Group of Lawmakers Says Fed Fails to Diversify Leadership
Group of Lawmakers Says Fed Fails to Diversify Leadership
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its...
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its obligation to build a diverse leadership that includes enough women and minorities, and it wants Chair Janet Yellen to remedy the issue.
The lawmakers said a more inclusive leadership that properly reflects gender, race, ethnicity, occupation and economic background is needed to ensure fairness in Fed policy.
The Democratic lawmakers — 11 senators and 116 in the House — expressed their concerns in a letter to Yellen. The Fed's leadership "remains overwhelmingly and disproportionately white and male," they wrote.
In its search for directors who oversee the Fed's 12 regional banks for terms next year, the Fed's board of governors should cast a wider net for African American, Latino and female candidates, as well as qualified people from labor, consumer and community organizations, the lawmakers told Yellen.
A Fed spokesman, David Skidmore, responded that the central bank is "committed to fostering diversity — by race, ethnicity, gender and professional background — within its leadership ranks."
"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," Skidmore said. "By law, we consider the interests of agriculture, commerce, industry, services, labor and consumers. We also are aiming to increase ethnic and gender diversity."
The senators signing the letter include Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont, who is challenging front-runner Hillary Clinton for the Democratic presidential nomination. Warren and Sanders are the most outspoken Democratic critics on economic and financial issues.
The 116 House members, representing more than half the 188 Democrats in the House, are led by Rep. John Conyers of Michigan, the senior Democrat on the Judiciary Committee.
The letter cites data from the Center for Popular Democracy, a liberal advocacy group. The data indicates that 83 percent of the directors who supervise the Fed's regional banks are white and that nearly three-quarters of them are men. All the members of the Fed's committee that sets interest-rate policy are white, and 60 percent are men.
The Fed counters that the proportion of minority directors on the boards of its regional banks and their branches has risen from 16 percent in 2010 to 24 percent this year, and that the proportion of female directors has increased from 23 percent to 30 percent. Forty-six percent of the directors represent diversity in race and-or gender, the Fed said.
"We are striving to continue that progress," Skidmore said.
The data cited in the congressional letter do not include directors of the regional banks' branches, only the banks themselves.
On Thursday, Clinton's campaign said she shares the lawmakers' concerns. A spokesman, Jesse Ferguson, said Clinton thinks "the Fed needs to be more representative of America as a whole." She also believes there no longer should be three private-sector bankers sitting on each regional Fed bank board, Ferguson said.
That change would require new legislation.
Yellen, the first woman to lead the central bank in its 100-plus-year history, has stressed in her public statements the importance of overcoming economic inequality.
The five current Fed governors are white. Two, including Yellen, are women.
By MARCY GORDON
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Former Toys R Us workers to get $20 million in hardship fund
Former Toys R Us workers to get $20 million in hardship fund
Since late summer, Toys R Us workers have been pressuring pension funds to in turn push a group of hedge firms that...
Since late summer, Toys R Us workers have been pressuring pension funds to in turn push a group of hedge firms that owned the retailer’s secured debt in a bid to get the remaining money they say is owed to them...The groups that organized the Toys R Us workers — Organization United for Respect, along with Private Equity Stakeholder Project and the Center for Popular Democracy — say that the hardship fund is being structured to allow the other firms to contribute, paving the way for Solus, Vornado and others to contribute. KKR and Bain said the fund was established in response to the “extraordinary set of circumstances” that led to Toys R Us being shuttered.
Read the full article here.
Why Labor and the Movement for Racial Justice Should Work Together
Why Labor and the Movement for Racial Justice Should Work Together
The Movement for Black Lives (M4BL) has made tremendous strides in exposing and challenging racial injustice, and has...
The Movement for Black Lives (M4BL) has made tremendous strides in exposing and challenging racial injustice, and has won real policy victories. The policies, while often imperfect, are a testament to the strength of the organizing and activism of the moment. Not coincidentally, this uprising comes at a time when income and wealth inequality are at peak levels and the economy for most black people looks markedly different than the economy for their white counterparts.
Just as we are in a critical moment in the movement for racial justice, we are in a critical moment for the right to unionize. Unions, which have been a major force for economic justice for people of color in the past 50 years, have been decimated to historically low levels.
Labor should work alongside the Movement for Black Lives, a coalition with more than 50 organizations, to usher in a radically new economic and social order. The path won’t be easy. But recent history has shown that one of the ways to get at this new reality is through union bargaining. Consider the example of Fix L.A.
Fix L.A. is a community-labor partnership that fought to fund city services and jobs alike, using city workers’ bargaining as a flashpoint to bring common good demands to the table. The coalition started after government leaders in Los Angeles drastically cut back on public services and infrastructure maintenance during the Great Recession. The city slashed nearly 5,000 jobs, a large portion of which had been held by black and Latino workers. Not only did these cuts create infrastructure problems—like overgrown and dangerous trees and flooding—but they also cost thousands of black and Latino families their livelihoods.
Fix L.A. asked why the city was spending more on bank fees than on street services, and demanded that it renegotiate those fees and invest the savings in underserved communities.
What was the result of this groundbreaking campaign?
The creation of 5,000 jobs, with a commitment to increase access to those jobs for black and Latino workers, the defeat of proposed concessions for city workers and a commitment from the city to review why it was prioritizing payment of bank fees over funding for critical services in the first place!
Bargaining for the common good
Fix L.A. may seem novel, but the context is no different from many places. We have seen massive disinvestment from public services in a way that disproportionately affects black people. This structurally-racist disinvestment is often driven by the corporate interests that bankroll elected officials’ campaigns and by Wall Street actors that use their influence over public finance to push an austerity agenda. Everywhere you look, public officials are making a choice between paying fees and providing critical services.
Chicago Public Schools paid $502 million to banks in toxic swap fees at the same time that it was slashing special education programs and laying off teachers to close a budget deficit. Detroit raised its water rates and paid $537 million in Wall Street penalties, setting the stage for mass water shutoffs when tens of thousands of poor residents of the overwhelmingly black city could not afford the higher water bills.
Wall Street and other corporations don’t hesitate to profit off of and perpetuate disinvestment in communities of color, and too often we forget to look up the food chain to see that at the other end of community crises there are rich bankers and billionaires lining their pockets. Campaigns, like Fix L.A., that involve direct actions targeting banks, hedge funds, corporations and billionaires are effective.
This sort of organizing can be hard. In order to isolate workers from their broader communities, the other side has done a terrific job of narrowly defining the scope of bargaining as wages and benefits. In many states, labor laws prohibit public sector workers from bargaining over issues that concern the welfare of the broader community or the quality of the services they provide.
The theory of “bargaining for the common good” seeks to challenge this status quo. As articulated by Joseph McCartin of Georgetown University’s Kalmanovitz Initiative for Labor and the Working Poor, bargaining for the common good has three main tenets: 1) transcending the bargaining frameworks written in law and rejecting them as tools for the corporate elite to remain in power; 2) crafting demands between local community groups and unions at the same time and in close coordination with each other from the very beginning; and 3) embracing collective direct action as key to the success of organizing campaigns.
These may seem like simple ideas, but they stand in complete opposition to the way the power elite expects union bargaining to be done. Therein lies their power.
Therein also lies the opportunity for unions to partner with the Movement for Black Lives. For all of their complicated racial histories, unions are some of the largest organizations of black people in the country. About 2.2 million black Americans are union members—some 14 percent of the employed black workforce.
That’s a huge number of black people who are already members of organizations with the capacity to organize and mobilize. And these black workers, like all black people in America, face real challenges of structural economic racism in almost all aspects of their lives. Their communities have been underfunded; their schools are being dismantled; they face massive poverty and are under economic assault; and they regularly encounter police violence.
Stronger together
Widening the scope of bargaining in Los Angeles led to real wins for the city’s black and Latino communities. The rest of the labor movement should take note. Imagine the power that could be added to the Movement for Black Lives if unions, recognizing the trauma that systematic racism wreaks on their membership, brought solutions that have been elevated by the Movement for Black Lives to the bargaining table in negotiations with employers ranging from the City of Baltimore to private equity giant Blackstone.
But unions cannot do this unilaterally and expect unconditional support from the black community.
Unions must make the effort on the front end to build a real relationship with Movement for Black Lives groups and members, and partner with them in developing common good bargaining demands that start to go on the offense against Wall Street and the structurally-racist economic power structure. There are groups of people organizing for racial justice under the banner of the Movement for Black Lives near every union local in the country. The onus is on labor leaders and rank-and-file union members to reach out to those groups and start to build a strong relationship where one does not exist. This process will not be easy, especially because of the history of racism that plagues unions, especially police unions. But the truth remains that there is a real opportunity to leverage the power of both movements to win real gains for black people and other people of color through a strong partnership.
It is exciting to imagine potential bargaining demands major unions could undertake alongside racial justice organizations. For example, they could demand that their employers make a commitment to job training programs to strengthen the pipeline for black workers; city and state workers could demand progressive taxation measures that raise funds from corporate actors to fund schools and services in black communities; teachers could demand school districts enact restorative justice policies to stem the school-to-prison pipeline; hospital workers could bargain for targeted health care access programs in communities of color; retail workers could demand that their employers “ban the box” and let the formerly incarcerated work. The list is almost infinite.
Bargaining for racial justice is a radical idea and will not be easily won. It will require concerted direct action targeting the real decision makers in both the public and private sectors that have a vested interest in keeping racial inequities in place. The Movement for Black Lives has proven that it can execute effective and creative direct actions backed by solid demands. They are also innovating creative tactics that move beyond traditional marches and picket lines to new types of disruptive actions that make power holders directly confront those they are harming. By combining the vision and militant tactics of the Movement for Black Lives with the membership and resources of the labor movement, we can usher in a more just and equitable society
BY MAURICE WEEKS AND MARILYN SNEIDERMAN
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Contractors and Workers at Odds Over Scaffold Law
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of...
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of the skyscraper, lawmakers in New York State enacted a law intended to safeguard construction workers who were finding themselves facing increasing dangers while working at ever-greater heights.
That measure, which became known as the Scaffold Law, required employers on building sites to ensure the safety of laborers working above the ground. Since then, some form of the legislation has remained on the books despite repeated attempts to repeal it.
But a lobby of contractors, property owners and insurers has in recent months renewed a campaign against the law, arguing that no less than the future of the state’s construction industry is at stake.
They argue that the law is antiquated and prejudicial against contractors and property owners, and essentially absolves employees of responsibility for their own accidents, leading to huge settlements. The payouts, they contend, have in turn led to skyrocketing insurance premiums that are hampering construction and the state’s economic growth.
On Tuesday, a coalition of contractors, including a newly formed alliance of firms owned by women and minorities, announced the start of an advertising and lobbying blitz in Albany and New York City. But a counter-lobby of unions, workers’ advocates and trial lawyers is pushing back just as fiercely. The law, they argue, is essential to ensuring the safety of workers in some of the world’s most dangerous jobs, particularly those employed by shoddy contracting firms that cut corners to save money. The law, they say, holds developers and contractors accountable for keeping job sites safe.
Gov. Andrew M. Cuomo this week acknowledged the politically loaded atmosphere surrounding the Scaffold Law, but suggested that he was open to the possibility of modifying the law.
The law states that contractors and property owners are responsible for ensuring that scaffolds, hoists and other devices that enable aboveground building construction and repair “shall be constructed, placed and operated as to give proper protection to a person so employed.”
When injuries result from a violation of those terms, the law says, contractors and owners are liable. There is no mention of worker responsibility. Under the law, however, the plaintiff still must show that a violation of the law’s standards occurred and that the violation caused the injury.
But those seeking to change the law want to incorporate a standard of “comparative negligence.” This amendment — described in a state bill submitted earlier this year — would require a jury or arbiter to consider whether the liability of the defendants, and thus the amount of damages, should be reduced for cases in which the worker’s negligence or failure to follow safety procedures contributed to the accident.
Opponents argue that the amendment would reduce the incentive for the property owner and contractors to take necessary safety precautions.
“This law protects both union and nonunion workers and creates a sense of accountability on these job sites,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, an umbrella group for unionized construction workers. “If the law was modified, the workers would lose their voice.”
But those seeking to alter the law say the amendment would not eliminate the owners’ and contractors’ motivation to keep their workplaces safe because they would still face the possibility of shouldering large payouts, even if they were found only partly responsible for an accident.
“The notion that a contractor or owner would want to do anything to undermine the safety of the worker on the job doesn’t make sense,” said Pamela Young, associate general counsel of the American Insurance Association.
Workers’ advocates argue that erosion of the Scaffold Law would have a disproportionate impact on minority and immigrant laborers, who, the advocates say, are more likely to work for nonunion companies that may not provide proper safety training and equipment.
Immigrants, the advocates said, are less likely to speak the same language as their bosses on a job site and more likely to fear being fired if they demand a safer workplace.
From 2003 to 2011, federal safety regulators investigated 136 falls “from elevation” that killed workers on construction sites in New York, according to a recent report by Center for Popular Democracy, an advocacy group. Of those workers, about 60 percent were Latino, foreign-born or both. That rate rose to 88 percent among fatal falls in New York City.
Some trial lawyers have been effective at using the law to secure large settlements. Of the 30 largest settlements in 2012, at least 14 were in cases brought under state labor laws and most of those involved falls from ladders or scaffolding, according to The New York Law Journal. The awards ranged from $3 million to $15 million.
Weislaw, a Polish immigrant, was the plaintiff in a liability case that was settled last month. (He spoke on the condition that his surname not be used in this article, out of concern for his privacy.) He had been part of a crew repairing the roof of a one-story public school building in Long Beach, on Long Island. While he was working on the roof one spring day in 2010, he was concentrating so hard on his task that he lost track of the edge of the roof and fell, he said, suffering multiple fractures.
“I will most likely never be able to return to work,” he said.
Weislaw filed a lawsuit under the Scaffold Law arguing that he had not been provided with proper protection, such as a safety line or a spotter.
The case settled for $2.7 million, said David Scher, a lawyer from the firm that represented him.
Critics of the Scaffold Law say the way it is written makes these sorts of cases easy to win.
“It’s a gold mine for the plaintiffs’ bar,” said Mike Elmendorf, president and chief executive of Associated General Contractors of New York State. “When you get one of these cases, it’s largely about how much it’s going to cost.”
These high payouts, he and others contend, have driven up insurance rates, knocking smaller contractors, particularly those run by minorities and women, out of business and forcing others to suspend work, costing thousands of jobs.
They argue that the impact is as high on government projects as it is on private ones, and that the soaring cost of liability insurance is forestalling the repair and construction of public works projects, such as schools, bridges and roads. The New York City School Construction Authority said in a statement on Monday that its liability insurance costs for 2014 would be nearly as much as those for the three-year period from 2011 to 2013.
But in recent weeks, the law’s defenders have employed a new gambit, demanding that the insurance companies open their accounting ledgers to prove whether the Scaffold Law is, in fact, responsible for the rate increases. Insurance executives have vowed to fight any demands to disclose proprietary information that might somehow undermine their competitive advantages.
State Assemblyman Francisco P. Moya, a Democrat who represents a heavily immigrant and Latino area of Queens, said he planned to submit a bill that would expand reporting requirements for insurance companies and help lawmakers assess whether the Scaffold Law needed to be changed.
“Show us how much the payouts are,” Mr. Moya said. “Once we see that, we’ll have a better understanding.”
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Black Community Seeks the Power of the Ballot
Source: Vox...
Source: Vox
For black communities in the United States, presidential election participation rates are strong and momentum is building.
In 2012, black voters showed up at the polls in the largest numbers (66.2 percent) and voted at a higher rate than non-Hispanic whites (64.1 percent) for the first time since rates were published by the U.S. Census Bureau in 1996.
Black Americans tend to vote Democratic in presidential elections. This was true by historic margins in President Barack Obama's 2008 and 2012 victories— 95 and 93 percent, respectively. And their turnout rate in 2016 could be an important factor in deciding the next president of the United States, especially in a tight race.
That's good news for black community leaders who want to ensure their voices are heard and hold future leaders accountable.
Civil rights leadership
The 2014 and 2015 cases of deadly police force against unarmed African-Americans have galvanized a tech-savvy generation of activists to inject new life in an age-old push for racial, economic and social equality.
More and more, movements such as Black Lives Matter are becoming international household names and are holding candidates accountable to specifically address and push for legislation on these issues.
One such organization, Black Alliance for Just Immigration (BAJI), engages and advocates on behalf of African-American and black immigrant communities on issues of racial justice and immigrant rights.
BAJI's policy and legal manager, Carl Lipscombe, says part of the greater push nationwide to organize and bring to light instances of police brutality results from what he describes as a community-wide fear of "being killed when walking to the corner." He says these police cases are enhanced by the advent of social media and by the ability to capture events on camera that wasn't possible in the 1980s.
Lipscombe says candidates must do more than "throw a bone" if they expect communities of color to go to the polls in droves.
"It's not enough to just say we want free education for everyone," Lipscombe said. "We want to know how this is going to impact black people."
According to the U.S. Bureau of Labor Statistics, the unemployment rate among blacks in the United States, at 9.4 percent, remains significantly higher — nearly double — than the overall rate of 5 percent nationwide.
Black wealth also has declined. The non-partisan Economic Policy Institute, in coordination with the liberal research institution Center for Popular Democracy, reports that black workers' wages have fallen by 44 cents on the hour in the past 15 years, while wages of both Hispanic and white workers have increased by approximately the same amount.
African immigrant concerns
The Migration Policy Institute reports that black immigrants from Africa are better educated than the overall U.S. population, age 25 and older.
In 2007, 38 percent held a four-year degree or more, compared to 27 percent of the U.S. population. Yet, black immigrants earn lower wages and hold the highest unemployment rate in comparison to other immigrant groups, according to the Center for American Progress.
Bakary Tandia, case manager and policy advocate at African Services Committee, a Harlem-based agency dedicated to assisting African immigrants, refugees and asylees, says progress is necessary across all levels of government.
"Even if you take the case of [New York City Mayor Bill] de Blasio,” Tandia said, “he is a progressive mayor, but in his administration, I have not seen any African immigrant appointed or in a meaningful position, and the same thing goes at the state level, at the federal level."
New leadership
Grass-roots coordinators say anti-immigration rhetoric among some presidential candidates has fueled electoral participation, as well as greater community leadership.
Steve McFarland, whose organizing efforts include get-out-the-vote campaigns among disenfranchised communities in New York, says the immigration reform movement, combined with the work of Black Lives Matter, has produced a new generation of civil rights leaders.
"It doesn't look the way that it used to look," McFarland said. "It's not big organizations, but they can mobilize people, they have a clear voice, and they are winning changes across the country."
Ahead of the 2016 presidential primaries, there is good news for Democratic frontrunner and former secretary of state Hillary Clinton. She currently enjoys an 80 percent favorability rating among adult blacks, the highest positive net rating of all candidates, according to a recent Gallup poll.
Clinton, who has met privately with Black Lives Matters activists, specifically addressed racial profiling in an October speech at Clark Atlanta University.
"Race still plays a significant role in determining who gets ahead in America and who gets left behind," Clinton said. "Racial profiling is wrong, demanding, doesn't keep us safe or help solve crimes. It's time to put that practice behind us."
Warren leads crusade for diversity at Fed
Warren leads crusade for diversity at Fed
“I’m judging John Williams based on the last several years of him being wrong about the levels of maximum employment...
“I’m judging John Williams based on the last several years of him being wrong about the levels of maximum employment and pushing for additional [interest rate hikes] prematurely because that mistake puts millions of jobs at risk,” said Shawn Sebastian, who co-leads the Fed Up coalition comprising advocacy groups and unions.
Read the full article here.
Photo Flash: Scarlett Johansson's OUR TOWN Reading Raises $500K for Puerto Rico Relief
Photo Flash: Scarlett Johansson's OUR TOWN Reading Raises $500K for Puerto Rico Relief
"We are deeply grateful to Scarlett Johansson, Kenny Leon and everyone involved in the production of this play for...
"We are deeply grateful to Scarlett Johansson, Kenny Leon and everyone involved in the production of this play for stepping up and contributing their talent to help towards the equitable and just rebuilding of Puerto Rico. This event demonstrates the importance of collective solidarity and responsibility and how powerful it is when we come together to help our communities," said Xiomara Caro, Director of New Organizing Projects for the Center of Popular Democracy and coordinator of Maria Fund.
Read the full article here.
Report Shows Illinois Has One of the Nation’s Highest Black Unemployment Rates Despite an Improving Economy
Report Shows Illinois Has One of the Nation’s Highest Black Unemployment Rates Despite an Improving Economy
Across the country, the economy is supposed to be slowly picking up, but the unemployment rate for Blacks is still...
Across the country, the economy is supposed to be slowly picking up, but the unemployment rate for Blacks is still about twice the rate of whites. A report by Progress Illinois said the state’s Black unemployment rate is one of the worst in the nation.
According to analysis by the Economic Policy Institute (EPI,) only two other states, New Jersey and South Carolina have higher Black unemployment rates than Illinois. D.C. had the highest Black unemployment rate at 14.2 percent, while Tennessee had the lowest at 6.9 percent. Illinois’ Black unemployment rate declined to 11.5 percent in the second quarter of 2015, according to Progress Illinois.
The nationwide unemployment rate has fallen to about 9 percent. However, the Black jobless rate is twice the white unemployment rate of 4 percent, according to the Bureau of Labor Statistics.
“African Americans are still unemployed at a higher rate than their white counterparts in almost every state,” said EPI economist Valerie Wilson, who conducted the unemployment analysis. “We need policies that look beyond simply reducing unemployment to pre-recession levels as an end goal.”
In a press release, Connie Razza, director of strategic research for the Center for Popular Democracy (CPD), said, contrary to the improving economy, “Black America is still in the middle of a Great Recession.”
According to Progress Illinois, EPI and the Center for Popular Democracy both called on the Federal Reserve to support policies that would help Black America.
“When [Fed] Chair [Janet] Yellen and other Fed officials talk about raising interest rates in 2015, they are talking about intentionally slowing down the economy and job growth, which would make it harder for most Americans, and particularly Black workers, to find good-paying jobs,” Razza said. “The direct consequences of the Fed’s projected interest rate hikes would harm millions of workers.”
A tight labor market, which we have now, benefits employers since there are more people looking for fewer jobs. This allows employers to keep labor costs low and easily fire workers, because there are hundreds of people lined up to replace them. Razza said the Fed needs to support policies that would move towards a full employment economy.
“A full-employment economy, as we saw in the late 1990s, shrinks racial inequity and will bring particular benefits to Black workers, who are disproportionately unemployed, underemployed, underpaid, and endure more difficult scheduling circumstances in the workplace,” Razza said.
Black unemployment has been a long-standing problem. The Labor Department began tracking employment figures by race in 1972 and since then the Black jobless rate has stubbornly remained at twice the white rate. Employment experts say its not just a matter of training and education. Studies have shown Black men with college educations have higher unemployment rates than white men with just a high school education.
However, economists say the improving economy is making it easier for all Americans, including Black people, to find work.
“Now, you’re starting to see a broad recovery which is reaching groups with high unemployment rates like African-Americans and teens,” said Michael Madowitz, an economist at the American Center for Progress in a CNN article.
This issue was also brought up during the last Republican debate.
“Once you have economic growth, it’s important we reach out to people who live in the shadows… which includes people in our minority community and people who feel they don’t have the chance to move up,” said Ohio Gov. John Kasich, a Republican presidential candidate.
Source: Atlanta Black Star
Education “Reformers’” New Big Lie: Charter Schools Become Even More Disastrous
Salon - March 2, 2015, by Jeff Bryant -What fun we had recently with North Carolina’s recently elected U.S. senator,...
Salon - March 2, 2015, by Jeff Bryant -What fun we had recently with North Carolina’s recently elected U.S. senator, Republican Thom Tillis, who insisted we didn’t need government regulations to compel restaurant employees to wash their hands in between using the toilet and preparing our food.
His solution to proper sanitation practices in restaurants – “the market will take care of that” – was roundly mocked by left-leaning commentators as an example of the way conservatives uphold the interests of businesses and moneymaking above all other concerns.
Fun, for sure, but it’s no laughing matter that the Tillis plan for public sanitation appears to increasingly be the philosophy for governing the nation’s schools.
Rather than directly address what ails struggling public schools, policy leaders increasingly claim that giving parents more choice about where they send their children to school – and letting that parent choice determine the funding of schools – will create a market mechanism that leaves the most competent schools remaining “in business” while incompetent schools eventually close.
Coupled with more “choice” are demands to increase the numbers of unregulated charter schools, especially those operated by private management firms that now have come to dominate roughly half the charter sector.
As schools lose more and more students to the charter schools, parents then “vote with their feet,” choice advocates argue, and the market will “work.”
Why the “Tillis Rule” that seems so wrong for public health has been declared the wave of the future for the nation’s schoolchildren and families seems to hardly ever get questioned.
Tarheel School Choice Extravaganza
The Tillis Rule is certainly now the driving force behind new education policy in North Carolina, as rapid charter school expansions and a new voucher plan have opened up public schools to various “market forces.”
How’s that working out?
So far, not so hot. For instance, in Charlotte, at least three charter schools abruptly closed down this year alone, some after having been in operation for only a few months. The most recent shutdown was particularly noticeable.
That school, Entrepreneur High, focused on teaching students job skills, so they could be financially independent when they graduated. Turns out the school had its own financial problems with only $14 in the bank and $400,000 in debt. In fact, the school never even really had a financial plan at all.
In other news from the front of “school choice” in the Tarheel State, left-leaning group N.C. Policy Watch recently reported about a state auditor who checked the books of a Kinston charter school and found the school overstated attendance–thereby inflating its state funds by more than $300,000.
The school shorted its staff by more than $370,000 in payroll obligations, according to reports, while making “questionable payments of more than $11,000″ to the CEO and his wife. And the CEO’s daughter was being paid $40,000 to be the school’s academic officer even though she had zero experience in teaching or school administration.
When the reporter, Lindsay Wagner, tried to contact the school’s CEO to question him about the auditor’s findings, she discovered he had left his position and was working elsewhere in the state – running a different charter school.
Meanwhile, the state has rolled out another school choice venture: vouchers, called Opportunity Scholarships, that allow parents to pull their kids out of public schools and get taxpayer funding to enroll the kids in the schools of their choice. Wagner, again, wondered where the money was heading and found 90 percent of it goes to private religious institutions.
More recently, Wagner’s account of this money found “more than $4,000,000 worth of taxpayer-funded school vouchers have now been paid out to private schools.” Of the top 12 private schools benefiting from this money, all are religious schools.
Also, Wagner reported, voucher funds come with “virtually no accountability measures attached … Private schools are also free to use any curriculum they see fit, employ untrained, unlicensed teachers and conduct criminal background checks only on the heads of schools. For the most part, they do not have to share their budgets or financial practices with the public, in spite of receiving public dollars.”
It’s unfair, however, to single out North Carolina for school choice shenanigans.
Charter Corruption Spreads, Grows
In Ohio, for instance, a recent investigation into charter schools by state auditors found evidence of fraud that made North Carolina’s pale in comparison. The privately operated schools get nearly $6,000 in taxpayer money for every student they enroll, but half the charter schools the auditor looked at had “significantly lower” attendance than what they claimed in state funding.
One charter school in Youngstown had no students at all, having sent the kids home for the day at 12:30 in the afternoon.
This form of charter school fraud is so widespread, according to an article in Education Week, many states now employ “‘mystery’ or ‘secret shopper’ services used in retail” that pose as inquiring parents to call charter schools to ensure they’re educating the students they say they are.
Enrollment inflation is not the only form of fraud charter schools practice. In Missouri, a federal judge recently fingered a nationwide chain of charter schools, Imagine, for “self-dealing” in a lease agreement that allowed it to fleece a local charter school of over a million dollars.
“The facts of the case mirror arrangements in Ohio and other states,” the reporter noted, “where Imagine schools pay exorbitant rent to an Imagine subsidiary, SchoolHouse Finance. The high lease payments leave little money for classroom instruction and help explain the poor academic records of Imagine schools in both states.”
A charter school manager in Michigan is about to go on trial for steering nearly a million dollars in public funds targeted to renovate his charter school into his own bank account.
In Washington, which was late to the game of charters and choice, the state’s first charter school is already under investigation for financial and academic issues.
Investigators in the District of Columbia, recently uncovered a charter school operator who “funneled $13 million of public money into a private company for personal gain.”
A recent report from the Center for Popular Democracy looked at charter school finances in Illinois and found “$13.1 million in fraud by charter school officials … Because of the lack of transparency and necessary oversight, total fraud is estimated at $27.7 million in 2014 alone.”
One example the CPD report cited was of a charter operator in Chicago who used charter school funds amounting to more than $250,000 to purchase personal items from luxury department stores, including $2,000 on hair care and cosmetic products and $5,800 for jewelry.
The report made specific policy recommendations, including financial reviews and a moratorium on new charters, to increase the transparency and accountability of these schools – the type of policy recommendations charter and school choice fans continue to fight at every turn.
Voucher Ventures Expand Across the Country
While charter school operations continue to waste public money on scandals and fraud – all in the name of “choice” – newly enacted school vouchers divert more public school dollars to private schools.
In parts of Ohio, “the state-sponsored voucher program has increased or even doubled enrollment at some private schools.”
In Indiana, which has the largest taxpayer-funded school voucher program in the country, according to a local source, virtually all of the participating schools, 97 percent, are religiously affiliated private schools.
In Louisiana, over a third of students using voucher funds to attend private schools are enrolled schools “doing such a poor job of educating them that the schools have been barred from taking new voucher students.”
In parts of Wisconsin, “private schools accepting vouchers receive more money per student than public school districts do for students attending through open enrollment.”
Despite the obvious misdirection of taxpayer money, more states are eager to roll out new voucher plans or expand the ones they have. As the Economist recently reported, “After the Republicans’ success in state elections in November, several are pushing to increase the number and scope of school voucher schemes,” including Wisconsin, where probable presidential candidate Scott Walker has proposed to remove all limits on the number of schoolchildren who could attend private schools at taxpayer expense.
Of course, not all voucher-like schemes are called “vouchers.” According to a report from Politico, some states are considering voucher-like mechanisms called Education Savings Accounts that allow parents to pocket taxpayer money that would normally pay for public schools to be used for other education pursuits, including private school and home schooling. Two states – Florida and Arizona – already have them, but six more may soon follow.
Vouchers Hit the Hill
Support for vouchers extends to Congress, as another Politico article reported, where Republican, and some Democratic, lawmakers are “proposing sweeping voucher bills and nudging school choice into conversations about the 2016 primaries.”
According to a report from Education Week, congressional Republicans leading the effort to rewrite the nation’s federal education policy, called No Child Left Behind, are “intent on drafting the most-conservative version of the federal K-12 law possible,” which would include a voucher-like scheme allowing federal money designated as Title I funds, the program for schools with low-income students, “to follow those students to the school of their choice, including private schools.”
In fact, working its way through the U.S. House of Representatives currently is a bill called the Student Success Act that would provide for this “Title I Portability.” In the U.S. Senate, according to Education Week, Title I Portability is also included in a draft bill to rewrite NCLB introduced by Sen. Lamar Alexander of Tennessee.
“Everyone should care and learn about Title I Portability,” warns public school advocate Jan Resseger on Public School Shakedown, a blog site operated by the Progressive magazine.
Resseger points to a statement by the National Coalition for Public Education stating, “This proposal would undermine Title I’s fundamental purpose of assisting public schools with high concentrations of poverty and high-need students.” Resseger also cites, from the Center on American Progress, a brief opposing Title I Portability. “According to CAP,” Resseger explains, Title I Portability would be “Robin Hood in Reverse … taking from the poor and giving to the rest,” ignoring the long-known fact that socioeconomic isolation has a devastating impact, as, on average, “school districts with highly concentrated family poverty would lose $85 per student while more affluent school districts would gain, on average, $290 per student.”
Despite the damage that Title I Portability could do to public schools serving our most high-needs students, charter school advocates appear to back the measure, according to a recent post at Education Week. “By and large, we feel that when the dollars follow children to the school that they select, you create a better marketplace for reform,” the president of the National Alliance for Public Charter Schools Nina Rees is quoted.
What about those charters that continue to commit waste and fraud while they funnel public money into privately operated businesses? Will “the market will take care of that”?
Where Choice Fails
Back to the Tillis Rule, consider another example of leaving public health policy up to individual choice: the recent measles outbreak.
That outbreak made it abundantly clear that where parents have the good fortune to be “safe in the herd” of vaccinated children, they often don’t feel an obligation to vaccinate their own offspring.
One can be sympathetic to parents with religious beliefs, or parents who simply hate seeing their babies being stuck with needles, and still justifiably point out to those parents that their “principles” come at the expense of other people’s potential inconvenience, expense and, possibly, suffering.
If those parents lived in a very different country that didn’t provide safety in the herd – or, in the case of Sen. Tillis, didn’t provide for basic sanitation – they’d probably feel quite differently about imposed health regulations.
Certainly comparing healthcare policy to education is not a false equivalency. The two policy arenas are strongly interrelated. The positive correlation between numbers of years of education to healthcare outcomes is well documented.
Further, parents clustered around schools often may share the same information and attitudes, which also can affect health outcomes.
In the case of the recent measles outbreak in California, University of Maryland sociologist Philip N. Cohen took numbers initially crunched by Duke University sociology professor Kieran Healy and found, “Runaway vaccine exemptions are problems of the private and charter schools … The average charter school kindergartner goes to school with classmates almost five times more likely to be non-vaccinated; and charter school kids are more than 3-times as likely to be in class with 5 percent or more kids exempt.”
As Cohen revealed, charter schools he examined have “fewer kids eligible for free-lunch than regular public schools (43 percent versus 55 percent). … Rich charter schools on average have the highest [vaccine] exemption rates, while poor schools – charter or not – are heavily clustered around zero.”
Cohen concluded, “Because they are more parent-driven, or targeted at certain types of parents, charter schools are more ideologically homogeneous. And because anti-vaccine ideology is concentrated among richer parents, charter schools provide them with a fertile breeding ground in which to generate and transmit anti-vaccine ideas.” (H/T Ron Wile.)
Better Than Choice: A Guarantee
Tillis Rule notwithstanding, most people understand that public health policy should be guided not by desires to maximize personal choice but by the need to guarantee public safety and wellbeing. That guarantee, rather than the maximization of choice, is what makes it possible to have the freedom to conduct commerce, live and work safely in our communities, and move about freely in society.
Why should that guarantee we insist on for public health be any different from what we insist on for public education?
Instead, with today’s school choice crowd, children’s guaranteed access to high-quality public education appears to be no longer the goal – either by policy or practice.
Under the Tillis Rule, it’s assumed some schools will be allowed to remain lousy at least for some substantial period of time (how long is anyone’s guess), while “the money follows the child,” “people vote with their feet” and “the market works.”
Any negative consequences to those students and families unlucky or unfortunate enough to be stuck in the not-so-good schools – after all, it’s impossible for every family to get into the “best school” – seem to not matter one whit.
And that’s really sick.
Source
Activists Protest Universities Over Investments In Puerto Rico Bondholders
Activists Protest Universities Over Investments In Puerto Rico Bondholders
A coalition of social and economic justice groups has launched a one-week campaign to end what they view as problematic...
A coalition of social and economic justice groups has launched a one-week campaign to end what they view as problematic university investments. The New York-based Center for Popular Democracy (CPD) and partner organizations including three Make the Road branches will hold six protests along the East Coast, calling on Columbia, Harvard and Yale to pull their investments out of hedge funds that hold Puerto Rican debt and have advocated austerity measures in the U.S. territory, leading to mass school closings and higher tuition costs.
Read the full article here.
1 month ago
1 month ago