Archives for category: Funding

This is an excellent message from the Bidens about reopening schools safely.

They say what most educators and parents say.

We want schools open but we want them open safely.

Job one: lower the infection rate in the community.

Job two: Make sure schools have the resources so that students and adults are safe.

Biden pledges to follow through on both.

Trump demands that schools open in a few weeks regardless of the pandemic, regardless of the inability to provide a safe building and smaller classes.

Vote for Biden.

Everyone wants schools to open but Congress and the Trump administration don’t want to pay for it. That cost includes reduced class sizes for social distancing, additional teachers, cleaning services, nurses, ventilation improvements, personal protective equipment, and whatever is recommended by CDC.

In places where the disease is out of control, reopening will not be possible. First control the disease, then reopen schools. Trump could start the process by wearing a mask in public, whenever he is in public. His refusal to do so has spread the virus by encouraging his admirers to do as he does, which violates the strong advice of medical professionals.

Where reopening is possible, Congress must foot the bill because the stayes’s coffers have been depleted by the economic toll of the pandemic.

Thus far, Congress has been generous to high-income individuals and employers, but stingy with the nation’s schools, as David Dayen of “The American Prospect” explains here. To see the links and open them, go to his post here.

Dayen writes:

As we head into crunch time on coronavirus relief, the demands coming from the White House threaten to upset the entire deal. Donald Trump remains obsessed with a payroll tax cut, which nobody in Congress, really, wants. Any payroll tax cut with any real impact on people—a three-month holiday would run around $300 billion—would cut deeply into the other White House demand for a relief bill topping out at no more than $1 trillion.

The proper amount of spending for this bill is “whatever it takes.” If you don’t like the cost, maybe you shouldn’t have completely botched the policy response such that major regions of the country have to shut down again. The same people whining about expense are the ones who drove the country into despair. The cost of a continued runaway virus is much higher than the cost of emergency measures to ensure millions of people have adequate food and shelter during this crisis.

But if you really, really must constrain the response, and you really, really must have this payroll tax cut, then I have an idea: get rid of all the other long-term tax cuts mostly targeted toward the rich, many of them passed in the very last coronavirus relief bill.

They don’t get much discussion but there were a host of tax provisions in the CARES Act, passed in March. In fact there was a payroll tax holiday, but for the employer side, not the employee. Not only can employers delay payroll taxes to next year, they can eliminate them if they retain employees. The two measures are estimated at about $66 billion, and the savings falls on the business.

A bigger tax break has been termed the “Millionaire’s Giveaway” by Americans for Tax Fairness. This $135 billion tax break allows people with partnerships or other structures to carry forward losses from previous years and offset gains in their taxes in future years. It only affects people making half a million dollars in income from the partnership or more. The same type of deduction for businesses costs another $25 billion; the oil and gas industry in particular has been using that one, converting their losses in recent years into corporate welfare checks. There’s also an interest deduction available to larger corporations ($13 billion). Certain aviation taxes were suspended ($4 billion); see if that shows up in a lower ticket fare.

Add it up and that’s $243 billion in tax giveaways to rich people and corporations in the CARES Act. If the White House wants a payroll tax cut it can come out of that. Most of the benefits from those changes don’t hit until next year and the payment of 2020 taxes, and beyond. It makes sense to pull up spending (tax breaks are spending through the tax code) to when it’s needed now.

The Heroes Act, the House Democratic bill, actually accomplished a form of this, by cancelling the Millionaire’s Giveaway permanently, as it was due under the Trump tax cuts to come back in 2026 anyway. That brings in $246 billion overall, according to the Joint Committee on Taxation, enough for a decent-sized payroll tax holiday.

And as long as we’re talking about the Trump tax cuts, we could eliminate the measures most tilted to the rich and powerful—the corporate tax cut, the S-corporation pass through for rich people who set up partnerships, the deducations for dividends on foreign earnings, and the inheritance tax cuts—and take in about $3 trillion. If the next relief bill simply has to be capped at $1 trillion, then you could do $4 trillion in spending and add these measures in and hit that number.

Again, I think it’d be ridiculous to offset anything for emergency relief. But playing by the rules set up by the White House isn’t an obstacle, thanks to the trillions of dollars in offsets Trump created with his tax law. There is also a case to be made that rebalancing the inequality baked into the tax code is good public policy anyway, and if it can facilitate critical crisis spending under the stupid strictures of straitjacket budget politics, all the better.

Unfortunately, Chuck Schumer is trying to leverage the new bill to get a tax cut for well-off people, particularly in his own state, by removing the cap on the state and local tax deduction imposed in the Trump tax cuts. That was also in the Heroes Act (albeit just a two-year suspension). There’s no need whatsoever for this kind of long-term help for people who itemize when the unemployed and the poor are in desperate trouble right now. Wealthy people don’t need another champion to engage in special pleading for them.

David Dayen of The American Prospect reports in his series “Unsanitized” that Mitch McConnell and Senate Republicans are hammering out a new coronavirus relief bill, but its main beneficiaries will be businesses and hospitals that want liability protection. Are you surprised?

There might be funding to help schools reopen but it will likely be too little and too late. It’s tough to plan an opening in late August or early September in the midst of a pandemic when the money to pay for health measures does not yet exist.

Over 600 faculty and staff at Penn have organized Penn for PILOTS and issued a statement calling on the university to make “payments in lieu of taxes” (PILOTs) to the Philadelphia public schools. As is well known, the public schools in Philadelphia are chronically underfunded, thanks to a hostile Republican legislature, and they are currently facing devastating cuts amid the COVID-19 pandemic. Penn is the largest property owner in Philadelphia and the only Ivy League university that doesn’t pay PILOTs. Calls for PILOTs have surfaced for years, but support for the idea has now reached an unprecedented level. A significant number of Penn faculty and staff believe that it is time for the university to pay its fair share for public schools.

As the organizing statement of the group says, Penn is the seventh wealthiest university in the nation, and the Philadelphia schools are among the poorest in the nation.

This is the petition of the organizers. The statement begins:

We are faculty and staff at the University of Pennsylvania who believe that Penn has a responsibility to ensure adequate funding for the Philadelphia public schools. Penn is the largest property owner in the city of Philadelphia, but as a non-profit institution, it pays no property taxes on its non-commercial properties. In other words, it contributes nothing to the tax base that funds Philadelphia’s public school system—this in a city whose schools are underfunded and facing deep budget cuts amid the COVID-19 pandemic.

Our Commitment

Penn should contribute to an Educational Equity Fund governed by the school district and city of Philadelphia. These would be payments in lieu of taxes (PILOTs)—a fraction of what Penn would owe if it were subject to property tax assessment. We commit ourselves to seeing our university pay its fair share.

Nearly every other Ivy League university already makes payments in lieu of taxes. Penn would be joining the ranks of Harvard, Yale, Princeton, Brown, Cornell, and Dartmouth in recognizing its financial obligation to the community of which it is a part.

The supporters of this demand explain their rationale:

This is not a matter of charity but of justice. Penn’s tax exemption is predicated on the notion that it is a non-profit institution that exists to fulfill a public purpose, not a for-profit corporation that exists to accumulate capital. That distinction must be made meaningful. Today, Penn is the seventh richest university in the country. Philadelphia, meanwhile, has the highest poverty rate of the ten largest cities in the United States. If Penn’s public mission is to have any meaning at all, the university must not be an exemplar or engine of urban inequality.

Yet the existing system of public finance ensures that Penn benefits from city services that it does not pay to maintain. Penn’s administrators, faculty, and staff rely on city schools, sanitation services, transportation, and other programs. Penn’s location in the city of Philadelphia is one of its defining characteristics that enables the university to attract faculty and students. When the university does not pay for the services and environment that make its work possible, other Philadelphians are left to make up the difference—or city schools and other institutions simply go without. Penn has a duty to contribute to the city that sustains it.

Here is their list of frequently asked questions.

The Philadelphia Inquirer wrote about this remarkable movement.

I salute the faculty and staff at Penn who support this movement. The financial condition of the Philadelphia public schools is dire. They need all the help they can get. In this age on intense individualism and greed, it is wonderful to see people acting with a sense of social responsibility.

Ralph Ratto is a retired teacher in New York State. In this post, he reminds readers of the importance of school ventilation systems, which are seldom in a good state of repair, and the necessity of paying to clean and upgrade them for the safety of students and staff.

He asks: Why is Congress willing to fund banks and big corporations but not the health of our nation’s children and their teachers.

If school ventilation systems fail to provide fresh air before Covid, what do you think will happen with Covid? So my question is really this, why haven’t school districts, and states remediated while school buildings were closed?

This is not rocket science! Clean those univents and filters in classrooms, install new ones where needed, and add exhaust fans.

Spacing desks 6′ apart is not enough, cleaning surfaces is not enough! If the air quality is poor all of that will not matter.

The Feds and states must pour money into our school infrastructure if they want to open the economy. Forget the corporate bailouts, for once in my lifetime I would love our nation to put schools at the top of a national priority and support them with the funding needed.

Charters in the Philadelphia area received more than $30 million in Paycheck Protection Program funds, while public schools in Philadelphia continue to be systematically underfunded. The big winner in the PPP sweepstakes is the for-profit Chester Community Charter School, owned by a major Republican donor and billionaire.

One of the largest loans, between $5 million and $10 million, went to Chester Community Charter School (CCCS), which is operated by a for-profit management company owned by wealthy Republican donor Vahan Gureghian.

The loan was received by Archway Charter School of Chester, Inc., which is the nonprofit name for CCCS under which it files its 990 tax form.

The CCCS charter already received more than $2.5 million from the CARES Act, intended for public schools. So CCCS, which aims for a complete takeover and privatization of its district, is funded both as a “public school” and a small business.

The most recent 990 form on file for Archway and available in Guidestar, which is for 2017, reports that almost all its more than $66 million in revenue comes from “government grants.” Gureghian has resisted releasing any information about his management company’s profits, but the 990 reports $18 million in management costs.

Chester Community is among those pursuing a court case that could privatize the management of all the schools in Chester. Charters already educate most of the K-8 students in the district.

No one has yet gathered a complete list of charter schools that collected funds from the federal relief fund for small businesses called the Paycheck Protection Program. The list was released just a week ago, and there were more than 600,000 recipients. The Network for Public Education is creating spreadsheets and hopes to compile a comprehensive list.

Salon estimates that the charter industry may have received as much as $1 billion from PPP. That’s a lot. But think of it this way. Charter lobbyists made sure that charters were eligible for the money (public schools are not), then let charters know that they could apply. There are about 7,000 charters (enrolling 6% of the nation’s children). If only 1,000 were funded for $1 million each, that’s $1 billion.

Roger Hollenberger, a staff writer for Salon, reports:

One network alone, the Knowledge Is Power Program (KIPP), appears to have pulled somewhere between $28 million and $69 million in taxpayer dollars.

Another network of publicly-funded, privately-run schools, Achievement First, appears to have taken in between $7 million and $17 million in PPP loans. The network also received $3.5 million from a special $65 million federal grant that Education Secretary Betsy DeVos awarded to 10 charter management organizations in April, weeks after the PPP was passed, to “fund the creation and expansion of more than 100 high-quality public charter schools in underserved communities across the country.

Citizens of the World Charter Schools in Los Angeles received $1.7 million of the DeVos grant, and also took between $2 million and $5 million in PPP money.

Mater Academy, Inc., in Miami received $19.2 million of the grant, the most of the field. Three days later, on April 13, it took out more than $1 million in PPP money…

Treasury Department does not disclose specific dollar amounts, but breaks loans into maximum and minimum ranges. Salon’s research did not make clear whether this analysis covered every charter school in the nation, but that seems unlikely. Regardless, the minimum total is roughly $500 million, and t the maximum, the total would appear to exceed $1 billion.

Organizations don’t have to pay back their PPP loans if certain employee retention criteria are met. At least 15 charter schools that reported receiving more than $1 million in payroll protection from the government reported putting that money towards zero jobs. At least seven of the schools left the field blank.

One school, Idaho Arts Charter School, Inc., received between $1 million and $2 million in forgivable relief loans, and reported putting it towards one job…

When Congress passed the the Coronavirus Aid, Relief and Economic Security (CARES) Act in March, it allocated $13.5 billion in grants to K-12 schools. Most of that money was intended for public school districts, which share funds with charters.

Public schools shared the CARES Act funding with charter schools, which claim to be public schools but only charter schools could apply for the PPP funding, not public schools. Whatever the total, the charters scored a coup with PPP funding.

Do you wonder which businesses, schools, and nonprofits in your neighborhood or state got a piece of the hundreds of billions of dollars handed out by Treasury Secretary Steven Mnuchin in the Paycheck Protection Program? He tried to keep the names of the recipients secret but eventually released the list.

Now you can easily review the list.

ProPublica put all the awards into a search engine which anyone can use. Here it is.

You can satisfy your curiosity about who got the money. I looked at my zip code and was shocked to see some very wealthy institutions listed as well as some local businesses who probably thought they won the grand prize in the lottery. Those on the know cashed in. Many worthy small businesses and colleges never applied. They were not in the know.

Would you like to do some volunteer work for the Network for Public Education? We would love to have your help identifying the charter schools in your state that received PPP money.

Public schools were not eligible to participate in the PPP, but charter lobbyists made sure that charter schools were. Thus, they got money designated for public schools, and they went back to get more money as small nonprofit businesses.

NPE is developing a spread sheet for every state but we don’t have the staff to review all of them. If you would like to help, please contact Darcie Cimarusti, our Communications Director, who is coordinating the project.

You would need to go through your state’s list of grantees and identify the charter schools and how much each one received.

If you want to help, contact Darcie and she can answer your questions. Dcimarusti@networkforpubliceducation.org

Curtis Cardine of the Grand Canyon Institute created this updated list of the charter schools, private schools, and religious schools in Arizona that received federal grants from the Paycheck Protection Program, which was supposed to help small businesses survive the pandemic. It is a very long list. Public schools were not eligible to apply for these funds. Charter schools collected millions from funds allotted only to public schools, then collected more millions from PPP as small businesses.

You can see the dataset here.

This is a powerful editorial written by the editorial board of the York Dispatch.

The Republican-controlled legislature has imposed a funding system that is literally forcing the school district to starve in order to survive.

It is an outrage.

This should be a cover story in every national magazine. It isn’t, because it’s all too common.

When we starve our schools, we destroy the education of the children who attend them.

The editorial says:

York City School District is trapped in a death spiral.

It’s stuck under years-long state management that limits how money can be spent. Charter schools are annually sucking more than $25 million from its budget. Miserly state lawmakers foist the responsibility for funding public education on local officials, thereby fostering a system that rewards students in rich communities and punishes those in poor ones. And York City taxpayers are fed up with paying taxes that are up to double what’s paid in richer districts with more valuable property.

It’s no wonder that, under these conditions, York City Superintendent Andrea Berry presented a slash-and-burn budget for the 2020-21 school year containing $6.2 million in cuts. And, sadly, it’s no surprise the district’s school board went even further, last week approving a budget that axed 44 positions, including 32 teachers.

And, even so, York City’s 2020-21 budget still boosted taxes. That’s how bad things really are.

Really, what choice did district officials have?

York City school officials are trapped in a budgetary spiral that’s plagued poor, largely minority communities throughout the U.S. for decades. Under-represented at the statehouse, their calls for funding reform fall flat.

Like anything stuck in a trap, eventually the grisly choice of gnawing off one’s leg is the last, best available option.

Easily available metrics, such as test scores, drive the moneyed classes from the city, exacerbating blight and crashing property values.

The poverty increases the demand for not-for-profits, which, in turn, remove more property from the tax rolls.

And, all the while, Republicans in the state Legislature tout the myth of “school choice,” a particularly insidious bit of libertarian conservative dogma — concocted in response to the integration of Southern schools — that conspires to privatize the American school system and funnel taxpayer dollars to religious institutions.

The results will be devastating for York City’s students and society at large.

Interested in the performing arts? Too bad.

Hoping to grow from an introduction in the humanities? Those options are even more limited now.

Programs such as these are, in a very real sense, the foundation of a well-rounded education, one that prepares students to take their place as active citizens in a representative republic. But, more often than not, society has decided that the liberal arts aren’t for poor kids.

Make no mistake, York City’s plight is one destroying urban districts throughout the country. Just ask Connecticut Superior Court Judge Thomas Moukawsher, who, in 2016, wrote a blistering ruling that attacked the very foundation of the system under which public schools are funded in this country.

His 90-page ruling was an indictment of the disparity between rich districts and poor ones that the U.S. funding model breeds.

“So change must come. The state has to accept that the schools are its blessing and its burden, and if it cannot be wise, it must at least be sensible,” Moukawsher wrote.

And yet, with the inherent systemic flaws well-established, school districts such as York City remain trapped and must eat itself just to survive.

Officials there had little choice this past week.

But the fact that they were left without any other options is neither moral nor just.

Thanks to Peter Greene for sharing this blistering but accurate editorial.