Archives for category: Funding

Good Jobs First has studied the distribution of COVID relief funds in depth. It created a site called COVID Stimulus Watch. It published an article about the depth of corruption in the Trump administration, which distributed COVID relief funds.

In this post, the researchers at Good Jobs First reveal the federal funding in the Paycheck Protection Program for all 50 states, distributed to charter schools, religious schools, and private schools.

As you review the funding for your own state, please bear in mind that public schools received an average of $134,500 each. Also, public schools were not allowed to apply for PPP funding. Charter schools were, however, allowed to get a portion of the public school funding and then to apply for PPP funding as if they were small businesses.

Check out your own state. You will find that elite private schools with high tuition and large endowments received grants that often were millions of dollars.

Ed Johnson, fearless advocate for public schools in Atlanta, obtained a list of the charter schools in that city that received Paycheck Protection Program funding from the first CARES Act. Public schools were not allowed to apply for PPP funding. But charters were, because…they are not public schools!

After reviewing the millions in CARES money that went to Atlanta charters, Ed Johnson wrote to members of the Atlanta Board of Education:

Atlanta Board of Education members:

Some of you are, of course, pro-school choice and pro-charter school, thus serving contrary to your sworn Oath of Office vis-à-vis the Charter of the Atlanta Independent School System.

Nonetheless, hopefully all of you now know and understand the truth that charter schools in Atlanta are not Atlanta public schools, to wit:

https://mailchi.mp/4c303dcdd2b5/updated-aps-charter-school-businesses-rake-in-millions-of-ppp-loan-dollars

Thus:

·         Public schools must be spoken truthfully of as public schools, and as public goods.

·         Charter schools must be spoken truthfully of as charter schools, and as private businesses and corporations.

·         Partner schools must be spoken truthfully of as partner schools, and as public schools the Board outsourced to private businesses and corporations.

Just three types of school, thank you.

Ed Johnson

Advocate for Quality in Public Education

Atlanta GA | (404) 505-8176 | edwjohnson@aol.com

As noted in the link in Mr. Johnson’s letter, here are a few of the big winners of federal dollars (they also received a proportionate share of the meager dollars allotted to public schools, so they were double-dipping in both funds):

  • Purpose Built Schools Atlanta, Inc., received a PPP loan in the amount of $4,822,200.00, based on the business needing to protect 408 reported jobs, which figures to $11,819.12 per reported job.  SBA reported the business as being located at 1670 Benjamin Weldon Bickers Drive SE, Atlanta, GA 30315.
  • The Kindezi Schools Atlanta, LLC, received a PPP loan in the amount of $3,855,982.00, based on the business needing to protect 300 reported jobs, which figures to $12,853.27 per reported job.  SBA reported the business as being located at 950 Joseph E Lowery Blvd, Atlanta, GA 30318.
  • Atlanta Neighborhood Charter School, Inc., received a PPP loan in the amount of $1,850,000.00, based on the business needing to protect 120 reported jobs, which figures to $15,416.67 per reported job.  SBA reported the business as being located at 688 Grant St SE, Atlanta, GA 30315.

Unlike small businesses which lost revenue and were forced to lay off employees or close their doors, charter schools never lost revenue during the pandemic. Their stream of government revenue never was cut off. Meanwhile, as they sucked up CARES dollars, hundreds of thousands of small businesses that needed the money went bankrupt and closed forever.

No public school received this large amount of money. The average public school received $134,500 in federal aid in the first CARES Act.

As you probably know by now, charter schools took federal money from two different pots in the CARES Act passed last spring. They got a share of the money allocated for public schools, then had the privilege of getting more money from the Paycheck Protection Program, which was intended to save small businesses in danger of shuttering their doors.

Now there is new relief Act, which is far more generous to public schools, but still allows charter schools to count as both public schools and not-public schools.

Carol Burris did research on the new CARES Act (which she calls CARES2) and found that once again charters will be allowed to double-dip.

On December 21, Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.

CARES 2 (which I am dubbing the Act for simplicity) includes $54.3 billion for K-12 schools, which is about four times more than the last bill. It will be allocated to states to give out as subgrants to Local Education Agencies (LEAs). LEAs are school districts as well as the majority of charter schools. Those charter schools that are not independent of a school district will receive their funding in the same manner as district schools.

According to the law firm Arnold and Porter, which has an excellent summary of the Cares 2 here,  “Like the requirements in the CARES Act, the Secretary of Education must allocate ESSERF (Elementary and Secondary School Emergency Relief Fund) funding based on the state’s share of Title I, Part A funds under ESEA, and states will allocate at least 90 percent of funds as subgrants to Title I schools.”

There is also more leeway on how funds can be used—practically, schools can use it for any activity allowed under federal law.

There is an additional pot of money ($4 billion) that the Secretary of Education will distribute. $1.3 billion can be used by the Governors for public schools and higher ed institutions that were the hardest hit by the pandemic. $2.75 billion can be distributed by governors to private schools. Congress expressly prohibits in the Act the use of any of that money to fund vouchers or tax credits for tuition. The funds must be used to keep the school going, and private schools with high-needs students get priority. 

Can private schools and charter schools dip into the SBA’s Payroll Protection Plan (PPP) funding again? 

Private schools that get money from the $2.75 billion cannot. The CARES2 specifically says they cannot double-dip.

However, there is nothing to prevent a charter school from double-dipping, that is, getting both the ESSERFand PPP2. PPP2 will allow charter schools that are first-time borrowers to apply without stipulation. Suppose the charter received PPP in the first round. In that case, they could apply again if they show a 25% decline in revenue. 

In the first round, charter schools received at least $1.5 billion dollars in PPP. Once again, public schools get the short end of the stick. 

Last spring, when the pandemic began crippling the economy, Congress passed the $2.2 trillion CARES Act (Coronavirus Aid, Relief, and Economic Security Act). It was a rare moment of bipartisan action. Included in the act was the Paycheck Protection Program, which offered $660 billion to help small businesses weather an economic catastrophe in which many would be forced to close their doors and lay off their employees. The PPP would enable these businesses to pay their employees and survive the pandemic.

However, in the inevitable lobbying, someone added nonprofits to the list of organizations eligible to receive government aid under the PPP.

The PPP grants are called loans, but they are forgivable if used for payroll, rent, heating, and other expenses. It’s unlikely that any will be repaid.

Public schools were not eligible to apply for PPP, because they received a fund of $13.2 billion, which they were required to share with charter schools. Charter schools, however, were eligible to apply for PPP as “nonprofits,” meaning they could double dip into both funds. Over 1,200 charter schools got very generous payouts, with some collecting more than $1 million. The average public school received $134,500 from the CARES Act.

Private and religious schools flocked to the PPP and collected far more than public schools. An organization called Good Jobs First created a website called Covid Stimulus Watch to see who got the money. They estimated that private, religious, and charter schools collected nearly $6 billion from PPP, about six times more per school than public schools.

While the federal PPP was scooped up by charter schools, private schools, and religious schools, more than 110,000 restaurants closed, ending the employment and income of many hundreds of thousands of employees, while wiping out the life savings of thousands of owners.

To understand how incredibly generous the Treasury Department was in handing out PPP money to private and religious schools, you should review the list of grants that are attached, representing awards in four states: New York, Massachusetts, Ohio, and Michigan. You will be stunned to see the amounts collected by religious schools and elite private schools. The data were collected by Mellissa Chang of Good Jobs First. If you are wondering about your own state, you can contact her at mellissa@goodjobsfirst.org.

You can get the pdf for the New York data here.

You can get the pdf for the Massachusetts data here.

You can get the pdf for the Ohio data here.

You can get the pdf for the Michigan data here.

Steve Hinnefeld warns that Republican legislators in Indiana are laying the groundwork to expand the state’s failed voucher program. The research on vouchers in many states has been consistent: Students who use vouchers fall behind their peers in public schools. Those who continue to push vouchers are either ideologues, religious zealots, or paid to do so. We know that they don’t help students. Increasingly the students who take vouchers already attend religious schools or planned to, and they are getting public money to pay private tuition.

Indiana legislators like to fund failure.

Don’t be surprised if lawmakers try to expand Indiana’s already generous private school voucher program in 2021. They’re signaling their intention with the issues surveys they send to constituents.

At least eight House Republicans include this question in their surveys, which are posted on their internet sites: “Do you support increasing the income eligibility for Indiana’s CHOICE scholarships, giving more low- and middle-income families the option to send their children to the school that best meets their needs?”

Note that the question contains a falsehood. Increasing the income eligibility for vouchers, officially labeled Choice Scholarships, won’t change anything for low-income families. They already meet income qualifications for the program, which provides state funding for private school tuition.

Under current law, students can qualify for vouchers if their family income is less than 150% of the threshold for reduced-price school meals. They remain eligible if their family income rises to 200% of the reduced-meal level. For a family of five, that’s $113,516, two times Indiana’s median household income.

In other words, low-income families and many middle-income families already meet the income requirements. According to the 2019-20 Indiana Department of Education voucher report, a quarter of voucher recipients came from families that made over $75,000 and 7% made over $100,000.

The suggestion in the survey that vouchers let families choose schools that meet their children’s “needs” is also questionable. Surveys have found that many voucher parents choose private schools primarily because they provide religious training, not because their children have unique needs. Research has shown that voucher students who leave public schools for private schools typically fall behind academically.

Last spring, you may recall, the CARES Act included $13.2 billion for public and charter schools. In addition, $660 billion was allocated to the Paycheck Protection Program (PPP) for small businesses and nonprofits that were struggling to survive due to the pandemic. Public schools were not allowed to apply for PPP. However, many charter schools learned through their lobbyists that they could apply for PPP. In other words, they double-dipped. They took the $134,500 or so that was available in the initial allotment for each public school. Then they went to the PPP and took another bite, which was far bigger than the funding allowed to public schools.

Which raises the interesting question: Are charter schools “public schools” or are they small businesses or private nonprofits? After all, public schools were not allowed to ask for PPP money, but over a thousand charter schools struck gold.

Nevada has a reputation for some of the worst charter schools in the country, but that doesn’t matter. Some of its charters really hit the big time with PPP funding. In 2015, CREDO investigator Margaret Raymond said to charter leaders in Ohio: “Be very glad that you have Nevada, so you are not the worst.”

PPP awards ranged from $168,500 to the online charter Leadership Academy of Nevada to $4.6 million to Doral Academy to support its five brick-and-mortar campuses in Southern Nevada. Many of the forgivable loans were coordinated and handled by the same entity, Academica Nevada, a regional branch of the Florida-based for-profit company that manages some 200 charter schools nationwide and has a strong presence in Nevada.

The charters that qualified for PPP money did so because they are incorporated as nonprofits, something Nevada law allows them to do. Even pre-pandemic, being a nonprofit is often financially beneficial because it opens up additional funding opportunities, such as grants through the federal Charter School Program.

Scan the list in the article: Democracy Prep received $1 million; Odyssey Charter Schools, $2.28 million; Pinecrest Academy, $4.6 million; Sports Leadership and Management Academy (SLAM), $800,000. Pinecrest and SLAM are part of the for-profit Academica chain; SLAM was started by rapper Pitbull, widely celebrated for his misogynistic lyrics.

Joe Biden was very clear about his position on privately managed charter schools during the campaign.

In this video, he was asked by Lily Eskelsen Garcia what he would do about charter schools, and his position was clear: Charter schools should not be funded at the expense of public schools. No federal funds for privately funded charter schools. Charter schools should be subject to the oversight and governance of school boards. Charter schools should be held to the same standards of transparency and accountability as public schools.

Will he keep his promises?

I posted a delightful article by Jennifer Raab, President of Hunter College, celebrating the importance of public higher education, which has provided opportunity to so many students from low-income and immigrant families.

A faculty member of the City University of New York wrote to say that budget cuts are strangling the promise of public higher education.

He wrote:

Public education requires more than cheerleading: right now, we also need advocates who are willing to fight for it. And while Virginia may have been an impressive alumna of Hunter College, this year Governor Cuomo has held back 20% of CUNY funding based on an expectation of a dramatic state shortfall. While the shortfall has been much less than predicted, the cuts to public education have occurred anyways. 

At Hunter and other CUNY schools, those cuts have meant heavy lay-offs of adjunct faculty. Their courses have been cancelled and, as a result, students are being squeezed into over-crowded classes. A course that, a year ago, might have worked with 30 students in person, this semester will have 40 students in a Zoom room. That’s nowhere near the level of teaching and engagement that Virginia received. And that’s a real tragedy.


In a year in which our public officials have insisted they will fight for greater equity, we need leaders who will fight for the country’s largest public university to be fully funded and its students to be given the quality of education they deserve. We need leaders who don’t only celebrate CUNY’s past, but demand that its traditions of providing a first-rate education for all New Yorkers be maintained in the present and into the future. And if that requires fighting, let’s insist that they take up that battle.

There is no money in the COVID relief bill for states and cities that are verging on bankruptcy due to the collapse of tax revenues. Those states and cities support our schools. But there was lots of money for special interests.

The Washington Post reports that Congress tacked on billions of dollars in tax breaks to their favorite lobbyists. When a bill is more than 5,000 pages long, it takes time to find out what goodies were included for favored industries.

Congress on Monday unveiled a 5,593-page spending bill and then voted on it several hours later, with lawmakers claiming urgent action was needed to rescue an ailing economy ravaged by the coronavirus pandemic.


But tucked in the bill was over $110 billion in tax breaks that strayed far from the way the bill was marketed to many Americans. These giveaways include big tax cuts for liquor producers, the motorsports entertainment sector and manufacturers of electric motorcycles.


These measures, added onto the broader spending bill, are known as “tax extenders” — tax breaks targeted at specific, sometimes niche industries. And routinely extending these “temporary” measures has become something of a year-end tradition, despite loud complaints from some lawmakers who allege the votes largely benefit special-interest groups who stand to gain financially from the outcome.


These tax extenders are designed to be temporary but are frequently renewed, often at the urging of industry lobbyists, and done so during late-night votes at the end of the year. (The Senate vote Monday took place shortly before midnight.) The Joint Committee on Taxation estimated the extenders benefiting industry and special interests included in the stimulus bill would cost over $110 billion over 10 years.



Tax experts and good governance advocates have criticized such short-term tax relief extensions, arguing they hide the true cost of the cuts and advantage industries with the most well-connected lobbyists.
“They are a gravy train for members and lobbyists, who repeat the same exercise every year or two,” Howard Gleckman, a tax policy expert at the Urban Institute, said in an email. “The lobbyists get to keep billing hours. The members get campaign money from the same people. Many of these are classic special interest tax breaks that do not benefit the overall economy in any way.”




The federal government collected $3.4 trillion in taxes in the 12 months that ended Sept. 30, but it typically allows more than $1.5 trillion in annual tax breaks, according to the Committee for a Responsible Federal Budget. Some of these are locked into the tax code. Others, however, were initially designed to last only a year or two but continue winning extension after extension because of intense lobbying.


President-elect Joe Biden has been critical of the plethora of tax giveaways, but he will find that both Democrats and Republicans have been steadfast in their supportive of certain tax breaks. And to win passage each year, the tax breaks are bundled together into one package for votes to draw maximum support.




Congress is scrambling to pass a coronavirus stimulus bill before the end of 2020. Here’s what you need to know about what’s included in the legislation.

The enormous new bill packages together emergency economic relief, government funding and tax cuts. The economic relief component of the bill is worth around $900 billion. The legislation included a slew of provisions that had nothing to do with coronavirus relief or funding the government, including many of the tax extenders.


One measure, for instance, makes permanent a cut in excise taxes for producers of beer, wine and distilled spirits, which first became law in 2017 as part of the Republican-led tax cut package. The cuts were due to expire without congressional action, and the alcohol industry had pushed hard for their renewal, arguing that their businesses had been decimated by the pandemic. The industry has supporters among both Democrats and Republicans in Congress, who in turn pushed their leaders to include a bill making the cuts permanent “in the next appropriate legislative package.”

Andrew Ujifusa explains here what the latest COVID relief bill contains for education. Republicans refused to fund cities and states, which supply most of the funding for schools. They also insisted on setting aside $2.75 billion specifically for private schools. It remains to be seen whether charter schools will double dip into both the public school money and the money set aside for small businesses, as they did in the previous COVID relief.

K-12 schools would receive about $57 billion in direct aid under a new $900 billion federal COVID-19 relief deal reached over the weekend by congressional negotiators. 

The vast majority of that amount, $54.3 billion, would be for public schools in an education stabilization fund, and 90 percent of that must ultimately go to local school districts, including charter schools that function as districts. According to the legislation, schools could use the relief to address learning loss, to improve school facilities and infrastructure to reduce the risk of transmitting the coronavirus, and to purchase education technology. This funding would be available through September 2022. 

Education organizations that have long pushed for additional aid for schools grappling with the effects of the pandemic characterized the bill, which is much smaller than some previous proposals, as a down payment. President-elect Joe Biden has suggested he will pursue an additional relief deal after his inauguration.

The legislation does not include more funding for the E-Rate program that supports internet service for schools and libraries. The bill does provide $3.2 billion to an emergency broadband connectivity fund. 

There is also $4.1 billion in a fund for governors to direct to both K-12 and higher education. Of that fund, $2.75 billion is reserved for private schools. This funding cannot be used to support tax-credit scholarships, vouchers, and other forms of school choice. Private schools seeking this aid must agree not to obtain additional funding from the Paycheck Protection Program. In addition, private schools that serve low-income students and have been “most impacted” by the virus are supposed to get priority for this funding. 

The aid included in the bill “will help states deliver safe, high-quality education, expand access to technology, and recover academic learning loss,” Carissa Moffat Miller, chief executive officer of the Council of Chief State School Officers, said in a statement.

The deal does not include relief for state and local governments, a major source of contention during COVID-19 negotiations; a large portion of such aid would end up benefiting K-12 school budgets. 

The bill says states must agree to maintain a certain level of education funding that’s proportional to prior funding levels, in order to receive the aid; however, the secretary of education may waive this requirement for states experiencing a “precipitous decline in financial resources.”

The $57 billion in direct K-12 relief is more than four times what school districts received under the CARES Act that the federal government enacted in March, which provided $13.2 billion to districts. Yet it is less than what was included in previous relief bills introduced by Democrats and Republicans over the last several months. However, the K-12 relief is close to what a COVID-19 relief bill that House Democrats introduced in May would have provided. 

Ronn Nozoe, chief executive officer of the National Association of Secondary School Principals, called the agreement “woefully inadequate as the final word on COVID relief for schools.” The organization had pushed for $175 billion for K-12 relief and $12 billion for the E-rate program.

“Budgets are shrinking while needs are expanding from the pandemic,” Nozoe said in a statement. “Schools need funding not just to stabilize budgets shaken by local economies, but to accelerate learning after the pandemic. Unless Congress gets serious for the long term about supporting their own public schools, we’ll be cutting into bone—fewer teachers, larger classes, and less social support for kids at precisely their time of greatest need.”

While praising new funding for schools and vaccine distribution, American Federation of Teachers President Randi Weingarten faulted Senate Majority Leader Mitch McConnell for “obstructing the resources states and localities need to respond to the pandemic.”

“I worry that the package will be grossly insufficient to alleviate the hardships so many Americans are suffering,” she wrote in a column posted on the union’s website.

Congress was expected to approve the package Monday and send it to President Donald Trump for his signature. Unlike previous proposals by GOP lawmakers backed by Trump, the new deal does not require schools to hold in-person learning to receive aid. 

Educators have been pressuring Washington for months, ever since the CARES Act became law, for more relief. 

Although a large share of schools have reopened for in-person instruction, many in the education community say that schools need additional aid to address ailing HVAC systems, implement COVID-19 mitigation measures, and shore up shaky budgets amid fiscal uncertainty. 

The deal is similar to a bipartisan relief plan unveiled last week with respect to its K-12 provisions. Earlier this month, Sen. Patty Murray, D-Wash., the top Democrat on the Senate education committee, told Education Week that the next stimulus deal would represent “bridge funding” before another relief deal eventually is reached under the incoming Biden administration.