YouTube video of the day: DPS Super finalist Cordova profited from Denver charter deal

Adela Richard Blogger Adela Richard Blogger Adela Richard Blogger Adela Richard Blogger DPS Super finalist Cordova profited from Denver charter deal
read more: http://cli.re/dps #denver #denverpublicschools #selfdealingsusana #copols The sole finalist in the search for the Denver Public Schools Superintendent has personally profited from more than a hundred million dollars in charter school bond deals. Susana Cordova, the current DPS Deputy Superintendent, is married to Eric Duran, a Managing Director for Public Finance in the Denver office of D.A. Davidson. Davidson has participated in bonds where Denver tax dollars are going to a charter school, creating what observers call a substantial conflict of interest and a serious ethical violation, never before publicly disclosed. Cordova, both in her current position and as superintendent, would have considerable influence over Denver’s disposition of charter schools current and future, including schools that contribute directly to her personal bottom line. And in a world where charter school management organization have broad, sometimes nationwide ties, parsing the conflicts is incredibly difficult. An exhaustive review of publicly available charter school documents by the North Denver News revealed that Cordova’s husband Duran’s firm did an $8.3 million dollar deal with a DPS Charter School known as Highline. This revelation directly contradicts public statements by DPS Board member Barbara O’Brien, who falsely claimed DPS charters had not used Duran’s firm in a decade. The public finance side of the charter school movement has long been a shadowy prime power. The ability to take tax moneys from a school district and use them to back tax-exempt bonds has been a huge growth industry, allowing bankers with Duran, and attorneys like former DPS Board Member Mike Johnston, to create millions in profits off no more than a wispy promise of better schools for often impoverished families. Particularly in Colorado, where TABOR has significantly restricted public support for education, charter school debt can be issued with no public vote and little notification. Duran’s firm describes him as “one of the leading investment bankers in the charter school movement. He has completed financings in New Mexico, Arizona, Pennsylvania, Colorado, and Utah.” Charter school bonds, which get reviewed by ratings agencies, typically are rated BBB or BB according to a presentation made by Duran to the Colorado League of Charter Schools. That stunning admission means that many of the charter offerings are non-investment grade bonds, commonly known as junk bonds. The Colorado charter school finance industry essentially has become a taxpayer-subsidized junk bond superhighway. According to Duran’s presentation, 65% of all charter school bonds are either unrated or have junk bond status. Davidson as a firm trafficks on its political connections. “Recognized as a pioneer in the industry, (Davidson’s) support and involvement has been instrumental in crafting legislation in Texas, Colorado, Utah, New Mexico, Nevada, and Pennsylvania.” Having a pliant central administration could mean millions in fees for investment bankers, particularly as Denver Public Schools has more than $3 billion in outstanding debt. Duran’s firm often works with the Colorado Education and Cultural Facilities Authority. CECFA is the largest financier of charter schools in the U.S., having issued more than $700 million in bonds to support 50 charter schools in Colorado. Those bonds are all tax-exempt in Colorado, effectively creating a taxpayer subsidy for charter schools while reducing resources available for public schools.
via https://youtu.be/7jyTD20i23Q