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“I have made the decision to wind down the organization over the coming months. It wasn’t an easy decision, and the unavailability of this technology is a real missed opportunity for teachers and school districts seeking to improve student learning.”

—Iwan Streichenberger, Chief Executive Officer of inBloom, in announcing the decision to terminate efforts to gather and store confidential student information in a massive data bank controlled by Rupert Murdoch and Bill Gates.

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We are back from an extended Easter break and the first thing that landed on our desk was an interesting story of national import and one in which LouisianaVoice played a small but important role more than a year ago.

It was on Feb. 20, 2013, that we broke a story which almost immediately (among bloggers, that is; the mainstream media continued to ignore the impact of our revelations for several more months) produced state repercussions against John White and the Louisiana Department of Education (LDOE). https://louisianavoice.com/2013/02/20/doe-emails-reveal-secretive-programs-ties-to-gates-rupert-murdoch-and-fox-news-network-agency-in-general-disarray/

That story, of course, was about the agreement between LDOE and inBloom, headed by Rupert Murdoch and supported in large part by a hefty cash infusion of $100 million by Bill Gates, that called for InBloom to provide sensitive personal data on hundreds of thousands of Louisiana school children—with no guarantee from inBloom that the data would not be susceptible to intrusion or hacking.

Yesterday, April 21, 2014, just 14 months after our initial story, came the word that inBloom was shutting down. http://bits.blogs.nytimes.com/2014/04/21/inbloom-student-data-repository-to-close/?_php=true&_type=blogs&_r=0

What was Murdoch’s motive for this ambitious program” Well, we’ll let him tell you in his own words: “When it comes to K through 12 education, we see a $500 billion sector in the U.S.” http://www.inthepublicinterest.org/blog/jeb-bushs-education-nonprofit-really-about-corporate-profits?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+itpi-blog+%28ITPI+Commentary+Feed%29

Yesterday’s news, welcome as it certainly is, is nevertheless tempered somewhat by two nagging questions:

  • What becomes of all that data inBloom has already received from state school systems across the U.S., Louisiana included?
  • Does one realistically believe that Murdoch and Gates are going to just walk away from a “$500 billion sector” in the U.S. economy?

The answers, in order, are: who knows and not likely.

Subsequent to our posting our original story, White attempted to assuage the public concern about “parking” private student data in the inBloom “garage,” announced on April 19 that he was withdrawing student information from the InBloom database. When inBloom responded by claiming Louisiana was “still part of inBloom community,” LouisianaVoice made a public records request three days later (April 22) in which we asked for “the official letter or email that you sent to inBloom to cancel the data storage agreement…”

White ignored our request and LouisianaVoice filed suit and the case was settled prior to trial with LDOE having to fork over our legal costs plus $3500 in fines. What we finally got was a statement from LDOE saying, “…the Department is not in possession of any public record(s) responsive to the above-written request.” https://louisianavoice.com/2013/05/10/holy-missing-documents-batman-doe-has-no-record-of-inbloom-agreement-cancellation-for-student-data-parking/

The information we literally stumbled upon was contained in 119 pages of emails we had requested from LDOE. (Also among those emails was that now-infamous, somewhat creepy exchange between Peter Gorman, senior vice president of Wireless Generation, the newly-formed education division of Murdoch’s News Corp., and Louisiana Superintendent of Education John White in which White confided to Gorman, “Dude—you are my recharger.”)

The story of Louisiana’s plans to take part in Murdoch’s scheme actually broke a month before our initial story, but included Louisiana only peripherally. A New York non-profit organization calling itself Class Size Matters, in January 2013 made mention of the fact that Louisiana would be participating in the data collection move a month before, but no one in Louisiana (White’s small circle of sycophants at LDOE) had any knowledge of what was taking place with this confidential student information.

When our story about Louisiana’s intentions to contribute personal student data to inBloom broke, friend and fellow blogger Jason France of The Crazy Crawfish (an announced candidate for Chas Roemer’s seat on the Board of Elementary and Secondary Education) immediately re-blogged our post. In quick order, others, like Diane Ravitch, formerly assistant secretary of education under President George H.W. Bush and now an activist against many national education programs like Common Core, helped the story go viral.

As of April 2, 2014, Class Size Matters announced that each of the nine states originally listed as inBloom’s “partners,” including New York, had either pulled out completely, put data sharing plans on indefinite hold or made data-sharing voluntary on the part of individual school districts. Some local New York school superintendents even wrote letters to inBloom, demanding that their data be deleted, a request that inBloom rejected.

When it was launched, inBloom announced that the nine states were “partners” in the data-sharing plan. After protests from parents and privacy advocates, however, three states pulled out completely. The three states were identified as Colorado, North Carolina and Louisiana.

“Because of the egregious over-reaching of the Gates Foundation and inBloom,” said Class Size Matters in a prepared statement posted on its web page, “parents throughout the country have now been awakened to the myriad threats to student privacy…all in the name of ‘personalized learning.’” http://www.classsizematters.org/inbloom_student_data_privacy/

All of which clearly and unquestionably illustrates the importance of reporting the real news, the real issues, as opposed to simply printing press releases and asking questions instead of accepting elected officials’ and bureaucrats’ condescending assurances as gospel—and of the effectiveness of concerted efforts on the part of a determined citizenry to work toward a common goal.

Are we (LouisianaVoice and Crazy Crawfish) proud? Are we bragging? Are we entitled to grab a small share of the credit?

Damn right.

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On Dec. 7, 2010, Discovery Education, a division of Discovery Communications, announced that Louisiana and Indiana had joined Oregon in adopting the Discovery Education Science Techbook as a digital core instructional resource for elementary and middle school science instruction. https://www.discoveryeducation.com/aboutus/newsArticle.cfm?news_id=663

Thanks to a sharp-eyed researcher, Sissy West, who writes a blog opposing the Common Core curriculum, we have learned that on Nov. 30, seven days before the deal between the state and Discovery Education was made public, State Sen. Conrad Appel (R-Metairie) purchased Discovery Communications stock, according to financial disclosure records filed with the State Ethics Board. http://nomorecommoncorelouisiana.blogspot.com/2014/03/crisis-of-confidence.html

Appel is a major proponent of education reform in Louisiana, including the controversial Common Core curriculum.

He also is Chairman of the Senate Education Committee and was in a unique position to know not only of the pending deal between Discovery Education and the Louisiana Board of Elementary and Secondary Education (BESE) as well as the company’s agreement with Indiana and Oregon, as well as Texas and Florida.

The Discovery Education Techbook is touted as a “Core Interactive Text” (CIT) that “separates static text from a fully digital resource.” http://www.discoveryeducation.com/administrators/curricular-resources/techbook/K-8-Science-digital-textbook/index.cfm

Appel’s financial disclosure form indicates his Discovery Communications stock purchase was between $5,000 and $24,999. APPEL REPORT PDF

Discovery Communications is traded on NASDAQ and on the date of Appel’s purchase, the company’s shares opened at $40.96 and closed at $40.78.

And while there was no significant movement in the stock’s prices on the date of and the days following Discovery’s announcement of the agreement with BESE, the stock hit a high of $90.21 per share on Jan. 2 of this year, meaning Appel’s profit over a little more than three years, on paper, was in excess of 100 percent. Put another way, he doubled his investment in three years. The stock closed on Thursday (March 27) at $75.72, still an overall gain of 85 percent Appel.

The most significant thing about Appel’s Nov. 30, 2010, purchase of the Discovery Communications stock is the volume of shares traded on that date. More than 7.5 million shares of Discovery Communications stock were traded that day, more than double the next highest single day volume of 3.1 million shares on Aug. 1, 2011. Daily trading volume generally ran between 1.1 million and 1.9 million shares in a monthly review from December 2010 through March of this year. http://finance.yahoo.com/q/hp?s=DISCA&a=10&b=30&c=2010&d=02&e=28&f=2014&g=m

While there is no way to know with any certainty, it is possible that the Discovery Education’s Techbook deals contributed to the surge of trading activity on Nov. 30.

Appel’s 2012 financial report reveals that he also purchased between $5,000 and $24,999 of Microsoft stock on June 4, 2012, the same date that the Louisiana Legislature adjourned its 85-day session. MICROSOFT

Ten days earlier, on May 25, the Louisiana Legislature approved the implementation of Common Core in Louisiana after the Bill and Melinda Gates Foundation poured more than $200 million to develop, review, evaluate, promote and implement Common Core.

www.gatesfoundation.org/How-We-Work/Quick-Links/Grants-Database

And while no one is suggesting that Appel is involved in any type of illicit behavior or insider trading, the timing of his stock purchases might raise a few eyebrows. It could appear to some as more than coincidental—and ill-advised—that such transactions and official state actions would occur in so close a timeframe not once, but twice, and would involve a single individual who promoted Common Core legislation and who served as chairman of a key legislative committee that dealt with education issues.

Perception, as they say, is everything.

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The more we look at that contract between the Louisiana Department of Economic Development (DED) and LR3 Consulting, the more unanswered questions arise.

LR3, you may remember from our Feb. 5 post, is run by Lionel Rainey, III, who also happens to be the PR spokesperson retained by those who wish to form their own city of the St. George area of East Baton Rouge Parish, separate and apart from the city of Baton Rouge.

If one didn’t know better (and we truly did not initially), Rainey could easily be taken as the leader of the movement since local television news reports on the pullout efforts invariably feature him reciting the proponents’ talking points. Turns out he’s just a hired gun.

(Proponents, by the way, don’t like the term pullout because, they say, the St. George area is not within the Baton Rouge city corporate limits in the first place, so technically, it is not a pullout or secession; it’s simply a movement to incorporate the currently unincorporated area as a city of its very own.)

Before LR3, there was 3 Lions Consulting which was awarded a three-year contract (July 1, 2012, through June 30, 2015) by DED to “establish a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements” for DED’s Louisiana FastStart program (LFS) at a contract cost of $699,999.

In other words, Contract No. 713974 called for 3 Lions to compile a data base of potential employees for Louisiana plants and businesses—the same thing that the Louisiana Workforce Commission had been doing and which it still does.

But barely three months into the contract and after being paid just under $31,000, Jeff Lynn, LFS executive director, sent a one-paragraph letter of termination to 3 Lions partner Stanley Levy, III. “In accordance with the terms of our contract…Louisiana FastStart hereby provides you with the required five (5) day written notice to terminate our agreement, effective Oct. 19, 2012…”

The reason given for the termination was a two-word message scribbled on DED’s performance evaluation: “Ownership change.”

Levy apparently had parted company with his partner, precipitating the contract cancellation. His 3 Lions partner? Lionel Rainey, III, who had incorporated his new business, LR3, only a month before. LR3 was subsequently awarded an even bigger three-year contract ($717,204) on Oct. 20, 2012, just one day following the termination date of the 3 Lions contract.

The LR3 contract, to run from Oct. 20, 2012 through Sept. 30, 2015, again calls for the “development, establishment and/or delivery of a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements.”

Through January 13 of this year, DED had paid LR3 $186,880.

But the LR3 contract, like that of 3 Lions before it, is broken into three yearly maximums of $217,204 the first year and $249,999 in each of the second and third years.

For 3 Lions, the payment maximums were $169,999 the first year and $249,999 in each of the second and third years.

This was done, according to DED Communications Director Gary Perilloux, so as to avoid the necessity of issuing a request for proposals (RFP) and thus avoid “competitive bidding or competitive negotiation.”

The issuing of service contracts is permissible so long as the “total contract amount is less than $250,000 per twelve-month period,” according to Title 39, Section 1494.1 of the Louisiana Revised Statutes which then goes on to say, “Service requirements shall not be artificially divided so as to exempt contracts from the request for proposal process.”

Section 1499 of the same title says, “The head of the using agency or the agency procurement officer shall negotiate with the highest qualified persons for all contracts for professional, personal, or those consulting services for less than fifty thousand dollars, or those social services qualifying under R.S. 39:1494.1(A) at compensation which the head of the using agency determines in writing to be fair and reasonable to the state (emphasis DED’s). In making this determination, the head of the using agency shall take into account, in the following order of importance, the professional or technical competence of offerers, the technical merits of offers, and the compensation for which the services are to be rendered, including fee. Negotiation of consulting services for $50,000 or more or social services not qualifying under R.S. 39:1494.1(A) shall be conducted in accordance with Part II, Subpart B hereof. [RFP]

To justify the contract, an undated letter was sent to Sandra Gillen, since retired as the Director of the Office of Contractual Review, by DED contracts reviewer Chris Stewart which certified that “The services (being contracted for) are not available as a product or a prior or existing professional, personal, consulting, or social services contract.”

But wait. Not so fast.

LouisianaVoice has found yet a third contract with Covalent, LLC, for an even larger amount–$749,997—awarded more than a month after the LR3 contract.

That contract, divided into three equal maximum payments of, wait for it… $249,999, calls for the “development, establishment, and/or delivery of a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements.”

In other words, Covalent’s contract calls for it to perform services which are identical to those of first 3 Lions and then of LR3.

And yes, there is that same letter from Chris Steward to Gillen’s successor, Pamela Rice which certifies that “The services (being contracted for) are not available as a product or a prior or existing professional, personal, consulting, or social services contract.”

But…but…what about the LR3 contract?

Good question. It looks as though someone misrepresented the facts with that certification. DED now has two firms performing services that appear to be duplications of work being done by LWC—and neither of the contracts which combine for almost $1.5 million, was awarded on a competitive bid basis.

Apparently, Covalent is performing some work, though not nearly as much as LR3. From Jan. 3, 2013 through May 30, 2013, Covalent has been paid a grand sum of $35,465—and nothing since May 30. That’s a far cry from the $249,999 allowed under its contract.

All of which raises the obvious question: Why do these firms require such massive contracts and why did DED find it necessary to break them up in apparent violation of state statutes just so it could make the contract awards to whom it wanted?

And why did DED desire the services of Rainey over Levy to the point of cancelling the 3 Lions contract so it could award a second no-bid contract to Rainey’s new company? And why, only six weeks after awarding Rainey a $717,000 contract did DED contract with Covalent for $749,997 to perform the same services as Rainey?

What were the backgrounds of Levy and Rainey? And why did they terminate their partnership, especially when it cost Levy a nice, fat state contract?

For openers, LouisianaVoice found records that show LR3 was on the payroll of State Rep. John Schroder (R-Covington) since November of 2012 and has received $16,250 in 11 monthly payments of $1,250, one payment of $1,875 and another of $625. All payments were made at least a year after the 2011 elections.

3 Lions, before the dissolution, also appears have spread its services around. The firm received $5,600 from John Conroy in 2012 before Conroy dropped out of the Baton Rouge mayor’s race; $8,000 from State Treasurer John Kennedy, $34,000 from Board of Elementary and Secondary Education President Chas Roemer during Roemer’s campaign for re-election in 2011, and $52,600 from Secretary of State Tom Schedler during his 2011 campaign for re-election.

While Rainey and LR3 got the $717,000 contract with DED and a $20,000 contract with the Secretary of State’s office, Levy, with his new company, Fuse Media, has only managed a modest $49,825 post-LR3 contract to “develop a strategic communications plan, video series and animated PowerPoint slides for the Governor’s Office of Coastal Restoration.”

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In the relative short existence of LouisianaVoice, we have deliberately avoided antagonizing the so-called mainstream media. First of all, we really don’t even like that term and second, we saw no reason to go out of our way to make additional enemies now that we have been removed from Gov. Jindal and John White’s Christmas card lists.

But today’s (Jan. 15) shameless publication—without proper vetting—of what obviously was a verbatim press release either from Jindal or White’s offices, perhaps both, does a serious disservice to The Advocate’s credibility and is nothing less than an insult to its readers’ intelligence.

The nine-paragraph story, credited to the Capitol News Bureau, is nothing more than a puff piece extolling Louisiana for having the best “policy environments” (whatever that may be) for improving public schools. http://theadvocate.com/home/4857391-125/studentsfirst-group-rates-louisiana-education

While the story does attribute the report to an outfit calling itself StudentsFirst and while it did mention in passing that StudentsFirst is headed by Michelle Rhee, it was woefully inadequate in explaining what—and who—StudentsFirst and Michelle Rhee are.

A maximum of five to 10 minutes of research would have shone a glaring light on both that would have gone far in putting this hoax of a story into its proper perspective.

We feel The Advocate owed that much to its readers.

And it failed. Miserably.

If you think we are feeling smug about this, think again. Investigative reporting, in our simplistic definition, simply means telling the full story. We are truly saddened to see a publication fail so glaringly in its duty to inform fully.

StudentsFirst has poured funds into the campaigns of Board of Elementary and Secondary Education candidates but more important, Rhee was forced out as head of the Washington, D.C. school system in 2010 after reports of widespread cheating on standardized testing surfaced. The episode turned into one of the biggest student test score cheating scandals in the nation and was the subject of a Frontline story on LPB on Jan 8, 2013.

We first reported on this organization and its leader on that date almost exactly a year ago at https://louisianavoice.com/2013/01/08/1st-in-education-reform-%CF%80-yush-john-white-release-glowing-report-from-michelle-rhees-less-than-credible-studentsfirst/ and at https://louisianavoice.com/2013/01/13/%CF%80-yush-white-hawk-yet-another-national-study-lauding-la-education-reform-oops-part-of-study-gives-state-an-f-grade/

Our friend Jason France over at the Crazy Crawfish blog also called out Jindal and White on the (forgive the bad pun) whitewash. http://crazycrawfish.wordpress.com/2013/01/08/1013/

At the time, we commented that we were “being asked to believe Jindal and White when they regurgitate a highly suspect report churned out by Michelle Rhee.”

Some things, apparently never change and now the State Capital’s daily newspaper is allowing itself to be used in such a sordid, unabashed manner.

Shameless. Shameless and sad.

And now, a few hours after first writing this post, we learn that the Lafayette Advertiser ran essentially the same self-serving press release—with no questions asked. The Advertiser even included quotes from Jindal meant to give us all that warm fuzzy feeling. http://www.theadvertiser.com/article/20140114/NEWS01/301140013/Louisiana-ranks-first-nation-education-reforms

At least Washington Post writer Valerie Strauss did a little digging and debunked Rhee and her report, saying that the report “has no solid evidence to back it up” and that The report card “wouldn’t be worth mentioning, except that she (Rhee) remains a force in the public education debate and is able to attract major money from private donors.” Strauss also noted that the fact that criteria used in arriving at the grades are not a factor in improving student achievement “doesn’t seem to matter.”

http://www.washingtonpost.com/blogs/answer-sheet/wp/2014/01/14/michelle-rhee-gives-the-nation-a-d-in-school-reform/

Good to know there are still a few real reporters out there.

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