TEACHER PENSION FUND PROFITS HELP FUND CHARTER SCHOOL FIGHT IN MASSACHUSETTS
This article originally appeared on the International Business Times.
When Massachusetts public school teachers pay into their pension fund each month, they may not realize where the money goes. Wall Street titans are using some of the profits from managing that money to finance an education ballot initiative that many teachers say will harm traditional public schools.
An International Business Times/MapLight investigation has found that executives at eight financial firms with contracts to manage Massachusetts state pension assets have bypassed anti-corruption rules and funneled at least $778,000 to groups backing Question 2, which would expand the number of charter schools in the state. Millions more dollars have flowed from the executives to nonprofit groups supporting the charter school movement in the lead-up to the November vote. Republican Gov. Charlie Baker, himself a former financial executive, is leading the fight to increase the number of publicly funded, privately run charter schools in Massachusetts—and he appoints trustees to the board that directs state pension investments.
“This is a morally bankrupt situation,” said Randi Weingarten, president of the American Federation of Teachers, which opposes the ballot measure. “These managers are using money they’ve earned from teacher pensions to try to destroy the same public education system that teachers have worked in mightily to help children.”
“It makes me so angry,” said Laura Henderson, an 11-year veteran of Massachusetts public schools, who now teaches English and special education in Newton. She spends many of her weekends going door to door, trying to persuade voters to oppose Question 2. For Henderson, more charters means fewer unionized teaching jobs and the erosion of public education standards. In her view, the money behind Question 2 is motivated by a desire to ultimately privatize public education.
Baker’s office did not respond to IBT/MapLight questions about campaign donations from executives at firms that manage state pension money.
The cash flowing to the Massachusetts school initiative spotlights more than just a fight over education policy: It exemplifies one of the ways in which the securities and investment industry can get around a federal rule that was designed to restrict financial executives from giving campaign cash to governors with the power to influence state pension business.
In the case of Massachusetts, since the federal rule does not cover money donated to governors’ policy initiatives, executives banned from donating directly to Baker are able to give to a Teacher Pension Fund Profits Help Fund Charter School Fight in Massachusetts:
