CPD IN THE NEWS

(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid wages, interest, and civil penalties, K.S Contracting and Mr. Shah will be barred from working on New York City and State contracts for five years.

K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015.

“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won’t back down in defending them,” New York City Comptroller Scott M. Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”

K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various City sidewalks in Queens.

The Comptroller’s Office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and City agency data to uncover a kickback scheme that preyed on immigrant workers.

After a four-day administrative trial in May 2016, the Comptroller found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. Those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. K.S. Contracting, however, falsely reported to City agencies that all employees on the jobsite who received checks were paid the prevailing wage.

Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.

The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.

When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.

Since taking office in 2014, Comptroller Scott M. Stringer’s Bureau of Labor Law has assessed over $20 million and barred 40 contractors from state and City contracts due to prevailing wage violations, both record amounts. The assessed violation number includes underpayment of wages and benefits with interest payable to workers, and civil penalties payable to the City treasury.

“We applaud the Comptroller for standing up for the rights of immigrant workers and debarring bad actors like K.S. Contracting – a company identified by the Center for Popular Democracy as one of the worst violators of wage theft laws in New York. The Comptroller’s aggressive enforcement of prevailing wage law is a perfect example of what is needed to effectively combat wage theft throughout the city and state,” said Kate Hamaji, Center for Popular Democracy.

“We commend Comptroller Stringer for defending the rights of immigrant workers and ensure that they receive the wages and benefits that they deserve,” said Steven Choi, executive director of the New York Immigration Coalition. “In a time when immigrant communities are worried for their future in this country, it is essential that we have strong city advocates who will ensure that their rights are protected.”

“At a time when exploitative employers are feeling increasingly emboldened by Trump’s hateful rhetoric, it is imperative that our City’s leaders are taking a strong stance in defense of immigrant workers. Wage theft is a persistent and pervasive problem in New York, with employers like Paresh Shah cheating their immigrant workers out of millions of dollars in lawful wages and benefits each year. We commend the Comptroller for fighting to recuperate wages for the workers at KS Contracting and for showing employers like Paresh Shah that their behavior will not be tolerated by the City of New York,” said Deborah Axt, Executive Director, Make the Road New York.

“I want to thank New York City Comptroller Scott Stringer for taking the lead in fighting wage theft. Unfortunately wage theft is a crime that is running rampart throughout the construction industry. Hard working men and women, who expect nothing more than a fair day’s pay for a fair’s day’s work are constantly seeing their hard earned wages stolen by dishonest, criminal employers. By debarring KS Contracting for five years, Comptroller Stringer and his office have sent a message loud and clear – stealing workers’ wages will not be tolerated in New York.” said Robert Bonanza, Business Manager, Mason Tenders District Council of Greater New York, LiUNA!.

“I would like to thank Comptroller Stringer and his team in the Bureau of Labor Law for bringing justice to the workers at K.S. Contracting. Unfortunately the Comptroller’s task is made more difficult by the fact that many City agencies do not put top priority on monitoring projects for labor violations. Too many employers in New York City exploit minority and immigrant workers. And it’s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported. This undercuts labor standards for all workers, and safe, educated workers are our City’s most valuable resource. We need more responsible and proactive leaders like Comptroller Stringer to protect that resource,” said Lowell Barton, Vice President/Organizing Director, Laborers Local 1010, LiUNA!.

“In a city where diversity is our greatest strength, we will not let anyone target our immigrant workers for abuse. Undermining labor standards for immigrants it’s an attack on all workers. I commend Comptroller Stringer for standing up for immigrant workers and against wage theft at a time when our immigrant communities are under attack,” said Renata Pumarol, Communications Director, New York Communities for Change.

“We at the Alliance of South Asian American Labor (ASAAL) are extremely conscious of the rights of every human being who lives in this great nation no matter what their immigration status. Many hard working individuals are taken advantage of by unscrupulous employers. We greatly applaud Comptroller Scott Stringer’s aggressive approach to combat wage theft violations and in this way protect the rights of all workers. I applaud his historic record of debarring 40 contractors since taking office and assessing over $20 million in prevailing wage violations, including today’s order against K.S. Contracting,” said Maf Misbah Uddin, ASAAL National President.

By TIP NEWS

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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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Roll Call - May 14, 2014, by Kyle Serrette and Sabrina Joy Stevens - Our children are too precious, and education funding too scarce, to risk turning either over to unscrupulous or incompetent organizations. That’s why charter schools were originally supposed to be something akin to a small, controlled experiment: public school laboratories intended to encourage new ways to educate students. That way, if something turned out not to work, the risk to students, educators and communities could be contained.

Unfortunately, the modest educators and community members of the charter school movement’s early days have been eclipsed by members of the charter school industry: an industry rife with fraud, waste and abuse. Yet advocates, particularly among elected officials, have been unwilling to confront this fact and deal accordingly.

Fraud and abuse is rampant in the charter sector. Last week, our organizations issued a new report detailing how charter operators wasted or stole more than $100 million in taxpayer dollars. That number only reflects cases that have been reported in 15 states; it boggles the mind to consider what an examination of all states would uncover.

We found examples of operators embezzling millions in public funds for years before being detected, spending public funds on vacation homes instead of textbooks. In one case, someone bought a private airplane; in another egregious example, they used the money for visits to a strip club. In other cases, unfit operators just plain lost vast amounts of taxpayer money.

Sadly, H.R. 10, the charter schools bill recently approved by the House, fails to address the corruption within this poorly regulated industry.

Ignoring several representatives who offered common-sense amendments, the House passed a bill that fails to call for even basic protections like conflict-of-interest guidelines. It “requires” annual audits, yet allows states to waive the requirement, making it easier for fraudulent actors to hide their theft. It does not extend open meetings laws to charters, nor does it require charter operators to include community representation on their boards.

The bill further erodes community input and oversight by awarding priority status to states that allow entities that are not local education agencies (LEA) to be charter authorizers. Not only will this make it harder for local communities to control access to our tax dollars, it will also erode the quality and consistency of children’s education. For example, 17 charters abruptly closed in Columbus, Ohio, last year alone. In most cases, their non-LEA authorizers’ slipshod vetting processes missed red flags that would have allowed them to thwart fraud and mismanagement.

Disturbingly, the bill awards priority to states that don’t have charter caps, encouraging states to further accelerate charter growth before they’ve established the protections that could prevent the aforementioned abuses. States already struggle to monitor the charter schools they have; it is simply reckless to incentivize them to open more before establishing necessary protections.

H.R. 10 ignores many of the most pressing community concerns about charters. Any new funding for charter schools must encourage more, not less, oversight and involvement by local taxpayers and families. Specifically, a new bill should ban the practice of requiring parent contracts, one of many practices that charter operators use to avoid serving the neediest students.

Charter operators should also be required to collect and publicly report information on student attrition, mobility, and transfer before coming back to the public till. This crucial information will ensure that public funding stays with the students it’s intended to benefit. It will also allow families and policymakers to make informed comparisons between charter and public schools.

If our senators want to ensure success and opportunity through quality public schools, they should create legislative protections that promote quality, and mandate the transparency and accountability that make a school public. H.R. 10 does none of this. Children and taxpayers deserve better.

Kyle Serrette is the director of Education Justice Campaigns at the Center for Popular Democracy. Sabrina Joy Stevens is the executive director of Integrity in Education.

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In the windowless backroom kitchen of the Loisaida community and arts center in Lower Manhattan, Aris Mejías cradles a plastic ziplock with the last of the dark-roast coffee she brought back from her native Puerto Rico. “It’s probably extinct,” she says. “Ay Díos, I think I’m gonna cry.” Mejías’s eyes are red and sunken. Neither she nor Isabel Gandía has slept much since Hurricane Maria tore through the southeast Caribbean in late September. They’ve been too busy coordinating a donation drive to bring emergency aid to Puerto Rico. At 3:30 in the afternoon, Gandía is only just getting around to breakfast.

Read the full article here.