Education Funding vs. the Restaurant Industry


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Who needs the government’s help more: restaurants or public schools? Which do we value more as a society? The answer to these questions is likely to play out as Rhode Island debates Gov. Chafee’s proposed increase to the meals tax.

While Tea Party activists and restauranteurs rally against the 2 percentage point increase – which, just so we are clear about the kind of increase Chafee is suggesting, would amount to four dimes on a $20 lunch or less than $2 on an $80 dinner – they are effectively lobbying against a $40 million to boon to public schools.

That’s because Chafee proposed the slight increase as a way to better fund public schools in Rhode Island.

“This is a way that the governor could accelerate the education funding formula,” said Chafee spokesperson Chris Hunsinger.”You can talk to almost any mayor who was in the municipal strategy session up here and accelerating the funding formula was one of the ways that was talked about at length that the governor can help cities and towns.”

She mentioned Providence Mayor Angel Taveras and Cranston Mayor Allan Fung by name.

Public school funding is one of Rhode Island’s biggest problems, as evidenced by Woonsocket’s inability to pay for its schools and the state take-over in the 1990’s of the Central Falls school district. And a recent report, as reported by RINPR, shows that graduation rates in Rhode Island are falling.

The restaurant industry, on the other hand, is one of the state’s most successful sectors. Whenever almost anyone talks about what’s right with Rhode Island its world class cuisine is almost always mentioned. Chafee told me recently that as we’ve seen unemployment skyrocket and schools, cities and towns fall into further economic morass, the local restaurant industry has stayed level.

You’ll have a hard time convincing me that people are going to stop going out for an $80 dinner because it’s going to cost $82 instead. Similarly, I think most Rhode Islanders would be happy to pay an extra quarter for a pizza if it means more money for our struggling schools.

Conversely, if the state doesn’t find a better way to fund public education, more and more of our children will be looking for jobs in restaurants rather than looking to spend money in them.

Minority Students as Pawns in War on Public Schools


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Earlier this year, the “nonpartisan” (*cough*) Rhode Island Center for Freedom and Prosperity (RICFP) released a report, “Closing the Gap:  How Hispanic Students in Florida Closed the Gap with All Rhode Island Students,” which purported to explain “in some detail why Florida’s reforms, while benefiting all students, have been especially beneficial to disadvantaged students.”

I was immediately intrigued because the claim runs counter to everything I know about the effects of the high-stakes testing, especially on students such those with learning disabilities or students in many predominately minority communities (see “High Stakes Testing: Not So Hot”). What I found though was nothing but a rehash of the standard right-wing talking points framed as “so sensible and obvious” that they needed no explanation, coupled with demagogic appeals to save a poor immigrant girl, hopelessly struggling for a better life. So much for answering the question why. I’d have to look elsewhere.

Consider a typical claim from the report:

  • Florida’s 4th grade Hispanic students scored about two grade levels below Rhode Island’s reading average for all students in 1998 and improved to match RI’s achievement level by 2009.
  • Rhode Island’s 4th grade Hispanic students reading average score is 16 points lower than their peers in Florida, roughly the equivalent of one-and-a-half grade levels worth of progress.

Sounds good, but that’s not a detailed explanation of why. Can high-stakes testing do all that? The answer is all too predictable and conveniently omitted from the statistical analysis of the Rhode Island fringe-right.

Researcher Walter Haney has debunked claims that Florida is closing the racial achievement gap, showing that narrowing of test scores on the National Assessment of Educational Progress (NAEP) appears to be caused primarily by a massive increase in grade retention.

In August, Florida Governor Jeb Bush and New York Mayor Michael Bloomberg coauthored a Washington Post opinion column touting their “successes” in closing race-based achievement gaps. Indeed, according to the 2005 NAEP results, Florida had shown remarkable improvement in 4th-grade results and appeared to have significantly reduced the gap between white and minority students.

Boston College Professor Walter Haney, however, looked at the NAEP scores on which Bush and Bloomberg based their claims and at Florida enrollment numbers. He found a troubling explanation for the apparent improvement: The state has been forcing unprecedented numbers of minority pupils to repeat third grade, on the order of 10 to 12 percent, meaning that fewer low-scoring students enter grade 4 at the normal age.

In a report titled, “Evidence on Education under NCLB (and How Florida Boosted NAEP Scores and Reduced the Race Gap),” Haney wrote, “It turns out that the apparent dramatic gains in grade 4 NAEP math results are simply an indirect reflection of the fact that in 2003-04, Florida started flunking many more students, disproportionately minority students, to repeat grade 3.” Percentages of minority students flunked were two to three times larger than percentages of white children forced to repeat grade 3. Haney says this likely explains the striking decrease in the race-based score gap.

But isn’t “getting tough” the help these kids need? Unfortunately that also is unsupported by evidence, but it does make the stats look good to those not paying too close attention (or to those on the right with a different agenda).

Haney notes that making students repeat a grade based on test scores has been shown by many researchers to be ineffective at improving achievement over the long term (see “Grade Retention,” this issue). It does produce increased scores in the repeated grade, and in some studies it has shown to produce increased scores in the subsequent year or two. This means that students who enter grade four after spending a second year in third grade are likely to score somewhat higher than if they had not repeated grade 3. But within a few years any academic gains disappear, as Chicago researchers documented in that city (see Examiner, Spring-Summer 2004).

Yes, lies, damn lies, and statistics. That’s bad news for the very kids we’re supposed to be trying to help and exactly the type of ethnic cleansing of the public schools warned of by progressive reformers.

One Florida superintendent observed that “when a low-performing child walks into a classroom, instead of being seen as a challenge, or an opportunity for improvement, for the first time since I’ve been in education, teachers are seeing [him or her] as a liability” (Wilgoren, 2000).

Perhaps most interesting are the reforms the report intentionally ignores. The RICFP tries to paint this as a debate between those advocating positive change and those who “defend the status quo of failing schools,” in fact much of the “study” is dedicated to beating that tired drum, but what’s clear is that it’s only specific changes that are considered by the proponents of corporatization. Consider this section:

Florida’s Public Schools Chancellor Michael Grego attributes their success to rigorous standards for all students, teacher training focused on instructing non-English speakers and programs such as dual language classes where English speakers learn Spanish and vice versa.” [emphasis in the original]

Bilingual education for all students?! That’s an idea which might just have some merit, but you won’t find that in this report’s foregone conclusions. Anything not fitting the corporate model is unceremoniously discarded. Never mind that their own report contains this gem:

”The numbers suggest that the persistent gap has more to do with the language barrier among a subset of that group. There are some four million Hispanic students in public schools whose primary language is not English. The NCES report showed an even larger difference between those students, known as English language learners or ELL, and their Hispanic classmates who are proficient in English. For example, in eighth grade reading, the discrepancy between ELL Hispanic students and non-ELL Hispanic students was 39 points, or roughly four whole grade levels.” [emphasis added by RICFP] (Source: Webley, Kayla, “The Achievement Gap: Why Hispanic Students Are Still Behind,” June 23, 2011, TIME, U.S.)

Oddly that quote is preceded by the highlighted comment, “Florida’s success can be attributed to rigorous standards for all students, regardless of race.” Yes it can, but only by ignoring all evidence to the contrary. They later do just that, concluding, “it is long overdue that we step away from pointing to poverty, lack of parental involvement, or language barriers as excuses for lackluster student achievement.”

The report continues along this curiously contradictory path in discussing the question “Do Disabilities Inhibit the Capacity to Achieve?” As a parent of dyslexic children, let me answer this one outright:  as measured by standardized testing, absolutely. Yes, students can improve but that doesn’t change the inherent unfairness in judging them solely on this basis. As the report concludes in the section on student outcomes for children with disabilities, “those who are most poorly served by traditional district schools are most likely to transfer to a better school.” It’s small wonder given the alternative of the thin gruel of glorified test prep. Surprise, surprise! Forcing these kids out of the public schools raises test scores. Problem solved (well, at least if you’re the beneficiary of those public dollars now privatized).

I have to admit that as a parent of dyslexic children their proposal to offer vouchers to special needs children to attend alternative schools has some appeal, especially given the extreme focus on high-stakes testing currently in vogue in RI public schools under Education Commissioner Gist (my daughter attends a school for dyslexic children and my son is likely to attend next year).  This is something perhaps to be considered, although I have reservations that this may be a stalking horse for full privatization efforts at some later date.

In any case, as progressives, we need to do all we can to prevent the mistakes of Florida’s “Lost Decade” from being repeated here in Rhode Island (for more see “NCLB’s Lost Decade for Educational Progress:  What Can We Learn from this Policy Failure?”).

Payday Lenders Hire Power Broker Bill Murphy


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Former Speaker of the House Bill Murphy (photo by Ryan T. Conaty: ryantconaty.com)

One of the most interesting battles going on in the state house this year is over the fate of the “payday lending” industry. Payday loans are short-term loans, typically arranged something like this: I loan you $100 now in return for $110 taken from your next paycheck in a couple of weeks.

This sounds good, unless you do the math and notice that this works out to about a 260% annual interest rate.  If you don’t, it’s likely enough that in two weeks you’ll ask for an extension, and it only takes a couple of dozen like you and suddenly my business is booming.  And there are a lot more customers than that around here.

It wasn’t legal to charge interest rates that high until an exception to usury laws was carved out for check-cashing businesses in 2001. According to Margaux Morisseau, who is spearheading the effort to repeal this exception, payday lenders in Rhode Island now write over 140,000 of these loans each year, totaling $50 million, the bulk of which are written by Advance America, based in South Carolina, and Check ‘n Go, nominally based in Ohio, though it might be controlled by partners based in Texas or London. You can admire the process at rhodeislandpaydayloans.com. My favorite quote:

“When it is due date of your RI payday loan, the loan amount and the service charge will be automatically debited against your pay check. An extension of your RI cash advance is also possible by paying an extension fee.”

There are a couple of interesting points to the story (beside the lack of proofreaders for web content). First, it is consistently astonishing to me both how profitable it can be to exploit poor people — and how many financiers are eager to do so. After all, a huge amount of the financial carnage of the 2008 meltdown was built on liar loans and various kinds of mortgage fraud aimed at sucking wealth from low-income families who hoped to afford a home. (And no, the Community Reinvestment Act had nothing to do with this, as you’ll doubtless read in uninformed comments.)

Obviously there is a risk associated with these kinds of loans, but even assuming a generous loan loss provision, we’re talking about more than doubling one’s investment each year. These are returns investors in more, um, traditional businesses can only dream of.

There’s a bill in the Assembly that would repeal this exception and limit interest to 36% — still awfully high, but in the range that banks charge on some credit cards.  Morisseau has put together an impressive coalition to push it, and Representative Frank Ferri and Senator Juan Pichardo have been very energetic sponsors. Morisseau and Ferri found 50 co-sponsors out of 75 members for the House Version, and she and Pichardo got 25 out of 50 in the Senate. Sounds like a slam-dunk, right?

Wrong. On the other side, Advance America has retained Bill Murphy, the recently retired Speaker of the House.

So what can a retired Speaker do in the face of 50 house members who oppose him?  Sure he knows where a lot of bodies are buried, but what can he possibly hold over so many people?  How is this a fair fight?

Here’s how it works. Murphy’s services are not provided gratis to Advance America. They are paying him $50,000 this year, according to the Secretary of State’s web site. How much work will that entail?  A bunch of phone calls and a handful of meetings. Nice work if you can get it.

And you can get it if you try — so long as you’re a current member of the House or Senate leadership. If Bill Murphy can prove to Advance America that he’s worth $50,000 a year for almost no work, then Speaker Gordon Fox or Majority Leader Nick Mattiello or even Corporations Committee Chair Brian Patrick Kennedy can justifiably claim to be worth the same amount to lobbying clients who happen along after they retire from the House. In other words, killing a bill like this on Bill Murphy’s say-so is key to a big payday for them down the road. Preserving a system that benefits Murphy is the way to keep the trough full at which they might hope someday to feed.

Of course, there are lobbyists who do real work for their money — arranging testimony, doing research, preparing press campaigns — and some of those are even ex-legislators. But the real money is in having a name that can make things happen despite how many are on the other side.

Now in fairness, I have no idea whether Fox, Mattiello, or Kennedy hopes to cash in on their service in this way, and in all likelihood, neither do you. But a very compelling indicator of whether they do is if this bill — sponsored by two-thirds of the House — gets out of committee and onto the House floor for an actual vote. Are the people who control the agendae of the House and Senate interested in a democratically run General Assembly, or is their interest in preserving the system by which ex-legislators profit handsomely from what was, in theory, public service?

Appendix:

For comparison,

Dan Connors, former Senate Majority Leader

George Caruolo, former House Majority Leader

Stephen Alves, former Senate Finance Chair