Fed Officials to Meet With Activists Ahead of Jackson Hole Conference
Fed Officials to Meet With Activists Ahead of Jackson Hole Conference
When Federal Reserve officials gather for the Kansas City Fed’s high-profile policy conference in Jackson Hole, Wyo....
When Federal Reserve officials gather for the Kansas City Fed’s high-profile policy conference in Jackson Hole, Wyo. this week, some of them will start with an unprecedented event.
On Thursday, eight central bankers, among them Fed governor Lael Brainard and New York Fed President William Dudley, will meet with and answer questions from about 120 activists from the Campaign for Popular Democracy’s Fed Up Campaign, a left-leaning group working to change the way the powerful central bank works.
The meeting marks a turn for the invitation-only Jackson Hole symposium, which draws top central bankers and economists from around the world to discuss monetary policy issues behind closed doors. Though journalists cover the proceedings and Fed officials give press interviews on the sidelines, this is the first time the Kansas City Fed, which hosts the event, has organized a public forum for policy makers to meet with their critics beforehand.
“My sense is that we are starting to see real changes, ”said Ady Barkan, leader of the Fed Up campaign. He said he was prompted to launch the effort after realizing how little public attention was focused on the U.S. central bank, which directly affects the lives of U.S. workers, consumers, home buyers, business owners and investors.
Formally launched in 2014, the coalition of policy activists, labor and community groups has lobbied the Fed to keep interest rates very low to ensure the economic recovery benefits all Americans and not just the well off. The group has called for more diversity among the central bank’s predominantly white, male leadership; more openness about how regional Fed bank presidents are chosen and changes in the Fed’s century-old structure to reduce the influence of the banking industry.
Mr. Barkan, a 32-year-old lawyer, recalled wondering how to get the public to care about “the absurdly opaque issue” of Fed policy. He found more interest that he expected. Speaking with community groups, he found “everybody is fascinated, everybody gets the importance of it.”
The group has gained a notable amount of high-level access. Its members met in November 2014 with Fed Chairwoman Janet Yellen and several Fed governors, and later with Fed staff. Fed Up members have met with all 12 regional Fed bank presidents, even conducting public events with some, as it did with the Minneapolis Fed’s Neel Kashkari in early August.
The regional Fed bank leaders have largely welcomed their meetings with Fed Up. “I’ve been at the Fed 22 years. When you’ve been at an institution that long it is hard to know how other people view you” and how your policies play out in the real world, San Francisco Fed President John Williams told reporters in July.
“Understanding the perspectives of people outside of financial markets, outside of our own circles—that’s healthy,” Mr. Williams said. “Hearing what I think is supposed to be constructive criticism is healthy.”
Over the past year, Fed Up also has met regularly with lawmakers and their staff on Capitol Hill, held press briefings in front of the central bank’s Washington, D.C., offices and stacked congressional hearings with activists wearing their trademark green shirts.
Among the results: A large number of congressional Democrats and the campaign of Democratic presidential nominee Hillary Clinton have echoed Fed Up’s call for barring bankers from the boards that oversee the regional Fed banks and urged the central bank to focus more on promoting job growth. The Democratic legislators have recently expressed concerns over a lack of diversity among Fed leaders.
In congressional hearings in February, House and Senate Democrats peppered Ms. Yellen with more questions than in the past on issues such as inequality, stagnant wages and jobless rates for low-income Americans.
“For black Americans, we’re still in the midst of a very serious depression or recession,” Rep. Keith Ellison (D., Minn.), a member of the Congressional Black Caucus who had met with Fed Up, told Ms. Yellen in February.
When she returned to Capitol Hill in June, Ms. Yellen came armed with data and talking points addressing the diverging economic circumstances between white and black and Hispanic households.
“It’s important for us to be aware of those differences and to focus on them as we think about monetary policy and work that the Federal Reserve does in the area of community development,” she said.
That contrasted with Ms. Yellen’s previous comments that the Fed’s options for addressing the economic troubles of minority groups were limited. Some Fed watchers said her shift in tone suggests policy makers are paying closer attention to such concerns.
The gestures may not seem like much to outsiders, but to people familiar with the Fed—an institution that is slow to change and resistant to criticism—they are viewed as a significant shift.
“It’s kind of monumental to get the Fed to change,” said Sarah Binder, a senior fellow at the Brookings Institution, noting the creation last year of an advisory council at the Fed focused on the concerns of low-income communities.
That said, a number of the Fed bank presidents have argued against the structural reforms Fed Up is advocating. In May, Mr. Dudley said “the current arrangements are actually working quite well, both in terms of preserving the Federal Reserve’s independence with respect to the conduct of monetary policy and actually leading to pretty, you know, successful outcomes.”
Atlanta Fed President Dennis Lockhart expressed skepticism about the call for more openness about the selection of regional reserve bank chiefs.
“When it comes to picking new bank presidents, are you going to get that with a completely open process much like an election? I don’t think these are roles that should be filled by public election,” he said.
Fed Up’s funding comes primarily from the Open Philanthropy Project, which provides grants and funds to projects on justice reform, immigration and economics. Open Philanthropy committed $1 million toward Fed Up’s 2016 budget. In 2015 Open Philanthropy donated $750,000 toward Fed Up’s $1.1 million annual budget. Dustin Moskovitz, a Facebook co-founder who left that firm in 2008, is one of the primary sources of Open Philanthropy’s funds.
Some former central bankers worry Fed Up has unreasonable expectations in a world in which central bank policy can’t change economic fundamentals such as long-run growth in productivity, output or wages. They also fret it was the Fed itself, via its response to the financial crisis, that created the perception it has the tools to affect more than short-term fluctuations in inflation and hiring.
Charles Plosser, former president of the Philadelphia Fed, said the Fed officials, through word and deed, “continually raised expectations about what they can do.” And having made the public believe it was more powerful that it actually is, officials “are setting themselves up for exactly this sort of attack” by those who want more out of the Fed.
Former Dallas Fed leader Richard Fisher said he had long warned that ultra-aggressive Fed stimulus policies that he said primarily benefited the rich would end up “stoking the fires of populism.”
The Fed has faced populist critics before. What is different about Fed Up, Ms. Binder said, is it seems to be well-funded and well-organized and have a constructive agenda, as opposed to some groups who have called for abolishing the Fed or limiting its powers.
“They’re kind of working through the system in a way, which is to say, ‘Look, [Congress has told the Fed] to care equally about inflation and jobs—it’s not time to give up on jobs,’” she said.
Corrections & Amplifications:
Rep. Keith Ellison is a Democratic congressman from Minnesota. An earlier version of this article incorrectly said he is a Republican. (Aug. 25)
By Michael S. Derby and Kate Davidson
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'Substantial risk' that Fed is about to make a serious mistake, Pimco advisor says
'Substantial risk' that Fed is about to make a serious mistake, Pimco advisor says
For years, the Fed faced criticism that it wasn't being aggressive enough in raising rates. Now that it has started to...
For years, the Fed faced criticism that it wasn't being aggressive enough in raising rates. Now that it has started to hike, the central bank is under increasing fire for moving too soon.
The latest scrutiny comes from Joachim Fels, global economic advisor at Fed bond giant Pimco, who said the Fed shouldn't be tightening policy with the evidence so clear that it is falling well short of its inflation mandate.
Read the full article here.
We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
We, The People, Defeated Republican Attempts To Repeal The Affordable Care Act
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal...
After months of grandstanding and cloak-and-dagger meetings by Republican leaders, we dealt a final blow to the repeal of the Affordable Care Act. Who are we? We are the thousands of people who attended town hall meetings around the country to confront our elected officials, marched on the streets, and occupied the offices of our senators until we got arrested.
Early Friday morning, dozens of us who have been active in the fight against the ACA repeal stood outside the Capitol, bleary-eyed from exhaustion and tears and holding on to each other for moral support. We were stunned and elated when the ‘skinny’ repeal vote failed.
Read the full article here.
It’s true: HUD policy really does hurt our neighborhoods
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino...
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a discount! Please let that sink in.
Since 2010, the Department of Housing and Urban Development (HUD) has been auctioning off pools of very delinquent mortgages through a program they call Distressed Asset Sales Program, or DASP. In most cases, the sales have gone to the highest bidder, which have been hedge funds and private equity firms.
Lone Star Fund, a private equity firm started by a Texas billionaire, and Bayview Asset Management, an affiliate of the private equity firm Blackstone Group, have been two of the primary beneficiaries of these sales. The result? Struggling homeowners lose their homes and speculators turn the properties into high-cost rentals that contribute to displacement in communities across the country.
This month, over 110,000 people from across the country signed a petition calling on HUD Secretary Julian Castro, to change this program. This comes on the heels of a March 1st letter to HUD from 45 members of Congress issuing a similar call for reforms to this mortgage sale program. In fact, for over two years, housing advocates and national policy groups have been pushing HUD to fix this program.
In an interview on WNYC Studio’s “The New York Radio Hour,” Secretary Castro referred to our protests that his program is enriching Wall Street as “sloganeering.” We wish that were the case. Unfortunately, it is simply a fact that 98% of the mortgages sold through HUD’s DASP program are going to Wall Street, one that can be verified on HUD’s own website where they post reports from these sales. Most, if not all, of these Wall Street buyers are what the industry itself calls “vulture capitalists” – investors that specialized in distressed assets in the hopes of making them more profitable and selling them for a profit.
In an effort to suggest that he has addressed the problem, Secretary Castro touts the agency’s 2015 auctions of troubled mortgages in which only non-profits were eligible to bid. Let’s be clear. Only 172 mortgages were sold to non-profits through these auctions, while a whopping 15,309 went to Wall Street investors in 2015. So yes, a gesture was made by the agency, but at such a miniscule scale he surely cannot suggest that the problem is solved.
There is no reason to sell such a high percentage of these loans to some of the same culprits responsible for the housing crisis in the first place. In fact, it seems to be in direct conflict with HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all. Call me skeptical, but I don’t trust a private equity firm like Blackstone – a company whose CEO made $734 million last year - to help fulfill that mission. Blackstone and other major speculators have a goal of making as much money as possible, and in the process are chipping away at the wealth and stability of neighborhoods in the process.
There is a viable alternative, that housing and civil rights groups across the country are calling for. HUD should prioritize selling these loans to good actors that have a community-centered plan to save homes from foreclosure when possible and, when foreclosure cannot be avoided, to meet the affordable housing needs of the community with their property disposition plans.
A growing number of Community Development Financial Institutions (CDFIs) have programs to do just this, and have raised the capital needed to buy pools of these delinquent mortgages. But so far, they haven’t been able to get their hands on the number of mortgages that they can afford. HUD should do all it can to make sure CDFIs and other good actors are prioritized for these sales.
I have seen too many people in my community lose their homes and their wealth to Wall Street speculators. We cannot allow the same policies that ravaged our communities to continue. For me the choice is very clear: will Secretary Castro make sure that HUD helps families stay in their homes, or will he allow HUD to continue to sign over these loans to Wall Street and fuel neighborhood displacement?
It’s time for HUD to make the right choice and partner with non-profit CDFIs and other organizations that will keep our neighborhoods together. I encourage everyone who cares about the stability of neighborhoods across the country to join with me in calling on Secretary Castro and HUD to change the DASP program so that it prioritizes foreclosure avoidance and the creation of affordable housing.
By Ana Maria Archila
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Activists Protest at Phila. Fed, Seeking a Say in Plosser's Replacement
Philly.com - December 17, 2014, by James M. Von Bergen - Seeking a voice in the process to select a new president for...
Philly.com - December 17, 2014, by James M. Von Bergen -
Seeking a voice in the process to select a new president for the Federal Reserve Bank of Philadelphia, two dozen activists protested outside the bank in Center City on Monday.
"The Fed is such a mystery. We just want transparency," marchers chanted as they walked along Sixth Street, many wearing green T-shirts with the slogans "Fed Up" and "What Recovery?"
The march came amid speculation whether the Federal Open Market Committee, meeting Tuesday, would increase the discount rate - the rate charged banks for short-term loans they receive from the regional Federal Reserve Banks - in light of the improving economy.
In a statement Monday, the Philadelphia Fed said it had engaged an executive search company to find a replacement for president Charles Plosser, whose term expires March 1.
"Senior executives have met with representatives of groups who have expressed interest in the process," the statement said.
"The search committee has said it will look at a broad, diverse group of candidates from inside and outside the Federal Reserve System," the statement said.
The Fed's record low interest rates "should make us nervous," Plosser said in an interview with CNBC in November.
He has been among the central bank's most outspoken members on raising rates. Recent economic data indicate that "we should raise rates now or in the near future," he told reporters after a speech in Charlotte, N.C., the Wall Street Journal reported.
During Monday's protest, which lasted about an hour, various people told their stories, about how they had been unable to find jobs or were working below their educational levels even as they struggled to save their homes from foreclosure and pay their bills.
Kia Philpot-Hinton, 38, of Southwest Philadelphia, said she has not been able to find an accounting job. "It's crushing when you are struggling to make ends meet. We're not in a recovery in my neighborhood," she said.
"We deserve to make an ample amount of money to support our family," said Chris Campbell, 23, of Philadelphia, adding that he had been unable to find steady employment in construction.
The protest was mounted by Action United, a nationally organized group of activists that coalesces around economic issues.
One leader of Monday's protest was Kendra Brooks, who said she has a master's degree in business administration and was laid off from Easter Seals of Southeastern Pennsylvania in 2012. As an Action United organizer, she said, she now earns half of what she previously earned.
She was part of a group that visited Federal Reserve Chair Janet Yellen in November.
"They were engaged and interested in what we had to say," Brooks said, adding that Yellen wanted to know whether foreclosure-prevention programs and other efforts to help the poor were effective.
Brooks said raising interest rates would prompt businesses to cut back hiring, tightening the job market, and forcing people to accept lower wages.
Among those marching was Lance Haver, director of the Mayor's Office of Consumer Affairs. Haver said that even if the Fed is not the usual focus of protests by activists, they can be effective.
In 1998, he said, First Union Corp., which became Wachovia and is now Wells Fargo & Co., acquired CoreStates Bank in Philadelphia. Activists' protests, he said, prompted the Federal Reserve to prevent First Union from closing CoreStates branches in some poorer neighborhoods.
"Instead of shuttering them," Haver said, some branches became credit unions and led to First Union's being required to provide community-development funds.
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The ugly charter school scandal Arne Duncan is leaving behind
US Secretary of Education Arne Duncan’s surprise announcement to leave his position in December is making headlines and...
US Secretary of Education Arne Duncan’s surprise announcement to leave his position in December is making headlines and driving lots of commentary, but an important story lost in the media clutter happened three days before he gave notice.
On that day, Duncan rattled the education policy world with news of a controversial grant of $249 million ($157 the first year) to the charter school industry. This announcement was controversial because, as The Washington Post reports, an auditby his department’s own inspector general found “that the agency has done a poor job of overseeing federal dollars sent to charter schools.”
Post reporter Lynsey Layton notes, “The agency’s inspector general issued a scathing report in 2012 that found deficiencies in how the department handled federal grants to charter schools between 2008 and 2011″ – in other words, during Duncan’s watch.
Even more perplexing is that the largest grant of $71 million ($32.5 the first year) is going to Ohio, the state that has the worst reputation for allowing low-performing charter schools to divert tax money away from educational purposes and do little to raise the achievement of students.
A number of Ohio officials were shocked by the news.
As a different article from The Post reports, Democratic Party Representative Tim Ryan “was alarmed” by the Education Department’s decision. Ryan called his state’s charter school sector “broken and dysfunctional.”
Ted Strickland, an ex-Governor and now Democratic candidate for a US Senate seat in Ohio, wrote Duncan a letter telling him to reconsider the Ohio grant. “Too many of Ohio’s charter schools are an embarrassment,” he states. Strickland quotes from a recent study showing charters in his state perform significantly worse than public schools. He points to a recent scandal in which the person in the state’s department of education responsible for oversight of charters had to resign because he was caught “rigging the books.”
Even Ohio Republicans are disturbed about Secretary Duncan’s generosity to charter schools in the Buckeye State. Like a parent who sees a visiting relative doling out chocolate bars to an already stimulated child, State Auditor Dave Yost quickly stated his concerns about the new charter school largesse to the media and his intention to track how the money is spent. Yost should know. An audit he conducted earlier this year found charter schools in the state misspend millions of tax dollars.
“Why is the Department rewarding this unacceptable behavior,” Strickland asked in his letter.
Money For What?
Certainly throwing unaccounted for federal tax money at charter schools is nothing new.
A recent report from the Center for Media and Democracy found that over the past 20 years the federal government has sent over $3.3 billion to the charter school industry with virtually no accountability. That report notes “the federal government maintains no comprehensive list of the charter schools that have received and spent these funds or even a full list of the private or quasi-public entities that have been approved by states to ‘authorize’ charters that receive federal funds.”
But Secretary Duncan has been particularly generous to charter schools. One of the conditions states had to meet to win a Race to the Top grant, his signature program, was to raise any caps they may have had on the number of charter schools allowed to operate in the state. His department warned states receiving waivers to the onerous provisions of No child Left Behind not to do enact any new policies that would undermine charter schools’ “autonomy.”
Congress has done its part too, raising the amount of federal money going to charter schools through the Charter School Grants program.
The CMD report cited above calculated that the feds are expected to increase charter school funding by 48 percent in FY 2016, which would have been Duncan’s last year on the job. That’s about $375 million more for charters estimates journalist Juan Gonzalez.
Yet at the same time federal support for charter schools continues to grow, revelations increasingly show the results of that spending are frequently disastrous.
Dollars For Disaster
A recent report from the Center for Popular Democracy and the Alliance to Reclaim Our Schools (AROS) uncovered over $200 million in “alleged and confirmed financial fraud, waste, abuse, and mismanagement” committed by charter schools around the country.
The report follows a similar report released a year ago by the same groups that detailed $136 million in fraud and waste and mismanagement in 15 of the 42 states that operate charter schools. The 2015 report cites $203 million, including the 2014 total plus $23 million in new cases, and $44 million in earlier cases not included in the previous year’s report.
Authors of the report called $200-plus million the “tip of the iceberg,” because much of the fraud “will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud.”
Adding to concerns over how federal funds for charter schools are used, state audits, like the one conducted in Ohio, have also found widespread financial fraud and abuse committed by these schools.
Although the CPD-AROS report made policy recommendations for mandatory audits of charters and increased transparency and accountability for these schools, none of those recommendations seem to have gotten any attention, much less action, from Duncan and his staff.
A Process Cloaked In Mystery
Both the ends and the means of federal grants to charter schools remain mostly a mystery. Not only do we not know what happens to most of the money; we don’t know how recipients for the money are chosen.
As CMD’s Jonas Persson writes on that organization’s PR Watch blog, “The public is being kept in the dark about which states have applied for the lucrative grants, and what their actual track records are when it comes to preventing fraud and misuse … The U.S Department of Education has repeatedly refused to honor a CMD request under the Freedom of Information Act for the grant applications, even though public information about which states have applied would not chill deliberation and might even help better assess which applicants should receive federal money.”
Also unknown are the names of the “peers” who review applications for the grant money.
How Ohio became chosen for more charter school money is especially enigmatic, not only because of the bad reputation of the state’s charter schools, but also because of the circumstances of how the state’s application was pitched to Duncan and his staff.
Soon after the announcement of the grant, the Akron Beacon reported a Ohio Department of Education official who helped obtain the $71 million in federal money was the very same official who resigned in July “after manipulating data to boost charter schools.” The official resigned a mere two days after filing the grant application.
What’s also interesting about the new federal grant money for Ohio charters is its timing.
Was Money Timed For Youngstown Takeover?
As the Beacon report notes, “The additional federal dollars come as the Ohio Department of Education decides how to distribute $25 million set aside by state lawmakers to help charter schools pay rent, purchase property, or renovate buildings. The money is yet one more assist to charter-school proponents in need of a building. Rent and building acquisition are two of the biggest deterrents to start-ups.”
The grant to Ohio also seems especially well timed to the targeted takeover of one of the most troubled school districts in the state, Youngstown.
As a recent report in Belt Magazine explains, “The Youngstown City Schools, which could lay claim to the title of the worst school district in the state … had been under academic distress for the past five years. Enrollment had dropped 21 percent since 2010.”
This summer, a House education bill with bipartisan support was about to sail through the legislature when State Senator Peggy Lehner, the chairwoman of the Senate Education Committee, suddenly introduced an amendment.
“The amendment,” Belt reporter Vince Guerrieri recounts, “informally dubbed ‘the Youngstown Plan,’ allows for the dissolution of the academic distress commission of any district that’s gotten an F grade for three years in a row or has been under academic distress for at least four years. Youngstown is the only school district that meets that qualification.”
“Within 12 hours of the introduction of the amendment, it had passed the legislature,” Guerrieri writes.
The fast-tracked legislation sets up, according to an NPR outlet in the state, “a five member Academic Distress Commission with a three member majority chosen by the state school superintendent. That group then appoints a CEO with extraordinary powers. He could not only change the collective bargaining agreement with teachers but also create or contract with charter schools.
State school board member Patricia Bruns – a Democrat – says bypassing local elected officials including the school board is unconstitutional. ‘Their idea is to take over the schools, dismantle what’s there, and dole them out to private, for-profit charters.’
So was the federal grant to Ohio timed to pay for the take over of Youngstown schools?
That’s the question Ohio edu-blogger and public school advocate Jan Resseger wants answered. She points to an article by Akron Beacon education reporter Doug Livingston who alleges the new funding for charter schools in Ohio is “designed specifically to pay for the fast-tracked state takeover of the Youngstown schools.” Livingston backs up his claim with a quote from Arne Duncan’s press secretary Elaine Quesinberry who confirmed, “that the Ohio education officials filled out the grant application with the intent to direct money to charter school startups in academic distressed areas. Only two, Youngstown and Lorain, currently fit that description.”
What ‘Reform?’
Meanwhile, as the House bill containing the Youngstown Plan passed with extraordinary haste, another bill to make charter schools more transparent and accountable remained mired in contentious through the summer recess. That bill now seems likely to get approved by the legislature, based on reports received at press time. But “there’s no clear magic bullet” in the bill, according to a Cleveland news outlet, at least in terms of reforming charter schools in the state.
“The bill makes several small changes,” the reporter contends. “Private and for-profit charter school operators will have to provide more information to the public about how they spend tax dollars they are paid to run the schools.” But “the books won’t be anywhere near as open as a public school district’s.”
Also, what amounts to accountability for charters seems especially weak under the provisions of the new law. “The Ohio Department of Education will start to publicize which operators run each school and give information to the public about the academic performance of the schools that each operator runs. That will let families know the track record of the people running a school.” It will? How many families will dig into state reports to make decisions about where to send their kids to school?
A Hands-Off Policy For Charter Schools?
For his part, Secretary Duncan seems little interested in how new federal grants to charter schools will be spent, saying it’s “largely up to states and the public agencies that approve charter schools,” according to the Post article cited above. “At the federal level, we don’t have a whole lot of leverage,” he mused.
This seems an oddly resigned comment from an education secretary whose department has made the minute scrutiny of state policy governing nearly everything having to do with public education – from standards, to teacher evaluations, totutoring requirements.
Why would a secretary so often accused of leading an unprecedented overreach of federal intrusion in state education policy suddenly become so nonchalant about oversight of charter schools?
It certainly doesn’t help dampen suspicion that Duncan’s replacement as acting secretary will be John King, the controversial former New York State Education Commissioner, who has deep ties to the charter school industry.
Before becoming New York Commissioner, King helped to found and operate a charter school management organization with schools in New York, Massachusetts, and New Jersey.
Because King will be acting secretary, no nomination process or Congressional hearings will be needed to approve the leadership change.
Source: Salon
Congress to Consider Bill to Help Part-Timers
New York Post - July 22, 2014, by James Covert - Part-timers with increasingly unpredictable work schedules are taking...
New York Post - July 22, 2014, by James Covert - Part-timers with increasingly unpredictable work schedules are taking their beef to Washington.
A congressional bill is slated for introduction Tuesday that would give workers more control over their hourly schedules at big retailers like Walmart, Home Depot and JCPenney.
Led by Walmart, major chains increasingly are switching around workers’ shifts on short notice, making it difficult and often impossible for part-timers to work second jobs.
The practice — common in retail, restaurant, janitorial and housekeeping jobs — has hit working mothers especially hard, according to critics.
Unpredictable work hours make it difficult to schedule everything from babysitters to doctor’s appointments.
“I think it’s gotten to a crisis point,” said Carrie Gleason, director of the Fair Workweek Initiative, a new campaign by the Center for Popular Democracy, adding workers need “some amount of predictability and stability in our work hours so we can live and manage our lives.”
The bill, sponsored by US Reps. George Miller (D-Calif.) and Rosa DeLauro (D-Conn.), would require employers to give an extra hour of pay to workers summoned less than 24 hours in advance.
The bill would also guarantee a minimum of four hours’ pay if an employee is sent home early — a frequent occurrence at restaurants.
Source
230,000+ Progressives Urge DSCC Not to Fund Any Senate Dems Who Help Confirm Gorsuch
230,000+ Progressives Urge DSCC Not to Fund Any Senate Dems Who Help Confirm Gorsuch
WASHINGTON - Progressive leaders delivered more than 230,000 petition signatures Monday urging the Democratic...
WASHINGTON - Progressive leaders delivered more than 230,000 petition signatures Monday urging the Democratic Senatorial Campaign Committee to publicly announce that it will not allocate campaign funds to Sens. Joe Manchin, Heidi Heitkamp, Joe Donnelly or any other Democratic senator who votes for or strikes a deal to advance the confirmation of right-wing extremist Neil Gorsuch...
Read full article here.
Lax Pa. Oversight of Charters Robs Taxpayers of $30M, Groups Say
Philadelphia Inquirer - October 1, 2014, by Martha Woodall - A new report from a trio of activist groups says...
Philadelphia Inquirer - October 1, 2014, by Martha Woodall - A new report from a trio of activist groups says Pennsylvania charter schools have defrauded taxpayers of more than $30 million because oversight is so lax.
The researchers call for a temporary moratorium on new charter schools, contending agencies are not able to adequately monitor the 186 charters that already exist.
The study by the Center for Popular Democracy; Integrity in Education; and Action United of Philadelphia and Pittsburgh was to be released Wednesday.
The report urges the state Attorney General's Office to review all Pennsylvania charters for potential fraud. It asks the legislature to require charters to undergo regular fraud-risk assessments and fraud audits. And it suggests that until the law is changed to require such actions, charters should voluntarily undergo them and make the findings public.
Researchers said most of the $30 million in fraud that has been detected since the state's charter law was passed in 1997 was not uncovered by charter-oversight offices but by whistle-blowers and the media, including The Inquirer. They said the total amount of misspent funds was likely far larger.
"The current oversight system in Pennsylvania falls miserably short when it comes to detecting, preventing, and eliminating fraud," said Kyle Serrette, education director at the Center for Popular Democracy in Washington.
The center receives funding from foundations, including $990,000 this year from the Ford Foundation. It also receives a small amount of support from teachers' unions, and Randi Weingarten, president of the American Federation of Teachers, is on the organization's board.
Robert Fayfich, executive director of the Pennsylvania Coalition of Public Charter Schools, said that while his group supports accountability, the report makes "sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years."
". . . Fraud and fiscal mismanagement are wrong and cannot be tolerated, but to highlight them in one sector and ignore them in another indicates a motivation to target one type of public school for a political agenda," he said in a statement.
Pennsylvania school districts paid $1.5 million to charters that enrolled 128,712 students in 2012-13. More than 67,000 Philadelphia students attend 86 city charters.
Sabrina Stevens, executive director of Washington-based Integrity in Education, said: "With over $1 billion going to charter schools in Pennsylvania, it's time for charter schools to be held to the same standards of transparency and oversight that public schools are held to."
State Auditor General Eugene DePasquale said it's "good that they put this together," adding that Serrette's group had testified at a charter-oversight hearing his office held in March. "To me, the more voices on this, the better. I think in the next term in the legislature, there is going to be a charter-reform bill move forward."
City Controller Alan Butkovitz said the report echoed concerns he raised in 2010, when his office released its own oversight study that highlighted several problems his office found at city charters.
"We certainly agree with the need for greater oversight and auditing," Butkovitz said. "That's been one of our constant themes."
The instances of fraud cited in the new report include cases where charter officials were indicted or pleaded guilty and instances uncovered in state audits.
Examples include Nicholas Trombetta, founder and former CEO of the Pennsylvania Cyber Charter School in Midland, who is awaiting federal trial in Pittsburgh on charges that he diverted $8 million in school funds for personal use.
The tally also includes $6.3 million that federal prosecutors allege Dorothy June Brown defrauded from the four Philadelphia-area charters she founded.
But the authors give special attention to another recent case involving a city charter: New Media Technology Charter School in the city's Stenton section. The former CEO and founding board president went to federal prison in 2012 after admitting they stole $522,000 in taxpayer money to prop up a restaurant, a health-food store, and a private school they controlled, and for defrauding a bank.
From 2005 to 2009, when the crimes were occurring, third-party auditors hired by New Media failed to spot the fraudulent payments.
"Fraud detection in Pennsylvania charter schools should not be dependent upon parent complaints, media exposés, and whistle-blowers," the authors wrote. Rather, they urged, the system should be proactive and use forensic accounting methods.
According to the report, Pennsylvania's charters are vulnerable to fraud and financial mismanagement because school districts and state offices charged with overseeing them lack resources and staff.
For example, although the cash-strapped Philadelphia district has about half of the state's charters, it has only two auditors and a small office to monitor 86 schools, the report said.
"We agree in the need of greater oversight and a deeper look into the health of charter schools," district spokesman Fernando Gallard said, "and we have taken steps to do so."
Although the district's charter office at times had only two or three staffers, Gallard said, it now has six and is seeking an executive director.
Researchers also said that charters lack strong internal fiscal controls and that their boards have not adopted strict management policies.
And even though the charters are required to have annual audits performed by outside firms, researchers said, those audits rely on general accounting techniques and are not designed to detect fraud.
"The current system of oversight relies heavily on information provided by charter schools themselves and traditional audits that are designed to check accuracy rather than detect and prevent fraud," the report said.
The report said taxpayers cannot afford to lose another $30 million in misspent charter funds. "While the reforms proposed will require additional resources," the authors said, "they represent a smart investment in our communities and in our future."
Researchers said the study was the first in what would be a state-by-state investigation of oversight of charters in the 42 states that have them.
Serrette said researchers decided to begin with Pennsylvania because the timing seemed right. He pointed out that both DePasquale in Harrisburg and Butkovitz in Philadelphia have highlighted the fraud risks in charter schools. And State Rep. James R. Roebuck Jr. (D., Phila.), minority chairman of the House Education Committee, introduced a bill last year to tighten charter controls.
Said Serrette: "The stars are aligning."
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Mayor Signals New Future with Paid Sick Days Move
Gotham Gazette - January 23, 2014, by Amy Carroll & Javier Valdés - Mayor Bill de Blasio and City Council Speaker...
Gotham Gazette - January 23, 2014, by Amy Carroll & Javier Valdés - Mayor Bill de Blasio and City Council Speaker Melissa Mark-Viverito have announced an expansion of paid sick leave coverage for hundreds of thousands of additional workers.
Their decision is a concrete move to confront and alleviate inequality, and bodes well for all New Yorkers, especially low-income workers and their families who live paycheck to paycheck.
The new administration’s proposal will guarantee paid sick leave to manufacturing workers and those at businesses of five or more employees, as well as provide for more aggressive enforcement by city agencies. These are critical first steps that recognize the dignity of workers who drive our city’s economy.
Leonardo Fernando is one of those workers. A 47-year-old immigrant who’s lived in Queens for nine years, he works 12-hour shifts at a car wash, in the heat and in the cold, to support his four children. Previously without paid sick days, he’s gone to work with the flu because he couldn’t afford to risk losing his job or missing a day’s pay. He will now be protected.
Of course, there’s still more to do through the legislative process. We would like to see all workers in New York have the right to paid sick time, and for the administration to strengthen enforcement through increased fines and provide workers the right to go to court when their rights are violated. But this is a great start.
In expanding the earned sick days law, which was fought tooth and nail by the Bloomberg administration and its corporate allies, Mayor de Blasio is honoring a campaign promise and governing as a progressive. And Speaker Mark-Viverito has signaled a clear break from her predecessor, who delayed the enactment of this law for years.
The shift in public policy is a direct result of years of work by workers, progressive advocates, community organizers, labor unions, and the faith community, who banded together to identify and elect new leaders in response to a widening income gap and exclusionary policies that didn’t help middle and working class families.
New York City is now a place where no worker will lose a job for taking a sick day.
What’s next?
Imagine a New York that’s more affordable, more inclusive, more fair. Imagine a city where all children have access to pre-school, a city that eliminates discriminatory policing, a city that leverages wealth to fight inequality and keep families in their homes.
The possibilities are endless. It’s a new day in New York.
Amy Carroll is the Deputy Director of The Center for Popular Democracy. Javier Valdés is the Co-Executive Director of Make The Road New York.
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