CPD IN THE NEWS

Federal Reserve Bank of Kansas City President Esther George will host a meeting Thursday with the activist group known as Fed Up ahead of the bank’s annual conference in Jackson Hole, Wyoming.

Other Fed officials also will attend the meeting, which will “focus on crucial and timely questions about monetary policy and Federal Reserve governance,” the group said in a statement. The meeting will be streamed online, the group said.

The Kansas City Fed confirmed the Aug. 25 meeting with the left-leaning Center for Popular Democracy’s Fed Up coalition.

Fed Up has been urging the central bank to hold off on raising interest rates until the economy improves further and working class households have seen more of the benefits of the expansion. The group also has criticized the Fed for lack of diversity among its 12 regional bank presidents.

The group has joined with Andrew Levin, a Dartmouth College professor and former Fed staffer, to propose changing the regional banks into fully government institutions from their quasi-public, quasi-private structure, and to eliminate regional board director seats that are reserved for bankers. The boards are responsible for appointing regional bank presidents who participate in the Fed’s policy meetings.

By David Harrison

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Education Votes - February 2, 2015, by Brian Washington - Proven or suspected fraud in Illinois’ charter school industry is suspected of carrying a price tag for taxpayers as high as $27.7 million—that’s according to a new report that some say adds more credence to the argument that these schools need more oversight and accountability.

The report, Illinois’ Charter School Fraud Risk Problem, alleges three fundamental problems with charter school oversight in the state:

Oversight depends heavily on whistleblowers and reporting by the charters themselves; General auditing techniques commissioned by the charters are not specifically designed to uncover fraud, only inaccuracies and inefficiencies; and Government agencies in Illinois tasked with investigating fraud are severely understaffed.

The Center for Popular Democracy (CPD), which authored the report, also claims to have uncovered massive deficiencies which, at a minimum, reportedly total at least $13.1 million.

“Here is yet another state where lawmakers continue to dump massive amounts of public school funds into the charter industry, yet no one is held accountable at any stage of the funding pipeline,” said NEA President Lily Eskelsen García, who represents about 3-million educators nationwide.

Despite the alleged problems outlined by CPD, as well as what critics charge is the inability of charter schools to show real improvement in relation to student achievement, charter school enrollment in the state has grown by 680-percent.

In the Chicago Public Schools district, the state’s largest public school system, the budget for charter schools, which are considered public schools because they are taxpayer funded, is $616 million for fiscal year 2015—an increase of 15 percent compared to fiscal year 2014.

“Operators (of charter schools) continue to line their pockets unchecked while public schools are forced to slash programs due to lack of funding,” said Eskelsen Garcia. “Lawmakers need to stop treating education budgets like a slush fund for corporate charter school operators and hold them accountable to the students and communities they are supposed to be serving.”

For Illinois, CPD is recommending that the state make major changes to its current oversight structure, including the following:

Mandated audits designed to detect and prevent fraud; Increased transparency and accountability; and A state-imposed moratorium on new charter schools until the state oversight system has been reformed.

“Illinois students, their families, and taxpayers cannot afford to keep losing millions of dollars in public funds at the hands of charter school operators, who essentially enforce their own rules,” said Eskelsen Garcia. “It’s time for the Illinois legislature, State Board of Education, and authorizers, like Chicago Public Schools, to step in and make sure these operators use the funds they are given to fulfill their own promises of a great education for their students. There should be a sound structure for oversight and accountability whenever taxpayer dollars are applied.”

CPD’s Illinois report follows two other state-specific reports–including  one which focused on the state of Pennsylvania. That report, issued last month, charged that fraud and abuse of the state’s charter school industry amounted to a $30 million loss for state taxpayers.

Meanwhile, another recent report by CPD alleges that nationwide taxpayers have lost $100 million due to charter school fraud.

“It’s time Illinois and all states are able to assure taxpayers that their charter oversight systems are airtight and dedicated to quality and community,” said Eskelsen García.

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iSchoolGuide - April 8, 2015, by Sara Guaglione - According to a new poll of registered voters, voters ranked lack of parental involvement and over-testing as top issues in U.S. education today.

Other education issues voters ranked included: cuts to funding for programs like art, music, and PE; too many students per class; recruiting first-rate teachers; and poverty and hunger's effect on student learning, according to the poll conducted by In the Public Interest and the Center for Popular Democracy. Interestingly, lack of choice was ranked last, despite the national attention surrounding charter schools.

Studies have shown over the years that parental involvement is crucial to a student's educational achievement. A report from Southwest Educational Development Laboratory titled A New Wave of Evidence concluded back in 2002 that "when schools, families, and community groups work together to support learning, children tend to do better in school, stay in school longer, and like school more."

Over-testing is an issue that has also taken the forefront in the nation's education debates, both in the classroom and in congressional buildings. As we previously reported, nearly every state in the country has an "opt out" movement from new Common Core standardized exams, according to Elizabeth Harris of The New York Times. Concerned parents taking to social media and school board meetings to protest have captured the attention of school officials.

According to the National Education Association's blog, the poll also found that 63 percent of voters rate the quality of education at public schools in their neighborhood as excellent or good and 68 percent hold a favorable view of public school teachers. Only 11 percent had an unfavorable view.

Voters are also more likely to say public schools in their neighborhood are getting better (31 percent) than getting worse (16 percent).

Overall, voters were supportive of charter schools but voted for proposals to make charters more effective, accountable, and transparent to taxpayers. Respondents wanted teacher training and qualifications, anti-fraud provisions, and measures to ensure high-need students are served.

More than 80 percent of voters supported regular audits of charter finances, public disclosure of how taxpayer money is spent, and requirements that charter operators open up their board meetings to parents and the public.

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Daily Kos - October 2, 2014, by Laura Clawson - Pennsylvania's charter schools are rife with fraud and mismanagement, as anyone who reads local newspapers knows. But a new report from the Center for Popular Democracy, "Integrity in Education, and Action United" details just how big the problem is. Pennsylvania charter school enrollment and funding is growing rapidly and without adequate oversight, and according to the report, there's been at least $30 million in fraud by charter school officials since 1997. For instance:

In 2012, the former CEO and founder of the New Media Technology Charter School in Philadelphia was sentenced to prison for stealing $522,000 in taxpayer money to prop up a restaurant, a health food store, and a private school. Media coverage of parent complaints of fiscal wrongdoing initially uncovered the fraud. Nicholas Tombetta, founder of the Pennsylvania Cyber Charter School, has been indicted for diverting $8 million of school funds for houses, a Florida condominium, and an airplane. In 2005, a former business associate of Tombetta surfaced allegations of fraud, which led to the investigation. Dorothy June Brown, founder of Laboratory, Ad Prima, Planet Abacus, and Agora Cyber charter schools, will be retried this year for allegedly defrauding the schools of $6.5 million and conspiring to conceal the fraud from 2007 to 2011. Two administrators plead guilty and testified against Brown in her first trial. In 2009, the Pennsylvania Department of Education conducted an audit of Agora after receiving complaints from parents of Agora students.

You'll notice that in each of those cases, it was complaints from parents or a tip from a business associate that led to investigations. Pennsylvania should be doing more to uncover wrongdoing before it's so blatant that parents are screaming about it. In Philadelphia, there are 86 charter schools and only two auditors. What's more, charter school auditors in Pennsylvania don't actively look for fraud; the report calls for expanded local audit authority, fraud risk assessments for all charter schools in the state, and targeted fraud audits. The report's authors also call for a moratorium on new charter schools until these oversight goals are met.

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