Stop Giving Away Our Tax Dollars to Private & Parochial Schools, Matt Gergely & James Brewster!!! 

 
 
I got an email from my state representative the other day, and what did I see?  


 
A picture of my smiling elected representatives to both the state House and Senate giving a check for almost half a million dollars to local private and parochial schools! 
 


What the beach sludge chewing GUM!!?  


 

Public schools in my home state of Pennsylvania just took the Commonwealth to the state Supreme Court and won because it wasn’t providing fair funding to students. And now my representatives are offering a novelty oversized check to religious schools and private sector academies!?  


 
This would be bad enough if they were Republicans who run their campaigns against public education and support only free market solutions to everything and White Christian Nationalism in all its forms.  


 
 
BUT THESE ARE DEMOCRATS!!!!!!! 


Democrats who somehow think that tromping onto the bleachers at Cornerstone Christian Preparatory Academy with a fistful of our tax dollars is a good photo opportunity!!!!?  


 
 
They think this is what they should share with constituents to show all the good work they’re doing!!!?  


 
Stealing our public tax dollars for schools that we have no business funding while our own schools that serve every child in the state go wanting!!!!!????? 


 
The email was from State Rep. Matt Gergely of McKeesport who just took office in February. Here’s the message from under the photo: 


 
 
“Yesterday, I was honored to help present $465,000 in scholarship funds to many students enrolled in the Educational Improvement Tax Credit Program. Congrats and best of luck to all who will surely benefit from the scholarships that will be provided! 
  
Big thanks to U.S. Steel and the Bridge Foundation for making these dollars a reality, to Sen. Jim Brewster for his continued collaboration, and to Cornerstone Christian Preparatory Academy for hosting the presentation.” 


 
 
The Educational Improvement Tax Credit (EITC) was created in 2001 by Republican Gov. Tom Ridge. 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 up to $340 million a year. 


  
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 nefarious character in the Ridge administration (the Governor was pro-school-voucher but couldn’t get the policy passed in the legislature) thought up a 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. 


  
However, there’s an even more important reason they don’t call these things school vouchers. That term is extremely unpopular with voters. 
 


People don’t like school vouchers. But if you call it a “scholarship,” it’s more palatable. For instance, while school vouchers are mostly supported by Republicans, a substantial number of Democrats support education tax credit scholarships


  
 
 
I live in Allegheny County in the Pittsburgh region – the second highest area of the Commonwealth for these tax dodge…. I mean credits. The other is Philadelphia. 


 
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. 


  
According to the law, the state is not allowed to collect income information about people using these vouch… I mean tax scholarships. However, we know that a significant number of them are being utilized at private schools with average tuitions of $32,000 – far more than the few thousand dollars provided by the scholarships. They are apparently being used by wealthy and middle class students who can already afford private schools but are using public tax dollars to reduce the cost. I wonder how many already go to these schools before even taking the scholarship. 


 
Consider this: one of the largest single recipients of this money in Allegheny County is the exclusive Shady Side Academy in Pittsburgh where tuition ranges from $56,495 for boarding students and $32,995 for day students. The private secular school takes in around $1 million annually from this program so that its wealthy students don’t have to spend as much on enrollment. 


  
So we are subsidizing the rich. 


 
And we are robbing the poor to do so. 
  


Even worse we’re using public money to fund the teaching of climate denial, creationism, indoctrination in religious and political ideologies! 
 


 
The state Budget and Policy Center estimates that about 76% of these “scholarships” go to religious schools. Many of these educational institutions are explicitly fundamentalist. This includes the 155 schools in the Association of Christian Schools International (ASCI) where they boast of “the highest belief in biblical accuracy in scientific and historical matters.” It also includes at least 35 schools in the Keystone Christian Education Association. 


 
And you don’t even have to be a business to divert your tax dollars into the program. 


 
The largest and shadiest group donating to the EITC Program are 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. 
   


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. 


 
Bridge Educational Foundation, a Harrisburg-based scholarship organization, operates the same way. On its Website, the organization claims to have provided $1,000 scholarships to more than 32,000 students in 61 state counties. 


 
 
I just cannot understand why Gergely and Brewster are not only supporting this program but think that it will generate good will among voters. 


 
 
They should be fighting to end this gaping hole in the state budget. They should be out there working their butts off to get adequate, equitable and sustainable funding for our public schools – not sitting on their butts congratulating themselves for helping religious and private schools get away with our hard-earned money! 
 


 

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Every Charter School Must Be Closed Down – Every. Single. One.

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The problem with charter schools isn’t that they have been implemented badly.

 

Nor is it that some are for-profit and others are not.

 

The problem is the concept, itself.

 

Put simply: charter schools are a bad idea. They always were a bad idea. And it is high time we put an end to them.

 

I am overjoyed that lawmakers on both sides of the aisle are starting to hear the criticisms leveled against the charter school industry in the face of the naked greed and bias of the Trump administration and its high priestess of privatization, Betsy DeVos. However, I am also disappointed in the lack of courage displayed by many of these same lawmakers when proposing solutions.

 

Charter schools enroll only 6 percent of students nationwide yet they gobble up billions of dollars in funding. In my home state of Pennsylvania, they cost Commonwealth taxpayers more than $1.8 billion a year and take more than 25 percent of the state’s basic education funding. That’s for merely 180 schools with 135,000 students!

 

Charter schools are privately run but publicly financed. They are what happens when the public abrogates its responsibility to run a school and signs that right away (in a charter agreement) with another entity, usually a business or corporation.
As such, these schools are not held to the same standards as authentic public schools. Unlike your neighborhood school, charters are not required to be run by elected boards, to have public meetings, to have open records, or to spend all their money in the service of their students. Nor do they have to provide the same standard of services for students – even children with special needs. Nor do they have to accept all students within their coverage area who enroll. And that’s to say nothing of how they increase racial segregation, are susceptible to fraud and malfeasance, often produce much worse academic results, close without notice, hire many uncertified teachers, trample workers rights and destabilize the authentic neighborhood public schools.

 

These are not problems that can be solved by fiddling around the edges.

 

 

We cannot simply constrain them from stealing AS MUCH from authentic public schools and consider it a victory.

 

We need to address the issue head on – and that issue is the very concept of charter schools.

 

Why would the public give up its schools to a private entity? Why allow someone else to take our money and do whatever they want with it behind closed doors? Why allow anyone to give our children less of an education than we’re already providing at our own schools?

 

We must end this failed experiment. Nothing less will do. It will only provide more breathing room so  that this unjust situation can drag on for another generation.

 

In Pennsylvania, Gov. Tom Wolf has proposed sweeping reforms via executive order that would make real progress toward holding charter schools accountable. He has asked that the state senate and house take the next step with legislation to finish the job.

 

Just this past week, Wolf visited Twin Rivers Elementary School in McKeesport along with state Senator Jim Brewster and state Reps Austin Davis and Jake Wheatley to listen to resident and teachers’ concerns and propose solutions.

 

Such a move is unprecedented and represents a seismic shift in the political landscape. However, I am concerned that lawmakers are too timid to fix the real problem here.

 

No one has the bravery to come out and say what I’ve said here.

 

Consider this statement from Brewster, my state Senator:

 

I have legislation to address some of these issues, but it’s not an indictment on charter school teachers. It’s not an indictment on the charter school concept. It’s an indictment on the process that was put in place 20 some years ago that has put in a playing field that’s not level. Together I believe if we get the charter school folks to the table we can iron this out, we can fix several things that need to be fixed – the funding formula, the capacity, the cap and those sort of things – and when we do that, then the mission statements of the charter schools and the public schools are the same – educate our children, bring their skill sets out, help them achieve their dreams.”

 

 

I am deeply grateful for Brewster’s support and willingness to take on the charter industry. And he is right about many things. But not all of them.

 

He is right, for example, about the financial impact of charter schools on authentic neighborhood public schools.

 

At the same meeting, McKeesport superintendent Mark Holtzman said, “Charter schools are depleting our resources with no accountability or without being financially responsible. Taxpayer money is being used to flood the media with commercials and billboards right before the start of school so that they can take our students.”

 

There are roughly 500 students living in the McKeesport district enrolled in brick-and-mortar charter schools and 100 students enrolled in cyber charters. The district spends about $7 million — or 10% of its budget — on charter school payments, according to Holtzman.

 

It’s roughly the same at other districts in the Mon-Valley. Steel Valley Schools, where I work as a middle school teacher, has budgeted a $6 million payment to charter schools this year – 16% of our spending plan.

 

Again, I am extremely grateful that Wolf and other state Democrats recognize this fact and are willing to take measures to make matters more fair. I hope many Republicans will join them in this.

 

However, fixing the way charters are funded alone will not correct the problem.

 

Charter schools are a parallel service to authentic public schools. If you’re suggesting we fund them both, you’re asking taxpayers to pay for two complete and separate school systems.

 

Why should we do that? Why should we waste our money on it? I don’t think the people of Pennsylvania – or any state of the union – have money to spare on a pointless duplication of services.

 

It is a politically impossible position that has zero justification – especially when you consider all the inequitable practices charter schools are allowed to get away with.

 

In his executive orders, Wolf proposes putting a stop to some of this.

 

For example, he wants to require charter schools to stop turning away students based on race, ethnicity, gender, disability, intellectual deficits, or other factors. He wants to make charter schools as transparent as authentic public schools. He wants to stop conflicts of interests for charter school board members and operating companies so that they can’t make decisions on behalf of the school that would enrich themselves, their families and/or friends.

 

These are excellent suggestions and I hope he is able to make them a reality.

 

However, these “fixes” are all things that authentic public schools already do. They don’t discriminate in enrollment. They are financially accountable and transparent. They aren’t allowed to engage in conflicts of interest.

 

Why bother making charter schools act like authentic public schools when we already have authentic public schools? That’s like genetically engineering your cat to have a longer snout and say “woof.” Why bother when you already have a dog?

 

The same could be said about for-profit and non-profit charter schools.

 

Apologists want to pretend that the former is the “bad” type of charter and the latter is the “good” type.

 

Wrong.

 

As Jeff Bryant, an editor at Education Opportunity Network, puts it, this is a “Distinction without a difference.”

 

These terms only define an organization’s tax status – not whether it is engaged in gathering large sums of money for investors.

 

With a knowledgeable accountant or hedge fund manager, almost anyone can claim nonprofit status while still enriching yourself. It happens all the time.

 

For instance, take the use of management companies.

 

A for-profit charter school can simply cut services to students and pocket the savings as profit.

A nonprofit charter school can do the same thing after engaging in one additional step.

All they have to do is start a “nonprofit” charter school and then hire a for-profit management company to run it. Then the management company can cut services and pocket the profits!

 

 

Yet we call such a school “nonprofit.” It’s meaningless.

 

 

It doesn’t even matter who owns the for-profit management company. It could even be the same people who own the nonprofit charter school.

 

The law actually allows you to wear one hat saying you’re nonprofit and then put on a different hat and rake in the cash! The only difference is what hat you’re wearing at the time! You get to claim to be a nonprofit while enjoying all the advantages of being for-profit.

 

You can even buy things with public tax dollars through your for-profit management company and then if your “nonprofit” school goes bankrupt, you get to keep everything you bought! Or your management company does.

 

So the public takes all the risk and you reap all the reward. And you’re still called a “nonprofit.”

 

 

But let’s not forget real estate shenanigans.

 

 

If I own property X, I can sell it to my own charter school and pay myself whatever I want. And I can do the same thing with a nonprofit charter school, I just need to sell it to my for-profit management company which will still buy my property for whatever I decide to pay myself.

 

 

Face it – charter schools are a scam.

 

They are a failed policy initiative.

 

It’s time they were ended.

 

But don’t get me wrong. I’m not suggesting we simply throw away the people who work there or the students who are enrolled there.

 

We need to look at each charter on a case-by-case basis and decide how best to transition them to an authentic public school system.

 

In some cases, it may make sense to rehabilitate charters into fully public schools with all the transparency and regulations that means. However, in most cases it will mean eventually closing them.

 

If there are any charters that actually provide valuable services for students and their families wish to keep children enrolled there, we should allow these students to finish their academic careers there. But let the present classes be the last.

 

In schools that do not offer better outcomes than the neighborhood public school (i.e. the overwhelming majority) students should be transitioned back to the neighborhood schools.

 

If there are any charters that do not wish to abide by such changes, they should have the opportunity to become what they already are except in name – private schools. The only difference is that taxpayers will no longer take up the tab.

 

And when it comes to charter school teachers, they should not be punished for having worked in the industry. In fact, we should find ways to bring them into the authentic public schools.

 

Our public schools need more teachers. Charter teachers who are fully certified should be given first chance to fill some of those vacancies. And charter teachers who are not certified should be given the opportunity to go back to school and complete their education degrees.

 

Any sane solution to the charter school mess would include these measures with the ultimate goal of ending school privatization in all its forms financed at public expense.

 

We don’t want privatized prisons. We don’t want privatized mercenary armies like Blackwater. We don’t want privatized schools.

 

Tax dollars should go to our authentic neighborhood public schools so that we can make them even better than they already are.

 

Our students deserve the best we can give them – and we can’t give them the best when we’re needlessly paying for two separate school systems and passing legislation with more of an eye on private investors than the welfare of the next generation.

 

It is my sincere hope that this push for real charter school reform becomes an effort to solve this problem once and for all.

 

Are we brave enough to do it?

 

 

Do we have the courage and conviction to take that on?


 

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State Senator To Propose Rewriting PA Charter School Law To Hold the Industry Accountable

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Pennsylvania’s charter school law is a national disgrace.

 

It allows charters to defraud the public and provide a substandard education to our children.

 

Charter school managers pay themselves with taxpayer money for leases on properties they already own. They funnel money through shell companies into their own pockets. Academic achievement at many charters is far below par.

 

And it’s all legal.

 

That’s why state Auditor General Eugene DePasquale has long called it the “worst charter school law” in the country. But his call for sweeping reforms from the legislature has fallen on mostly deaf ears.

 

Until now.

 

State Sen. Jim Brewster (D-45) is in the early stages of proposing legislation that would ensure charter schools are held as accountable as other public schools.

 

 

Specifically it would require these types of schools, which are ostensibly public but privately managed, to be transparent, fiscally solvent and responsible to taxpayers.

 

“It has become abundantly clear that systemic changes are needed in how brick and mortar and cyber charters operate in Pennsylvania,” Brewster says.  “There is a growing frustration that charters are unaccountable.”

 

The bill doesn’t have a Senate number yet, nor has its specific language been made available. However, the State Senator from McKeesport announced plans to formally propose it in Harrisburg within the next several weeks.

 

 

Brewster’s bill would:

  • Require local school boards to sign off on any new charter construction project costing more than $1 million. The project would have to be backed by a financing arrangement with a local industrial development authority or other government entity. This way charters would have to prove that new construction projects are fiscally sound and won’t be abandoned after wasting millions of taxpayer dollars.

 

  • Compel charter schools to prove they have the funds to keep running for the entire school year. They would have to post a bond, other type of surety, or agree to a payment escrow arrangement. This would ensure charters don’t close suddenly leaving students and parents in the lurch.

 

 

  • Limit the scope of the state Charter School Appeal Board to solely determining whether the local school board acted appropriately in reviewing charter school applications. The state should not be approving new charter schools. That power should remain at the local district level, though the state can determine if local school boards are acting within the bounds of the law.

 

  • Require officials from the state Department of Education (PDE) to visit the proposed site of a charter school to ascertain the condition of its physical building. Their report will then be made a part of the charter application. This way charters can’t get away with paying themselves for properties they already own and they won’t be able to open with substandard buildings.

 

 

  • Mandate that a charter school applicant obtain approval from multiple school districts if the charter school draws more than 25 students from a specific district. Every district impacted by the opening of a new charter should have a say whether it can open.

 

  • Upgrade accountability by requiring a quarterly report on the operations of the charter school to the local school board – with the report delivered in person by a charter school official. While traditional public schools report on operations monthly, reporting four times annually would greatly increase charter school transparency. At present charters don’t have to provide such reports sometimes for years after opening. Moreover, having a flesh and blood representative of the charter school at these meetings would allow for the public to ask questions about how their money is being spent.

 

 

  • Make a structured financial impact statement part of the charter school application. This would include an estimation of enrollment multiplied by tuition payments. The impact statement may serve as the justification for denial of a charter application. This would be huge. Traditional public schools can be sucked dry of funding from fly-by-night charters without their record of proven success. Necessitating an impact statement of this kind would truly make the local district and the charter school educational partners and not competing foes.

 

  • Increase the percentage of certified teachers at charters from 75 percent to 90 percent of faculty, though current faculty would be grandfathered in. Except under extreme circumstances, all teachers at traditional public schools are certified. Making charters raise the bar close to that of traditional public schools is an improvement – though Brewster has in the past proposed legislation to require 100 percent of charter teachers to be certified. It’s unclear why he’s settled on 90 percent here.

 

  • Prohibit charter board members from receiving payments for school lease arrangements.  This issue was highlighted in August in the auditor general’s report where he found $2.5 million tax dollars being defrauded in this way. Charter operators have complained that nothing they did was illegal. This measure would ensure that in the future such moves would be explicit violations of the law.

 

 

  • Impose a moratorium on the approval of new cyber-charter schools since their academic performance has been so consistently below that of traditional public schools and brick-and-mortar charters. In fact, A recent nationwide study found that cyber charters provide 180 days less of math instruction and 72 days less of reading than traditional public schools. (By the way, there are only 180 days in an average school year.)

 

Brewster said these reforms offer a place to begin real robust regulation of the charter industry. However, he is open to adding others.

 

“The auditor general has made a number of worthwhile recommendations and I’ve combined some of these ideas with other features to produce what I believe is an excellent starting point for comprehensive reform,” he says.

 

“We need to dig deep and look critically at the charter law to make sweeping changes. In this year alone, the auditor general has pointed out that the reimbursement process is flawed, that there were too many reimbursement appeals and that the cyber charter law reeked with ethical issues, poor oversight and a lack of transparency.

 

“It is clear that the charter law is not helping schools, charters themselves or the taxpayers.”

 

There are more than 150 charter schools statewide enrolling more than 128,000 students, according to state data. Nearly half of these schools are in the Philadelphia area.

Two years ago, DePasquale released a set of specific recommendations to improve the charter law, which Brewster drew upon when writing his proposed legislation. DePasquale’s suggestions called for an independent board to oversee charter school processes and functions — including lease reimbursements and student enrollment. He also suggested public hearings involving charter changes, limits on fund balances and guidelines on calculating teacher certification benchmarks.

 

Brewster said he is not unduly singling out the charter school industry. He says he is confident making these changes will help charter schools by ensuring only high quality institutions are allowed in the Commonwealth.

 

The Democrat Representing the 45th legislative District says he realizes that October is late in the year to be proposing such sweeping changes. He is doing so now to raise awareness of the issue, though he doesn’t expect it to come to a vote until the next legislative session at the earliest.

 

He hopes to bring up many of these issues tomorrow (Oct. 13) at a Senate Democratic Policy Committee hearing at the Monroeville Municipal Building in Monroeville in his district.

 

The legislature tried to pass a charter school reform bill (House Bill 530 ) this summer but it had been rewritten into more giveaways to the industry than regulations. For instance, it would have allowed charters to open almost anywhere in the state without approval from local school districts. As such, it lost support.

 

Government watchers cautioned that this charter Trojan Horse bill might rear its ugly head again in Harrisburg. Here’s hoping that Brewster’s bill has more success and isn’t likewise bastardized into a piece of legislation that gives away the store.

 

If there’s one thing most people agree about in the Keystone state, it’s that we need charter school reform. Brewster’s Bill may be the answer to our prayers.