Campaign News

Times Online - October 2, 2014, by JD Prose - A day after Pennsylvania Cyber Charter School founder Nick Trombetta was in a federal courtroom as part of his ongoing criminal case, a new report cited him as an example of $30 million in fraud and financial mismanagement among Pennsylvania charter schools since 1997.

The report, “Fraud and Financial Mismanagement in Pennsylvania’s Charter Schools,” was done by three organizations, the Center for Popular Democracy, Integrity in Education and Action United.

It piggybacks on a national report on charter schools in May by the Center for Popular Democracy and Integrity in Education that claimed more than $136 million has been lost to waste, fraud and abuse by charter schools.

The Pennsylvania Coalition of Public Schools issued a statement saying allegations of fraud must be investigated.

“However,” the statement continued, “the report draws sweeping conclusions about the entire charter sector based on only 11 cited incidents in the course of almost 20 years, while ignoring numerous alleged and actual fraud and fiscal mismanagement in the districts over the same time period, which dwarf the charter school allegations in terms of alleged misuse of taxpayer dollars.”

To stem the loss of tax dollars by charter schools, the three nonprofit organizations make several recommendations, including annual fraud risk assessments, trained forensic auditors doing reviews, charter school authorizers doing comprehensive reviews every three years instead of every five years, and charter schools posting findings of internal assessments.

City and county controllers should also be authorized to perform fraud risk assessments and fraud audits on charter schools, the groups recommended.

They also suggested that the state attorney general’s office review all charter schools in Pennsylvania, that the Legislature pass a law to protect and encourage charter school whistle-blowers, and that the state declare a moratorium on new charter schools until reforms are implemented.

Trombetta, who faces 11 federal charges, including mail fraud and filing false tax returns, is cited as one example in the report. On Tuesday, he was in court trying to get recordings tossed in the case, in which he is accused of using various offshoots of PA Cyber to siphon away millions of taxpayer dollars.

The coalition said the report’s recommendations should be applied to traditional school districts as well as charter schools “in the name of intellectual integrity.” If not, it would just be an example of pursuing a political agenda, the coalition said.

Not surprisingly, the president of the National Education Association issued a statement trumpeting the report’s findings and blasting charter school supporters, especially Gov. Tom Corbett. “It’s time for lawmakers to stop providing charter industry players a blank check with little oversight and no accountability,” said Lily Eskelsen Garcia.

“Pennsylvania Gov. Tom Corbett and other politicians in the state continue to push for privatization, despite compelling evidence of fraud and abuse of taxpayer funds in the charter school industry,” Garcia said.

Source

EASTON, Pa.—The orders came in fast during a recent Friday lunchtime rush at a Sheetz Inc. convenience store here. Behind the counter, Alexis Cooper layered tomatoes on two sandwiches, refilled a container of onions and swirled a peanut-butter milkshake.

Six weeks into her job at Sheetz, Ms. Cooper easily distinguishes the beep of the deep fryer from the boop of the convenience store’s order-taking system and knows to have a pepperoni roll ready for a regular who shows up around noon.

Ms. Cooper, 20 years old, is something of a rarity in the realm of fast-food and retail work: a full-time employee.

At a time when many chains are shifting workers to part-time, the Altoona, Pa.-based Sheetz is making a big bet on full-time hires, who now comprise 53% of the company’s 17,000-person workforce. Leaders at the convenience store-and-gas-station chain say having full-time workers behind the register results in better customer service, lower turnover and a more engaged workforce—all of which, executives say, will lead to higher sales and profits.

Nearly 5.7 million workers said they were working part-time last year because they couldn’t get more hours or find full-time work, according to Bureau of Labor Statistics survey data. About 65% of store employees in the retail sector work part-time, according to an analysis by search and consulting firm Korn Ferry Hay Group. Companies reason that keeping staff to 30 hours or fewer a week curbs labor costs and allows firms to act nimbly, adjusting staffing to match customer demand.

Sheetz, and others like beauty retailer Bluemercury Inc., acknowledge that full-timers might cost more at first, but say they are more reliable—27% of full-time hourly workers leave their jobs per year, versus 68.7% of part-timers, according to the Korn Ferry report. Lower employee turnover saves on training and hiring costs, those employers say, and some report their customers spend more when full-timers take orders and ring up purchases.

“This is a moment where some employers at least are taking stock of whether they’ve gone down the labor flexibility path a little too far,” says Susan Lambert, a University of Chicago professor who studies hourly work.

Full-time workers are the “glue” that holds businesses together, Ms. Lambert’s research has found. They help coordinate tasks and anticipate business needs, and are often more committed. These employees are more likely to go the extra mile on the job, such as tracking down an item online for a customer.

For customers, a full-time employee “gives them the same face every day. It builds a different feeling than the robot behind the counter,” says Sheetz Chief Executive Joe Sheetz.

On employee surveys, Sheetz’s full-time workers tend to report more commitment and willingness to put in extra effort than part-timers do. That engagement correlates with higher customer-service marks, says Stephanie Doliveira, Sheetz’s human-resources vice president.

Less than a quarter of Sheetz’s full-time staff leaves each year; for part-timers, 83% leave. Overall voluntary turnover at the company is down two percentage points from last year, saving $925,000 in recruiting and training, Ms. Doliveira says. Starting sales associates make $9 to $11 per hour and are eligible for paid time off; those working more than 30 hours per week get access to health insurance.

At Buffalo Wings & Rings, a restaurant with 50 locations in the U.S., full-timers ring up 6% higher sales per hour on average and have far lower rates of absenteeism than part-timers do,  according to CEO Nader Masadeh. The eatery has doubled its share of full-time workers since 2013, with about 37% of employees working full-time. The company’s training costs have fallen 25% as a result, according to Mr. Masadeh.

Churn among part-time workers prompted &pizza, a 14-store chain in the Washington, D.C., area, to halt new restaurant openings for a while, says CEO Michael Lastoria. Managers noticed that customers gave low ratings to new stores where inexperienced, often part-time, workers comprised 95% of staff. Some 31% of &pizza staff now workfull-time, up from 15% in 2014, and the chain is set to open seven additional stores this year, Mr. Lastoria says.

Having more full-time workers requires managers to adjust. Sheetz’s store managers initially resisted adding more full-timers when the company launched the initiative in the summer of 2014, Ms. Doliveira says. Used to having a big bench of part-time workers to call upon, they worried about being caught short when employees called in sick. Managers are also figuring out how to plan shifts now that more workers have vacation time.

Moving to full-time has come with health insurance and an extra $50 or so each week for Tammy Shepard, a salesperson at a Sheetz in Statesville, N.C. “It gives you a sense of security, which is a huge thing,” she says.

Full-time private industry workers make $25.44 an hour in wages and salaries, as compared with $13.29 for part-time workers, according to the Bureau of Labor Statistics.

“There’s a real penalty that workers pay for working part-time,” says Carrie Gleason, director of the Fair Workweek Initiative at left-leaning advocacy group Center for Popular Democracy.

The promise of a 40-hour work week was what spurred Ms. Cooper to apply to Sheetz, though she holds down another part-time job managing a nearby pub. Logging just 14 hours a week there has made it tricky to stay on top of everything, such as the new beers on the menu.

“It stinks when you don’t know certain things,” she says.

By RACHEL FEINTZEIG

Source

US Secretary of Education Arne Duncan’s surprise announcement to leave his position in December is making headlines and driving lots of commentary, but an important story lost in the media clutter happened three days before he gave notice. 

On that day, Duncan rattled the education policy world with news of a controversial grant of $249 million ($157 the first year) to the charter school industry. This announcement was controversial because, as The Washington Post reports, an auditby his department’s own inspector general found “that the agency has done a poor job of overseeing federal dollars sent to charter schools.”

Post reporter Lynsey Layton notes, “The agency’s inspector general issued a scathing report in 2012 that found deficiencies in how the department handled federal grants to charter schools between 2008 and 2011″ – in other words, during Duncan’s watch.

Even more perplexing is that the largest grant of $71 million ($32.5 the first year) is going to Ohio, the state that has the worst reputation for allowing low-performing charter schools to divert tax money away from educational purposes and do little to raise the achievement of students.

A number of Ohio officials were shocked by the news.

As a different article from The Post reports, Democratic Party Representative Tim Ryan “was alarmed” by the Education Department’s decision. Ryan called his state’s charter school sector “broken and dysfunctional.”

Ted Strickland, an ex-Governor and now Democratic candidate for a US Senate seat in Ohio, wrote Duncan a letter telling him to reconsider the Ohio grant. “Too many of Ohio’s charter schools are an embarrassment,” he states. Strickland quotes from a recent study showing charters in his state perform significantly worse than public schools. He points to a recent scandal in which the person in the state’s department of education responsible for oversight of charters had to resign because he was caught “rigging the books.”

Even Ohio Republicans are disturbed about Secretary Duncan’s generosity to charter schools in the Buckeye State. Like a parent who sees a visiting relative doling out chocolate bars to an already stimulated child, State Auditor Dave Yost quickly stated his concerns about the new charter school largesse to the media and his intention to track how the money is spent. Yost should know. An audit he conducted earlier this year found charter schools in the state misspend millions of tax dollars.

“Why is the Department rewarding this unacceptable behavior,” Strickland asked in his letter.

Money For What?

Certainly throwing unaccounted for federal tax money at charter schools is nothing new.

A recent report from the Center for Media and Democracy found that over the past 20 years the federal government has sent over $3.3 billion to the charter school industry with virtually no accountability. That report notes “the federal government maintains no comprehensive list of the charter schools that have received and spent these funds or even a full list of the private or quasi-public entities that have been approved by states to ‘authorize’ charters that receive federal funds.”

But Secretary Duncan has been particularly generous to charter schools. One of the conditions states had to meet to win a Race to the Top grant, his signature program, was to raise any caps they may have had on the number of charter schools allowed to operate in the state. His department warned states receiving waivers to the onerous provisions of No child Left Behind not to do enact any new policies that would undermine charter schools’ “autonomy.”

Congress has done its part too, raising the amount of federal money going to charter schools through the Charter School Grants program.

The CMD report cited above calculated that the feds are expected to increase charter school funding by 48 percent in FY 2016, which would have been Duncan’s last year on the job. That’s about $375 million more for charters estimates journalist Juan Gonzalez.

Yet at the same time federal support for charter schools continues to grow, revelations increasingly show the results of that spending are frequently disastrous.

Dollars For Disaster

A recent report from the Center for Popular Democracy and the Alliance to Reclaim Our Schools (AROS) uncovered over $200 million in “alleged and confirmed financial fraud, waste, abuse, and mismanagement” committed by charter schools around the country.

The report follows a similar report released a year ago by the same groups that detailed $136 million in fraud and waste and mismanagement in 15 of the 42 states that operate charter schools. The 2015 report cites $203 million, including the 2014 total plus $23 million in new cases, and $44 million in earlier cases not included in the previous year’s report.

Authors of the report called $200-plus million the “tip of the iceberg,” because much of the fraud “will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud.”

Adding to concerns over how federal funds for charter schools are used, state audits, like the one conducted in Ohio, have also found widespread financial fraud and abuse committed by these schools.

Although the CPD-AROS report made policy recommendations for mandatory audits of charters and increased transparency and accountability for these schools, none of those recommendations seem to have gotten any attention, much less action, from Duncan and his staff.

A Process Cloaked In Mystery

Both the ends and the means of federal grants to charter schools remain mostly a mystery. Not only do we not know what happens to most of the money; we don’t know how recipients for the money are chosen.

As CMD’s Jonas Persson writes on that organization’s PR Watch blog, “The public is being kept in the dark about which states have applied for the lucrative grants, and what their actual track records are when it comes to preventing fraud and misuse … The U.S Department of Education has repeatedly refused to honor a CMD request under the Freedom of Information Act for the grant applications, even though public information about which states have applied would not chill deliberation and might even help better assess which applicants should receive federal money.”

Also unknown are the names of the “peers” who review applications for the grant money. 

How Ohio became chosen for more charter school money is especially enigmatic, not only because of the bad reputation of the state’s charter schools, but also because of the circumstances of how the state’s application was pitched to Duncan and his staff.

Soon after the announcement of the grant, the Akron Beacon reported a Ohio Department of Education official who helped obtain the $71 million in federal money was the very same official who resigned in July “after manipulating data to boost charter schools.” The official resigned a mere two days after filing the grant application.

What’s also interesting about the new federal grant money for Ohio charters is its timing.

Was Money Timed For Youngstown Takeover?

As the Beacon report notes, “The additional federal dollars come as the Ohio Department of Education decides how to distribute $25 million set aside by state lawmakers to help charter schools pay rent, purchase property, or renovate buildings. The money is yet one more assist to charter-school proponents in need of a building. Rent and building acquisition are two of the biggest deterrents to start-ups.”

The grant to Ohio also seems especially well timed to the targeted takeover of one of the most troubled school districts in the state, Youngstown.

As a recent report in Belt Magazine explains, “The Youngstown City Schools, which could lay claim to the title of the worst school district in the state … had been under academic distress for the past five years. Enrollment had dropped 21 percent since 2010.”

This summer, a House education bill with bipartisan support was about to sail through the legislature when State Senator Peggy Lehner, the chairwoman of the Senate Education Committee, suddenly introduced an amendment.

“The amendment,” Belt reporter Vince Guerrieri recounts, “informally dubbed ‘the Youngstown Plan,’ allows for the dissolution of the academic distress commission of any district that’s gotten an F grade for three years in a row or has been under academic distress for at least four years. Youngstown is the only school district that meets that qualification.”

“Within 12 hours of the introduction of the amendment, it had passed the legislature,” Guerrieri writes.

The fast-tracked legislation sets up, according to an NPR outlet in the state, “a five member Academic Distress Commission with a three member majority chosen by the state school superintendent. That group then appoints a CEO with extraordinary powers. He could not only change the collective bargaining agreement with teachers but also create or contract with charter schools.

State school board member Patricia Bruns – a Democrat – says bypassing local elected officials including the school board is unconstitutional. ‘Their idea is to take over the schools, dismantle what’s there, and dole them out to private, for-profit charters.’

So was the federal grant to Ohio timed to pay for the take over of Youngstown schools?

That’s the question Ohio edu-blogger and public school advocate Jan Resseger wants answered. She points to an article by Akron Beacon education reporter Doug Livingston who alleges the new funding for charter schools in Ohio is “designed specifically to pay for the fast-tracked state takeover of the Youngstown schools.” Livingston backs up his claim with a quote from Arne Duncan’s press secretary Elaine Quesinberry who confirmed, “that the Ohio education officials filled out the grant application with the intent to direct money to charter school startups in academic distressed areas. Only two, Youngstown and Lorain, currently fit that description.”

What ‘Reform?’

Meanwhile, as the House bill containing the Youngstown Plan passed with extraordinary haste, another bill to make charter schools more transparent and accountable remained mired in contentious through the summer recess. That bill now seems likely to get approved by the legislature, based on reports received at press time. But “there’s no clear magic bullet” in the bill, according to a Cleveland news outlet, at least in terms of reforming charter schools in the state.

“The bill makes several small changes,” the reporter contends. “Private and for-profit charter school operators will have to provide more information to the public about how they spend tax dollars they are paid to run the schools.” But “the books won’t be anywhere near as open as a public school district’s.”

Also, what amounts to accountability for charters seems especially weak under the provisions of the new law. “The Ohio Department of Education will start to publicize which operators run each school and give information to the public about the academic performance of the schools that each operator runs. That will let families know the track record of the people running a school.” It will? How many families will dig into state reports to make decisions about where to send their kids to school?

A Hands-Off Policy For Charter Schools?

For his part, Secretary Duncan seems little interested in how new federal grants to charter schools will be spent, saying it’s “largely up to states and the public agencies that approve charter schools,” according to the Post article cited above. “At the federal level, we don’t have a whole lot of leverage,” he mused.

This seems an oddly resigned comment from an education secretary whose department has made the minute scrutiny of state policy governing nearly everything having to do with public education – from standards, to teacher evaluations, totutoring requirements.

Why would a secretary so often accused of leading an unprecedented overreach of federal intrusion in state education policy suddenly become so nonchalant about oversight of charter schools?

It certainly doesn’t help dampen suspicion that Duncan’s replacement as acting secretary will be John King, the controversial former New York State Education Commissioner, who has deep ties to the charter school industry.

Before becoming New York Commissioner, King helped to found and operate a charter school management organization with schools in New York, Massachusetts, and New Jersey.

Because King will be acting secretary, no nomination process or Congressional hearings will be needed to approve the leadership change.

Source: Salon

Source: Grub Street

In August 2014, Starbucks promised to start making baristas' schedules more manageable. If complaints from baristas 15 months later are any indication, however, corporate still has its work cut out.

While fast-food workers rallied in 270 cities on Tuesday for better pay, a group of Starbucks workers apparently spent the daydemonstrating in front of Seattle's Pike Place location to protest what they say are ongoing scheduling snafus. A report recently backed up these claims: The advocacy group Center for Popular Democracy asked 200 employees about their workweeks, and many said they still get schedules with almost no advance notice and still do "clopenings," the infamous shift where a barista closes the store at night and returns hours later to open it the following morning.

Work life has improved for some baristas, but others claim corporate isn't doing nearly enough to fix the mind-set "that being sick is your fault." Inan essay posted this week on Medium, Darrion Sjoquist, a barista whose mom also worked at Starbucks, wrote that his store still expects workers to find someone to cover their shift, no matter the situation:

"You are expected to show up for work if your son has been missing for 24 hours or your grandfather has died. If you are so sick that it hurts to speak, you are expected to call and text and beg every available person and ask them to sacrifice their day off, their precious hours before work or after school to help you solve a problem neither of you had any control over."

As an example, he recounts a recent 4 a.m. phone call he got from a co-worker:

As soon as she said my name, I knew why she was calling. She was sick. She asked if I could cover her 4:30 a.m. to 10:30 am shift that morning. She’d tried every number she could and was having difficulty speaking, let alone standing and working for six hours. She said she didn’t know who else to call or what else she could do. She asked if I could cover even part of her shift.

"I said yes. I worked her six-hour shift that morning and returned an hour later to work my own eight-hour shift that afternoon. I worked her shift because if I hadn’t, no one would have, or even worse, she would have tried."

He and a group of baristas sent a letter to CEO Howard Schultz in hopes that "he hears my story," but they haven't gotten a reply yet. The company hasn't said much of anything lately about this mess, but at the time of that Center for Popular Democracy report, a rep noted there was still "work to do."