In Service Sector, No Rest for the Working
New York Times - February 21, 2015, by Steven Greenhouse - On the nights when she has just seven hours between shifts...
New York Times - February 21, 2015, by Steven Greenhouse - On the nights when she has just seven hours between shifts at a Taco Bell in Tampa, Fla., Shetara Brown drops off her three young children with her mother. After work, she catches a bus to her apartment, takes a shower to wash off the grease and sleeps three and a half hours before getting back on the bus to return to her job.
At Hudson County Community College in Jersey City, Ramsey Montanez struggles to stay alert on the mornings that he returns to his security guard station at 7 a.m., after wrapping up a 16-hour double shift at 11 p.m. the night before.
And on many Friday nights, Jeremy Little waits tables at a Perkins Restaurant & Bakery near Minneapolis and doesn’t climb into bed until 3 a.m. He returns by 10 a.m. for the breakfast rush, and sometimes feels so weary that he forgets to take rolls to some tables or to tell the chef whether customers wanted their steak medium rare.
“It makes me feel really tired,” Mr. Little said. “My body just aches.”
Employees are literally losing sleep as restaurants, retailers and many other businesses shrink the intervals between shifts and rely on smaller, leaner staffs to shave costs. These scheduling practices can take a toll on employees who have to squeeze commuting, family duties and sleep into fewer hours between shifts. The growing practice of the same workers closing the doors at night and returning to open them in the morning even has its own name: “clopening.”
“It’s very difficult for people to work these schedules, especially if they have other responsibilities,” said Susan J. Lambert, an expert on work-life issues and a professor of organizational theory at the University of Chicago. “This particular form of scheduling — not enough rest time between shifts — is particularly harmful.”
The United States decades ago moved away from the standard 9-to-5 job as the manufacturing economy gave way to one dominated by the service sector. And as businesses strive to serve consumers better by staying open late or round the clock, they are demanding more flexibility from employees in scheduling their hours, often assigning them to ever-changing shifts.
Workers and labor advocates are increasingly protesting these scheduling practices, which often include giving workers as little as two days’ advance notice for their weekly work schedule. These concerns have gained traction and translated into legislative proposals in several states, with proponents enviously pointing to the standard adopted for workers in the 28-nation European Union. It establishes “a minimum daily rest period of 11 consecutive hours per 24-hour period.”
Britain, Germany and several other countries interpret that to require that workers be given at least 11 hours between shifts, although waivers are permitted. “If a retail shop closes at midnight, the night-shift employees are not allowed to start before 11 o’clock the next morning,” said Gerhard Bosch, a sociology professor and expert on labor practices at the University of Duisburg-Essen in Germany.
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In the United States, no such national or state labor law or regulation governs the intervals between shifts, except for some particular jobs like airline pilots, although some unions have negotiated a minimum time for workers to be off, sometimes eight, 10 or 12 hours.
But at the state level this year, bills have been introduced in Maryland and Massachusetts and will be introduced in Minnesota on Monday, each of them calling on employers to give workers at least 11 hours between shifts and three weeks’ advance notice for schedules. Those proposals would require businesses to pay some time and a half whenever employees are called in before 11 hours have passed between shifts.
Paul Thissen, the Democratic leader of the Minnesota House of Representatives, supports the legislation. “When it comes to scheduling, the playing field is tilted very dramatically in favor of the employer,” Mr. Thissen said. “What we’re proposing is just trying to rebalance the playing field.”
Anthony Newby, executive director at Neighborhoods Organizing for Change, a Minneapolis-based group that advocates for worker rights, among other issues, said that clopenings have become a big issue in his region. “Clopenings are hurting many of our members; many are in the restaurant field and some in construction and nursing,” he said. “We worry it has an effect on safety — workers feel they’re on autopilot. It also has a big impact on families, on mothers trying to manage a family and arrange child care.”
Ms. Brown, who works as a cashier at Taco Bell, said her children — ages 5, 4 and 2 — don’t like it when she has just seven hours between shifts. That usually means they hardly see her for two nights in a row; they sleep at their grandmother’s both nights. On the second night, after just three and a half hours’ sleep the previous day, Ms. Brown says she stops by her mother’s for an hour or two to see her children, and then heads home to sleep.
“My kids say, ‘Mommy, I miss you,’ ” she said. “I get so tired it’s hard to function. I feel so exhausted. I don’t want my kids suffering not seeing me. I try to push to go see them.”
Although Ms. Brown dislikes clopenings, she doesn’t turn them down because she needs as many hours as she can get. She makes $8.10 an hour and works about 25 hours a week.
Brandon Wagner, who works for a Zara apparel store in Manhattan, often works from 1 p.m. until 10:30 p.m. or 11 p.m., getting back to his apartment in Brooklyn around midnight. He often must be back at work at 8 the next morning, and as a result he sleeps just five hours.
“When you question this, they give a shrug of the shoulder,” Mr. Wagner said. “They say, ‘Everybody does this. You have to put up with it or go somewhere else.’ ”
Last summer, Starbucks announced that it would curb clopenings on the same day that The New York Times published an article profiling a barista, Jannette Navarro, mother of a 4-year-old, who worked a scheduled shift that ended at 11 p.m. and began a new shift at 4 a.m.
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At the time, Cliff Burrows, Starbucks’s group president for the United States, said: “Partners should never be required to work an opening and a closing shift back-to-back. District managers must help store managers problem-solve issues specific to individual stores to make this happen.” (“Partners” is the term Starbucks uses for its employees.)
Neil Trautwein, a vice president with the National Retail Federation, acknowledged that some instances of scheduling were egregious, but he pointed to Starbucks’s voluntary response to argue that states should not enact any laws to address the issue.
“Advocates have it wrong to think you can legislate and just outlaw the process,” Mr. Trautwein said. “The market adjusts to the needs of workers.” He added that what Starbucks did “demonstrates that businesses listen to their employees and adjust.” (In response to complaints about schedules changing week to week, Walmart said on Thursday that it would give workers more predictable schedules.)
But several people who identified themselves as Starbucks employees complained on a Facebook private group page that they still were scheduled for clopenings, despite the company’s pronouncement. One worker in Texas wrote on Jan. 30, “I work every other Sunday as a closer, which is at 10:30 or really 11-ish, then scheduled at 6 a.m. the next morning.” Another worker in Southern California wrote, “As a matter of fact I clopen this weekend.”
Laurel Harper, a Starbucks spokeswoman, questioned the authenticity of the Facebook posts. She said company officials had held conversations nationwide “to make sure we are giving our partners the hours they want” and to prevent clopenings.
Some managers say there are workers who don’t mind clopenings — like students who have classes Monday through Friday and want to cram in a lot of weekend work hours to maximize their pay.
Tightly scheduled shifts seem to have become more common for a number of reasons. Many fast-food restaurants and other service businesses have high employee turnover, and as a result they are often left with only a few trusted workers who have the authority and experience to close at night and open in the morning. Professor Lambert said no studies had been done on the prevalence of clopenings nationwide.
Carrie Gleason, director of the fair workweek initiative at the Center for Popular Democracy, a liberal advocacy group, said one reason for the increasing prevalence of clopenings was that many companies had shifted scheduling responsibilities away from managers and to sophisticated software that she said was not programmed to prevent such short windows between shifts.
But David Ossip, chief executive of Ceridian, a human resources and payroll company, said that when his company provided scheduling software to companies, it generally recommended programming a mandated rest period. The software would then warn managers when an added shift violated that rest period.
“You would make sure you have a minimum rest period between shifts,” he said. “We would set up fairness results that call for regular working hours — not one day work at night, the next day work in the morning.” He added, “You have to be home for eight, 10 or 12 hours.”
Andy Iversen, a stocker at Linden Hills Co-op in Minneapolis, said the grocery store’s managers used to schedule him two or three times a week to work until 9 p.m., and then be back at 5 a.m.
“I was beyond exhausted,” he said, noting that he was getting to bed at midnight and waking around 3:45 a.m. At the time, he was pursuing a master’s degree and taking a course in neuroscience. “I couldn’t concentrate because I was so tired,” he said. “I had to drop out of class.”
Mr. Iversen praised his store’s managers for no longer giving him clopenings. Marshall Wright, the store’s produce manager, said, “We think it’s the right thing to do. We don’t feel people should work shifts like that.”
Mr. Iversen couldn’t agree more: “It doesn’t take that much empathy or reasoning to see that clopenings stink, and people don’t want to do it.”
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Inside the Avengers Cast’s One-Night-Only Performance of Our Town
Inside the Avengers Cast’s One-Night-Only Performance of Our Town
The Avengers, and friends, assembled in Atlanta on Monday night, though without their usual armor, shields, and...
The Avengers, and friends, assembled in Atlanta on Monday night, though without their usual armor, shields, and superpowers. The event, dreamed up by Scarlett Johansson, brought together some of the Marvel Cinematic Universe’s biggest stars—all in town filming Avengers: Infinity War at Atlanta’s Pinewood Studios—for a stage reading of Thornton Wilder’s theater classic Our Town, a benefit for hurricane relief in Puerto Rico.
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Group of Lawmakers Says Fed Fails to Diversify Leadership
Group of Lawmakers Says Fed Fails to Diversify Leadership
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its...
A group of Democratic senators and House members complained Thursday that the Federal Reserve has failed to meet its obligation to build a diverse leadership that includes enough women and minorities, and it wants Chair Janet Yellen to remedy the issue.
The lawmakers said a more inclusive leadership that properly reflects gender, race, ethnicity, occupation and economic background is needed to ensure fairness in Fed policy.
The Democratic lawmakers — 11 senators and 116 in the House — expressed their concerns in a letter to Yellen. The Fed's leadership "remains overwhelmingly and disproportionately white and male," they wrote.
In its search for directors who oversee the Fed's 12 regional banks for terms next year, the Fed's board of governors should cast a wider net for African American, Latino and female candidates, as well as qualified people from labor, consumer and community organizations, the lawmakers told Yellen.
A Fed spokesman, David Skidmore, responded that the central bank is "committed to fostering diversity — by race, ethnicity, gender and professional background — within its leadership ranks."
"We have focused considerable attention in recent years on recruiting directors with diverse backgrounds and experiences," Skidmore said. "By law, we consider the interests of agriculture, commerce, industry, services, labor and consumers. We also are aiming to increase ethnic and gender diversity."
The senators signing the letter include Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont, who is challenging front-runner Hillary Clinton for the Democratic presidential nomination. Warren and Sanders are the most outspoken Democratic critics on economic and financial issues.
The 116 House members, representing more than half the 188 Democrats in the House, are led by Rep. John Conyers of Michigan, the senior Democrat on the Judiciary Committee.
The letter cites data from the Center for Popular Democracy, a liberal advocacy group. The data indicates that 83 percent of the directors who supervise the Fed's regional banks are white and that nearly three-quarters of them are men. All the members of the Fed's committee that sets interest-rate policy are white, and 60 percent are men.
The Fed counters that the proportion of minority directors on the boards of its regional banks and their branches has risen from 16 percent in 2010 to 24 percent this year, and that the proportion of female directors has increased from 23 percent to 30 percent. Forty-six percent of the directors represent diversity in race and-or gender, the Fed said.
"We are striving to continue that progress," Skidmore said.
The data cited in the congressional letter do not include directors of the regional banks' branches, only the banks themselves.
On Thursday, Clinton's campaign said she shares the lawmakers' concerns. A spokesman, Jesse Ferguson, said Clinton thinks "the Fed needs to be more representative of America as a whole." She also believes there no longer should be three private-sector bankers sitting on each regional Fed bank board, Ferguson said.
That change would require new legislation.
Yellen, the first woman to lead the central bank in its 100-plus-year history, has stressed in her public statements the importance of overcoming economic inequality.
The five current Fed governors are white. Two, including Yellen, are women.
By MARCY GORDON
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One More Day of Protests Planned in St. Louis Area
New York Times - October 13, 2014, by Minica Davey and Alan Blinder - After demonstrations that varied from...
New York Times - October 13, 2014, by Minica Davey and Alan Blinder - After demonstrations that varied from choreographed marches to tense late-night encounters with law enforcement agents, protesters said they expected a series of acts of civil disobedience around the region on Monday, the last of four days of organized protest that has drawn throngs of people to the St. Louis area over questions about police conduct.
Leaders for the protests provided few details of their plans, except to say they would be employing a strategy used by demonstrators in North Carolina, who last year began staging weekly protests known as “Moral Mondays” in response to actions by the state government, which was newly controlled by Republicans. Those protests in Raleigh, the state capital, resulted in hundreds of arrests and served as a template for similar, smaller demonstrations across the South. The website for what organizers here have called a “Weekend of Resistance” said simply, “We’ll be hosting a series of actions throughout the Ferguson and St. Louis area.”
It is an area on edge after more than two months of demonstrations that began in Ferguson, the St. Louis suburb where an unarmed black teenager was fatally shot by a white police officer in August. In recent days, the displays of anger have spread to the city of St. Louis, where protesters have appeared at the symphony hall, outside playoff games for the St. Louis Cardinals and near the neighborhood where another black teenager was killed last week by a white off-duty police officer.
Early Sunday morning, tensions mounted between the police, dressed in riot gear, and a group of demonstrators who held a sit-in at the entrance of a St. Louis convenience store and refused to move. Seventeen people were arrested on accusations of unlawful assembly, pepper spray was used by some officers, and D. Samuel Dotson III, the city’s police chief, said he had seen a rock thrown at an officer and heard of other rocks being hurled.
Although some protesters spoke of plans for nonviolent demonstrations on Monday, organizers warned that frustrations had intensified because of the police response on Sunday morning. “Instead of de-escalating rising tensions in the city, Chief Dotson’s comments are inciting anger and making matters worse,” the organizers of many of the protests said in a statement early Sunday. The demonstrators, they said, “showed the best of our democracy, and the St. Louis police demonstrated the worst of their out-of-control law enforcement agency. The police brutalized peaceful people protesting their brutality.”
One question seemed to eclipse all other concerns here, among the protesters and the police alike: What will happen when a grand jury considering charges against Darren Wilson, the Ferguson police officer who shot Michael Brown, 18, on Aug. 9, returns its decision, perhaps next month?
“It may clearly be a flash point,” the Rev. Osagyefo Sekou said of the possibility that Officer Wilson would not be prosecuted. “People are going to be angry. There are definitely going to be protests.” In an interview before he spoke at a rally Sunday night, he added, “But this is part of a long struggle. It is part of a long struggle against police brutality.”
Chief Dotson, who walked amid the crowd during some of the weekend demonstrations and defended the police handling of the standoff early Sunday, was unwilling to make predictions. “I don’t have a crystal ball,” he said in an interview on Sunday afternoon. “We hope that the community recognizes that the process works.”
Preparing for Monday’s events, several dozen demonstrators sat in a church sanctuary on Sunday morning for what amounted to a tutorial on tactics of civil disobedience. Lisa Fithian, an experienced activist from Austin, Tex., pressed audience members to call out the reasons they were there. She heard responses like “anger” and “solidarity” from a crowd that included people from the American Federation of Teachers and St. Louis’s Coalition of Artists for Peace.
In a parking lot outside the church, Ms. Fithian spoke about breathing deeply to stay calm, especially as the authorities close in on a demonstration. She talked of remaining aware of where the police officers were posted along nearby streets. She explained possible responses by the authorities to an array of actions by a protester being taken into custody. She demonstrated the mechanics of going limp.
“It’s really essential to practice it,” she said. The crowd eventually returned to the sanctuary, where journalists were asked to leave. The organizers said they would be planning specifics of the protests.
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Bankers and Economists Fear a Spate of Threats to Global Growth
Bankers and Economists Fear a Spate of Threats to Global Growth
GRAND TETON NATIONAL PARK, Wyo. — In the decade since the financial crisis, economic policy makers, professors and...
GRAND TETON NATIONAL PARK, Wyo. — In the decade since the financial crisis, economic policy makers, professors and protesters have gathered here every August to argue about the best ways to return to faster economic growth.
This year, they gave up.
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The #MeToo Movement and Everyday Industries, Part 2
The #MeToo Movement and Everyday Industries, Part 2
The Center for Popular Democracy reports that 18 percent of women have upper-management positions, even though they...
The Center for Popular Democracy reports that 18 percent of women have upper-management positions, even though they make up 60 percent of first-line supervisors. People of color, namely black and Latino, are also delegated to low-level, low-paying positions, such as cashiering. Older, experienced employees often do not receive benefits or long-term rewards, according to The Washington Post.
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Hundreds of activists crashed Senate GOP offices, yelling about Medicaid and getting arrested
Hundreds of activists crashed Senate GOP offices, yelling about Medicaid and getting arrested
Art Jackson was diagnosed with HIV in 1989 and given three years to live. Almost 30 years later, the social worker...
Art Jackson was diagnosed with HIV in 1989 and given three years to live. Almost 30 years later, the social worker entered the offices of Sen. Richard Burr (R-NC) — and began shouting that the Republicans’ Senate health care bill must be defeated.
“I’ve lived each day I’ve been given to speak for other who can’t,” said Jackson, 52, of Fayetteville, North Carolina, on Monday afternoon minutes before entering Burr’s office with about 10 other activists from his home state. “We have to stop this.”
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The Retail Industry is Marginalizing Women and People of Color. This Has to Change.
The Retail Industry is Marginalizing Women and People of Color. This Has to Change.
Source: In These Times...
Source: In These Times
The National Retail Federation is fond of pointing out that “retail means jobs.” And it’s true: the retail industry today provides one in ten private-sector jobs in the U.S., a number set to grow in the next decade.
Yet new findings show those jobs may be keeping retail workers and their families from rising up the career ladder, exacerbating our country’s growing inequality. The findings from the Center for Popular Democracy demonstrate that, for women and people of color especially, working in retail often means instability and low pay. Both groups make up the lion’s share of cashiers, movers, and other poorly paid positions and barely figure in the upper ranks of management. In general merchandise—including big-box stores such as Target and Wal-Mart—women hold more than 80 percent of cashier jobs, the lowest-paid position. And in the food and beverage industry, women make up approximately half of the workforce but less than a fifth of managers.
People of color in the retail industry are often relegated to the least lucrative jobs as well. In home and garden stores like Home Depot and Lowes, for example, employees of color account for 24 percent of the total workforce—but 36 percent of jobs that pay least.
The findings are especially disappointing given the opportunities available for those who succeed. Certain areas of retail, such as home and garden stores and car dealers, offer living wages to workers—but both women and people of color are largely shut out of these sub-sectors. And management jobs across the industry provide wages and benefits that can allow workers to support themselves and their families—but they are closed off to many.
Reducing these disparities will take more than a bigger paycheck. Retailers must make a concerted effort to establish policies that ensure women and people of color are equally represented in management positions and develop more robust training programs for workers just starting out that give them the chance to advance.
Many retailers have training policies in place, but they can be far from meaningful. Wal-Mart, for example, recently announced it was raising wages to $10, dependent on completion of a six-month training program—an onerous requirement to earn a pitifully low wage that lags well behind the retail sector average. Real training can introduce employees to a range of job duties and responsibilities, incentivizing them to learn specialized skills that allow workers to pick up shifts, advance to higher-paying positions, and bring home a full-time paycheck. Sectors like finance long ago recognized internal barriers to promotion and created programs to promote equal opportunity. Why do we not expect the same of retail?
Retailers that lack such programs, from Walmart to Gristedes, have faced multi-million-dollar class-action lawsuits from women harmed by policies that prevented them from moving upward. Companies that fail to enact real advancement policies can expect similar pushback.
Moreover, workers at the lowest levels are doubly punished with erratic, last-minute scheduling that wreaks havoc on their lives. These schedules are particularly difficult for women. Unable to find childcare at the last minute or unwilling to miss bedtime every night, moms in retail are often deemed ineligible for promotion. Ironically, climbing up the job ladder is the only way to obtain stable hours that let working women and their families thrive.
As these practices have grown worse, many workers have started fighting back, demanding schedules that let them plan their lives, be there for their families and pursue education.
Facing outside pressure, policymakers have also stepped in and accelerated the pace of change. Retailers demonstrated how fast they could change last year when they received a letter from New York’s Attorney General into their use of on-call scheduling. Within months, major retailers like The Gap agreed to significant reforms—and a quarter of a million workers no longer had to put their life on hold for a shift.
State and city policymakers are also leading the way to raise workplace standards, pursuing policies to raise wages to $15 per hour, secure improved work schedules, and guarantee earned sick time. Creating higher-paying, more secure retail jobs will boost the economy, as the low-income retail workforce will likely use any additional earnings to cover basic expenses.
Yet if industry leaders want retail to mean good jobs, they must step up to the plate. Retail workers are the neighbors who shop in our local small businesses; parents trying to help their kids with homework; students working their way through college. It’s clear that retail jobs are holding too many women and people of color back. Rather than superficial fixes, we need bold solutions that move all retail workers forward and allow their families to thrive.
Report: Millions of Dollars in Fraud, Waste Found in Charter School Sector
The Washington Post - April 28, 2015, by Valerie Strauss - A new report released on Tuesday details fraud and waste...
The Washington Post - April 28, 2015, by Valerie Strauss - A new report released on Tuesday details fraud and waste totaling more than $200 million of uncovered fraud and waste of taxpayer funds in the charter school sector, but says the total is impossible to know because there is not sufficient oversight over these schools. It calls on Congress to include safeguards in legislation being considered to succeed the federal No Child Left Behind law.
The report, titled “The Tip of the Iceberg: Charter School Vulnerabilities To Waste, Fraud, And Abuse,” was released jointly by the nonprofit organizations Alliance to Reclaim Our Schools and the Center for Popular Democracy. It 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 last year’s report.
It notes that these figures only represent fraud and waste in the charter sector uncovered so far, and that the total that federal, state and local governments “stand to lose” in 2015 is probably more than $1.4 billion. It says, “The vast majority of the fraud perpetrated by charter officials will go undetected because the federal government, the states, and local charter authorizers lack the oversight necessary to detect the fraud.”
The report makes these policy recommendations:
■ Mandate audits that are specifically designed to detect and prevent fraud, and increase the transparency and accountability of charter school operators and managers. ■ Clear planning-based public investments to ensure that any expansions of charter school investments ensure equity, transparency, and accountability. ■ Increase transparency and accountability to ensure that charter schools provide the information necessary for state agencies to detect and prevent fraud.
It also says:
State and federal lawmakers should act now to put systems in place to prevent fraud, waste, abuse and mismanagement. While the majority of state legislative sessions are coming to an end, there is an opportunity to address the charter school fraud problem on a federal level by including strong oversight requirements in the Elementary and Secondary Education Act (ESEA), which is currently being debated in Congress. Unfortunately, some ESEA proposals do very little reduce the vulnerabilities that exist in the current law. If the Act is passed without the inclusion of the reforms outlined in this report, taxpayers stand to lose millions more dollars to charter school fraud, waste, abuse, and mismanagement.
The charter school sector has expanded significantly in the last decade and now educates about 5 percent of the students enrolled in public schools. The Obama administration has supported the spread of charter schools; President Obama’s proposed budget for fiscal year 2016 includes $375 million specifically for charters, a 48 percent increase over last year’s actual budget.
Proponents say charters offer choices for parents and competition for traditional public schools. Critics say that most charters don’t perform any better — and some of them worse — than traditional public schools, take resources away from school districts, and are part of an effort to privatize public education.
The report says that any “effective, comprehensive fraud prevention system” should include:
■ Taking proactive steps to educate all staff and board members about fraud; ■ Ensuring that one executive-level manager coordinates and oversees the fraud risk assessment and reports to the board of directors, oversight bodies, and school community; ■ Implementing reporting procedures that include conflict disclosure, whistleblower protections, and a clear investigation process; ■ Undergoing and posting a fraud risk assessment conducted by a consultant expert in applicable standards, key risk indicators, anti-fraud methodology, control activities, and detection procedures; and ■ Developing and implementing quality assurance, continuous monitoring, and, where necessary, correction action plans, with clear benchmarks and reporting
The report details cases across the country, among them:
The District of Columbia In February 2015, the DC Public Charter School Board unanimously voted to revoke the charter of the Dorothy I. Height Community Academy Public Charter School. The DC Attorney General is suing the founder, Kent Amos, for diverting public education funding to a private company for his personal profit. That private management company paid Amos more than $2.5 million over the last 2 years. Over the past 10 years, the school has paid the private entity more than $14 million and, while costs to the private company declined over that time, management fees rose. The charter board’s oversight report showed “no pattern of fiscal mismanagement.” Members of the DC Public Charter School Board have described their limited ability to oversee for-profit management companies, which face no requirement to disclose salaries or other pertinent information.
Michigan In April 2014, Steven Ingersoll, founder of Grand Traverse Academy, was convicted on federal fraud and tax evasion. He did not report $2 million of taxable income in 2009 and 2010. The school’s audit revealed a $2.3 million prepayment to Ingersoll’s school management company. The school’s later decision to write down $1.6 million of the loan put the school in a deficit position for the first time. Ingersoll then used half of a $.8 million loan for school construction to pay down some of his debt to the school.13 After the founder’s ouster, his daughter-in-law continued to handle the finances of the school.
Ohio In January 2015, the state auditor released a report of the results of unannounced visits by inspectors to 30 charter schools. In nearly half of the schools, the school-provided headcount was significantly higher than the auditors’ headcount. Schools are funded based on headcount, so these inflated figures amount to taxpayer dollars siphoned away from students. Among the seven schools with the most extreme variances between reported head count and the auditors’ headcount, almost 900 students were missing, at a cost of roughly $5.7 million.16 Auditors identified eight other schools with troubling, but less significant variances. In June 2014, a grand jury indicted the superintendent and 2 board members of Arise! Academy in Dayton of soliciting and accepting bribes in exchange for awarding a “lucrative” consulting contract to a North Carolina-based company. The contract was worth $420,919 and the charter personnel received kickbacks in the form of cash, travel, and payments to a separate business.
California In July 2014, the Los Angeles Unified School District performed a forensic audit of Magnolia Public Schools. They found that the charter-school chain used education dollars to pay for six nonemployees’ immigration costs and could not justify $3 million in expenses over four years to outsource curriculum development, professional training, and human resources services that the school itself reported doing.
4 days ago
4 days ago