FROM SEA TO SHINING SEA: THE BILLIONAIRE OLIGARCHY EDUCATION REFORM CESSPOOL
Los Angeles, March 1, 2026 — In a plot twist that shocked absolutely no one who's been paying attention, the Los Angeles Unified School District—which we're officially renaming the Los Angeles Unified (School)Scandal District—has placed its celebrity superintendent Alberto Carvalho on paid administrative leave following FBI raids on his home, office, and a mysterious Florida property.
For those keeping score at home (and you'll need a spreadsheet), this marks approximately the 47th time since 2000 that LAUSD leadership has face-planted into a federal investigation, ethical quagmire, or spectacular display of "What were they thinking?"
The Latest Episode: "Ed" the AI Chatbot Goes to Prison
The current scandal centers on a failed $6 million contract with a Boston startup called AllHere, which promised to revolutionize education with an AI chatbot named "Ed." (Because apparently, naming your artificial intelligence after the guy who delivers your pizza makes it more trustworthy.)
The timeline of disaster:
- Early 2024: Carvalho enthusiastically promotes "Ed" as a personal assistant for students
- Mid-2024: AllHere collapses faster than a house of cards in a wind tunnel
- Late 2024: AllHere's founder, Joanna Smith-Griffin, gets indicted for defrauding investors
- February 2026: FBI agents show up at Carvalho's door with search warrants and uncomfortable questions
The star of this particular dumpster fire? Debra Kerr, a Florida-based ed-tech consultant who just happened to be Carvalho's longtime associate from his Miami days and who was allegedly owed a cool $630,000 commission for "securing" the LAUSD deal. That's roughly 10% of the contract value—a finder's fee so generous it could fund an actual school.
The Florida Connection: Because Of Course There Is One
But wait, there's more! (There's always more.) The FBI is also reportedly investigating potential kickbacks from Carvalho's 14-year stint as superintendent of Miami-Dade County Public Schools. Because if you're going to have a scandal, why limit yourself to one coast?
Florida, that magical state currently racing to privatize education so thoroughly that scandals become less "flashy news" and more "just another Tuesday," provides the perfect training ground for administrators who view public funds as a networking opportunity.
The Greatest Hits: A LAUSD Scandal Playlist
For context, let's review the district's recent track record of administrative excellence:
The iPad Fiasco (John Deasy, 2013-2014)
Superintendent John Deasy launched a $1.3 billion plan to give every student an iPad, complete with incomplete Pearson software. Emails revealed cozy pre-bidding relationships with Apple and Pearson executives. Students immediately hacked the security filters to browse the web. The FBI seized boxes of records. Deasy resigned. The program was scrapped.
Chef's kiss.
Deasy then went on to replicate his magic in Stockton USD, because apparently failing upward is the only direction in education reform.
The Belmont Learning Center Disaster (Ruben Zacarias, 1999)
The district spent $175 million building a high school on a former oil field that was—surprise!—leaking explosive methane and toxic hydrogen sulfide. The site sat as a "haunted skeleton" for years before finally being completed at a total cost of nearly $400 million.
Nothing says "we care about children" like building their school on top of a toxic waste site.
The Prop 28 Shell Game (Austin Beutner & Alberto Carvalho, 2024-2025)
Former Superintendent Austin Beutner is currently suing his own former district, alleging that LAUSD misused $76.7 million in voter-approved arts funding to pay for existing staff rather than expanding programs as required by law.
It's like a magic trick, except instead of pulling a rabbit out of a hat, they made arts education disappear while the audience was still applauding.
The Ramón C. Cortines "Elder Statesman" Years
Cortines served three separate stints as LAUSD's crisis manager, earning the reputation as the district's "steady hand." His legacy includes:
- Serving on the Board of Directors for Scholastic Inc. while simultaneously overseeing a district that was a major Scholastic customer (earning approximately $500,000 over three years in cash and stock options)
- A years-long sexual harassment lawsuit filed by executive Scot Graham, who alleged unwanted advances at Cortines' private ranch
- Overseeing "Teacher Jail," where hundreds of educators were pulled from classrooms and held in administrative limbo for months or years without being told the charges against them
The "steady hand" had quite a few fingers in quite a few pies.
The Billionaire Puppet Masters: A Rogues' Gallery
Now, you might be wondering: "How does this keep happening?"
The answer, dear reader, is money. Specifically, billionaire money funneled through a sophisticated network of PACs and "independent expenditure" committees designed to elect school board members who will do their bidding.
The Usual Suspects:
Reed Hastings (Netflix Co-founder)
- Over $10 million contributed across various election cycles
- Primary goal: Scaling charter schools like they're the next season of Stranger Things
The Late Eli Broad
- Founded the "Broad Academy" to train reform superintendents (including John Deasy)
- In 2015, backed a secret $490 million plan to move 50% of LAUSD students into charter schools
- His legacy lives on like a particularly persistent virus
The Walton Family (Walmart Heirs)
- Provide "startup grants" for new charter schools
- Creating a dual education system where public and charter schools compete for per-pupil funding like it's The Hunger Games
Michael Bloomberg (Former NYC Mayor)
- Known for writing $1 million+ checks to support data-driven reform
- Because nothing says "I understand education" like being a billionaire who's never taught a day in his life
Bill Bloomfield (Real Estate Mogul)
- Spent over $5.5 million in 2020 alone
- Apparently has very strong opinions about other people's children's education
Doris Fisher (Gap Co-founder)
- Long-time backer of the California Charter Schools Association
- Bringing the same innovative thinking that gave us khakis to public education
The Strategy: How to Buy a School District in Three Easy Steps
Identify the target: Large urban school districts with massive budgets (LAUSD oversees $14.9 billion—larger than the city budget itself)
Fund the board: Pour millions into "independent expenditure" campaigns to elect pro-charter, pro-reform candidates who will hire superintendents aligned with your interests
Install your superintendent: Once you have a 4-out-of-7 majority, hire a "disruptor" from the business world who views public education as a market inefficiency waiting to be corrected
The 2017 "Charter Takeover" was the most expensive school board election in U.S. history at the time, with over $15 million spent. The result? A billionaire-backed majority that appointed Austin Beutner, a former investment banker with zero education experience, as superintendent.
Because when your toilet is broken, you definitely call a hedge fund manager.
The Broad Academy: Where Scandals Are Born
Special recognition must go to the late Eli Broad's superintendent training program, which has produced more scandal-plagued administrators than a reality TV casting call.
As one astute observer noted (channeling a certain former president's rhetoric): "When Broad Academy sends its people, they're not sending their best. They're sending people that have lots of problems, and they're bringing those problems with us. They're bringing TFA. They're bringing crime. They're hedge funders. And some, I assume, are good people."
The Broad Academy taught superintendents to manage school districts like corporations—complete with the creative accounting, cozy vendor relationships, and federal investigations that come with the territory.
The Board of Education: Not Exactly Scandal-Free Themselves
While superintendents get most of the headlines, let's not forget that board members have their own impressive rap sheets:
Ref Rodriguez (2017-2018)
The charter school movement's "poster child" became Board President, then was charged with conspiracy, perjury, and money laundering. He funneled nearly $25,000 of his own money through straw donors to make his campaign appear grassroots.
He pleaded guilty to a felony conspiracy charge and four misdemeanors.
Grassroots!
Nury Martinez (2009-2013)
Before her spectacular 2022 downfall as LA City Council President (caught on tape making racist comments and plotting to manipulate redistricting), Martinez served on the LAUSD Board. Her tenure was marked by accusations of pay-to-play politics and aggressive fundraising from district vendors.
The corruption pipeline runs deep.
The Current Crisis: A Board Divided
On February 27, 2026, the LAUSD Board voted unanimously (7-0) to place Carvalho on paid administrative leave. The fact that this vote was unanimous—including members who were originally his strongest allies—suggests the FBI's evidence was damning enough to unite a politically fractured board.
The current board dynamic:
- The "Union Block" (backed by United Teachers Los Angeles): Scott Schmerelson (President) and Rocío Rivas (Vice President) have framed the AllHere scandal as a failure of billionaire-funded reform
- The "Reform Block" (backed by charter and tech-aligned PACs): Nick Melvoin and Kelly Gonez were early supporters of the "Ed" initiative and have received substantial support from billionaires like Reed Hastings
The 2022 election of Rocío Rivas—who defeated a candidate backed by over $5 million in billionaire spending—shifted the board back toward a union-friendly majority. This power shift helps explain why Carvalho was sidelined so quickly once the FBI came knocking.
The Shadow School Board
Here's the dirty secret: billionaire spending has created a "Shadow School Board" that operates behind the scenes. Even when reform advocates don't have a voting majority, their ability to fund massive independent expenditure campaigns ensures that every superintendent must satisfy wealthy donors or risk a well-funded campaign to replace the board members who hired them.
The 2022 "Swing Vote" Battle saw over $10 million flood into a single race for District 2. Reed Hastings and Bill Bloomfield poured nearly $9 million into supporting their candidate, Maria Brenes. Despite the massive spending, union-backed candidate Rocío Rivas won.
That's right: it took $9 million to lose a school board race.
These aren't salaries that justify this spending—board members earn modest compensation. This is about control of a $14.9 billion budget and the ideological battle over the future of public education.
The "Portfolio Model" Endgame
What do these billionaires actually want? They're pushing for a "portfolio model" of education that involves:
- Expanding charter schools to create market competition
- Weakening teachers' unions (particularly UTLA)
- Selecting superintendents who manage districts like corporations rather than civic institutions
- Closing "underperforming" schools and replacing them with charters or "pilot" schools
- Promoting technology-centric solutions (like $6 million AI chatbots that don't work)
Critics call this "crony capitalism" and argue that billionaires want to privatize public education, weaken unions, and hand over control of public land and funds to private boards.
Supporters call it "disrupting a failing bureaucracy" to provide high-quality options for low-income students.
The reality? It's created a revolving door of scandal-plagued superintendents, wasted hundreds of millions in taxpayer dollars, and turned school board elections into the most expensive local races in American history.
The Revolving Door: A Brief History
Since 2000, LAUSD has cycled through superintendents like a celebrity cycles through publicists:
- Roy Romer (2000-2006): Former Colorado Governor
- Ramón C. Cortines (2000, 2009-2011, 2014-2016): The crisis manager who kept coming back
- David L. Brewer III (2006-2008): Retired Navy Vice Admiral whose contract was bought out early
- John Deasy (2011-2014): iPad scandal, FBI investigation, resignation
- Michelle King (2016-2018): First Black woman to lead LAUSD; retired for health reasons, passed away from cancer in 2019
- Austin Beutner (2018-2021): Investment banker with no education experience
- Alberto Carvalho (2022-2026): Celebrity superintendent, now on administrative leave
- Andres Chait (2026-Present): Acting superintendent, appointed after Carvalho's suspension
The average tenure? About 3.5 years. That's barely enough time to learn where the bathrooms are, let alone implement meaningful educational reform.
The Debra Kerr Connection: Follow the Money
The FBI's investigation centers on Debra Kerr, whose relationship with Carvalho dates back over a decade to his Miami days. Here's what we know:
- Kerr was a consultant/salesperson for AllHere
- She was allegedly owed a $630,000 commission for closing the LAUSD deal
- Her son also worked for AllHere as an account executive
- Her Florida home was raided by the FBI simultaneously with Carvalho's properties
- Social media posts and industry reports place her and Carvalho in the same professional circles for years
The question investigators are asking: Was the $6 million AllHere contract steered to the company because of Carvalho's personal relationship with Kerr? Did board members friendly to the "reform" agenda look the other way because they shared the same billionaire donor base?
This isn't about a direct bribe to a board member. It's about a sophisticated influence network where lobbyists, consultants, and contractors with personal ties to leadership bypass traditional vetting processes.
The Prop 28 Betrayal: A Side Dish of Scandal
While the AllHere investigation dominates headlines, don't forget about the Prop 28 scandal. Former Superintendent Austin Beutner is suing the district, alleging that LAUSD misappropriated $76.7 million in voter-approved arts funding.
Instead of hiring new arts teachers as required by law, the district allegedly used the money to cover existing staff salaries and plug budget holes. It's a classic "shell game"—voters approved funding for one thing, the district spent it on something else.
California lawmakers have requested a state audit. The lawsuit is ongoing. And students still don't have the expanded arts programs they were promised.
Shocking.
What Now? The Andres Chait Era
The board has appointed Andres Chait, the district's Chief of School Operations, as acting superintendent. Chait has no known ties to the AllHere contract, which is apparently the highest qualification one can have for the job right now.
His mandate: "Stability and continuity" while federal investigators do their thing.
Translation: "Please, God, let us go one fiscal year without a scandal."
The Bigger Picture: A National Problem
LAUSD isn't unique. This pattern repeats in large urban districts across the country:
- New York City under Bloomberg: Massive charter expansion, weakened union influence
- Chicago: School closures, charter growth, teacher strikes
- Philadelphia: District schools starved of resources while charters proliferate
- Detroit: Emergency managers, bankruptcy, privatization
The billionaire education reform movement—funded by the Waltons, Gates Foundation, Broad Foundation, and others—has spent billions over the past two decades pushing this agenda.
The results? Mixed at best. Scandals? Plentiful.
The Irony: "Disrupting" Public Education Into Dysfunction
The greatest irony of the billionaire reform movement is that in their quest to "disrupt" what they view as a failing bureaucracy, they've created something far worse: a system where:
- Accountability is murky (Who oversees charter schools? Who investigates superintendent misconduct?)
- Taxpayer money flows to private entities with minimal oversight
- School board elections cost millions, making them accessible only to those with billionaire backing
- Superintendents serve wealthy donors rather than students and families
- Scandals are routine rather than exceptional
They've turned public education into a corporate playground where the rules are made up and the points don't matter—except they do matter, because we're talking about children's education.
A Modest Proposal
Perhaps it's time to try something radical: How about we let educators run school districts?
I know, I know—it's a crazy idea. But hear me out:
- Hire superintendents with actual classroom experience
- Let teachers have a meaningful voice in policy decisions
- Fund schools adequately instead of creating artificial scarcity
- Stop treating education like a market to be disrupted
- Implement real oversight and accountability for contracts
- Ban billionaire spending in school board elections
Revolutionary, right?
The Prognosis: More of the Same
Will anything change after the Carvalho scandal? History suggests: probably not.
The FBI will investigate. Maybe someone will face charges (though Carvalho hasn't been charged with anything yet). The board will hire another superintendent. Billionaires will continue funding board elections. Another ambitious tech initiative will be launched. Another scandal will erupt.
Rinse. Repeat.
The Los Angeles Unified (School)Scandal District will continue its proud tradition of administrative dysfunction, because the underlying power structure—the billionaire oligarchy that funds board elections and demands corporate-style management—remains intact.
Conclusion: The Swamp Runs Deep
From Cortines to Carvalho, from iPads to AI chatbots, from Scholastic kickbacks to AllHere commissions, the scandal runs rampant in LAUSD and most large urban districts.
The billionaire oligarchy—Reed Hastings, the Waltons, Michael Bloomberg, Doris Fisher, and the ghost of Eli Broad—continues to serve up a steady diet of scandal because the system is designed to produce these outcomes.
When you treat public education as a business opportunity rather than a civic responsibility, when you install corporate managers rather than educators, when you prioritize "disruption" over stability, when you let wealthy donors pick school board members who then hire superintendents beholden to those same donors—this is what you get.
The slime runs deep in this oligarchy swamp.
And until we fundamentally change who has power over public education, we'll keep getting the same results: wasted taxpayer money, federal investigations, administrative chaos, and students who deserve better.
Welcome to the Los Angeles Unified (School)Scandal District, where the only thing we consistently produce is headlines.
Now, if you'll excuse me, I need to go check if my local school board candidates are backed by billionaires. Spoiler alert: They probably are.
EPILOGUE: The AI Chatbot Named "Ed" Would Like a Word
In a final twist of irony, the AI chatbot at the center of this scandal was named "Ed"—presumably short for "Education."
One can only imagine what "Ed" would say about all this, if it had actually worked:
"Hello, student! I'm here to help you succeed! Also, my creator is under federal indictment, my salesperson is owed $630,000 in commissions, and the superintendent who bought me is on administrative leave after FBI raids. But don't worry—I'm sure this won't affect your learning experience! Now, shall we work on your math homework?"
Ed the AI Chatbot: The perfect metaphor for billionaire education reform—expensive, non-functional, and under federal investigation.
Fin.
