The owner of a Philadelphia check-cashing service admitted yesterday in federal court in Camden that he helped launder up to $600,000 that had been stolen from Cooper Hospital-University Medical Center by corrupt executives.
Thomas J. Damadio, 47, the owner of B & K Check Cashing in the 4200 block of Frankford Avenue in the northeast section of the city, said he took part in currency transactions exceeding $10,000 with the executives and did not file the required federal reports.
Since the 1980s, financial institutions have been required to report large currency transactions, as the government sought to crack down on drug-dealing and money-laundering.
Damadio told U.S. District Judge Joseph H. Rodriguez that he cashed large checks for Cooper executives John M. Sullivan and John H. Crispo Jr. in 1991 and 1992 and did not submit the written documents.
He also pleaded guilty to filing false income-tax returns in 1991 and 1992 and avoiding taxes on money the Cooper executives paid him to give them cash for hospital checks in their embezzlement scheme.
Damadio, who lives in Medford in Burlington County, was released on a $50,000 personal recognizance bond. He is to be sentenced on April 18.
Sullivan and Crispo and five associates, so far, were accused of stealing $4 million from the hospital.
Crispo has since died. Sullivan, 47, who was executive vice president of finance, is serving 55 months in federal prison.
Assistant U.S. Attorney Paul H. Zoubek said Sullivan and Crispo would send batches of checks to the cashing service.
The checks would be drawn on Cooper Hospital accounts and be made out to bogus collection agencies and fabricated vending companies.
Damadio said in court yesterday that at times he personally delivered large amounts of cash to Sullivan’s $700,000 mansion in Moorestown and to Crispo’s sprawling horse farm in Vineland.
By Maureen Graham and Frederick Cusick, INQUIRER STAFF WRITERS
POSTED: June 15, 1997
Cooper Hospital paid a total of $8.2 million in 1993-1996 to private businesses in which two of its board members had a financial interest. The contracts were approved by a 27-member board, 17 of whose members or their businesses or relatives were listed by the hospital as having business affiliations with Cooper in 1996.
According to Cooper Hospital’s income-tax returns – which are public record because of the hospital’s nonprofit status – the firms of the chairman of the board of trustees and the former chairman of the hospital’s foundation board have been among the highest-paid professional contractors doing business with the hospital. Both board members’ law firms had business relationships with the hospital decades before the two men went on the board.
Cooper board chairman Peter Driscoll is a senior partner in the Haddonfield law firm of Archer & Greiner. The hospital’s tax records show that Cooper paid Archer & Greiner a total of $2.1 million in legal fees for 1993, 1995 and 1996. Archer & Greiner’s fees for 1994 were not available.
Driscoll declined requests for an interview. Peggy Leone, a hospital spokeswoman, said Driscoll recuses himself on issues involving his firm.
Cooper board member George Weinroth – who also chaired Cooper’s foundation board, its fund-raising arm – had a major interest in two businesses that were paid $6.1 million by the hospital from 1993 through 1996 for collecting money to pay for medical services. Also, Weinroth’s wife is employed as a billing specialist in the hospital’s department of pediatrics. Her salary was unavailable.
Cooper officials and Weinroth have said in interviews that the contracts were proper. Weinroth said his businesses did the work for which they were paid. He said he always recuses himself “even from any conversations” regarding his businesses.
The Camden hospital, which is formally known as Cooper Hospital- University Medical Center, paid various board members or their businesses for legal work, bill collections, banking, architectural and other services. Some board members work in salaried positions at the hospital; others have relatives employed by the institution, according to the tax returns.
It is not uncommon or illegal for board members at teaching hospitals to do business with their own hospitals, or their relatives or companies to do so.
The Cooper board met on June 2 and discussed the financial ties of board members to the hospital. In interviews, two current and two former board members said they were troubled by the issues raised in the board’s dealings.
Hospital officials said the board members’ businesses provided services needed by the hospital and the charges were fair.
The Internal Revenue Service requires that a nonprofit hospital disclose in its tax returns each year the names of board members who have business affiliations with the hospital. Before 1994, Cooper did not make such disclosures in its tax returns. Kevin Halpern, president and CEO of Cooper Hospital, has said the information had been left off in error, and he blamed the hospital’s former accountants for the mistake. Since 1994, the hospital has provided the information to the IRS.
Cooper officials also supplied lists concerning board members’ business affiliations for 1993 and 1996 to The Inquirer, although Cooper’s 1996 tax returns have not yet been filed.
Hospital officials have not provided a total dollar figure for the amount of money paid to the businesses of its board members or their relatives. Under law, the hospital need only reveal how much was paid to its five highest-paid contractors for professional services. The Archer & Greiner law firm was put in that category in 1993 and 1995. Weinroth’s law firm – Greenberg, Schmerelson & Weinroth – was among the top five for all three years. Another company in which Weinroth was a part-owner and CEO, C-Care, was listed in 1994 and 1995.
In an interview, hospital board member Weinroth described his contract work with Cooper.
“I am an entrepreneur,” he said, describing how he formed C-Care. He said that in the early 1990s New Jersey was revising its reporting requirements for hospitals providing charity care to the working poor. Under New Jersey’s charity care laws, people otherwise ineligible for Medicaid could receive some medical benefits from the state if they met certain criteria. Weinroth, with seven others, saw an opportunity for a new business, he said.
C-Care, located in the 500 block of Cooper Street in Camden, was designed to identify those patients and fill out the paperwork necessary to obtain state reimbursement to the hospital for their care. Weinroth said C-Care was paid between 3.5 and 8.5 percent of what it collected for Cooper.
According to hospital records, Cooper Hospital paid C-Care $1,170,703 in 1994; $531,858 for 1995; $456,080 for 1996.
C-Care has employed as many 16 people, Weinroth said, most of them retired police officers.
He said he believed the C-Care contracts with the hospital were not put out for public bid. Few companies do the type of work that C-Care does, he said, and his firm received the contract after presenting a proposal to the hospital. He said he began C-Care with five clients other than Cooper.
Weinroth said he sold C-Care last year. He still works for the company under an employment contract.
Weinroth also said his law firm collects unpaid hospital bills.
In 1993, Cooper Hospital paid the firm $1,175,355 for billing collection services; in 1994, $1,600,135; in 1995, $628,757; and in 1996, $591,500. Weinroth’s law firm began providing services for the hospital in the mid-1970s. Weinroth joined the hospital foundation board in 1992, and joined the board of trustees in 1995.
Cooper president Halpern has said Cooper contracts out bill collection work so that it can compare the success rate of different services.
According to the income-tax reports, Archer & Greiner, the law firm in which board chairman Driscoll is a partner, received these fees from Cooper Hospital: $584,395 in 1993; $803,071 in 1995; and $742,015 in 1996. According to the income tax reports and information supplied by the hospital, “members of the law firm, other than Mr. Driscoll, provide legal services to Cooper Hospital.”
According to Cooper Hospital officials, Archer & Greiner has been doing the hospital’s legal work for more than 40 years. Driscoll has been chairman of the hospital board since 1986.
Cooper’s records show that Cooper president Halpern serves on the board of directors for CoreStates/NJ National Bank. The records also show that Thomas Bracken, a market president of CoreStates/NJ National Bank, is a board member at Cooper Hospital. CoreStates/NJ National Bank provided banking services for Cooper in 1993, 1994, 1995 and 1996.
Halpern was paid $417,718 in 1995 as a salary from Cooper, and is currently paid a fee of $15,000 a year and $500 per meeting by CoreStates to serve on CoreStates board, according to a spokeswoman for the bank. Halpern declined requests for an interview.
In an interview, Bracken said CoreStates had served Cooper since well before he became a board member. In addition, he said, he recuses himself from any board discussions of banking business at both the hospital and at the bank.
George E. Norcross 3d, former chairman of the Camden County Democratic Party and chief executive officer of Keystone National Insurance Co. Inc., serves on the Cooper Hospital board of directors. In 1993, 1994 and 1995, his business was paid by Cooper for providing insurance-brokerage services to the hospital during those three years. In an interview, Norcross said he received only a “minimal” amount of money. He would not say how much he earned in commissions or fees from the hospital. Norcross, who is still a board member, did no business with the hospital in 1996.
Of the 27 Cooper board members in 1996, 17 were listed by Cooper as having business affiliations with the hospital or relatives or businesses that do. In addition to Driscoll, Weinroth, Halpern and Bracken, the hospital also lists:
* Joseph Tarquini of Tarquini Associates, an architectural firm that provided architectural services to Cooper for the years 1993, 1994, 1995 and 1996, according to the forms. Tarquini did not return several calls requesting an interview.
* Edward D. Viner, a full-time physician at Cooper. His daughter also is an employee, according to the tax returns. In a statement released through his office, Viner said his daughter works part-time doing secretarial work for Cooper.
* Michael Cresci, a trustee of H.A. DeHart, a trucking company in Thorofare that provided services to Cooper. Cresci did not respond to requests for an interview.
* Jeannine LaRue, whose niece is employed in Cooper’s Human Resources Department. LaRue said in an interview that her niece works at the hospital part-time.
* Mark Pello, medical staff president at Cooper. His wife is a part-time employee in the department of surgery. In an interview, Pello said the information supplied by Cooper was correct, and he declined to comment further.
* Barbara Schraeder, whose husband is a full-time employee of Cooper. Schraeder’s term on the board expired in March 1996. In a statement, she said the information supplied by Cooper was correct, and she declined further comment.
* Patrick Abiuso, a full-time physician at Cooper. His wife is a part-time employee in the Department of Medicine. In an interview, Abiuso said that the medical staff of the hospital voted him as the medical representative to serve on the board in 1993, when he was in private practice. After that, he said, he and his wife were hired as employees.
* Miller Biddle, a full-time physician at Cooper. His term expired in March 1996. His wife is the hospital’s assistant vice president of marketing. The Biddles did not return phone calls requesting interviews.
* Dr. Steven Levine, a former partner in a company that owned an office building that Cooper Hospital purchased. In an interview, Levine said he also receives a salary for performing part-time medical services for the hospital. His term on the board expired in September 1996.
* Carolyn Brann, president of the Women’s Board, which runs three small retail businesses whose funds go to Cooper. Brann’s husband is an employee of Johnson & Johnson, which sells pharmaceuticals and medical products to Cooper. In an interview, Brann said that neither she nor her husband had made any money as a result of her role on the board. She said she worked for the hospital as a volunteer.
* Joan Davis, chairperson of CamCare, an entity related to Cooper Hospital that provides health services to Camden residents, with fees on a sliding-scale basis. She did not return phone requests for an interview.
* Dr. Harold Paz, dean of the University of Medicine and Dentistry of New Jersey/Robert Wood Johnson Medical School which has an institutional affiliation with Cooper.
* Gary Lamson, vice president of mental health services of the University of Medicine and Dentistry of New Jersey, and acting president and CEO of University Healthcare Corp.
In a statement released by the University of Medicine and Dentistry of New Jersey, Stuart Goldstein said that Cooper Hospital bylaws require that two board members come from UMDNJ. Paz and Lamson are those designees, the statement said. They are not paid for serving on the board.
CAMDEN, N.J. — Josephine Skinner’s grandson Dequan was 11 or 12 years old a few summers ago when she says he had a run-in with a Camden police officer who neighbors claim terrorized them for years.
As the youth crossed the street to buy a soda at a store, she said Officer Jason Stetser — known on the streets as “Fat Face” — sprang from his cruiser.
“He grabbed my grandson and said he had $100 of stuff on him,” Skinner said. “They tried to lock him up.”
For years, residents say some police officers have bullied them in this impoverished city, making cases by planting drugs on suspects, falsifying police reports, and conducting searches without warrants. Now four officers, including Stetser, are being investigated by a federal grand jury.
And prosecutors say they’ve had to drop charges or vacate convictions in 185 criminal cases because of possibly corrupt police work — meaning scores of criminals could end up returning to drug-infested streets.
Another of Skinner’s grandchildren, 15-year-old Artice Skinner, said he witnessed the episode between Stetser and Dequan and saw Stetser hold out his hand, overflowing with crack cocaine that the police officer said came from Dequan’s pocket.
Skinner said Dequan was released after an aunt explained that he wasn’t the neighborhood child police were looking for.
“The cops were more of a problem than the crime was,” said Josephine Skinner.
Their Waterfront South neighborhood has breathed a little easier since November, when Stetser and at least three other officers were taken off the streets as authorities began their investigation.
Stetser’s lawyer, Richard Madden, did not return a call.
Among those suspended was 29-year-old patrolman Kevin Parry. On March 19, he admitted in court that he stole drugs from some suspects, planted them on others, bribed prostitutes with drugs for information, conducted searches without warrants, lied on police reports and in testimony, and roughed up suspects. He acknowledged 50-70 acts of police misconduct from May 2007 to October 2009.
Residents say it was not uncommon for some officers to greet locals by punching them, using force to intimidate. The threat of criminal charges was the main police currency.
In Waterfront South, lovingly tended row homes sit uneasily alongside crumbling empty ones and monstrous warehouses loom beyond back yards. The stench from a nearby sewage plant hangs in the air. Daffodils have begun to bloom in a trash-strewn vacant lot.
A church group has painted poetry on sheets of plywood nailed over windows of vacant buildings — like Pablo Neruda’s lines, “I want to do with you what the spring does with cherry trees.”
The same day Parry pleaded guilty last month, authorities spoke publicly about the investigation for the first time. Camden County Prosecutor Warren Faulk said several officers were being investigated by the federal grand jury. Only Parry has been criminally charged.
Faulk also revealed that 185 cases had been compromised because of possibly corrupt police work. It’s not that all the suspects weren’t guilty, he said, but that without using the reports of the officers, there was no more credible evidence.
Lawyers have now begun filing claims notifying the city of their intention to sue based on the actions of Parry and the other officers.
The investigation has cast doubt — at least in Josephine Skinner’s neighborhood — over even more drug cases.
Bodega owner Manuel Torres says that he thinks his sons, Jonathan and Sterling, were set up by police for their drug arrests a few years ago. Neither has had his conviction vacated.
The scandal is the latest blow to crimefighting in a city that can ill afford it.
In report after report, Camden ranks as one of the nation’s most dangerous cities. Known as the drug marketplace for locals and suburbanites, the city has a constant presence of U.S. Marshals and state police, along with city police.
But, there have been some promising signs. The murder rate began falling in the summer of 2008 when police reworked their schedules and strategies. They started using more sophisticated data to figure out when and where crime was highest. They used that information to make sure they had more officers on the streets at those times.
Residents of Waterfront South said their problems with the police predated those changes.
Among those whose drug convictions were vacated in December was Josephine Skinner’s 46-year-old son, Mark. He said he had been arrested in November 2005, just weeks after he was released from jail on a previous drug-dealing conviction.
Mark Skinner said that 2005 arrest came as he sat on the stoop in front of his mother’s home, and that police — including Stetser — slammed him against the wall. Police failed to find drugs on him or in the house, then showed up with a trash bag full of small orange bags of crack worth about $4,000.
He said he pleaded guilty to get a three-year sentence, rather than risk up to 20 years with no chance of parole for a decade if he’d been found guilty at trial.
“I did three years for nothing,” he said as he stood on the corner of Broadway and Viola Streets, near a new maritime museum — and a well-known drug spot.
The neighborhood has plenty of stories about problems caused by the police in recent years.
Jamar Dorsey, then a 20-year-old student at Camden County College, said Stetser planted marijuana on him in 2007 and threatened him with drug charges if he didn’t lead Stetser to more drugs or weapons.
When Dorsey said he didn’t know where drugs could be found, he was charged.
He pleaded guilty to drug possession, taking three years of probation instead of risking a stiffer penalty at trial — even though it meant losing his college financial aid and dropping out of college.
“Who were they going to believe?” Dorsey said. “Me or him?”
Another neighbor, Michelle Kellum, said her disabled son, Gregory, was 15 when he went to a corner store with money from his disability check. Stetser threw him in the back of a police car and took the money, she said, a little more than $100.
Kellum said the officer let her son go after she showed a receipt to prove where the money came from.
“Fat Face had everybody terrified,” she said. “You wouldn’t see anybody walking out here” when he was around.
And in the end, she said, the questionable police work failed its main objective — taking drugs off the streets.
ACLU filed suit against police department in 2010 for planting drugs on a Camden resident
FOR IMMEDIATE RELEASE
CONTACT: (212) 549-2666; media@aclu.org
NEWARK – The City of Camden has agreed to pay $3.5 million in damages to 88 people whose convictions were overturned because of widespread corruption in the Camden Police Department. The settlement stems from a series of lawsuits filed against Camden Police in federal district court and state superior court over the last two years, after five officers were charged with a number of federal civil rights violations from conduct involving evidence planting, fabrication of reports and evidence, and perjury.
The American Civil Liberties Union and ACLU of New Jersey filed one of those lawsuits on behalf of Joel Barnes, a Camden resident who was arrested in 2008 after police planted drugs on him.
“This prolonged campaign to plant evidence on innocent people was a true stain on Camden Police and represents one of the most serious forms of police corruption,” said Alexander Shalom, policy counsel for the ACLU-NJ. “Unfortunately, the systems that are designed to prevent corruption and protect the public eroded and allowed rogue officers to operate unabated for years.”
The Camden City Council approved the settlement at its meeting this week. The court still needs to approve the settlement. No date has been set for the court to review the agreement.
Three of the officers involved in the conspiracy, Jason Stetser, Kevin Parry and Dan Morris pleaded guilty in federal court to corruption. Officer Antonio Figueroa was convicted by a jury, and officer Robert Bayard was acquitted. The officers’ actions went undetected because of a breakdown in the department’s Internal Affairs unit, which was understaffed and used antiquated systems.
As a result, the 88 plaintiffs in the cases served a combined 109 years in prison on their overturned convictions. The corruption has also cost the city millions of dollars in legal fees.
“Because of the actions of these officers, and the Camden Police Department’s failure to identify and stop the corruption within its ranks, these men and women were deprived of their liberty and will never recoup the time they lost from their loved ones,” said Jason D. Williamson, staff attorney at the ACLU Criminal Law Reform Project and co-counsel on the Barnes case. “We hope that other police departments will take note of what went wrong in Camden and take measures to prevent it from happening in their departments.”
Barnes, 30, a lifelong Camden resident, stopped by a friend’s house on Aug. 2, 2008 to help set up for a barbecue later that day. Police raided the home in search of illegal drugs. Barnes, along with other occupants in the house, was herded into the kitchen. An officer slipped handcuffs on Barnes and emptied Barnes’s pockets. There were no drugs. When officers repeatedly asked where the drugs were, Barnes answered truthfully, saying he did not know.
Figueroa pulled out a bag containing drugs and said, “Tell us where the shit’s at and we’ll make this disappear.”
When Barnes insisted he did not know if there were drugs in the house, the police supplied the incriminating evidence and charged him with possession with intent to distribute. On Feb. 23, 2009, fearing his testimony would not be believed, and facing the prospect of even more jail time if convicted at trial, he pleaded guilty to a crime he did not commit.
While in prison, Barnes read about the Camden corruption case and recognized the names of the officers involved. Figueroa and Bayard were among the officers who were present when Barnes was arrested.
On Feb. 2, 2010, the New Jersey Superior Court vacated Barnes’s conviction. Barnes was finally freed on June 8, 2010, with the help of the ACLU, but only after serving 418 days in prison.
Cory Booker, Chris Christie, and Mark Zuckerberg had a plan to reform Newark’s schools. They got an education.
May 19, 2014 ISSUE
BY DALE RUSSAKOFF
I. THE PACT
Late one night in December, 2009, a black Chevy Tahoe in a caravan of cops and residents moved slowly through some of the most dangerous neighborhoods of Newark. In the back sat the Democratic mayor, Cory Booker, and the Republican governor-elect of New Jersey, Chris Christie. They had become friendly almost a decade earlier, during Christie’s years as United States Attorney in Newark, and Booker had invited him to join one of his periodic patrols of the city’s busiest drug corridors.
The ostensible purpose of the tour was to show Christie one of Booker’s methods of combatting crime. But Booker had another agenda that night. Christie, during his campaign, had made an issue of urban schools. “We’re paying caviar prices for failure,” he’d said, referring to the billion-dollar annual budget of the Newark public schools, three-quarters of which came from the state. “We have to grab this system by the roots and yank it out and start over. It’s outrageous.”
Booker had been a champion of vouchers and charter schools for Newark since he was elected to the city council, in 1998, and now he wanted to overhaul the school district. He would need Christie’s help. The Newark schools had been run by the state since 1995, when a judge ended local control, citing corruption and neglect. A state investigation had concluded, “Evidence shows that the longer children remain in the Newark public schools, the less likely they are to succeed academically.” Fifteen years later, the state had its own record of mismanagement, and student achievement had barely budged.
Christie often talked of having been born in Newark, and Booker asked his driver to take a detour to Christie’s old neighborhood. The Tahoe pulled to a stop along a desolate stretch of South Orange Avenue, where Christie said he used to take walks with his mother and baby brother. His family had moved to the suburbs in 1967, when he was four, weeks before the cataclysmic Newark riots. An abandoned three-story building, with gang graffiti sprayed across boarded-up windows, stood before them on a weedy, garbage-strewn lot. Dilapidated West Side High School loomed across the street. About ninety per cent of its students qualified for free or reduced-price lunches, and barely half of the freshmen made it to graduation. Three West Side seniors had been shot and killed by gangs the previous school year, and the year before that, on a warm summer night, local members of a Central American gang known as MS-13, wielding guns, a machete, and a steak knife, had murdered three college-bound Newark youths, two of them from West Side. Another West Side graduate had been badly maimed.
In the back seat of the S.U.V., Booker proposed that he and Christie work together to transform education in Newark. They later recalled sharing a laugh at the prospect of confounding the political establishment with an alliance between a white suburban Republican and a black urban Democrat. Booker warned that they would face a brutal battle with unions and machine politicians. With seven thousand people on the payroll, the school district was the biggest public employer in a city of roughly two hundred and seventy thousand. As if spoiling for the fight, Christie replied, “Heck, I got maybe six votes in Newark. Why not do the right thing?”
So began one of the nation’s most audacious exercises in education reform. The goal was not just to fix the Newark schools but to create a national model for how to turn around an entire school district.
The abysmal performance of schools in the poorest communities has been an escalating national concern for thirty years, with universities, governments, and businesses devoting enormous resources to the problem. In the past decade, a reform movement financed by some of the nation’s wealthiest philanthropists has put forward entrepreneurial approaches: charter schools, business-style accountability for teachers and principals, and merit bonuses for top performers. President Obama and Secretary of Education Arne Duncan created Race to the Top, a $4.3-billion initiative to induce states to approve more charter schools and to rate teachers based on student performance.
Christie’s response to Booker—“Why not do the right thing?”—reflected the moral tone of the movement. Reformers compared their cause to the civil-rights movement, aware that many of their key opponents were descendants of the old civil-rights establishment: unions and urban politicians determined to protect thousands of public jobs in cities where secure employment was rare. Decades of research have shown that experiences at home and in neighborhoods have far more influence on children’s academic achievement than classroom instruction. But reformers argued that well-run schools with the flexibility to recruit the best teachers could overcome many of the effects of poverty, broken homes, and exposure to violence. That usually meant charter schools, which operated free of the district schools’ large bureaucracies and union rules. “We know what works,” Booker and other reformers often said. They blamed vested interests for using poverty as an excuse for failure, and dismissed competing approaches as incrementalism. Education needed “transformational change.” Mark Zuckerberg, the twenty-six-year-old head of Facebook, agreed, and he pledged a hundred million dollars to Booker and Christie’s cause.
Almost four years later, Newark has fifty new principals, four new public high schools, a new teachers’ contract that ties pay to performance, and an agreement by most charter schools to serve their share of the neediest students. But residents only recently learned that the overhaul would require thousands of students to move to other schools, and a thousand teachers and more than eight hundred support staff to be laid off within three years. In mid-April, seventy-seven members of the clergy signed a letter to Christie requesting a moratorium on the plan, citing “venomous” public anger and “the moral imperative” that people have power over their own destiny. Booker, now a U.S. senator, said in a recent interview that he understood families’ fear and anger: “My mom—she would’ve been fit to be tied with some of what happened.” But he characterized the rancor as “a sort of nadir,” and predicted that in two or three years Newark could be a national model of urban education. “That’s pretty monumental in terms of the accomplishment that will be.”
Booker was part of the first generation of black leaders born after the civil-rights movement. His parents had risen into management at I.B.M., and he grew up in the affluent, almost all-white suburb of Harrington Park, about twenty miles from Newark. Six feet three, gregarious, and charismatic, Booker was an honors student and a football star. He graduated from Stanford and went on to Oxford as a Rhodes Scholar and then to Yale Law School. Ed Nicoll, a forty-year-old self-made millionaire who was studying law at Yale, became one of his close friends. He recalled Booker telling inspirational stories about his family during abstract class discussions, invariably ending with a point about social justice. “He got away with it and he enchanted everyone from left to right,” Nicoll said. “In a class where everybody secretly believed they’d be the next senator or the next President of the United States, it was absolutely clear that Cory had leadership written all over him.”
Instead of pursuing lucrative job prospects, Booker worked as a lawyer for Newark tenants; he was paid by a Skadden fellowship in 1997. He lived in low-income housing in an area of the Central Ward that was riddled with drugs and crime, and he got to know community activists and members of the national media. Later, CBS News and Time featured him staging hunger strikes to demand more cops in drug corridors. He ran for city council with enthusiastic support from public-housing tenants. Nicoll took time off before going back to finance to help Booker raise money. His advice was simple: tell wealthy donors your own story. Over lunch at Andros Diner, Booker told me that Nicoll taught him an invaluable lesson: “Investors bet on people, not on business plans, because they know successful people will find a way to be successful.”
Booker raised more than a hundred and forty thousand dollars, an unheard-of sum for a Newark council race. A Democratic operative said of enthusiasts on Wall Street, “They let Cory into their boardrooms and offices, introduced him to people they worked with in hedge funds. As young finance people, they looked at a guy like Cory at this stage as if they were buying Google at seventy-five dollars a share. They were talking about him being the first black President before he even got elected to the city council, and they all wanted to be a part of that ride.” In the spring of 1998, Booker, at the age of twenty-nine, edged out the four-term councilman George Branch.
“This better be important.”
The school-reform movement, then dominated by conservative white Republicans, saw Booker as a valuable asset. In 2000, he was invited to speak at the Manhattan Institute, in New York. He was an electrifying speaker, depicting impoverished Newark residents as captives of nepotistic politicians, their children trapped in a “repugnant” school system. “I define public education not as a publicly guaranteed space and a publicly run, publicly funded building where our children are sent based on their Zip Code,” he said. “Public education is the use of public dollars to educate our children at the schools that are best equipped to do so—public schools, magnet schools, charter schools, Baptist schools, Jewish schools.”
Booker told me that the speech launched his national reputation: “I became a pariah in Democratic circles for taking on the Party orthodoxy on education.” But he gained “all these Republican donors and donors from outside Newark, many of them motivated because we have an African-American urban Democrat telling the truth about education.” He became a sought-after speaker at fund-raisers for charter and voucher organizations, including a group of hedge-fund managers who ultimately formed Democrats for Education Reform. They supported Democrats who backed reforms opposed by teachers’ unions, including the 2004 U.S. Senate candidate from Illinois, Barack Obama.
There was no question that the Newark school district needed reform. For generations, it had been a source of patronage jobs and sweetheart deals for the connected and the lucky. As Ross Danis, of the nonprofit Newark Trust for Education, put it, in 2010, “The Newark schools are like a candy store that’s a front for a gambling operation. When a threat materializes, everyone takes his position and sells candy. When it recedes, they go back to gambling.”
The ratio of administrators to students—one to six—was almost twice the state average. Clerks made up thirty per cent of the central bureaucracy—about four times the ratio in comparable cities. Even some clerks had clerks, yet payroll checks and student data were habitually late and inaccurate. Most school buildings were more than eighty years old, and some were falling to pieces. Two nights before First Lady Michelle Obama came to Maple Avenue School, in November, 2010, to publicize her Let’s Move! campaign against obesity—appearing alongside Booker, a national co-chair—a massive brick lintel fell onto the front walkway. Because the state fixed only a fraction of what was needed, the school district spent ten to fifteen million dollars a year on structural repairs—money that was supposed to be used to educate children.
What happened inside many buildings was even worse. In a third of the district’s seventy-five schools, fewer than thirty per cent of children from the third through the eighth grade were reading at grade level. The high-school graduation rate was fifty-four per cent, and more than ninety per cent of graduates who attended the local community college required remedial classes. Booker was elected mayor in 2006, and, with no power over district schools, he set out to recruit charter schools. He raised twenty million dollars for a Newark Charter School Fund from several Newark philanthropies; from the Gates, Walton, Robertson, and Fisher foundations; and from Laurene Powell Jobs. With his encouragement, Newark spawned some of the top charter schools in the country, including fifteen run by Uncommon Schools and KIPP. Parents increasingly enrolled children in charters—particularly in wards with the highest concentrations of low-income and black residents, which had the worst public schools. Many district schools were left with a preponderance of the students who most needed help.
It wasn’t always this way. The Newark public schools had a reputation for excellence well into the nineteen-fifties, when Philip Roth graduated from the predominantly Jewish Weequahic High School and Amiri Baraka (then LeRoi Jones), the late African-American poet, playwright, and revolutionary, attended the predominantly Italian-American Barringer High School. But Newark’s industrial base had been declining since the Depression, and it collapsed in the sixties, just as the migration of mostly poor African-Americans from the rural South reached its peak. Urban renewal, which was supposed to revive inner cities, displaced a higher percentage of poor residents in Newark than in any other city. As slums and dilapidated buildings were bulldozed to make way for office towers and civic plazas, displaced families were concentrated in five large housing projects in the city’s Central Ward. The program became known, there and elsewhere, as “Negro removal.”
Middle-class whites fled the city. Interstate 280, which linked downtown to the western suburbs and had an exit for Livingston, where the Christies moved, decimated stable Newark neighborhoods. Within a decade, the city’s population shifted from two-thirds white to two-thirds black. According to Robert Curvin, the author of the forthcoming book “Inside Newark,” it was the fastest and most tumultuous turnover of any American city except Detroit and Gary, Indiana. Remaining white students transferred out of largely African-American schools, where substitutes taught up to a quarter of the classes. “In schools with high Negro enrollments,” the N.A.A.C.P. reported, “textbooks were either not available or so outmoded and in such poor condition as to be of no value.” Some classrooms contained nothing but comic books.
Many in Newark still refer to the 1967 riots as “the rebellion.” A flagrantly corrupt and racist Italian-American political machine controlled City Hall and the school district. The mayor, Hugh Addonizio, previously a U.S. representative, said, when he returned, “There’s no money in Washington, but you can make a million bucks as the mayor of Newark.” In 1970, he was convicted, with four others, of having extorted $1.4 million from city contractors. The next two mayors, Kenneth Gibson and Sharpe James, both African-American, also became convicted felons. Booker is the first Newark mayor in fifty years not to be indicted.
In 1967, Governor Richard Hughes appointed a committee to investigate the causes of the riots. The report concluded of urban renewal, “In the scramble for money, the poor, who were to be the chief beneficiaries of the programs, tended to be overlooked.” And, because of “ghetto schools,” most poor and black children “have no hope in the present situation. A few may succeed in spite of the barriers. The majority will not. Society cannot afford to have such human potential go to waste.”
The legislature rejected a bid by Hughes to take over the schools, and the cycle of neglect and corruption continued. In 1994, Department of Education investigators found that the district was renting an elementary school infested with rats and containing asbestos and high levels of lead paint. The school board was negotiating to buy the building, worth about a hundred and twenty thousand dollars, for $2.7 million. It turned out to be owned, through a sham company, by two school principals prominent in Italian-American politics. (They were indicted on multiple charges and acquitted.) In a series of rulings in the nineties, the state Supreme Court found that funding disparities among school districts violated the constitutional right to an education for children in the poorest communities. The legislature was instructed to spend billions of dollars to equalize funding. In 1995, the state seized control of the Newark district. Christie, though, has allocated less than is required for low-income districts, pleading financial constraints.
Decades after the Hughes report, Newark’s education system was still dominated by “ghetto schools.” Forty per cent of babies born in Newark in 2010 received inadequate prenatal care or none at all—disadvantaged before drawing their first breath. Forty-four per cent of children lived below the poverty line—about twice the national rate—and many were traumatized by violence. Ninety-five per cent of students in the school district were black or Latino.
The history of abandonment and failed promises sowed a deep sense of isolation and a wariness of outsiders. “Newark suffers from extreme xenophobia,” Ronald C. Rice, a city councilman, said. “There’s a feeling that whites abandoned the city after the rebellion but there will come a time they will come back and take it away from us.”
Early in the summer of 2010, Booker presented Christie with a proposal, stamped “Confidential Draft,” titled “Newark Public Schools—A Reform Plan.” It called for imposing reform from the top down; a more open political process could be taken captive by unions and machine politicians. “Real change has casualties and those who prospered under the pre-existing order will fight loudly and viciously,” the proposal said. Seeking consensus would undercut real reform. One of the goals was to “make Newark the charter school capital of the nation.” The plan called for an “infusion of philanthropic support” to recruit teachers and principals through national school-reform organizations; build sophisticated data and accountability systems; expand charters; and weaken tenure and seniority protections. Philanthropy, unlike government funding, required no public review of priorities or spending. Christie approved the plan, and Booker began pitching it to major donors.
In the previous decade, the foundations of Microsoft’s Bill Gates, the California real-estate and insurance magnate Eli Broad, the Walton family (of the Walmart fortune), and other billionaires from Wall Street to Silicon Valley had come to dominate charitable funding to education. Dubbed “venture philanthropists,” they called themselves investors rather than donors and sought returns in the form of sweeping changes to public schooling. In addition to financing the expansion of charter schools, they helped finance Teach for America and the development of the Common Core State Standards to increase the rigor of instruction.
“Have you tried turning off your conscious mind and turning it back on again?”
At the start of Booker’s career, Ed Nicoll had introduced him to a Silicon Valley venture capitalist named Marc Bodnick, who became an admirer. Bodnick was an early investor in Facebook, and he married the sister of Sheryl Sandberg, who later became the company’s chief operating officer. In June, 2010, Bodnick tipped off Booker that Mark Zuckerberg was planning “something big” in education. Bodnick also told him that in July Sandberg and Zuckerberg would be attending a media conference in Sun Valley, Idaho, where Booker was scheduled to speak. Booker said Bodnick told him to be sure to seek out Sandberg, who would connect him to Zuckerberg.
Booker by then was a national celebrity. Since his election as mayor of Newark, he had won widespread attention for presiding over a major decline in homicides—from a hundred and five in 2006 to sixty-seven in 2008. That year, for the first time in almost half a century, there were forty-three days without a single murder. Developers were negotiating deals to build the first downtown hotels in forty years, the first supermarkets in more than twenty. Philanthropists were paying to redevelop parks. A popular cable-TV series—“Brick City,” a reality show about Booker’s battle against crime—was about to begin its second season. Booker spoke at college commencements and charity dinners and appeared on late-night talk shows. His Twitter following, which was more than a million, outnumbered Newark residents almost four to one. Oprah Winfrey, a friend since the early two-thousands, pronounced him the “rock-star mayor of Newark.”
Booker met Zuckerberg over dinner on the deck of the Sun Valley retreat of Herbert Allen, the New York investment banker who hosted the conference. Zuckerberg invited Booker to go for a walk. He said that he was looking for a city that was ready to revolutionize urban education. Booker remembered responding, “The question facing cities is not ‘Can we deal with our most difficult problems—recidivism, health care, education?’ The real question is ‘Do we have the will?’ ” He asked, Why not take the best models in the country for success in education and bring them to Newark? You could flip a whole city! Zuckerberg told reporters, “This is the guy I want to invest in. This is a person who can create change.”
Zuckerberg was disarmingly open regarding how little he knew about urban education or philanthropy. Six years earlier, as a sophomore at Harvard, he had dropped out to work on Facebook. He had recently joined Gates and Warren Buffett in pledging to give half his wealth to charity. He’d never visited Newark, but he said he planned to learn from the experience and become a better philanthropist in the process.
Zuckerberg and his wife, Priscilla Chan, whom he met at Harvard, embarked on education philanthropy as a couple, but they brought different perspectives. Chan grew up in what she has described as a disadvantaged family in Quincy, Massachusetts. Her Chinese-Vietnamese immigrant parents worked eighteen hours a day, and her grandparents took care of her. Chan was the first in her immediate family to go to college, and credited public-school teachers with encouraging her to reach for Harvard. While there, she volunteered five days a week at two housing projects in Dorchester, helping children with academic and social challenges. She had since become a pediatrician, caring for underserved children. She came to see their challenges at school as inseparable from their experience with poverty, difficulties at home, and related health issues, both physical and emotional.
Zuckerberg told me that he had been more influenced by a year, after college, that Chan spent teaching science at an affluent private school in San Jose. People that he and Chan met socially often “acted like she was going to do charity,” he said. “My own view was: you’re going to have more of an impact than a lot of these other people who are going into jobs that are paying a lot more. And that’s kind of a basic economic inefficiency. Society should value these roles more.” Zuckerberg had come to see teaching in urban schools as one of the most important jobs in the country, and he wanted to make it as attractive to talented college graduates as working at Facebook. He couldn’t succeed in business without having his pick of the best people—why should public schools not have the same?
Zuckerberg attracted young employees to Facebook with signing bonuses far exceeding the annual salary of experienced Newark teachers. The company’s workspace had Ping-Pong tables, coolers stocked with Naked juice, and red-lettered motivational signs: “STAY FOCUSED AND KEEP SHIPPING”; “MOVE FAST AND BREAK THINGS”; “WHAT WOULD YOU DO IF YOU WEREN’T AFRAID?” In the Newark schools, nothing moved fast, and plenty of people were afraid. Like almost every public-school district, Newark paid teachers based on seniority and on how many graduate degrees they had earned, although neither qualification guaranteed effectiveness. Teachers who changed students’ lives were paid on the same scale as the deadwood. “Who would want to work in a system like that?” Zuckerberg wanted to know.
A month after their walk in Sun Valley, Booker gave Zuckerberg a six-point reform agenda. Its top priority was a new labor contract that would significantly reward Newark teachers who improved student performance. “Over the long term, that’s the only way they’re going to get the very best people, a lot of the very best people,” Zuckerberg told me. He proposed that the best teachers receive bonuses of up to fifty per cent of their salary, a common incentive in Silicon Valley but impossible in Newark. The district couldn’t have sustained it once Zuckerberg’s largesse ran out.
Booker asked Zuckerberg for a hundred million dollars over five years. “We knew it had to be big—we both thought it had to be bold, eye-catching,” he said. Zuckerberg stipulated that Booker would have to raise a second hundred million dollars, and that he would release his money only as matching dollars came in. Booker also promised that the current superintendent would be replaced by a “transformational leader.” Christie recounted his call from Booker afterward: “He said, ‘Governor, I believe I can close this deal. I really do. I need you, though.’ ” Christie did not grant Booker’s request for mayoral control of the schools but made him an unofficial partner in all decisions, beginning with the selection of a superintendent.
Zuckerberg and Chan flew to Newark Liberty Airport and met Booker and Christie in the Continental Airlines Presidents Club. Booker got Zuckerberg to agree to announce the gift on “The Oprah Winfrey Show,” timed to coincide with the début of the documentary “Waiting for ‘Superman,’ ” and its major marketing campaign. The film chronicled families’ desperate efforts to get children out of failing traditional public schools and into charters, and blamed the crisis largely on teachers’ unions.
Sheryl Sandberg, who vetted the agreement for Zuckerberg, e-mailed updates to Booker’s chief fund-raiser, Bari Mattes: “Mark is following up with Gates this week. I will call David Einhorn”—a hedge-fund manager—“this week (my cousin). Mark is scheduling dinner with Broad. . . . AMAZING if Oprah will donate herself? Will she? I am following up with John Doerr/NewSchools Venture Fund.” Doerr is a venture capitalist.
Ray Chambers, a Newark native who made a fortune in private equity and for decades had donated generously to education, learned of the deal and offered to coördinate a million-dollar gift from local philanthropies as a show of community support. But Mattes wrote to Booker in an e-mail, “I wouldn’t bother. $1 M as a collective gift over 5 years is just too insignificant for this group.” The e-mails were obtained by the A.C.L.U. of New Jersey.
On September 24, 2010, the team described their plan for Newark on “Oprah.” “So, Mr. Zuckerberg,” Oprah asked, “what role are you playing in all of this?” He replied, “I’ve committed to starting the Startup:Education Foundation, whose first project will be a one-hundred-million-dollar challenge grant.” Winfrey interrupted: “One. Hundred. Million. Dollars?” The audience delivered a standing ovation. When Winfrey asked Zuckerberg why he’d chosen Newark, he gestured toward Booker and Christie and said, “Newark is really just because I believe in these guys. . . . We’re setting up a one-hundred-million-dollar challenge grant so that Mayor Booker and Governor Christie can have the flexibility they need to . . . turn Newark into a symbol of educational excellence for the whole nation.” This was the first that Newark parents and teachers had heard about the revolution coming to their schools.
Zuckerberg knew that there had been resistance to education reform in other cities, particularly in Washington, D.C., where voters had rebelled against the schools chancellor Michelle Rhee’s autocratic leadership and driven Mayor Adrian Fenty from office. But he was confident that Booker, twice elected by wide margins, had the city behind him. On the day of the “Oprah” announcement, Zuckerberg posted a note on his Facebook page saying that Booker would focus as single-mindedly on education in his second term as he had on crime in his first.
A very different picture of Newark appeared, however, in the daily reports of the Star-Ledger. The city was experiencing its bloodiest summer in twenty years. As Booker negotiated the Zuckerberg gift, he was facing a potentially ruinous deficit, aggravated by the recession. He was laying off a quarter of the city’s workforce, including a hundred and sixty-seven police officers—almost every new recruit hired in his first term. The city council was in revolt over Booker’s bid to borrow heavily from the bond market to repair a failing water system. Meanwhile, he was managing a busy speaking schedule, which frequently took him out of the city. Disclosure forms show $1,327,190 in revenue for ninety-six speeches given between 2008 and May, 2013. “There’s no such thing as a rock-star mayor,” the historian Clement Price, of Rutgers University, told me. “You can be a rock star or you can be a mayor. You can’t be both.”
Three days after “Oprah,” Booker appeared on MSNBC’s “Morning Joe” with Christie and Arne Duncan, and vowed, “We have to let Newark lead and not let people drop in from outside and point the way.” But Newark wasn’t leading. As matching dollars were pledged, Zuckerberg’s gift moved from his foundation, in Palo Alto, into the new Foundation for Newark’s Future, in Newark. F.N.F.’s board included the Mayor and those donors who contributed ten million dollars or more. (The figure was later reduced to five million, still far beyond the budget of local foundations.) F.N.F. agreed to appoint a community advisory board, but it wasn’t named for another two years, and by then most of the money was committed—primarily to new labor contracts and to the expansion and support of charter schools. In one of the foundation’s first expenditures, it paid Tusk Strategies, in New York, $1.3 million to manage the community-engagement campaign. Its centerpiece was ten public forums in which residents were invited to make suggestions to improve the schools. Bradley Tusk had managed Michael Bloomberg’s 2009 reëlection campaign and was a consultant to charter schools in New York.
Hundreds of residents came to the first few forums and demanded to be informed and involved. People volunteered to serve as mentors for children who lacked adult support. Shareef Austin, a recreation director at Newark’s West Side Park, said, “I have kids every day in my program, their homes are broken by crack. Tears come out of my eyes at night worrying about them. If you haven’t been here and grown up through this, you can’t help the way we can.” Calvin Souder, a lawyer who taught for five years at Barringer High while he was in law school, said that some of his most challenging students were the children of former classmates who had dropped out of school and joined gangs.
Austin said that he and others who volunteered to help were never contacted: “I guess those ideas look little to the people at the top, but they’re big to us, because we know what it can mean to the kids.”
Booker participated in several of the meetings. He was excited to hear principals asking for more autonomy—one of his goals. He told one crowd, “It’s destiny that we become the first city in America that makes its whole district a system of excellence. We want to go from islands of excellence to a hemisphere of hope.”
Meanwhile, teachers worried about their students’ bleak horizons. David Ganz devised a poetry exercise for his all-boys freshman literacy class at Central High School. He put the word “hope” on the board and gave students a few minutes to write. Fourteen-year-old Tyler read his poem to the class:
We hope to live,
Live long enough to have kids
We hope to make it home every day
We hope we’re not the next target to get sprayed. . . .
We hope never to end up in Newark’s dead pool
I hope, you hope, we all hope.
Another student, Mark, wrote, “My mother has hope that I won’t fall victim to the streets. / I hope that hope finds me.” And Tariq wrote, “Hope—that’s one thing I don’t have.”
Booker asked Christopher Cerf, his longtime unofficial education adviser, to plan the overhaul. Cerf, then fifty-six, had become a central switching station for the education-reform movement. Until 2005, he led Edison Schools, a for-profit manager of public schools. He attended Eli Broad’s management training program for public-school leaders. In 2006, he became chief deputy to the New York schools chancellor, Joel Klein, sometimes called the “granddaddy of reform.” For the Newark project, Cerf created a consulting firm, Global Education Advisers. Booker solicited grants from the Broad Foundation and Goldman Sachs, to begin paying the firm.
Cerf set out to develop a “fact base” of Newark’s financial, staffing, and accountability systems so that a new superintendent could move swiftly to make changes. He explained to me, “My specialty is system reform—micro-politics, selfishness, corruption, old customs unmoored from any clear objectives.” Ultimately, Zuckerberg and matching donors paid the firm and its consultants $2.8 million, although Cerf emphasized that he personally accepted no pay, and he left the firm in December, 2010. That month, Christie chose Cerf to be New Jersey’s education commissioner, which meant that the district’s chief consultant went on to become its chief overseer.
Speaking to representatives of Newark’s venture philanthropists, Cerf said, “I’m very firmly of the view that when a system is as broken as this one you cannot fix it by doing the same things you’ve always done, only better.” It was time for “whole district reform.” Newark presented a unique opportunity. The district, Cerf said, “is manageable in size, it’s led by an extraordinary mayor, and it’s managed by the state. We still control all the levers.” With no superintendent in place, Cerf’s office effectively ran the schools, with the consultants providing technical support.
During the next two years, more than twenty million dollars of Zuckerberg’s gift and matching donations went to consulting firms with various specialties: public relations, human resources, communications, data analysis, teacher evaluation. Many of the consultants had worked for Joel Klein, Teach for America, and other programs in the tight-knit reform movement, and a number of them had contracts with several school systems financed by Race to the Top grants and venture philanthropy. The going rate for individual consultants in Newark was a thousand dollars a day. Vivian Cox Fraser, the president of the Urban League of Essex County, observed, “Everybody’s getting paid, but Raheem still can’t read.”
II. THE OPPOSITION
In February, 2011, the Star-Ledger obtained a confidential draft of recommendations by Global Education Advisers that contained a scenario to close or consolidate eleven of the lowest-performing district schools, and to make way for charters and five themed public high schools, to be funded by the Foundation for Newark’s Future. The newspaper ran a front-page article listing the schools likely to be affected and disclosed that Cerf, the state commissioner, had founded the consulting firm.
Newark’s school advisory board happened to be meeting the night the article was published. The board has no real power, since it’s under state control, and meetings were normally sleepy and sparsely attended. Teachers’ union leaders had been poised to attack the reform effort, and that evening more than six hundred parents and union activists showed up. One mother shouted, “We not having no wealthy white people coming in here destroying our kids!” From aisles and balconies, people yelled, “Where’s Christie!” “Where’s Mayor Hollywood!” The main item on the agenda—a report by the Newark schools’ facilities director on a hundred and forty million dollars spent in state construction funds, with little to show for it—reinforced people’s conviction that someone was making a killing at their children’s expense. “Where’d the money go? Where’d the money go?” the crowd chanted.
On a Saturday morning later that month, Booker and Cerf met privately on the Rutgers-Newark campus with twenty civic leaders who had hoped that the Zuckerberg gift would unite the city in the goal of improving the schools. Now they had serious doubts. “It’s as if you guys are going out of your way to foment the most opposition possible,” Richard Cammarieri, a former school-board member who worked for a community-development organization, told them.
Booker acknowledged the missteps, but said that he had to move quickly. He and Christie could be out of office within three years. If a Democrat defeated Christie in 2013, he or she would have the backing of the teachers’ unions and might return the district to local control. “We want to do as much as possible right away,” Booker said. “Entrenched forces are very invested in resisting choices we’re making around a one-billion-dollar budget.” Participants in the meeting, who had worked for decades in Newark, were doubtful that reforms imposed over three years would be sustainable.
“I liked you better as a distant memory.”
Cerf said his motives were altruistic: “Public education embodies the noble ideal of equal opportunity. I know equal opportunity was a massive lie. It’s a lie in Newark, in New York, in inner cities across the country. Call me a nut, but I am committing my life to try to fix that.” He and Booker pledged to engage Newark residents, and Booker asked the group of civic leaders for their public support. “If the purpose is right for kids, I’m willing to go down in a blaze of glory,” he said, leaning over the table with both fists clenched.
Ras Baraka, the principal of Central High School and a city councilman, emerged as the leading opponent of change. His father, Amiri Baraka, was the most prominent radical voice in recent Newark history. Ras Baraka delivered speeches in the style of a street preacher, rousing Newark’s dispossessed as forcefully as Booker inspired philanthropists. The Booker-Christie-Zuckerberg strategy was doomed, he said, since it included no systemic assault on poverty. He told his students that Christie needed them to fail so that he could close Central High and turn it over to charters. “Co-location is more like colonization,” he said of placing charters in unused space inside district schools. Powerful interests wanted the district’s billion dollars.
Many reformers saw Baraka as the symbol of all that ailed urban education. Like a number of New Jersey politicians, he held two public jobs, and he earned more than two hundred thousand dollars a year. His brother was on his city-council payroll. Central High had abysmal scores on the proficiency exam in 2010, Baraka’s first year as principal, and it was in danger of being closed under the federal No Child Left Behind law. But Baraka mounted an aggressive turnaround strategy, using some of the reformers’ techniques. “I stole ideas from everywhere,” he told me. With a federal school-improvement grant, he extended the school day, introduced small learning academies, greatly intensified test prep, and hired consultants to improve literacy instruction. He also summoned gang members who had roamed the halls with impunity for years and told them their battles had to stop at the school door. Students anointed him B-Rak.
Still, results were mixed. In 2011, Central’s proficiency scores rose dramatically, and Cerf spoke at an assembly to congratulate the students. But only five per cent of Central students qualified as “college ready” in reading, based on their A.C.T. scores.
In private, Baraka supported many of the reformers’ critiques of the status quo, including revoking tenure for teachers with the lowest evalutions. Although he publicly embraced the unions’ positions, he told me he opposed paying teachers based on seniority and degrees, as Newark did under its union contract. “We should make a base pay, and the only way to go up is based on student performance,” he said. He told me that many in Newark quietly agreed. But, he insisted, “this dictatorial bullying is a surefire way to get people to say, ‘No, get out of here.’ ” He laughed. “They talk about ‘Waiting for “Superman.” ’ Well, Superman is not real. Did you know that? And neither is his enemy.”
In 2011, Booker paid a visit to SPARK Academy, a charter elementary school run by Newark’s KIPP network. He was accompanied by Cari Tuna, the girlfriend (now the wife) of Facebook’s co-founder, the billionaire Dustin Moskovitz. Booker wanted her to witness the teachers’ intensive training program. Tuna and Moskovitz had started their own foundation, and Booker hoped they would help match Zuckerberg’s hundred million dollars. (They later pledged five million dollars.) SPARK had recently moved to George Washington Carver Elementary School, taking over the third floor. Carver was in one of the most violent neighborhoods in Newark. Joanna Belcher, the SPARK principal, asked the Mayor to give the teachers a talk on the “K” in SPARK, which stands for “keep going.” Booker invoked the Selma march for voting rights, in 1965, and thanked the SPARK teachers for advancing the cause—“freedom from the worst form of bondage in humanity, imprisonment in ignorance.” (My son later took a teaching job at a KIPP school in New York.)
Disagreements over school reform tended to center on resources shifting from traditional public schools to charter schools. When students moved to charters, public money went with them. The battle often intensified when spare classroom space in district schools was turned over to charters, with their extra resources and freedom to hire the best teachers. But Belcher and her staff developed a close working relationship with Carver’s principal, Winston Jackson. They were alarmed that Carver, whose students had among the lowest reading scores in the city, had for years been a dumping ground for weak teachers. Several SPARK teachers asked Booker what he planned to do for children who occupied the other floors of the building.
“I’ll be very frank,” Booker said. “I want you to expand as fast as you can. But, when schools are failing, I don’t think pouring new wine into old skins is the way. We need to close them and start new ones.”
Jackson had never got the police to respond adequately to his pleas for improved security. Gangs periodically held nighttime rites on school grounds, and Jackson reported them without result. One night, a month after SPARK settled into Carver, a security camera captured images of nine young men apparently mauling another. When Jackson and Belcher arrived the next morning, they found bloody handprints on the wall and blood on the walkway. His and Belcher’s calls to police and e-mails to the superintendent’s staff went unanswered. At Jackson’s request, Belcher e-mailed the Mayor, attaching three pictures of the bloody trail on “the steps our K-2 scholars use to enter the building.” Twenty minutes later, Booker responded: “Joanna, your email greatly concerned me. I have copied this email to the police director who will contact you as soon as possible. Cory.” The police director, Sam DeMaio, called, and the precinct captain and the anti-gang unit visited the school. Police presence was stepped up, and the gang moved on.
III. POT OF GOLD
Zuckerberg and Sandberg were increasingly concerned. Six months after the announcement on “Oprah,” Booker and Christie had no superintendent, no comprehensive reform plan, and no progress toward a new teachers’ contract. On Saturday, April 2, 2011, they met with Booker at Facebook’s headquarters, in Palo Alto. If these are the wrong metrics for measuring progress, they asked, what are the right ones? They were holding Booker accountable for performance, just as he intended to hold teachers and principals accountable. Booker was contrite. “Guilty as charged,” he replied.
Zuckerberg urged him to find a strong superintendent quickly, and after the meeting he sent him one of Facebook’s motivational posters: “DONE IS BETTER THAN PERFECT.” Booker, Christie, and Zuckerberg had tried to recruit John King, at that time the Deputy Commissioner of Education for New York State, who had led some of the most successful charter schools in Boston and New York City, but he had turned down the job. According to several of his friends, King worried that everyone involved was underestimating how long the work would take. One of them recalled him saying, “No one has achieved what they’re trying to achieve—build an urban school district serving high-poverty kids that gets uniformly strong outcomes.” He had questions about a five-year plan overseen by politicians who were likely to seek higher office.
After Booker returned from California, Cami Anderson emerged as the leading candidate. Thirty-nine years old, she was the daughter of a child-welfare advocate and the community-development director for the Los Angeles mayor Tom Bradley. She had spent her entire career in reform circles. She’d taught in Wendy Kopp’s Teach for America, then joined her executive team in New York. Anderson later worked at New Leaders for New Schools, which trained principals as reform leaders. One of its founders, Jon Schnur, became an architect of Race to the Top. She’d been a senior strategist for Booker’s 2002 mayoral campaign and had been superintendent of alternative high schools under Joel Klein, in New York.
Anderson had two apparent marks against her: she was white and she was known for an uncompromising management style. Since 1973, Newark had had only African-American superintendents. But Anderson had an interesting backstory. She often mentioned that she had grown up with nine adopted siblings who were black and brown. Her partner, Jared Robinson, is African-American, and their son is named after Frederick Douglass. As for her methods, her friend Rebecca Donner, a novelist, said, “She has her own vision and she won’t stop at anything to realize it. If you’re faint of heart, if you’re easily cowed, if you disagree with her, you’re going to feel intimidated.” Cerf and Booker came to see that as a virtue. As Cerf put it, “Nobody gets anywhere in this business unless you’re willing to get the shit absolutely kicked out of you and keep going. That’s Cami.”
“There’s always one annoying piece left over.”
Christie appointed Anderson in May, 2011. It quickly emerged that she differed with her bosses about the role of charter schools in urban districts. She pointed out that, with rare exceptions, charters served a smaller proportion than the district schools of children who lived in extreme poverty, had learning disabilities, or struggled to speak English. Moreover, charter lotteries disproportionately attracted the “choosers”—parents with the time to navigate the process. Charters in Newark were expected to enroll forty per cent of the city’s children by 2016. That would leave the neediest sixty per cent in district schools. Booker, Christie, and Zuckerberg expected Anderson to revive the district, yet as children and revenue were siphoned off she would have to close schools and dismiss teachers. Because of the state’s seniority rules, the most junior teachers would go first. Anderson called this “the lifeboat theory of education reform,” arguing that it could leave a majority of children to sink as if on the Titanic. “Your theories of change are on a collision course,” she told Cerf and Booker. As Anderson put it to me, “I told the Governor . . . I did not come here to phase the district out.”
Anderson acknowledged the successes of the top charter schools, but Newark faced the conundrum common to almost every urban school system: how to expand charters without destabilizing traditional public schools. Christie and Booker agreed to her request for time to work on a solution, even though Zuckerberg and other donors had already committed tens of millions of dollars to expand charters.
Anderson turned her immediate attention to the district’s schools. She gave principals more flexibility and introduced new curricula aligned to the Common Core standards. Using $1.8 million from the Foundation for Newark’s Future, she hired the nonprofit consulting group TNTP, in part to develop more rigorous evaluation systems. In her first year, the foundation gave her a four-million-dollar grant to hire consultants at her own discretion.
One of her prime initiatives in her first two years was to close and consolidate the twelve lowest-performing kindergarten-through-eighth-grade schools into eight “renew schools.” Each was assigned a principal who, borrowing from the charter model, would choose his or her own teaching staff. The schools also got math and literacy coaches and smart boards, along with the new curricula. Teachers worked an extended day and two extra weeks in the summer. Anderson intended to create “proof points” that would show how to turn around failing district schools.
The eight consolidated schools opened in the fall of 2012, and most won strong support from parents. At the hundred-year-old Peshine Avenue School, in the South Ward, Chaleeta Barnes, the new principal, and Tameshone Lewis, the vice-principal, both had deep Newark roots, and parents, teachers, and children responded well to their insistence on higher standards. They replaced more than half the previous year’s teachers, and the new staff coördinated efforts to improve instruction and address individual students’ academic and discipline issues.
Teachers worked closely with children who couldn’t keep up, and many of them saw improvement, but the effects of children’s traumas outside school posed bigger problems. The father of a student in Shakel Nelson’s fifth-grade math class had been murdered early in the school year. When Nelson sat beside his desk and encouraged him, he sometimes solved problems, but as she moved on he put his head down and dropped his pencil. A girl who was excelling early in the year stopped trying when her estranged, emotionally disturbed parents resumed contact and began fighting.
The quality of teaching and the morale in most of the renew schools improved, but only Peshine made modest gains in both math and literacy on state tests. Six others declined in one subject or both, and the seventh remained unchanged in one and increased in one. This wasn’t surprising. It takes more than a year for reforms to take hold and show up in test scores. Across the district, in Anderson’s first two years, the percentage of students passing the state’s standardized tests declined in all but two of the tested grades. She questioned the validity of the tests, saying that they had become harder and the students needier, although she used them to determine which schools were failing and required overhaul. After her first year, she announced a ten-per-cent gain in the high-school graduation rate, but A.C.T. scores indicated that only two per cent of juniors were prepared for college.
Anderson recognized that the schools needed more social and emotional support, but pointed out that Newark already spent more money per student than almost every other district in the country. She urged principals to shift their existing budgets accordingly. “There’s no pot of gold,” she said.
In fact, there was a pot of gold, but much of it wasn’t reaching students. That was the reformers’ main argument against the wasteful administrations of urban schools. More than half of the Newark district’s annual budget paid for services other than instruction—often at inordinate prices. Charter schools received less public money per pupil, but, with leaner bureaucracies, more dollars reached the classroom. SPARK’s five hundred and twenty students were needier than those in most Newark charters. To support them, the principal, Joanna Belcher, placed two teachers in each kindergarten class and in each math and literacy class in grades one through three. Peshine could afford only one in each. SPARK also had more tutors and twice as many social workers, who provided weekly counselling for sixty-five children. Last year, SPARK’s inaugural class took New Jersey’s third-grade standardized tests. Eighty-three per cent passed in language arts and eighty-seven per cent in math, outscoring the district by almost forty points in each.
Reformers also argued that teachers must be paid according to competency. “Abolish seniority as a factor in all personnel decisions,” Zuckerberg wrote in September, 2010, in a summary of his agreement with Booker. Tenure and seniority protections were written into state law, so the negotiations took place both in the legislature and at the bargaining table. After arduous talks with the state teachers’ union—the biggest contributor to New Jersey politicians—a major reform measure was passed that made tenure harder to achieve and much easier to revoke. But, in return for union support, the legislature left seniority protections untouched.
Soon afterward, in November, 2012, the Newark Teachers Union agreed to a new contract that, for the first time, awarded raises only to teachers rated effective or better under the district’s rigorous new evaluation system. Those who got the top rating would receive merit bonuses of between five thousand and twelve thousand five hundred dollars.
All of this came at a steep price. The union demanded thirty-one million dollars in back pay for the two years that teachers had worked without raises—more than five times what top teachers would receive in merit bonuses under the three-year contract. Zuckerberg covered the expense, knowing that other investors would find the concession unpalatable. The total cost of the contract was about fifty million dollars. The Foundation for Newark’s Future also agreed to Anderson’s request to set aside another forty million dollars for a principals’ contract and other labor expenses. Zuckerberg had hoped that promising new teachers would move quickly up the pay scale, but the district couldn’t afford that along with the salaries of veteran teachers, of whom five hundred and sixty earned more than ninety-two thousand dollars a year. A new teacher consistently rated effective would have to work nine years before making sixty thousand dollars.
The seniority protections proved even more costly. School closings and other personnel moves had left the district with three hundred and fifty teachers that the renew principals hadn’t selected. If Anderson simply laid them off, those with seniority could “bump” junior colleagues. She said this would have a “catastrophic effect” on student achievement: “Kids have only one year in third grade.” She kept them all on at full pay, at more than fifty million dollars over two years, according to testimony at the 2013 budget hearing, assigning them support duties in schools. Principals with younger staffs were grateful. Far fewer of the teachers left than Anderson had anticipated. She hoped Christie would grant her a waiver from the seniority law, allowing her to lay off the lowest-rated teachers, a move that both the legislature and the national teachers’ union promised to fight.
Improbably, a district with a billion dollars in revenue and two hundred million dollars in philanthropy was going broke. Anderson announced a fifty-seven-million-dollar budget gap in March, 2013, attributing it mostly to the charter exodus. She cut more than eighteen million dollars from school budgets and laid off more than two hundred attendance counsellors, clerical workers, and janitors, most of them Newark residents with few comparable job prospects. “We’re raising the poverty level in Newark in the name of school reform,” she lamented to a group of funders. “It’s a hard thing to wrestle with.”
School employees’ unions, community leaders, and parents decried the budget cuts, the layoffs, and the announcement of more school closings. Anderson’s management style didn’t help. At the annual budget hearing, when the school advisory board pressed for details about which positions and services were being eliminated in schools, her representatives said the information wasn’t available. Anderson’s budget underestimated the cost of the redundant teachers by half.
The board voted down her budget and soon afterward gave a vote of no confidence—unanimously, in both cases, but without effect, given their advisory status. At about the same time, Ras Baraka declared his candidacy for mayor, vowing to “take back Newark” from the control of outsiders. He made Anderson a prime target. “We are witnessing a school-reform process that is not about reforming schools,” he told a packed auditorium in his South Ward district. He gave no hint that although he detested the reformers’ tactics, he shared a number of their goals.
“Forgive the informality – my secretary is on vacation.”
In May, with Baraka leading the charge, the city council unanimously passed a resolution calling for a moratorium on all Anderson’s initiatives until she produced evidence that they raised student achievement. Later that month, Anderson sent a deputy to ask Baraka to take a leave of absence as principal of Central High. She argued that he had a conflict of interest: as a mayoral candidate, he was opposing initiatives that he was obliged to carry out as a principal. He refused, and a video of his defiant account of the incident was e-mailed to supporters with the question “Are we all going to stand by like chumps, and allow this ‘Interloping Outsider’ to harass one of our own?”
Hundreds of Baraka’s supporters, including union leaders and activists, attended a school-board meeting that month, to defend him and to denounce Anderson. Her assistant superintendent asked renew-school leaders and parents to testify at the meeting. As Peshine parents and teachers spoke, Anderson’s opponents held aloft signs saying “Paid for by Cami Anderson.” A Peshine teacher confronted Donna Jackson, an activist and perennial detractor of Booker and Anderson, asking why she would deride Newark teachers who were helping children. “I’m sick of hearing these good things about Peshine,” she said. “That just gives Cami an excuse to close more schools.”
On September 4, 2013, Christie said he planned to reappoint Anderson when her term expired, at the end of the school year: “I don’t care about the community criticism. We run the school district in Newark, not them.” But Anderson was increasingly on her own. Christie was campaigning for reëlection and laying the groundwork for a Presidential campaign. Booker was running for the Senate in a special election to replace the late Frank Lautenberg. Six weeks later, he won, and left for Washington.
Many reformers were unhappy with Anderson, too. They objected to her postponement of the dramatic expansion of charter schools that Booker had promised, saying she was denying children the chance for a better education.
IV. ONE NEWARK
Anderson spent much of the fall working with data analysts from the Parthenon Group, an international consulting firm that received roughly three million dollars over two years from Newark philanthropy. She wanted to come up with a plan that would resolve the overlapping complexities of urban schooling. How could she insure that charters, as they expanded, enrolled a representative share of Newark’s neediest children? How could district schools be improved fast enough to persuade families to stick with them? How could she close schools without devastating effects on the neighborhoods? How could she retain the best teachers, given that, by her estimate, she would have to lay off a thousand teachers in the next three years? “This is sixteen-dimensional chess,” she said.
She called her plan One Newark. Rather than students being assigned to neighborhood schools, families would choose among fifty-five district schools and sixteen charter schools. An algorithm would give preference to students from the lowest-income families and those with special needs. In a major accomplishment for Anderson, sixteen of twenty-one charter organizations had agreed to participate, in the name of reducing selection bias. Of the four neighborhood elementary schools in the South Ward slated to close, three were to be taken over by charters, and the fourth would become an early-childhood center. In all, more than a third of Newark’s schools would be closed, renewed, relocated, phased out, repurposed, or redesigned. Beginning in early January, thousands of students would need to apply to go elsewhere. Anderson said that the entire plan had to be enacted; removing any piece of it would jeopardize the whole, and hurt children.
In the fall, she held dozens of meetings explaining the rationale for One Newark to charter-school leaders, business executives, officials of local foundations, elected officials, clergy, and civic leaders. But participants said she didn’t present the specific solutions, because they weren’t yet available. Similarly, parents learned in the fall that their schools might be closed or renewed, but they would not get details until December. During the week before the Christmas vacation, Anderson sent her deputies to hastily scheduled school meetings to release the full plan to parents. She anticipated an uproar—“December-palooza,” she called it to her staff—which she hoped would diminish by January.
Instead, parents demanded answers and didn’t get them. Anderson said that students with learning disabilities would be accommodated at all district schools, but the programs hadn’t yet been developed. Families without cars asked how their children would get to better schools across town, since the plan didn’t provide transportation. Although Anderson initially announced that charters would take over a number of K-8 schools, it turned out that the charters agreed to serve only K-4; children in grades five through eight would have to go elsewhere.
The biggest concern was children’s safety, particularly in the South Ward, where murders had risen by seventy per cent in the past four years. The closest alternative to Hawthorne Avenue School, which was losing its fifth through eighth grades, was George Washington Carver, half a mile to the south. Jacqueline Edward and Denise Perry-Miller, who have children at Hawthorne, knew the dangers well. Gangs had tried to take over their homes, tearing out pipes, sinks, and boilers, and stealing their belongings, forcing both families temporarily into homeless shelters. Edward and Perry-Miller took me on a walk along the route to Carver. We crossed a busy thoroughfare over I-78, then turned onto Wolcott Terrace, a street with several boarded-up houses used by drug dealers.
Edward said, “I will not allow my daughter to make this walk. My twenty-eight-year-old started off in a gang, and we fought to get him out. My twenty-two-year-old has a lot of anger issues because Daddy wasn’t there. I just refuse to see another generation go that way.” Then, as if addressing Anderson, she asked, “Can you guarantee me my daughter’s safety? . . . Did you think this through with our children in mind or did you just do this to try to force us to leave because big business wants us out of here?” Anderson told me that she will address all safety issues, either with school buses or by accommodating middle-schoolers in their neighborhoods. Hawthorne parents said they had not heard this.
Shavar Jeffries, Baraka’s thirty-nine-year-old opponent in the mayoral election, to be held May 13th, could have been a key ally for Anderson. He was a member of the school advisory board when she arrived, and supported most of her agenda, including the expansion of charter schools and reforms in district schools. But he was also a strong opponent of state control, and he challenged her publicly a number of times, saying she had not shared enough information with the board. He was among those who voted against her 2013 budget. Afterward, according to former aides to Anderson, she told potential donors to his campaign that he was not a real reformer, citing his vote against her budget. (Anderson denied saying this.)
He believed that public schools and charter schools could work in tandem and that education reform could take hold in Newark, but only if residents’ voices were heard and respected. “Our superintendent, unfortunately, has in recent times run roughshod over our community’s fundamental interests,” he said in a campaign speech on education. “I say this as a father of two: no one is ever going to do anything that’s going to affect my babies without coming to talk to me.”
The day after the release of One Newark, Ras Baraka held a press conference in front of Weequahic High School, denouncing the plan as “a dismantling of public education.… It needs to be halted.” Enrollment at Weequahic was plummeting, and Anderson intended to phase it out over three years, moving a new all-girls and an all-boys academy into the building. Weequahic was the alma mater of the long-decamped Jewish community and of thousands of Newark community leaders, politicians, athletes, and teachers, who were protesting vociferously. Photos and video footage of Baraka in front of the building, which has a famous W.P.A. mural—the “Enlightenment of Man”—appeared in newspapers, on television, and on blogs and Web sites. “You could feel a shift in the momentum on that day,” Bruno Tedeschi, a political strategist, told me. “I said to myself, ‘He’s trying to turn the election into a referendum on her. From this point on, it doesn’t matter what she does.’ She’s a symbol of Christie and the power structure that refuses to give Newark what it feels rightly entitled to.” Civic leaders and clergy, whom she expected to endorse the plan, backed off. Several weeks later, Anderson agreed to keep Weequahic intact for at least two years.
Christie met with Anderson in Trenton in late December and promised to support her no matter how vocal the opposition. But two weeks later the Bridgegate scandal broke, and Christie had his own career to consider. Anderson moved out of Newark, telling friends she feared for her family’s safety.
“I’m trapped in an elevator – wait, it gets worse.”
On January 15th, at the Hopewell Baptist Church, Baraka held a rally for people affected by One Newark. Four principals of elementary schools in the South Ward argued that deep staff cuts over four years had made failure inevitable. Anderson suspended them, and instructed her personnel staff to investigate whether the principals were thwarting enrollment in One Newark. The move set off such a furor that Joe Carter, the pastor of the New Hope Baptist Church, told Christie he feared civil unrest. Christie told Cerf to get a handle on the matter, and within a week Anderson lifted the suspensions. The principals have since filed a federal civil-rights case alleging violation of their freedom of speech.
In late January, Randi Weingarten, the president of the American Federation of Teachers, spoke at a school-board meeting at First Avenue School in Newark. Five hundred people filled the auditorium; another three hundred and fifty listened in the cafeteria, and more than a hundred stood outside, demanding entry. Weingarten pledged the A.F.T.’s support “until this community gets its schools back,” and declared, “The nation is watching Newark.” Baraka demanded Anderson’s immediate removal, prompting the crowd to cheer and chant “Cami’s gotta go!” as they hurled invective and waved signs reading “Cami, Christie, stop the bullying!”
Then the mother of an honor-roll student at Newark Vocational High School, which Anderson planned to close, stood up and demanded of her, “Do you not want for your brown babies what we want for ours?” She said that Anderson “had to get off East Kinney because too many of us knew where you were going.” Anderson reddened, shook her head, and said again and again, “Not my family!” Moments later, she gathered her papers and left. She has not attended a school-board meeting since. “The dysfunction displayed within this forum sets a bad example for our children,” she wrote in a statement distributed by the district. Antoinette Baskerville-Richardson, who was the board president at the time, responded, “You own this situation. For the third year in a row, you have forced your plans on the Newark community, without the measure of stakeholder input that anyone, lay or professional, would consider adequate or respectful.”
“This is the post-Booker era,” Ras Baraka said recently at the New Jersey Performing Arts Center, in downtown Newark. “The stage has been set, the lights are on, people are in the theatre—it’s time for us to perform.” He was speaking about this week’s mayoral election, which he was favored to win, but he could have been describing the city’s battle over education. Baraka is heavily backed by education workers’ unions, and Jeffries by the school-reform movement. Booker has maintained a public silence about the Newark schools since being sworn in as a senator. Christie has been trying to salvage his Presidential prospects. Almost all of Zuckerberg’s hundred million dollars has been spent or committed. He and Chan gave almost a billion dollars to a Silicon Valley foundation to go toward unspecified future gifts, but they have not proceeded with reforms in other school districts, as originally planned. Cerf left his job as New Jersey’s education commissioner in March to join Joel Klein, who, in 2010, had resigned as New York schools chancellor to run Rupert Murdoch’s new education-technology division at News Corp. Anderson declined to say whether she had signed a new three-year contract. She said that she could have done more to engage the community, but she’d worried that the process would be coöpted by “political forces whose objective is to create disruption.” Nor could she vet the plan as it evolved with individual families. “That is the nature of sixteen-dimensional chess,” she said. “You can’t create concessions in one place that then create problems in another.”
Across the country, the conversation about reform is beginning to change. On April 30th, the NewSchools Venture Fund, a nonprofit venture-philanthropy firm, which donated ten million dollars to the Newark effort, held its annual summit for the education-reform movement. “The people we serve have to be a part of their own liberation,” Kaya Henderson, the successor to Michelle Rhee, in Washington, D.C., said. James Shelton, Arne Duncan’s deputy at the Department of Education, acknowledged the need for more racial diversity among those making the decisions. “Who in here has heard the phrase that education is the civil-rights movement of our age?” he asked. “If we believe that, then we have to believe that the rest of the movement has to come with it.”
In Newark, the solutions may be closer than either side acknowledges. They begin with getting public-education revenue to the children who need it most, so that district teachers can provide the same level of support that SPARK does. And charter schools, given their rapid expansion, need to serve all students equally. Anderson understood this, but she, Cerf, Booker, and the venture philanthropists—despite millions of dollars spent on community engagement—have yet to hold tough, open conversations with the people of Newark about exactly how much money the district has, where it is going, and what students aren’t getting as a result. Nor have they acknowledged how much of the philanthropy went to consultants who came from the inner circle of the education-reform movement.
Shavar Jeffries believes that the Newark backlash could have been avoided. Too often, he said, “education reform . . . comes across as colonial to people who’ve been here for decades. It’s very missionary, imposed, done to people rather than in coöperation with people.” Some reformers have told him that unions and machine politicians will always dominate turnout in school-board elections and thus control the public schools. He disagrees: “This is a democracy. A majority of people support these ideas. You have to build coalitions and educate and advocate.” As he put it to me at the outset of the reform initiative, “This remains the United States. At some time, you have to persuade people.” ♦
Preceded by the University of Texas, Arizona State and New York University, Rutgers ranked 33rd out of 50 schools for the fastest growth of “sugar babies.”
Angela Bermudo, public relations manager at SeekingArrangement.com, the “world’s largest sugar daddy dating site” and a platform for “’mutually beneficial relationships,’ in which young women shower men with attention in exchange for “the finer things in life,” said the University’s presence on SeekingArrangement.com grew by 80 new sign-ups in 2014 or a 32.13 percent increase.
An interaction arranged through SeekingArrangement.com is not a traditional relationship, she said. Both players in the interaction arrange a relationship or structured relationship that fits into their lifestyles. “The average amount (sugar babies) receive is about $3,000 per month,” Bermudo said. “It could be a monetary amount or it could also be a combination of (paying for) rent, books and credit card fees.”
Bermudo attributed the rapid growth of “sugar babies” to the rising cost of education — since 2006, the number of student “sugar babies” multiplied by 12. Lawmakers continually say it is a priority for them to deal with the enormous student debt we have in the United States, but unfortunately, not enough is being done, she said. “We’re breaking records with how many students are applying to university and college, but unfortunately, as prices increase, students are struggling to find out how they’re going to afford it,” she said.
January 29, 2015 at 9:01 AM, updated January 29, 2015 at 3:55 PM
NEW BRUNSWICK – While millionaires are increasingly in short supply in the Garden State, demand for wealthy benefactors among Rutgers University students is on the upswing. Or so says the company behind the dating website designed to bring the two together.
In 2014, the number of Rutgers University students who joined seekingarrangement.com, whose backers tout it as the world’s largest “Sugar Daddy” dating site, rose by 32 percent, according to data released by the website.
Founded in 2006, the online dating website offers cash-strapped college students the chance to enter into what the company’s press kit says are “mutually beneficial” arrangements with more financially secure persons. Students are attracted to the website by the average $3,000 in monthly “allowances” provided by their matches.
A total of 317 Rutgers students have registered profiles with seekingarrangement.com, a spokesperson for the site said. How many of those are active users is unclear. The number represents less than one percent of the university’s total population of enrolled students, which stands at 40,720 for the 2014-2015 school year.
Still, with last year’s growth, Rutgers has shot into the top-50 on the website’s annual ranking of fastest growing “Sugar Baby Schools,” which was released by the website last week.
The rising cost of tuition at Rutgers and universities nationwide, and the lack of congressional action on the issue of student debt, has led to a 42 percent increase in college student signups, according to SeekingArrangement CEO Brandon Wade.
Last July, the Rutgers’ board of governors voted unanimously to hike undergraduate tuition and fees 2.3 percent on the state university’s New Brunswick campus. Students attending the main campus in New Brunswick and Piscataway who live in New Jersey are paying $13,813 in tuition and fees for the 2014-2015 school year.
Calls for comment to the university were not immediately returned.
“While other countries seek to create opportunity and provide a better start for students by abolishing tuition fees or lowering them to reasonable amounts, Congress continues to ignore the problem,” Wade said. “The average debt is more than what most of these new graduates make in a year.”
The sheer amount of loan debt being carried by students may help explain why some students in the Garden State are turning to alternative funding methods to offset the cost of a higher education, says Barbara O’Neill, a Rutgers professor of financial resource management.
“People are anxious,” she says. “It’s like a sword hanging over them. If young adults don’t have the wherewithal to make payments on debt, it’s going to affect all of their decisions moving forward.”
New Jersey ranks in the top-10 in terms of highest amount of loan debt owed by higher education students. Higher education students who graduated from New Jersey institutions in 2013 owe an average of $28,109 in loan repayments, according to a study by the Project on Student Debt.
And many of those students are going into default. Recent studies by the U.S. Department of Education analyze the default rate of students in a three-year student cohort per each fiscal year. Of the 82,185 New Jersey students who had in fiscal year 2011 received a federal student loan, 8,741 defaulted within two years of the start of their repayment period.
That puts the the default rate for students attending four-year colleges in New Jersey at 10.6 percent, according to the most recently released numbers.
The national student loan default rate stands at 13.7 percent.
A federal grand jury in Philadelphia is investigating millions of dollars of politically connected “economic-development” spending by the Delaware River Port Authority, The Inquirer has learned.
The DRPA’s chief attorney and inspector general sent a memo to DRPA employees last Thursday warning them to preserve all documents related to the agency’s economic-development projects.
DRPA chief executive John Matheussen said Wednesday, “I can confirm that we have been served with a subpoena by the U.S. Attorney’s office.”
He declined to discuss the timing or the scope of the subpoena issued last week by the office of eastern Pennsylvania U.S. Attorney Zane David Memeger.
DRPA spokesman Tim Ireland said that the DRPA “will cooperate fully” and that “we will make certain our compliance with this subpoena demonstrates a renewed commitment to transparency” by the agency.
The DRPA, which operates four toll bridges and the PATCO commuter rail line between Philadelphia and South Jersey, spent nearly $500 million over 15 years to underwrite museums, sports stadiums, a concert hall, a cancer center, the Army-Navy football game, and other non-transportation projects.
Much of the money went to politically influential recipients, as the Pennsylvania and New Jersey delegations on the DRPA board got equal amounts to spend. Fourteen of the 16 board members are appointed by the governors of New Jersey and Pennsylvania (two Pennsylvania members, the state treasurer and state auditor general, are on the board by virtue of their elected offices).
Last year, New Jersey state comptroller Matthew Boxer issued a report critical of political cronyism and mismanagement at the DRPA, saying that “in nearly every area we looked at, we found people who treated the DRPA like a personal ATM, from DRPA commissioners to private vendors to community organizations. People with connections at the DRPA were quick to put their hand out when dealing with the agency, and they generally were not disappointed when they did.”
A spokeswoman for Memeger declined to comment on the grand jury investigation.
Sources close to the probe, however, said it appeared to focus on economic development spending in Pennsylvania.
The federal investigators were said to be particularly interested in spending that was funneled through the Philadelphia Industrial Development Corp., a development lender created by the city and the Greater Philadelphia Chamber of Commerce.
The PIDC, which is governed by a board appointed by the mayor and the president of the chamber, received more than $13 million from the DRPA in 2010, ostensibly to help “small, emerging and new businesses.”
In fact, most of the money was directed by DRPA officials to well-established tourism groups or nonprofits, some with close ties to DRPA board members. In one case, $500,000 was given to a multibillion-dollar commercial real estate developer.
The Philadelphia Orchestra, the National Constitution Center, public broadcaster WHYY, the Pro Cycling Tour, the Variety Club, the Independence Visitor Center, and other organizations collected $13.3 million in DRPA funds in 2010.
John Grady, president of the PIDC, said Wednesday that he could not comment other than to say that the PIDC “cooperates with all investigations” by law enforcement agencies.
He said the PIDC’s role as agent for the DRPA’s economic-development funding ended at the end of 2011, when the money ran out.
Economic-development spending by the DRPA has long been controversial, as it contributed to a $1 billion debt that now consumes more than 40 percent of the agency’s revenue. Motorists and some board members complained that the DRPA should not spend money on non-transportation projects, while borrowing hundreds of millions to maintain its bridges and rail line.
The DRPA allocated the last of its economic-development money in December 2011. Its then-chairman, Gov. Corbett, said the DRPA would no longer be involved in economic-development spending.
The scope and duration of the federal investigation was not clear Wednesday.
However, sources close to the investigation said DRPA general counsel Danielle McNichol and inspector general Thomas Raftery issued a memo late Thursday, just before the three-day weekend, telling employees not to destroy documents related to DRPA economic-development spending.
Federal prosecutors served subpoenas this week on several officials and employees of the Delaware River Port Authority, including at least three board members – Camden County Freeholder Jeffrey L. Nash, South Jersey labor leader Richard Sweeney, and Philadelphia lawyer William Sasso, The Inquirer has learned.
Jeffrey L. Nash, Richard Sweeney, and William Sasso (pictured left to right)
Since April, the U.S. Attorney’s Office has been investigating millions of dollars of politically connected “economic-development” spending by the DRPA.
Subpoenas issued Monday to several board members and other DRPA employees demanded materials and testimony related to that spending.
Sasso, who was appointed to the DRPA board by Gov. Corbett in 2011, said he apparently received the subpoena because he is chairman of a DRPA board committee that has been critical of several sweetheart loans granted by the agency.
He said he has been asked to provide information about those loans to investigators and would cooperate.
One of the loans was for the redevelopment of a former Radio Corp. of America building in Camden into the Victor Lofts.
In 2003, the DRPA lent the developer Carl Dranoff $3 million interest-free until 2009 to help convert the historic “Nipper Building” into 341 apartments overlooking the Delaware River and the Philadelphia skyline.
Dranoff was to start repaying the loan in 2009, with monthly installments of $23,259 until the end of 2014, at which time the $2.5 million loan balance would be paid in a lump sum, according to the loan agreement. But the agreement also states that Dranoff’s obligation to make payments is limited to Victor’s “available cash flow.” So far, no payments have been made.
The other loan, in 2001, was for $1 million to redevelop the landmark boxing venue the Blue Horizon on North Broad Street. The Blue Horizon is now closed, the loan is in default, and the DRPA has written off collecting any of the accrued interest in the hope of recovering its $1 million principal.
Nash, the vice chairman of the DRPA board, declined to comment.
Sweeney, an official with the ironworkers’ union and brother of New Jersey Senate President Stephen Sweeney (D., Gloucester), could not be reached for comment.
A spokeswoman for U.S. Attorney Zane David Memeger declined to comment, as did DRPA spokesman Tim Ireland.
The DRPA, which operates four toll bridges and the PATCO commuter rail line between Philadelphia and South Jersey, spent nearly $500 million over 15 years to underwrite museums, stadiums, a concert hall, a cancer center, the Army-Navy football game, and other non-transportation projects.
Much of the money went to politically influential recipients, as the Pennsylvania and New Jersey delegations on the DRPA board got equal amounts to spend. Fourteen of the 16 board members are appointed by the governors of New Jersey and Pennsylvania. Two Pennsylvania members – the state treasurer and auditor general – are on the board by virtue of their elected offices.
Last year, New Jersey state Comptroller Matthew Boxer issued a report critical of cronyism and mismanagement at the DRPA, saying that “in nearly every area we looked at, we found people who treated the DRPA like a personal ATM, from DRPA commissioners to private vendors to community organizations.”
One of the subpoenas issued Monday demanded records going back at least five years, casting a broad net related to economic-development spending.
Economic-development spending by the DRPA has long been controversial, as it contributed to a $1.6 billion debt that now consumes about half of the agency’s spending. Motorists and some board members complained that the DRPA should not spend money on non-transportation projects, while borrowing hundreds of millions to maintain its bridges and rail line.
Last updated: Friday, September 25, 2015, 11:59 PM
Posted: Thursday, September 24, 2015, 7:45 PM
City Within a City.
Project Arizona.
Cherokee.
Those are just a few of the Camden redevelopment schemes that have failed over the last 50 years in this tough old town, where empty promises are almost as common as empty lots.
I’m reminded of this Thursday as a blockbuster announcement – a $1 billion mixed-use downtown waterfront complex anchored by two sleek high-rises – lures me to the Adventure Aquarium.
I sigh as I remember how often I have sat in this very room, or others like it, scribbling madly as parades of politicos and assorted developers urge an audience to look beyond the Camden all around them and focus on the Camden of the future.
It’s always there, just over the horizon. Here it comes!
But years later, so many questions. Such as, what happened to the proposed World Trade Center in North Camden? What became of the Hilton Garden Inn announced for the waterfront in . . . was it 2007?
And where, oh, where, is the new supermarket that was supposed to be open by now on Admiral Wilson Boulevard?
As I wait for the latest announcement – a story that my colleague Allison Steele already had broken in Thursday’s Inquirer – I’m distracted from my cynical reveries by the exciting buzz in the room.
The sharks in a nearby tank appear to be swimming languidly, but the humans around me are energized – glad-handing, hugging, snapping selfies. The celebratory vibe is contagious, sort of like a contact high at a ’70s rock show, without the hallucinations.
Or could I be dreaming at this very moment?
“Let’s give Camden, N.J., a round of applause,” I hear an ebullient Mayor Dana L. Redd declare, before introducing “my friend Chris Christie.”
The Republican governor and presidential candidate appears – in person, not Skyped in from New Hampshire – and gets his own round of applause. And then another.
Evidently thrilled by the unaccustomed home-state adulation, Christie offers a paean to bipartisanship. Then he gives a shoutout to top Democrat George Norcross (whom Redd calls “a friend to everyone here”), without whom, it is understood, none of this would be happening.
And not only because he’s investing $50 million of his own money in the deal.
Christie is gracious, if perfunctory; he shakes some hands, disappears. Norcross does not speak, but he’s there, beaming, in the front row, as the celebrated architect and project master planner Robert A.M. Stern narrates the on-screen series of gorgeous renderings.
Stern describes “a new urban neighborhood” with 1.7 million square feet of office space, 325 units of housing, 27,000 square feet for retail, and a hotel. He talks about reconnecting the city’s street grid with the riverfront.
It suddenly occurs to me that this announcement is serious. For a national developer like Liberty Property Trust to announce a project like this in Camden is a big deal.
If the Malvern company can replicate some of the celebrated success of its Navy Yard redevelopment project, the Camden waterfront will be on its way to becoming not merely a destination for visitors, but a real neighborhood, as Stern says.
It will no longer be a somewhat forlorn collection of isolated, island-like structures – aquarium here, concert venue there, ballpark over yonder – marooned on a bleak tundra of parking.
Liberty expects to invest between $700 million and $800 million in the project by the end of the decade, says Liberty CEO William P. Hankowsky, who publicly thanks Norcross for making his firm aware of the development opportunity.
As the event breaks up, the mayor and governor are gone, but Norcross is available to the media.
He reassures us that past development schemes failed because they left out the neighborhoods, which are now included – beneficiaries of the county police department he pushed for and the charter schools he’s building.
People in Camden also will get a shot at “thousands of jobs” that will be created by companies attracted to the city by the Christie administration’s “Grow New Jersey” tax incentives.
Could it be that decades of subsidies and tax breaks – particularly on the waterfront and in downtown – might at last bear fruit? And for whom?
Norcross, Hankowsky, Redd, Christie and others at the announcement festivities insist that everyone in the city will benefit. Says the mayor, “This is Camden’s time.”