Jason Riley:

One of the foundation’s main initial interests was schools with fewer students. In 2004 it announced that it would spend $100 million to open 20 small high schools in San Diego, Denver, New York City and elsewhere. Such schools, says Mr. Gates, were designed to–and did–promote less acting up in the classroom, better attendance and closer interaction with adults.
“But the overall impact of the intervention, particularly the measure we care most about–whether you go to college–it didn’t move the needle much,” he says. “Maybe 10% more kids, but it wasn’t dramatic. . . . We didn’t see a path to having a big impact, so we did a mea culpa on that.” Still, he adds, “we think small schools were a better deal for the kids who went to them.”
The reality is that the Gates Foundation met the same resistance that other sizeable philanthropic efforts have encountered while trying to transform dysfunctional urban school systems run by powerful labor unions and a top-down government monopoly provider.
In the 1970s, the Ford, Carnegie and Rockefeller foundations, among others, pushed education “equity” lawsuits in California, New Jersey, Texas and elsewhere that led to enormous increases in state expenditures for low-income students. In 1993, the publishing mogul Walter Annenberg, hoping to “startle” educators and policy makers into action, gave a record $500 million to nine large city school systems. Such efforts made headlines but not much of a difference in closing the achievement gap.
Asked to critique these endeavors, Mr. Gates demurs: “I applaud people for coming into this space, but unfortunately it hasn’t led to significant improvements.” He also warns against overestimating the potential power of philanthropy. “It’s worth remembering that $600 billion a year is spent by various government entities on education, and all the philanthropy that’s ever been spent on this space is not going to add up to $10 billion. So it’s truly a rounding error.”

Much more on Small Learning Communities, here.