Schooling in the Ownership Society: J.B. Pritzker and Goldman Sachs doing the special ed hustle

Schooling in the Ownership Society: J.B. Pritzker and Goldman Sachs doing the special ed hustle:

 J.B. Pritzker and Goldman Sachs doing the special ed hustle

J.B. Pritzker

Goldman Sachs and J.B. Pritzker may call it "philanthropy" but it's a profitable brand that includes their benefiting financially from cuts in special ed and from every child who's dropped from or pushed out of a SpEd program.

It's all because of the latest corporate scheme in which private firms foot the initial bill for public services and then are repaid with interest if those services reduce the number of kids in special ed. They call it "social impact" investing.

In Utah for example, GS and J.B. have committed $7 million to area pay-for-success programs through the United Way, which will fund preschool services for five cohorts of children. Even at a 5% rate of return, they still receive 95% of any special-education savings to the state until the investments are repaid with interest. After that, the firms will receive 40% of ongoing cost savings until the participating students complete sixth grade.

If only companies like Goldman Sachs didn'toperate virtually fax-free, there would likely be adequate public funding for special ed and all other education funding. Instead schools are forced to operate on the largess of private investment firms who not only operate at a profit, but also influence important public ed policy issues -- like which child should be in SpEd and which one needn't be?

According to Crain's,

United Way of Salt Lake is betting that the savings from keeping kids Schooling in the Ownership Society: J.B. Pritzker and Goldman Sachs doing the special ed hustle: