CPD IN THE NEWS

Atlas Left - May 24, 2014, by Josh Kilburn - The House of Representatives recently passed a bill that would grant $3 million in taxpayer money to charter schools; schools that both Democrats and Republicans are lining up behind. In the wake of this, Ring of Fire took a critical eye to some of the rampant abuses in the system with guest and Bill Moyers.com senior digital producer, Joshua Hollands, present to help explain what it meant.

While discussing how abused the system is, Joshua Holland referenced a report by Integrity in Education and the Center for Popular Democracy in regards to the systematic abuse and waste in charter schools:

[They found] in fifteen states, just fifteen states they looked at, they found $140 million dollars in public funds that were lost to fraud, waste, and abuse . . . This is all taxpayer money, so, that’s right. What they found, for example, was using public education dollars, these private operators were using them to prop up other businesses. There was an incident where somebody was feeding these public dollars into their health food store. In another instance, there was somebody who was using these dollars to make repairs on their apartment complex that they’d rented out. This again is somewhat unsurprising given that you have such limited oversight.

And the reason for that limited oversight? Charter schools try to have it both ways; when it comes to public money, they’re suddenly public institutions. When it comes to public oversight, they change the color of their scales and become private institutions with “proprietary secrets.”

There are other problems as well; charter school teachers are paid less than public school teachers, administrations are paid more, and they’re less likely to be unionized than public school teachers.  And that’s the union busing angle: the private sector unionization is at an all time low — only 7%. The majority of unionized workers are in the public sector, which is what the big businesses are targeting in an systematic, widespread anti-union, anti-worker putsch to restore our nation to the gilded glory days of the 1870s and 1880s.

Our public schools are not the problem. In wealthy districts, the public schools are top in the world as far as reading, writing, and other testing goes. It’s only in the poorer districts, where childhood poverty is rampant, that we find the lower numbers pulling down the average. Since “we tolerate a high level of childhood poverty relative to other nations,” in the words of Joshua Holland, and poor children don’t preform as well as their wealthy counterparts do, low test scores should come as no surprise. Out of 35 nations tested, the United States rates 34 in child poverty; the only country below us is Romania. And until we do something about the rampant poverty, instead of blaming it on the teachers, the problem won’t be going away.

Source

THE KANSAS CITY Federal Reserve’s annual symposium in Jackson Hole, Wyoming, attracts central bankers, economists and the global elite. The past two years, some new faces came to Jackson Hole: low-wage workers who object to the Fed raising interest rates when too many at the bottom rungs of the economic ladder still struggle.

This year, somebody appears to be ensuring that ordinary people won’t disrupt the party.

The Fed Up campaign, a coalition that brought the workers to Jackson Hole in 2014 and 2015, has filed a formal complaint with the departments of Justice and the Interior, along with the National Park Service, because their hotel reservations for this year’s conference were mysteriously canceled.

Despite paying in advance for spots at the 385-room Jackson Lake Lodge, the Grand Teton Lodge Company told the campaign July 26 that their reservations would not be honored, citing a “computer glitch.” Grand Teton operates the lodge, a publicly owned facility, under a contract with the National Park Service.

Thirty-nine members of the coalition planned to attend this year, but the lodge said computer glitch resulted in overbooking its rooms by 18. Instead of spacing that out among all Jackson Lake lodge guests, the company cancelled all 13 of the Fed Up campaign’s rooms. So nearly three-quarters of the cancelled reservations belonged to the Fed Up group, even though they were told when they booked that 100 rooms were still available at the lodge.

“There is no legitimate explanation for the company’s decision,” wrote Fed Up campaign chair Ady Barkan in the complaint, which alleges possible violations of the Civil Rights Act of 1964 and the First Amendment right to peaceable assembly. “This is egregious and disparate treatment.”

The coalition’s reservations were made in the names of staffers for three of its member organizations – the Center for Popular Democracy, the Economic Policy Institute, and the Center for Economic and Policy Research – using work email addresses.

In an email statement, Alex Klein, vice president and general manager of Grand Teton Lodge Company, said: “This summer we encountered an error with our booking system that resulted in our Jackson Lake Lodge property being oversold by 18 rooms for three peak nights in August. We worked proactively and diligently with guests to relocate them to our nearby Flagg Ranch property, and offered to keep them on a wait list for available rooms should there be cancellations at the Jackson Lake Lodge. We regret inconveniencing any of our guests.”

The Jackson Hole symposium takes place from August 25-27. The event typically features a highly anticipated speech by the Federal Reserve chair – Janet Yellen is expected this year.

In 2014 and 2015, Fed Up brought unemployed workers and local activists to Jackson Hole to highlight how the economy has left behind communities of color and to urge the Fed to hear their voices. Last year, they held an alternative conference in Jackson Hole lodge conference rooms, featuring economists like Nobel Prize winner Joseph Stiglitz.

This year, Fed Up planned to hold a teach-in outside of the lodge, and secured permits for a protest. They still expect 120 members, their largest contingent ever, to attend the proceedings, but they will have to stay in alternative accommodations that are a 20- to 30-minute drive away, separate from symposium guests and the press.

The majority of Fed Up members planning to attend the conference are African-American and Latino, which is why the campaign wants the Justice Department to investigate the matter as a violation of laws ensuring nondiscriminatory treatment in public accommodations. They also want to know if the Kansas City Federal Reserve was at all involved with the decision.

Kansas City Federal Reserve President Esther George has consistently drawn criticism from the Fed Up coalition for wanting to raise interest rates and slow down the economy.

The lodge’s general manager told Fed Up that their reservations were pulled because they were booked in a group of 13, making it easier to cancel them. This, the campaign believes, also violates First Amendment rights to freedom of assembly.

“I recognize that our presence is not desired by either the company or the organizers of the symposium,” Barkan wrote. “But the physical and virtual segregation of Federal Reserve decision-makers far away from the voices and opinions of working class people of color is precisely what the Fed Up coalition is trying to dismantle.”

The incident comes at a sensitive time for the Federal Reserve, which has already been criticized by 127 members of Congress for a lack of diversity among its leadership, which is disproportionately white, male, and either current or former executives of large corporations and financial institutions. Activists believe this homogeneity in race, gender, and background drives central bank decisions that cater to the wealthy and neglect communities of color.

Barkan’s letter to Justice and the Interior concludes: “Once again, the voices and faces of working class people of color have been marginalized … and an opaque, inaccessible, and incredibly powerful quasi-governmental institution has received a bit more insulation from the opinions of the people over whose lives it has so much power.”

The Intercept has reached out for comment to the Justice Department, the Interior Department, and the National Park Service, but did not immediately hear back.

Top photo: National Park Rangers stand silhouetted inside the lobby of Jackson Lake Lodge during the Jackson Hole economic symposium in August 2015.

By David Dayen

Source

UPDATE July 15th -- Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) invoked cloture on the ESEA bill, which contains provisions to expand the Charter Schools Program. The final vote will be held today. McConnell's move to bring matters to a close came as a surprise to the authors of the bill who had expected a more robust debate, and, as EdWeek reports, "especially squeezes Democrats who are still working on proposals to beef up accountability."

As both the House and the Senate consider separate bills that would reauthorize and expand the quarter-billion-dollar-a-year Charter Schools Program (CSP), the Center for Media and Democracy (CMD) has examined more than a decade of data from the National Center for Education Statistics (NCES) as well as documentation from open records requests. The results are troubling.

Between 2001 and 2013, 2,486 charter schools have been forced to shutter, affecting 288,000 American children enrolled in primary and secondary schools.

Furthermore, untold millions out of the $3.3 billion expended by the federal government under CSP have been awarded as planning and implementation grants to schools that never opened to students.

Charters Much More Likely to Close

The failure rate for charter schools is much higher than for traditional public schools. In the 2011-2012 school year, for example, charter school students ran two and half times the risk of having their education disrupted by a school closing and suffering academic setbacks as a result. Dislocated students are less likely to graduate and suffer other harms.

In a 2014 study, Matthew F. Larsen with the Department of Economics at Tulane University looked at high school closures in Milwaukee, almost all of which were charter schools. He concluded that closures decreased “high school graduation rates by nearly 10%" The effects persist "even if the students attends a better quality school after closure.”

Hidden behind the statistics are the social consequences. According to a 2013 paper by Robert Scott and Miguel Saucedo at the University of Illinois. They found that school closures “have exacerbated inter-neighborhood tensions among Chicago youth in recent years” and have been a contributing factor to the high rate of youth incarceration.

Because the U.S. Department of Education does not provide the public with any accounting for the amount of taxpayer money—whether state or federal—that has been spent on these failed charter schools, there is no way to estimate the total amount of money missing in action. However, the Center for Popular Democracy (CPD) recently estimated that "according to standard forensic auditing methodologies, the deficiencies in charter oversight throughout the country suggest that federal, state and local government stand to lose more than $1.4 billion in 2015."

Major Probes into Closed Charters Underway

According to a PowerPoint presentation CMD has uncovered, the watchdogs at the U.S. Department of Education's Office of the Inspector General are currently conducting major nationwide probes into the lack of accountability and oversight within the Charter School Program. One of these audits focuses on where federal grants end up when charter schools are forced to close. A spokesperson for OIG confirmed to CMD that these investigations are ongoing.

The new probes come in the wake of a scathing 2012 audit, which exposed an utter lack of financial controls in the case of money awarded to charters that later closed. “The school files had no follow-up documentation for any of the 12 closed schools reviewed,” the OIG noted in the case of California. The U.S. Department of Education had conducted no oversight and failed to ensure that states receiving tens or hundreds of millions in grants had “procedures to properly account for SEA grant funds spent by closed charter schools.”

Meanwhile, U.S. Department of Education officials have assured stakeholders that the problems with millions disappearing down black holes are now a thing of the past. But the fact that the OIG has found reason to launch major investigations this year tells a different story.

Federal Millions Missing in Action as Charter Close or Never Open

It is impossible to anticipate the findings of the ongoing OIG probes, but even a cursory review of federal charter school grants in Wisconsin and Indiana, conducted by CMD, uncovered dozens of schools that were created out of seed money under the program but later forced to shutter because of financial mismanagement, failure to educate students or lack of enrollment.

Wisconsin received $69.6 million between 2010 and 2015, but out of the charters awarded sub-grants during the first two years of the cycle, one-fifth (16 out of 85) have closed since.

Indiana was awarded $31.3 million under the Charter Schools Program between 2010 and 2015. One of the reasons the state landed the grant, the reviewers contracted by the U.S. Department of Education to score the application make clear, was that charter schools in the state are exempt from democratic oversight by elected school boards. “[C]harter schools are accountable solely to authorizers under Indiana law,” one reader enthuses, awarding the application 30/30 on the rubric “flexibility offered by state law.” This “flexibility,” which the federal program is designed to promote, has been a recipe for disaster:

The Indiana Cyber Charter School opened in 2012 with $420,000 in seed money from the federal program. Dogged by financial scandals and plummeting student results the charter was revoked in 2015 and the school last month leaving 1,100 students in the lurch.

Padua Academy lost its charter in 2014 and converted to a private religious school, but not before receiving $702,000 in federal seed money.

Via Charter School was awarded $193,000 in a “planning grant” but never opened.

Early Career Academy landed a $193,000 planning grant and was due to open last year. This has been postponed because of “governance issues,” according to the school. The charter is sponsored by a for-profit college—ITT Tech—that is currently being sued by federal government for coercing students into taking out student loans for college credits that do not transfer.

In April 2015, Education Secretary Arne Duncan testified in front of the Appropriations Subcommittee on Labor, Health & Human Services and Education on abuse of federal funding by for-profit colleges, such as ITT Tech, that were “taking advantage of a massive influx of taxpayer resources.”

“The findings that we are putting forward are pretty stunning…pretty egregious. The waste of taxpayer money—none of us can feel good about,” said Duncan.

And yet, he is calling for a 48 percent expansion of the charter schools program—a program that will likely be up for the vote in the House and Senate this week, before the results of any of the OIG audits are made public to lawmakers and stakeholders.

CMD will soon be releasing the full dataset, as well as information on the methodology used to arrive at the list of closed schools, to help reporters and public school advocates tell the story.

Source: PR Watch

“But the real threat to the Fed’s independence isn’t coming from Trump—it’s coming from Wall Street. The Fed’s structural flaws have led to regulatory capture, which compromises its ability to set monetary and regulatory policy in a manner that isn’t tilted to favor those at the very top of the economic ladder. Trump may have broken a norm by commenting on monetary policy, but the Fed’s status quo is unaccountable, opaque decision-making shaped by deep conflicts of interest with the very financial institutions the Fed is ostensibly supposed to supervise.

Read the full article here.