Billionaires and the Origins of California’s Charter School Movement

by on June 17, 2020 · 0 comments

in California, Education

Organized to Disrupt

By Thomas Ultican / Tultican / June 10, 2020

The New Schools Venture Fund (NSVF) is the Swiss army knife of public school privatization. It promotes education technology development, bankrolls charter school creation, develops charter management organizations and sponsors school leadership training groups.

Since its founding in 1998, a small group of people with extraordinary wealth have been munificent in their support. NSVF is a significant asset in the billionaire funded drive to end democratically run public schools and replace them with privatized corporate structures.

1990’s Silicon Valley was a Happening Place

Mark Andreessen had just co-written the world’s first web-browser, Mosaic, before he came to town from the University of Illinois to co-found Netscape. John Doerr left Intel in 1980 to join the venture capital firm Kleiner Perkins where his reputation for picking winners became legendary. His wins include Amazon, AOL, Compaq, Electronic Arts, Google, Netscape and Twitter. Internet search engines were in their infancy when in 1999 Doerr convinced his partners to put $12.5 million into Google. Five years later that investment turned into billions.

Like elsewhere in America, every little strip mall in San Jose, California had a Blockbuster video rental store. In 1997, Reed Hastings and Netflix co-founder Mark Reynolds came up with a disruptive idea that put Blockbuster out of business. For a monthly fee, they offered DVD’s by mail with no late charges. Blockbuster did not adapt fast enough and went bankrupt.

In the Valley, everyone was aware that their business could be just one new technology innovation away from being the next Blockbuster.

“DoWopDon” Shalvey was the superintendent of schools in San Carlos, California a bedroom community about a third of the way up the peninsula between San Jose and San Francisco. When California passed its 1992 charter school legislation, Shalvey’s application for a charter turned into California’s first charter school. It officially opened in August 1994.

Apparently, Don Shalvey was an amateur DJ and very into music. His twitter handle is @dooWopDon.

Shalvey joined with Reed Hastings in writing a statewide initiative for the 1998 ballot that lifted the cap on charter schools and eased restrictions on starting one. At that time, Hastings was made president of Technology Network, a bipartisan lobbying group formed by Silicon Valley CEOs. With their support, the initiative quickly amassed more than a million signatures. Opposition from the teachers union ended as they were also fighting against other education proposals coming from Governor Pete Wilson’s office.

A deal was struck making the initiative unnecessary. Legislative leaders passed a bill containing the initiative’s key ingredients and union leader withheld their objections. The new bill green-lighted an unlimited number of charter schools and just as importantly the bill authorized a single board to oversee multiple charter schools. It was the birth of charter management organizations and a massive acceleration in new charter school development.

When Pete Wilson signed the new bill into law in May 1998, Shalvey and Hastings had $403,000 left in their initiative campaign fund. They decided to shift the money into a non-profit and founded what became the Aspire charter school network.

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