City Council overrides Mayor Bloomberg’s veto of paid-sick leave bill in early morning session
New York Daily News - June 27, 2013, by Tina Moore & Erin Durkin - The City Council overrode Mayor Bloomberg’s veto Thursday and made New York the largest city in the country to require paid...
New York Daily News - June 27, 2013, by Tina Moore & Erin Durkin - The City Council overrode Mayor Bloomberg’s veto Thursday and made New York the largest city in the country to require paid sick leave for workers.
The council also approved the city's new $70 billion budget, held Madison Square Garden at a 10-year operating permit and abolished a ban on brunch before noon at outdoor cafes.
The veto override came after a protracted battle over the paid sick-leave legislation that was first proposed in 2009.
Council Speaker Christine Quinn brought the bill to the floor for a vote in May under intense pressure from political opponents and labor unions. Bloomberg then vetoed the measure, saying it would damage businesses.
The legislation forces tens of thousands of city businesses with at least 20 employees to offer five paid sick days a year beginning in April 2014.
The following year, the mandate would extend to businesses with at least 15 workers.
One million workers eventually will be covered by the bill, which also prevents companies from firing employees for taking unpaid sick days.
Before the vote, bill sponsor Gale Brewer (D-Manhattan) led a rally on City Hall’s steps in support of the override, boasting that “nobody will be fired if they are ill."
Union Local 32BJ President Hector Figueroa said New York started a movement that would sweep across the country.
“We are going to take this legislation now to other states and other cities,” he said. “People don’t need to be worried anymore about losing their job because they have to take care of a loved one.”
The $70 billion budget passed by the Council does not include tax increases and provides $58 million for the New York City Housing Authority to avoid most of 500 threatened layoffs.
The plan also saves 20 fire companies that Bloomberg’s budget had proposed shutting, keeps city pools open and restores $144 million for thousands of child care and after-school seats that were at risk.
The Council also voted to give Madison Square Garden a 10-year permit to continue operating at its current location over Pennsylvania Station.
The Garden had requested permission to operate at the site in perpetuity. Last month, the city planning commission approved a 15-year extension.
But Quinn said finding a new home for the arena was the only way to build a new Penn Station and called for a commission to find a new location in Manhattan. A representative for the Garden declined to comment.
The council also voted to abolish a law that prevented cafes from serving brunch outdoors before noon, changing the start time to the a.m.
The old restriction was “silly and it’s outdated and deserves to be changed,” Councilman Dan Garodnick (D-Manhattan) said. “We have found that that rule is not really serving anybody. It is a burden on small business and it is an obstacle to the many brunch loving New Yorkers out there.”
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Systemic Fraud Found In GOP-Endorsed Charter Schools
Atlas Left - May 24, 2014, by Josh Kilburn - The House of Representatives recently passed a bill that would grant $3 million in taxpayer money to charter schools; schools that both Democrats and...
Atlas Left - May 24, 2014, by Josh Kilburn - The House of Representatives recently passed a bill that would grant $3 million in taxpayer money to charter schools; schools that both Democrats and Republicans are lining up behind. In the wake of this, Ring of Fire took a critical eye to some of the rampant abuses in the system with guest and Bill Moyers.com senior digital producer, Joshua Hollands, present to help explain what it meant.
While discussing how abused the system is, Joshua Holland referenced a report by Integrity in Education and the Center for Popular Democracy in regards to the systematic abuse and waste in charter schools:
[They found] in fifteen states, just fifteen states they looked at, they found $140 million dollars in public funds that were lost to fraud, waste, and abuse . . . This is all taxpayer money, so, that’s right. What they found, for example, was using public education dollars, these private operators were using them to prop up other businesses. There was an incident where somebody was feeding these public dollars into their health food store. In another instance, there was somebody who was using these dollars to make repairs on their apartment complex that they’d rented out. This again is somewhat unsurprising given that you have such limited oversight.And the reason for that limited oversight? Charter schools try to have it both ways; when it comes to public money, they’re suddenly public institutions. When it comes to public oversight, they change the color of their scales and become private institutions with “proprietary secrets.”
There are other problems as well; charter school teachers are paid less than public school teachers, administrations are paid more, and they’re less likely to be unionized than public school teachers. And that’s the union busing angle: the private sector unionization is at an all time low — only 7%. The majority of unionized workers are in the public sector, which is what the big businesses are targeting in an systematic, widespread anti-union, anti-worker putsch to restore our nation to the gilded glory days of the 1870s and 1880s.
Our public schools are not the problem. In wealthy districts, the public schools are top in the world as far as reading, writing, and other testing goes. It’s only in the poorer districts, where childhood poverty is rampant, that we find the lower numbers pulling down the average. Since “we tolerate a high level of childhood poverty relative to other nations,” in the words of Joshua Holland, and poor children don’t preform as well as their wealthy counterparts do, low test scores should come as no surprise. Out of 35 nations tested, the United States rates 34 in child poverty; the only country below us is Romania. And until we do something about the rampant poverty, instead of blaming it on the teachers, the problem won’t be going away.
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Markets to Fed: See you next year
MARKETS TO FED: SEE YOU NEXT YEAR! — Asia followed Wall Street higher on hopes the Fed might take weak jobs data into account and wait until next year to hike rates. … Reuters: “...
MARKETS TO FED: SEE YOU NEXT YEAR! — Asia followed Wall Street higher on hopes the Fed might take weak jobs data into account and wait until next year to hike rates. … Reuters: “Fading expectations that the U.S. Federal Reserve will raise interest rates this year and a bounce in oil and commodity prices helped lift Asian stocks to two-week highs on Tuesday …
“‘One of the two big persistent concerns has faded, so investors are taking risks,’ said Masashi Oda, senior investment officer at Sumitomo Mitsui Trust Bank, referring to expectations of a near-term Fed hike. … Japanese shares garnered further momentum from speculation that the Bank of Japan might expand its massive stimulus program to support the flagging economy”http://www.reuters.com/article/2015/10/06/us-global-markets-idUSKCN0S001I20151006
M.M. SIDEBAR — Seems like wishful thinking. The FOMC is almost certain to hit the liftoff button by December unless jobs growth really falls off a cliff, which appears unlikely based on other data. It remains possible that both August and September jobs figures will get revised higher. And even a slightly sub-200K pace is enough to keep unemployment dropping to what the Fed generally considers full employment (though nobody actually knows exacly what full employment is). Of course a messy debt limit fight actually could push the Fed off into 2016 but it would likely take markets down with it.
“FED UP” PROTESTERS TO HIT PHILLY — POLITICO's Zachary Warmbrodt: “Activists lobbying against a Federal Reserve interest rate increase as part of the so-called ‘Fed Up’ campaign are planning to hold a protest targeting new Federal Reserve Bank of Philadelphia president Patrick Harker on Tuesday afternoon. Around 15-20 people including workers, small business owners and clergy are expected to participate in the protest, which is aimed at pressuring Harker to meet with the coalition and take a tour of low-income neighborhoods …
“Kendra Brooks, who leads the local Fed Up coalition and is an organizer for Action United, is attending Harker's event but says she has been urging him to meet with more members of the community beyond the heads of non-profits and corporations … Brooks tried to get a commitment from Harker at the Fed's symposium in Jackson Hole, and their chat is on YouTube:https://www.youtube.com/watch?v=2h-GN7cHDAc
WILL HILLARY FLIP FLOP ON TPP? — POLITICO's Victoria Guida: “Hillary Clinton has presented herself as a skeptic of the biggest trade deal in history, saying this summer that ‘we should prepared to walk away’ from the 12-nation Trans-Pacific Partnership unless it boosts Americans' wages and national security. But with a deal announced Monday after months of backstage wrangling, Clinton will be under intense pressure to take a stance.
“The deal is one of the most ambitious items left on President Barack Obama's White House bucket list. But his former secretary of state owns it too, even though she has expressed increasing ambivalence about its details and could soon disown it outright, as some in her circle have suggested. … [R]eacting to the polarizing TPP deal is one of the most excruciating policy decisions of her campaign thus far - and far more politically perilous with Democratic primary voters than her backing of Obama's Iran deal.” http://www.politico.com/story/2015/10/hillary-clinton-trade-dilemma-214456
BIGGEST TPP WINNER: JAPANESE AUTO MAKERS — Per Bloomberg’s list of winners under the trade deal: “Japanese car and auto-parts makers may be the biggest winners, as they get cheaper access to the U.S., the industry’s biggest export market” https://www.bloomberg.com/news/articles/2015-10-06/tpp-trade-deal-who-stands-to-benefit-suffer-in-asia-pacific
FIRST LOOK: “TAX HAVEN SEX MANSION” — Can't resist a headline like that, eh? Bloomberg Businessweek piece up at 7:00 a.m. by Zeke Faux “investigates how Abe Zeines and Muir Hurwitz, two sons of an ultra-religious Jewish neighborhood in Brooklyn piloted a shady new kind of finance — ‘merchant cash advance’ — made a fortune, and then saw it all come to an end.” The two now live in a "tax-haven sex mansion in Puerto Rico.” As one does. https://www.bloomberg.com/authors/AP5w7epl1Xo/zeke-faux
LITAN RESPONDS — Bob Litan writes in FORTUNE: “Sen. Warren clearly disagrees with our study, but rather than address its reasoning and facts, she claimed my disclosure was vague (which it was not) and that I was misusing my non-resident perch at Brookings by identifying that position in a footnote (a newly established Brookings rule of which I was unaware but promised Brookings I would not run afoul of again), though I never mentioned my Brookings affiliation at the hearing. …
“I can only speculate why Sen. Warren has been so interested in our research, but I suspect it is because, even with its disclosed sponsor, the study exposed two major weaknesses in Labor’s proposal — which the Department may correct when it issues its final rule. But if it does not, these two points, at least in my view, make the rule susceptible to being overturned by a court as being arbitrary and capricious (or failing a benefit-cost test) if it is legally challenged” http://fortune.com/2015/10/05/elizabeth-warren-robert-litan-u-s-department-of-labor/
Litan’s pithy email response to M.M. on the whole affair: “Life in the big city.”
GOOD TUESDAY MORNING — Crazy Monday Night Football game. The Lions had a surprising road victory over the Seahawks in their grasp only to have Kam Chancellor poke the ball out of Calvin Johnson’s hands at the goal line. The Seahawks then illegally batted the ball out of the end zone for the touchback but the refs missed it. Should have been Lions ball at the goal line. Crushing blow. Massive officiating mistake. Email me at bwhite@politico.com and follow me on Twitter (like Kam Chancellor does!) @morningmoneyben.
THIS MORNING ON POLITICO PRO FINANCIAL SERVICES — Adam Behsudi on the TPP currency side deal that Congress might not like – [https://www.politicopro.com/financial-services/story/2015/10/pro-trade-tppcurrency-behsudi-056469] and to get Morning Money every day before 6 a.m.-- please contact Pro Services at (703) 341-4600or info@politicopro.com
** A message from Grant Thornton LLP: The tax code puts U.S. companies at a disadvantage. Congress can’t address the problem if it excludes pass-throughs from an innovation box or tax reform. Congress should lower the effective business tax rates equitably for all U.S. businesses. https://www.grantthornton.com/issues/library/articles/public-policy/2015/policy-issues/support-the-BER.aspx?utm_medium=ad-partnership&utm_campaign=public-policy-issues&utm_term=Public-policy&utm_content=article **
BLOOMBERG EVENT TODAY — The Bloomberg Markets Most Influential Summit takes place in New York, London and Hong Kong featuring Tom Steyer, Mike Bloomberg, Bill Ackman, Cliff Asness, Barry Diller, Blythe Masters and more https://www.bloomberglive.com/markets-most-influential/new-york/agenda/
SOFTBALL REPORT: FERC TAKES THINK TANK CROWN — Per AEI’s Michael Pratt: “FERC defeated the defending champs AEI 13-7 in the Think Tank Softball League Championships in a game under the lights in a field by Pentagon City. Congrats to the winning team - over 40 teams are part of the league.”
POSTCARD FROM THE NEW YORKER FESTIVAL — POLITICO’s Daniel Lippman reports: “Homeland” actor Damian Lewis told the New Yorker festival on Saturday that he's met with hedge fund managers like Bill Ackman and Dan Loeb to prepare for his upcoming new show about Wall Street called "Billions" (on which Andrew Ross Sorkin is an executive producer).
He asked the hedgies: "Give me your intellectual defense of being a hedge fund guy, of shorting companies and the one thing they could never really persuade me of, was that playing to a moral code that we might all conventionally understand, it wasn't possible for them to justify what they do. But if they just ever so slightly shifted the goal posts and created a new moral reality for themselves, which is essentially that as long as I don't break the law and as long as the game exists, I'm here to play the game and everything is fine."
BETTER MARKETS’ FUNDING QUESTIONED — National Review’s Brendan Bordelon goes long on hedge fund manager Michael Masters’ funding of pro-financial reform group Better Markets.” http://www.nationalreview.com/article/425063/elizabeth-warrens-wall-street-double-standard-brendan-bordelon
Better Markets’ Dennis Kelleher emails: “Wall Street has been trying to shut down, shut up or smear Better Markets since it was founded five years ago. Wall Street has little tolerance for anyone willing to stand up to them or who can’t be bought.
“Better Markets’ independence and effectiveness on the public’s behalf is what gets under Wall Street’s skin and why it has been shopping a fabricated story for months to anyone in the media who would listen. … [T]he story is so factually wrong it is laughable, as detailed here https://www.bettermarkets.com/blog/fact-sheet-better-markets%E2%80%99-response-wall-street%E2%80%99s-latest-attack”.
M.M. SIDEBAR — Anyone who knows Kelleher (agree or disagree with him on issues) knows he wouldn't be shilling for some hedge fund guy looking to tilt stock prices. But in an era when Bob Litan can get dumped from Bookings over a fully-disclosed source of research funding, everything seems to be fair game.
TOUGH ROAD FOR TPP IN CONGERSS — WP’s David Nakamura: “President Obama hailed the historic 12-nation Pacific Rim trade deal … as an accord that ‘reflects America’s values,’ but within hours the administration had turned from the negotiating table to selling the agreement on Capitol Hill, a reflection of the harsh political climate the controversial pact is expected to face in Congress. Obama pledged that [TPP] … would open new markets for U.S. goods and services and establish rules of international commerce that give ‘our workers the fair shot at success they deserve.’
“But almost immediately there were signs of the tough fight ahead to win final ratification from Congress next year. Lawmakers from both parties criticized the pact as falling short in crucial areas, raising the prospect that the White House could lose the support of allies who had backed the president’s trade push earlier this year" http://www.washingtonpost.com/business/economy/deal-reached-on-pacific-rim-trade-pact/2015/10/05/7c567f00-6b56-11e5-b31c-d80d62b53e28_story.html
SHARP PRICE INCREASES DRIVE DRUG COMPANY REVENUES — WSJ’s Joseph Walker: “Demand for a drug called Avonex has declined every year for the past 10. Not a problem for its manufacturer. U.S. revenue from the drug has more than doubled in that time, to $2 billion last year. The key: repeated price increases. The multiple sclerosis drug’s maker, Biogen Inc., raised its price an average of 16 percent a year throughout the decade — 21 times in all.
“It is an example of drug companies’ unusual ability to boost prices beyond the inflation rate to drive their revenue, even when demand for the drugs doesn’t cooperate. A result of this pricing power is that across 30 top-selling drugs sold by pharmacies, U.S. revenue growth has far outpaced demand in the past five years … Revenue growth averaged 61 percent, three times the increase in prescriptions” http://www.wsj.com/articles/for-prescription-drug-makers-price-increases-drive-revenue-1444096750
BERNANKE ADMITS MISLEADING ON LEHMAN — NYT’s Andrew Ross Sorkin: “It is astonishing to hear a former Federal Reserve chairman acknowledge that he may have misled the public as part of an agreement with another senior government official about one of the most crucial moments in recent financial history — and that he now questions whether he should have “been more forthcoming.” But that is what Ben S. Bernanke says in his new memoir …
“That crucial moment? The bankruptcy of Lehman Brothers. Mr. Bernanke, in perhaps the most candid explanation of Lehman’s 2008 collapse, writes that he and Henry M. Paulson, then the treasury secretary, purposely obfuscated when asked about Lehman’s demise early on, allowing a narrative to develop that the government had purposely let the firm fail
“In congressional testimony immediately after Lehman’s collapse, Paulson and I were deliberately quite vague when discussing whether we could have saved Lehman,’ Mr. Bernanke writes. ‘But we had agreed in advance to be vague because we were intensely concerned that acknowledging our inability to save Lehman would hurt market confidence and increase pressure on other vulnerable firms.’” https://www.nytimes.com/2015/10/06/business/dealbook/in-ben-bernankes-memoir-a-candid-look-at-lehman-brothers-collapse.html?_r=0
GOOGLE BUYS INTO SYMPHONY — FT’s Joe Rennison and Richard Waters: “Alphabet, Google’s renamed parent company, is set to become the latest investor to back Symphony, joining a host of big banks in their attempt to dislodge Bloomberg’s dominant position in Wall Street messaging. Born out of the 2013 snooping scandal, where it came to light that Bloomberg News reporters had spied on bankers using its ubiquitous terminals, Symphony claims to offer a more secure way for people to communicate with each other.
“The service officially launched on September 15, unveiling tie-ups with McGraw Hill Financial, which will supply financial information from S&P Capital IQ, and News Corp’s Dow Jones unit, which will provide a live news feed to the platform. Symphony and Alphabet declined to comment. People familiar with the matter said the deal was yet to be finalised but one confirmed a WSJ.com report that the new funding round would value Symphony at about $650m.”https://www.ft.com/content/32dbcf1a-6ba1-11e5-aca9-d87542bf8673
ALSO FOR YOUR RADAR —
FIRST LOOK: MARANTIS JOINS VISA — Per release going out this morning: “Visa … day announced the appointment of former Acting U.S. Trade Representative Demetrios Marantis as Senior Vice President, Global Government Relations. Marantis joins Visa from Square, where he led global policy, government, and regulatory affairs. Marantis will report directly to William Sheedy, Executive Vice President, Corporate Strategy, M&A, and Government Relations at Visa Inc., and be responsible for all facets of Visa’s government relations activities
JOIN US — WOMEN RULE: TAKING RISKS AND TAKING CHARGE Women Rule live event series returns Wednesday morning at 8 am with “Women Rule: Taking Risks and Taking Charge,” a series of conversations with women who have braved the odds in their lives and careers. Vian Dakhil, Iraqi MP and voice of the Yazidi people being attacked by ISIS and her sister, Dr. Deelan Dakhil, the co-director of the Sinjar Foundation will headline the event. Featured speakers also include Sen. Tammy Baldwin (D-Wis.); Sarah LaFleur, Founder and CEO, MM. LaFleur, and former White House NSA and EVP of MacAndrews and Forbes, Frances Fragos Townsend. RSVP: http://www.politico.com/events/2015/10/women-rule-taking-risks-and-taking-charge-213943
NOW AVAILABLE: POLITICO PRO LEGISLATIVE COMPASS — POLITICO Pro, POLITICO’s premium subscription service, has released a first-of-its kind legislative data analytics and decision-making tool that helps policy professionals manage and act on legislation. Leveraging features such as a personalized dashboard, virtual whip count, bill text comparison and 20 years of data, users will not only save time but benefit from customizing and cross-referencing information, enabling them to make smarter and faster decisions. Schedule your demo today.
** A message from Grant Thornton LLP: When Congress fails to act, businesses suffer. More than 50 popular tax provisions expired at the end of 2014, including the R&D credit. Congress’s indecision on these provisions is impeding business planning and stifling growth. According to a Grant Thornton survey of top financial executives, more than half of companies that use the provisions do all their planning under the assumption that the extension will not occur. That’s a huge blow to the effectiveness of the provisions and a barrier to growth. The R&D credit is a major driver of entrepreneurial activity and high-paying jobs. Congress needs to act soon to reinstate these provisions and to make the R&D credit permanent. Find out what else Congress could do to strengthen the R&D credit and view survey findings at http://gt-us.co/1iOXJW5
Source: Politico
Language Access - The Report
Language Access in New York State: A Snapshot from a Community Perspective
The state government provides New Yorkers with a multitude of services and benefits necessary for their survival...
The state government provides New Yorkers with a multitude of services and benefits necessary for their survival and success: nutritional supports, health benefits, unemployment insurance and driver’s licenses, to name but a few. In order for these services to be equally accessible to all of the diverse residents of the state, it is essential that government agencies be linguistically accessible, providing interpretation and translation services for the over 2 million individuals in New York State who are limited English proficient (LEP). This report assesses the state of language access in New York, particularly access to state benefits that are critically important to low-income New Yorkers, such as public benefits, unemployment, police protection, etc. It examines the degree to which government agencies that administer state benefits programs and services are providing LEP New Yorkers with language assistance services required under a patchwork of federal, state and county-level policies.
Read the full report here.
Executive SummaryThe state government provides New Yorkers with a multitude of services and benefits necessary for their survival and success: nutritional supports, health benefits, unemployment insurance and driver’s licenses, to name but a few. In order for these services to be equally accessible to all of the diverse residents of the state, it is essential that government agencies be linguistically accessible, providing interpretation and translation services for the over 2 million individuals in New York State who are limited English proficient (LEP). This report assesses the state of language access in New York, particularly access to state benefits that are critically important to low-income New Yorkers, such as public benefits, unemployment, police protection, etc. It examines the degree to which government agencies that administer state benefits programs and services are providing LEP New Yorkers with language assistance services required under a patchwork of federal, state and county-level policies.
This report is the outgrowth of years of advocacy and months of research and analysis conducted by Make the Road NY (MRNY), the Center for Popular Democracy (CPD) and three additional partner organizations across the state: the Center for the Elimination of Health Disparities (CEMHD) at SUNY Albany, Multicultural Association of Medical Interpreters (MAMI) in Central New York and the International Institute of Buffalo.
This study also grows from the experiences of the thousands of LEP New Yorkers with whom CPD, MRNY and our partners have worked in recent years. Their consistent reports concerning the barriers created by the lack of competent, consistent interpretation and translation have informed this research, and their continuing efforts to overcome and eliminate these obstacles have inspired this work. In recent years, CPD, MRNY and other members of the broader New York State Language Access Coalition have advocated for policy changes that guarantee language assistance for LEP New Yorkers in private and public settings. At the local level, the Language Access Coalition has successfully advocated for Executive Order 120 in New York City and Executive Order 10 in Suffolk County, which require local agencies to provide language assistance services to the LEP community members they serve.
In 2011, these efforts culminated with Governor Cuomo signing Executive Order 26, a statewide order which requires all state agencies with direct public contact to translate vital documents into the top six languages spoken by LEP individuals in New York State, provide interpretation services for all New Yorkers in their primary language, develop a language access plan and designate a language access coordinator.
With Executive Order 26, the Cuomo administration not only took a tremendously important step towards guaranteeing access to government services for LEP New Yorkers, it also demonstrated national leadership on this issue. New York State’s language access policy is the first of its kind. And at a time when other states across the nation were implementing regressive, anti-immigrant measures, New York demonstrated a better way forward. The administration’s commitment to language access, demonstrated by its consistent engagement with advocates in the years preceding the issuance of the Executive Order and in the months since its enactment, stands as a compelling example of how public policy can support the immigrant communities that have been powerful drivers of local economies across the state and strengthen New York as a whole.
However, the ultimate measure of the success of government and advocacy efforts is whether all LEP New Yorkers who interact with government agencies are provided with the interpretation and translation services to which they are entitled. Our findings, outlined below, suggest that this is not the case and that there is still much to be done to ensure that such New Yorkers receive competent, consistent language assistance services. In particular, during the course of our research, we have learned that many state benefits programs and services are administered by county- or locally-run entities that may not fall within the ambit of the Governor’s Executive Order 26, and may not be in jurisdictions with a county or local executive order. Access to language services and, thus, to the essential public services and benefits to which they are linked remains patchy and work must continue to be done with all levels of government—state and local—to ensure equity.
Minneapolis Fed chief Neel Kashkari calls some racial disparity 'a crisis'
Minneapolis Fed chief Neel Kashkari calls some racial disparity 'a crisis'
Community organizer Wintana Melekin was grabbing a soda in late June at a coffee shop near her office when she heard Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, had...
Community organizer Wintana Melekin was grabbing a soda in late June at a coffee shop near her office when she heard Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, had just been in.
Seeing her chance, she dashed out the door after Kashkari, caught up and asked if he would meet with her organization, Neighborhoods Organizing for Change, to discuss racial and economic disparities in the Twin Cities.
He agreed, and to confirm that he meant it, retweeted Melekin’s tweet saying he was willing to meet.
On Wednesday, the meeting happened. Kashkari sat down with about a dozen people at NOC’s offices in north Minneapolis and committed to an ongoing collaboration between the Minneapolis Fed and some of the state’s most outspoken critics of a status quo in which blacks are not enjoying the benefits of economic growth.
“Some of the racial disparities are a crisis, and we need to treat them like a crisis,” Kashkari said. “One of the things I learned in 2008 is you don’t tackle a crisis with incremental solutions. You tackle a crisis with overwhelming force, and so if this is a crisis, and I think certainly parts of this are, then we need to bring overwhelming force.”
Kashkari, who became president of the Minneapolis Fed at the start of the year, is a former investment banker and Treasury official in the George W. Bush administration. He was appointed the first chief of the bank bailout program known as TARP at the end of the Bush term and start of President Obama’s administration.
Though his everyday work is at the very top of the national economy, Kashkari has a record of trying to understand its depths. As a candidate for governor in California two years ago, Kashkari spent a week living on the streets of Fresno, a midsize city, with just $40. He tried unsuccessfully to find work during that week and wound up in a homeless shelter.
It’s not clear how Kashkari and the nation’s central bank can directly address the challenges that were brought up at Wednesday’s meeting. The Fed controls interest rates, with the goal of creating maximum employment, but monetary policy can’t be targeted at segments of the population or certain states or cities. As Kashkari pointed out, black unemployment in the United States stubbornly tracks at roughly twice the level of white unemployment.
“There’s something structural in the U.S. economy, in good times and bad, that black unemployment is almost always twice as high as white unemployment,” Kashkari said.
He said driving unemployment downward will help everyone, and he is for low interest rates as long as they aren’t driving inflation upward. But he has not heard a satisfying answer for why the disparity in Minnesota is worse than in most places, though he committed to working with NOC to understand why it is.
From NOC’s perspective, the meeting with Kashkari was historic. Never before has a Fed president met face to face with its members in Minneapolis. As local ambassadors for the national Fed Up campaign, the organization has a fresh interest in the Fed and has taken the position that interest rates should remain low.
For Anthony Newby, the head of the organization, the meeting was a good starting point. Kashkari’s comment that the economic plight of black Minnesotans is a crisis requiring a response of “overwhelming force” was particularly satisfying.
“It sets the tone for how the Fed could, in unusual and unorthodox ways, use its power and position to solve some of these equity problems,” Newby said.
Kashkari agreed to spend a day with Rosheeda Credit, a mother of five at the meeting who said she struggles to pay for rent and child care. “The crime rate is high here, and the rent is high here and we’re not getting paid enough to work here,” Credit said.
He heard from Tenice Hodges, a former teacher who moved back to Minneapolis two months ago to help her sister’s family. She is living out of her car until she can get a teaching job because she can’t afford the city’s high rents with her restaurant wages.
“We are struggling out here,” Hodges said. “Yes, I’m employed. I work every day. But can I go out and get an apartment right now? No. I don’t have $1,100 by myself, or $2,200 for a deposit.”
Kashkari committed to looking closely at the résumés of people of color that NOC submitted for various board appointments at the Minneapolis Fed. He also said he will work with NOC on research and meet with people from the organization again in the future. He also committed to attending a workshop put on by groups affiliated with NOC at the Jackson Hole Economic Policy Symposium, an annual conference in Wyoming where central bankers from around the world gather.
Kashkari, who has drawn national attention by calling for a transformative solution to the problem of banks that are too big to fail, explained that his role as a regional Fed president is to understand the problems people face in his district. While the tools of monetary policy are limited, and much of the heavy lifting that causes social change much happen in Congress, he said it is important for him to meet with people as he did Wednesday to understand their concerns.
“I appreciate that you think it is business as usual,” Newby told Kashkari. “I don’t think it is business as usual.”
By ADAM BELZ
Source
¿Vale la pena quitarle dinero a la policía para apoyar temas como la vivienda, la educación y la salud?
¿Vale la pena quitarle dinero a la policía para apoyar temas como la vivienda, la educación y la salud?
Un nuevo informe analiza el concepto de 'desinversión de la policía'. La controversial idea es fomentada por activistas latinos y afroestadounidenses, buscando menos discriminación y más apoyo a...
Un nuevo informe analiza el concepto de 'desinversión de la policía'. La controversial idea es fomentada por activistas latinos y afroestadounidenses, buscando menos discriminación y más apoyo a las minorías.
Lea el artículo completo aquí.
Statement on McDonald’s Pay Increase
For Immediate Release: April 1, 2015
Contact: Ricardo A. Ramírez, rramirez@populardemocracy.org, 202-905-1738
Statement on...
For Immediate Release: April 1, 2015 Contact: Ricardo A. Ramírez, rramirez@populardemocracy.org, 202-905-1738
Statement on McDonald’s Pay Increase
Ana María Archila, Co-executive Director of the Center for Popular Democracy (CPD) released the following statement after McDonald’s announced a pay increase for some of its workers:
“McDonald’s move on salary is a testament to the power of organized workers at the grassroots level: When workers come together to denounce injustice, change happens. But this is not nearly enough – not by a longshot. With the new wages set to average only $9.90 and limited to company-owned stores, and only five days of paid leave, the change is small in both heft and scope.
“While we congratulate workers for moving the ball forward, at the Center for Popular Democracy we pledge to continue the vigorous fight alongside fast food workers for a $15 minimum wage and a fair workweek that gives them a chance at a balanced and dignified life.”
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Dallas Fed Struggles to Fill Fisher’s Big Shoes
The Federal Reserve Bank of Dallas is taking its time picking a new president, leaving the position vacant for more than four months and leaving the institution without a strong public voice at a...
The Federal Reserve Bank of Dallas is taking its time picking a new president, leaving the position vacant for more than four months and leaving the institution without a strong public voice at a time of intense debate over when the central bank should start raising interest rates.
Former president Richard Fisher stepped down March 19, leaving the bank’s first vice president Helen Holcomb to serve as interim president. His exit was long anticipated: he faced mandatory retirement due to his age. The bank formally announced Mr. Fisher’s impending exit in November. Executive search firm Heidrick & Struggles was tapped to find a successor.
Other regional Fed banks, in contrast, have filled their top vacancies more briskly in recent years. For instance, Philadelphia Fed President Charles Plosser retired March 1 and his replacement, Patrick Harker, was announced the next day.
The duration of the Dallas vacancy has surprised many central bank watchers. Some of them say the bank’s board of directors appears to want a clone of Mr. Fisher—a strong voice on major issues with deep ties to the Lone Star state.
“It’s beyond bizarre” a new president hasn’t been named yet, said Danielle DiMartino Booth, who served as a close adviser to Mr. Fisher when they were both at the bank. Ms. Booth, who left the Dallas Fed in June and is now a strategist with the Liscio Report, said what the bank appears to want is a rare commodity.
“Richard Fisher rose to the status of being a deity in Texas,” Ms. Booth said. “People associate the success of the state” with him, and it is “very difficult” to find a new leader who can maintain that sort of profile, she said.
The Dallas Fed responded to questions about the search process by producing a description of what the bank seeks in a new leader. It said candidates should have “recognized stature” in economics and finance and preferably hold a Ph.D. The “ideal candidate will exhibit a strong combination of economic/market/policy expertise, integrity (and willingness to satisfy financial interest and disclosure requirements), leadership, communication skills, interpersonal skills, and community involvement,” it said.
Before joining the Dallas Fed, Mr. Fisher was a wealthy hedge-fund operator and diplomat. He was known for a brash public style as president. He made his case against the Fed’s easy money policies in speeches invoking high and pop culture, warning repeatedly about frothy financial markets and arguing in vain for higher interest rates.
His predecessor Robert McTeer, operating under the nickname of the “Lonesome Dove,” was known for opposing rate rises—sometimes via haiku.
The Dallas Fed has “a tradition of having an outspoken leader,” said Ethan Harris, chief economist at Bank of American Merrill Lynch.
Those with knowledge of the process say the Dallas Fed is seeking a replacement who will carry on that tradition.
Heidrick & Struggles didn’t respond to questions about the search process.
The Dallas Fed president is chosen by the bank’s board of directors, subject to approval by the Federal Reserve’s Washington-based board of governors. The Dallas board members drawn from the financial industry are prohibited by law from participating in the search. The other Dallas board members who are involved declined to comment.
In recent years, regional Fed bank presidents have tended to be insiders. For example, San Francisco Fed President John Williams was previously the bank’s research director. Cleveland Fed President Loretta Mester was previously research director at the Philadelphia Fed. Mr. Harker served on the Philadelphia Fed’s board before taking the top job. Now, only current Atlanta Fed chief Dennis Lockhart had no formal connection to the central bank before joining. Mr. Fisher was the rare bird who came in cold.
“Recent history has shown that the regional banks conduct a thorough and broad review of candidates that almost exclusively ends with the insider being selected,” said Aaron Klein, director of the financial regulatory reform initiative with the Bipartisan Policy Center in Washington.
Mr. Harris said central bank insiders, shaped by a Fed culture that often rewards a gray public persona, tend to lack the dramatic flair of the past two Dallas Fed chiefs.
Some critics from labor unions and local community groups say they are disappointed by the lack of openness surrounding the selection process given that the regional Fed bank presidents are government officials who participate in important central bank policy decisions.
“We are very disappointed in what we’ve run into” trying to have a voice in the process, said Mark York, secretary-treasurer of the Dallas AFL-CIO. He said a letter from the union and other local groups asked for names under consideration to be made public in a bid to allow the public to weigh in, among other requests.
That said, not all think the bright light of transparency is a cure all. Lou Crandall, chief economist for Wrightson ICAP, said wanting to know more about the process is a “fair point.” But he warned “you don’t want a lot of public jockeying over this.”
Source: The Wall Street Journal
Protesters Stage 'Die-In' At Harvard Museum To Criticize Namesake's Link To Opioid Crisis
Protesters Stage 'Die-In' At Harvard Museum To Criticize Namesake's Link To Opioid Crisis
Several organizations, including the Center for Popular Democracy, SIFMA NOW, ACT UP Boston, participated in the protest.
...
Several organizations, including the Center for Popular Democracy, SIFMA NOW, ACT UP Boston, participated in the protest.
Read the full article here.
State legislators clash over the rights of charter schools
State legislators clash over the rights of charter schools
To state Sen. Owen Hill, the issue is simple.
"We [should] treat all public school students equally within a district," the Colorado Springs Republican says.
Hill, chair of the...
To state Sen. Owen Hill, the issue is simple.
"We [should] treat all public school students equally within a district," the Colorado Springs Republican says.
Hill, chair of the Senate Education Committee as his second four-year term begins, says that's not happening right now because charter schools don't always get an equal share of mill levy increases approved by school district voters.
The money from those taxes isn't divvied up automatically based on pupil counts. Instead, it's distributed based on contracts that charters agree to when approved by a school district. Some districts might give charters a large share of those funds; some may not give them any.
Hill is co-sponsoring Senate Bill 61 — similar to a bill of his that failed last session — trying to change that system. The bill would require school districts to distribute mill levies on a per-pupil basis, starting in the 2017-18 school year, to charters and traditional public schools.
Some exceptions exist. If a mill levy was passed to fund something that a charter doesn't offer (like school buses), the charter won't get the money. If a charter school was authorized by a school district other than the one it was located within, then the authorizing district would only owe it the per-pupil amount for kids who reside in its boundaries. Charter schools authorized by the state's Charter School Institute would be compensated by the Department of Education based on a calculation of mill levies collected by "the charter school's accounting district."
To Hill, the bill aims to correct an unfair situation. Currently, he says, "[Parents have] got this situation where they go to one school on one side of the street and that school receives $10,000 for that child, or if they go to the school on the other side of the street, the school board will basically say, 'Well, all you get is $2,500 if your child goes there.' So now we're picking winners and losers among our kids."
But Hill's view isn't shared by all legislators or education workers.
What Hill leaves out, they say, is that charters aren't equal in any other way — they don't follow the same rules or meet the same standards. So why, they say, should they be treated the same only when it comes to funding?
When Colorado legalized charters in 1993, it was hoped they would foster innovation, serve different needs and give options to families in struggling areas.
Many specialize. In Colorado Springs, for instance, two new charters were recently authorized: Landmark Community School, a sober high school, and the Colorado Military Academy, a military-style K-12.
Charters may not get all the district funds they desire, but they receive no less than 95 percent of state per-pupil funding, often get a portion of district funding, and can apply for a variety of federal and private funds.
Back in 2014, for instance, Philanthropy News Digest reported, "Denver-based DSST Public Schools [a system of charter schools] has announced a $7 million pledge from cable television entrepreneur John C. Malone and the Malone Family Foundation." The Walton Family Foundation announced last year that it would give $1 billion over the next five years to expand charters and school choice.
Charters are not forced to abide by all laws and standards that apply to traditional public schools. According to the Colorado Department of Education, charter schools are automatically granted waivers to 17 state laws. Among them are "local board duties concerning competitive bidding" and "local board powers — accepting gifts, donations and grants." Unlike traditional schools, charters are not required to hire licensed teachers nor must they follow many employment rules that apply to firing and paying teachers.
What's more, charters can ask the State Board of Education to waive other laws. Charters are eligible to have all but three sections of laws waived. What that means, says Sen. Mike Merrifield, D-Colorado Springs and a former high school music teacher, is that charters get a pass on many expensive requirements, but are free to raise money in ways that are difficult or impossible for traditional public schools.
"I would be more inclined to be supportive [of Senate Bill 61] if [charters] would adhere to all the same requirements that local public schools do," Merrifield says.
Another critic: the state's largest teachers' union, the Colorado Education Association. CEA President Kerrie Dallman has a litany of complaints about SB61. Chief among them: "We have a chronically underfunded system, and what Owen Hill's bill does is pull money out of classrooms in order to direct it to these charter schools. What we ought to be doing is talk about growing the pie."
The charter system in general also has its detractors. A statewide poll of 500 registered voters in January 2016 found that "voters overwhelmingly favor charter school reform proposals."
The GBA Strategies poll, performed for In the Public Interest and the Center for Popular Democracy, found, for instance, that 88 percent wanted to "require state officials to conduct regular audits of charter schools' finances to detect fraud, waste or abuse of public funds"; 76 percent wanted to "require charter schools to publicly disclose they are exempt from some state or school district laws including the law requiring public school teachers to be licensed to teach"; and 74 percent wanted to "require companies and organizations that manage charter schools to disclose outside funding including gifts, grants, and donations." The margin of error was plus or minus 4.4 percentage points.
Last summer, the National Association for the Advancement of Colored People and the Movement for Black Lives (which includes Black Lives Matter organizers) both came out against charter schools. The groups expressed concerns ranging from the privatization of the public school system to segregation based on perceived abilities, to lack of transparency and accountability. That's notable, because charters, remember, were originally seen as a better way to educate underserved communities.
Cheyenne Mountain School District 12 Superintendent Walt Cooper says his district has long had a great relationship with its charter, The Vanguard School, which is actually located just outside D-12's boundaries. D-12 authorized it agreeing that Vanguard would get a per-pupil portion of D-12's mill levies — but only for Vanguard students living within D-12's boundaries. Cooper says the agreement was fair, and it actually wouldn't change should SB61 pass (a key change from last year's version of the bill). But he opposed Hill's first bill, and he's not keen on SB61 either.
Cooper says he's a fan of local control, adding, "A one-size-fits-all approach does not work."
What's more, he says, there are differences between charters and traditional schools — and that's fine. But, he says, "Let's either all play by exactly the same rules ... or recognize [charters] for the fact that they are different and let's not try to make them the same."
Hill has a counter to the "charters are different" argument. School districts can apply for waivers to state laws too, he says.
That's true. Districts can apply for waivers for "innovation schools" with specific, approved plans. But they don't get automatic waivers, and aren't eligible for as many waivers as charters. Plus, Cooper says, the state board seems less inclined to grant waivers for traditional schools.
He recounts D-12's recent waiver application for its kindergarten program. Cooper says he worked with Vanguard, whose application for the same waiver was approved immediately, to produce his own application. But Cooper's proposal wasn't rubber-stamped. It took three months, three tries and appearing before the state board to get his application approved, with a three-year sunset.
"Basically, we copied their [Vanguard's] homework, and they got an A and we got a D," he says. "We were asking for exactly the same thing."
By J. Adrian Stanley
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