“Those who lose their jobs in late June and July are part of a wave of new layoffs from companies whose PPP money is expiring, economists say.”
– The Washington Post
About a thousand Americans die from COVID-19 every day. In the absence of a coordinated effort from the Trump administration, the economy has been hit hard, with workers hit the hardest. In the past week alone, 1.416 million Americans filed new unemployment claims.
While House Democrats passed their version of an economic stimulus package more than two months ago, Senate Republicans have refused to consider the HEROES law. Even though the latest of the first stimulus package UI reminders are sent to states, Senate Majority Leader Mitch McConnell appears to ignore the immediacy of the problem when suggesting a new plan will be ready. ” in the next weeks ” .
As American workers wait for Senate Republicans to take action, many small businesses are running out of funds they received from the Payroll Protection Program (PPP). This program was supposed to allow companies to get through the crisis without laying off their employees. However, without a replacement, “only one in six businesses that received loans said they were confident they could pay their employees.” The resulting wave of unemployment could be devastating to our already damaged economy.
These dire conditions call into question the decision of Los Angeles County charter schools to take more than $ 78 million in P3s, even though they suffered no immediate loss of revenue. In the case of Palisades Charter High School, the governing board ignored concerns that their participation may have reduced the funds available to small businesses that were in real need of help “to get the money while everything is fine “. The California Charter Schools Association (CCSA) maintains that the use of these funds was “necessary” to guard against possible cuts in state education funding in the next fiscal year. In the meantime, Palisades will put the money in a savings account where they hope to earn more interest than they pay on the loan.
Neither charter schools nor their public counterparts saw their funding cut during the period of acceptance of applications for the PPP. The charter industry’s willingness to tap into funds intended to help organizations that are not already tax-funded underscores that they are not the “public schools” they claim to be. As Scott M. Schmerelson, representative of the LAUSD Board of Trustees noted, “Charter schools benefit from the perception of being public organizations, but are in fact private entities authorized to manage public schools. He believes that “charter schools should either be eligible for loans offered by the Small Business Administration or be eligible for taxpayer money collection based on average daily attendance, but not both.”
Her opponent in the November elections, Marilyn Koziatek, did not respond to a request for comment. She is currently on the management team of Granada Hills Charter, a school that has received over $ 8 million from the PPP.
Public schools will face the same budget deficits next year. Therefore, the ability of charter schools to double public funds will put the 80% of students attending LAUSD schools at a disadvantage. In LAUSD Board District 7, school board candidate Patricia Castellanos states that “if the federal government is to provide additional funding to charter schools, outside of the California Schools Funding Mechanism, neighborhood public schools should also be eligible ”.
Castellanos’ opponent in November is Tanya Ortiz Franklin. He was also asked for his opinion, but replied that “dwelling on some of these questions is unnecessary at this time.” I wonder if a small business owner who lost everything during this crisis and couldn’t access those funds would agree.
Schmerelson and Castellanos’ full answers to the questions put to them can be found below:
- Question: Are charter schools businesses or public bodies?
Scott Mark Schmerelson: “Charter schools benefit from the perception of being public organizations, but are in reality private entities authorized to manage public schools. Some of these private entities operate as if they are motivated for profit, while others operate as a non-profit organization. “
Marilyn Koziatek: Koziatek did not respond to the email asking for his opinion.
Patricia Castellanos: “Charter schools are managed by the private sector but funded by the state. That’s why last year, the California legislature passed several measures that require them to follow the same transparency and accountability laws that public entities are required to follow, such as the California Public Records Act and the Brown Act. Additionally, with the passage of AB 1505, the district can now ask how a new charter will affect the fiscal health of neighboring schools and whether the school’s teachers are qualified to educate our children.
Tanya ortiz franklin: Franklin did not provide an answer to this question.
- Question: Should charter schools be eligible for loans offered by the Small Business Administration?
Scott Mark Schmerelson: “Charter schools should either be eligible for loans offered by the Small Business Administration or be eligible for taxpayer money collection based on average daily attendance, but not both.”
Marilyn Koziatek: Koziatek did not respond to the email asking for his opinion.
Patricia Castellanos: “We must do all we can to protect our schools from the immense economic hardship caused by the COVID-19 pandemic. Fortunately, as public entities, our schools have benefited from an ongoing flow of state funding, as well as access to federal funding from the CARES Act. Charter schools also continue to be funded from these public sources. However, as the pandemic continues and state revenues decline, public education – which is already underfunded – risks further cuts and underfunding. If the federal government is to provide additional funding for charter schools, outside of the California Schools Funding Mechanism, neighborhood public schools should also be eligible. “
Tanya ortiz franklin: Franklin did not provide an answer to this question.
- Question: Should loans be used as a way for schools to earn money on the difference between the interest they pay on the loan and the interest they receive for keeping the money in an account? banking?
Scott Mark Schmerelson: “Schools are not banks, financial institutions or investment firms. No school should profit from “the difference between the interest they pay on the loan and the interest they receive by keeping the money in a bank account.”
Marilyn Koziatek: Koziatek did not respond to the email asking for his opinion.
Patricia Castellanos: “Philosophically, I don’t think this is an appropriate use of public funds. I don’t know where this is going and would like to know more about the details. I don’t know of any bank that pays an interest rate high enough to make a difference. However, some charter schools in California have used the loans as a “cheap form of cash financing,” according to the New York Times, and that doesn’t seem right since our neighborhood public schools don’t have the same access.
Tanya ortiz franklin: Franklin did not provide an answer to this question.
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