Archives for category: Funding

 

A new report assessed the needs of Arizona’s schools and concluded that the state must spend an additional $2 Billion to upgrade its schools. 

Arizona ranks 49th in the nation for teachers’ salariesand dead last for per-pupil spending.

“The Grand Canyon Institute (GCI), an independent, nonpartisan think tank, conducted its analysis based on educational goals defined in the Arizona Education Progress Meter. The goals were established by Expect More Arizona and The Center for the Future of Arizona….

“It’s been nearly 30 years since Arizona’s state legislature approved a tax increase. Individual tax rates have tumbled downward, and exemptions have increased. Meanwhile, corporate tax cuts have drastically reduced the revenue collected from businesses.”

Sadly, the Republican leadership is deeply indebted to ALEC and the Koch brothers, whose gospel is low taxes and low spending on public services. Last year, the rightwing bill mill ALEC rated Arizona the top-performing state in the nation, despite its abysmal teachers’ salaries and high poverty. On its annual report card, Arizona received a B-, the highest score awarded by ALEC, mainly because of its many school choice programs.

 

Arizona and Colorado adopted ALEC-inspired tax-cutting policies, writes Jan Resseger. Their chief victim was public schools and teachers. This was intentional, not an accidental consequence.

“Arizona and Colorado, where teachers walked out last Thursday and Friday, represent the two states where the gap is widest among all the fifty states.  In Arizona, public school teachers make only 62.8 percent and in Colorado 64.5 percent of the salaries of other college graduates. And in both states the cost of living is quickly rising….

”Here are some realities in Arizona, where teachers continued their strike yesterday. The Washington Post’s Moriah Balingit reports: “When adjusted for inflation, Arizona cut total state per-pupil funding by 37 percent between 2008 and 2015, more than any other state.  That has led to relatively low teacher salaries, crumbling school buildings, and the elimination of free full-day kindergarten in some districts… Low teacher pay has contributed to teacher shortages in Arizona. Some districts, unable to find qualified teaching candidates, have turned to emergency long-term substitutes who are required to hold only a high school diploma.

”Writing for Education Week, Daarel Burnete II adds: “Arizona is one of seven states that, in response to voter demands, has cut income taxes in the last decade, a revenue source schools rely on heavily. In 2016 alone, the state allowed $13.7 billion to go uncollected through a series of income, sales, and other tax exemptions, deductions, allowances, exclusions, or credits, according to the state’s department of revenue.  At the same time, Arizona has made among the most dramatic budget cuts in the nation to its schools, totaling 14 percent in the last decade alone… The paradox is that Arizona’s economy is in its best condition in years.  Its unemployment rate stands at 4.9 percent, and the state’s 100 largest corporations added more than 20,000 jobs last year alone.”

”Colorado’s capacity to fund its schools is complicated by an American Legislative Exchange Council backed Taxpayer Bill of Rights, a TABOR, adopted into Colorado’s state constitution in 1992. Here is a description about how Colorado’s TABOR affects school funding: “(W)hat it basically means is that lawmakers can’t raise your taxes without making you vote on it first. And it also limits how much of a ‘raise,’ so to speak, that the state gets each year. And, if the state happens to generate too much money, it can’t keep it. Instead, this goes back to taxpayers.”  TABOR and other tax freezes and limitations in Colorado mean that state’s allocation for school districts has declined steadily.

”The Center on Budget and Policy Priorities explains further that Colorado is the only state that has embedded a TABOR into its constitution despite attempts in other states, where voters have defeated passage of this kind of restrictive policy that is being promoted by far-right anti-tax interests. More than a decade after the TABOR was passed, Colorado’s revenue collapsed so completely that: “In 2005, Colorado voters approved a measure to suspend TABOR’s formula for five years to allow the state to rebuild its public services. Unfortunately, the suspension did not last long enough for the state to recover fully from the period that TABOR was in effect, and the Great Recession further undermined that effort.  TABOR continues to cause ongoing fiscal headaches for Colorado even as the economy improves.”

The citizens of these states must decide whether they want low taxes or a decent education system. Charters and vouchers are no substitute for adequate funding.

 

 

 

Politico explains why some states can’t raise taxes to pay for education and other public services. Conservative Republicans, obeying their puppet masters at ALEC (funded by the Koch brother, the DeVos family, and major corporations) persuaded voters to change the laws to require a supermajority for any tax increases.

“TEACHER STRIKES HIT STATES WITH STRICT TAX HIKE REQUIREMENTS: In Arizona and Oklahoma – where tens of thousands of teachers have flooded state capitals in recent weeks to demand better pay and hundreds of millions of dollars in education funding – the state constitution makes it hard to raise taxes. Voters in both states approved constitutional amendments in 1992 that require a supermajority – much more than half – of the state legislature to impose new taxes or increase existing ones, as opposed to a simple majority.

“- A major lift in some states: It takes two-thirds of the state legislature in Arizona to impose new taxes or increase taxes. In Oklahoma, it takes 75 percent of the state legislature – one of the strictest requirements in the country. And while supermajorities aren’t the sole driver of education funding woes, critics argue that they lock in tax cuts year after year, making it difficult for states to address education funding shortfalls.

“- “This is a classic example of something that sounds good, but it’s a complete poison pill,” said Nick Johnson, senior vice president for state fiscal policy at the Center on Budget and Policy Priorities. “Supermajorities just reduce the power of a state to do what it needs to do.” Johnson said the requirements also allow conservatives to “lock-in” their “advantage into the future.” Florida is considering such a proposal on the ballot this November.

“- CBPP notes that Arizona “cut personal income tax rates by 10 percent in 2006, cut corporate tax rates by 30 percent in 2011, reduced taxes on capital gains, and reduced taxes in other ways over the last couple of decades.” State education funding in Arizona is also down 14 percent since the recession hit, after adjusting for inflation. A coalition of Arizona public school advocates led by a progressive policy group is now pushing for a ballot measure to raise income taxes on wealthy Arizonans to help pay for public education.

“- Conservative organizations like the American Legislative Exchange Council have long-pushed for supermajority measures nationwide in an effort to curb “excessive government spending.” Jonathan Williams, ALEC’s vice president for the center for state fiscal reform, argued that supermajorities haven’t prohibited states from taking action when it comes to education funding. He pointed to Oklahoma, where the threat of massive teacher walkouts prompted state lawmakers to pass a rare tax hike in March that would fund a $6,100 pay raise. “When something becomes a necessity, these state lawmakers were able to hit even the most stringent of the supermajority thresholds,” Williams said.”

 

The Blog for Arizona describes the inside story of the Arizona teachers’ strike and Governor Doug Ducey’s feckless efforts to stop the strike without making any concrete concessions to teachers.

“Doug Ducey, the ice cream man hired by Koch Industries to run their Southwest subsidiary formerly known as the State of Arizona, is a practitioner of propaganda over policy. He rolls out a glossy media P.R. campaign and gets his corporate benefactors to pay for advertising praising him for his P.R. campaign. The substance of the actual policy gets lost.

“Ducey did this for his #ClassroomsFirst initiative in which he declared himself to be the “education governor,” he did this to sell his unconstitutional Prop. 123 to settle the education inflation adjustment lawsuit against the state so that the state would not have to pay restitution for funds stolen by our GOP-controlled legislature, and he is doing it yet again with his #20by2020 teacher pay proposal.

“Ducey’s dark money “Kochtopus” allies in the Arizona Chamber of Commerce and Industry started a new group called the “Arizona Education Project” and fielded a $1 million soft-sell TV ad blitz to say  “Arizona schools are making progress.” Arizona “Ground Zero” for Koch Attack on Public Education. As the Arizona Daily Stareditorialized, “no number of feel-good TV spots will change the fact that Arizona comes in last, or almost last, in numerous rankings of per-pupil state spending in the nation.” Education ad campaign doesn’t change the facts.

“The “Kochtopus” Death Star, the Goldwater Institute, is now threatening school districts with lawsuits for closing during the #RedforEd teacher walkouts, no doubt on Gov. Ducey’s behalf. Goldwater Institute sends letter to schools calling Arizona teacher walkout unconstitutional. Per usual, the Goldwater Institute is full of shit and bluster. The actual point of their intimidation campaign is a reminder  that “We own this state, and you will obey!

”With more than 50,000 educators and their supporters marching on the state capitol this week in a sea of red, our self-described “education governor” (sic) refused to meet with education leaders, Ducey to meet with ‘decision makers,’ not teachers to talk about salaries, and instead negotiated a “deal” with his GOP legislative leaders in a one-sided negotiation that did not include the teachers. Governor announces budget deal with teacher pay raise — but gives no details.”

Republican leaders negotiated a deal among themselves, refusing to talk to teachers. The presence of 50,000 teachers wearing #RedForEd did not earn them a seat at the table. One side talking to itself, said “Arizona Republic”columnist E.J. Montini, is not a deal. One little detail: the Republican Plan is to distribute any new funding to districts and let them decide whether to increase teachers’ salaries. Some pay raise that is!

Blog for Arizona writes:

”You have this weekend to contact your state legislators and to let them know that without new tax revenue dedicated to public education for teacher raises and to restore the billions of dollars cut by our GOP-controlled legislature over the past decade, there is no “deal.” And if they vote for this budget gimmick of “robbing Peter to pay Paul” yet again, you will be voting them out of office in November. Enough is enough.”

 

 

The lame-duck School Reform Commission in Philadelphia, which ceases to exist on June 30, voted to award a third charter to Franklin Towne Charter school, which currently has two charters serving majority-white populations. The SRC called on the charter operator to make a greater effort to achieve diversity. The current K-8 charter is 75% white; the high school charter is 83% white. They are located in diverse neighborhoods and do not reflect the neighborhood.

What makes this decision peculiar is that the owner of the Franklin Towne charter chain has engaged in ethically dubious real estate deals. As The Notebook reported, the CEO of Franklin Towne is involved in one of those real estate deals where the charter company is both landlord and tenant.

The debt of Franklin Towne Charter network is long-standing, incurred through a series of circular real estate arrangements that were used to purchase and construct school buildings and rent the buildings from companies that its CEO created.

A 2010 report from the city controller found these arrangements at nine different charter school operators around the city and described it as a way of “transferring taxpayer-funded assets to non-profits that are not accountable to the School District.” 

The report found Franklin Towne’s high school to be among those nine. CEO Joseph Venditti leased the school’s already-purchased property to a for-profit entity he created, Franklin Towne Holdings LLC, and then subleased it back to the school. He also doubled his own compensation over the course of three years. 

As CEO, Venditti took the building bought by the high school with bonds and leased it to Franklin Towne Holdings. The holding company sub-leases the building back to the school, which pays rent to the holding company. Venditti signed the lease and sublease as both CEO of the school and manager of Franklin Towne Holdings LLC, according to the 2010 city controller’s report. 

Franklin Towne is no longer collecting state reimbursements for rent payments, but a 2014 audit of the high school’s finances found that the same circular leasing arrangement was still in place. According to the audit, this agreement will not expire until January 2033.

Franklin Towne has since expanded to open a K-8 school called Franklin Towne Elementary. Audits of that school found it is in the same sort of relationship with the Richmond Street Development Corp., a nonprofit, which collects rent on the already-purchased school building.

Richmond Street Development Corp. was established by the elementary school in 2009 to acquire land and construct a school building, according to the 2014 audit. And Franklin Towne Charter Elementary is “the sole member of the corporation.” 

The school also “effectively appoints a voting majority of the board” and Richmond Street Development Corp. is “economically dependent on Franklin Towne Charter Elementary School for financial support,” according to the audit. 

The Charter Schools Office’s evaluation of Franklin Towne’s proposed new middle school, which the School Reform Commission will consider on Thursday, would be set up with a similar arrangement. This time, the high school itself would be acting as the landlord by subleasing a portion of the building to the new middle school. 

These kinds of financial shenanigans are not uncommon in the bizarre world of charter school finance.

But the question is, why would the School Reform Commission ignore this report of Franklin Towne’s shady finances?

The SRC can’t say they were not informed.

Lisa Haver, retired teacher and public school activist, suggested some possible reasons for the SRC’s readiness to award a new charter to the Franklin Towne charter chain in her testimony to the School Reform Commission before they voted to approve expansion:

Testimony of Lisa Haver to the School Reform Commission

April 26, 2018

There is no need in the Frankford/Tacony community for another Franklin Towne Charter.  Franklin Towne already gades 6-7-8 in its K-8 school. The only reason that company needs a new school is to secure its own bottom line.

I taught at Harding Middle School in Frankford for over 10 years. It seemed that there were 2 exits for graduating 8th graders: one for the African-American and Latino students to Frankford High, and another for the white students to Franklin Towne Charter, which should be renamed the Lower Northeast Democratic Ward Leaders Apartheid Real Estate Charter Company.  How does a school in ANY neighborhood in this city, in particular that neighborhood, explain an 83% white enrollment rate? That alone is reason to deny.

As I said about Aspira, what we see here is a Real Estate company/bank that happens to run charter schools.

As CEO, Venditti took the building bought by the high school with bonds and leased it to Franklin Towne Holdings. The holding company sub-leases the building back to the school, which pays rent to the holding company. Venditti signed the lease and sublease as both CEO of the school and manager of Franklin Towne Holdings LLC, according to the 2010 city controller’s report. 

 Venditti is the proposed “incorporator” of the middle school. He is also the CEO of the high school. The high school is proposed to be the management organization for the middle school, as well as its landlord.

 The Charter Schools Office’s evaluation of Franklin Towne’s proposed new middle school…would be set up with a similar arrangement. This time, the high school itself would be acting as the landlord by subleasing a portion of the building to the new middle school. 

 Is it the business of the SRC to fund this pyramid scheme—with taxpayer dollars?

 FTC board pays Venditti $226K to manage two schools, which is almost the amount Dr. Hite is paid to mange 200 schools.  What we don’t know, because of the legal firewall charters are allowed to set up, is how much Venditti makes off of the real estate dealings.

Of all of the political connections of the FTC board, this is the crucial one:

Ryan Mulvey, a board member for Franklin Towne’s elementary school, is a legislative aide for State Sen. John Sabatina Jr., a Democrat, and would also be on the board of the middle school if it is approved.

 Sabatina is the ward leader who supported Commissioner Green’s failed run for Congress.  In fact, Mr. Green’s address on his filing form, 7718 Castor Avenue, 2nd floor, is a commercial property whose sign says “Sabatina Associates”.  Ryan Mulvey’s brother, Scott Mulvey, was Mr. Green’s chief of staff when he was a city councilman.  Thus, Mr. Green, who should have recused himself when he voted to approve this application in February, must recuse himself now from any vote on FTC.

 

 

This is a historic moment. Teachers have walked out in West Virginia, Oklahoma, and Kentucky.

Today they walk out in Arizona and Colorado.

There will be more.

Huffington Post invited me to explain the reasons for this mass rebellion here.

I referred to the work of Bruce Baker and the Education Law Center about school funding, comparing the states. And I referred to the work of the Center for Budget and Policy Priorities about the failure of many states to fund schools since the recesssion of 2008.

The bottom line: do we care about our children, our future, our society?

 

Nancy Bailey writes here that one of the sources of reading failure is the disappearance of libraries and librarians. 

Ironically, I just learned that New York State adopted the edTPAassessment for librarians, and it is not liked by those in the field. Excellent would-be librarians, I hear, are not likely to pass it, while it favors those who give scripted responses. Is the goal to create s shortage of librarians? Ask the state commissioner.

Bailey writes:

Poor students attend poor schools where they miss out on the arts, a whole curriculum, even qualified, well prepared teachers. Students might end up in “no excuses” charter schools with only digital learning.

But, next to hunger and healthcare, one of the worst losses for children in poor schools is the loss of a school library with a real librarian.

Stephen Krashen, a well-known reading researcher and advocate for children, provided a study he and his co-authors did as proof why school libraries help children be better readers. He is adamant that children need access to books, and he believes good school libraries are “the cure.” We often hear that getting books into the hands of very young children is important. It’s also critical to ensure that children who are in fourth grade and beyond have access to books!

Many poor schools have closed their school libraries, citing a lack of funding. Oakland, California lost thirty percent of their school libraries. Cities from Los Angeles to New York report library closures.

Chicago has lost school libraries. Some there blame the teachers union who pushed not to replace the librarian at one elementary school with volunteers. But good school libraries require good librarians.

School districts in many places keep school libraries open, but they let go of their certified librarians. This is a loss for children.

In 2013, when I started this blog and website, I listed under “Reading” a link showing a map of all the schools in the country that no longer have certified school librarians. That link began in 2010, and sadly the list has grown!…..

 

Imagine billionaire Betsy DeVos telling the nation that spending doesn’t make a difference in terms of education outcomes. But she did and she is wrong, as Chalkbeat explained.

For starters, correlation is not the same as causation.

But let’s talk common sense, inasmuch as Betsy already said she is not a “numbers person.”

When parents have the means to do so, they move to high-spending suburban districts. It’s not just for the grass and the trees, Betsy. In high-spending districts, their children have beautiful, well-maintained buildings. They have small classes. They have experienced teachers who are paid well. They have up-to-date science laboratories. They have the best technology. They have classes in history, civics, and government. They have programs in the arts. Their schools have a band, a chorus, dance, film, an orchestra, a string quartet, and more. They have a robotics team, a chess club, a debate team. They have a library with a real librarian. They have a school nurse, a social worker, a psychologist, and all kinds of sports activities.

If urban schools were well-funded, they would have all of this. But they don’t.

Betsy, if you truly believe that money doesn’t make a difference, try this thought experiment. What if you gave all your money away? Where would you be today?

 

Linda Lyon is the new president of the Arizona School Boards Association. She is familiar with the Legislature’s disdain for local control and their contempt for the public schools that 95% of the children in the state attend.

She writes here about the Governor and the Legislature’s empty promises, which have precipitated a likely statewide walkout.

”It is clear that there are many different approaches to achieving a goal that all seem to now agree on – Arizona’s teachers must be more adequately compensated. After all, teachers’ working conditions are students’ learning conditions. That in itself, is no small achievement. But, if we can’t deliver on that goal, it doesn’t matter how much we agree.

“A major stumbling block to “peaceful” resolution is obviously the lack of trust the public education community has in Governor Ducey. As Laurie Roberts, of The Republic, writes, “Ducey didn’t create the crisis in Arizona’s public schools. But in the first three years and three months of his four-year term, he didn’t do anything to fix it. Didn’t recognize that while he and his pals were focused on ways to boost private schools, the public schools – the ones attended by 95% of Arizona’s children – were suffering.” Roberts goes on to say that, #20by2020 (Ducey’s plan) may make for a “trendy hashtag”, but teachers know the funding for Arizona’s public schools is still almost one billion below where it was in 2008 when inflation is considered. And that doesn’t even include the billions in capital funding the state has withheld. The result Roberts says, “is 25-year-old biology books and roofs that leak. The result is rodents running amok and schools unable to afford toilet paper.” The result is a set of poorly paid teachers and support staff who are tired of being ignored and are now shouting “Can you hear us now?”

“This next week is going to be a cliff-hanger for our entire state. One thing is fairly certain. If Governor Ducey and our GOP-led Legislature hasn’t yet adequately “heard” our teachers and other education advocates, incoming shouts from all corners of our state, will no doubt drown out their ability to focus on much else. This issue isn’t going away and our lawmakers better start thinking outside the box they’ve cornered themselves in.”

 

Dana Goldstein writes in the New York Times about the looming teachers’ strike (walkout) in Arizona, a right to work state, where most teachers do not belong to the Arizona Education Association. The state has cut $1 Billion out of the K-12 education budget since the 2008 recession, and is currently among the lowest-spending states in the nation on education. The tax-cutting Governor Doug Ducey has promised a 20% raise by 2020, but has offered no new taxes or revenue source to back up his promise. The New York Times is fortunate to have Dana Goldstein working the education beat because she is knowledgeable, having written “The Teacher Wars,” a history of the teaching profession in the U.S.

She writes:

Arizona educators voted late Thursday in favor of a statewide walkout, as teacher protests over low pay and school funding continued to sweep across the United States.

The spread of the protests to Arizona from West Virginia, Oklahoma and Kentucky, all Republican-dominated states with weak public sector unions, signaled the depth of frustration from teachers and parents over years of education budget cuts.

The movement first arose in West Virginia, where teachers walked off the job in February, winning a $2,000 raise. In Oklahoma, the threat of a walkout garnered a $6,000 raise for teachers, but they still picketed the Capitol for nine days, calling for additional school funding that mostly did not come. In Kentucky, teachers have rallied outside the State Capitol to protest changes to their pension plans and to demand more money for schools.

“It’s clear that our educators are inspired by what they’ve seen in West Virginia and Oklahoma and Kentucky,” said Joe Thomas, president of the Arizona Education Association, the state’s largest teachers’ union. “They see educators rising up and lifting their voices for their students, and doing so in a way that can’t be ignored.”

The vote in Arizona followed weeks of protest across the state and promises from the governor to raise salaries. The Arizona Education Association and Arizona Educators United, a group of teachers who organized independently on Facebook, said that 78 percent of the teachers and school workers who cast ballots supported a walkout.

The groups said the walkout would take place on April 26 if legislators and the governor did not meet their demands, not only for a raise for teachers but also one for school support staff. They also called for an end to tax cuts until Arizona’s per-pupil spending reaches the national average.

Unlike West Virginia and Oklahoma, Arizona has never before had a statewide teacher walkout, and has experienced only a handful of districtwide strikes over the past four decades.

The state has cut approximately $1 billion from schools since the 2008 recession, while also cutting taxes. It spent under $7,500 per pupil annually in 2015, the last year for which census data was available; only Utah and Idaho spent less.

As in the other states where teachers have picketed, many districts in Arizona are facing teacher shortages in subjects like math, science and special education, with principals reporting that staff members are moving to deeper-pocketed states to earn up to $20,000 more per year, or to work in better-funded classrooms.

Noah Karvelis, an elementary school music teacher and the founder of Arizona Educators United, said he was sympathetic to the disruption that widespread school closings would cause students and parents. But, he said, that should not forestall a walkout.

“If we maintain the status quo, that is way worse than missing a couple of days of school,” Mr. Karvelis said at a news conference outside the union headquarters in Phoenix. “The biggest disservice any of us could do for our students right now is to not act in this moment.”

Across Arizona, tens of thousands of teachers, parents and students, clad in red, participated in protests outside schools on April 11. Gov. Doug Ducey said he was “impressed” by the movement, which calls itself #RedForEd. He promised to provide teachers with a 20 percent raise by 2020, and to restore school budgets to pre-Recession levels over the next five years. He said he could do so without raising taxes, because the state’s economy is improving and existing state programs could be cut.

But many teachers rejected that plan, or said they distrusted Mr. Ducey, a first-term Republican.

“You don’t rob Peter to feed Paul,” said Kassandra Dominguez, who teaches kindergarten and first grade in the Pendergast school district, near Phoenix. “That’s so wrong, and I wouldn’t want that money.”

Alternate proposals for raising school budgets include increasing an education sales tax from six-tenths of a cent to one cent, or closing corporate tax loopholes.

The average teacher salary in Arizona is about $47,000 per year, according to the National Center for Education Statistics. But starting salaries are much lower, and many teachers leading the protest movement are in their 20s and 30s.

Ms. Dominguez, 27, earns $38,250 per year, and says that because of low education budgets, she has had to pay out of pocket, or raise money from private donors, to buy her students science supplies, chairs and snacks. She voted in favor of a walkout. Her district had lost a total of $1.6 million over the past five years because of budget cuts, according to administrators, and the school board had come out in favor of the #RedForEd movement.

In San Tan Valley, an exurban area an hour southeast of Phoenix, Mary Stavely, an elementary schoolteacher, said she had also voted in favor of a walkout. Ms. Stavely, 34, earns $36,800. Thirteen of 38 teachers at her school, Circle Cross Ranch K-8, are planning to resign at the end of this academic year, she said, because of factors like low pay and a lack of rental housing in the area.

“It directly affects students” when teacher turnover is high, Ms. Stavely said, because children “lose morale and the connections that were made” with caring adults. Ms. Stavely, a single mother, is currently living with her parents, and said she has considered looking for a higher-paying job. Still, she said she had spent her spring break going door to door to recruit parents to enroll their children at her public school. Arizona has aggressively expanded charter schools and private school vouchers in recent years, leading to enrollment declines — and potential budget cuts — for some traditional schools.

More than 57,000 educators filled out a ballot in the Arizona walkout vote. There are approximately 90,000 certified teachers in the state, but only 20,000 members of the Arizona Education Association, the union. As in the other red states that have had recent teacher protests, union membership is optional for Arizona educators, and labor organizing is new for many of them.

Among those who oppose a walkout is Jim Segar, 64, a colleague of Ms. Stavely’s at Circle Cross Ranch K-8 and a physical education teacher.

Mr. Segar said the proposal from Mr. Ducey was the best teachers could realistically hope for. “You can’t get everything at once after years of neglect,” he said. “I think people would be crazy to walk or strike now.”