education, or habits of success”  are NOT synonymous with restorative justice, much less equality, any more than Gardner’s learning styles are! Neither is “positive behavior support.”

Those are buzz words that have been developed and embraced by the same organizations that have contributed to decades of inequality through failed policies….now climbing aboard the RJ train. See the Face Book site sharing posts from Angela Duckworth and other practices that are justice “light”

While narratives of grit or habits of mind attempts to (re)colonize attitude and behaviors of students of color, RJ “represents a validation of values and practices that were characteristic of many indigenous groups,” whose traditions were “often discounted and repressed by western colonial powers.” source

Another article argues, “It is based on the principle that crime affects people, their families and communities (Strang, 2001).” And that RJ has, “an intention to reduce the violence inherent to the State’s apparatus

What reformers are able to do is to distract schools and communities from engaging in the more radical systemic work that RJ was intended to do…and places (again…) our best initiatives, the ones we believe in, into the hands of the reformers and privatizers who are experts at selling us back our ideas as watered down, declawed, defanged versions of their original selves. We’ve taken the equivalent of a revolutionary treatise and reduced it to a Hallmark card.

Notice the deft pivot at where the focus is on: “Making sure that students aren’t punished or jailed for actions stemming directly from their own years as victims of crimes and poor upbringing,” but nothing is said about transforming a violent and oppressive system of racialized policing and punishment. The focus is no longer on transforming the system, it is on children as victims of “poor upbringing” (not sure what that means…) or developing better “character.”

Don’t get me wrong. I believe that schools must have quality infrastructure in place to support children who are surviving trauma, children with behavioral challenges, and create nurturing non-punitive classroom communities. There is a place for classroom conversations, circles, and support for individual learning.

I just do not wish to confuse that with restorative justice, or to have the latter subsumed by the former, a process by which the system would (yet again) cease to be the focus of our collective attention, and we instead turn attention to children as isolated agents of “good choice” or “character.”

It is also being blended with social expectations that seem to have little to do with violence or justice:

One school site says “We aren’t interested in ‘punishment.’ Rather, we want to inculcate the values of empathy, orderliness, and manners in students – lifelong lessons which they will use in future arenas.” This almost sounds like the “good behavior” narratives promulgated by charter schools aiming to “civilize” urban black youth.

Orderliness and manners? There are even some resources for versions of “restorative” practices that focus on Habits of Mind traits like “persistence,” “striving for accuracy,” and “impulsivity control.”

Compare an original/earlier definition of RJ:

“(I)n these communities relationships and victim-offender interaction were personal, and usually led to strong bonds and sometimes even to reduction in deviant behaviour. Most importantly, deviance was seen as a community problem, and a community failure not simply as a matter for the offender to pay or restore.” source

With this more recent (watered down) version:

“Restorative justice is about understanding the role trauma plays on the brain and developing teaching methods that actually are based on the needs of the students.” Note the word “personalized” here which reminds me of “personalized learning” now code for “students staring at a screen” learning. Both seem to be trending.

The difference may seem slight…but it’s significant. The emphasis on “the brain” here gestures toward developing a role for the use of psychometrics for predictive analytics (can we predict who might become deviant or commit anti social behavior?) rather than systemic restoration or healing.

There are already links between the Five Factors personality test (used in predictive analytics and data miners in psy ops) and the Grit narrative. As I have posted in earlier blogs:

There is a growing emphasis on the “affective” learning of students.  Some examples include: “ETS’ SuccessNavigator assessment and ACT’s Engage College Domains and Scales Overview … the broader domains in these models are tied to those areas of the big five personality theory.” Also see Empirical identification of the major facets of Conscientiousness

Paul Thomas notes, “grit narratives are also often masks for race and class biases in the same way IQ was embraced throughout much of the twentieth century.”

Bridging grit and personality to restorative justice is merely one more link the in the passage of selling out progressive narratives (justice, peace or restoration for examples) into data profiteering and social corporate engineering. Education reform history is steeped in using such tactics.

See titles like “Justice and personality: Using integrative theories to derive moderators of justice effects” and “The Importance of Perceptions in Restorative Justice Conferences: The Influence of Offender Personality Traits on Procedural Justice and Shaming” to see where RJ language is being blended with new forms of personality testing.

Even Teach for America is on the Restorative Justice ticket.      #Hashtag irony.

Who else might you ask could be leading this hijacking effort? Maybe Chiefs for Change?  who are passing out information using a finely tuned blurring instrument that seamlessly takes you from thinking your focusing on justice, when the shell game in fact is pulling a bait and switch. Note the article entitled: “The connection between grit, resilience, and equity”

What is their agenda? Read on:

“Wilson points out that leading businesses have found ways to diminish hierarchy, to create flatter organizations, and to reinvent work spaces and climates with the needs of real human beings in mind — and have profited as a result. Schools should learn lessons, he says. And they should invest in helping everyone come to a deeper understanding of behaviors that can quickly be classified as insubordination or disrespect, in ways that decrease conflict and punishment.”

With a nudge from researcher and blogger Alison Mcdowell I also did a search on relationships between RJ and social impact bonds. It appears to have been emerging in the U.K.  back in 2015. The article says: “Work with offenders is already delivered on a payment by results basis by the new community rehabilitation companies(CRCs). If an offender who had gone through restorative justice delivered by an independent provider as well as other CRC-funded activities does not go on to commit a further crime, who gets the credit?”

I guess justice is for sale.

-Morna McDermott

 

Pay for Success & the McCleary Crisis: Did the Every Student Succeeds Act (ESSA) Help Position Social Impact Bonds as a Last Resort Funding Option for Our Public Schools?

two minutes of hate

The horrible thing about the Two Minutes Hate was not that one was obliged to act a part, but that it was impossible to avoid joining in. Within thirty seconds any pretence was always unnecessary. A hideous ecstasy of fear and vindictiveness, a desire to kill, to torture, to smash faces in with a sledge hammer, seemed to flow through the whole group of people like an electric current, turning one even against one’s will into a grimacing, screaming lunatic. And yet the rage that one felt was an abstract, undirected emotion which could be switched from one object to another like the flame of a blowlamp. -George Orwell, Nineteen Eighty-four

No one makes a better villain than Secretary of Education, Betsy DeVos. She’s the enemy of public education that everyone – on the left and right – can agree to hate.

DeVos is our very own Emmanuel Goldstein, the bipartisan uniter and designated enemy, who continues to bring all of us together in our updated – dare I say innovative – version of Orwellian inspired two minutes of hate.

Sadly, the fix was in long before DeVos was summoned by Donald Trump and convinced to leave behind her public education destroying work in Michigan and take her callous, innovative disruption to scale as the nation’s Secretary of Education.

The ground work for the destruction of public education as we know it was already laid by the ESSA, the victory of bipartisanship and ticking time bomb of education innovation.

Don’t Look Behind the Velvet Curtain

One of the horrible ironies of the ESSA is that so many lobbyist had a hand in writing the bill, these special interest groups just can’t help bragging about their work.

Take social impact bonds, which got a doublespeak makeover and were renamed Pay for Success in the ESSA.

Check this out from America Forward.

All indications are in just a few short days, with the likely passage and enactment of the Every Student Succeeds Act (ESSA), we will have our first update to the Elementary and Secondary Education Act (ESEA) since No Child Left Behind was signed into law 14 years ago. The America Forward Coalition worked closely with Congress to shape key elements of the bill, including the development of language and advocacy around the addition of Pay for Success language and authority.

Here’s a closer look at the America Forward driven Pay for Success provisions included in ESSA:

  • Title I, Part D: Prevention and Intervention Programs for Children and Youth who are Neglected, Delinquent, or At-Risk:In this part ESSA, funding is provided to improve the education services for children and youth who have challenges meeting State academic standards, helping children and youth make a successful transition between correctional facilities/institutions back into locally operated education programs, and working to prevent at-risk children and youth from dropping out of school or supporting those who have dropped out with the structure needed to get back on track. In addition to the Pay for Success authority granted in this Title, there is also language that services and interventions delivered, to the extent possible, be evidence-based.
  • Title IV, Part A: Student Support and Academic Enrichment Grants: The purpose of this piece of the ESSA is to improve students’ academic achievement by increasing the capacity of states, local education agencies, schools, and local communities to provide a well-rounded education. The authority to use Pay for Success is associated specifically with Section 4108: Activities to Support Safe and Healthy Students, which emphasizes school coordination with other schools and community-based services/programs (i.e. substance use, mental health, violence, etc.) as well as parental involvement and partnership with higher education, business, nonprofit organizations, and other private entities. Like Title I, there is also an emphasis on the use of evidence-based practices strategies and programs when available in this Title.
  • General Provisions: Additionally, Pay for Success is also defined in the General Provisions section of ESSA. This is the first time that Pay for Success is defined in Federal legislation and the comprehensive nature of the definition is important for implementation of the Pay for Success authorities in ESSA but is also helpful for use the overall use of Pay for Success in federal programs.

What does this mean for the future of Pay for Success?

With this allowable use of Pay for Success authority, states and school districts will now have the option of structuring funding decisions using outcomes as the driver of payment allocation. They will be able to use the independently and rigorously evaluated impact of programs and activities as the determinate of the allocation of Federal education dollars to best serve their students.

Something like this would never be implemented in Washington State, right?

Except it has.

Right now, The Washington State Department of Early Learning and Thrive Washington are busy working together to use Pay for Success (PFS) as a funding method for statewide home visits. Here’s the Overview-FINAL-10.5.15.

Pay for Success Home Visits McCleary and Pay for Success

This is where Pay for Success takes an ugly turn.

In a blog post titled Social Impact Bond Divides WA Legislators, Republican Representative Hans Zeiger let this drop.

Social Impact Bonds and McCleary

Go read the whole blog post, it’s an eye opener.

Conclusion

After the democrats pitiful performance pretending to fund McCleary in Olympia this legislative session, everyone who cares about public education should have their guards way up.

We learned the hard way how ready and willing democrats are to cave and support the most  hairbrained education funding schemes put forth by republicans – no matter how punitive this policy may be to their constituents back home.

Expect Pay for Success or social impact bonds to be the 11th hour solutions, put forth in a bipartisan manner, as the way to fund McCleary.

Don’t buy it.

-Carolyn Leith