Campaign News

The Tennessean - March 3, 2015, bt Jason Gonzales - Anti-voucher groups are digging in for a fight as the second of two almost identical voucher bills easily passed the House Education and Planning Subcommittee by a 7-1 vote. State Rep. Kevin Dunlap, D-Rock Hill, was the lone dissenter.

The proposed legislation that passed Tuesday is sponsored in the House by state Rep. Bill Dunn, R-Knoxville, and has considerable backing from pro-voucher groups and legislators alike. A separate bill sponsored by state Sen. Brian Kelsey, R-Germantown, narrowly passed the Senate Education Committee.

The legislators hope to provide low-income students a voucher program to pay for private school tuition with a state-funded scholarship. The program targets students eligible for free and reduced-price lunch who attend a public school ranked in the bottom 5 percent of the state in academic achievement.

Several groups have publicly voiced opposition to the bills, including the Tennessee Education Association. The teacher's union has been against proposed voucher legislation for years. In past years, opponents have been successful in their fight, as bills have continually struggled in the House and Senate finance committees.

Between the two bills, Haslam said the administration agreed to fund the measure from Dunn and state Sen. Todd Gardenhire, R-Chattanooga. On supporting the Dunn-Gardenhire bill versus Kelsey's, Haslam said Tuesday morning the bill most resembles the one he supported last year.

Kelsey is a sponsor of both bills, and House Majority Leader Gerald McCormick, R-Chattanooga, recently told The Associated Press the plan could survive in the House this year.

Volunteers with Tennesseans Reclaiming Educational Excellence were the visible face Tuesday of the anti-voucher group at Legislative Plaza. They were there to pass out brochures and stickers that said, "No School Vouchers."

Anne Marie Farmer, a volunteer with the public education advocacy group, said the group argues vouchers don't have the desired effect in a time when schools need more resources. The group also contends vouchers only give private schools a choice, not parents.

"We don't believe it is an effective way to raise student achievement," she said

Americans United for Separation of Church and State and Tennessee Transgender Political Coalition have also voiced opposition to the bill.

A recent poll by the Public Interest and the Center for Popular Democracy, however, says Tennesseans are not concerned with school choice. The TEA sent out a Tuesday media release weighing in on the poll.

"When Tennesseans were asked to rank important issues facing the state's public schools, school choice came in dead last," said Barbara Gray, Arlington Community Schools administrator and TEA president, in the release. "This poll shows that legislators need to redirect their attention to the issues that really matter to Tennesseans, like parental involvement, over-emphasis on standardized testing and cuts to programs like physical education and music."

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A Report on the Foreclosure CrisisCalifornia in Crisis: How Wells Fargo's Foreclosure Pipeline is Damaging Local Communities

Five years after the housing market collapsed, California’s economy remains weak. The unemployment rate is nearly 10 percent, twice what it was in 2006, and in 2012 the State’s underemployment rate averaged an astonishing 19.3 percent.

The continuing housing crisis remains a key cause of this widespread economic tragedy. Nearly two million California homeowners are underwater, owing more on their mortgage than their home is worth.

Since 2008, banks have foreclosed on approximately 1.7 million homes in the state. Right now, around 65,000 California homeowners are in the “foreclosure pipeline” – they’ve received a Notice of Default or a Notice of Trustee Sale. Every day, more and more families get added to this list.

Wells Fargo is the biggest mortgage service provider in California, responsible for nearly one in five of these impending foreclosures. This report shows the tremendous damage that will befall California’s communities if Wells Fargo continues to foreclose on so many families.

Download the report here.

Executive Summary

Five years after the housing market collapsed, California’s economy remains weak. The unemployment rate is nearly 10 percent, twice what it was in 2006, and in 2012 the State’s underemployment rate averaged an astonishing 19.3 percent. Millions of Californians are struggling to make ends meet.

The continuing housing crisis remains a key cause of this widespread misery. Nearly two million California homeowners are underwater, owing more on their mortgage than their home is worth. This tremendous mortgage debt is severely crippling the State’s economy by holding back consumer spending and preventing a robust recovery.

And the mortgage debt is devastating the lives of too many Californians. Since 2008, banks have foreclosed on approximately 1.7 million homes in the state. Right now, about 65,000 California homeowners are in the “foreclosure pipeline” – they’ve received a Notice of Default or a Notice of Trustee Sale. Every day, more and more families get added to this list.

Wells Fargo is the biggest mortgage servicer in California, responsible for nearly one in five of these impending foreclosures. This report shows the tremendous damage that will befall California’s communities if Wells Fargo continues to foreclose on so many families. As of February 2013, Wells Fargo had 11,616 homes in its foreclosure pipeline. If all of these homes were to go through foreclosure:

Each home would lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion, Homes in the surrounding neighborhood would lose value as well, for an additional loss of about $2.2 billion; and Government tax revenues would be cut by $20 million, as a result of that depreciation.

Every month, more homes fall into the foreclosure pipeline, compounding this disaster. The foreclosure crisis has hit African-American and Latino borrowers and communities particularly hard. The pages below highlight the concentration of distressed loans handled by Wells Fargo that are in African-American and Latino neighborhoods. These communities have already suffered tremendous wealth loss due to the recession and this report shows that far more harm will occur in the coming months unless Wells Fargo changes its policies.

But Californians do not have to accept this bleak future. Economists and policy experts across the political spectrum agree that an alternative approach to the housing crisis can be a win-win-win for homeowners, mortgage holders, and California’s economy. As this report explains, widespread modification of home mortgages to current market value would prevent tens of thousands of needless foreclosures, inject billions of dollars into the economy, create hundreds of thousands of new jobs – and would even be in the financial interest of the investors who own the mortgages.

Wells Fargo is a pivotal actor in determining whether principal reduction becomes a widespread solution. Its failure to lead on this issue is clear. The most recent report from the national monitor of the multi-state Attorneys General mortgage servicing settlement shows that in California, Wells Fargo is providing far less principal reduction than Bank of America, despite the fact that it services more loans.

The solutions are clear: Wells Fargo should (1) commit to a broad program of principal reduction, (2) be honest with Californians by reporting data on its principal reduction, short sales, and foreclosures by race, income, and zip code, and (3) immediately stop all foreclosures until the first two solutions are implemented.

After years of predatory lending and heartless foreclosures, it is time for Wells Fargo to stop. Stop the needless foreclosures. Stop the needless evictions. End this housing crisis.

“American consumers have a love-hate relationship with drugstore chains and their pricey prescriptions, but it seems employees do as well. Disgruntled Walgreens employees site poor pay (cashiers are paid just $9 per hour) and other labor issues as major negatives. The Center for Popular Democracy tallied actual employee votes and named Walgreens the worst company in America. They’ve even been accused of promoting employees to salary positions to skirt overtime pay, resulting in employees earning less money per hour than their hourly counterparts.

Read the full article here.

The U.S. Federal Reserve came under criticism Thursday from some lawmakers over the lack of diversity in the central bank’s leadership.

A majority of Democratic members of Congress -- 11 from the Senate and 116 from the House of Representatives -- signed a letter addressed to Janet Yellen, calling on the Fed chair to include more African Americans, Latinos and women when it considers candidates for top posts. The letter was written by staff for Representative John Conyers of Michigan, according to Ady Barkan of the Fed Up campaign, an activist group that lobbied members of Congress to add their names. No Republicans signed.

“We remain deeply concerned that the Federal Reserve has not yet fulfilled its statutory and moral obligation to ensure that its leadership reflects the composition of our diverse nation in terms of gender, race and ethnicity, economic background and occupation,” according to the letter, whose signatories included presidential candidate Senator Bernie Sanders of Vermont and Massachusetts Senator Elizabeth Warren.

The letter said more than 80 percent of directors at the Fed’s 12 regional banks are white and about three-fourths are men. Of 12 regional Fed presidents, who participate in monetary policy meetings, 11 are white and 10 are men, it added.

Improvements Made

Fed spokesman David Skidmore said the central bank and its branches have focused in recent years on increasing ethnic and gender diversity. Minority representation on Reserve Bank and branch boards has risen to 24 percent this year from 16 percent in 2010, he said, and the proportion of female directors has increased to 30 percent from 23 percent over the same period. “We are striving to continue that progress,” Skidmore said.

Fed Up is organized by the Center for Popular Democracy, non-profit groups and unions who are lobbying for the Fed to reject raising interest rates.

Regional Fed presidents are chosen by non-banking members of their respective boards of directors. The appointments are subject to the approval of the Board of Governors in Washington.

Regional boards have nine members, as stipulated in the Federal Reserve Act. Three are chosen by and represent banks in the district; three are chosen by the same banks to represent the public; three are designated by the Board of Governors to represent the public.

Jesse Ferguson, a spokesman for Hillary Clinton, issued a statement on Fed diversity after the letter was released saying the leading Democratic presidential candidate “believes that the Fed needs to be more representative of America.” She also thinks “commonsense reforms” such as removing bankers from regional Fed boards, “are long overdue,” Ferguson said.

Lockhart Retiring

Barring a surprise resignation, the Atlanta Fed presidency will be the next seat on the Federal Open Market Committee to open. Dennis Lockhart, the current president, will be required to step down in March 2017 after serving for 10 years.

“Diversity for the Federal Reserve is critical. This is the very nature of this institution, to broadly represent the communities we serve,” Kansas City Fed President Esther George said in response to a question Thursday after a speech in Albuquerque, New Mexico. “That means industry diversity. It means diversity of thought. And it means racial and gender diversity in the institution.”

There are two governorships already open. President Barack Obama has nominated Allan Landon, the former chief executive officer of Bank of Hawaii Corp., and Kathryn Dominguez, an economics professor at the University of Michigan in Ann Arbor, to fill the posts. Republican Senator Richard Shelby has refused to hold confirmation hearings for the pair in a dispute with the White House over its failure to fill a separate Fed post.

By Christopher Condon & Steve Matthews

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