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Public School Costs/Results

It would be important for all owners of real estate regardless of whether there are school aged children to ask some hard questions of the respective school system. Chicago is a symptom of a big problem where results are quite questionable.

The Real Cost of CPS Borrowing: District Now Owes $38,000 per Student

ManhattanInstitute: By all accounts, Chicago Public Schools has made significant academic progress over the last 15 years. Since 2003 the district’s proficiency rates on the National Assessment of Educational Progress exam have more than doubled in math and have nearly doubled in reading.

But this progress is now threatened by severe financial mismanagement. The district faces a budget crisis driven by the rising cost of past, unpaid bills that is crowding out spending on today’s teachers and students.

CPS’ budget crisis was not created overnight. For more than a decade, the district has struggled with a widening structural budget deficit. Since 2001, inflation-adjusted spending per pupil increased by nearly 40 percent. In 2001, CPS spent close to $12,000 per student; in 2015, $16,432. Yet revenue has not kept pace: CPS per-pupil revenue has not matched per-pupil spending, with revenue falling short, on average, by $1,000 per pupil since 2001. More recently, the revenue gap has widened to nearly $3,000 per year.

CPS has papered over its annual shortfalls by borrowing vast sums from bond markets. As a result, CPS bonds are now rated as “junk” and the district has to pay a huge premium to get anyone to buy them (three times the rate for benchmark government bonds).

What’s more, by failing to make the necessary pension contributions, CPS has borrowed even larger amounts from its current and former teachers through the pension fund—today the district owes the fund billions upon billions. CPS owes bondholders and the pension fund more than $38,000 for every student, up from less than $10,000 in 2001.

Rising debt service costs are beginning to take a real bite out of district resources. And CPS has scrambled to keep pace while protecting classroom spending. Since 2011, CPS has made nearly three-quarters of a billion dollars in budget cuts “away from the classroom,” with administrative and programmatic spending hit especially hard. Nevertheless, from 2001 to 2015, annual per-pupil inflation-adjusted spending has been hit hard as well:

  • Spending on textbooks has declined by 36 percent.
  • Spending on classroom supplies has fallen by nearly 60 percent.
  • Budgets for elementary school sports (coaching stipends and equipment) have been cut by the millions.
  • Annual per-pupil spending on capital repairs and replacement has dropped by 55 percent.

Because the majority of a school district’s spending is on salaries and benefits, there is only so much that can be cut beyond that. Which is why Chicago’s teachers are feeling the budgetary pressure. Since 2001, CPS teacher salaries, as a share of total CPS spending, have fallen by more than 10 percentage points, while pension contributions have jumped, from 2 percent of total CPS spending to more than 10 percent.

Teachers’ retirement benefits have also been reduced. Changes for new teachers instituted in 2011 represent an average total compensation cut of about 10 percent compared with teachers who began working before the changes took effect. For career teachers the drop is even larger—representing a reduction of more than 40 percent of the total potential benefit value.

There are only three ways to right CPS’ sinking financial ship: Secure additional revenue, reduce teachers’ retirement benefits, or cut services for current students. Start with revenue. Given that the Legislature is mired in a long-running budget standoff, securing significant additional state aid seems unlikely. Raising more local revenue faces another constraint: Chicago’s property tax increases are capped at the rate of inflation.

As for cuts to retiree benefits, the Illinois Supreme Court has prohibited pension reductions for all but future hires, thereby disallowing even the modest changes to teachers’ benefits. For these reasons, major service cuts to Chicago’s public schools—however undesirable—appear most plausible.

Did you Know the EPA has a SuperFund?

     

EPA’s Superfund program is responsible for cleaning up some of the nation’s most contaminated land and responding to environmental emergencies, oil spills and natural disasters. To protect public health and the environment, the Superfund program focuses on making a visible and lasting difference in communities, ensuring that people can live and work in healthy, vibrant places.

There are well regulations. Since when are they followed?

Superfund Regulations

The National Oil and Hazardous Substances Pollution Contingency Plan (NCP) defines the organizational structure and procedures for preparing for and responding to discharges of oil and releases of hazardous substances, pollutants, and contaminants in the United States. The NCP was developed by the Environmental Protection Agency (EPA) in response to the congressional enactment of The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of December 11, 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (SARA), and by section 311(d) of the Clean Water Act (CWA). This page contains links to other EPA Web pages with simplified explanations of the Superfund regulatory process. Other links access Code of Federal Regulations that document the technical considerations and requirements of CERCLA and the NCP.

Enforcement activities related to the Superfund Division at EPA Headquarters is overseen by the Office of Site Remediation Enforcement (OSRE), a division of the EPA Office of Enforcement and Compliance Assurance.

The history of the Superfund: Since 1980, EPA’s Superfund program has helped protect human health and the environment by managing the cleanup of the nation’s worst hazardous waste sites and responding to local and nationally significant environmental emergencies. Below you will find a timeline highlighting some of the most notable milestones in the history of the Superfund and other cleanup programs.

So are they going to pay for the spill that contaminated the river or for the water crisis in Flint, Michigan?

There are secret meetings too!

STAR CHAMBER: EPA Holding Secret Meetings to Decide How to Dole out Billions in Illegal Slush Funds

Two internal Environmental Protection Agency (EPA) committees secretly control how billions of dollars are spent, a Daily Caller News Foundation investigation has found.

Congress appropriates about $1 billion annually for EPA’s Superfund program, and the agency has accumulated nearly $6.8 billion in more than 1,300 slush fund-like accounts since 1990.

No mention of that on their website but check this out:

Supplemental Environmental Projects at Ammonia Facilities in Arizona and California

ammonia sign

Ammonia Sign

Two ammonia refrigeration facilities have volunteered to complete Supplementary Environmental Projects (SEPs), that will benefit their surrounding communities, as part of enforcement settlements with EPA. The SEPs will enhance the emergency response capabilities of local fire and hazardous materials response teams in the immediate areas of the facilities and will also include compliance outreach in California’s San Joaquin Valley.

Dole Packaged Foods in Atwater, California (map) and Rousseau Farming Company in Tolleson, Arizona (map) both had releases of ammonia in 2006 and failed to immediately notify the proper authorities, violations of the Emergency Planning and Community Right-To-Know Act (EPCRA), and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). In addition to the release reporting violations, Dole failed to develop standard operating procedures for the ammonia system where the release occurred, constituting a violation of the Clean Air Act (CAA).

“We are pleased that both Dole and Rousseau have acknowledged their violations and recognized their responsibility to improve safety practices in their communities. Supplemental environmental projects are an excellent mechanism for companies to demonstrate good corporate citizenship and to fulfill their responsibilities under the law” -Daniel A. Meer, EPA Region 9’s Response, Planning and Assessment Branch Chief

As part of the SEP, Rousseau will spend $15,000 on 14 suits for the Tolleson Fire Department to use when responding to chemical fires. This is in addition to a $65,045 penalty. Dole will spend a total of $86,930 for the penalty and $12,000 on a compliance training and $53,000 on emergency response equipment for Merced County.

DOJ: Lawyers Behind the N. Carolina Bathroom Lawsuit

Radicals….throughout the whole Justice Department but here are the backgrounds of those who Loretta Lynch has assigned to sue North Carolina on the bathroom (genderless) lawsuit. Terrifying….

The Justice Department sent out the guidance letter to public schools in several languages and that document is here.

This is a matter placed under Title IX, Sex Discrimination.

By the way, make sure you use proper words as you could be sued in this regard as well.

A sign marks the entrance to a gender-neutral restroom at the University of Vermont in Burlington, Vt.

These Are the Radical DOJ Lawyers Suing North Carolina Over Transgender Bathroom Use

DoJ and North Carolina Trading Lawsuits Over Bathrooms

Really? How did we get here after all these years? Loretta Lynch, U.S. Attorney General made her official statement today and one key word she used was ‘privacy’….exactly whose privacy is protected? This is so twisted.

The Justice Department had alleged the North Carolina law violated Title IX, the federal law that bars sex discrimination in education. But the lawsuit is silent about Title IX, likely because of a recent decision by the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals. This could place North Carolina in jeopardy of billions of dollars of federal aid…..nothing about violating the 10th Amendment…..

North Carolina Turns to Prominent Conservative Lawyer to Defend ‘Bathroom’ Law

Provided by the National Law Journal:

Judge assigned to the case is a Reagan appointee whose nomination to the Fourth Circuit stalled amid Democratic opposition.

The 10 page lawsuit is found here.

A go-to lawyer for Republican governors facing scandal and controversy will represent North Carolina Gov. Patrick McCrory as he defends a state law that requires transgender state employees to use the bathroom that corresponds to the gender on their birth certificates.

Karl “Butch” Bowers Jr. of Bowers Law Office in Columbia, South Carolina, is part of the legal team that sued the U.S. Department of Justice on McCrory’s behalf on Monday. Last week, the Justice Department threatened legal action over the law, known as HB2.

Bowers is a lead attorney in one of three lawsuits filed on Monday related to the contested North Carolina law, known as HB2. Several hours after McCrory filed suit, two state legislators sued the Justice Department in defense of the law. Then the Justice Department sued McCrory, several days after threatening legal action.

A former special counsel for voting matters in the Justice Department under President George W. Bush, Bowers is also representing McCrory in separate litigation over the state’s voter identification law in the U.S. Court of Appeals for the Fourth Circuit.

Gupta last week called HB2 discriminatory and in violation of the federal Civil Rights Act. She asked McCrory to respond by Monday with a pledge not to enforce the law. McCrory struck back with Monday’s lawsuit, filed in the U.S. District Court for the Eastern District of North Carolina. The complaint seeks a ruling that HB2 is lawful.

Bowers did not immediately return a request for comment, nor did his co-counsel, Robert Stevens, general counsel in the governor’s office, and William Stewart Jr. of Millberg Gordon Stewart in Raleigh.

The case is before U.S. District Judge Terrence Boyle, appointed by President Ronald Reagan in 1984. A former legislative aide to former North Carolina Sen. Jesse Helms, Boyle repeatedly faced Democratic opposition when two presidents—the elder Bush and the younger Bush—unsuccessfully tried to nominate him to the Fourth Circuit.

Boyle was nominated to the Fourth Circuit in 1991, and then six more times between 2001 and 2006, according to judiciary records. The Senate never voted on his nomination. Legal Times reported in 2007 that Democratic opposition to Boyle was in part political payback for Helms’ blocking of judicial nominees during the Clinton administration.

Governors’ go-to lawyer

McCrory is the latest in a line of Republican governors to seek Bowers’ help.

Bowers represented South Carolina Gov. Nikki Haley in ethics proceedings in the state Legislature about whether she illegally lobbied for private companies while she was a member of the House. The ethics committee cleared her of wrongdoing in 2012.

Bowers counseled former South Carolina Gov. Mark Sanford, who faced impeachment after he disappeared for several days in 2009 on what was later revealed to be a trip to Argentina to visit his mistress. Sanford also faced an ethics investigation into his use of state resources for personal travel. South Carolina Republicans ultimately censured Sanford but did not vote to impeach him.

In 2007, Bowers took a one-year leave from private practice to serve as special counsel for voting matters in the Justice Department. The following year, he served as a lawyer to the presidential campaign of Sen. John McCain, R-Arizona, in Florida.

In 2012, Bowers joined a team of lawyers representing South Carolina in litigation over the state’s voter identification law. A special three-judge panel in Washington found that the law was not discriminatory, although the judges blocked it from taking effect for the November 2012 election.

Less than a year later, the U.S. Supreme Court struck down a key section of the federal Voting Rights Act that in effect eliminated the requirement that states such as South Carolina seek court approval before making changes to election processes.

There are now four lawsuits pending over HB2.

Updated at 4:05 p.m.

In March, the American Civil Liberties Union, joined by Jenner & Block and Lambda Legal, filed a complaint in the U.S. District Court for the Middle District of North Carolina arguing that the law is unconstitutional.

The two North Carolina legislators who filed suit on Monday in the Eastern District of North Carolina—Phil Berger, president pro tempore of the state Senate, and Tim Moore, speaker of the House of Representatives—are represented by Gene Schaerr and S. Kyle Duncan of Schaerr | Duncan in Washington.

Schaerr in 2014 left a partnership at Winston & Strawn to defend Utah’s same-sex marriage ban. Kyle is the former general counsel of the Becket Fund for Religious Liberty.

In remarks on Monday announcing the Justice Department’s lawsuit, Lynch said that discriminatory measures against transgender individuals that followed the Supreme Court’s ruling last year legalizing same-sex marriage was akin to the Jim Crow laws that followed the Emancipation Proclamation and the backlash to the Supreme Court’s Brown v. Board of Education decision in 1954.

Addressing the transgender community, Lynch said that the Justice Department and the Obama administration “want you to know that we see you, we stand with you, and we will do everything we can to protect you going forward.”

Updated with information on additional lawsuits filed on Monday. North Carolina’s lawsuit is posted below.