blast from the past

Who is Dan Loeb? The billionaire investor who chairs Success Academy’s board has a checkered past

A screenshot taken from an American Enterprise Institute event published in 2014.

Success Academy’s board chairman and major charter school donor Daniel Loeb made headlines this month for posting a racially charged comment on Facebook that compared an African-American New York state senator with the Ku Klux Klan.

Loeb deleted the post, apologized, and left Success Academy and other charter school organizations scrambling to condemn his behavior — and explaining why he would remain on their boards.

Loeb represents a double-edged sword for charter schools. He is a wealthy and well-connected hedge fund manager, who has given millions of dollars to the charter school cause. But his actions force Success Academy CEO Eva Moskowitz and other charter leaders to make a calculation: Is his behavior a fair price to pay for the boost to their cause?

So far, they have apparently decided that it is. He has not yet been removed from Success’s board. Here are other things Eva Moskowitz has had to grapple with — which include a string of insensitive comments, but also his support for other progressive causes— as she has navigated her relationship with Loeb over the years:

He’s a nonpartisan ally — and antagonist. Loeb supports both Democrats and Republicans, and he also attacks candidates and lawmakers on both sides of the aisle. For example, he’s a major backer of New York Gov. Andrew Cuomo, but he has given to Republican mayoral candidate Nicole Malliotakis and supported Mitt Romney in past presidential campaigns. At the same time, he has lashed out at both Hillary Clinton and Barack Obama, often in withering and offensive terms, while also telling friends he would not vote for Donald Trump.

This isn’t the first offensive comment he’s made. Far from it, in fact. Loeb is fast-fingered on Facebook and frequently uses derogatory language to lash out at people who have made him unhappy. Here are a few of the examples that have been reported previously:

  • Another time Loeb compared the unions and their supporters to the KKK: Loeb posted the following on his Facebook page in 2016, first reported by Dealbreaker: “If you truly believe that education is the dividing line (and I concurr) then you must recognizer and take up the fight against the teachers union, the biggest single force standing in the way of quality education and an organization that has done more to perpetuate poverty and discrimination against people of color than the KKK.”
  • Using a derogatory term for people of color: Loeb once got into a fight with Fairfax Financial, a Canadian insurance company, which resulted in a lawsuit. Reported Reuters in 2011: “Fairfax’s filing quotes Loeb as saying he found the situation somewhat ironic because “the odds are much greater of being strung up by a Canadian Jew than a Canadian schwarze.” Loeb, who is Jewish, used “schwarze,” a derogatory Yiddish word for a black person, to describe Watsa, who is of Indian ancestry.”
  • Making light of domestic violence by comparing Obama to an abuser: In a 2010 letter to hedge fund managers who had supported Obama, Loeb wrote, according to CNBC: “I am sure, if we are really nice and stay quiet, everything will be alright and the President will become more centrist and that all his tough talk is just words; I mean he really loves us and when he beats us, he doesn’t mean it; he just gets a little angry.”
  • Making a xenophobic, homophobic attack against a rival: A damning 2013 Vanity Fair profile dredged up an anecdote from 1999, when Loeb was feuding with John Liviakis, a San Francisco public-relations executive. In an “imaginary monologue” in the voice of Liviakis, Loeb wrote under a pseudonym: “Then I will laugh at you fools for buying my shares and I will celebrate with a bottle of grappa, some fresh feta, and a nice young boy-just like in the old country.” Liviakis sued him for libel.

Loeb’s allies say his mean-spirited comments don’t necessarily reflect deep-seated beliefs. “I have known Dan to be a champion for underserved children who has worked tirelessly for years on their behalf,” said Jenny Sedlis, the head of StudentsFirstNY and a former deputy to Moskowitz, last week. “I know from first-hand experience the post he made does not reflect his true beliefs or the person he is.”

He has championed progressive causes in the past. Most notably, Loeb helped get gay marriage on the books in New York by throwing his influence into winning over Senate Republicans. This position put him in line with most Democrats and with Moskowitz, who has had wide support in New York City’s gay community for nearly 20 years. It also suggests that some of his internet posts, which have included seemingly homophobic comments, do not necessarily reflect the entirety of his beliefs.

It’s also not his first ethical challenge. Loeb had an account on the marital cheating site Ashley Madison, though he later said he did not use the site to engage or meet anyone on the site. He also has garnered criticism for the way he uses online message boards, where some business insiders say he plays fast and loose with federal regulations about the ways hedge fund operators can communicate with investors. And multiple accounts have him hitting a Cuban child with his car during a vacation in 2002, although he and his friends tell different versions of that story.

His friends and investors have their own problems. At Third Point Management, Loeb manages $17 billion and has a host of high-profile investors — including someone else who landed in hot water for speaking freely this summer. Anthony Scaramucci told Vanity Fair that Loeb was “one of the best investors of his generation. . . . He is the guy that would chew through the wallboard to create a return for his investors.” At the time, Scaramucci had invested about 10 percent of his own fund’s $500 million with Loeb. Now, of course, he’s better known as the man who served for 10 days as Trump’s White House communications director before resigning after making a profanity-laden public attack on other White House officials.

study up

Do community schools and wraparound services boost academics? Here’s what we know.

At Gompers Elementary Middle School in Detroit, where the city health department and the Vision To Learn nonprofit announced a partnership to provide free eye exams to 5,000 children in 2016. (Photo: Detroit Public Schools Community District)

New York City has been trying to help struggling schools by partnering them with nonprofits that provide counseling and health services. A Detroit school recently added a washing machine to make sure students have clean clothes. A Tennessee superintendent just petitioned the state for more funding to offer similar help to students and families.

The strategy, often referred to as the “community schools” model or “wraparound services,” has been embraced by districts across the country. It also makes intuitive sense to help kids in class by directly dealing with out-of-school factors, like poverty, that affect learning.

So do school-based efforts to counter the harmful effects of poverty lead to measurable academic gains?

Here’s what we know: Research shows that these efforts often do help learning, but in a number of cases they don’t seem to have any effect — and it’s not clear why efforts sometimes succeed and sometimes don’t.

The impact on academics is promising

Child Trends, a research group, recently compiled and analyzed the results of 19 rigorous studies that tried to isolate the effects of efforts to improve students’ mental and physical health, offer counseling services, add after-school programs, provide direct social services to families in need, and other similar programs.

Examples include the national Communities in Schools and Boston’s City Connects programs, which place site coordinators in schools to connect students and families to those resources.

When looking at the effect of wraparound services on grades and test scores, those 19 studies come to a mix of positive and inconclusive findings. Results were a bit more positive in math than in English, which is common in education research.

There was also variation within programs, like Communities in Schools, which has become the most evaluated wraparound-style initiative. Separate studies have shown that the program produced test score gains in Chicago and Wichita, but not Austin or Jacksonville. A recent national evaluation focusing on Texas and North Carolina found a mix of outcomes.

One notable finding: across the 19 studies, there are virtually no cases where students appear to do worse thanks to the programs, the review notes. The researchers conclude that the approach is “promising but not yet proven.”

Not included in the review were a few initial evaluations of New York City’s community schools-based turnaround program, which included extending the school day. One analysis found that the program actually seemed to reduce high school graduation rates relative to similar schools that did not participate, and had no effects on elementary or middle school test scores. But another study using a different approach found that the initiative did lead to moderate test score gains.

The impact on attendance, behavior, and other outcomes is inconsistent

One surprising aspect of the research on these wraparound services: there aren’t consistent findings about how the programs affect things other than academics.

In a handful of studies in the Child Trends that examined other outcomes, most found no effects on students’ attendance, behavior, engagement in school, or social-emotional outcomes. Still, a few studies found positive effects and, again, negative ones were quite rare.

One recent paper, not included in the Child Trends review, found that a wraparound initiative in Massachusetts led to substantial gains in students’ math and English test scores. That program made no apparent impact on students’ attendance, their likelihood of being held back a grade, or suspension rates, though.

What makes a program work?

Frustratingly for policymakers, it’s not clear.

The Child Trends report suggests providing community schools with substantial resources over several years is most likely to lead to success. But it concludes that there’s a “lack of evidence regarding the concrete elements that make different models successful or how they must be implemented.”

Meanwhile, there appears to be stronger evidence for the academic benefits of direct anti-poverty programs that are separate from schools. The earned income tax credit, health insurance, child tax credit, food stamps, and simply giving cash to low-income families have all been linked to better outcomes in schools for children.

Finally, many would argue these sorts of wraparound services and anti-poverty programs are worthwhile regardless of students’ short-term academic gains.

Elaine Weiss, who led a group that supported wraparound services, previously told Chalkbeat that the approaches have intrinsic value.

“Don’t we all agree that having kids who have access to mental and physical health care, regular nutritious meals, and quality, safe after-school and summer programs is inherently a good thing?” she asked.

Hello Again

Debora Scheffel chosen by acclamation to fill State Board of Ed vacancy

State Board of Education member Debora Scheffel at a campaign event in 2016. (Photo by Nic Garcia/Chalkbeat)

A Republican vacancy committee unanimously selected Debora Scheffel to fill the opening left by Pam Mazanec on the State Board of Education.

Mazanec, a staunch defender of parental rights and school choice who represented the 4th Congressional District, resigned at the end of January to focus on her other obligations. Scheffel previously represented the 6th Congressional District on the board but lost that seat in 2016 to Democrat Rebecca McClellan.

McClellan’s narrow victory gave control of the board to Democrats for the first time in 46 years. Scheffel, who serves as dean of education at Colorado Christian University, moved to Douglas County, and ran unsuccessfully for school board there in 2017.

Scheffel’s selection does not change the balance of power on the state board because she replaces another Republican. Scheffel faced no opposition at the vacancy committee meeting, which took place Saturday in Limon.

Scheffel has said she wants to continue Mazanec’s work on behalf of rural schools and in support of parent and student choice, as well as work to protect student data privacy, a cause she previously championed on the board.

The district takes in all of the eastern Plains, as well as the cities of Longmont, Greeley, and Castle Rock.