K12 and Tom Luna

Lee Fang, writing in The Nation, outlines “how online learning companies bought America’s schools.”  Closer to home, Dan Popkey’s December 6 Statesman article, “K12’s money hasn’t influenced Idaho schools chief Luna, spokeswoman says,” explores in more detail K12, one of the major players in the virtual education industry. K12 is of particular interest because it operates Idaho Virtual Academy. http://www.idahostatesman.com/2011/12/06/1905899/leader-in-the-virtual-schoolmovement.html#storylink=misearch

Luna says he has not been influenced by K12 money “None of these donations have influenced his position on education policy,” his spokesperson says. She further points out that he has not been influenced by campaign contributions, nor is he an investor. Nevertheless, Luna and K12 executives and major investors seem to be on very close personal terms. “I don’t want to be boastful, but they know me, I know them,” Luna says. Draw your own conclusions.
Because The Idaho Statesman often pulls links after a few days, I am pasting the entire article below:

Idaho Superintendent of Public Instruction Tom Luna has close ties to K12 Inc., which contributed about $44,000 to his 2010 re-election bid.

But Luna’s spokeswoman, Melissa McGrath, said Monday that his push for reforms that may boost business for K12 have not been influenced by campaign contributions or a financial relationship with any education company.

“Superintendent Luna has no current investments in K12 Inc. or other education-related companies, and he never has,” McGrath said.

She added: “Superintendent Luna has run for statewide office three times in which many individuals and organizations donated to his campaigns. None of these donations have influenced his position on education policy. Superintendent Luna has been a proponent of expanding parental choice in public education since he served as a local school board member in Nampa in the 1990s.”

Luna received his first education industry contribution from former K12 chairman William Bennett in 2002 and calls K12 CEO Ron Packard a friend. Luna said he convinced Packard to sponsor Gov. Butch Otter’s Governor’s Cup Scholarship tournament.

“I know Ron well,” Luna told the Statesman in February. “He comes to the Governor’s Cup and we play golf. Sometimes he comes to Idaho and maybe we’ll go to dinner.”

K12 operates the Idaho Virtual Academy, which enrolled about 3,000 students and received $12.8 million from the state in fiscal 2010. Of the $44,000 K12, its employees and major stockholders spent, $25,000 was funneled to an Idaho interest group for independent advertising on Luna’s behalf. K12 Inc. gave Otter $5,000 in 2010.

Idaho Virtual Academy is one of 43 public charter schools in Idaho. McGrath said Luna has “not done anything” to increase IVA funding. The school met federal Adequate Yearly Progress standards in the 2010-11 school year — as did 407 of the 659 Idaho schools that received AYP ratings.

IVA received $4,523 per pupil in state general funds in the 2009-10 school year, the last available. That compares to $8,186 in Boise, $5,684 in Meridian, $5,147 in Kuna, $5,560 in Nampa and $5,397 in Caldwell.

Luna also knows K12 investor Michael Milken and his brother, Lowell. The Milkens own Learning Group LLC, the largest shareholder of K12, with 24 percent of the company. The brothers advocate pay-for-performance for teachers, one of three prongs of Luna’s 2011 reforms he calls “Students Come First,” which passed with support from Otter.

“I don’t want to be boastful, but they know me, I know them,” Luna said in February. “I like to get their data and discuss it with them.”

Another key supporter of Luna’s reforms is the J.A. and Kathryn Albertson Foundation, which placed ads backing Students Come First. Foundation CEO Thomas Wilford was on the board of K12 Inc. for eight years, before stepping down a year ago.

K12’s Idaho lobbyist is Suzanne Budge, a longtime champion of school choice.

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