Massachusetts Teachers Association Calls for SEC Investigation of Possible “Pay to Play” Scheme
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Teachers Call for SEC Investigation into Possible Pay-to-Play Scheme
Teachers Call for SEC Investigation into Possible Pay-to-Play Scheme
BOSTON – Deeply troubled by campaign contributions from investment firms overseeing millions of dollars in teacher pension funds, the presidents of the two Massachusetts educators’ unions today are calling for an investigation by the federal Securities and Exchange Commission and state authorities into a possible pay-to-play scheme involving large donors supporting Question 2, the charter school expansion question that will be on the November ballot in Massachusetts.
A report published today by the International Business Times reveals that management of eight financial firms has contributed more than $778,000 to groups backing Question 2. Together, these financial firms manage over $1.275 billion in state money.
“This is about the integrity of our pension investments and the integrity of our elections,” said Massachusetts Teachers Association President Barbara Madeloni. “We need an investigation to find out whether these firms are wielding inappropriate influence in state government.”
“These disclosures are an indication of the degree to which forces seeking to undermine our public schools are spending huge sums to promote Question 2,” Madeloni added.
“These disclosures are an indication of the degree to which forces seeking to undermine our public schools are spending huge sums to promote Question 2,” Madeloni added.
The IBT report details the ways in which the investment industry circumvents federal rules designed to restrict financial executives from giving campaign cash to governors with the power to influence state pension business. Governor Charlie Baker is a leading proponent of Question 2. Earlier this week, he held a series of private meetings in New York with financial industry executives whose names remain undisclosed.
Although federal law does not cover money donated to the governor’s policy initiatives, executives whose firms are prohibited from donating directly to Baker are still able to give to the dark money groups backing Question 2. But questions need to be answered about the propriety of these donations.
Baker appoints three members of the state pension board.
“Retirees need to know that investment decisions are being made based on their financial security, not to curry favor with Governor Baker and his pension board appointees,” said Tom Gosnell, president of the American Federation of Teachers Massachusetts.
On Monday, Governor Baker addressed the members of the conservative, pro-charter Manhattan Institute about his work on Question 2. Paul Singer, chair of the Manhattan Institute’s Board of Trustees, is a major financial backer of charter school expansion around the nation. Singer also owns Elliott Capital Advisors, one of the hedge fund companies in which the state pension board invests its money.Massachusetts Teachers Association Calls for SEC Investigation of Possible “Pay to Play” Scheme | Diane Ravitch's blog:
