State Pension Fund Invests in Controversial for-Profit School Company(Fl.)

[Judi Lynn]

Friday, September 26

State Pension Fund Invests in Controversial for-Profit School Company
The Associated Press
Published: Sep 25, 2003




TALLAHASSEE, Fla. (AP) - A money manager that invests part of the state's $92 billion pension fund has bought a for-profit school management company, a move being questioned by critics who say Edison Schools Inc. isn't a good investment.
One of the main critics is the union for Florida's teachers - who make up nearly half the members of the state pension fund. Union members were "astonished" to learn that $174 million of their retirement money is being used to finance the buyout of a private company that manages public schools - potentially costing some union teachers their jobs.

Mark Pudlow, a spokesman for the Florida Education Association, also questioned whether buying out Edison was a good deal for the pension fund.

"Edison's history is one of quarterly loss after quarterly loss," Pudlow said. "Since 2001, their share price has dropped from $36 to less than $2 a share." (snip)

(snip) The Board of Administration is overseen by three trustees, including Gov. Jeb Bush, who has been a strong advocate of alternatives to traditional public schools.

Bush said Thursday that he had nothing to do with the investment and never gets involved in individual investment decisions by the pension fund managers.
(snip/...)

http://ap.tbo.com/ap/florida/MGA3ZMGE1LD.html

[Noordam]

1. Under Jebbie they brought Enron Too

the State pension fund is a Repug free money bank.

[AP]

11. when it was rapidly collapsing.

that's the point.

[NashVegas]

2. The Teachers Should Form a Class Action Suit

There's something incredibly fucked about being forced to prop up the stock of someone who wants to put your livelihood at risk.

[AP]

12. This is why Edwards wants to give shareholders greater control over corp's

which is a Green position too.

[ClintonTyree]

3. That's our Jebbie!!!!!!!

ALWAYS looking out for his constituents. What a fine Governor we have. I think he'd like to do away with schools altogether. The more ignorant people are, the more inclined they are to vote Republican.

[salin]

4. invest in a company

that doesn't earn money, that was not too long ago nearly delisted by NASDQ (for having share price of 1.00 or less for a month), and use state employee pension fund to do so.

There is NO investment reason to buy Edison.

[soup]

5. Edison Schools, Inc.

Edison's Failing Grade

Investors and school districts are ditching the country's leading public education privatizer

By Tali Woodward
Special to CorpWatch
June 20, 2002 <------ !!!!! note date

A year ago, Edison Schools Inc. was flying high. With 133 schools under its control, Edison had quickly become the nation's largest for-profit manager of public schools. And the public education funding that the company was tapping into seemed to provide a potentially limitless revenue stream. Founder Chris Whittle had predicted that, by 2020, Edison would run one in ten public schools in the United States. The company was a hit with Wall Street: shares were trading at $38, up from $18 when Edison went public just over two years earlier.

Now shares of Edison are changing hands for about a dollar, the minimum price required to stay listed on NASDAQ. Edison has racked up $250 million in losses since it began. The company announced June 3 that it had secured the $40 million investment it needs to open school in the fall. But the futures of 74,000 kids in Edison schools from Maryland to California remain tied to a company that is financially unstable. Edison's economic troubles raise renewed questions about the wisdom of turning public schools over to for-profit corporations -- and could pose a major setback for the school privatization movement.

Edison is still reeling from a three-month inquiry into the company's finances by the Securities and Exchange Commission. Investigators determined that the company consistently misreported revenues, providing an unduly rosy picture to investors. For example, Edison reported $375.8 million in revenue in fiscal 2001. According to the SEC's May 14 order, $154 million of that never passed through the company: it was spent by school districts on salaries for teachers and other staff at schools run by Edison. The SEC also found that Edison does not have an adequate system of internal accounting controls in place.>snip<
full article:
http://www.corpwatch.org/issues/PID.jsp?articleid=2688


Parents Advocating School Accountability (PASA)

We are public-school parents and advocates who see firsthand that our schools can work. We know that the attacks are unjust and misdirected. In a complex and changing society, our schools face far greater challenges than ever. They need support, not savagery. Exploitation of children by business, civic leaders and journalists should outrage the public.

Our mission is to build support for schoolchildren, classrooms, teachers and communities.

Click here for Edison Schools coverage and media archive.

extensive list of links at the above site, including:
* Lists of cancelled contracts
* Shareholder Lawsuits
* Media Coverage of Edison Schools


The only comment I can think of right now is WTF?!

[izzie]

6. Do I recall that Geo turned over Texas College plan to his friends/

Course the people made little but His pals got very rich.

[mumon]

7. Repugnant Lie method #25111233: the investment scam

Edison schools is a "Stalin cow" for Repugnants.

[Don_G]

8. Who Are The Pension Fund Managers?

It sounds like the Teamster deals with the Mafia all over again.

[Rose Siding]

16. Jeb's in charge of it

FL is one of the only states where the gov actually DOES have the last word on the pension fund.

[Mika]

9. One of Jeb's "devious plans" for the Fla. class size amendment

Don't ya just feel the repuglican love?



Politically powerful, not kids, may reap benefits of charters
http://www.miami.com/mld/miamiherald/3031313.htm

The movement is thriving in Miami-Dade, with the School Board agreeing to more than double the county's roster of charter schools from 18 to more than 40. The nation's two biggest private management firms are poised to play a prime role and collect millions in fees.

The biggest, Edison Schools Inc., has seen its nationwide revenue increase from $11.8 million in 1996 to $375.8 million in 2001. Since 1999, the company has lent its CEO $8 million -- a snapshot of the huge dollars at play.

Advocates say charters are good for overstressed districts such as Miami-Dade because they ease overcrowding, limit class size and infuse fresh ideas to stagnant schools. They offer parents a choice to bypass traditional public schools -- without paying private school tuition.

[AP]

10. This is why the Republican want to run California.

It's the pensions, and their roll in the equity markets.

[DrDan]

13. He's lying, he's lying, he's lying

The investment decisions come from the SBA - the State Board of Administration.

Guess who chairs the SBA - Liar Jeb

http://www.afscmefl.org/enron.html

Now, what would be the impact of extensive vouchers on this cash cow?????

[KayLaw]

14. Investing in Irony

This was the St. Pete Times lead editorial today.

http://www.sptimes.com/2003/09/26/Opinion/Investing_in_irony.shtml

" Pardon the sarcasm, but was there no Enron stock left to buy? "

[Judi Lynn]

15. Great Florida opinion from the S.P. Times

(snip) That may taste delicious to Gov. Jeb Bush, a proponent of privatized education who has endured relentless attacks from teacher unions, but it has caused enough heartburn that public employee retirement funds in Los Angeles, New York City and Ohio have banned the practice. In Florida, House Democratic Leader Doug Wiles already has fired off a letter to Bush, noting that Edison is planning to nearly double Whittle's salary in part as reward for getting the state's money.

"This transaction will risk the hard-earned savings of Florida's public employees on a private company that has lost millions of dollars, is deeply in debt, has been subject to SEC (Securities and Exchange Commission) scrutiny, and is being sued by its shareholders for misleading accounting and disclosure practices," Wiles wrote Thursday. ". . . Our public employees have dedicated their lives to public service and I'm certain that the majority would not approve of a significant investment in a business that seeks to eliminate their own jobs." (snip)

Thanks!

[cmd]

17. Every teacher in every school in Florida should walk out

UNBELIEVABLE!!!

[jiacinto]

18. I've not heard good things about Edison

When they first came out they were considered "innovative". But from what I've heard, in terms of actual results, they have been at best mixed and worst down right awful.