Koch Funded Johnson Center’s Mission To Destroy Pensions

August 3, 2016

The Kochs’ infiltration of college curriculum is well documented, but the Kochs are now beginning to see their investment in higher education pay dividend. The Johnson Center at Alabama’s Troy University is heavily funded by the Charles Koch Foundation. The Kochs’ financial influence translates into the Kochs “completely and thoroughly” driving the educational agenda at The Johnson Center.

The Kochs influence–wielded through The Johnson Center–extends beyond indoctrinating students, however. Faculty members sympathetic to the Kochs’ agenda are using the Center as a vehicle to undermine Alabama’s pension system and push for privatization of retirement accounts. In the echo chamber of Koch “academia”, Johnson Center professors are using another Koch entity, the Mercatus Center to publish works pushing for privatization of the state’s pension system.

In a presentation given to the Association of Private Enterprise Education–another group funded in part by the Charles G. Koch Charitable Foundation–Johnson Center professor George Crowley discussed the lack of oversight, reflecting that Troy’s administration, “Kind of let us get away with a lot, as far as hiring people very rapidly and ramming through some of the curricular kind of stuff.” Crowley was also unguarded in describing his colleague Dan Smith as a man who, “has kind of taken it upon himself to try to bring down the state pension system.” Crowley later tried to dismiss the comment as a joke, but Smith’s work speaks for itself.

More on how the Kochs use The Johnson Center to spread their pernicious ideology is available here.

Background

The Koch Foundation Funded & Drove The Johnson Center At Troy University

The Charles G. Koch Foundation Gave A $1.2 Million Grant To Help Start The Johnson Center At Troy University

The Charles G. Koch Foundation Gave A $1.2 Million Grant To Help Start The Johnson Center. According to AL.com, “Amy Marlowe, a spokeswoman for the Alabama Education Association, knocked the Johnson Center for its ties to billionaire conservative activists Charles and David Koch. The Charles G. Koch Foundation gave a $1.2 million grant to help start the center.” [AL.com, 9/4/14]

The Koch Foundation “Completely And Thoroughly” Drove The Educational Agenda At The Johnson Center

Troy University Student Newspaper Editor-In-Chief Ngoc Vo: Troy University Assistant Professor Laura Burmeister Said Funding From Charles Koch Institute Has “Completely And Thoroughly” Driven The Educational Agenda Resulting In A Lack Of Academic Freedom And A Censorship Of Opposing Viewpoints. According to an op-ed by Ngoc Vo in Tropolitan, “Laura Burmeister, a social sciences assistant professor, said funding from institutions with political agendas drives educational agendas ‘completely and thoroughly.’ I was just told (last) week that I had to ‘leave the personal out of the classroom’ (from a superior within Troy’s academic hierarchy), because I said privilege was real and was criticizing rational choice theory,’ she said. ‘I never got (these) restrictive mandates before the advent of the Johnson Center. So much for academic freedom.’” [Tropolitan – Ngoc Vo, 9/24/15]

Leaked Comments Showed The Johnson Center As Lacking Oversight In Their Push To Destroy Alabama’s Pension System

In A Leaked Recording Troy University Professor George Crowley Said That The Johnson Center Had Little Oversight…

Troy University Professor George Crowley Gave The Impression The University Exercised Little Oversight Over The Koch-Funded, Free-Market Johnson Center’s Activities “Which Include Research And Reform Recommendations On Alabama’s Public Retirement System.” According to the College Fix, “A professor at Troy since 2011, [George] Crowley was speaking on a panel discussion titled ‘Being an Intellectual Entrepreneur’ at the Las Vegas meeting, according to the transcript of the panel. His comments gave the impression that the university exercised little oversight of the center’s activities, which include research and reform recommendations on Alabama’s public retirement system. UnKoch My Campus has sought to portray the Koch Foundation as pulling the strings behind such privately funded research centers. The Johnson Center says its education is ‘focused on the moral imperatives of free markets and individual liberty.’ It was funded in 2010 with about $1.2 million dollars in gifts each donated from Koch, BB&T and Troy alum and private donor Manuel Johnson.” [College Fix, 8/3/16]

  • Crowley Said The Troy Administration Had “Kind Of Let Us Get Away With A Lot, As Far As Hiring People Very Rapidly And Ramming Through Some Of The Curricular Kind Of Stuff.” According to the College Fix, “In the transcript, Crowley said the Troy administration had ‘kind of let us get away with a lot, as far as hiring people very rapidly and ramming through some of the curricular kind of stuff.’ He also referred to Troy as ‘the third class [public] university in the state’ behind the University of Alabama and Auburn University.” [College Fix, 8/3/16]

…And Was Charged With Changing Troy’s Business School Towards Advocating For The Free Market

Crowley Said The Johnson Center’s Task Was To “Kind Of Fundamentally Change What Troy Was Doing” In The Business School, Turning It Away From A “Straight Teaching School” To A Program In Which Students “Engaged With The Actual Ideas’ Behind The Free Market.” According to the College Fix, “The Johnson Center’s task was to ‘kind of fundamentally change what Troy was doing’ in the business school, turning it away from a ‘straight teaching school’ to a program in which students ‘engaged with the actual ideas’ behind the free market.” [College Fix, 8/3/16]

Crowley’s Leaked Remarks Suggested The Johnson Center Is Pushing Young Minds Initially Skeptical Of Economics Towards Free-Market Ideologies. According to the College Fix, “Other parts of Crowley’s leaked remarks suggest the Johnson Center is stimulating young minds that are initially skeptical of economics. He told a story about a student who was a political science major and sat in class silently for the entire 10-week term. In the short-essay portion that ends the term in Crowley’s class, that student wrote something along the lines of ‘I am a socialist, but now that I’ve been finally been exposed to some of these ideas, I’m very interested in taking economics,’ according to Crowley. The student ended up switching his major to economics and graduating quickly.” [College Fix, 8/3/16]

Crowley Also Said That His Colleague Had Taken It Upon Himself To Bring Down The State Pension System

Troy University Professor George Crowley Said His Colleague Dan Smith “Has Kind Of Taken It Upon Himself To Try To Bring Down The State Pension System.” According to the College Fix, “Crowley had said his colleague Dan Smith ‘has kind of taken it upon himself to try to bring down the state pension system.’ He later told AL.com that this line was a ‘joke’ that referred to how Smith’s reform recommendations have been portrayed by critics. Indeed, the transcript denotes ‘laughter’ after this line.” [College Fix, 8/3/16]

Crowley Claimed That The Statement Was Made As A Joke

Crowley Claimed That His Statement That They Were Working To “Bring Down” The Pension System Was Made As A Joke. According to AL.com, “Crowley said the first part of that comment was in jest. ‘My saying ‘bring down’ was an unfortunate attempt at a joke in a room full of roughly 20 people; a reference to how some have characterized Dan’s work. … I can assure you that it is not his intention to ‘bring down’ anything, but instead to point out possible issues with our state pension system and suggest alternatives that might better serve public employees.’” [Al.com, 7/1/16]

But Troy University Professors Pushed For Pension Privatization

Troy University Assistant Professors Of Economics John Dove And Daniel Smith: Alabama Requires Systematic, Structural And Comprehensive Reforms That Focus On “Public Pensions, Taxes, Privatization, And The Regulatory System.” According to Assistant Professor of Economics at the Manuel H. Johnson Center for Political Economy at Troy University John A. Dove and assistant Professor of Economics at the Manuel H. Johnson Center for Political Economy at Troy University Daniel J. Smith, “Alabama requires systematic reforms that expand economic freedom and put the state on the road to economic prosperity. Some of these are broad, structural reforms, such as overhauling the constitution and consolidating the budget, as well as tackling corruption. Comprehensive reforms of specific policy areas are also required. Policy issues in need of attention include public pensions, taxes, privatization, and the regulatory system.” [Mercatus Center, 3/22/16]

  • Dove And Smith: Alabama Should Transition Their Public Pension System To “Private, Defined Contribution Accounts.” According to Assistant Professor of Economics at the Manuel H. Johnson Center for Political Economy at Troy University John A. Dove and assistant Professor of Economics at the Manuel H. Johnson Center for Political Economy at Troy University Daniel J. Smith, “Alabama’s public pension system is severely underfunded, putting retirees and taxpayers at risk. The funded ratio of the Retirement Systems of Alabama (RSA) has dropped precipitously as the actuarial value of assets in the Teachers’ Retirement System, the Employees’ Retirement System, and the Judicial Retirement Fund have declined while their liabilities have increased. The declining funding health of the RSA has prompted a reliance on increasing state and employee contributions to the system. In response to its declining funding health, the RSA has also increased its investment risk exposure—an exposure that taxpayers ultimately bear. Recommendation: Transition new members of the RSA to private, defined contribution accounts, providing them with more portable and customizable retirement benefits.” [Mercatus Center, 3/22/16]

Following The Leak, The Professor’s Promotion Was Cancelled And Troy Put A 90 Day Moratorium On Professors Engaging In Political Activism

Following The Leaks, Crowley’s Appointment As Chair Had Been Cancelled And “Hawkins, Sorrell College Of Business Dean Judson Edwards Imposed A 90-Day Moratorium On Public Policy Pronouncements, Opinion Writing ‘Or Any Other Activities That Can Be Construed As Political Activism’ By Johnson Center Employees.” According to the College Fix, “In a June 30 memo sent to Troy University trustees, Chancellor Jack Hawkins’ office said Crowley’s appointment as chair had been canceled following the leak. (Though the Las Vegas meeting was secretly recorded, it’s not clear whether the recording violated Nevada law, which only requires one party to an in-person conversation to consent to its recording.) In decisions ‘sanctioned’ by Hawkins, Sorrell College of Business Dean Judson Edwards imposed a 90-day moratorium on public policy pronouncements, opinion writing ‘or any other activities that can be construed as political activism’ by Johnson Center employees.” [College Fix, 8/3/16]

Paid for by American Bridge 21st Century Foundation