Kentucky’s first charter school director resigns after less than a year. Here’s why.

Source: Valarie Honeycutt Spears, Lexington Herald-Leader, May 9, 2018

Less than a year after he was hired as the first director of the Kentucky Department of Education’s charter school division, Earl Simms said he is resigning May 25 so that his wife can go back to her previous job in St. Louis. Simms told WDRB-TV in Louisville and the Herald-Leader that he was not leaving because former Kentucky Education Commissioner Stephen Pruitt suddenly resigned in April at a state school board meeting, one day after Gov. Matt Bevin appointed several new board members. The board of all-Bevin appointees that same day hired charter school proponent Wayne D. Lewis Jr. as an interim Commissioner. … Though the charter school movement appears to be stalled, Lewis has said he will work with Kentucky Department of Education officials to determine if there is a path for charter schools that doesn’t require the General Assembly to approve a funding mechanism. …

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A closer look at the future of charter schools in Kentucky
Source: Emilie Arroyo, WKYT, April 18, 2018

The Kentucky Board of Education is taking a new direction after the resignation of education commissioner Dr. Stephen Pruitt and Gov. Matt Bevin’s appointments of new board members this week. Many expect that direction to be a stronger push for charter schools, but Kentucky’s legislature ended its 2018 session with no funding process in place. … While it’s unclear when Kentucky will see it’s first charter school, we do know how it will work. …

Kentucky Lawmakers Approve Charter School Law
Source: Lesli A. Maxwell, Education Week, March 15, 2017

After years of failed attempts, Kentucky lawmakers have approved a charter school law. The measure passed the state Senate on a vote of 23-15 Wednesday afternoon, largely along party lines. Republican Gov. Matt Bevin—an enthusiastic supporter of charters—is expected to sign the measure. The Kentucky House approved the bill—HB 520—last week and will still have to sign off on changes made by the Senate. … Kentucky has been one of the hardest places to pass a charter law, but with the 2016 election, Republicans in the state took control of the legislature and the governorship, clearing the way for a charter bill to succeed. The bill says nothing about how charters in Kentucky will be funded. Under its provisions, there will be no limit on the number of charter schools that can be authorized. … And while the bill says that parents, community members, public organizations, school administrators, and nonprofits can apply to operate a charter school, there is nothing in the legislation that prevents charter school operators from contracting out all of their management and operations to a for-profit entity. …

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Waste Management sues over ‘arbitrary’ bidding process in Carson, California

Source: Ellen Ryan, WasteDive, May 9, 2018

Claiming that its bid would have brought Carson 15 times more revenue than the eventual winner’s, Waste Management — a major player across the state — wants Los Angeles Superior Court to overturn the new contract and restart the bidding process. This is not the first time a waste collection company has turned to the legal system over a bidding loss. Late last year Republic Services sued Middletown, New Jersey, claiming the township violated state law in awarding a five-year hauling contract to Central Jersey Waste and Recycling. … Meanwhile, public complaints have grown as the City of Los Angeles revamped its waste hauling system in recent months, and citizens attempted a referendum to end it. Waste Management is one of the companies involved in the multi-zone, supposedly more efficient system that has broken down into complaints of lapsed service and higher fees. …

Privatized student housing – Four key trends will differentiate older and newer P3 projects next year

Source: Moody’s Investors Service, May 1, 2018 (Subscription Required)

Privatized student housing projects are vulnerable to negative pressures in the higher education sector, but will hold steady because of solid real estate fundamentals and marginally improving financial performance. … Examining how trends differ between older projects that have been operating for four years or more (seasoned) and new construction that opened in 2015 or later (recent) underscores how a project’s early years carry the most risk, seasoned projects’ upside potential is limited and no project is immune from an unfavorable operating environment. … Rent growth trend diverges for seasoned projects. … Sector maintains solid occupancy despite disappointing initial lease up at some new projects. … Financial performance strengthens overall, but year-to-year fluctuations at individual projects are the norm. … Unfavorable operating conditions contributed to five downgrades last year. …

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U.S. public universities turning to private sector to meet campus needs
Source: Stephanie Kelly, Reuters, August 26, 2016

U.S. public universities are increasingly turning to public-private partnerships to develop student housing and other campus projects, sometimes using the structure to transfer borrowing and liability risks to the private sector. Over the last five years, there has been an “uptick” in universities and colleges leveraging the private sector to deliver housing needs, said Kevin Wayer, an international director and co-president of the Public Institutions group at commercial real estate firm Jones Lang LaSalle. … Use of P3s can contribute to reduced debt on universities’ balance sheets, said Todd Duncan, assistant vice president of housing, food and retail services at the University of Cincinnati’s main campus. While still only a “fraction” of the U.S. municipal infrastructure market, the P3 market is building, Moody’s Investors Service said in a report issued in March. … Universities might engage in P3s for a number of different reasons, including the efficiency that developers can bring to projects, Duncan said. Increased operating costs for institutions and decreased state contributions have led to a financing gap, said Kurt Ehlers, managing director at Corvias Campus Living, a development group. From fiscal 2008 to fiscal year 2016, state spending per student at public two- and four-year colleges decreased 18 percent, according to Michael Mitchell, a senior policy analyst at the Washington, D.C.-based Center on Budget and Policy Priorities. The National Council for Public-Private Partnerships, a non-profit that advocates for P3s, lists 18 types of P3 partnership structures on its website. The council did not have a national figure for how much money is being spent on higher education P3 projects. …

Parking meter deal keeps getting worse for city as meter revenues rise

Source: Fran Spielman, Chicago Sun Times, May 14, 2018

Chicago’s parking meter system raked in $134.2 million last year, putting private investors on pace to recoup their entire $1.16 billion investment by 2021 with 62 years to go in the lease, the latest annual audit shows. Four underground, city-owned parking garages took in $34 million in 2017, while the privatized Chicago Skyway generated $99.9 million in cash, separate audits of those assets show. Not a penny of those revenues, once a mainstay for city government, went to ease the avalanche of tax increases imposed by Mayor Rahm Emanuel to solve the city’s $36 billion pension crisis. That’s because all three of those assets were unloaded by former Mayor Richard M. Daley, who used the money to avoid raising property taxes while city employee pension funds sunk deeper in the hole. …

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Parking meters, garages took in $156M — but city won’t see a cent
Source: Mick Dumke and Chris Fusco, Chicago Sun-Times, February 13, 2017

Chicago’s parking-meter system took in $121.7 million last year, while four underground city-owned garages reaped another $34.7 million — with not a penny of that money going to the cash-strapped city government. Instead, the $156.3 million pot of parking cash went to private investors who control the meters and garages under deals cut by former Mayor Richard M. Daley and rubber-stamped by the City Council. … Chicago Parking Meters — formed by banking giant Morgan Stanley and other financial partners — paid the city $1.15 billion to manage the meter system and pocket the money fed into it for the next 75 years. The city took in $23.8 million from the meters in 2008, the last year before CPM took over the system. In the seven years since, the meter company has reported a total of $778.6 million in revenues. It’s on pace to make back what it paid the city by 2020, with more than 60 years of meter money still to come. … The garage agreement has also sent a stream of money into the coffers of private investors. … Over the nine years of the deal, the facilities have generated $292.6 million in revenue for their private operators. … Last week, the rights to the garages were sold to a group of foreign investors.

A Tale of Two P3s
Source: Yvette Shields, Bond Buyer, July 7, 2016

Chicago’s first mistake in its much-maligned parking meter lease was its choice of asset. That’s one conclusion of a report released Thursday by the Manhattan Institute for Policy Research that looks at public-private partnerships and compares the details of two deals – Chicago’s nearly $1.2 billion 75-year meter system lease and Indiana’s $3.9 billion 75-year lease of the Indiana Toll Road. The Indiana deal is held up as a model while the Chicago parking lease offers a roadmap of pitfalls to avoid. …

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Stalled contract talks impact dozens of CSEA union workers

Source: News 12, May 14, 2018

Stalled contract talks are affecting dozens of union workers in Middletown. Middletown CSEA workers have been without a contract since 2014. City officials say the sticking points are money and a cost-saving plan to privatize its Sanitation Department. Union representatives say members won’t agree to “sell out” co-workers for a raise, but Mayor Joe DeStefano says the union already came to an agreement with the city months ago but hasn’t brought it for a vote. …

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Middletown, sanitation union clash over privatization
Source: James Nani, Times Herald-Record, June 25, 2017
 
Major changes to city sanitation services are unlikely to materialize this year after negotiations between city and union officials to privatize waste-hauling reached an impasse. The city and the CSEA union, that represents more than 100 city workers and about 14 city sanitation workers, had been negotiating a new contract since late 2014. … CSEA Southern Region President Billy Riccaldo has claimed that the costs of outsourced sanitation have “spiraled out of control in many communities after initial lowball bids” and that outsourcing means surrendering control on prices, scheduling and other factors that can affect price and inconvenience residents. Jessica Ladlee, a CSEA spokeswoman, said members do not want to trade negotiating people out of their union for salary increases.

Middletown explores outsourcing waste hauling
Source: James Nani, Record Online, May 2, 2017

Middletown officials are in negotiations with the union representing city sanitation workers as the city explores outsourcing waste hauling, a move that could eliminate the 14-member department. The talks with the union come as Middletown considers two options to reduce the cost of city sanitation services: either privatizing the services or downsizing and automating part of the department. … But under a push by Alderman Joe Masi, the city last released a request for proposals on the costs of private waste haulers to take over all waste services. As part of the request, any private hauler who wins a contract with the city would have to hire all city sanitation workers for one year. The move has met with resistance by the CSEA, which represents city sanitation workers. …

Opinion: Rebuilding Schools, Bridges—and Lives

Source: Richard Trumka and Boston Mayor Marty Walsh, Wall Street Journal, May 14, 2018

As unions, businesses, engineers and policy makers celebrate Infrastructure Week from May 14-21, we’re reflecting on the investments that add value to America. For every dollar a country spends on public infrastructure, it gets back nearly $3, according to a 2014 study from the International Monetary Fund. Keep this in mind when you hear that the American Society of Civil Engineers, or ASCE, has called for $2 trillion to repair, renovate or replace water lines, public schools, bridges and mass transit systems. On top of that, another $2 trillion could make America the global leader in the infrastructure technologies of the future, such as high-speed rail and smart utilities. … When you see that the ASCE’s infrastructure report card gives the nation overall a D+, don’t hang your head. The U.S. can get that grade up. But it won’t happen with a plan like President Trump’s , which would cut Washington’s contribution to infrastructure projects from 80% to 20%, quadrupling the burden on cash-strapped cities and states. The true way forward is to do the opposite: Put the federal government back in the business of building America’s future. …

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States That Raise Tolls and Taxes Will Have an Edge in Getting DOT Funds 
Source: Ted Mann, Wall Street Journal, April 27, 2018

States and cities that raise taxes and tolls will have a better chance at winning federal money for roads and bridges, part of a Trump administration strategy to have states carry a bigger portion of infrastructure spending. The move is a result of a Transportation Department overhaul to a popular infrastructure grant program, giving it a new name and tweaking the criteria that will determine which project applications will win federal funding. Under the overhaul, which was launched last week, applicants for grants this year will be judged in part on whether they can show that they have generated “new, non-Federal revenue” to help cover project costs, according to a DOT document. That will mean local agencies that raise taxes or tolls to pay for bridges, transit lines or road improvements will be more likely to win some of the $1.5 billion pool of funding authorized for the program this year. …

Trump infrastructure policy adviser to leave White House
Source: Mallory Shelbourne, The Hill, April 3, 2018
 
DJ Gribbin, President Trump’s infrastructure policy adviser, is departing the White House as the administration’s rebuilding plan appears to have hit a wall in Congress. Gribbin, who led the Trump administration’s push for an infrastructure proposal that was released in February, is “moving on to new opportunities,” according to a White House official. …

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Puerto Rico’s Teachers Battle for the Schools Their Students Deserve

Source: Jesse Hagopian, The Progressive, May 9, 2018
 
On May Day, thousands of Puerto Rican teachers, parents, and students launched strikes and boycotts to push back against austerity measures that would close nearly 300 schools, lay off 7,000 teachers, convert public schools into privatized charters, and cut public sector pensions. I spoke with Mercedes Martinez, President of Teachers Federation of Puerto Rico, about the neoliberal attack on the schools and public sector, the worker strikes and boycotts of May Day, and the brutal response of the police. …

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Puerto Rico Plans to Shutter 283 Schools
Source: AJ Vicens, Mother Jones, April 6, 2018
 
The Puerto Rico Department of Education announced late Thursday that it would close 283 public schools next school year, citing a decline in enrollment of nearly 39,000 students and the island’s ongoing budget crisis.  “Our children deserve the best education we are capable of giving them taking into account the fiscal reality of Puerto Rico,” Puerto Rico Secretary of Education Julia Keleher said in a statement issued in Spanish Thursday evening. “Therefore we are working hard to develop a budget that will allow us to focus resources on student needs and improve the quality of teaching.” In early February, Keleher and Puerto Rico Gov. Ricardo Rosselló introduced a sweeping education reform plan that called for closing several hundred schools over the next several years and introducing charter schools to the island. The governor estimates the plan will help save $466 million per year by 2022, according to figures in his most recent fiscal plan meant to address the island’s staggering $120 billion in outstanding debts and obligations. Those figures do not take into account the estimated $95 billion in damage caused by Hurricane Maria. …

6 Months After Maria, Puerto Ricans Face a New Threat—Education Reform
Source: Yarimar Bonilla, Rima Brusi and Natasha Lycia Ora Bannan, The Nation, March 21, 2018
 
Six months after Hurricane Maria, Puerto Ricans are understandably frustrated with their government officials. One might expect discontent to center around the head of the power company who oversaw months of blackouts or the governor who awarded hundreds of millions of dollars in private contracts with little or no oversight. But instead it is the secretary of the department of education, Philadelphia-native Julia Keleher, who has become the focus of people’s anger. In the past few weeks, Puerto Ricans have been calling for her resignation, making her the object of a viral hashtag campaign, #JuliaGoHome. On Monday, the school system was paralyzed by a strike as thousands of teachers protested the education-reform bill her office has spearheaded. …

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Does KanCare work? The state’s data is so bad, legislative auditors can’t tell

Source: Andy Marso, Kansas City Star, May 9, 2018
 
A debate has raged in Kansas for years over KanCare, the privatized Medicaid plan enacted by Sam Brownback in 2013. Brownback and his successor, Jeff Colyer, have touted the program as a tremendous success that has saved the state $1 billion while improving care for 400,000 low-income and disabled Kansans. Democrats, provider groups and people who care for disabled Kansans have said it’s rife with billing problems, secrecy and decisions based more on money than quality care. … After a year of work, those auditors recently released their determination: the state’s data is so bad, there’s no way to know. “These data issues limited our ability to conclude with certainty on KanCare’s effect on service use and limited our ability to interpret cost trends,” the auditors wrote. “More significantly, data reliability issues entirely prevented us from evaluating KanCare’s effect on beneficiaries’ health outcomes.” …

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Kansas lawmakers dispute over possible passing of current KanCare 2.0 plan
Source: Kate Inman, Four States, April 23, 2018
 
Some Kansas lawmakers say they’re frustrated the state could move forward with the current version of KanCare 2.0.  The KanCare Oversight Committee heard more than five hours of testimony today from dozens of groups and people calling on the state to not move forward with KanCare 2.0. KanCare is the state’s privatized medicaid program.   During the committee meeting, some lawmakers wanted to revoke the panel’s previous support for Governor Colyer’s plan for KanCare 2.0. Under his plan, the state would implement work requirements and other eligibility rules.  The committee chairman says there isn’t enough time for lawmakers to recommend changes to KanCare 2.0 while others say it’s their job. …

Kansas gives Medicaid contractor until June 1 to improve
Source: Associated Press, February 17, 2018
 
The company processing Medicaid applications in Kansas faces fines of up to $250,000 a day and the loss of its state contract because it is far out of compliance with the required performance standards.  The Wichita Eagle reports that state sent Maximus a noncompliance letter Jan. 30 that gives the Virginia-based company until June 1 to fix problems that include only 40 percent accuracy on financial payments. State Medicaid Director Jon Hamdorf disclosed the action during a meeting of a legislative oversight committee Friday.  If the company fails to shape up, it could face fines retroactive to the beginning of the year, possibly totaling tens of millions of dollars. …

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Kansas agency chief on no-bid contracts: ‘It’s all public record’

Source: Jonathan Shorman, Wichita Eagle, May 11, 2018
 
Kansas lawmakers voiced frustration this week that they were unaware the state’s revenue agency had entered into no-bid contracts worth millions, including one to outsource dozens of employees. But the agency’s chief said Friday they had been properly informed. “We’ve reported to the legislative committees on every phase of this where we were supposed to, that we followed the law the way we were supposed to follow it, that it’s all public record what’s been done,” said Revenue Secretary Sam Williams. … Sarah LaFrenz, president of the Kansas Organization of State Employees, said there is a difference between posting a public notice online and talking openly about what is going to happen under the contract. “That’s the transparency when people are going to lose their jobs — that’s what people are looking for,” LaFrenz said. … LaFrenz said to her knowledge employees last fall likely understood that the agency would be contracting but did not know that they would lose their jobs. …

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Outsourcing at Kansas Department of Revenue could mean dozens of layoffs
Source: Associated Press, May 9, 2018
 
The Kansas Department of Revenue will lay off nearly 60 employees as it moves its information technology service to CGI Technologies, which was given no-bid contracts worth nearly $60 million despite criticism of its operations in the rollout of the federal health care website in 2013. The 56 workers losing their jobs will be allowed to apply for CGI jobs in Topeka or could be matched with other jobs in the revenue department or other areas of state government, department spokeswoman Rachel Whitten said Wednesday. …

Charter schools cost three California school districts more than $142 million, think tank claims

Source: Lisa Fernandez, KTVU, May 9, 2018
 
Three California school districts, including two in the Bay Area,  lost a total of  $142.5 million to public charter schools during the 2016-17 school year, according to a report conducted by a think tank that critics claim is politically biased. The Oakland Unified School District lost $57.3 million and San Jose’s East Side Union High School District $19.3 million, according to In The Public Interest, a nonprofit centered on ” privatization and responsible contracting.” The report, “Cost of Charter Schools for Public School District,” published Tuesday, compared the school districts’ 2016-17 budgets to what they could have been if 15,487 students in Oakland’s charters and 4,811 in East Side Union’s charters enrolled in traditional public schools instead. The report also found that the San Diego Unified School District lost $65.9 million by the “unchecked expansion of privately managed charter school.” …

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