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Educational Industrial Complex (EIC)? What is the Educational Industrial Complex (EIC)? The term Educational Industrial Complex (EIC) was first used by Anthony Picci- ano in 1994. According to A. Picciano and Joel Spring (2013), the EIC revolves Charter Schools: the Safe and Stable around three major components-ideology, profit, and technology. The EIC is made up of multiple networks and alliances of agencies, organizations, foun- Investment Choice dations, media companies, educational technology providers, for profit educa- tional providers, venture philanthropies, and think tanks. These networks and In 2012 on CNBC David Brain, the head of a large real-estate alliances interact with each other to push for market-based initiatives. investment company called Entertainment Properties Trust, talks about how profitable charter school investment is: The three biggest players in “education reform” in K-12 schools mostly directed “Well I think it’s a very stable business, very recession-resistant. to low-income students and families are the Bill and Melinda Gates Founda- It’s a very high-demand product” tion (Microsoft), the Eli and Edythe Board Foundation (finance, real estate, When he was asked about the most profitable sector in the real and insurance) and the Walton Family Foundation (Walmart). estate market he said: “Well, probably the charter school business. We said it’s our high- Education reform means promoting market based initiatives that undermine est growth and most appealing sector right now of the portfolio. public education. These market-based initiatives promote competition, privati- It’s the most high in demand, it’s the most recession-resistant. zation, high-stakes testing and anti-teachers unions. Public charter schools and And a great opportunity set with 500 schools starting every year. for-profit schools are advocated. It’s a two and a half billion dollar opportunity set in rough measure annually.” 1 Why are Hedge Fund Managers, Bankers, and Real Estate Backing Charter Schools? The Communal Relief Tax Relief Act, a little-known law passed in 2000 under Invest in a Charter School and Bill Clinton’s presidency. This act provides banks and equity funds who invest in Buy your Green Card charter schools and other projects in “underserved” communities with a gener- ous tax credit of up to 39% that would help to offset their expenditure in such projects. This law provided tax incentives for businesses, banks, equity funds and the real estate industry, which allowed them to double the money they have invested in just seven years. A new federal program called EB-5 allows wealthy for- eigners to purchase immigration visa for themselves and Today, the race to invest in charter schools as investment continues. their families if they invest at least half a million dollars 2 Hedge Fund managers met at the Harvard Club in NYC on March 10, 2015 ($500,000) in our charter schools. for an all-day symposium called "Bonds and Blackboards: Investing in Charter Schools", sponsored by Gates Foundation and the Walton Family Foundation. US Educational Industrial Complex - Snapshot Association for American Girl Doll American Publishers Blackboard Accessories Course Smart Technology Wharton School Publishing Will Ethridge Mattel Inc. Harcourt Financial Matthew Piznsky Capella Education Times Pearson Prentice-Hall Company Longman Bill & Melinda Gates Foundation Farallon Capital ed TPA Scott Foresman Management Penguin LIC Michael Dolan Random House Parchment N.Y. based Millers Analogy private equity Connecting Test and venture Academy capital firm. America’s Choice PEARSON PLC. Penguin David Golub Salmon River Capital Jeffrey W. Taylor Parent Company Group School GED test Allyn & improvement Beacon models. World’s largest U.S. global mass education media company Peter Solomon SAT test company that Adobe Press with interests in Company provides materials, cinema and technologies and cable television. Undersecretary assesments for Addison-Welsley of Education, teachers and students. Noonday Global Obama Admin. Viacom Operates in 70 countries. Management May 2014 - present. Puffin 60% of sales in North America. Theodore R. Mitchell Non-profit President Sal Khan digital Silicon School Teacher College Susan Fuhrman educational Columbia University organization. Fund Phillipe Dumais Khan Academy S. Joshua Lewis John J. Fisher Naomi O. Seligman Pearson Foundation Video series that empowers Carnegie Martin Lippert high school seniors Corporation of NY (Head of Global Technology & or first semester Opereations, MetLife, Inc.) college freshman. College Ready Tripp Jones Joshua Bekenstein National non-profit that develops transformational school leaders and designs Teaching Vicki Phillipe Barbara Rosser effective leadership Channel policies and practices for Hyde school systems across the country. Boeing Ford Foundation CCSSO New Leaders Gideon Stein The Council of Chief State Elli & Edythe School Officers Broad Foundation David Levin Richard Barth (finance, real estate Charles Stewart Mike Johnston CEO and insurance) David Goleman Mott Foundation New Leaders David Shine (design guidelines) for New Schools Common Core Mike Bezos State Standars Jack Rock It is an national initiative designed Zubrow Lockheed Martin by a working group assembled by New Classrooms Doug Berchard National Governors Association and KIPP Foundation Joel Rose NGA the Council of Chief State School Officers. National Governors Linda Roberts Non-profit org. Roger Family composed of Association Foundation Jaean Deravines educators, operators, Chrispopher and technologist Christopher Rose Exxon Mobile Chaunk who collaborate with schools to enable personalized learning for students. Jon Schnur David Levin Company co-founder Board of Directors Company own by Pearson Mike Fember Test American Achivement A government organi_ Educational Institution (Executive chairman) zation that supervises the public school system Biggest players Walton Family in New York City, one of Foundation the largest in the US. Carrie W. Penner Give funding New York City Department of Education Information on Each Pearson Connection edTPA All pre-service teachers in all subjects need to take this test in order to get certified to teach in schools. Addison-Wesley Publish textbooks and computer literature that includes eBooks and video for the IT Financial Times workers (developers, programmers, managers, system administrators). United Kingdom based daily newspaper with special emphasis on economics and busi- ness internationally. Adobe Press Publishes books for visual communicators and official site for training material for Adobe GED Testing Service software. Joint venture between the American Council of Education (ACE) and Pearson that provides programs to help learners take the GED test successfully. The GED test is one Allyn and Bacon way of getting a high school diploma. Leading publisher for higher education in the areas of education, humanities, and social sciences. Houghton Mifflin Harcourt Major publisher of textbooks, reference books, fiction and nonfiction, educational soft- America’s Choice ware, and videos. A company that features standards-based instructional materials, coaching, and profes- sional development for teachers and catch-up programs for struggling students in order Khan Academy to improve schools. Non-profit digital educational organization that provides free world class education for students all over the world. Benjamin Cummings Publisher in all fields of science for higher education. KIPP (Knowledge is Power Program) A national network of public charter schools whose mission is to help students from Capella Education Company educationally underserved communities develop the knowledge, skills, character and A leader in online education and the parent company of Capella University, an accredited habits needed to succeed in college and in the world. online university. KIPP Foundation CCSSO = The Council of Chief State School Officers To expand the KIPP network of public charter schools by recruiting and training school A national nonpartisan nonprofit organization of public officials who head departments leaders to open and operate KIPP Schools. of elementary and secondary education in the all 50 states in the United States, the De- partment of Defense Education Activity, and the 5 U.S. extra-state jurisdictions. CCSSO Mattel Inc. provides leadership advocacy and technical assistance on major educational initiatives. An American toy manufacturing company that makes the American Girl Doll and her accessories. One accessory is the American Girl doll backpack with miniature Pearson College Ready textbook on math that is common core aligned. Another accessory is the science lab A six-part video series that empowers high school seniors or first semester college fresh- set with a Pearson science textbook that is common core aligned. man with a clear direction for starting college right and completing college. Millers Analogy Test Common Core State Standards A standardized test used primarily for graduate school admissions in the USA. A national educational initiative developed by a working group assembled by National Governors Association and the Council of Chief State School Officers in 2008-2009 for NGA= National Governors Association K-12 students in all subject areas. Bi-partisan organization of all governors in the United States who support the notion of federalism and speak collectively on national policy. Through this organization gov- Connections Academy ernors address best practices of governance and develop solutions
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