View source for Koch network laying groundwork to fundamentally transform America’s education system

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{{DES | des = "Making a long-term play, the billionaire industrialist Charles Koch and his like-minded friends on the right are increasingly focused on melding the minds of the next generation by making massive, targeted investments in both K-12 and higher education." | show=}}
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THE BIG IDEA:

INDIAN WELLS, Calif. — The Koch network will spend around $400 million on politics and policy this election cycle, but that’s only part of a grander effort to fundamentally transform America.

Making a long-term play, the billionaire industrialist Charles Koch and his like-minded friends on the right are increasingly focused on melding the minds of the next generation by making massive, targeted investments in both K-12 and higher education.

Changing the education system as we know it was a central focus of a three-day donor seminar that wrapped up late last night at a resort here in the desert outside Palm Springs.

“We’ve made more progress in the last five years than I had in the last 50,” Koch told donors during a cocktail reception. “The capabilities we have now can take us to a whole new level. … We want to increase the effectiveness of the network … by an order of magnitude. If we do that, we can change the trajectory of the country.”

Leaders of the network dreamed of disrupting the status quo, customizing learning and breaking the teacher unions. One initial priority is expanding educational saving accounts and developing technologies that would let parents pick and choose private classes or tutors for their kids the same way people shop on Amazon. They envision making it easy for families to join together to start their own “micro-schools” as a new alternative to the public system.

The Charles Koch Institute distributed roughly $100 million to 350 colleges and universities last year, up sevenfold over the past five years. What’s newer is the emphasis on elementary and secondary education. The network declined to offer exact figures but said it will double investment in K-12 this year, with much more planned down the road.

There are about 700 people who each contribute a minimum of $100,000 per year to the constellation of organizations that comprise the Koch network. For years, many of these megadonors have urged Koch to wade into the battles over what they call school choice. Charles resisted, believing that his network had no special comparative advantage to move the needle in this area.

Then he commissioned Meredith Olson, a vice president at Koch Industries, to interview members of his network about what they are doing in their home states to explore whether there is a way to scale their education efforts nationally. She developed a three-prong strategy: “reform, supplement, innovate.”

“The lowest hanging fruit for policy change in the United States today is K-12,” said Stacy Hock, a major Koch donor who has co-founded a group called Texans for Educational Opportunity. “I think this is the area that is most glaringly obvious.”


Arizona Gov. Doug Ducey (R) speaks last week in Phoenix. (Matt York/AP)
-- In 2018, Koch donors see Arizona as ground zero in their push. Doug Ducey, the former chief executive of Cold Stone Creamery, became a member of the Koch network in 2011. Since 2015, he’s attended the seminars as governor of Arizona. Last year, he signed legislation to dramatically expand the state’s Empowerment Scholarship Accounts program so that students can use taxpayer dollars that would be spent on them in public schools to cover private-school tuition or other educational expenses.

Teacher unions, worried that this will undermine the public system, collected enough signatures to put the law on hold and create a ballot proposition to let voters decide in November whether to expand vouchers.

Addressing the seminar yesterday, Ducey touted the measure as further reaching than anything that’s been tried in other states. He warned that, under Arizona law, if advocates lose at the ballot box, they will not be able to legislate on the topic in the future. “This is a very real fight in my state,” Ducey said. “I didn’t run for governor to play small ball. I think this is an important idea.”

The Koch network is likely to spend heavily to support the voucher law, setting up a battle royal with the labor movement.

Ducey introduced Steve Perry, the headmaster of Capital Prep Charter Schools, who has been traveling Arizona to speak in support of the law. “The teacher unions are unencumbered by the truth,” he told the Koch donors. “It is a distant relative that is never invited to dinner.”

Tim Phillips, the president of Americans for Prosperity, highlighted field operations that the network has built in 36 states to advance its agenda, including on education. “We have more grass-roots members in Wisconsin than the Wisconsin teachers’ union has members,” he said. “That’s how you change a state!”

Many of the richest people in America listened intently as Koch donors and officials outlined their theory of the case. The Washington Post was invited inside the strategy session on the condition that the donors in attendance not be named without their permission. At the end of what was essentially a sales pitch, members of the Seminar Network, as it is officially known, were asked to check a box on a piece of paper in front of them if they were interested in contributing to the education efforts.

“We all need to be fully committed to a society in which everyone has an opportunity to make a better life for themselves,” Charles Koch said. “To succeed, each of us has to be all-in. What I mean by that is that we have to make these kinds of efforts a central part of our lives. You don’t need to be as obsessed as I am … although that wouldn’t hurt … but you can’t just make it a sideline.”
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