Major donors consider funding Black Lives Matter
Some of the biggest donors on the left plan to meet behind closed doors next week in Washington with leaders of the...
Some of the biggest donors on the left plan to meet behind closed doors next week in Washington with leaders of the Black Lives Matter movement and their allies to discuss funding the burgeoning protest movement, POLITICO has learned.
The meetings are taking place at the annual winter gathering of the Democracy Alliance major liberal donor club, which runs from Tuesday evening through Saturday morning and is expected to draw Democratic financial heavyweights, including Tom Steyer and Paul Egerman.
The DA, as the club is known in Democratic circles, is recommending its donors step up check writing to a handful of endorsed groups that have supported the Black Lives Matter movement. And the club and some of its members also are considering ways to funnel support directly to scrappier local groups that have utilized confrontational tactics to inject their grievances into the political debate.
It’s a potential partnership that could elevate the Black Lives Matter movement and heighten its impact. But it’s also fraught with tension on both sides, sources tell POLITICO.
The various outfits that comprise the diffuse Black Lives Matter movement prize their independence. Some make a point of not asking for donations. They bristle at any suggestion that they’re susceptible to being co-opted by a deep-pocketed national group ― let alone one with such close ties to the Democratic Party establishment like the Democracy Alliance.
And some major liberal donors are leery about funding a movement known for aggressive tactics ― particularly one that has shown a willingness to train its fire on Democrats, including presidential candidates Hillary Clinton and Bernie Sanders.
“Major donors are usually not as radical or confrontational as activists most in touch with the pain of oppression,” said Steve Phillips, a Democracy Alliance member and significant contributor to Democratic candidates and causes. He donated to a St. Louis nonprofit group called the Organization for Black Struggle that helped organize 2014 Black Lives Matter-related protests in Ferguson, Missouri, over the police killing of a black teenager named Michael Brown. And Phillips and his wife, Democracy Alliance board member Susan Sandler, are in discussions about funding other groups involved in the movement.
The movement needs cash to build a self-sustaining infrastructure, Phillips said, arguing “the progressive donor world should be adding zeroes to their contributions that support this transformative movement.” But he also acknowledged there’s a risk for recipient groups. “Tactics such as shutting down freeways and disrupting rallies can alienate major donors, and if that's your primary source of support, then you're at risk of being blocked from doing what you need to do.”
The Democracy Alliance was created in 2005 by a handful of major donors, including billionaire financier George Soros and Taco Bell heir Rob McKay to build a permanent infrastructure to advance liberal ideas and causes. Donors are required to donate at least $200,000 a year to recommended groups, and their combined donations to those groups now total more than $500 million. Endorsed beneficiaries include the Center for American Progress think tank, the liberal attack dog Media Matters and the Democratic data firm Catalist, though members also give heavily to Democratic politicians and super PACs that are not part of the DA’s core portfolio. While the Democracy Alliance last year voted to endorse a handful of groups focused on engaging African-Americans in politics ― some of which have helped facilitate the Black Lives movement ― the invitation to movement leaders is a first for the DA, and seems likely to test some members’ comfort zones.
“Movements that are challenging the status quo and that do so to some extent by using direct action or disruptive tactics are meant to make people uncomfortable, so I’m sure we have partners who would be made uncomfortable by it or think that that’s not a good tactic,” said DA President Gara LaMarche. “But we have a wide range of human beings and different temperaments and approaches in the DA, so it’s quite possible that there are people who are a little concerned, as well as people who are curious or are supportive. This is a chance for them to meet some of the leaders of the Black Lives Matter movement, and understand the movement better, and then we’ll take stock of that and see where it might lead.”
According to a Democracy Alliance draft agenda obtained by POLITICO, movement leaders will be featured guests at a Tuesday dinner with major donors. The dinner, which technically precedes the official conference kickoff, will focus on “what kind of support and resources are needed from the allied funders during this critical moment of immediate struggle and long-term movement building.”
The groups that will be represented include the Black Youth Project 100, The Center for Popular Democracy and the Black Civic Engagement Fund, according to the organizer, a DA member named Leah Hunt-Hendrix. An heir to a Texas oil fortune, Hunt-Hendrix helps lead a coalition of mostly young donors called Solidaire that focuses on movement building. It’s donated more than $200,000 to the Black Lives Matter movement since Brown’s killing. According to its entry on a philanthropy website, more than $61,000 went directly to organizers and organizations on the ground in Ferguson and Baltimore, where the death of Freddie Gray in police custody in April sparked a more recent wave of Black Lives-related protests. An additional $115,000 went to groups that have sprung up to support the movement.
She said her goal at the Democracy Alliance is to persuade donors to “use some of the money that’s going into the presidential races for grass-roots organizing and movement building.” And she brushed aside concerns that the movement could hurt Democratic chances in 2016. “Black Lives Matter has been pushing Bernie, and Bernie has been pushing Hillary. Politics is a field where you almost have to push your allies hardest and hold them accountable,” she said. “That’s exactly the point of democracy,” she said.
That view dovetails with the one that LaMarche has tried to instill in the Democracy Alliance, which had faced internal criticism in 2012 for growing too close to the Democratic Party.
In fact, one group set to participate in Hunt-Hendrix’s dinner ― Black Civic Engagement Fund ― is a Democracy Alliance offshoot. And, according to the DA agenda, two other groups recommended for club funding ― ColorOfChange.org and the Advancement Project ― are set to participate in a Friday panel “on how to connect the Movement for Black Lives with current and needed infrastructure for Black organizing and political power.”
ColorOfChange.org has helped Black Lives Matter protesters organize online, said its Executive Director Rashad Robinson. He dismissed concerns that the movement is compromised in any way by accepting support from major institutional funders. “Throughout our history in this country, there have been allies who have been willing to stand up and support uprisings, and lend their resources to ensure that people have a greater voice in their democracy,” Robinson said.
Nick Rathod, the leader of a DA-endorsed group called the State Innovation Exchange that pushes liberal policies in the states, said his group is looking for opportunities to help the movement, as well. “We can play an important role in facilitating dialogue between elected officials and movement leaders in cities and states,” he said. But Rathod cautioned that it would be a mistake for major liberal donors to only give through established national groups to support the movement. “I think for many of the donors, it might feel safer to invest in groups like ours and others to support the work, but frankly, many of those groups are not led by African-Americans and are removed from what’s happening on the ground. The heart and soul of the movement is at the grass roots, it’s where the organizing has occurred, it’s where decisions should be made and it’s where investments should be placed to grow the movement from the bottom up, rather than the top down.”
Source: Politico
Nueva York pagará abogados a algunos inmigrantes
El Nuevo Herald - July 18, 2013, by Claudia Torrens - Nueva York se prepara para dar otro paso en su tradición de ayuda...
El Nuevo Herald - July 18, 2013, by Claudia Torrens - Nueva York se prepara para dar otro paso en su tradición de ayuda a inmigrantes: planea pagar los abogados de oficio que necesitan cuando se presentan ante un tribunal de inmigración para defenderse de un orden de deportación.
Para finales de este año o principios de 2014, algunos inmigrantes, autorizados o no, que enfrenten la deportación podrán presentarse ante el juez de inmigración con un abogado de oficio pagado con fondos municipales, reduciendo así sus posibilidades de ser deportados. Activistas, un magistrado federal y funcionarios locales planean anunciar el viernes que el gobierno municipal ha destinado 500.000 dólares a financiar un programa piloto que ofrecerá representación legal a inmigrantes.
Brittny Saunders, de la organización Center for Popular Democracy, dijo a The Associated Press que es la primera vez que un programa de este tipo se implementa en una municipalidad de Estados Unidos.
"La intención es reunir información sobre los beneficios que la representación legal supone tanto para un individuo detenido y en proceso de deportación como para su familia, su comunidad y la ciudad entera", dijo Saunders. "Esperamos que este programa sea un modelo para otras comunidades en todo el país".
Los inmigrantes que acaban en los tribunales de inmigración y que enfrenten la deportación no tienen derecho a ser defendidos por un abogado de oficio. Pueden contratar a un abogado privado, pero muchos no tienen el dinero para pagar ese servicio. Es por ese motivo que el gobierno municipal, varios activistas y el juez federal Robert Katzmann han unido esfuerzos para ofrecer ayuda a inmigrantes en esta situación.
Saunders dijo que en el estado de Nueva York una media de 2.800 inmigrantes enfrenta anualmente la deportación sin acceso a asistencia legal. Muchos de ellos, explicó, con frecuencia son detenidos por infracciones a las leyes de inmigración, como quedarse en Estados Unidos una vez vencida su visa.
El Congreso debate en estos momentos una reforma a las leyes de inmigración y el proyecto de ley aprobado por el Senado hace unas semanas propone un camino a la naturalización de 11 millones de inmigrantes sin autorización para vivir en el país. El gobierno del presidente Barack Obama deportó a más de 400.000 inmigrantes en el año fiscal 2012, una cifra récord.
El juez federal Katzmann y su grupo "Study Group on Immigrant Representation" publicó un informe en el 2011 que indicaba que 18% de los inmigrantes detenidos en Nueva York que cuentan con abogado salen adelante con su caso, mientras que entre los que no tienen asesoría jurídica, la cifra es de sólo 3%.
Entre los inmigrantes no detenidos, 74% sale adelante, mientras que entre los que no tienen asesoría legal la cifra es de 13%, señala el informe.
El programa piloto que se planea presentar el viernes — llamado "New York Immigrant Family Unity Project" (Proyecto por la Unidad Familiar de los Inmigrantes en Nueva York) — necesita escoger a través de un proceso público de varios meses a una organización sin ánimo de lucro que ofrezca sus abogados para la representación legal.
La presidenta del Concejo Municipal de Nueva York, Christine Quinn, ha sido una de las impulsoras del financiamiento del programa. Quinn aspira a ser la próxima alcaldesa de la ciudad durante elecciones municipales en noviembre.
En Nueva York viven más de tres millones de personas nacidas en otros países, según información del Censo.
Source
The Minimum Wage Needs An Upgrade
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of...
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of a fair minimum wage for an honest day’s work.
That promise, however, has eroded badly over time. In recent decades, the federal benchmark has grown increasingly obsolete, guaranteeing a bare minimum that is nowhere near enough to keep up with the growing costs of rent, food, and other essentials.
As calls for higher wages grow louder nationwide, it is imperative that federal officials take action to raise the federal minimum wage and renew the promise to American workers made nearly a century ago.
If the federal rate had merely kept up with inflation since its peak in the late 1960s, it would be nearly $11, one-and-a-half times today’s rate of $7.25. That rate has stayed stagnant since Congress last raised it in 2009. It is a remarkable number of years to go without an increase in wages, and workers have suffered for it.
In the absence of Congressional movement, states and cities have increasingly moved to give workers the raises they need. Yet entrenched forces at the federal level continue to stonewall, putting forth arguments that grow increasingly irrelevant by the day.
Many, for example, raise the specter of job losses. Yet cities that have raised their minimum wage in the past two years, from Los Angeles to Seattle to Chicago, simply have not seen the kinds of cataclysm that many warned about.
In fact, in Seattle, dozens of new restaurants have opened since higher wages kicked in – including many run by one of the fiercest critics of the increase. By the end of 2015, new permits for restaurants, coffee shops, and other food service establishments were on track to keep pace with or even surpass those issued in years past.
Another myth: higher wages would lead to higher prices - a bigger bill for a Big Mac, a pricier trip to Target. Yet here too, the apocalyptic predictions that precede wage increases fail to come true. In Seattle, the costs of groceries, gas, and retail have stayed stable over the past year - even though businesses warned they would need to hike prices if wages were to rise.
In recent weeks, some fast-food chains have made headlines by declaring they would replace employees with automated kiosks. Looking at the bigger picture, though, the overall risks of automation are low. Research just last year found that, while minimum wage increases can reduce some routinized jobs like cashiers, they also swell the number of more complex jobs like food preparation, resulting in an overall zero-sum change.
The fact is, raising the minimum wage gives local economies a boost by putting more money in the pockets of consumers. Higher wages also let businesses hold on to workers and improve customer satisfaction, all of which improve employers’ bottom line.
That’s why the majority of businesses actually support a higher minimum wage, despite the noise coming from groups like the Chamber of Commerce and the National Restaurant Association. A leaked memo earlier this year showed that 80 percent of business executives around the country support higher wages and paid sick days - and that they are coached to oppose those policies in public.
While powerful interests keep trying to muddle the debate, it’s clear that even a growing economy is simply not reaching millions of hardworking Americans. And it’s not just fast-food workers. A variety of workers receive less than $15: teachers, paramedics, home health-care workers, and many others. A recent study showed that even many manufacturing jobs – the foundation of the middle-class – pay less than $15, forcing the government to cover the gap with public assistance programs like food stamps and Medicaid.
As minimum wages affect more and more workers, it is no wonder that more Americans are starting to get on board. This year, dozens of cities and states – including some that lean deeply Republican – are considering increases. Colorado, Maine, Arizona and Washington State are all running ballot measures that would raise wages for close to two million workers in those states alone.
Rather than focusing on a fantasy Armageddon that never comes, lawmakers in Congress would do well to embrace the need for better pay. In the meantime, states and cities will continue the fight to fulfill the pledge that the FLSA made so many years ago.
By JoEllen Chernow
Source
AFT’S $2.6 Million Bayou State Pay
Tuesday’s Dropout Nation analysis of American...
Tuesday’s Dropout Nation analysis of American Federation of Teachers’ 2014-2015 financial disclosure to the U.S. Department of Labor certainly offered plenty of insight on how it is buying influence on the national level. But the nation’s second-largest teachers’ union’s applies its influence-buying most-fervently on behalf of its locals, especially in big cities that are the battlegrounds in the battle over the reform of American public education. This is especially clear in Louisiana, where the union has spent $2.6 million to oppose the reforms in New Orleans and the rest of the state that run counter to the union’s very mission.
Since the damage from Hurricane Katrina (and the longstanding failures of the U.S. Army Corps of Engineers to ensure that levies surrounding the city could stand up to potential disaster) a decade ago, the Crescent City has become the epicenter of one of the nation’s most-important systemic reform efforts. Thanks to the Louisiana state government’s takeover of failing schools run by the Orleans Parish district, and the move to transform them into charter schools (as well as open new ones), New Orleans has now become the model of sorts for expanding school choice. Charter schools serve 79 percent of the city’s children (as of 2012-2013), according to the National Alliance for Public Charter Schools.
The transformation hasn’t been perfect by any means. There is still lingering anger among residents over how the state essentially implemented the reforms without their input. The quality of public education, though improved, is still nowhere near it should be, especially in Orleans Parish-run schools. As the Center for Reinventing Public Education also points out, the need for building out the infrastructure for families to exercise choice in informed ways also remains; this includes addressing transportation issues that result in kids traveling for as long as two hours from one part of town to another just to go to school.
All that said, the results for kids have been amazing. As Tulane University Professor Doug Harris determined in his assessment of public school performance in New Orleans, the improvements in student achievement were greater than those made by traditional districts in other cities and even better than those that could be achieved by tactics traditionalists tend to tout such as class-size reduction schemes. This is good for kids in the Crescent City and for their families, who have been subjected to the abuse of both the educational and criminal justice systems of the Bayou State for far too long.
None of this is good news to the ears of AFT, its Crescent City local, United Teachers New Orleans, or the Louisiana Federation of Teachers, the union’s state affiliate. After all, if children in New Orleans are getting higher-quality education through a Hollywood Model style of delivering teaching and curricula, than there is no need to keep the obsolete traditional district model upon which AFT (along with National Education Association) derive its influence and ideology. As it is, charters have become the dominant players in cities such as Detroit, and Washington, D.C., in which AFT operates. Given that unlike NEA, AFT has little penetration in suburbia, propagandizing against growth of charters in New Orleans — along with stopping the expansion of choice — is critical to the union’s long-term survival.
It also about the cold hard cash and power of its local. Before Katrina, UTNO had a stranglehold over education policies and practices within Orleans Parish, and had the ability to forcibly collect dues from 7,500 teachers and other employees working for the district. But with all but a smattering of schools still operated by Orleans Parish — and charter schools having the ability to not bargain with the union if they so choose — UTNO no longer has the bodies or the money necessary to oppose systemic reform. Some 1,000 teachers and others now likely make up the union’s rank-and-file, 87 percent less than the numbers on the rolls a year before Katrina reached landfall. This, in turn, isn’t helpful to AFT, whose own revenue is derived from the per-capita tax collected from every teacher and school employee compelled to pay into its units.
But AFT isn’t just concerned about New Orleans alone. After all, the Bayou State has been among the foremost states in expanding school choice and advancing systemic reform. This includes outgoing Gov. Bobby Jindal’s successful expansion four years ago of the state’s school voucher program, which now serves 7,400 children attending 141 private and parochial schools. Eight seats on the Bayou State’s Board of Elementary and Secondary Education, which oversees the department run by Supt. John White, are also up for grabs. There’s also the possibility that the Recovery School District, which oversees systemic reform in New Orleans, could also end up taking over failure mills in Baton Rouge and other cities. Particularly in Louisiana’s capital city, just 50 percent of kids attending traditional public schools there met proficiency targets in 2013-2014.
Another hotbed, until recently, was Jefferson Parish, whose board was under the control of a reform-minded majority. Back in 2012, the board decided to ditch its contract with AFT’s Jefferson Federation of Teachers and negotiate for a deal that would give the district more flexibility in operation. This didn’t sit too well with the unit, which then sought national’s help in putting the district back under its thumb.
So AFT has put a lot of energy and money into demonizing Crescent City reform efforts — and stopping reform in the rest of the state.
The union subsidized UTNO to the tune of $134,593 in 2014-2015, four times levels given to the unit during the previous year. At the same time, the union kicked another $59,294 into the organizing project it controls along with the local; the union also paid teachers’ union-oriented law firm Rittenberg, Samuel & Phillips $57,654 to handle a variety of lawsuits, including one filed against Orleans Parish over the layoff of black teachers working in the district before Katrina reached shore. Over the past two years alone, AFT poured $754,878 into propping up UTNO and helping it rebuild its membership.
AFT’s work in New Orleans goes beyond subsidizing UTNO. The union has spent big on events and meetings. This includes dropping $80,490 on meeting space and “reimbursable expenses” at the swanky Loews New Orleans Hotel, $9,840 at the more-humble Homewood Suites, and $7,700 at one of the several Marriott hotels in town. Expect AFT to have dropped even more money this fiscal year for this week’s “Advancing Racial Justice” gathering, which will feature several of the union’s prime vassals, including the Schott Foundation for Public Education, Center for Popular Democracy and the Alliance to Reclaim Our Schools, all of whom are making the trip as condition of being beneficiaries of the largesse the union gets forcibly out of the pockets of teachers. AFT also spent $10,843 on materials printed by Simmons Press, a local outfit, for print materials, paid $7,500 to Lamar Media for billboards, and dropped $17,921 on ads in the Times-Picayune.
But never forget that AFT will play all the political angles. This includes going so far as to attempt to unionize the very Crescent City charters it opposes. The union subsidized its New Orleans Charter Organizing Project to the tune of $244,070 in 2014-2015. As with a similar effort in Los Angeles, AFT hopes that it can get teachers working in charters to forget all the bad things the union says about them and let it collect dues out of their precious paychecks. Lovely.
Meanwhile AFT put plenty of dough into efforts in the rest of the Bayou State. It subsidized Louisiana Federation of Teachers and its various political action funds to the tune of $462,965. While 13 percent less than in 2013-2014, it still means that AFT has sunk $995,790 into the state affiliate over the past two years. The union also paid $20,000 to lobbyist Haynie & Associates for its work at the statehouse. AFT also backed the East Baton Rouge Federation of Teachers and its organizing project to the tune of $222,420, while spending another $10,501 on so-called “Member-related costs” at a Doubletree hotel in the city. In the state’s northeast sector, AFT subsidized an organizing project focused on helping an affiliate in Monroe at a cost of $104,363. In Caddo Parish, where the AFT got involved in stopping an effort to create a new school district, the union put $224,002 into an organizing project there.
AFT’s biggest spend –and best bang for the buck — came in Jefferson Parish, where its local had lined up a slate of candidates to take out the reform-minded majority. The union put down $669,135 to fund a so-called “Committee for School Board Accountability”, which ran adds backing the local’s favored candidates. It also subsidized an organizing project there (which, as you would expect, was partially tied to rallying members to vote on Election Day) to the tune of $186,837. The union also sent paid $23,911 for hotel and meeting space at a Sheraton Hotel in Metairie, where the district’s offices are located, as well as $5,553 for room-and-board at an Extended Stay hotel.
It was money well-spent. By last December, three of the four candidates AFT and Jefferson Federation of Teachers backed won seats, giving the union a five-to-six-seat majority on the nine-member board. AFT President Rhonda (Randi) Weingarten celebrated the victory with a press release as well as two tweets on Twitter. Eight months later, the district struck a new contract with the AFT local, albeit one that is a mere seven pages long (versus 100 pages for the previous deal), and requires teachers to resolve differences with school leaders before going to the union for help. At the end of the day, a contract with the district means dollars that continue to flow into AFT’s coffers. And for the union and its 229 staffers earning six-figure salaries, that’s always a good thing.
You can check out the data yourself by checking out the HTML and PDF versions of the AFT’s latest financial report, or by visiting the Department of Labor’s Web site. Also check outDropout Nation‘s new collection, Teachers Union Money Report, as well as for the collection,How Teachers’ Unions Preserve Influence, for this and previous reports on AFT and NEA spending.
Source: Dropout Nation
Amazon’s $15 an Hour Minimum Wage and the Federal Reserve Board
This is where Fed Up played an incredible role. They were a crucial voice on the other side, constantly reminding the...
This is where Fed Up played an incredible role. They were a crucial voice on the other side, constantly reminding the Fed of its legal mandate to promote full employment. Fed Up had important allies in this effort, most importantly former Fed chair Janet Yellen, but it is likely that Yellen and her allies on the FOMC would have been forced to raise rates sooner and faster if not for pressure from Fed Up.
Read the full article here.
Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were...
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were apparently not on the agenda.
Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair's independence in setting monetary policy.
"I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently," Earnest told reporters ahead of the meeting.
The closed-door discussion is instead an opportunity to "trade notes" on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.
Obama and Yellen talked about the growth outlook, "the state of the labor market, inequality and potential risks to the economy," the White House said after the meeting. The Hill's Jordan Fabian has more: http://bit.ly/25VuzIZ.
HOUSE TO MARKUP PUERTO RICO DEBT BILL: The House Natural Resources Committee will begin on Wednesday to mark up legislation aimed at saving Puerto Rico from a massive debt crisis.
Lawmakers have been working to make significant changes to the measure, which is expected to unveiled as early as Monday night, since the panel released a discussion draft on March 29.
The Puerto Rico measure, which put the island's finances under federal oversight and authorize a restructuring of some of its debt, will need to strike a balance and attract bipartisan support and the backing of the White House to move forward.
LEW MAKES CASE FOR GLOBAL ECONOMIC LEADERSHIP: Treasury Secretary Jack Lew on Monday made the case for the United States to continue its global economic leadership as the administration faces criticism from Donald Trump and other presidential candidates.
"We know that the global landscape of the next century will be very different than that of the post-war era," Lew said in a speech at the Council on Foreign Relations. "And if we want it to work for the American people, we need to embrace new players on the global economic stage and make sure they meet the standards of the system we created, and that we have a strong say in any new standards."
"The worst possible outcome would be to step away from our leadership role and let others fill in behind us," he added. The Hill's Naomi Jagoda fills us in: http://bit.ly/1qjTIwe.
GOLDMAN SACHS SETTLES MORTGAGE PROBE FOR $5 BILLION: Goldman Sachs will pay more than $5 billion to settle charges that it engaged in "serious misconduct" when selling risky mortgages leading up to the 2008 financial collapse.
The $5.06 billion civil settlement also saw the Wall Street giant admit it failed to properly inform investors of the risks in the subprime mortgage securities the bank was selling.
"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," acting associate attorney general Stuart Delery said in a statement.
One of the government charges, which Goldman has now acknowledged, was that the bank kept internal concerns about the strength of the mortgage market hidden from potential investors. Here's more from The Hill's Peter Schroeder: http://bit.ly/1qjTJQQ.
SANDERS SAYS GOLDMAN'S BUSINESS 'RIGGED': Bernie Sanders charged Monday that the settlement proves Goldman Sachs's business is "based on fraud."
The Justice Department announced Monday that the Wall Street giant would pay over $5 billion to settle charges it sold risky mortgage investments in the lead up to the financial crisis, and didn't tell investors enough about it.
Sanders, who has built his presidential campaign in large part on big bank bashing, said the settlement proves his point.
"What they have just acknowledged to the whole world is that their system ... is based on fraud," he told supporters in New York.
Sanders also complained that the civil settlement did not include any criminal charges, proving the "corruption of our criminal justice system." http://bit.ly/1TNk2Lm
HAPPY MONDAY and welcome to Overnight Finance, where we're wondering why Herbert Hoover gets to join the racing presidents. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.
Tonight's highlights include securities fraud charges for Texas's attorney general, a trillion-dollar national pension gap and a Tax Day delay.
See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.thehill.com/signup/48.
ON TAP TOMORROW:
Senate Finance Committee: Hearing on examining cybersecurity and protecting taxpayer information, 10 a.m
Senate Appropriations Subcommittee on Financial Services: Hearings to examine proposed budget estimates and justification for fiscal year 2017 for the Securities and Exchange Commission and Commodity Futures Trading Commission., 10:30 a.m.
House Rules Committee: Business Meeting: H.R. 2666: No Rate Regulation of Broadband Internet Access Act; H.R. 3340: Financial Stability Oversight Council Reform Act; H.R. 3791: To raise the consolidated assets threshold under the small bank holding company policy statement and for other purposes.
Puerto Rico Oversight, Management, and Economic Stability Act expected to be released.
"Getting Her Money's Worth: What Will It Take to Achieve Equal Pay?" discussion featuring Sens. Kirsten Gillibrand (D-NY) and Heidi Heitkamp (D-ND), 11:45 am.
BERNIE FANS LEFT'S FLAMES AGAINST FED: Liberal activists are putting a target on the Federal Reserve for the 2016 elections, much to the delight of the Bernie Sanders campaign.
Denouncing an agenda that they say tilts toward Wall Street, members of the "Fed Up" coalition on Monday unveiled a set of reforms that would alter how the central bank does business.
"No longer are we focused only on fixing the Fed's monetary policy and internal governance positions," said Ady Barkan, the group's campaign director. "We are now beginning an effort to reform the Federal Reserve itself. Peter Schroeder breaks down the fight: http://bit.ly/23yMSBH.
YOU HAVE THREE MORE DAYS TO PROCRASTINATE: For most people, tax returns are due one week from today.
This year's due date for filing federal individual income tax returns is April 18, not April 15. This is because the District of Columbia is observing Emancipation Day on April 15, which falls on a Friday, according to the Internal Revenue Service (IRS).
People living in Massachusetts and Maine have until April 19 to file their tax returns because those states observe Patriots' Day on April 18.
Those who are serving in combat zones or contingency operations or become hospitalized due to injuries from their service can have additional time to pay their taxes. Those affected by federally declared disasters might also have more time, the IRS said: http://bit.ly/1Q3tzHk.
AG GROUPS PUSH FOR PACIFIC TRADE DEAL: The nation's farmers and ranchers are putting their weight behind efforts urging Congress to pass a sweeping Asia-Pacific deal this year.
In a letter to congressional leaders on Monday, 225 food and agricultural groups called on lawmakers to move forward on the 12-nation Trans-Pacific Partnership before President Obama leaves office.
"The TPP presents a valuable opportunity for U.S. agriculture; one that we cannot afford to miss," the groups wrote. The Hill's Vicki Needham explains why: http://bit.ly/1S5QCFD.
SEC CHARGES TEXAS ATTORNEY GENERAL: The Securities and Exchange Commission on Monday charged Texas's top law enforcement official with civil securities fraud for allegedly deceiving investors in a computer company.
Texas Attorney General Ken Paxton (R) received 100,000 shares of Servergy, a Nevada-based technology company, to pitch investors on a server it was selling between 2011 and 2013, according to the SEC complaint. Servergy officials allegedly marketed the server with incorrect information, and Paxton allegedly did not disclose to investors that he would be paid a commission: http://bit.ly/1RPHyG0.
US PUBLIC PENSIONS FACE $3 TRILLION HOLE: The nation's public pension system is facing a $3.4 trillion funding hole that may force cities and states to either cut spending or raise taxes to cover future shortfalls.
The deficit in pension funds is three times more than official figures and is growing, and without an overhaul could weigh on state and local budgets and lead to Detroit-like bankruptcies, according to research reported by the Financial Times.
Joshua Rauh, a senior fellow at the Hoover Institution who put together the report, told the FT that "the pension problems are threatening to consume state and local budgets in the absence of some major changes."
"It is quite likely that over a 5- to 10-year horizon we are going to see more bankruptcies of cities where the unfunded pension liabilities will play a large role." Here's more from Vicki Needham: http://bit.ly/1Su85op.
CONSERVATIVES FIGHT ENERGY TAX BREAKS IN FAA BILL: Conservative groups that oppose a proposal to include energy tax breaks in the long-term reauthorization of the Federal Aviation Administration are vowing to take their fight to the House if the Senate moves ahead.
Americans for Prosperity and Freedom Partners said Monday that if the Senate ends up attaching energy tax provisions to the FAA bill, the organizations will ratchet up pressure on lawmakers across the Capitol to oppose the language or pass a clean-extension of FAA.
"If the Senate isn't going to do anything to stop this, we're going to put pressure on the House," Andy Koenig, senior policy advisor at Freedom Partners, said on a press call. "The House is under no obligation to take up a bunch of energy subsidies if they don't want to." The Hill's Melanie Zanona walks us through the battle: http://bit.ly/1RPHrKH.
DEMS CALL FOR GREATER NONBANK MORTGAGE OVERSIGHT: Two Democratic lawmakers are calling on the nation's top consumer protection agency to ramp up its oversight of nonbank mortgage servicers.
Sen. Elizabeth Warren (Mass.) and Rep. Elijah Cummings (Md.) asked the Consumer Financial Protection Bureau (CFPB) on Monday to identify all of and collect more data on the growing number of financial institutions other than banks that service mortgages.
Warren and Cummings pointed to recommendations from a non-partisan government watchdog report published Monday. Warren, a long-time financial industry watchdog, and Cummings, the top Democrat on the House Oversight Committee, requested the Government Accountability Office (GAO) study. I'll fill you in on the rest here: http://bit.ly/1Sc3ldc.
Did you know 67% of all job growth comes from small businesses? Read More
NIGHTCAP: Five Starbucks locations in DC will start serving alcohol and "small plates," which is millennial for paying more money for less food: https://www.washingtonian.com/2016/04/08/5-dc-starbucks-will-sell-beer-wine-small-plates-next-week/.
By Sylvan Lane
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New York Plans $15-an-Hour Minimum Wage for Fast Food Workers
The labor protest movement that fast-food workers in New York City began nearly three years ago has led to higher wages...
The labor protest movement that fast-food workers in New York City began nearly three years ago has led to higher wages for workers all across the country. On Wednesday, it paid off for the people who started it.
A panel appointed by Gov. Andrew M. Cuomo recommended on Wednesday that the minimum wage be raised for employees of fast-food chain restaurants throughout the state to $15 an hour over the next few years. Wages would be raised faster in New York City than in the rest of the state to account for the higher cost of living there.
The panel’s recommendations, which are expected to be put into effect by an order of the state’s acting commissioner of labor, represent a major triumph for the advocates who have rallied burger-flippers and fry cooks to demand pay that covers their basic needs. They argued that taxpayers were subsidizing the workforces of some multinational corporations, like McDonald’s, that were not paying enough to keep their workers from relying on food stamps and other welfare benefits.
The $15 wage would represent a raise of more than 70 percent for workers earning the state’s current minimum wage of $8.75 an hour. Advocates for low-wage workers said they believed the mandate would quickly spur raises for employees in other industries across the state, and a jubilant Mr. Cuomo predicted that other states would follow his lead.
“When New York acts, the rest of the states follow,” said Mr. Cuomo, a Democrat, citing the state’s passage of the law making same-sex marriagelegal. “We’ve always been different, always been first, always been the most progressive.”
The decision, announced in a conference room in Lower Manhattan, set off a raucous celebration by hundreds of workers and union leaders outside.
Flavia Cabral, 53, a grandmother from the Bronx who works part-time in a McDonald’s for $8.75 an hour, pointed out the scars where fry baskets had seared her forearms. “At least they listened to us,” she said, referring to the panel. “We’re breathing little by little.”
Bill Lipton, state director of the Working Families Party, called the decision a victory for the “99-percenters.” Mr. Lipton, who has campaigned for better pay for low-wage workers for years, said, “There’s clearly a new standard for the minimum wage, and it’s actually a living wage for the first time in many, many decades.”
The decision comes on the heels of similar increases in minimum wages in other cities, including Los Angeles, San Francisco and Seattle. On Tuesday, the Los Angeles County Board of Supervisors agreed to raise the county’s minimum wage to $15 an hour by 2020, matching a move the Los Angeles City Council made in June.
But a more complicated political terrain in New York forced Mr. Cuomo to take a different route.
Mayor Bill de Blasio has demanded a higher minimum wage in the city to account for its higher cost of living. But neither he nor the City Council has the power to set wages citywide.
When lawmakers in Albany balked at the idea, Mr. Cuomo convened a board to look at wages in the fast-food industry, which is one of the biggest employers of low-wage workers in the state, with about 180,000 employees.
After hearing testimony from dozens of fast-food workers, the board members decided the state should mandate that fast-food chains pay more. Advocates often pointed to the giant pay packages the chains gave to their top executives.
The board’s decision removed the last significant hurdle to raising wages, since the acting labor commissioner, Mario Musolino, who must act on the recommendation, is widely expected to accept it.
The board said the first wage increase should come by Dec. 31, taking the minimum in the city to $10.50 and in the rest of the state to $9.75. The wage in the city would then rise in increments of $1.50 annually for the next three years, until it reaches $15 at the end of 2018. In the rest of the state, the hourly wage would rise each year, reaching $15 on July 1, 2021.
The mandate should apply to all workers in fast-food restaurants that are part of chains with at least 30 outlets, the board said. They defined fast food as food and drinks served at counters where customers pay before eating and can take their food with them if they choose.
The restaurant industry has chafed at these decisions. “We continue to say that we think it’s unfair that they singled out a single segment of our industry,” Melissa Fleischut, the executive director of the New York State Restaurant Association, said.
McDonald’s, a multinational corporation that paid its chief executive more than $7.5 million last year, said in April that it would raise the minimum wage it pays workers in company-owned stores to $9.90 by July 1 and to more than $10 next year.
Source: The New York Times
Advocacy group calls for more oversight of California charter school spending
Advocacy group calls for more oversight of California charter school spending
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report...
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” reported over $200 million lost to fraud, corruption and mismanagement in charter schools.
Read the full article here.
Americans for Democratic Action Hosts Philly Charter School Forum: Who’s Minding the Store?
Weekly Press - December 17, 2014, by Nicole Contosta - Charter Schools have become a divisive issue in Philadelphia....
Weekly Press - December 17, 2014, by Nicole Contosta - Charter Schools have become a divisive issue in Philadelphia. Supporters swear to their effectiveness. Critics argue that they lack accountability.
Both sides of the charter school debate were heard last Tuesday, December 9th. That’s when the Americans for Democratic Action (ADA), hosted the Philly Charter School Forum: Who’s Minding the Store?
Panelists included Feather Houstoun from the Philadelphia School Reform Commission (SRC); Jurate Krokys, founding principal of the Independence Charter School, Kyle Serette of the Center for Popular Democracy and author of Fraud and Financial Mismanagement in PA’s Charter Schools; and Barbara Dowdall, retired public school teacher and former ADA board member.
Solomon Leach, Philadelphia Daily News Education Reporter, moderated. Leach began the evening’s discourse by asking Houstoun to comment on the evolution of charter schools in Philadelphia.
Houstoun, who spent most of her career in managing care, transit and welfare problems, cited her experience with "good oversight." But when Houstoun joined the SRC three and half years ago, "I was really surprised […] about the incredibly precarious situation the school district was in. Now," Houstoun continued, "we’re living within our means, but we’re horrifically under-resourced."
And with regard to charter schools, Houstoun said, "I was really dumbfounded by how badly over the course of time the [Philadelphia School] District had organized itself to assure that we were getting good value for children in charter schools."
To Houstoun, getting good value for the city’s children proves relevant given the fact that "40 percent of our children are being educated at charter schools that are separate from the district apparatus."
But, Houstoun continued, "We must accept responsibility for these things." And in Houstoun’s opinion, part of the problem resulted from the fact that "the District did not set up standards for academic performances. There were no systematic annual check-ups about what they were doing in terms of finance, corporate or academic measures."
Houstoun cited the fact that the SRC only renews charter schools on a five-year basis as contributing to the lack of oversight. However, at the same time, Houstoun expressed optimism when it comes to moving forward with the city’s charter schools. Over the past year, the SRC performed an overhaul of the charter school office, placing Julian Thompson at the helm. "We’re operating within charter school law that gives us the obligation to monitor and review charter schools," Houstoun emphasized.
From the charter school perspective, Krokys said that she hasn’t always had the best experience working with the SRC.
"I’ve been in the charter world for about 14 years," Krokys said, "In the past and sometimes the not so recent past—what it was—the relationship and the process of authorization and renewal were secret, haphazard, and hostile. And I’m not exaggerating. It was always up for grabs."
In answering Leach’s question about what she’s learned from really effective charter schools, Krokys said, "Community partners and stakeholders are one of the things that can be done with all schools—but it’s especially important for charter schools. Site admission selection for parents and staff—there’s nothing like feeling that you have chosen something and were not defaulted to it," Krokys stressed. "That makes a big difference in partnership.
The same thing," Krokys continued, "goes for staff. The staff is not assigned; they’re not grazing until they get their retirement. Staff is selected to work in a specific school."
Serette discussed the history and evolution of charter schools. That began on March 31, 1988. "That’s when our chamber got in front of the press club in DC and announced a new type of school, something that would help figure out the most complicated problems in our education system. And it was the charter school."
As Serette explained it, the charter school concept was designed as a "calculated risk to figure out if we could figure out something that could then be exported into the public system. And," Serette continued, "This makes sense because you don’t want to take a calculated risk and export it into the whole system. I think we forgot that lesson as we were expanding throughout the nation.
We have a situation where we have the largest charter school system in the country-K12 Inc.," Serette continued, "It’s fully funded by public dollars but it’s traded on the stock exchange. The goal of being on the exchange is to make money. So we have slightly diverged from the original mission of charters."
With regard to the effectiveness of charter schools, "they have had a meaningful impact," Serette said, adding, "They have taught us some really smart things to figure out and export to our system. The first charter school started in 1992. And now we have 43 states with charter school laws."
But, Serette noted, citing an investigation of 15 states, his office found, "about 136 million in charter school funding that was abused, that was used for fraud. To us, that was an alarming number."
In PA, Serette explained that he didn’t think the state government "did a great job of regulating the system. So we have here, two auditors looking after a system that has revenue of 700 million, auditing 86 charter schools.
Dowdall, in answering Leach’s question about academic accountability for charter schools said, "Rather than start with the charter school in the quest of academic accountability, we might journey back to the government entities that established, regulates and monitors them namely the PA State Legislature the Governor of PA, the State Department of Education and the SRC.
While the public schools whose assumed inadequacies sparked the takeover," Dowdall continued, "they were more or less placed in a giant petri dish; we more or less organized a dizzying away of name changes, administrative changes, etc. Test prep came to rule and push out libraries, librarians, music, art and other extra curricular activities. Funding cuts led to the disappearance of nurses, counselors, teaching assistants, custodial help and the financial oversight provided by operations personnel.
Twenty three neighborhood schools," Dowdall continued, "were shuttered. And 40 new charters are supposed to open. Since the SRC has the authority to approve schools," Dowdall said, "maybe they should do so based on the actual needs of the district rather than the whims and desires in some highly funded charters."
As the discussion continued, Leach asked Houstoun "how has the introduction [of reversing] no-charter re-imbursement in PA influence the SRC assessment when it comes to renewing charters?"
Leach’s question references the fact that Government Corbett eliminated the $100 million for charter school re-imbursement to the Philadelphia School District in 2011.
Houston cited the cancellation of the re-imbursement as painful. "For every child that’s added to charter school system, we can’t take off $10,000 for expenses. If," Houstoun explained, "we can restore the charter re-imbursement that was in place, it would alleviate the first level of pain that we’re suffering in the district right now."
Leach asked Krokys to comment on how to rectify the public perception of charter schools when taking into account those that are underperforming or fraudulent.
Krokys began her answering by stressing, "There are thousands and thousands of children who would not have had one chance in their neighborhood school. And a lot of them came through my doors and are now graduating from college."
When it comes to addressing inadequacies in Philadelphia charter schools, Krokys said, "It took a while for the charter school community to finally say, ‘yes. There are some charters that need be closed.’ Yes," Krokys said, "we are weary of the few bad apples because that’s what ends up in the papers. And that’s what ends up tainting everything else."
With regard to K12 Inc., "Who the hell gave permission for a for-profit to run a charter school?" Krokys asked. "Whose fault was that?"
To Serette, Leach asked, "One of the original aims of charter schools was to be a model for public schools. But that got lost in the shuffle over time. How do you think we can go back so that public schools can benefit from the successful roles of charters?"
According to Serette, "The narrative in the US is that the public school system is broken, right? And you can’t just get a good education so you have to be saved by a lot of other systems. But the truth is," Serette continued. "We have a good public school system in upper class and upper middle class neighborhoods. Those tend to be wonderful. And then you have the struggling sectors where people can’t make ends meet and we’re trying to figure that out."
Leach then asked Dowdall how charter and public schools could reach a middle ground.
To Dowdall, "It’s about equity. It’s about resources. Whether it’s traditional or charter, it can be defined. It’s about small classes with libraries where the students can be guided."
And in Dowdall’s opinion, "There needs to be an agreement between those on the board that authorization renewal for charter schools should be set at three years as opposed to five."
For more information on the ADA, visit Youth http://www.phillyada.org.
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Spa mayor seeks to ban gun, ammo sales at City Center
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday...
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday in a welcoming speech to Local Progress New York.
Read the full article here.
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