Let’s Be Real Episode 6: We’re Fed Up!
This episode, we take a look at a campaign that focuses on the Federal Reserve System and its impact on working people...
This episode, we take a look at a campaign that focuses on the Federal Reserve System and its impact on working people and people of color. We take you to a rally in front of the Federal Reserve Bank of New York where we spoke with two protesters about how the Fed impacts their communities. Then, we sit down with the Director of the Center for Popular Democracy’s Fed Up! Campaign to hear about the fight to put working people and communities of color at the center of the Fed’s decision-making process.
Read the full article here.
A Push to Give Steadier Shifts to Part-Timers
New York Times - July 15, 2014, by Steve Greenhouse - As more workers find their lives upended and their paychecks...
New York Times - July 15, 2014, by Steve Greenhouse - As more workers find their lives upended and their paychecks reduced by ever-changing, on-call schedules, government officials are trying to put limits on the harshest of those scheduling practices.
The actions reflect a growing national movement — fueled by women’s and labor groups — to curb practices that affect millions of families, like assigning just one or two days of work a week or requiring employees to work unpredictable hours that wreak havoc with everyday routines like college and child care.
The recent, rapid spread of on-call employment to retail and other sectors has prompted proposals that would require companies to pay employees extra for on-call work and to give two weeks’ notice of a work schedule.
Vermont and San Francisco have adopted laws giving workers the right to request flexible or predictable schedules to make it easier to take care of children or aging parents. Scott M. Stringer, the New York City comptroller, is pressing the City Council to take up such legislation. And last month, President Obama ordered federal agencies to give the “right to request” to two million federal workers.
The new laws and proposals generally require an employer to discuss a new employee’s situation and to consider scheduling requests, but they do not require companies to accommodate individual schedules. Many businesses have opposed these measures, arguing that they represent improper government intrusion into private operations.
In a referendum last year, voters in SeaTac, Wash. — the community near Seattle that also passed the nation’s highest minimum wage, $15 an hour for some workers — approved a measure that bars employers from hiring additional part-time workers if any of their existing part-timers want more hours. The move was a response to complaints from workers that they were not scheduled for enough hours to support their families. Some San Francisco lawmakers are seeking to enact a similar regulation.
Representative George Miller of California, the senior Democrat on the House Committee on Education and the Workforce, plans to introduce legislation this summer that would require companies to pay their employees for an extra hour if they were summoned to work with less than 24 hours’ notice. He is also proposing a guarantee of four hours’ pay on days when employees are sent home after just a few hours — something that happens in many restaurants and retailers when customer traffic is slow.
That happened to Mary Coleman. After an hourlong bus commute, she arrived at her job at a Popeyes in Milwaukee only to have her boss order her to go home without clocking in — even though she was scheduled to work. She was not paid for the day.
“It’s becoming more and more common to put employees in a very uncertain and tenuous position with respect to their schedules, and that ricochets if workers have families or other commitments,” Mr. Miller said. “The employer community always says it abhors uncertainty and unpredictability, but they are creating an employment situation that has huge uncertainty and unpredictability for millions of Americans.”
While Mr. Miller acknowledges that his bill is unlikely to be enacted anytime soon — partly because of opposition from business (and a Republican-controlled House), he said the bill would bring attention to what he called often callous scheduling practices. His bill, similar to one in the Senate sponsored by Bob Casey, Democrat of Pennsylvania, has a “right to request” provision that would bar employers from denying requests from workers with caregiving or school-related conflicts unless they had a “bona fide” business reason.
Corporate groups protest that such measures undercut efficiency and profits. “The hyper-regulation of the workplace by government isn’t conducive to a positive business climate,” said Scott DeFife, an executive vice president of the National Restaurant Association. “The more complications that government creates for operating a business, the less likely we’ll see a positive business environment that’s good for the economy and increasing jobs.”
Mr. DeFife pointed out that the daily ebb and flow of customers necessitated flexibility in scheduling.
David French, a senior vice president of the National Retail Federation, said many people chose careers in retail because of the flexible work hours.
“These proposals may sound reasonable, but if you unpack them, they could be very harmful,” Mr. French said. “Where employers and employees now work together to solve scheduling problems, you’ll have a very bureaucratic environment where rigid rules would be introduced.”
While many of these workers are not unionized, the labor movement has often battled against part-time work and ever-changing schedules. But as unions have grown weaker, employers have felt freer to employ part-timers and use more volatile scheduling. Unions still push for workers to get more hours — and those pressures are one reason Macy’s and Walmart have adopted programs letting employees claim additional, available shifts by going onto their employers’ websites.
In a climate where many retailers, restaurants and other businesses are still struggling after the recession, economists point to the increased uncertainty faced by employees. About 27.4 million Americans work part time. The number of those part-timers who would prefer to work full time has nearly doubled since 2007, to 7.5 million. According to Bureau of Labor Statistics data, 47 percent of part-time hourly workers ages 26 to 32 receive a week or less of advance notice for their schedule.
In a study of the data, two University of Chicago professors found that employers dictated the work schedules for about half of young adults, without their input. For part-time workers, schedules on average fluctuated from 17 to 28 hours a week.
“Frontline managers face pressure to keep costs down, but they really don’t have much control over wages or benefits,” said Susan J. Lambert, a University of Chicago professor who interpreted the data. “What they have control over is employee hours.”
Ms. Lambert said flexible, not rigid or unpredictable, hours would become as important an issue as paid family leave. “The issue of scheduling is going to be the next big effort on improving labor standards,” she said. “To reduce unpredictability is important to keep women engaged in the labor force.”
David Chiu, president of the San Francisco Board of Supervisors, has created a business-labor group that is trying to find the middle ground.
“We’ve learned that predictability in hours is important not just to help workers juggle their lives, but for economic security — to help workers take a second job to live in expensive cities like San Francisco or New York,” Mr. Chiu said. “We’re confident that we can move forward with policies that work for workers as well as business’s bottom line.”
Sharlene Santos says her part-time schedule at a Zara clothing store in Manhattan — ranging from 16 to 24 hours a week — is not enough. “Making $220 a week, that’s not enough to live on — it’s not realistic,” she said.
After Ms. Santos and four other Zara workers recently wrote to the company, protesting that they were given too few hours and received just two days’ notice for their schedule, the company promised to start giving them two weeks’ advance notice.
Fatimah Muhammad said that at the Joe Fresh clothing store where she works in Manhattan, some weeks she was scheduled to work just one day but was on call for four days — meaning she had to call the store each morning to see whether it needed her to work that day.
“I felt kind of stuck. I couldn’t make plans,” said Ms. Muhammad, who said she was now assigned 25 hours a week.
A national campaign — the Fair Workweek Initiative — is pushing for legislation to restrict these practices in places including Milwaukee, New York and Santa Clara, Calif. The effort includes the National Women’s Law Center, the United Food and Commercial Workers union and the Retail Action Project, a New York workers’ group.
“Too many workers are working either too many or too few hours in an economy that expects us to be available 24/7,” said Carrie Gleason, director of the Fair Workweek Initiative and an organizer at the Center for Popular Democracy, a national advocacy group. “It’s gotten to the point where workers, especially women workers, are saying, ‘We need a voice in how much and when we work.' ”
Source
Protesters backing undocumented immigrants locked out of Bank of America HQ
Protesters backing undocumented immigrants locked out of Bank of America HQ
The south doors of Bank America’s corporate headquarters were locked at 10:30 a.m. Monday, to keep out a immigrant...
The south doors of Bank America’s corporate headquarters were locked at 10:30 a.m. Monday, to keep out a immigrant advocates who tried to enter the building to advocate for undocumented immigrants.
A dozen protesters sought to enter a branch on the building’s first floor, to present staff with a letter asking that Bank of America distance itself from elected officials who support the immigration policies of President Donald Trump.
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The Silver Lining of the New Gilded Age: Fewer Targets
The Silver Lining of the New Gilded Age: Fewer Targets
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York...
Members of groups including Hedge Clippers and the Center for Popular Democracy protest outside Blackstone's New York headquarters in January.
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Activists Deliver Climate Plan for Just Transition to EPA Offices Nationwide
On January 19, activists at each of the Environmental Protection Agency's 10 regional offices issued their own...
On January 19, activists at each of the Environmental Protection Agency's 10 regional offices issued their own corrective on the Obama administration's Clean Power Plan. Days before the end of the federal comment period, the Climate Justice Alliance's Our Power Campaign - comprised of 41 climate and environmental justice organizations - presented its Our Power Plan, which identifies "clear and specific strategies for implementing the Clean Power Plan, or CPP, in a way that will truly benefit our families' health and our country's economy."
Introduced last summer, the CPP looks to bring down power plants' carbon emissions by 32 percent from 2005 levels within 15 years. The plan was made possible by Massachusetts vs. EPA, a 2007 Supreme Court ruling which mandates that the agency regulate greenhouse gases as it has other toxins and pollutants under the Clean Air Act of 1963. Under the CPP, states are each required to draft their own implementation plans by September of this year, or by 2018 if granted an extension. If they fail to do so, state governments will be placed by default into an interstate carbon trading, or "Cap and Trade," system to bring down emissions.
Michael Leon Guerrero, the Climate Justice Alliance's interim coordinator, was in Paris for the most recent round of UN climate talks as part of the It Takes Roots Delegation, which brought together over 100 organizers from North American communities on the frontlines of both climate change and fossil fuel extraction. He sees the Our Power Plan as a logical next step for the group coming out of COP21, especially as the onus for implementing and improving the Paris agreement now falls to individual nations.
"Fundamentally," he said, "we need to transform our economy and rebuild our communities. We can't address the climate crisis in a cave without addressing issues of equity."
The Our Power Plan, or OPP, is intended as a blueprint for governments and EPA administrators to address the needs of frontline communities as they draft their state-level plans over the next several months. (People living within three miles of a coal plant have incomes averaging 15 percent lower than average, and are eight percent more likely to be communities of color.) Included in the OPP are calls to bolster what CJA sees as the CPP's more promising aspects, like renewable energy provisions, while eliminating proposed programs they see as more harmful. The CPP's carbon trading scheme, CJA argues, allows polluters to buy "permissions to pollute," or carbon credits, rather than actually stemming emissions.
The OPP further outlines ways that the EPA can ensure a "just transition" away from fossil fuels, encouraging states to invest in job creation, conduct equity analyses and "work with frontlines communities to develop definitions, indicators, and tracking and response systems that really account for impacts like health, energy use, cost of energy, climate vulnerability [and] cumulative risk."
Lacking support from Congress, the Obama administration has relied on executive action to push through everything from environmental action to comprehensive immigration reform. The Clean Power Plan was central to the package Obama brought to Paris. Also central to COP21 was US negotiators' insistence on keeping its results non-binding, citing Republican lawmakers' unwillingness to pass legislation.
Predictably, the CPP has faced legal challenges from the same forces, who decry the president for having overstepped the bounds of his authority. Republican state governments, utility companies, and fossil fuel industry groups have all filed suit against the CPP, with many asking for expedited hearings. Leading up the anti-CPP charge in Congress has been Senate Majority Leader Mitch McConnell, who hascalled the plan a "regulatory assault," pitting fossil fuel industry workers against the EPA. "Here's what is lost in this administration's crusade for ideological purity," he wrote in a November statement, "the livelihoods of our coal miners and their families."
Organizers of Tuesday's actions, however, were quick to point out that the Our Power Plan is aimed at strengthening - not defeating - the CPP as it stands. Denise Abdul-Rahman, of NAACP Indiana, helped organize an OPP delivery at the EPA's Region 5 headquarters in Chicago, bringing out representatives from Black Lives Matter Minneapolis, National People's Action and National Nurses United.
"We appreciate the integrity of the Clean Power Plan," she said. "However, we believe it needs to be improved - from eliminating carbon trading to ensuring that there's equity. We want to improve CPP by adding our voices and our plan, and we encourage the EPA to make it better." Four of the six states in that region - which includes Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin - are suing the EPA.
Endorsed by the National Domestic Workers' Alliance, Greenpeace and the Center for Popular Democracy, among other organizations, yesterday's national day of action on the EPA came as new details emerged in Flint, Michigan's ongoing water crisis - along with calls for Michigan Gov. Rick Snyder's resignation and arrest. The EPA has also admitted fault for its slow response to Flint residents' complaints, writing in a statement this week that "necessary [EPA] actions were not taken as quickly as they should have been."
Abdul-Rahman connected the water crisis with the need for a justly-implemented CPP. "The Flint government let their community down by not protecting our most precious asset, which is water," she said. "The same is true of air: we need the highest standard of protecting human beings' air, water, land."
Source: Truthout
Contractors and Workers at Odds Over Scaffold Law
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of...
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of the skyscraper, lawmakers in New York State enacted a law intended to safeguard construction workers who were finding themselves facing increasing dangers while working at ever-greater heights.
That measure, which became known as the Scaffold Law, required employers on building sites to ensure the safety of laborers working above the ground. Since then, some form of the legislation has remained on the books despite repeated attempts to repeal it.
But a lobby of contractors, property owners and insurers has in recent months renewed a campaign against the law, arguing that no less than the future of the state’s construction industry is at stake.
They argue that the law is antiquated and prejudicial against contractors and property owners, and essentially absolves employees of responsibility for their own accidents, leading to huge settlements. The payouts, they contend, have in turn led to skyrocketing insurance premiums that are hampering construction and the state’s economic growth.
On Tuesday, a coalition of contractors, including a newly formed alliance of firms owned by women and minorities, announced the start of an advertising and lobbying blitz in Albany and New York City. But a counter-lobby of unions, workers’ advocates and trial lawyers is pushing back just as fiercely. The law, they argue, is essential to ensuring the safety of workers in some of the world’s most dangerous jobs, particularly those employed by shoddy contracting firms that cut corners to save money. The law, they say, holds developers and contractors accountable for keeping job sites safe.
Gov. Andrew M. Cuomo this week acknowledged the politically loaded atmosphere surrounding the Scaffold Law, but suggested that he was open to the possibility of modifying the law.
The law states that contractors and property owners are responsible for ensuring that scaffolds, hoists and other devices that enable aboveground building construction and repair “shall be constructed, placed and operated as to give proper protection to a person so employed.”
When injuries result from a violation of those terms, the law says, contractors and owners are liable. There is no mention of worker responsibility. Under the law, however, the plaintiff still must show that a violation of the law’s standards occurred and that the violation caused the injury.
But those seeking to change the law want to incorporate a standard of “comparative negligence.” This amendment — described in a state bill submitted earlier this year — would require a jury or arbiter to consider whether the liability of the defendants, and thus the amount of damages, should be reduced for cases in which the worker’s negligence or failure to follow safety procedures contributed to the accident.
Opponents argue that the amendment would reduce the incentive for the property owner and contractors to take necessary safety precautions.
“This law protects both union and nonunion workers and creates a sense of accountability on these job sites,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, an umbrella group for unionized construction workers. “If the law was modified, the workers would lose their voice.”
But those seeking to alter the law say the amendment would not eliminate the owners’ and contractors’ motivation to keep their workplaces safe because they would still face the possibility of shouldering large payouts, even if they were found only partly responsible for an accident.
“The notion that a contractor or owner would want to do anything to undermine the safety of the worker on the job doesn’t make sense,” said Pamela Young, associate general counsel of the American Insurance Association.
Workers’ advocates argue that erosion of the Scaffold Law would have a disproportionate impact on minority and immigrant laborers, who, the advocates say, are more likely to work for nonunion companies that may not provide proper safety training and equipment.
Immigrants, the advocates said, are less likely to speak the same language as their bosses on a job site and more likely to fear being fired if they demand a safer workplace.
From 2003 to 2011, federal safety regulators investigated 136 falls “from elevation” that killed workers on construction sites in New York, according to a recent report by Center for Popular Democracy, an advocacy group. Of those workers, about 60 percent were Latino, foreign-born or both. That rate rose to 88 percent among fatal falls in New York City.
Some trial lawyers have been effective at using the law to secure large settlements. Of the 30 largest settlements in 2012, at least 14 were in cases brought under state labor laws and most of those involved falls from ladders or scaffolding, according to The New York Law Journal. The awards ranged from $3 million to $15 million.
Weislaw, a Polish immigrant, was the plaintiff in a liability case that was settled last month. (He spoke on the condition that his surname not be used in this article, out of concern for his privacy.) He had been part of a crew repairing the roof of a one-story public school building in Long Beach, on Long Island. While he was working on the roof one spring day in 2010, he was concentrating so hard on his task that he lost track of the edge of the roof and fell, he said, suffering multiple fractures.
“I will most likely never be able to return to work,” he said.
Weislaw filed a lawsuit under the Scaffold Law arguing that he had not been provided with proper protection, such as a safety line or a spotter.
The case settled for $2.7 million, said David Scher, a lawyer from the firm that represented him.
Critics of the Scaffold Law say the way it is written makes these sorts of cases easy to win.
“It’s a gold mine for the plaintiffs’ bar,” said Mike Elmendorf, president and chief executive of Associated General Contractors of New York State. “When you get one of these cases, it’s largely about how much it’s going to cost.”
These high payouts, he and others contend, have driven up insurance rates, knocking smaller contractors, particularly those run by minorities and women, out of business and forcing others to suspend work, costing thousands of jobs.
They argue that the impact is as high on government projects as it is on private ones, and that the soaring cost of liability insurance is forestalling the repair and construction of public works projects, such as schools, bridges and roads. The New York City School Construction Authority said in a statement on Monday that its liability insurance costs for 2014 would be nearly as much as those for the three-year period from 2011 to 2013.
But in recent weeks, the law’s defenders have employed a new gambit, demanding that the insurance companies open their accounting ledgers to prove whether the Scaffold Law is, in fact, responsible for the rate increases. Insurance executives have vowed to fight any demands to disclose proprietary information that might somehow undermine their competitive advantages.
State Assemblyman Francisco P. Moya, a Democrat who represents a heavily immigrant and Latino area of Queens, said he planned to submit a bill that would expand reporting requirements for insurance companies and help lawmakers assess whether the Scaffold Law needed to be changed.
“Show us how much the payouts are,” Mr. Moya said. “Once we see that, we’ll have a better understanding.”
Source
The Federal Reserve Board's Plan to Kill Jobs
Truthout - March 2, 2015, by Dean Baker - There is an enormous amount of political debate over various pieces of...
Truthout - March 2, 2015, by Dean Baker - There is an enormous amount of political debate over various pieces of legislation that are supposed to be massive job killers. For example, Republicans lambasted President Obama’s increase in taxes on the wealthy back in 2013 as a job killer. They endlessly have condemned the Affordable Care Act as a jobs killer. The same is true of proposals to raise the minimum wage.
While there is great concern in Washington over these and other imaginary job killers, the Federal Reserve Board is openly mapping out an actual job killing strategy and drawing almost no attention at all for it. The Fed’s job killing strategy centers on its plan to start raising interest rates, which is generally expected to begin at some point this year.
The Fed’s plans to raise interest rates are rarely spoken of as hurting employment, but job-killing is really at the center of the story. The rationale for raising interest rates is that inflation could begin to pick up and start to exceed the Fed’s current 2.0 percent target, if the Fed doesn’t slow the economy with higher interest rates.
Higher interest rates slow the economy by discouraging people from borrowing to buy homes or cars. They will also have some effect in discouraging businesses from investing. With reduced demand from these sectors, businesses will hire fewer workers. This will weaken the labor market, which means workers have less bargaining power. If workers have less bargaining power, they will be less well-situated to get pay increases. And if wages are not rising there will be less inflationary pressure in the economy.
The potential impact of Fed rate hikes on jobs is large. Suppose the Fed raises interest rates enough to shave 0.2 percentage points off the growth rate, say pushing growth for the year down from 2.4 percent to 2.2 percent. If we assume employment growth drops roughly in proportion to GDP growth, this would imply a reduction in the rate of job growth of almost 10 percent. If the economy would have otherwise created 2.4 million jobs over the course of the year, the Fed’s rate hikes would have cost the economy more than 200,000 jobs in this scenario.
For comparison purposes, we are having a big fight over the Keystone pipeline. The proponents of the pipeline point to the jobs created by building a pipeline as an important justification, even if the oil being pumped through the pipeline may cause enormous damage to the environment. According to the State Department’s analysis, building the pipeline would create 21,000 for two years. This pipeline related jobs gain has been widely touted in the media and is supposed to make it difficult for many members of Congress to go along with President Obama in opposing Keystone.
Yet, the Fed can easily destroy ten times as many jobs with a set of interest rate hikes this year with its actions passing largely unnoticed. In fact, the impact of Fed interest rate hikes on jobs can easily be far larger than this 200,000 number. If the Fed decides that the unemployment rate should not fall below a certain level (5.4 percent is a number is often used), then it could be costing the economy millions of jobs if the economy could actually sustain a considerably lower level of unemployment as it did in the late 1990s.
To be clear, Federal Reserve Board Chair Janet Yellen and her colleagues on the Fed’s Open Market Committee (FOMC) that determines interest rates are not evil people sitting around figuring out how to ruin the lives of American workers. The Fed has a legal mandate to control inflation, in addition to its mandate to sustain high levels of unemployment. If they raise interest rates it will be because they fear inflationary pressures will build if they let the economy continue to grow and unemployment to fall.
But this is inevitably a judgment call. The call is based on both their assessment of the risk of inflation and also the relative harm from higher rates of inflation as opposed to higher rates of unemployment. It is likely that the members of the FOMC, who largely come from the financial industry, are much more concerned about inflation than the population as a whole. They are also likely to be less concerned about unemployment. These are people who tend to read about unemployment in the data, not to see it themselves or among their friends and family members.
This is why it is important that the public be paying attention to the Fed’s interest rate policies and let them know how they feel about raising interest rates to kill jobs. The Center for Popular Democracy has organized an impressive grassroots campaign around the Fed’s interest rate policies. Those who don’t want to see the government deliberately trying to kill jobs might want to join in.Source
Report: Millions of Dollars in Fraud, Waste Found in Charter School Sector
The Washington Post - April 28, 2015, by Valerie Strauss - A new report released on Tuesday details fraud and waste...
The Washington Post - April 28, 2015, by Valerie Strauss - A new report released on Tuesday details fraud and waste totaling more than $200 million of uncovered fraud and waste of taxpayer funds in the charter school sector, but says the total is impossible to know because there is not sufficient oversight over these schools. It calls on Congress to include safeguards in legislation being considered to succeed the federal No Child Left Behind law.
The report, titled “The Tip of the Iceberg: Charter School Vulnerabilities To Waste, Fraud, And Abuse,” was released jointly by the nonprofit organizations Alliance to Reclaim Our Schools and the Center for Popular Democracy. It follows a similar report released a year ago by the same groups that detailed $136 million in fraud and waste and mismanagement in 15 of the 42 states that operate charter schools. The 2015 report cites $203 million, including the 2014 total plus $23 million in new cases, and $44 million in earlier cases not included in last year’s report.
It notes that these figures only represent fraud and waste in the charter sector uncovered so far, and that the total that federal, state and local governments “stand to lose” in 2015 is probably more than $1.4 billion. It says, “The vast majority of the fraud perpetrated by charter officials will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud.”
The report makes these policy recommendations:
■ Mandate audits that are specifically designed to detect and prevent fraud, and increase the transparency and accountability of charter school operators and managers. ■ Clear planning-based public investments to ensure that any expansions of charter school investments ensure equity, transparency, and accountability. ■ Increase transparency and accountability to ensure that charter schools provide the information necessary for state agencies to detect and prevent fraud.
It also says:
State and federal lawmakers should act now to put systems in place to prevent fraud, waste, abuse and mismanagement. While the majority of state legislative sessions are coming to an end, there is an opportunity to address the charter school fraud problem on a federal level by including strong oversight requirements in the Elementary and Secondary Education Act (ESEA), which is currently being debated in Congress. Unfortunately, some ESEA proposals do very little reduce the vulnerabilities that exist in the current law. If the Act is passed without the inclusion of the reforms outlined in this report, taxpayers stand to lose millions more dollars to charter school fraud, waste, abuse, and mismanagement.
The charter school sector has expanded significantly in the last decade and now educates about 5 percent of the students enrolled in public schools. The Obama administration has supported the spread of charter schools; President Obama’s proposed budget for fiscal year 2016 includes $375 million specifically for charters, a 48 percent increase over last year’s actual budget.
Proponents say charters offer choices for parents and competition for traditional public schools. Critics say that most charters don’t perform any better — and some of them worse — than traditional public schools, take resources away from school districts, and are part of an effort to privatize public education.
The report says that any “effective, comprehensive fraud prevention system” should include:
■ Taking proactive steps to educate all staff and board members about fraud; ■ Ensuring that one executive-level manager coordinates and oversees the fraud risk assessment and reports to the board of directors, oversight bodies, and school community; ■ Implementing reporting procedures that include conflict disclosure, whistleblower protections, and a clear investigation process; ■ Undergoing and posting a fraud risk assessment conducted by a consultant expert in applicable standards, key risk indicators, anti-fraud methodology, control activities, and detection procedures; and ■ Developing and implementing quality assurance, continuous monitoring, and, where necessary, correction action plans, with clear benchmarks and reporting
The report details cases across the country, among them:
The District of Columbia In February 2015, the DC Public Charter School Board unanimously voted to revoke the charter of the Dorothy I. Height Community Academy Public Charter School. The DC Attorney General is suing the founder, Kent Amos, for diverting public education funding to a private company for his personal profit. That private management company paid Amos more than $2.5 million over the last 2 years. Over the past 10 years, the school has paid the private entity more than $14 million and, while costs to the private company declined over that time, management fees rose. The charter board’s oversight report showed “no pattern of fiscal mismanagement.” Members of the DC Public Charter School Board have described their limited ability to oversee for-profit management companies, which face no requirement to disclose salaries or other pertinent information.
Michigan In April 2014, Steven Ingersoll, founder of Grand Traverse Academy, was convicted on federal fraud and tax evasion. He did not report $2 million of taxable income in 2009 and 2010. The school’s audit revealed a $2.3 million prepayment to Ingersoll’s school management company. The school’s later decision to write down $1.6 million of the loan put the school in a deficit position for the first time. Ingersoll then used half of a $.8 million loan for school construction to pay down some of his debt to the school.13 After the founder’s ouster, his daughter-in-law continued to handle the finances of the school.
Ohio In January 2015, the state auditor released a report of the results of unannounced visits by inspectors to 30 charter schools. In nearly half of the schools, the school-provided headcount was significantly higher than the auditors’ headcount. Schools are funded based on headcount, so these inflated figures amount to taxpayer dollars siphoned away from students. Among the seven schools with the most extreme variances between reported head count and the auditors’ headcount, almost 900 students were missing, at a cost of roughly $5.7 million.16 Auditors identified eight other schools with troubling, but less significant variances. In June 2014, a grand jury indicted the superintendent and 2 board members of Arise! Academy in Dayton of soliciting and accepting bribes in exchange for awarding a “lucrative” consulting contract to a North Carolina-based company. The contract was worth $420,919 and the charter personnel received kickbacks in the form of cash, travel, and payments to a separate business.
California In July 2014, the Los Angeles Unified School District performed a forensic audit of Magnolia Public Schools. They found that the charter-school chain used education dollars to pay for six nonemployees’ immigration costs and could not justify $3 million in expenses over four years to outsource curriculum development, professional training, and human resources services that the school itself reported doing.
The Government Should Guarantee Everyone a Good Job
Progressives have begun to dream more boldly. We have graduated from a public option to single payer. From lower...
Progressives have begun to dream more boldly. We have graduated from a public option to single payer. From lower sentences to eliminating cash bail. From motor-voter to automatic-voter registration. From affordable to free college. And from a $15 minimum wage to guaranteed good jobs for all.
Read the full article here.
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