CPD IN THE NEWS

JACKSON HOLE, WY – Last Thursday was the first time the most powerful financial players in the U.S. formally met with the people their policies affect. During the Federal Reserve Economic Policy Symposium at Jackson Lake Lodge, a meeting between the Fed and Fed Up sparked impassioned speeches that burned through barriers of language, culture, race, and socio-economic status. But the fervency expressed by Fed Up members seemingly had little influence on the Fed’s impending decision to raise interest rates, something Federal Reserve board chair Janet Yellen announced in her annual address the following day.

Still, members of Fed Up—a syndicate of the Center for Popular Democracy built around the ideology that the Fed’s policies affect people of every skin color and income bracket—were encouraged by the meeting.

Shawn Sebastian is the field director of the Fed Up campaign. “I think the meeting with the Fed was historic and unprecedented,” he said. “There are never that many Fed officials in the same room at the same time talking about monetary policy, and they’re certainly not doing that with low income people of color.”

Federal Reserve board leaders like Neel Kashkari, Lael Brainard, Esther George and board vice president Stanley Fischer all participated in the Fed Up roundtable.

The landmark meeting was the result of Jackson Lake Lodge overselling hotel rooms that Fed Up members had reserved. After the group filed several federal complaints, the Fed agreed to the sit down.

‘Don’t slow down the economy’

Echoes of agreement among Fed Up’s constituency rippled through the crowded room at Jackson Lake Lodge Thursday as the roundtable began. Members of Fed Up elucidated ideas of stagnant wages, unemployment, and underemployment that disproportionately plague people of color in the United States. Fed Up members explained how the Federal Reserve’s pending decision to slow down the economy by raising interest rates could damage already neglected communities. Nearly every speaker from Fed Up concluded with one central idea: Don’t slow down the economy. Not yet. Don’t hike interest rates. Not yet. Our communities are still underserved. Our people are still underpaid. Our unemployment rates are still nearly double the national average.

Esther George, chair of the KC Federal Reserve, responded to protestors with deference to Congress. “Our objective is to follow mandates of what Congress has made out,” she told the crowd. “The objective is not to slow down the economy; that would be irresponsible.” George continued by explaining that the objective of the Fed was to walk the balance beam between the ideal of full employment and the consequence of potential inflation due to an oversaturation in the job market.

Fed Up’s expert on economic forces, Josh Bivens of the Economic Policy Institute, said the Fed’s concerns about inflation should be adjusted in light of the impacts of the Great Recession. Bivens claimed a period of “overshooting” employment targets are necessary to heal the effects of that economic disaster, and that this period of overshooting is especially important to people of color, because it takes longer for their unemployment rates to catch up to national averages.

“[If] The Federal Reserve starts slowing the economy, it starts halting progress in reducing unemployment before the benefits of that reach the last people to be hired,” Bivens said.

Promising diversity

Fed Up seemed to impact members of the Federal Reserve Board on a few fronts. Several ambitious promises were made by members of the Fed, catalyzed by discussions held during the roundtable. Sebastian believes the most concrete impacts Fed Up had on the Federal Reserve were when Lael Brainard of the Federal Reserve’s board of governors committed to seriously considering a slate of candidates for board positions that more closely reflect America’s diversity. The board’s lack of diversity is a source of contention among Fed Up members, as the board is comprised of 16 white, predominantly male members. The only exception is Neel Kashkari of the Minneapolis Federal Reserve Bank, who is of Indian descent. Fed Up members are not the first to point this out, however. This summer a formal letter of complaint, signed by Bernie Sanders, Elizabeth Warren and some 127 other lawmakers, demanded the Federal Reserve open up to more diversity.

Another victory for the Fed Up campaign happened when Kashkari recommitted to an impressive research project studying racial disparities. Minnesota and Wisconsin, both states within Kashkari’s district, are rated the worst states in the country for black people to live based on a report by 24/7 Wall Street. Kashkari’s goal is to find the source of the disparities that propagate those statistics.

Blacks in Wisconsin face an unemployment rate of 21 percent which is more than quadruple the national average. Their incarceration rate is the third highest in the country, and their rate of home ownership is the tenth lowest. At a meeting earlier this month in Minneapolis, Kashkari sat down with Neighborhoods Organizing for Change to discuss the problem.

“Some of the racial disparities are a crisis, and we need to treat them like a crisis,” Kashkari said. “There’s something structural in the U.S. economy, in good times and bad, that black unemployment is almost always twice as high as white unemployment.”

However, in spite of all protestor efforts, in what is considered to be one of Federal Reserve Board Chair Janet Yellen’s most important speeches of the year, she explicitly stated that interest rate hikes were on the horizon. Yellen told the audience at Jackson Lake Lodge, “Indeed, in light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months.” PJH

By Natosha Hoduski

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Capital NY - June 16, 2014, By Nidhi Prakash - With just four remaining days in the state legislative session, sponsors of a new bill to grant citizenship rights to undocumented immigrants said they hope to begin building momentum for next session.

“First of all, this is obviously not something that is going to pass by the end of this week," said State Senator Gustavo Rivera, at a press conference in Battery Park City. "This was never about this particular legislative session. We’ve been working on it for almost two years, it’s a bold idea and we wanted to make sure it was thought out."

The bill, titled the New York is Home Act, would make it legal for undocumented immigrants in New York State to vote in local and state elections, get professional and drivers' licenses, and make them eligible for state-funded Medicaid and financial aid for higher education.

“What we’re doing today is we’re starting a conversation not only in New York, but hopefully across the country,” said Rivera, who was joined at the press conference by representatives from the Center for Popular Democracy and Make the Road New York.

Senator Rivera said he was choosing this moment to introduce the bill, despite nearing the end of the legislative session, partly because of a lack of movement in Washington on immigration reform. He pointed to the defeat last week of Republican House majority leader Eric Cantor by a Tea Party candidate who criticized Cantor's support for limited immigration reform.

But some progressives have also balked at provisions in the proposed bill. Mayor Bill de Blasio has called for municipal ID cards for undocumented immigrants, but said last year he's "not comfortable" with the idea of noncitizen voting.

“We are certainly asking for everyone in the Senate and the Assembly as well as in other sectors—the mayor and the governor—to support it, and we will have conversations with them going forward," Rivera said. "We are just starting the conversation."

Assembly Member Karim Camara, the bill’s sponsor in the Assembly, said the broad scope of the bill could help other stalled measures, like the Dream Act and a bill to allow undocumented immigrants access to drivers' licenses.

“We’re hoping that by looking at this big picture, and this is probably one of the most ambitious efforts over at least the last decade or two, maybe those smaller pieces now seem like they’re not that big of a deal,” said Camara.

Camara said he hoped the bill would create momentum for other immigration reform initiatives by the start of the next legislative session.

“We didn’t break it into priorities in this bill, but we’re hoping that by looking at this overarching bill it’ll perhaps make those other smaller bills easier—drivers' license, Dream Act, et cetera,” he said.

Camara blamed the balance of power in the Senate for those bills being unsuccessful in the past, and said if that was to change there may be more hope for immigration reform on a state level.

“The Republican-led Senate has been a main challenge," he said. "We would have passed it this year if it was not for that. So of course there is that elephant in the room, that political dynamic that we can’t avoid, and if that’s not the case then we’ll appeal to individuals’ reason."

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San Francisco Fed President John Williams has promised more transparency after a rare meeting with a coalition of community and labor groups which also urged the U.S. central banker to keep interest rates low.

Williams largely dismissed their call to hold off on interest-rate hikes, repeating his mantra that monetary policy will depend on economic data. But he said the meeting earlier this week pushed him to "think a little more proactively" about how the Fed recruits and promotes top management.

"I want the Fed to be more transparent," Williams said in an interview. "We've learned along the way that this process of selecting presidents and other aspects of the Fed are not that clear to the public. We should make it more open."

While the San Francisco Fed is not searching for a president or first vice-president, "we want to make sure not only are we doing it right, but also in the future maybe to move the ball forward even further," he said.

He noted that the Minneapolis Fed's openness about its ongoing presidential search is one example to learn from.

The Fed's perceived opaqueness has drawn increasing fire in recent months, with Fed Chair Janet Yellen in testimony this week standing her ground against Congressional efforts to subject the Fed to more oversight. Regional Fed banks' executive searches are also under scrutiny for apparent insularity.

Williams said the meeting also reminded him that despite strengthening overall economic growth, there are "a significant number of people who are left behind and struggling."

One example is Ebony Isler, who ran a hairdressing business until recession-hit clients could not afford her services.

Now, as a part-time cashier at the San Francisco Giants' downtown ballpark, she relies on high-interest loans to bridge her paydays.

"I can't find a job that pays me enough to be self-sufficient," Isler said in an interview after she and a dozen other members of the non-profit group Fed Up met with Williams on Monday.

The group, which first grabbed national attention last summer when it crashed the Kansas City Fed's annual central bankers' meeting in Jackson Hole Wyoming, presented Williams a report arguing that as long as inflation and wage growth remains dull, the Fed should keep rates near zero. (/news/mind-gap-how-federal-reserve-can-help-raise-wages-america-s-women-and-men)

Williams regularly meets with bankers and chief executives.

Meeting with activists, he said, "helps you to think concretely about why are people out of the labor force, what are the problems they are facing."

The group has also sat down with Yellen, Kansas City Fed President Esther George and Boston Fed chief Eric Rosengren.

Source: CNBC

Milestone Academy is the latest New Orleans–area charter school where theft has gone unpunished for months after it was discovered. No one has filed charges against former chief executive D'Juan Hernandez for putting $13,000 of personal expenses on a school credit card, according to an audit released Monday (April 18).

Hernandez quit in June 2014. The audit covers only the rest of that calendar year, but new Milestone chief executive LaKeisha Robichaux said Monday nothing had changed. In addition, Jefferson Parish clerk records showed no case against Hernandez.

This is hardly the first time that it's taken months for local charter school employees to face criminal charges for alleged financial crimes. Typically, lax oversight lets a member of the finance team profit from wrongdoing until someone notices odd gaps in the reports.

Ten months after someone stole almost $70,000 from the KIPP charter network, a criminal investigation was still underway.

Someone stole almost $26,000 from Lake Area New Tech High in 2014; more than a year later, police had not found a culprit.

New Orleans Military/Maritime Academy employee Darral Sims took $31,000 during the 2011-12 school year but had not been charged as of early 2013.

Lusher accountant Lauren Hightower had not been charged with a crime more than a year after she paid herself $25,000.

The Center for Popular Democracy issued a report in 2015 blaming Louisiana state education officials for cutting corners on oversight.

At Milestone, the theft followed a tumultuous year. The governing board dropped its for-profit management company only a couple of months before school was to start. Hernandez, the board attorney, stepped in to run the school. The school also struggled to improve long-languishing academic results and faced losing its Old Jefferson campus. It has since moved to Gentilly.

Hernandez quit in June, saying he was sick of a power struggle that also resulted in the departure of the principal. A month later, the financial wrongdoing emerged.

The board withheld $13,000 from Hernandez' $135,081 pay to cover the loss. It also "contacted the applicable law enforcement agencies regarding the unauthorized credit card usage," auditors from Hienz and Macaluso wrote. "However, as of the date of the audit report the school is not aware of any charges being filed in this matter. This was due to the lack of proper policies and procedures governing the acquisition and use of credit cards by the school."

Auditors said the school has since restricted credit card use to key employees. Under the new policies, no one may obtain a school credit card without written approval from the board's finance committee. All purchases "must have the same level of support as any other disbursement," auditors wrote. And school credit cards may not be used for personal purchases, cash advances or alcohol.

However, further conversations Monday showed the wheels of justice often did turn eventually:

The KIPP employee was prosecuted, spokesman Jonathan Bertsch said Monday. He added that although criminal charges took time, the charter group detected the crime within weeks.

Simms was convicted and paid restitution, Military/Maritime Academy Principal Cecilia Garcia said. The case went to court in late 2014 and early 2015. However, Simms has since had his record at least partially expunged, according to Garcia and Orleans Parish sheriff's records.

Hightower was prosecuted and convicted, Lusher spokeswoman Heather Harper Cazayoux said. Hightower's LinkedIn account indicates that she now works as a florist at a Harvey Winn-Dixie. 

Former Arise Schools employee Quinton Barrow pleaded guilty on May 7, 2015, to stealing $9,000. He was ordered to pay restitution but then failed to appear to pay in June, according to Orleans Parish sheriff's records. 

And the biggest local charter school crime resulted in serious jail time: Langston Hughes Academy's financial manager was sentenced to five years in federal prison for stealing about $660,000.

An employee stole about $2,000 from Lake Forest Charter in 2013. As of early 2015, the school's board president would not identify the employee or say whether anyone had been charged. School leaders did not immediately respond to a request for an update.

By Danielle Dreilinger

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