SACRAMENTO, Calif. /California Newswire/ — The California State Assembly has approved AB 406 by Assemblymember Kevin McCarty (D-Sacramento), which would prohibit for-profit corporations from managing and operating charter schools in the state. The measure was approved on a 48 to 23 vote.

Throughout the United States, a number of corporations are seeking to privatize public education as an untapped market for increasing their profits. A disturbing trend in this effort to privatize our public schools has been in the charter school arena. These corporations take public taxpayer dollars and use a percentage of those dollars for corporate profits and excessive salaries for their executives with little or no transparency and accountability – taking taxpayer money away from students. In California, 34 charter schools run by for-profit corporations serve over 25,000 students and divert millions of dollars annually away from public schools and into the pockets of corporate investors.

“The privatization of public education must end,” said Assemblymember Kevin McCarty. “Passage of AB 406 puts student success ahead of corporate profits and affirms California’s belief that public tax dollars should be spent in the classroom, not in the corporate boardroom.”

California Federation of Teachers President, Joshua Pechthalt added that, “A growing number of for-profit charter management organizations are running schools in California. These corporations, often based outside the state, set up shell non-profit organizations that open charter schools and require the schools to contract directly with the corporation for all or most of their services. The corporations receive public dollars but siphon them away from students into shareholder profits with little or no oversight, transparency or public accountability.

These predatory corporate intrusions shortchange our students and undermine our public education system. AB 406 will put an end to these harmful practices.”

AB 406 now moves to the State Senate for further consideration.

Kevin McCarty represents California’s 7th Assembly District, which include the cities of Sacramento, West Sacramento and unincorporated Sacramento County. McCarty serves as Chair of the Assembly Budget Subcommittee on Education Finance.