Risking Public Money: New York Charter School Fraud
Executive Summary
Sixteen years following the passage of New York’s Charter School Act, the number of charter schools in New York has grown dramatically. Over the last 10 years, charter...
Sixteen years following the passage of New York’s Charter School Act, the number of charter schools in New York has grown dramatically. Over the last 10 years, charter student enrollment has increased by 530 percent. Charter schools enroll over 90,000 students in New York State,2 80,000 of whom attend charter schools in New York City.3 For the school year 2014–15, New York charter schools will receive over $1.5 billion in public funding.
Download the report hereDespite the tremendous investment of public dollars, New York has failed to implement a system that adequately monitors charters for fraud, waste, and mismanagement. While charter schools are subject to significant reporting requirements and monitoring by oversight bodies, only the New York State Comptroller’s Office (Office) audits charter schools with any regularity. While the Office has audited fewer than half of all charter schools, they have exposed some form of internal control deficiency or mismanagement in 95 percent of their audits.5 The majority of charter schools in New York are left to operate year in and year out without regulator-level audits, specifically audits that are designed to determine whether these publicly funded, privately managed schools are spending public dollars properly. Given the findings of the limited audits the State Comptroller has performed, this system of irregular regulator audits poses a serious problem. In all but three of the Comptroller audits, auditors exposed internal control deficiencies and various forms of mismanagement ranging in severity and form—from inappropriate trips to the Bahamas by charter school staff to undocumented spending of thousands of public dollars.These findings indicate that many of the unaudited charter schools likely suffer from internal control deficiencies as well. Based on conservative estimates, New York could stand to lose $54 million in charter school fraud in 2014 alone.* The vast majority of this fraud will go undetected because New York lacks the oversight necessary to detect it. In this report we identify two fundamental flaws with New York’s oversight of charter schools:
Oversight depends heavily on self-reporting by charter schools or the reports of whistleblowers. New York’s oversight agencies rely almost entirely on audits paid for by charter operators and complaints from whistleblowers. While important to uncover fraud, neither method systematically detects or effectively prevents fraud. General auditing techniques alone do not uncover fraud. 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.To address these serious deficiencies in New York’s system, we recommend the following reforms:
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. Oversight agencies, including the Comptrollers’ offices for New York State and City, should conduct audits on charter schools once every five years. Oversight agencies should conduct 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 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. State and City Comptrollers 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 authorizers should take fraud risk assessments into account when evaluating whether to renew a school’s charter. 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 and refrain from increasing the charter school cap until the state oversight system is adequately reformed.Given the rapid and continuing expansion of the charter school industry and the tremendous investment of public dollars, New York must act now to reform its oversight system. Without reform, the people of New York State stand to lose millions of dollars to charter school fraud, waste, and mismanagement.
Download the report here
Amazon Not Happy with Seattle’s New Compromise Head Tax
An open letter May 14 to the city of Seattle from about 55 elected leaders—some from cities on Amazon’s short list for HQ2—rebuked Amazon for its tactics and its opposition to the tax proposal. “...
An open letter May 14 to the city of Seattle from about 55 elected leaders—some from cities on Amazon’s short list for HQ2—rebuked Amazon for its tactics and its opposition to the tax proposal. “We urge you to remain steadfast in your commitment to this effort to reduce homelessness and the persistent inequities faced by all of our cities,” the leaders wrote to their Seattle colleagues.
Read the full article here.
Face to Face With the Fed, Workers Ask for More Help
New York Times - November 14, 2014, by Binyamin Appelbaum - Jean Andre traveled from...
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.
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"You can save my life - remember this conversation": Father with ALS confronts Senator Jeff Flake on flight from DC to Arizona over tax bill*
"You can save my life - remember this conversation": Father with ALS confronts Senator Jeff Flake on flight from DC to Arizona over tax bill*
A terminally-ill father suffering Lou Gehrig's disease shared his personal story with Sen. Jeff Flake with the ambition to make an influence on his stance of the GOP tax reform bill.
Ady...
A terminally-ill father suffering Lou Gehrig's disease shared his personal story with Sen. Jeff Flake with the ambition to make an influence on his stance of the GOP tax reform bill.
Ady Barkan, 33, approached the Republican lawmaker during his flight home from Washington D.C. - where the ill Barkan had spent days protesting the bill.
Read the full article here.
Debbie Wasserman Schultz’s Challenger Has a Chance
Source: The New Republic
During the presidential primary, Democratic National Committee Chair Debbie Wasserman Schultz has managed the impressive feat of angering virtually every liberal in America. Bernie Sanders supporters think she displays a transparent biasfor Hillary Clinton. Party stalwarts, including Clinton fans, criticize the decision tohide primary debates on weekend nights, ceding hours of free media time to Republicans in the formative stages of the election. And in a recent interview with the New York Times Magazine, Wasserman Schultz insulted millennial women for being “complacent” about abortion rights. This is an incomplete list.
In two separate petitions, more than 94,000 people have demanded that Wasserman Schultz resign as DNC chair. But back in her district, in Hollywood, Florida, Timothy Canova has another idea: vote her out of office.
Last Thursday, Canova, a former aide to the late Sen. Paul Tsongas and a professor at Nova Southeastern University’s Shepard Broad College of Law, jumped into the Democratic primary in Florida’s 23rd congressional district. It’s Wasserman Schultz’s first primary challenge ever, and with frustration running high against her, it’s almost certain to draw national attention. But Canova first became interested in challenging Wasserman Schultz not because of her actions as DNC chair, but because of her record.
“This is the most liberal county in all of Florida,” Canova said in an interview, referring to Broward County, where most of Wasserman Schultz’s district resides (a small portion is in northern Miami-Dade County). But she more closely associates with her significant support from corporate donors, Canova argued. He listed several of Wasserman Schultz’s votes, such as blocking the SEC and IRS from disclosing corporate political spending (which was part of last month’s omnibus spending bill),opposing a medical marijuana ballot measure that got 58 percent of the vote in Florida, preventing the Consumer Financial Protection Bureau from regulating discrimination in auto lending and opposing their rules cracking down on payday lending, and supporting “fast track” authority for trade deals like the Trans-Pacific Partnership.
“I think anyone who voted for fast track should be primaried. I believe that ordinary citizens have to step up,” Canova said.
Canova espouses many of the populist themes that attract the left: fighting corporate power, defending organized labor, and reducing income inequality. But this is not just a Bernie Sanders Democrat. You have to go back further. Tim Canova is a Marriner Eccles Democrat.
Eccles chaired the Federal Reserve during Franklin Roosevelt’s presidency. And Canova believes the central bank should revisit Eccles’s unorthodox strategies to jump-start a broad-based economic recovery. “In the 1930s, the regional Fed banks made loans directly to the people,” Canova said. “Instead of purchasing $4 trillion in Treasuries and mortgage-backed securities, [the Fed] could buy short-term municipal bonds and drive the yield to zero for state and local governments. They could push money into infrastructure, making loans to state infrastructure banks.” Canova has even suggested that the government create currency outside of the central bank, breaking their monopoly on the money supply, as President Abraham Lincoln did with the “Greenback” in the 1860s.
During World War II, FDR directed Eccles’s Fed to finance American war debt at low rates, eventually producing a stimulus that helped to end the Great Depression. It was a time when the Fed was far more accountable to democratically elected institutions, one that Canova looks back upon fondly. “People like to talk about the Fed’s independence, that’s really a cover for the Fed’s capture,” he said. “They look out for elite groups in society, and the hell with everybody else.”
A growing faction of progressives are beginning to return to their roots, asking whether Fed policies truly support the public interest. The Fed Up campaign, with which Canova has consulted, seeks to pressure the Fed to adopt pro-worker policies. A surprise movement in Congress just cut a 100 year-old subsidy the Fed handed out to banks by $7 billion. Even mainstream figures like economist Larry Summerswonder whether the Fed’s hybrid public/private structure, which critics believe makes it beholden to financial interests, makes sense.
Progressive debates on central banking are not as advanced here as in Europe, where British Labour Party leader Jeremy Corbyn wants a “quantitative easing for people,” where the central bank injects money directly into the economy rather than filtering it through financial institutions. But Canova, who says his views were most influenced by an undergraduate economics professor who taught with one book—John Maynard Keynes’s General Theory of Employment, Interest and Money—bridges this gap. Twenty years ago this week, he wrote an op-ed for the New York Timesopposing the reappointment of Alan Greenspan as Fed chair because of his support for high real interest rates. If elected this fall, he would instantly become the strongest advocate in Congress for a people’s Fed.
While Debbie Wasserman Schultz has few known views on the Federal Reserve, Canova’s populism offers a strong counterweight to her corporate-tinged philosophy. And even before that contrast plays out, the hunger for any challenge to Wasserman Schultz is palpable.
“The money is coming in more rapidly than believable,” said Howie Klein, co-founder of Blue America PAC, which raises money for progressive Democrats. Wasserman Schultz has been on Klein’s radar since she, as chair of the “Red to Blue” campaign for electing House Democrats, refused to campaign against three Republicans in Florida because of prior friendships and their joint support for the state sugar industry.
Klein sent a Blue America fundraising email shortly after Canova’s announcement, and raised $7,000 within 12 hours, and over $10,000 at last count. The intensity of support reached beyond the PAC’s traditional donor base. “Our average donation is $45, but in this case we’re getting $3, $5,” Klein said. “For people who our donors have never heard of, it can take three-four months to do that. It’s just because ofDebbie Wasserman Schultz.”
Similarly, Canova says he’s seeing tens of thousands of visits to his website andFacebook page, suggesting support beyond south Florida. However, he wants to localize rather than nationalize the race. The district, initially drawn with Wasserman Schultz’s input when she served in the Florida state Senate, is now more Hispanic and less reliable for a politician who Canova believes has lost touch with her constituents.
“You talk to people at the Broward County Democratic clubs, they say she takes us for granted,” Canova said. The political model for his campaign is David Brat, another academic who took on a party leader—then-House Majority Leader Eric Cantor—and defeated him, on the grounds that Cantor ignored his district amid constant corporate fundraising.
If there’s one thing Wasserman Schultz can do, it’s raise money—that’s why she chairs the party. She will have a big cash advantage and the power of incumbency. But Canova thinks he can outmatch her by riding the populist tide. “There’s a tendency to get so down about the system, but this is an interesting moment we’re living in,” Canova said. “This is a grassroots movement. We’re tapping in without even trying yet.”
One Word Could Be Worth a Million Jobs
Supporting a strong job market is a big part of the U.S. Federal Reserve's mandate. Fed officials, though, interpret that goal differently than most observers do. For the economy's sake, Congress...
Supporting a strong job market is a big part of the U.S. Federal Reserve's mandate. Fed officials, though, interpret that goal differently than most observers do. For the economy's sake, Congress should step in to resolve the discrepancy.
Specifically, the Federal Reserve Act instructs the central bank to promote "maximum employment" and "stable prices." Most people understand these instructions as meaning the Fed should seek to generate as much demand for workers as possible without causing an unduly large increase in prices.
The website of the Fed's Board of Governors, however, makes a slight modification to the jobs mandate: "maximum sustainable employment." Innocuous as it may seem, that one word can make a big difference.
How? Well, suppose inflation is running below the Fed's 2 percent target and the unemployment rate is at 5 percent, which officials consider to be its long-run level (pretty much the current situation). They can choose between two monetary policies, which are expected to result in the following paths for the unemployment rate:
Most observers would opt for the second policy. It's more aggressive, so it will get inflation back to target sooner. Even better, the unemployment rate is the same or lower every year, and by a significant amount: One percentage point is worth more than a million jobs.
The word "sustainable," however, means that the Fed views any deviation from the long-run unemployment rate -- up or down -- as undesirable. When officials speak of the economy “overheating” or “running hot” in the absence of inflationary pressures, this is what I think they have in mind. So they would see unemployment as running too low under policy 2.
Some Fed officials worry that “overheating” could trigger a recession. (I don’t understand the precise economic mechanism, but let’s leave that aside.) They think policy 2 might generate the following path for the unemployment rate:
Policy 2: Possible Recession Outcome
In 2019 and 2020, the economy falls into recession. From the Fed’s perspective, this unemployment path is terrible, because the rate is either too low or too high for the next four years.
It's easy to imagine, though, that many people would be willing to trade the risk of recessionary pain in 2019 and 2020 for the near-term gain of 2017 and 2018. They might even believe there's some chance that policy 2 will generate an outstanding outcome -- if, for example, the long-run unemployment rate is actually lower than the Fed thinks it is. Here's how that would look:
This interpretational divide was on full display last month, when Fed officials met with representatives of the pro-employment activist group Fed Up. The activists largely assumed that the central bank was contemplating near-term interest-rate increases to keep inflation in check. But most of the officials downplayed inflation, invoking instead the need to keep the economy from running too hot (which some said could lead to a recession).
I find it hard to believe that the Fed's approach is consistent with Congress's intent as expressed in the Federal Reserve Act. That said, it's really up to legislators to provide an unequivocal answer, which could matter a lot for the economy over the next few years.
By Narayana Kocherlakota
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Under Trump, local governments become activists
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s Office of Sustainability hoisted a diaper bag on her shoulder, packed her 11-week-...
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s Office of Sustainability hoisted a diaper bag on her shoulder, packed her 11-week-old daughter, Sabine, into a stroller, maneuvered into a creaky elevator in City Hall, and rode up to the mayor’s reception room. This was just too important to miss.
Read the full article here.
Jersey City Could Be Next To Guarantee Workers Paid Sick Days
ThinkProgress - September 4, 2013, by Bryce Covert - Jersey City, NJ Mayor Steven Fulop (D) is pushing a bill that would require most businesses to offer workers paid sick days. Employers with 10...
ThinkProgress - September 4, 2013, by Bryce Covert - Jersey City, NJ Mayor Steven Fulop (D) is pushing a bill that would require most businesses to offer workers paid sick days. Employers with 10 or more workers would have to provide up to five paid sick days a year, and workers would earn a day off for each 30 days they work.
Fulop will propose his bill to the City Council next week, where it is thought to have good chances of passing given that the majority of the members are aligned with him. He has called such a law a matter of “basic human dignity.”
If the bill passes, Jersey City would join New York City; Portland, OR; San Francisco, CA; Seattle, WA; and Washington, DC as cities that guarantee paid sick days, as well as the state of Connecticut. A statewide push in New Jersey to have such a law cover the entire state began with a bill that was introduced in the spring. Massachusetts is also fighting for such a law.
Across the country, 40 percent of private sector workers, including 80 percent of low-income workers, don’t have access to paid sick days. While opponents of such legislation usually claim that it will add too much of a financial burden on businesses, research has shown that the opposite is true. Washington, DC’s law has had no negative impact on business. San Francisco’s had little negative effect and strong business support, while it was even found to have spurred job growth. Connecticut’s has come with little cost andhuge potential upsides. On the other hand, lost productivity due to sick workers who can’t take days off costs the average employer $225 per employee per year.
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Families, Lawmakers to Speak at Rally in Washington, DC on Six-Month Anniversary of Hurricane María
Families, Lawmakers to Speak at Rally in Washington, DC on Six-Month Anniversary of Hurricane María
“Protesters will gather for a rally at the headquarters of the Federal Emergency Management Agency (FEMA) and then march towards several congressional offices to voice their demands. The event is...
“Protesters will gather for a rally at the headquarters of the Federal Emergency Management Agency (FEMA) and then march towards several congressional offices to voice their demands. The event is organized by Power 4 Puerto Rico, a coalition made up of the Hispanic Federation and Center for Popular Democracy, among other community organizations.”
Read the full article here.
Ciudanía en Nueva York – Importancia de las Cooperativas de Trabajo
Comunidad Y Trabajadores Unidos - July 15, 2014 - El debate sobre los derechos de migrantes parece estar tan polarizado y por eso no vimos mucho progreso en la reforma migratoria ni en asegurar...
Comunidad Y Trabajadores Unidos - July 15, 2014 - El debate sobre los derechos de migrantes parece estar tan polarizado y por eso no vimos mucho progreso en la reforma migratoria ni en asegurar los derechos de los trabajadores. En Nueva York podemos ver cambios que muestran algunas oportunidades para los migrantes a nivel estatal. En este programa vamos a enfocarnos en dos de los cambios: la legislación que ofrece ciudadanía en Nueva York y el avance de cooperativas de trabajo para trabajadores.
Ciudanía en Nueva York
Hasta ahora el debate sobre la reforma migratoria solo pasó a nivel federal pero la legislación que se desarrolló recientemente, trajo el debate a nivel estatal. La legislación que se desarrolló ofrece ciudanía para en Nueva York para los migrantes y Andrew Friedman habla sobre el significado de esta ley. Andrew Friedman es el co-director del centro de democracia popular y es parte del movimiento que empuja para esta legislación. Friedman habla sobre por qué Nueva York debería desarrollar una legislación que ayude a los migrantes y sobre el papel importante que juegan los migrantes en Nueva York.
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