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April 04, 2008 08:24 PM UTC

Bob Schaffer, David Brennan and D'Oh!

  • 22 Comments
  • by: Colorado Pols

We wrote in August that Republican Senate candidate Bob Schaffer was trying to deflect charges that donations he received from David Brennan influenced his votes on a shaky charter school connected with Brennan.

Schaffer’s connection with Brennan could be getting worse in light of a couple of recent stories out of Ohio. From The Columbus Dispatch:

A record $5.2 million fine was levied yesterday by the Ohio Elections Commission against a pro-charter-school group that helped elect Republicans across Ohio in 2006.

The whopping fine fell on All Children Matter, a Michigan-based organization that the commission said illegally funneled $870,000 in campaign contributions through its Virginia political-action committee to its PAC in Ohio in 2006. David Brennan of Akron, Ohio’s biggest charter-school operator, has donated $200,000 to the group.

Voting 5-0, the bipartisan commission agreed with the secretary of state’s argument that All Children violated Ohio campaign finance laws that limited PAC contributions to $10,000.

The fine amount was unheard of, particularly from a commission that is regularly criticized by watchdog groups and others for going light on campaign-finance violators. Philip C. Richter, executive director of the commission, said his previous highest recommendation for a fine was about $90,000.

This certainly doesn’t make Schaffer’s involvement with Brennan look very good. And neither does this story from The Cincinnati Enquirer:

One of the Ohio’s largest teachers unions is challenging the tax-exempt status of schools run by the state’s largest operator of charter schools.

The Ohio Federation of Teachers on Thursday sent a letter to the Internal Revenue Service asking it to investigate the nonprofit, tax-exempt status of at least 25 of the charter schools run by White Hat Management Inc.

White Hat, a for-profit company based in Akron, operates 31 charter schools in Ohio, including four Cincinnati-area schools: Life Skills Centers in Middletown, Walnut Hills and Roselawn, and Riverside Academy, a Hope Academy in Riverside. Its Ohio schools serve more than 9,000 students; the schools received about $85 million in state revenue last year, the union said.

The company also operates schools in Arizona, Colorado, Florida, Michigan and Pennsylvania [Pols emphasis]

…Also, at least 95 percent of these schools’ revenues – mainly Ohio education dollars – are “passed through” to for-profit White Hat entities.

Many White Hat schools lease or sublease their buildings from White Hat entities. Sometimes those arrangements are profitable for White Hat and expensive for the schools, Taylor said.

For instance, one Cleveland-area White Hat school subleasing from a White Hat subsidiary pays that subsidiary’s “base rent” of $48,000 a year plus an additional 6 percent of the school’s annual revenue over $800,000 a year. That becomes profit for White Hat, the letter says.

White Hat staff and attorneys – not the nonprofit boards or authorizers – negotiated contracts with the Ohio Department of Education to create many of the White Hat schools, the letter states. Sometimes, Ohio’s Education Department staff corresponded with White Hat founder David Brennan and his company attorneys on school matters, rather than with the schools’ governing boards.

This story seems like it is only going to get worse, and if it does, Schaffer’s ties to the whole for-profit charter school industry are going to be a major drag on his Senate campaign.

Comments

22 thoughts on “Bob Schaffer, David Brennan and D’Oh!

  1. Scene: middle agged men in suits playing in a playground.

    “Bob Shafer gave me your tax dollars for a substandard product: Thanks Bob”

    “Bob Shafer overruled the denial of my contract for performace failure.  Thanks Bob”

    “Colorado holds students and teachers accountable, but not compnaies taking taxpayer money. Thanks Bob”

    “Hey Bob another checks in the mail:  I khow that’s the thanks you really want.”

  2. Even if Brennan is crooked, there was never any direction connection between him and Schaffer. Sure, Brennan gave to Schaffer’s campaign, but how many sleazebags have given to any number of candidates, Republican or Democrat, over the years?

    This whole story was just guilt by association, trumped up by ProgressNowAction for a cheap political shot.

    I don’t agree with Schaffer at all on the issues, and I’m not a Republican, and I don’t like charter schools, but this whole story-about-Schaffer’s-connections just stinks of lowball politics.

    1. Sure no connection… except for all that moeny and suport he gave him. Thanks for clearing that up John!

      The problem here is Schaffer didn’t ignorantly fall into this situation. Along with Big Oil man Alex Cranberg he’s the biggest proponnet of Charter Schools in Colorado who has strong ties to White Hat and Brennan.

      It’s not guilt by association. It’s guilt by coordination.

  3. Even if Brennan is crooked, there was never any direction connection between him and Schaffer. Sure, Brennan gave to Schaffer’s campaign, but how many sleazebags have given to any number of candidates, Republican or Democrat, over the years?

    This whole story was just guilt by association, trumped up by ProgressNowAction for a cheap political shot.

    I don’t agree with Schaffer at all on the issues, and I’m not a Republican, and I don’t like charter schools, but this whole story-about-Schaffer’s-connections just stinks of lowball politics.

    1. Of these other pols who have taken money from crooks (and they certainly do exist on both sides of the aisle) how many of the pols cast a deciding vote that directly benefited the business of the donor?

      It’s not as if Schaffer just took a contribution from a shady interest and that’s all there is to the story. He took a series of contributions from a shady interest and cast votes on the SBE to benefit said shady interest.  

        1. I agree that Schaffer should return the money, as is standard practice in politics when some controversy comes up. But Brennan donated to his campaign AFTER THE VOTE. Besides, Schaffer’s a longtime proponent of charter schools, and would have probably cast the same vote anyway.

          Again, there’s no real connection here, just some bad PR and mismanaging on the part of Schaffer’s campaign.

          1. Brennan and Schaffer are apparently old friends as Brennan $2,000 to his SBE race in 2004.

            Then we have the curious vote/$2300 donation in May and June of 2007 and another $6900 since. The issue of what came first – donation or vote – doesn’t matter at all. There is an appearance of impropriety, an appearance of a quid-pro-quo.

            Someone on the SBE who has a history with a shady for-profit charter school outfit should disclose that past relationship before casting such a crucial vote.

            We’re left with a situation where Schaffer was either engaging in improper conduct or was too clueless to realize how his conduct would appear.

          2. Besides, Schaffer’s a longtime proponent of charter schools, and would have probably cast the same vote anyway.

            The story will be how charter schools are another way for Republicans to pull money out for their cronys at the expense of children. That angle will really hurt.

            1. Either he supports schools that may just be slush funds…

              …Or he takes money from someone who promotes schools that may just be slush funds.

              Either way, he looks bad.

  4. For full disclosure, I am on the board of the “shaky” charter school referenced in this post.

    The school serves students 16-21 who have dropped out of school for 60 days or more. 52 percent of the students are Latino, and 30 percent are African American. They come to us reading at the fifth grade level, 30 percent of the young men are on probation, and many of the young women have babies.

    It is the ONLY school specifically serving this population in Denver. Despite the challenges they face, our students love  the school and are determined to graduate and move on to better lives. In the past four years, more than 150 students have graduated.

    Progress Now, or whatever the group is, fabricated the story that Schaffer was the key vote when the Colorado Board of Education remanded the decision to close the school back to DPS.

    Despite our determined efforts, we believed the vote would go against us until Pamala Suckla (D) took a strong position in our support. I turned to two young Hispanic girls sitting next to me and said, “I think we may win this,” at which point they broke into tears. It was Suckla who provided those girls and our current group of 130 students the opportunity to fulfill their dreams.

    DPS gave us another year and last month the school was renewed on a 6-1 vote by the Denver Public School Board.

    In one of our board meetings we spoke briefly about trying to correct the public record but decided against it since it would seem like we were playing politics.

    It is the board that controls the school and hires the management company that is run by David Brennan. The management company did exactly nothing during our efforts to appeal the closing of the school.

    For those who would try to use our students — struggling young people — to beat Bob Schaffer — shame on you.

    1. In the above post I wrote that Pamela Suckla had cast the deciding vote in keeping Life Skills Center open. My apologies, I meant Evie Hudak (D -Westminster).  

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