Campaign News

Ana Maria Archilla the co-executive director of Center for Popular Democracy, said that at first progressives "were worried about the political implications."

But "when Randy could say it in rural Wisconsin, in Paul Ryan, territory,” she continued, activists felt they had made a breakthrough.

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Jennifer Flynn Walker and Paul Davis are close friends, left-wing organizers who worked together as activists during the HIV/AIDS crisis of the 1990s and have trained hundreds of other activists since.

They’ve also both dedicated much of their past seven months to fighting Republicans’ efforts to repeal and replace Obamacare. But ask them what to make of the fight and you’ll hear wildly different answers.

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New York Times - November 14, 2014, by Binyamin Appelbaum - Jean Andre traveled from Queens to the Federal Reserve Board’s stately headquarters here on Friday to tell the people who make monetary policy that he needs their help. He cannot find regular work on film and photo shoots. The jobs he does find pay less.

The Fed’s chairwoman, Janet L. Yellen, agreed to meet with about 30 workers and activists, including Mr. Andre, in a gesture of concern for the plight of Americans searching for work and struggling to make a living.

For one hour on Friday, the workers sat in the Fed’s ornate conference room and told their stories to Ms. Yellen and other Fed officials, including three other members of the Fed’s board of governors — Stanley Fischer, the vice chairman; Lael Brainard; and Jerome H. Powell — who listened and asked questions.

“The Federal Reserve is too important of an institution to be insulated from the voices and perspectives of working families,” said Ady Barkan, a lawyer with the Center for Popular Democracy, an advocacy group based in Brooklyn that orchestrated the meeting. “We think that the Fed needs to listen more and be more responsive, and we’re very grateful for this first opportunity.”

The meeting was closed to the media. The workers described what they said, and the Fed declined to comment, citing a policy of silence about private meetings.

Mr. Barkan’s group is campaigning for the Fed to continue its stimulus campaign, citing the high level of unemployment, particularly in minority communities, and the slow pace of wage growth as evidence the economy still needs help. The group argued the Fed could help to drive up wages by keeping interest rates low.

Mr. Andre, 48, said two jobs were canceled this week. And instead of $400 a day for a print shoot, he said he now made $250 or $300.

“They tell me if I don’t take the job there’s lots of other people willing to work,” he said. “So what can I do? I have a family. I have to take it.”

Josh Bivens, an economist at the Economic Policy Institute, a liberal research group, said monetary policy would be “the single most important determinant of wage growth,” and that he was glad to see workers recognize the Fed’s importance.

A conservative group, American Principles in Action, criticized the meeting as “highly political” and inappropriate. It said it would seek a similar meeting to share its view that the Fed’s stimulus campaign is damaging the economy.

The labor and community groups at the meeting wore green T-shirts that said “What Recovery?” on the front, with a chart illustrating meager wage gains on the back. They are also pressing Ms. Yellen to change the way the Fed chooses the presidents of its regional banks.

The Federal Reserve Bank of Dallas said Thursday that its president, Richard W. Fisher, would step down March 19. Charles I. Plosser, president of the Federal Reserve Bank of Philadelphia, plans to retire at the beginning of March.

The Philadelphia Fed said shortly before the meeting on Friday that it had created an email address for inquiries about its presidential search process. It described the account, which will be maintained by the company conducting the search, Korn Ferry, as part of its commitment to conduct a “broad search.”

“I expect the same thing from Dallas,” said Connie Paredes, 42, who traveled to the meeting as a representative of the Texas Organizing Project, speaking at a rally outside the Fed before the group went inside. “We expect to be included in the process.”

Organizers from Dallas and Philadelphia said they would press for similar meetings with the presidents and board of the local Fed banks.

Source

Executive Summary

In the ten years since Hurricane Katrina, post-storm changes to the state’s charter school law have dramatically grown the number of charter schools in the state. Since 2005, charter school enrollment in the state has grown 1,188 percent. Through this growth, the Louisiana Department of Education’s Recovery School District—created to facilitate state takeover of struggling schools—has become the first charter-only school district in the country, with other states lining up to copy its model. Louisiana taxpayers have invested heavily, paying billions of dollars to charters and state takeover schools since the storm, including over $831 million in the 2014/2015 school year alone.

The rapid growth and massive investment in charter schools has been accompanied by a dramatic underinvestment in oversight, leaving Louisiana’s students, parents, teachers and taxpayers at risk of academic failures and financial fraud. The state’s failure to create an effective financial oversight system is obvious, as Louisiana charter schools have experienced millions in known losses from fraud and financial mismanagement so far, which is likely just the tip of the iceberg. According to standard forensic auditing methodologies, the deficiencies in charter oversight throughout Louisiana suggest tens of millions of dollars in undiscovered losses for the 2013-14 school year alone.

Download the full report here.

In this report, we identify three fundamental flaws with Louisiana’s financial oversight of charter schools:

Oversight depends too heavily on self-reporting by charter schools or the reports of whistleblowers. Louisiana’s oversight agencies rely almost entirely on audits paid for by the charters themselves and whistleblowers. While important to uncover fraud, neither method systematically detects or effectively prevents fraud. The general auditing techniques used in charter school reports do not uncover fraud on their own. The audits commissioned by the charter schools use general auditing techniques designed to expose inaccuracies or inefficiencies. Without audits specifically designed to detect and uncover fraud, however, state and local agencies will rarely detect deliberate fraud without a whistleblower. Inadequate staffing prevents the thorough detection and elimination fraud. Louisiana inadequately staffs its charter-school oversight agencies. In order to carry out high-quality audits of any type, auditors need enough time. With too few qualified people on staff—and too little training for existing staff—agencies are unable to uncover clues that might lead to fuller investigations and the discovery of fraud.

As the state has insufficiently resourced financial oversight, it has failed to create a structure that provides struggling schools and their students with a pathway to academic success. While underinvesting in the dissemination and implementation of successful strategies to lift academically struggling schools up, state lawmakers have continued to invest in both charter expansion and conversions of public schools to charters. Coupled with an unwillingness to help failing schools succeed, the rapid growth of charters has failed Louisiana children, families and taxpayers. Since 2005, approximately $700 million in public tax dollars have been spent on charter schools that currently have not achieved a C or better on the state’s grading system.

In this report we identify two fundamental flaws with Louisiana’s academic oversight of charter schools:

Underinvestment in systems that help struggling schools succeed. Lawmakers and regulators have invested in systems that set high standards and then close schools that fail to meet them, rather than helping them improve to meet the standards. This investment in a severe accountability system does not support schools achieve academic success. Heavy reliance on data that is vulnerable to manipulation. The state’s academic oversight system relies largely on sets of data that can be manipulated by regulators, authorizers, or the charters themselves. Without reliable data, schools, parents and the public have no way to accurately gauge academic quality at their schools.

To address these serious deficiencies in Louisiana’s system, we recommend the following:

Mandate New Measures Designed to Detect and Prevent Fraud

Charter school governing boards should be required to institute an internal fraud risk management program, including an annual fraud risk assessment. Charter school governing boards should be required to commission an annual audit of internal controls over financial reporting that is integrated with the audit of financial statements charter schools currently commission. The Louisiana Legislative Auditor should conduct regular fraud audits, prioritizing charter schools with heightened levels of fraud risk. Auditing teams should include members certified in financial forensics trained to detect fraud

Increase Financial Transparency & Accountability

Oversight agencies should create a system to categorize and rank charter audits by level of fraud risk they pose to facilitate public engagement. Center for Popular Democracy & Coalition for Community Schools 3 The Louisiana Legislative Auditor should create a dedicated charter school fraud hotline for whistleblowers. Charter school governing boards should post the findings of their annual fraud risk internal assessments on their websites. Oversight agencies should determine what steps the nonprofit governing boards and executives of charter schools have taken to guard against fraud over the past 10 years and issue a report to the public detailing their findings and recommendations. Charter school governing boards should provide parents of students enrolled in charter schools free access to all materials related to their fraud risk management program.

The state should impose a moratorium on new charter schools until the state oversight system is adequately reformed.

Redesign the System to Support Struggling Schools

Under the current system, when regulators find that a school is not performing well, they put the school on the “Intervention Ladder”. The Intervention Ladder should be replaced with mandatory hands-on long-term strategic support from the state and stakeholders. Lawmakers should invest additional resources to ensure that regulators have enough staff with the appropriate expertise to meet the significant turnaround needs in the state.

Redesign the Data Collection System

Lawmakers should mandate that underlying data comparators remain consistent from year-to-year to allow oversight officials and the public to accurately compare school performance. In cases where changes to underlying data are unavoidable, data should be presented using both old and new cut-scores for a period of three years. The state should invest in ongoing test erasure analysis. Regulators should implement a process to ensure that the school reported data used to calculate the School Performance Score (SPS) is reliable by conducting regular audits of school-reported data. The state and authorizers must make funding for regular data audits a priority. The Louisiana Legislative Audit should include a review of the LDOE’s data auditing in its regular audits of the agency. Finally, the legislature should mandate that all of the data used to calculate School Performance Scores be made available to the public, in its raw form.

Given the rapid and continuing expansion of state school takeovers and the charter school industry in the state through the investment of public dollars, Louisiana must act now to reform its oversight system. Without reform, Louisianans face many more years of failing schools and millions—if not billions—of dollars more lost to charter school fraud and financial mismanagement.

Download the full report here.