WakeEd

The WakeEd blog is devoted to discussing and answering questions about the major issues facing the Wake County school system. How much will the new Democratic majority on the school board do to undo the changes made by Republicans since 2009? Will the new student assignment plan be a hybrid of the last two models or primarily be a return to the use of busing for diversity? Who will replace Tony Tata as the new superintendent of the state's largest district? How will voters react to a likely request in 2013 to borrow potentially more than $1 billion to build and renovate schools?

WakeEd is maintained by The News & Observer's Wake schools reporter, T. Keung Hui. While Keung posts information and analysis on the issues, keep us posted on your suggestions, questions, tips and what you're doing to cope with the changes in Wake's schools.

Choose a blog

School board candidates raising record amounts of cash

Bookmark and Share

Record amounts of campaign cash are already flowing into the Wake County school board races with a month of fundraising still to go.

As noted in today's article, the individual candidates have raised a record total of more than $238,000 so far. That's more than the $167,000 raised by candidates in 2007 and the $155,000 raised in 2009.

With the political parties and political action committees also actively raising cash, it's likely this year's final total will exceed the more than $340,000 in overall school board election money raised in 2009.

“I think what used to be considered a sort of backwater not only of politics but also of municipal politics, school board races specifically, have become highly competitive races about issues that are important to at least a sizeable portion of the county’s population,” said N.C. State political scientist Andy Taylor about the money raised so far.

Around a third of the money this year has come from five donors. John and Ann Campbell gave $48,000 to Democratic candidates and the Wake Citizens for Good Government PAC. Art Pope, his wife Katherine and Bob Luddy gave $40,000 to Republican candidates.

“I hope that the money will be used to educate the voters and encourage a higher voter turnout and that the informed voters will choose an excellent school board,” said Art Pope. “I hope that the school board is successful in improving education in Wake County; they are working hard to do that.”

The Campbells did not return calls for comment.

For some of you guys who are wondering about Jim Goodmon and didn't see the prior post, he's only recorded as donating $1,000 so far to Keith Sutton. But Goodmon is a host at Thursday's Wake County Democratic Party fundraiser.

In terms of individual candidates, Christine Kushner and Ron Margiotta have become the third and fourth candidates to have raised more than $40,000 in a Wake a school board race. The other two candidates had mixed success.

Luddy raised nearly $80,000 but lost in 1997. Horace Tart raised more than $45,000 and won in 2005.

Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

  The question was how

 

The question was how could Luddy profit?  To answer requires that you know he has a for-profit school management company called Thales Management, not to be confused with Thales Academy, and that he has large real estate holdings in an undeveloped part of eastern Wake County.  If you do not know that, you cannot answer the question.
 
He could profit if the school board votes to build one or more neighborhood-only schools near Luddy's land.  That would raise the property values immensely.  He has paid thousands of dollars in campaign contributions to the people who will decide where to build those schools.
 
He could also profit by selling services, like Acadia NorthStar, the charter school services business run by candidate Donna Williams' husband.  The school board will soon vote on many charter school issues that will affect Luddy's school business, profit and non-profit.
 
Luddy established Thales Management to make a profit in the education business.  That is not a conspiracy.  When he was planning his Thales Academy, he used Franklin Academy, his public charter school, as a marketing tool.  The Apex Herald at the time regularly ran stories about his education plans for a network of private schools.  However, Thales Academy opened with fewer grades than expected.  The other private schools in his chain never materialized.  He may not have made a profit with Thales Management, but he tried.  Since the business is still active, he is probably still trying.  Is he?  Ask Kent Misegedes.  Or just ask Ron.
 
Acadia NorthStar is an LLC, not a non-profit.  Donna Williams' husband is trying to make a profit in the education business.  That is not a conspiracy.  It is a business plan.

Would you stop with the misinformation and misdirection already?

The question was whether Luddy would profit from converting public education to what WhalerCane called "private publicly funded schools."   So, all this tripe about his real estate holdings doesn't answer the raised question.

And then you go on to make a number of absolutely false statements, many of which don't address the original question:

The school board will soon vote on many charter school issues that will affect Luddy's school business, profit and non-profit

Not true!  Decisions regarding Charter Schools are all made by the STATE Board of Education, NOT the local boards.  

Also, Luddy does not currently have any for-profit schools

Luddy established Thales Management to make a profit in the education business

There's no evidence of this.  If the Thales schools were spending money on services provided by Thales Management, that would have to be publicly disclosed (at minimum).  Yet, there's no mention of it on Thales' form 990s. 

The other private schools in his chain never materialized.

False again....  Thales Apex has been joined by Thales Wake Forest and Thales Raleigh.

The fact is that Thales Academy has been a sink of Luddy's wealth, not a source of it.

Donna Williams' husband is trying to make a profit in the education business.

So what?  Here are some other companies trying to make a profit in the education business: Houghton Mifflin, Scholastic, Prentice Hall, Dell, Hewlett-Packard, Blue Bird, Sysco, Tharrington Smith. 

?

"He could profit". Using that logic anyone of us could profit. You still have not shown how he profits or an attempt to make a profit. But you continue to paint theories of how Mr. Luddy could do it. You could substitute your name for Luddy's and your post would be the same.

When are they going to spend this record cash?

I barely see any signs on the roads, haven't heard a peep out of 1 candidate publicly via the media or received the 1st piece of anything.

Isn't the election less than a month away now?

Spending

These reports were activity up to August 31. A smart campaign would know that nobody except us blog geeks is really paying attention until after Labor Day. Which is what bothers me as Ms Lasurdo has less than Mr Hill's cash on hand and she raised a whole bunch more. That doesn't seem to be a good use of campaign funds to me. I see alot of Redmond signs on the public roads. Isn't that illegal?

Just because money has

Just because money has been expended does not mean that what the money went for has been put into action yet. Flyers, ads, etc. could be paid for, but not yet disseminated.

Perfectly Valid Point

I agree that could very well be the case. Hope you're right.

According to the campaign

According to the campaign finance reports it appears they hold on to a lot of that cash and spend it on future campaigns of the same party holders.  It really gives definition to the gift that keeps on giving.

ot-what REALLY matters

At a school with 75 percent of children on free or reduced lunch, Barefoot said, the goal is to get children to believe in themselves, no matter their challenges at home or in life. That also means getting parents involved in their children's education, she said. 

Rose Curran, whose son is in second grade at Barwell, said she's already seen more parental involvement this year. "That's really good to see more parents take an active part in their child's education," she said 

http://www.wral.com/news/education/story/10117136/ 

Apologies for the short hijack....

WCPSS.....we know about Candy Less (the salt water kind and opposite of less) and what happened.  Tsk tsk.......for shame for letting that man get away with that!!!!!!!!!

"some of you guys"

Bless your little "unaffiliated heart" T Keung.  You're now sending me coded messages - "some of you people who wonder about Jim Goodmon". I feel "special".

Check your records for The Fletcher Foundation.  You see Jimmy Goodmon's mamma was a Fletcher (WRAL, etc) so Jim & Barbara do a LOT of their money funneling to left-wing liberal causes thru their Fletcher Foundation. Those "local political activists millionaires" like Jim and Art (and The Campbells - John & Ann) do that a lot.

Surely a "registered unaffiliated" N&O staffer would know that.  John Campbell, by the way, is a pharmacuetical mogul - The Campbell Alliance.

Your point made Agent about Art and Jim

But Bob Luddy has said he believes that public education should be disbanded in favor of private publiclly funded schools.  Of corse that would mean a good deal of profit for Mr. Luddy. 

I'm open to any reform in public education other than the elimination of it, and we all should fight that tooth and nail.  Unfortunately, we have School Board members who take Mr. Luddy's money and agree with him.  How ironic to serve on a school board for public education when you do not beleive in it.

Speaking of how important

Speaking of how important public education is to preserving our democratic society, I wanted to mention a book I came across which is being published this month by Rowman/Littlefield,  Preserving the Public In Public Schools by Phil Boyle and Del Burns.  I wonder if this is the book Burns mentioned he was working on to David Crabtree in his last interview on WRAL.  An overview can be found here:

http://www.rowmanlittlefield.com/Catalog/Flyer2.shtml?SKU=1610  

It is available for presale now at Amazon.com and Barnesandnoble.com.  I think it would be of interest to anyone dabating the issue.

Noteworthy that in the

Noteworthy that in the product description of the book it states..."Schools are political and ideological institutions in which each generation battles among itself for supremacy in determining purposes, goals and direction of public education."  Obviously, these forces have been at play in Wake County for quite some time and the Dems just can't stand it that they are struggling to regain control and push their agenda when Repubs. have gained favor with the voting public.  Meanwhile, kids and parents get jerked back and forth while both sides try to dictate curriculum, assignment schemes, grading policies, etc. 

Truth

I guess truth is the first casualty when a political hack makes a post. Please explain how Luddy will make a "good deal of profit"? You are either knowingly lying, ignorant or both.

I'm guessing both.  Perry

I'm guessing both.  Perry has no credibility here...I'm not sure why he keeps coming back.

when

Isn't anyone who registers with the N&O and meets those criteria able to post?     Aren't those who post here or just read this blog capable of making their own thoughful considerations?    Who made you the judge of who's post has merit or not for everyone beyond yourself who comes here?

?

The question is not who's post has merit. It was more along the lines of "why come on here and lie". Whalercane knows what he posted is not the truth but being the political prostitute that he is, he is willing to lie in order to try to advance his sides political beliefs. How sad it must be to have to resort to lying in order to score political points. Whaler i truely pity you and wonder how you can sleep at night, but then again your profession does not attract people with morales or values.

Someone who gets it....

Someone who gets it....

His Profession?

Does not attract people with morals or values? Is he a lawyer too?

Huh? The point was not...

Huh? The point was not that WhalerCane should be prevented from posting or that he shouldn't post, it is that he has no -- or more precisely, very little -- credibility when he does. Clearly that is true. WhalerCane is a self-admitted political hack who will do or say anything in attempts to appeal to his audience of ignorant far left-wing fanatics.

I didn't say he couldn't

I didn't say he couldn't come here and post, just that I don't know why he still does.

Perhaps he suspects there's still some lost sheep he can round up....

It's clearly both

He's not open to squat. He's the one who's been bitching about diversity falling off the map since it got the boot. What a shame. It must be like a fur ball you can't hack up.

"when you do not believe in

"when you do not believe in it."

A bit of a conclusion jump there whaler, even for you.  But, hey, desperate times call for desperate measures so jump away.

NO IT WOULDN'T

Of corse that would mean a good deal of profit for Mr. Luddy.

Preposterous.  Luddy's schools, like nearly every private K12 school, are all non-profit.  If you look at their public financial records (guidestar.org), you'll see that the cash flow is quite in the other direction -- he's donated hundreds of thousands of dollars to those schools ($200K to Thales just last year) -- and he draws no salary.

You can disagree all you want with Luddy's view of education.  But, have you considered that he actually hold those views sincerely, not just as a way to make a buck?  Or is that just inconvenient for your election-year spin?

 

Luddy could indeed profit in

Luddy could indeed profit in many ways.  Thales Academy (SOSID 915299) was formed in May of 2007 and Thales Management (SOSID 996272) was formed three months later. Thales Academy is a non-profit and Thales Management is for-profit.  Thales Management was formed to make a profit.  "The Corporation is authorized to engage in any lawful business activity for the purpose of earning profits."  Both businesses are managed from the same business address where Luddy manages his Chalks real estate development business.  Chalks owns a large amount of land in eastern Wake County near where the school board decided to relocate the new high school.  Here are some ways he could profit.

 
The school board votes for neighborhood schools that will be guaranteed to serve only the nearby community.  The school board then votes to build one or more new schools near Luddy's Chalks property.  Now, Luddy can sell homes there and advertise that the subdivision will have its own exclusive schools. Chalks Elementary?
 
The school board fast tracks new charter school applications for Luddy and he gets his "private" or "neighborhood" charter school, but at some personal expense.  His investment will be a tax deductible donation to a nonprofit he runs.  He then gets funding for the project from Acadia NorthStar, LLC, the charter school financing group.  Franklin Academy already gets funding from them.  They are managed by Thomas Williams, the husband of Donna Williams to whom Luddy has already given $4,000 in campaign contributions.  Thomas Williams returns the favor with financing.  Luddy gets his neighborhood charter school at a great low rate.  Taxpayers pay the interest out of per-student funding provided to Luddy which is why so many charter schools are no-frills.  They are no-frills only for the students, not the management.  Acadia NorthStar is doing just fine.  Luddy sells homes near Chalks Charter School.  
 
Luddy "leases" some of the less desirable land Chalks owns to a charter school he opens.  He allows the land to increase in value while he holds it, taking a tax deduction made to his own nonprofit and making improvements to the area at the nonprofit's expense.  Or he donates the land and takes a tax writeoff on land that would have been difficult to sell.
 
After being allowed to open other public charter schools, Luddy expands his Thales Management to provide administrative services to the multiple charter schools he manages.  He becomes his own Acadia NorthStar and eliminates the middle man, taking his share of financing and services fees.
 
The school board increases per pupil funding for charter schools, providing Luddy with additional funds to improve Franklin Academy to use that school as a model school for a chain of private Thales schools.  Or Luddy converts the enrollment-challenged Thales Academy into a public charter, getting him out of a bad investment. 
 
There are many ways Luddy could profit.
 
The Wake School Board is already Luddy's Board.
 
Margiotta $4,000
Goldman   $4,000 in two payments
Malone    $3,000
Tedesco   $8,000 in two payments (election and runoff)
 
None of that includes the donations Luddy made to WSCA which then made donations to these candidates and Prickett.
 
But Luddy has not run out of money.  Besides Ron Margiotta, Luddy has invested in these candidates:
 
Losurdo   $4,000
Matson    $4,000
Williams  $4,000
 
If school board members cannot vote when they have a conflict of interest and the issue is charter schools or building schools in eastern Wake County, who will be left to vote?

Churn

It is exactly the churn in WCPSS assignment model and the lack of attention to achievement that has kept the Thales schools bursting at the seams. They provide a stable alternative which allows children to learn at the level at which they test capable at a very very rock bottom reasonable price. Compare Thales tuition to any of the other private schools in the area  - especially the Goodnight Cary Academy! yikes! If there is money to be made off of private schools, Goodnight must be raking it in at that tuition! Lord knows he needs the grocery budget money of Wake families equally as much as Mr. Luddy does. 

As a Thales parent that is in part my money you're talking about and I can see exactly where it is going. It all goes back into the school, believe me. 

We never expected to have three kids in private school, and it has not been easy financially. I don't always agree with everything Mr. Luddy may choose to do politically, and I expect he doesn't even know or care about the politics of the parents at Thales. (I know there are plenty of liberals there.) But I could kiss Bob Luddy's feet for providing a life raft for our family that offered stability and high academic expectations for our children within a reasonable distance to our home. Many middle class parents like ourselves who value stability and high academic expectation (over 'extras' like athletics) for their children have been clipping a lot of coupons, eating a lot of peanut butter and hamburger helper to keep their kids at Thales. I thank our lucky stars we could swing it for our kids. But I feel very strongly that ALL CHILDREN IN WAKE COUNTY SHOULD HAVE SUCH AN OPPORTUNITY at a basic, rigorous and challenging school option that allows them to stay with their friends and familiar staff for as long as they want to or can. All the kids around us are our future. 

And yet, how about this for irony: If the public system ever is able to implement what the BOE majority claims to have as some of their goals: stability and student achievement - Thales schools will likely lose students. 

Why oh why would someone who wants to 'make money' from 'their' private schools support a majority direction that risks eliminating the chaos factors that have helped fill those schools? 

Gee. Could it be that the man is actually worried about the state of our future generations to the point where he is investing his own time and money into trying to help solve the problem?

No. That would be too obvious. 

Carry on with your conspiracy theories. They're amusing fiction. 

Didn't know that

Didn't know that all of your children were at Thales.   Interesting.

Yep

Yep. I guess you weren't on the mailing list for the conspiracy theories circulated - similar to those posts above - that made huge leaps of logic with that fact. Its tiresome how one dimensional characterizations need to be used to fulfill political agendas  - especially when it comes to students (ie: if you are low income you cannot achieve in 8th grade Algebra. ). 

Thankfully, there are many shades of difference and conflicts to stereotypes that make up the population. 

Like I said there are plenty of - shhh! - happy liberals at Thales. I don't think you can take a school choice and figure it into any kind of 'interesting' political statement.

Oh, unless its Enloe (lol!). 

No issues

No issues, no attacks.   Just noting.   We all bring differing experiences and can find ways to share the best of many differing school experiences to create the best options for those in WCPSS.    Whether you have children at Thales or Enloe or anywhere else, there are pros and cons which can can be explored for ideas for ways forward.

Dove

Well,  you really are a Dove and I appreciate that. Thank you for the response. :)

What a load of ......

Oh, it's so much fun slapping down blitheringly idiotic arguments.

(1)  I don't know what Thales Management is, but you can look at the Form 990's, and you won't find any payments to Thales Management.

(2) As to your chalks property scenario, perhaps, but that seems to be a bit of stretch.  In any case, Perry was talking about making money from the private schools -- you're postulating that the public schools continue.  However, this is the best argument in your entire post.

(3)  Your third paragraph is just factually impossible.  First of all, the School Board does not have the power to "Fast-Track" charter applications -- The state board of education has final authority over who gets approved; it's possible to go through the local boards, but that would slow the process down, not speed it up.  Secondly, the logic doesn't make sense -- if it's a tax-deductible donation, then Luddy can't get "interest" from the school.  

(4) WRT leasing undeveloped property to a charter school, huh?  How is the charter school going to get money to BUILD a school on that property?  Besides, the relationship you describe is illegal, both under federal non-profit law and under the NC charter schools act.  

The school board increases per pupil funding for charter schools, providing Luddy with additional funds to improve Franklin Academy to use that school as a model school for a chain of private Thales schools.

The money the charters get is determined by state law (NCGS 115C-238.29H) , not the local school board.

Or Luddy converts the enrollment-challenged Thales Academy into a public charter, getting him out of a bad investment. 

What investment?  As previously demonstrated, he's a benefactor of Thales, not a beneficiary.  And, it appears that Thales is doing a pretty good job with enrollment.  Finally, do you know what happens to the assets of failed charter schools?  (Assuming that Thales fails as a charter) it all goes to the school district!

BTW, Acadia Northstar is NOT a financing group -- they provide a bunch of services related to applying for and running charter schools, but the closest they come to funding is helping charters apply for grants.

To sum it up, your post amounts to: "Luddy owns a company that owns a lot of property in Eastern Wake County which, when developed, could make a lot of money."  None of it shows how charter money goes from taxpayers to the charter school to Bob Luddy or how Luddy profits off his non-profit schools.  That's just paranoid fantasy.  

Oh brother... Really, the

Oh brother... Really, the ol' boogey man tactic?!  LOL! And, you say you don't lie. You must really think your dwindling cadre of far left-wing Democrat constituents are idiots.

Cars View All
Find a Car
Go
Jobs View All
Find a Job
Go
Homes View All
Find a Home
Go

Want to post a comment?

In order to join the conversation, you must be a member of newsobserver.com. Click here to register or to log in.

About the blogger

T. Keung Hui covers Wake schools.
Advertisements