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Showing posts with label PPP. Show all posts
Showing posts with label PPP. Show all posts

Wednesday, January 13, 2021

A 50-State Analysis of PPP Funding of Charter Schools, Religious Schools, and Private Schools | Diane Ravitch's blog

A 50-State Analysis of PPP Funding of Charter Schools, Religious Schools, and Private Schools | Diane Ravitch's blog
A 50-State Analysis of PPP Funding of Charter Schools, Religious Schools, and Private Schools



Good Jobs First has studied the distribution of COVID relief funds in depth. It created a site called COVID Stimulus Watch. It published an article about the depth of corruption in the Trump administration, which distributed COVID relief funds.

In this post, the researchers at Good Jobs First reveal the federal funding in the Paycheck Protection Program for all 50 states, distributed to charter schools, religious schools, and private schools.

As you review the funding for your own state, please bear in mind that public schools received an average of $134,500 each. Also, public schools were not allowed to apply for PPP funding. Charter schools were, however, allowed to get a portion of the public school funding and then to apply for PPP funding as if they were small businesses.

Check out your own state. You will find that elite private schools with high tuition and large endowments received grants that often were millions of dollars.


Saturday, January 2, 2021

Nevada: Charter Schools Cashed in on PPP Money | Diane Ravitch's blog

Nevada: Charter Schools Cashed in on PPP Money | Diane Ravitch's blog
Nevada: Charter Schools Cashed in on PPP Money




Last spring, you may recall, the CARES Act included $13.2 billion for public and charter schools. In addition, $660 billion was allocated to the Paycheck Protection Program (PPP) for small businesses and nonprofits that were struggling to survive due to the pandemic. Public schools were not allowed to apply for PPP. However, many charter schools learned through their lobbyists that they could apply for PPP. In other words, they double-dipped. They took the $134,500 or so that was available in the initial allotment for each public school. Then they went to the PPP and took another bite, which was far bigger than the funding allowed to public schools.

Which raises the interesting question: Are charter schools “public schools” or are they small businesses or private nonprofits? After all, public schools were not allowed to ask for PPP money, but over a thousand charter schools struck gold.

Nevada has a reputation for some of the worst charter CONTINUE READING: Nevada: Charter Schools Cashed in on PPP Money | Diane Ravitch's blog


Thursday, December 24, 2020

Diane Ravitch: The Dark History of School Choice | by Diane Ravitch | The New York Review of Books

The Dark History of School Choice | by Diane Ravitch | The New York Review of Books
The Dark History of School Choice
How an argument for segregated schools became a rallying cry for privatizing public education.



During her tenure as secretary of education, Betsy DeVos repeatedly asked Congress to allocate billions of dollars for vouchers for religious and private schools. She was repeatedly rebuffed. Even Republican members of Congress were unwilling to use the federal education budget to pay for vouchers. After all, most of their constituents’ children attend public schools.

After the pandemic struck, DeVos tried again. Late last March, Congress passed a $2.2 trillion relief bill called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which allocated $13.2 billion for K–12 education. Congress expected that the money would be shared, as federal education funds typically are, among the nation’s nearly 100,000 public and 7,000 charter schools, as well as private schools based on the number of low-income students they enroll. DeVos instead directed states to share the money allotted to public schools with private and religious schools that enrolled middle-income and affluent students. The NAACP and several states responded with lawsuits, arguing that her order was illegal. Three federal judges in different parts of the country ruled against DeVos, and she backed down.

But the Trump administration found another way to enrich charter and private schools. The Paycheck Protection Program (PPP), also part of the CARES Act, was supposed to rescue small businesses. Lobbyists for the charter industry, however, encouraged charter schools to apply as nonprofits, thus double-dipping into both the public school and PPP funds (public schools were ineligible for PPP funding). Private and religious schools also qualified for PPP funds as nonprofits. Therefore, through a bill supposed to aid small businesses at risk of bankruptcy, thousands of charter, private, and religious schools received an average of about $855,000 each, compared to about $134,500 per public school through CARES. Religious schools of every denomination, elite private schools, and more than one thousand charter schools received anywhere from $150,000 to $10 million each according to a database compiled by a website called COVID Stimulus Watch. Antelope Valley Learning Academy, a charter school in California, received $7.8 million. The for-profit Academia Corporation charter school chain won $28.6 million. Buckingham Browne & Nichols, an elite private school in CONTINUE READING: The Dark History of School Choice | by Diane Ravitch | The New York Review of Books

Tuesday, December 22, 2020

Laura Chapman: Charters in Ohio Shaking the PPP Money Tree | Diane Ravitch's blog

Laura Chapman: Charters in Ohio Shaking the PPP Money Tree | Diane Ravitch's blog
Laura Chapman: Charters in Ohio Shaking the PPP Money Tree



Our reader Laura Chapman lives in Ohio. She contacted NPE Execurive Director Carol Burris to find out which Ohio charter schools asked for and received money from the Paycheck Protection Program, even though they already received funding allotted to public schools; even though they lost no income, unlike the hundreds of thousands of small businesses that were closed by the pandemic and had NO income; even though public schools were not alllowed to apply for PPP funds. Under the CARES Act, the average public school received an average of $134,500. Charter schools for their share of that money, plus qualified to double dip into the PPP funds,, thanks to their skilled lobbyists.

Chapman writes:

Diane, You beat me to it. I found the headline this morning: “Charter’s PPP loan called into question. School gave shareholder company a $10M bonus.” That report from Craig Harris of the Arizona Republic (Dec 19, 2020) referred to Primavera, an online charter school based in Chandler. “The school received “a PPP loan of nearly $2.2 million, the largest forgivable loan among the 132 Arizona charter schools that obtained them. https://cdn.newseum.org/dfp/pdf19/AZ_AR.pdf

This scam is about to be repeated if more PPP money is allocated for so-called public charter schools now reinvented as small businesses.

I have been looking at the first round of Paycheck CONTINUE READING: Laura Chapman: Charters in Ohio Shaking the PPP Money Tree | Diane Ravitch's blog

Sunday, December 20, 2020

Arizona Charters Hit Jackpot with Federal Paycheck Protection Program | Diane Ravitch's blog

Arizona Charters Hit Jackpot with Federal Paycheck Protection Program | Diane Ravitch's blog
Arizona Charters Hit Jackpot with Federal Paycheck Protection Program



The federal CARES Act included the Paycheck Protection Program to help struggling small businesses and nonprofits survive the pandemic. Lobbyists for the charter industry slipped in a provision enabling charter schools to apply for PPP funding, even though they experienced no financial losses. Charter schools got a share of the $13.2 billion allotted to the nation’s early 100,000 public schools. The average public school received about $135,000 to meet the expenses of the pandemic. On the advice of their lobbyists, some 1200 charters also sought and won PPP funding. Thus charters drew funding from two sources; public schools were not eligible for PPP funding. Charters that applied for PPP funding won six times as much federal money as public schools.

The Arizona Republic reported that the Primavera online charter school in Arizona won a sizable “loan” (1% interest, forgivable), at the same time that its owner took CONTINUE READING: Arizona Charters Hit Jackpot with Federal Paycheck Protection Program | Diane Ravitch's blog

Thursday, September 17, 2020

Private and Charter Schools Received Six Times as Much COVID Funding As Public Schools | Diane Ravitch's blog

Private and Charter Schools Received Six Times as Much COVID Funding As Public Schools | Diane Ravitch's blog

Private and Charter Schools Received Six Times as Much COVID Funding As Public Schools




A new study of the federal CARES act funding found that private and charter schools received SIX TIMES the amount of funding as public schools from the federal coronavirus program. This may actually, as the report states, be an underestimate.
Mellissa Chang wrote:
A new analysis of Paycheck Protection Program (PPP) loans by Good Jobs First points to an imbalance in CARES Act funding between public schools on the one hand and private and charter schools on the other.
GJF’s Covid Stimulus Watch has identified at least 6,600 charter and private schools that received an estimated $5.7 billion in PPP loans, which have been made available to private companies and non-profit organizations but not public entities. This data is now available on Covid Stimulus Watch through the facility ownership search category.
PPP loan disclosures from the Small Business Administration (SBA) were reported in dollar ranges, not exact values. Covid Stimulus Watch uses the midpoint of each range to estimate loan amounts. Data released by the SBA includes NAICS industry codes for each entity; CONTINUE READING: Private and Charter Schools Received Six Times as Much COVID Funding As Public Schools | Diane Ravitch's blog