"I've never led a revolution before," Theodore Forstmann told the New York Times last year. But the financier is working to start one, hoping to overthrow what he calls the "government monopoly" on education and allow children to attend private schools at taxpayer expense.
So far Forstmann's campaign to provide students with government-financed vouchers has met with only mixed success. Though limited voucher programs have been approved in Florida, Wisconsin, and Ohio, two high-profile initiatives in California and Michigan were defeated by voters in November. Voucher legislation was defeated or delayed in 28 other states last year, and a voucher program in Ohio was recently ruled unconstitutional by a federal appeals court. But the voucher rebels won a major victory last year with the election of George W. Bush, who campaigned on a proposal that would allow students at failing public schools to use federal aid towards tuition at a private or parochial school.
Forstmann's financial commitment to vouchers -- a term he avoids -- goes far beyond the $250,000 he gave to the Republican National Committee. He has also committed millions of his own money to privately fund $100 million in vouchers in partnership with Wal-Mart heir John Walton (No. 396, $253,250). The Children's Scholarship Program has received more than 1.2 million applications from low-income families for some 40,000 private and parochial scholarships.
More recently, Forstmann spearheaded the $20 million "Campaign for America's Children," in hopes of fomenting popular support for vouchers through television and newspaper ads. In addition, he is founding chairman of Empower America, a conservative group that has lobbied for school vouchers, privatizing Social Security, and expanding Bush's proposal for tax cuts. Last year he reportedly considered running against Hillary Clinton for the Senate.
Forstmann founded the buyout firm Forstmann Little in 1978 with his late brother Nicholas. Recent investments have included a for-profit Internet college called Capella Education, the broadband firm XO Communications, and a for-profit hospital company called Community Health Systems. Forstmann's wealth is estimated at $800 million.
His work has made him some friends in high places. Forstmann is a confidant of Defense Secretary Donald Rumsfeld, who made a paper profit of $11 million when the financier managed the buyout of his firm, General Instrument Corporation.
-- Michael Scherer
