Pittsburgh Mayor’s Tantrum About School Finances Proves He Doesn’t Understand Education or Equity

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Pittsburgh Mayor Bill Peduto is steaming mad and he doesn’t care who knows it.

 

On Tuesday he raved that Pittsburgh Public Schools’ finances should be taken over by the state – the same fate the city had suffered during its own economic troubles from 2004-18.

 

The reason Peduto thinks the school should submit to a financial recovery plan overseen by a state appointed board? School Superintendent Dr. Anthony Hamlet is proposing a 2.3% tax increase in 2020 for a reserve fund while Peduto’s municipal government allegedly is managing with a surplus.

 

If the city can manage its finances without a tax increase, wonders Peduto, why can’t the school district?

 

However, the Mayor’s narrative conveniently leaves out a few pertinent facts.

 

Most importantly – during the city’s economic trouble 14 years ago, Pittsburgh Public Schools gave a portion of their tax revenue to the municipal government to help it pay the bills.

 

Now that the city is doing better, school officials are suggesting Peduto should give that tax revenue back to the schools. And that suggestion infuriates the mayor.

 

In addition, it’s not true that Pittsburgh’s 2020 budget includes no tax increase.

 

The city is raising taxes by about 6% to pay for upkeep at its parks. However, since this tax is the result of a referendum approved by the voters, it is being spun as a “no new taxes” budget.

 

The city has a surplus due to construction of new high-end apartments. City Council could have budgeted some of this money to pay for the parks. Instead, leaders like Peduto were too cowardly to take the blame, themselves, and put it out as a question to voters.

 

It is entirely unfair to criticize Pittsburgh Public Schools for raising taxes a smaller degree (2.3%) than the city is (6%).

 

Both entities spend about the same amount annually. In 2020, the city has a proposed $608 million budget, and the schools have a proposed $665.6 million budget.

 

Moreover, there is nothing unfair about school officials asking for the tax revenue back from the city that they generously offered it when the municipality was in need.

 

Now that the city is out of peril (and has been since 2018), it should pay back that money. To be honest, it should do so with 14 years worth of interest – but no one is suggesting that.

 

At least it is time for Pittsburgh to stop leeching off its schools and give this revenue back.

 

The fact that Peduto is whining about something so obviously fair and equitable makes him look like a spoiled child.

 

The same goes for his suggestion of state takeover of district finances.

 

Pittsburgh Public Schools already is audited by the state every year. It is not on the state watchlist for districts in financial distress.

 

District spokeswoman Ebony Pugh said, “There have been no significant issues raised related to how the district conducts its finances.”

 

Peduto just wants the schools to have to endure the same indignity the city did thereby putting municipal leaders in a better light.

 

After all, it was the school district which helped the city – not the other way round. And it was the city that needed the state to take over its finances, not the schools.

 

It was Pittsburgh Public School’s Chief Financial Officer Ronald Joseph who explicitly proposed a take-back of wage tax revenue that was diverted to the city in 2005.

 

City residents pay a 3% wage tax. Of this money, originally 2% went to the schools and 1% to the city.

 

When the city was placed under Act 47 state oversight, the formula was changed to give a quarter percent more to the city from the school’s allotment – thus 1.75% went to the schools and 1.25% went to the city.

 

Pittsburgh left Act 47 in 2018 but the wage tax distribution has remained the same.

 

“Why in the heck can’t the school board balance their budget?” Peduto said. “Where is all this money going?”

 

Answer: Some of it is still going unnecessarily to fill your municipal coffers.

 

Peduto added:

 

“If they are looking to have part of the city’s wage tax, then they should be willing to open the books and let the state come in and do exactly what we had to do through Act 47, which was difficult restructuring for the future. If we didn’t have that, the city would be bankrupt.”

 

So let me get this straight. In order to give back the revenue the schools generously loaned the city, you need a look at their finances? I sure wouldn’t lend you a dollar or else I’d have to show you my tax returns and checking account just to get the loan repaid.

 

Peduto went on:

 

“If they simply say, ‘We’re going to take your revenue to fix our hole,’ and not be the leaders that they were elected to be in making tough decisions like raising taxes, then I have no time for that, absolutely none, and I will fight them in Harrisburg.”

 

How generous! That’s like threatening to go to Mom and Dad to settle your dispute. A real leader would know he was in the wrong and just pay up.

 

This isn’t the first time Peduto has clashed with city schools.

 

He seems to think his role as mayor supersedes that of the school district which operates independently through an elected nine-member board.

 
He said as much in 2018 when district negotiations with the Pittsburgh Federation of Teachers (PFT) threatened to spill over into the first teachers strike in more than 40 years.

 

Peduto wanted to mediate between the teachers and school administrators – a measure Dr. Hamlet patently refused.

 

Peduto said:

 

“They have to remember they’re a board. They’re not a government. They’re no different than the water board or the Port Authority board or the airport board. They’re a board of education. Their job should be solely making sure that kids are getting a good education. When there becomes labor strife in the city, labor strife that could affect the economic development of the city for years to come, they need to move out of the way and let [elected] leaders lead.”

 

Dr, Hamlet said this was a “bargaining process, not a political” one, and that Peduto needed to let administration continue the process of bargaining with the teachers – a process that resulted in a new contract without a strike.

 

The relationship has been chilly even before Hamlet was hired in 2016.

 

In a community where district funding is constantly at risk from unregulated and unaccountable charter schools, Peduto actually presided over a 2014 ribbon cutting ceremony at the Hill House Passport Academy Charter School.

 

 

Charter school costs are one of the largest expenses the district pays annually.

 

 

According to PennLive.com, the district paid $79 million (or about 12% of its budget) in 2017-18 to these institutions which are funded with public tax dollars but privately run.

 
Like many charter schools, the Hill District institution is incredibly segregated. According to ProPublica, 96% of students are children of color. It has no gifted program, offers no AP courses, has no students taking the SAT or ACT test, no calculus classes, no advanced math, no physics, geometry, chemistry or 8th grade algebra courses.

 

In short, this is not the type of school the mayor of a major metropolitan center should be promoting.

 

And Peduto would know that if he had any knowledge of how school systems actually work. Before entering city politics, the Democrat ran a consulting business and served as Chief of Staff to City Councilman Dan Cohen.

 

Since his first successful campaign for mayor in 2013, Peduto has had a history of making bold promises to the Pittsburgh Public Schools that have not always come to fruition.

 

Peduto said he would lobby for additional funding for city schools in Harrisburg but district solicitor Ira Weiss said the mayor never followed through.

 

 

Peduto proposed increasing school revenue by helping to rent out unused school space. That hasn’t happened, either, said Weiss.

 

Peduto suggested increasing student after school programs by working together with the district and others like the YMCA and the Student Conservation Association. While a few such programs do exist, there is no broad collaboration, said Errika Fearby Jones, the executive director of Dr. Hamlet’s office.

 

Peduto’s summer reading program with the city and the Carnegie Library of Pittsburgh likewise never materialized – though the library runs its own program.

 

Moreover, Peduto’s plan to restart the Generations Together program with the University of Pittsburgh to promote cross-generational learning never happened either. Pitt shut down the program in 2002.

 

Curtiss Porter, who served as Peduto’s chief education and neighborhood reinvestment officer during the first year of his administration, blames the problem on a disagreement about who should be in charge.

 

The city and school district had a good working relationship when he was there, he said, but there was “a clear demarcation” between the two bodies, which made it difficult to implement some of Peduto’s ideas.

 
“At critical junctures…the school district made it clear that they were willing partners but that they did not have to bow to the city,” he said. “[They] made it clear the city had no jurisdiction over education.”

 

And that disconnect appears to continue today.

 

Peduto is engaged in an ignorant and arrogant power struggle with city schools that helps no one.

 


 

 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Vulture Voucher Bill Latest in Mike Turzai’s Quest to Please Betsy DeVos in PA

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The best way to help a struggling public school is to cannibalize it.

 

 

At least that’s what Betsy DeVos thinks – and so does her Pennsylvania puppet Mike Turzai.

 

 

The Republican Speaker of the state House is expected to propose a school voucher bill Monday that will treat Harrisburg Schools as nothing more than carrion fit for plunder by school privatization vultures.

 

 

Sure the district is in state receivership after decades of neglect and bad decisions by five members of the elected school board and administrators.

 

 

But instead of helping the school and its students get back on their feet, Turzai proposes siphoning away as much as $8.5 million in state funding set aside for the school’s aide. Alternatively, that money would go to help offset some of the cost of sending Harrisburg students to private or parochial schools if they so desire.

 

 

There are already 612 children living in district boundaries who attend nonpublic schools who would immediately benefit. So even if no additional students decided to take advantage of the program, that’s a $2.5 million cost to cover partial tuition for students the state is not currently paying to educate. If any additional students decided to take advantage of the program, the cost would increase.

 

 

However in lieu of any safeguards to make sure these children fleeing from the public system receive the same quality of services required by state law, Turzai’s bill goes out of its way to protect the vultures!

 

 

Under House Bill 1800, private or parochial schools won’t be held as accountable for how they spend the money they plunder from Harrisburg nor will it force them to enroll all comers like authentic public schools are required to do.

 

 

Specifically, non-public schools would be allowed to take public tax dollars but refuse any students they wished – based on gender, race, religion, even special educational needs.

 

 
It’s bad policy and bad politics.

 

 
Essentially Turzai is proposing we swoop in and tear the district to pieces – for its own good.

 

 

The bill would force state taxpayers to pay for half the cost of the voucher program – essentially making us shell out our hard earned money for two parallel education systems.

 

 

It’s unclear where the other half of the money would even come from that the state is supposed to match.

 

 
Thinking people know this is nonsense on so many levels. If the public schools have problems, there’s no reason to believe school vouchers hold the answer. After all, the best way to save yourself from drowning is to patch up the boat you’re already on. You shouldn’t jump to a lifeboat willy-nilly with no assurance that your escape craft is more seaworthy than the one you’re already sailing on.

 

 

And in fact, there is no evidence that voucher schools are better than authentic public schools.

 

 

Countless academic studies back this up. A recent 25-year meta analysis from Stanford University concluded that school vouchers do nothing to improve student achievement and distract from real solutions that could yield better results.

 

 

A 2018 Study from the University of Virginia found that once you take family income out of the equation, there are absolutely zero benefits of going to a private school. The majority of the advantage comes from simply having money and all that comes with it – physical, emotional, and mental well-being, living in a stable and secure environment, knowing where your next meal will come from, etc.

 

 

A 2018 Department of Education evaluation of the Washington, D.C., voucher program found that public school students permitted to attend a private or parochial school at public expense ended up getting worse scores than they had at public school.

 

 

Their scores went down 10 points in math and stayed about the same in reading.

 

 

The results of these studies were so damaging that school voucher lobbyists no longer even try to make the argument that sending kids to private or parochial schools has academic benefits. Instead they rely on the ideological belief that privatization is always better than public services.

 

 

Turzai is literally proposing legislation on an outdated far right talking point. But his whole plan isn’t exactly fresh. We’ve seen versions of it almost every legislative session.

 

Once Turzai introduces the bill next week, it’s expected that his Republican colleagues who have a majority in both the House and Senate due to grossly gerrymandered districts will vote to pass it. Democratic Gov. Tom Wolf has promised to veto it.

 

While Republicans have the numbers to overturn any veto, it is doubtful they would actually do so. Historically they only need to show DeVos and her billionaire friends like the Koch Brothers that they tried to pass their ALEC-written legislation. They don’t actually have to pass it. In fact, doing so would make them responsible for it and could result in voters – even in such gerrymandered districts – turning against them.

 

After all, school vouchers are incredibly unpopular. Every time the issue has been left to a popular vote, it has been turned down.

 

And Republicans know that. This is just theater to please the wealthy donor class.

 

Unless people stop paying attention. Then they may try to sneak it through.

 

Because there’s a lot more at stake than just disrupting the recovery process at Harrisburg schools.

 

The bill as drafted would only currently apply to Harrisburg – specifically when a receiver is appointed in a school district of the second class located in a city of the third class, within a county of the third class.

 

But all it would take is a receiver to be appointed for the following districts to be affected:

 

Allentown City, Bethlehem Area, Coatesville Area, Easton Area, Erie City, Hazleton Area, Hempfield Area, Lancaster, Penn-Trafford, Reading, Wilkes-Barre Area and York City school districts.

 

So this could easily become a backdoor voucher initiative for our poorest districts to become the next course on the buzzards’ menu.

 

 

But perhaps the strangest turn in this whole concern is Turzai’s apparent ambition.

 

 

He seems to be trying to position himself once again as the next gubernatorial challenger to Democrat Wolf.

 

 

And how is he planning to define that challenge? As a clone of the last dope who tried it – Scott Wagner.

 

 

Republicans don’t seem to get the message. Voters – regardless of political affiliation – care about public schools.

 

 

They ousted Tom Corbett when he slashed school funding. They voted against Wagner in droves. And the best Turzai can think to do is ape these two fools?

 

 

DeVos, herself, is perhaps the most unpopular Education Secretary in history – and that’s even with the stiff competition of Arne Duncan and John King.

 

 

School privatization is a political loser.

 

 

No one wants to violate the separation of church and state just to give private businesses a larger cut of our tax dollars.

 

 

We want equity for our public schools so all our students can learn.

 

 

Why can’t birdbrains like Turzai get that through their skulls?

 

 

Perhaps if they stopped picking through the bones of struggling schools they would.

 

 


If you live in Pennsylvania, please click here to ask your state representative to vote against the bill.


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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NAEP Test Scores Show How Stupid We Are… To Pay Attention to NAEP Test Scores

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Brace yourselves!

 

America’s NAEP test scores in 2019 stayed pretty much the same as they were in 2018!

 

And the media typically set its collective hair on fire trying to interpret the data.

 

Sometimes called the Nations Report Card, the National Assessment of Educational Progress (NAEP) test is given to a random sampling of elementary, middle and high school students in member countries to compare the education systems of nations.

 

And this year there was one particular area where US kids did worse than usual!

 

Our scores went down in 8th grade reading!

 

To be honest, scores usually go up or down by about one or two points every year averaging out to about the same range.

 

But this year! Gulp! They went down four points!

 

FOUR POINTS!

 

What does that mean?

 

Absolutely nothing.

 

They’re standardized test scores. They’re terrible assessments of student learning.

 

You might as well compare the relative body temperatures of randomly selected students and wonder why we aren’t bridging the body warmth gap with the somber hummingbird! I mean it has an average  temperature of 114 F! And the best we can do is a measly 98.6 F! Why won’t enough kids get a fever for America!?

 

If test scores have any meaning at all – it’s parental wealth. Rich kids tend to score higher than poor kids. That’s partially because of the inequality of resources each receive, but also because of racial, cultural and economic bias embedded in the questions.

 

So the NAEP shows us what any study of parental income would show. America has a lot of poor kids and underfunded schools.

 

Thanks, NAEP! There’s no way we could ever have figured that out without you!

 

But having this information come to us via test scores allows us to deflect from the real problem and instead continually blame the victim.

 

Why can’t these poor kids from impoverished schools score as well as kids from richer countries with more well-funded schools?

 

I can’t imagine!

 

Typically politicians used the results to push their pet policies.

 

Education Secretary Betsy DeVos used the scores to wash her hands of the entire public education system. I know – isn’t her job to safeguard public schools? It’s like a zoo keeper complaining that the penguins aren’t bringing in enough visitors and then refusing to feed them.

 

DeVos proposed we improve test scores by cutting $4.8 billion from public schools in 2020 and instead pumping $5 billion to a tax credit school voucher scheme that props up private schools.

 

I know that sounds dumb, but before you judge her, realize she also proposed cutting federal funding for afterschool programs, teacher professional development, student support and enrichment programs.

 

So there.

 

Education Blogger Peter Greene claims that this move is based on a reading comprehension problem the Education Secretary is having, herself.

 

She says that the NAEP results mean that 2/3 of American students read below grade level. However, Greene points out that she is conflating two different things – grade level proficiency and NAEP proficiency.

 

Here’s what the NAEP wrote:

 

“The NAEP Proficient achievement level does not represent grade-level proficiency, but rather competency over challenging subject matter. NAEP Achievement levels are to be used on a trial basis and should be interpreted and used with caution.”

 
Which kind of begs the question of why we need these scores in the first place.

 

There is much clearer data out there.

 

A study by the Center on Budget and Policy Priorities concluded that 29 states spent less per student in 2015 than they had before the Great Recession.

 

And the federal government has done little to help. Since 2011, spending on major K-12 programs – including Title I grants for underprivileged students and special education – has been basically flat.

 

According to the Economic Policy Institute in Washington, today’s public schools employ at least 250,000 fewer people than they did before the recession of 2008–09. Meanwhile enrollment has increased by at least 800,000 students.

 

So to ensure our students had the same quality of service children received only a decade ago, we’d need to hire almost 400,000 more teachers!

 

That’s how you cut class size down from the 20, 30, even 40 students packed into a room that you can routinely find in some districts today.

 

If we looked at realities like these instead of test scores – which at best provide us data at several removes – we might actually be motivated to reach solutions.

 

For instance, the U.S. is one of the only countries in the world – if not probably the ONLY country – that funds schools based largely on local taxes. Other developed nations either equalize funding or provide extra money for kids in need. In the Netherlands, for example, national funding is provided to all schools based on the number of pupils enrolled. But for every guilder allocated to a middle-class Dutch child, 1.25 guilders are allocated for a lower-class child and 1.9 guilders for a minority child – exactly the opposite of the situation in the U.S.

 

If we want to compare the US to other countries, this is a perfect place to start.

 

But a focus on test scores obscures the differences.

 

Virtually all of the top scoring countries taking these exams have much less child poverty than the U.S. If they had the same percentage of poor students that we do, their scores would be lower than ours. Likewise, if we had the same percentage of poor students that they do, our scores would go through the roof! We would have the best scores in the world!

 

These scores just mirror back to us our child poverty rate – that more than 1/3 of our students live below the poverty line and more than half of public school students qualify for free or reduced lunches.

 

But this myopic focus on standardized tests also blinds us to the ways our system is superior to that of many other countries.

 

We do something that many international systems do not. We educate everyone! Foreign systems often weed children out by high school. They don’t let every child get 13 years of grade school (counting kindergarten). They only school their highest achievers.

 

So when we compare ourselves to these countries, we’re comparing ALL of our students to only SOME of theirs – their best academic pupils, to be exact. Yet we still hold our own given these handicaps!

 
This suggests that the majority of problems with our public schools are monetary. Pure and simple.

 

At least House Democrats passed a Labor-HHS-Education funding bill to increase public school funding by $3.5 billion. Even if it were somehow passed by the Republican controlled Senate, that’s a drop in the bucket after decades of neglect – but it’s something!

 

It’s certainly better than DeVos who claims that funding somehow doesn’t matter for public schools – only for her pet charter and voucher schools.

 

A 2018 review by Northwestern University found that in 12 out of 13 studies increased spending had a positive effect on student outcomes. And that result has been verified by studies since then in California, Texas, Wisconsin and other states.

 
Money makes a difference.

 

Money spent on students – not more testing.

 

So why the drop in this year’s 8th grade reading scores?

 

Who knows? It could be a spike in the rate or effect of child poverty in the middle school years.

 

It could be the impact of decades of high stakes testing on middle school curriculum – narrowing what is taught and muscling out authentic instruction.

 

Frankly it doesn’t matter because the data is suspect.

 

Standardized testing will never give us an accurate picture of what is going on with our students or our schools.

 

And until we, as a society, finally realize that and focus on things that actually matter, we will continue to fail the only test that matters – how well we provide for our children.

 

 


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Charter School’s Two Dads – How a Hatred for Public School Gave Us School Privatization

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If bad ideas can be said to have fathers, then charter schools have two.

 

And I’m not talking about greed and racism.

 

No, I mean two flesh and blood men who did more than any others to give this terrible idea life – Minnesota ideologues Ted Kolderie, 89, and Joe Nathan, 71.

 

In my article “Charter Schools Were Never a Good Idea. They Were a Corporate Plot All Along,” I wrote about Kolderie’s role but neglected to mention Nathan’s.

 

And of the two men, Nathan has actually commented on this blog.

 

He flamed on your humble narrator when I dared to say that charter schools and voucher schools are virtually identical.

 

I guess he didn’t like me connecting “liberal” charters with “conservative” vouchers. And in the years since, with Trump’s universally hated Billionaire Education Secretary Betsy Devos assuming the face of both regressive policies, he was right to fear the public relations nightmare for his brainchild, the charter school.

 

It’s kind of amazing that these two white men tried to convince scores of minorities that giving up self-governance of their children’s schools is in their own best interests, that children of color don’t need the same services white kids routinely get at their neighborhood public schools and that letting appointed bureaucrats decide whether your child actually gets to enroll in their school is somehow school choice!

 

 

But now that Nathan and Kolderie’s progeny policy initiative is waning in popularity, the NAACP and Black Lives Matter are calling for moratoriums on new charters and even progressive politicians are calling for legislative oversight, it’s important that people know exactly who is responsible for this monster.

 

And more than anyone else, that’s Kolderie and Nathan.

 

Over the last three decades, Nathan has made a career of sabotaging authentic public schools while pushing for school privatization.

 

He is director of the Center for School Change, a Minneapolis charter school cheerleading organization, that’s received at least $1,317,813 in grants to undermine neighborhood schools and replace them with fly-by-night privatized monstrosities.

 

He’s written extensively in newspapers around the country and nationwide magazines and Websites like the Huffington Post.

 

But it all started for Nathan back in 1987 when he happened to see an advertisement on TV, according to Ember Reichgott, the former Minnesota State Senator who originally proposed the first charter school bill.

 

The ad was called “Ah, Those Marvelous Minnesota Schools,” writes Reichgott.

 

 

It dared to dispute the Reagan administration’s propaganda hit piece “A Nation at Risk” which painted public schools as failures that needed to be disrupted and replaced.

 

 

Well Nathan wasn’t about to take it.

 

According to Reichgott’s book, “Zero Chance of Passage: The Pioneering Charter School Story”, Nathan:

 

“…talked with the Minneapolis Foundation, among others, about what they might do. ‘The Minneapolis Foundation decided it was time to introduce into Minnesota some pretty radical ideas,’ said Nathan. So plans got underway for the Itasca Seminar, with a focus on public education.”

 

This seminar was instrumental in turning the tide in Minnesota that ultimately birthed the most infectious school privatization virus on an unwitting nation.

 

Nathan had always been a fan of transferring public services to private control. In fact, he had just finished lobbying for privatization in the National Governors Association. Now back in Minnesota, he joined together with Kolderie, a former journalist and self professed “policy entrepreneur” who had been pushing for the same thing since at least the 1970s.

 

Their ideology – expounded by southern segregationists and people like the divisive economist Milton Friedman – was extremely unpopular, but they were about to get a break.

 

In 1988, Albert Shanker, the union hero President of the American Federation of Teachers, had just given an infamous speech to the National Press Club praising the idea of a new concept called “charter schools.”

 

However, he wasn’t talking about the modern idea of a charter school. Shanker was building off an idea originally proposed by Ray Budde, a little-known professor of education from upstate New York.

 

It was Budde who actually coined the term “charter school.” He thought school boards could offer “charters” directly to teachers allowing them to create new programs or departments.

 

Shanker liked this idea because of his own teaching experience in East Harlem where administrators constantly got in the way of educators. “One of the things that discourages people from bringing about change in schools is the experience of having that effort stopped for no good reason,” he said.

 

Nathan saw in this an opportunity and invited Shanker to speak at the Itasca Seminar. His goal was to hide his side’s privatization aims under the shadow of progressive unionism.

 

 

And it worked. In fact, if you look up the history of charter schools, you’ll STILL find people who insist they were invented by Shanker.

 

 

With this cover, the Citizen’s League, which was underwritten by the Minneapolis Foundation, was able to pass a bill requiring mandatory statewide standardized testing. The bill, authored by the Minnesota Business Partnership put forth the evaluation system necessary to demonize the public schools and prepare the way for the ultimate goal – privatization.

 

 

In 1991, the same forces passed the nation’s first charter school bill.

 

 

But let’s be clear on this – the charter schools created in this bill and the “charter schools” talked about by Shanker and Budde are very different concepts.

 

 

Nathan and Kolderie wrote the majority of the bill and they stripped out almost everything any educator had ever proposed.

 

 

According to Budde’s conception, charters would be authorized by school districts and run by teachers. Central office administrators would step out of the way, but charter schools would still operate within collective bargaining arrangements negotiated between districts and unions.

 

 

Instead, Nathan and Kolderie proposed that schools be authorized by statewide agencies that were separate from local districts. The state had the power, not communities or their elected representatives. That meant charters could be run not just by teachers but also by entrepreneurs. And that’s almost always who has been in charge of them ever since – corporations and business interests.

 

 

This was the goal Friedman and the deregulators had been fighting for since the 1950s finally realized – almost the same goal, it should be noted, as that behind school vouchers.

 

 

From the start, this was a business initiative. Competition between charters and authentic public schools was encouraged. And that included union busting. Thus charters were free of all the constraints of collective bargaining that districts had negotiated with their unions. The needs of workers and students were secondary to those of big business and the profit principle.

 

 

Shanker eventually realized this and repudiated what charter schools had become. But by then the damage was done.

 

 

Shanker hadn’t created charter schools. He had suggested something very different. And that suggestion was used to help usher in a concept that has haunted our public school system ever since.

 

 

Kolderie had been working on it for two decades, and with Nathan’s help it became a reality.

 

 

With the backing of the American Legislative Exchange Council (ALEC), the two men went on to push a version of this same bill from legislature to legislature. Kolderie even boasts of helping 25 other states enact charter school legislation.

 

 

Today 43 states are afflicted with charter schools enrolling about 6% of the students in the country. An additional 4% go to private and parochial schools some of which are funded with school vouchers.

 

 

This distinction between charter and voucher schools is important to political pundits, but it’s really just hair splitting.  It’s like saying vanilla chocolate swirl ice cream is nothing like chocolate vanilla swirl.

 

 

Consider: charter schools are privatized schools paid for with taxes. Voucher schools are private schools paid for with money diverted from taxes.

 

 

False distinctions like these are another way of managing public perception just like the pettifogging contrast between for-profit and non-profit charter schools. Again they’re pretty much the same thing. They can each cut services to students and pocket the left overs – the only difference is which loopholes they have to jump through and how they designate their tax status.

 

 

They are both the flowering of the deregulationist dream of destroying public education and replacing it with business-operated schools. They are attempts to destabilize, defame and destroy public education.

 

 

And though the plan has worked for decades, here’s hoping that the current political pause represents the beginning of a change of course.

 

 

Kolderie and Nathan’s monster has devoured too many schools and with them too many children’s hopes of an excellent education.

 

 

It’s time to pin the monster down with facts and shove a stake through its heart.

 


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Charter Schools Were Never a Good Idea. They Were a Corporate Plot All Along

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America has been fooled by the charter school industry for too long.

 

The popular myth that charter schools were invented by unions to empower teachers and communities so that students would have better options is as phony as a three dollar bill.

 

The concept always was about privatizing schools to make money.

 

It has always been about stealing control of public education, enacting corporate welfare, engaging in union busting, and an abiding belief that the free hand of the market can do no wrong.

 

Charter schools are, after all, institutions run privately but paid for with tax dollars. So operators can make all decisions behind closed doors without public input or accountability. They can cut student services and pocket the difference. And they can enroll whoever the heck they want without providing the same level of education or programs you routinely get at your neighborhood public school.

 

In essence, charter schools are a scheme to eliminate the public from public education paid for at public expense.

 

 

But whenever anyone brings up these facts, they are confronted by the bedtime story of Albert Shanker and his alleged advocacy of the industry.

 
So grab your teddy bear and put on your jammies, because here’s how it goes:

 
Once upon a time, hero president of the American Federation of Teachers (AFT) Al Shanker had an idea. He wanted to make laboratory schools where educators would be freed of regulations so they could experiment and find new pedagogies that worked. Then these innovations could spread to the rest of the school system.

 

One day in 1988, he gave a speech at the National Press Club and subsequently published a column in the New York Times advancing this idea.

 

And he called it – Dum, Dum, DUM! – charter schools!
The second act of the story opens in the mid-1990s when Shanker had largely turned against the idea after it had been co-opted by business interests.

 

He dreamed of places where unionized teachers would work with union representatives on charter authorizing boards, and all charter proposals would include plans for “faculty decision-making.” But instead he got for-profit monstrosities that didn’t empower workers but busted their unions.

 

If only we’d stuck with Shanker’s bold dream!

 

Or at least, that’s how the story goes.

 

Unfortunately it’s just a story.

 

It’s not true. Hardly a word of it.

 

Shanker did not come up with the idea of charter schools. He wasn’t part of the plan to popularize them. He didn’t even come up with the term “charter school.”

 

If anything, he was a useful patsy in this stratagem who worked tirelessly to give teachers unions a seat at the table where he then discovered they were also on the menu.

 

The real origin of charter schools goes back decades to at least the 1950s and the far right push for deregulation.

 

When the afterglow of the atomic bomb and the allied victory in Europe had faded, there was political backlash at home to roll back the amazing economic successes of the New Deal. Social security, strong banking regulations, deposit insurance, a minimum wage, job programs that put millions of people to work – all of that had to go in favor of right wing ideology.

 

A cabal of mostly wealthy, privileged elites wanted to do away with these policies in the name of the prosperity it would bring to themselves and their kind. They claimed it would be for the good of everyone but it was really just about enriching the already rich who felt entitled to all economic goods and that everyone else should have to fight over the crumbs.

 

Never mind that it was just such thinking that burst economic bubbles causing calamities like the Great Depression in the first place and made the conditions ripe for two world wars.

 

Show me the money!

 

However, this really didn’t go anywhere until it was combined with that most American of institutions – racism.

 

Even before the Supreme Court’s 1954 Brown vs. Board decision struck down school segregation, many white people said they’d never allow their children to go to school with black children.

 

In the South, several districts tried “freedom of choice” plans to allow white kids to transfer out of desegregated schools.

 

In 1952 and ’57, governments in two states – Georgia and Virginia – tried out what became known as the “private school plan.” Georgia Gov. Herman Talmadge and community leaders in Prince Edward County, Virginia, tried to privatize public schools to avoid any federal desegregation requirements. Each student would be given a voucher to go to whatever school would enroll them – segregated by race.
The plan was never implemented in Georgia and struck down by the federal government in Virginia after only one year as a misuse of taxpayer funds.

 

But these failed plans got the attention of one of the leading deregulation champions, economist Milton Friedman.

 

He sided with the segregationists citing their prejudice and racism as merely “market forces.”

 

In his seminal 1955 tract, “The Role of Government in Education,” he wrote:

 

“So long as the schools are publicly operated, the only choice is between forced nonsegregation and forced segregation; and if I must choose between these evils, I would choose the former as the lesser. Privately conducted schools can resolve the dilemma … Under such a system, there can develop exclusively white schools, exclusively colored schools, and mixed schools.”

 

Throughout the 1970s, school voucher proposals were widely understood as a means to preserve school segregation, according to education historian Diane Ravitch. But they couldn’t gain any traction until privatizers came up with a new wrinkle in the formula – the charter school.

 

Charter schools are really just school vouchers with more money and regulations.

 

In the case of vouchers, we use tax dollars to pay for a portion of student enrollment at private and parochial schools. In the case of charters, we use tax dollars to pay for all of a student’s enrollment at a school that is privately managed. The only difference is how much taxpayer money we give to these privatized schools and how much leeway we give them in terms of pedagogy.

 

Charter schools can do almost whatever they want but they can’t blatantly teach religion. Voucher schools can.

 

Other than that, they’re almost the same thing.

 

In order to get the public to support school privatization, Friedman thought we’d need to convince them that they didn’t need the burden of self-government. This was especially true of minorities.

 

In his 1981 book Free to Choose, Friedman and his wife Rose suggested the necessity of convincing black voters that they didn’t need Democracy. School privatization could be pitched as a system that would “free the black man from dominion by his own political leaders.”

 

The opportune moment came in 1983 with the publication of the Reagan administration’s propaganda piece A Nation at Risk. Using bogus statistics and outright lies, the report painted our public school system as a failure and set up the false urgency that school deregulationists needed.

 

From this point forward, a series of supply side lawmakers, policy wonks, economists, billionaires and CEOs came out of the woodwork to push for school privatization which culminated in the first charter school law in 1991 in Minnesota.

 

In the middle of all this tumult came Shanker’s National Press Club speech in 1988.

 

Ronald Reagan was still in office and it’s hard to overstate the threat he posed to unions having infamously fired more than 11,000 striking air traffic controllers.

 

Shanker was trying to ride the tide of public opinion in favor of deregulation and privatization. He accepted the bogus criticisms of schools in A Nation At Risk and offered to restructure schools to fix the problem. Like so many union leaders after him, Shanker gave away much of the power of his people-driven movement so as not to come across as obstructionist. He didn’t think teachers unions could oppose the rising tide of privatization without offering innovations of their own.

 

It’s true that he called these reforms “charter schools” but he didn’t invent the term. He borrowed it from a little-known Massachusetts educator, Ray Budde, who meant by it something very different from what it has become. Budde thought school boards could offer “charters” directly to teachers allowing them to create new programs or departments.

 

Shanker’s proposal wasn’t nearly the first time a public figure had suggested restructuring public schools.

 

In the late 1960s after helping provide justification for school desegregation, sociologist Kenneth Clark advocated for alternative school systems that could be run by groups as diverse as universities to the Department of Defense.

 

Shanker’s contribution was not nearly as powerful as subsequent apologists have claimed. He was one voice among many. Though his comments were useful to the deregulators, they ignored everything of substance he had said beyond the myth that he supported their efforts at school privatization.

 

According to journalist Rachel Cohen, the true architect of the charter school concept as it appears today wasn’t Shanker, Budde or Clark. It was Minnesota “policy entrepreneur” Ted Kolderie.

 

He was at the heart of the issue pushing for school privatization from the 1970s through the 1990s.

 

Throughout the 1970s, Kolderie lobbied for a plethora of ways for private industry to provide government services – including education – through an initiative known as Public Service Options (PSO). By 1981, the focus narrowed almost exclusively to education.

 

In several reports, he blamed the bogus failure of public schools on the democracy of the school boards. Though he didn’t use the term “charter school,” his conception was essentially the same as the modern charter school: independent schools accountable only through market forces and a set of contractual obligations. He thought they could be run by almost anyone – universities, corporations, nonprofits— even public school districts – if state law could be amended to allow it.

 

That’s pretty much a charter school – a privately run learning institution that’s publicly financed.

 

Why doesn’t Kolderie get the credit? Why the emphasis on Shanker who had very little to do with what ultimately became law?

 

Because Kolderie and others wanted to hide behind the union. They wanted their policy to have a friendlier public image than that of a shadowy puppet master.

 

Shanker walked right into their trap.

 

He even agreed to give another speech in favor of charter schools in October 1988 at the Minneapolis Foundation’s annual Itasca Seminar for political and business leaders.

 

With continued lobbying from the corporate sector and right wing ideologues, three years later the state was the first to pass a charter school law.

 

And the die was cast.

 

Sure charter school cheerleaders like to give Shanker the credit today, but the legislation that was eventually passed and funneled to other states through the American Legislative Exchange Council (ALEC) had little resemblance to anything Shanker said.

 

It was the deregulation and privatization model first conceived in the 1950s, funneled through Friedman and now Kolderie.

 

And make no mistake – the overall plot wasn’t simply to enact charter schools. That was merely the foothold that enabled subsequent school voucher bills and tax scholarship plans (vouchers lite). The end game was made clear by Friedman time and again – the complete destruction of public schools.

 

While speaking to rightwing lawmakers at a 2006 ALEC meeting, Friedman explained that school privatization was always about “abolishing the public school system.”

 

Here is an excerpt from Friedman’s ALEC speech:

 

“How do we get from where we are to where we want to be—to a system in which parents control the education of their children? Of course, the ideal way would be to abolish the public school system and eliminate all the taxes that pay for it. Then parents would have enough money to pay for private schools, but you’re not gonna do that. So you have to ask, what are politically feasible ways of solving the problem. The answer, in my opinion, is choice…”

When Minnesota proposed the first charter school law, the state teachers union fought against it. But tellingly Shanker refused to speak out during legislative debates.

 

And this was due in part to the rise of the neoliberals.

 

School privatization was the brainchild of the far right. But as the ‘80s gave way to the ‘90s, so dawned a new type of political figure – the social progressive with distinctly right wing economic views.

 

In 1989 when the Democratic Leadership Council (DLC) named Bill Clinton as chairman, it also founded its own think tank—the Progressive Policy Institute. Kolderie worked closely with the DLC and even wrote its first policy paper on school privatization.

 

Clinton was an immediate convert, embracing Kolderie’s proposals as he traveled around the country making speeches even though he knew it was unpopular with teachers unions. Clinton ruffled so many feathers that Shanker, himself, commented, “It is almost impossible for us to get President Clinton to stop endorsing [charters] in all his speeches.”

 

Though the first charter school law came a year later, in 1990 Wisconsin passed the first school voucher program. Since it was pushed through with mostly Republican support, this provided cover for neoliberal charter supporters. Though there was little difference between the two policies, neoliberals could distinguish themselves by criticizing school vouchers while endorsing their ideological cousins the charter schools.

 

So we had the two major political parties both supporting different flavors of the same school privatization.

 

It allowed Democrats to stop supporting more funding for social programs and schools while weakening the main driver of such policies – labor unions. This allowed the neoliberals to be economically as conservative as their “adversaries” across the aisle while publicly pretending to support progressivism.

 

Today, there are charter schools in 43 states and the District of Columbia educating nearly three million students.

 

This does not now – and never did – represent any ideal offered by Shanker or unions.

 

His dream of teacher-run schools as laboratories of innovation may or may not have merit, but not at the expense of making different rules for different schools. Where regulation is important, it is important for all schools. Where it is too restrictive, all schools should be freed from its requirements. All teachers should be allowed to innovate and take a leadership role in their schools.

 

When Shanker spoke about “charter schools,” he was not a visionary. He was leading us down a dead end. He was foolishly offering an olive branch to an inferno. That doesn’t mean he started the blaze or even that it was his idea.

 

Yet even now you can read propaganda that says otherwise on the AFT’s own Website – “Restoring Shanker’s Vision for Charter Schools” by Richard D. Kahlenberg and Halley Potter. It’s funny how Potter, a former charter school teacher, and Kahlenberg, a senior fellow at the Century Foundation – which loves charter schools – both want to keep the happy face on an ugly idea. And sad that one of the largest teachers unions can’t face up to one of its heroes biggest mistakes.

 

If charter schools have a face, it should be Kolderie’s or Friedman’s – or perhaps it should be the industry’s most famous modern champion Betsy Devos.
Charter schools are no progressive dream.

 

They are the corporate paradise of spending tax dollars with zero accountability, zero transparency and as much deregulation as possible. They are the continued destabilization of public education in the knowledge that the edifice cannot stand without support indefinitely.

 

Public education will crumble and fall just as the architects of school privatization always knew it would.

 

Unless we take a stand and take back our power.

 

To do that we need to understand where charter and voucher schools came from and who is responsible.

 

Charter schools do NOT represent a good idea that was perverted by the corporate world. It is an essentially bad policy that should be abolished immediately.

 


NOTE: This article owes a debt to the reporting of Rachel Cohen.


Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Inside Bill Gates’ Hubris: Propaganda to Make America Neoliberal Again

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Once upon a time, the world was run by rich men.

 

And all was good.

 

But then the world was conquered by other rich men.

 

And that is something the first group of rich men could not allow.

 

That is the reason behind Netflix’s new film “Inside Bill’s Brain: Decoding Bill Gates.”

 

The three-part documentary goes live on Sept. 20. But the film’s aims are clear from the trailer.

 

It’s a vanity project about Bill Gates, the second richest man in the world.
By examining his mind and motivations, director and executive producer Davis Guggenheim will show us how Gates deserves his billionaire status and that we should allow him to use his philanthrocapitalist ventures to rule the world.

 

After all, shouldn’t the best and richest among us make all the decisions?

 

It’s a cry for oligarchy in an age of idiocracy, a love letter to neoliberalism in a time of neofascism.

 

The pity is that Donald Trump and the “Make America Great Again” crowd have goose stepped all over their new world order.

 

But instead of showing the world why we need to return to democratic principles, strengthen the common good and empower the people to govern themselves, some would rather continue the same plutocracy just with a different set of plutocrats at the wheel.

 

In the days of Obama, the Bushes and Clinton, it wasn’t membership in the same political party that defined the ruling class. It was holding the same ideology.

 

It’s not that neoliberals were so much wiser, ethical or empathetic than Trump. They just kept their greed a secret or tried to make it seem a virtue. They told better lies and didn’t incite as much violence on our shores, and they were better at manipulating markets to make themselves richer while keeping the rest of us relatively poorer.

 

The MAGA insurgents are also rich men, but their greed is transparent. They lie and no one expects them to tell the truth. They can freely dismantle the social safety net because they stoke our prejudices and keep us fighting over race, gender and abortion so much we forget they’re robbing us blind. And when the market crashes, they don’t have to care because they’ve stolen everything of value and can weather the economic depression that will destroy the nation.

 

Neofacism is certainly worse – but it’s only a difference of degree, not of kind.

 

It’s no wonder then that the neoliberals want to make us nostalgic for their brand of simmering destruction instead of Trump’s rapid boil disasters.

 

And Gates is the perfect poster child for old style neoliberalism.

 

He’s the former CEO of Microsoft and – together with his wife – the founder of the Bill and Melinda Gates Foundation.
In the trailer, Gates confides that his deepest fear is that one day his brain will “stop working.”

 

Gates is a “multiprocessor” says his wife Melinda. “He will be reading something else but then processing at the same time. It’s chaos!”

 

Gates “thrives on complexity,” Melinda says. “He makes a framework in his mind, then he starts slotting in the information. If something doesn’t line up, he gets really frustrated.”

 

“It’s scary,” says Melinda. “But when Bill stills himself, he can pull ideas together that other people can’t see.”

 

Thus we gain a picture of a brilliant man striding over a world populated by intellectual inferiors. How foolish we would be to question his authority!

 

And since his intelligence has enabled him to hoard more money than almost anyone else in the world, why shouldn’t we let him use this economic power to change it for our benefit?

 

It’s truly one of the most patronizing, paternal and insulting pieces of propaganda I’ve ever seen in my life. And that includes Guggenheim’s previous movies.

 

Guggenheim is, after all, the man behind the most notorious propaganda film of modern times, “Waiting for Superman.” Back in 2010, he popularized the school privatization of Bill Clinton, George W. Bush and Barack Obama. He made charter schools cool until Betsy DeVos came along and made them uncool again.

 
Though I can’t imagine what could possibly be cool about for-profit schools run by appointed bureaucrats that can discriminate against students in enrollment, skimp on special education services and cut academic programs for students while pocketing the savings! All while gobbling up funding for the public schools that try to educate everyone!

 
More recently, he tried to pull the same sleight of hand for education technology firms in 2013 with the film “Teach,” but by then no one was really paying attention to him.

 

 

And for all that time his ventures have been backed by the richest neoliberals out there – Netflix CEO Reed Hasgtings, Amazon founder and CEO Jeff Bezos, eBay founder Jeff Skoll, and Salman Khan of Khan Academy.

 

 

Sure these folks are usually identified as Democrats, but their philosophy is completely in line with The Walton Family Foundation, Charles Koch, Walden Media (run by creationist Philip Anschutz), and lobbying groups such as the Lumina Foundation, the New American Foundation, and others.

 

Oh! And let’s not forget Bill Gates, himself, who has bankrolled a number of Guggenheim’s projects including “Waiting for Superman.”

 

It’s no wonder Guggenheim is making a fawning tribute to Gates. He owes the man!

 

It’s time to pay back his sugar daddy with what he does best – agitprop public relations.

 

Yes, Gates is a very intelligent person.

 

But he is also a very stupid one.

 

When it comes to computers, few people can beat him. But like so many overprivileged people, he takes excellence in one area to mean excellence in all areas.

 

And that’s just not how things work.

 

The ancient Greek philosopher Socrates famously bragged that he was the wisest person in Athens – not because he knew so much more than everyone else but because he was the only person who knew that he didn’t know anything.

 

Gates could have learned something from that humility, because it’s the trait he is most lacking.

 

Take public education.

 

No one has had a greater negative impact on public schools than Gates. With his so-called philanthropic contributions, he has steered the course of education policy away from research-based pedagogy to a business-minded approach favored by corporate raiders.

 
He didn’t come up with Common Core State Standards, but he did bankroll them. He bribed the state and federal government to force their schools to adopt the same or similar academic standards for all students. Not good standards. Not standards developed by classroom teachers, psychologists or experts. But standards created by the standardized testing industry.

 

 

The result has been more high stakes standardized tests, narrowing the curriculum, shrinking education budgets for the poor and minorities, and an increase in developmentally inappropriate approaches to education. Nearly every parent with a school age child will tell you horror stories of attempting to do homework with their children and having to relearn basic math and English skills just to untwist the needlessly complex knot that children are expected to unsnarl in order to grasp the bare basics of academia.

 

 

Gates poured billions of dollars into that failed initiative, spent hundreds of millions of dollars for development and promotion and influenced trillions of taxpayer dollars to be flushed down the drain on it. All to no avail.

 

But it’s not his only education policy failure.

 

Gates now admits that the approximate $2 billion he spent pushing us to break up large high schools into smaller schools was a bust.

 
Then he spent $100 million on inBloom, a corporation he financed that would quietly steal student data and sell it to the corporate world. However, that blew up when parents found out and demanded their children be protected.

 

 

He also quietly admits that the $80 million he spent pushing for teachers to be evaluated on student test scores was a mistake. However, state, federal and local governments often still insist on enacting it despite all the evidence against it. Teachers have literally committed suicide over these unfair evaluations, but it hasn’t stopped Gates from continuing to experiment on the rest of humanity with his money.

 

 

And he’s still at it.

 

His new plan has been to spend $1.7 billion over five years to develop new curriculums and networks of schools, use data to drive continuous improvement, and give out grants to high needs schools to do whatever he says.

 

There’s nothing wrong with someone wanting to help improve public schools. But the best way to do that is to listen to the people most knowledgeable and invested and then give them the tools they need to succeed.

 

But Gates doesn’t play that way. He reads up on a subject and then comes up with his own harebrained schemes.

 

“It would be great if our education stuff worked, but that we won’t know for probably a decade,” he said during a speech at Harvard in 2014.

 

Lots of people know, Bill. Teachers, students, parents, psychologists, professors. You just won’t listen to us.

 

You just insist the rest of us listen to you despite the fact that you have no idea what you’re talking about.

 

You’re rich and you think that makes you better than us.

 

And Guggenheim’s documentary purports to support this position by reference to Gates’ incredible brain.

He is a smart guy. No one would really contradict it.

 

He was a National Merit Scholar who scored a 1590 out of 1600 on his SATs. But he also comes from a very privileged upbringing.

 

He didn’t grow up on the mean streets of urban America while attending a neighborhood public school. He went to an elite preparatory school since he was 13.

 

At Harvard he wasn’t a polymath. He excelled in subjects he cared about, but neglected others that weren’t immediately interesting. According to a college friend:

 

“Gates was a typical freshman in many ways, thrown off pace by the new requirements and a higher level of competition. He skipped classes, spent days on end in the computer lab working on his own projects, played poker all night, and slept in a bed without sheets when he did go
 to bed. Other students recall that he often went without sleep for 18 to 36 hours.”

 

Gates was no genius. He earned good grades in the subjects he liked and significantly less so in classes he didn’t. Nor was his heart in his studies. Gates joined few college activities unless someone dragged him off to a party.

 

School was of little interest to him. He dropped out of Harvard before getting a degree to start his computer software company.

 

Imagine how privileged you have to be to feel empowered to do that!

 

Nothing much was at stake for him at school so he could do whatever he liked with little to no real life consequences.

 

You want to decode Bill’s brain? Look at his family’s wealth. Look at his upbringing. Look at his medical records.

 

But the moral of the story of Bill Gates is not that rich elites should rule the world.

 

It is that everyone – EVERYONE – should practice humility and not deign to think they have all the answers.

 

It is a paean to the need for collaboration to solve problems, the need to listen to all voices and decide the best course together.

 

And more than anything it is a desperate cry for democracy and social goods – not to defeat Trump through Gates’ example – but to lead to real human flourishing by smashing through the fallacies supporting Trump and Gates together.

 

 

 


 

Like this post? I’ve written a book, “Gadfly on the Wall: A Public School Teacher Speaks Out on Racism and Reform,” now available from Garn Press. Ten percent of the proceeds go to the Badass Teachers Association. Check it out!

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Who’s Trading Public School Funding for a Tax Credit?

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Ever wonder why our roads and public school buildings are crumbling?

 

Ever wonder why schools can’t afford books, buses and nurses?

 

Ever wonder why classroom teachers are forced to buy paper, pencils and supplies for their students out of pocket?

 

Because businesses like Giant Eagle, American Eagle Outfitters, and Eat’n Park aren’t paying their fair share.

 

It’s a simple concept – you belong to a society, you should help pay for the roads, bridges, schools, etc. that everyone needs to keep that society healthy.

 

After all, as a stockholder, CEO or business owner, you directly benefit from that society. If it didn’t exist, you wouldn’t have nearly as many customers – if any.

 

Many of us learned this kind of stuff in kindergarten or grade school.

 
But ironically programs that allow businesses to avoid paying their fair share are being used to short change many of those same kindergarten and grade schools.

 

In Pennsylvania, one such program is called the Educational Improvement Tax Credit (EITC), and everyone from local banks to Duquesne Light to UPMC healthcare providers are using it to lower their taxes while stealing from the public school cookie jar.

 
Here’s how it works.

 
If you expect a tax bill of $X at the end of the year, you can donate that same amount to the state for the purpose of helping parents pay off enrollment at a private or religious school for their children. Then you get between 75-90% of that donation back.

 

So if your tax bill is $100 and you donate $100, you can get back $90 – reducing your total tax bill to a mere 10 bucks.

 

Heck! Since this money is classified as a “donation” you can even claim it on your taxes and get an additional refund – even to the point where you end up making money on the deal! Pennsylvania even allows a “triple dip” – so you get the EITC tax credit, a reduction in your taxable income, and a reduction in your federal taxable income. We actually pay you to shortchange us on your taxes!

 

Now I’m oversimplifying a bit since you can only use the EITC for up to $750,000 a year, but it’s still a sweet deal for businesses. It just really hurts nearly everyone else because it reduces the state’s general fund – by $124 million last year, alone.

 

When we give away hundreds of millions of dollars every year to religious and parochial schools, we have less money to spend on public schools, roads and all other services that benefit the majority of our citizens – especially the poor who rely more heavily on these services.

 
So why doesn’t the state just budget this amount of money directly to religious and private schools instead of ransacking the general fund after businesses donate it to the tax incentive program?

 

Because it’s illegal to give taxpayer dollars to religious and private schools. The establishment clause of the First Amendment forbids it.

 

The founders of our country didn’t want a state religion with schools teaching theological propaganda like we had in Great Britain. Moreover, they demanded tax dollars be spent with accountability to the whole public – something you cannot do in a private or religious school which isn’t set up for everyone but only those who choose and can afford to go there.

 

However, some smart ass thought of an alleged loophole. He said that if tax money is turned into a tax credit, it’s no longer tax money and it doesn’t violate the rules to spend it on religious and private schools.

 

So this is a fiscal sleight of hand meant to give businesses a tax break while boosting private schools.

 
Who’s guilty of hiding behind this loophole to bolster their bottom line while short changing ours?

 

Probably a lot of businesses you know.

 

Thankfully, their donations to the EITC Program are a matter of public record as is how much money returned to them as savings.

 

You can find a handy database of state businesses right HERE searchable by county compiled by Pennsylvania Capital-Star.

 

 

I happen to live in Allegheny County in the Pittsburgh region – the second highest area of the Commonwealth for these tax dodge…. I mean credits.

 

 

Across the county in 2017-18 (the most recent year for which data is available), Allegheny County businesses donated $15,741,544. They got back $14,180,261 in tax credits.

 
A quick search came up with these noteworthy businesses:

 
Fatheads – the Southside sports bar along Carson Street in Pittsburgh
Contribution: $ 10,000
Tax Credit: $ 9,000

 
AEO Management, Co. 
(American Eagle Outfitters Corporate Office in the South Side, Pittsburgh)
Contribution: $ 350,000
Tax Credit: $ 315,000

 
Apex Diamonds, Inc. (A Pittsburgh jeweler)
Contribution: $ 149,000
Tax Credit: $ 134,100

 
Cochran Motors, Inc. (car dealership in Monroeville)
Donation: $ 100,000
Tax Credit: $ 90,000

 
Deer Leasing Co. (freight and cargo business) THREE ENTRIES:
Donation: $ 444,444
Tax Credit: $ 400,000

 

Deer Leasing Co.
Donation: $ 221,111
Tax Credit: $ 200,000

 

Deer Leasing Co.
Donation: $ 388,888
Tax Credit: $ 349,999

 
-Dollar BankTWO ENTRIES
Donation: $ 225,000
Tax Credit: $ 202,500

 

Dollar Bank
Donation: $ 400,000
Tax Credit: $ 360,000

 
Duquesne Light CompanyTHREE ENTRIES
Donation: $ 10,000
Tax Credit $ 10,000
(So 100% return on investment!?)

 

Duquesne Light Company
Donation: $ 50,000
Tax Credit: $ 45,000

 

Duquesne Light Company
Donation: $ 240,000
Tax Credit: $ 216,000

 

-Eat’n Park Hospitality Group, Inc. (Corporate headquarters in Homestead)
Donation: $ 25,000
Tax Credit: $ 23,500

 

-Federated Advisory Services Company (Asset management company) – THREE ENTRIES
Donation: $ 111,111
Tax Credit: $ 100,000

 

Federated Investment Counseling
Donation: $ 111,111
Tax Credit: $ 100,000

 

Federated Investment Counseling
Donation: $ 222,222
Tax Credit: $ 200,000

 
Giant Eagle, Inc.TWO ENTRIES
Donation: $ 833,333
Tax Credit: $ 750,000

 

Giant Eagle, Inc.
Donation: $ 221,111
Tax Credit: $ 200,000

 
Glimcher Brokerage, Inc. (Real estate company) – TWO ENTRIES
Donation: $ 380,000
Tax Credit: $ 342,000

 

Glimcher Group, Inc.
Donation: $ 300,000
Tax Credit: $ 270,000

 
HM Health Insurance Company (Camp Hill, Pa) – THREE ENTRIES
Donation: $ 50,000
Tax Credit: $ 45,000

 

HM Health Insurance Company
Donation: $ 243,333
Tax Credit: $ 219,000

 

HM Health Insurance Company
Donation: $ 165,556
Tax Credit: $ 150,000

 
PNC Bank, N.A. – TWO ENTRIES
Donation: $ 685,000
Tax Credit: $ 616,500

 

PNC Bank, N.A.
Donation: $ 148,303
Tax Credit: $ 133,500

 
Rohrich Imports, Inc. (Luxury Pittsburgh Car Dealership)
Donation: $ 60,000
Tax Credit: $ 54,000

 
The Buncher Company (property management company) – THREE ENTRIES
Donation: $ 416,667
Tax Credit: $ 375,000

 

The Buncher Company
Donation: $ 416,667
Tax Credit: $ 375,000

 

The Buncher Company
Donation: $ 221,111
Tax Credit: $ 200,000

 

The Huntington National BankTWO ENTRIES
Donation: $ 549,556
Tax Credit: $ 494,600

 

The Huntington National Bank
Donation: $ 111,111
Tax Credit: $ 100,000

 
UnitedHealthcare of Pennsylvania, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

-UPMC Diversified Services, Inc. (Healthcare provider) – SIX ENTRIES
Donation: $ 200,000
Tax Credit: $ 180,000

 
UPMC Diversified Services, Inc.
Donation: $ 200,000
Tax Credit: $ 181,000

 

UPMC Diversified Services, Inc.
Donation: $ 190,000
Tax Credit: $ 171,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 181,000

 

UPMC Health Benefits, Inc.
Donation: $ 200,000
Tax Credit: $ 180,000

 

But this leaves out the largest and shadiest group donating to the EITC Program – Limited Liability Corporations (LLCs).

 

 

These “special purpose entities” are set up to represent individual donors so they can more easily divert tax dollars to private and parochial schools.

 

LLCs represent hundreds of individuals who allow the LLC to donate on their behalf and then they get the tax credits passed back to them. It’s a way to encourage the wealthy to get the tax cut and support school privatization without all the hassle of doing the paperwork themselves.

 

And most (if not all) of these LLCs are set up by religious organizations to boost their own parochial schools.

 

For instance, Business Leadership Organized for Catholic Schools is perhaps the largest LLC receiving EITC funds.

 

Across the state, these organization made $15.6 million in donations and claimed $14 million in tax credits.

 

In Allegheny County, the largest are CASTA-SOS LLC and Pittsburgh Jewish Scholarship LLC.

 

CASTA was set up by the Catholic Diocese of Pittsburgh. Pittsburgh Jewish Scholarship benefits Jewish schools in the city.

 

Here’s how much they took from the state general fund last year:

 

CASTA-SOS I LLC
Donation: $ 509,500
Tax Credit: $ 458,550

 

CASTA-SOS II LLC
Donation: $ 460,890
Tax Credit: $ 414,801

 
Pittsburgh Jewish Scholarship I LLC
Donation: $ 675,250
Tax Credit: $ 607,725

 

Pittsburgh Jewish Scholarship II LLC
Donation: $ 750,000
Tax Credit: $ 675,000

 

EITC money went to almost 1,170 different organizations across the state. A fraction were YMCA’s, the Salvation Army and preschools. But the vast majority were private and religious schools.

 

Defenders of the project claim this money goes to fund “scholarships” for poor children to help defray the costs of enrollment at these schools.

 

However, a family making as much as $100,608 per year can qualify for an EITC scholarship for their child. A family with two children could make up to $116,216 and still qualify.

 

Consider this: one of the largest single recipients of this money in Allegheny County was the exclusive Shady Side Academy in Pittsburgh. The private secular school took in almost $1 million last year so that its wealthy students didn’t have to spend as much on enrollment.

 

Why are we subsidizing the rich?

 

Why are we robbing the poor to do so?

 

Why are we using public money to fund the teaching of climate denial, creationism, indoctrination in religious and political ideologies?

 

The short answer – our politicians are spineless and indebted to the people this benefits.

 

Just this summer, the Pennsylvania legislature AGAIN increased the limit for the program by an additional $25 million.

 

That’s the pattern. Every year, the Republican-controlled (and heavily gerrymandered) legislature can’t get their regressive policies passed Democratic Gov. Tom Wolf. They need some Democrats to support their spending priorities. So they entice right-leaning Democrats with increases to these tax incentive programs in order to reach compromises.

 

The result – every year we allow more tax dollars to fly away to private and religious schools while further undermining funding for public schools.

 

But it could have been worse. Earlier in the year, the legislature passed a measure to increase the EITC Program by $100 million. Thankfully it was vetoed by Gov. Wolf. Unfortunately, he let the $25 million increase get through.

 

This is a problem that is not going away.

 

We need to let our lawmakers know in no uncertain terms that we do NOT support these programs. And this isn’t just Republican lawmakers. We especially need to pressure Democrats and even run challengers to those who are not progressive enough in the primaries.

 

And we need to let businesses who partake of the smorgasbord of tax credits that doing so will lose them our business.

 

If we want to stop theft disguised as “tax credits,” we have to start hitting these businesses where it hurts – in the pocketbook.

 

Because they certainly don’t feel it in their hearts.


 

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