Big spend

CPS to spend $1 billion on campus improvements, including two new West Side schools

PHOTO: Elaine Chen
Mayor Rahm Emanuel made an announcement about a $1 billion capital spend in July at Cardenas Elementary in Little Village.

Chicago Public Schools is plunging $1 billion into campus investments, a plan that includes two new West Side schools and two new classical schools, the district announced Friday.

Of the West Side openings, one will be an open-enrollment high school—CPS CEO Janice Jackson would not elaborate on the exact neighborhood—and the other will be an elementary school in Belmont-Cragin, which borders Austin on the far West Side.

CPS will also open two new classical schools—one in Bronzeville and one on the Southwest Side. And it will expand classical programs at McDade (near Chatham), Poe (in the Pullman neighborhood), and Decatur (in West Ridge) by adding seventh and eighth grades. McDade, Poe, and Decatur previously offered only kindergarten through sixth grades, leaving parents to scramble to find high-quality middle school programs to bridge the gap to high school.

The city’s high-demand classical programs are selective enrollment schools with a challenging, liberal arts focus, and students typically test in. Last school year, the district’s five classical programs denied seats to more than 1,000 students who had qualifying test scores.

The new schools and classical expansion were announced as part of a larger plan to boost capital spending from a meager $189 million for the new school year to nearly $1 billion—though it appears some projects listed as part of the $1 billion spend will be spread across several years. The list of improvements includes several items, such as capital costs related to the introduction of universal pre-kindergarten, that were previously announced.

Mayor Rahm Emanuel and district CEO Jackson made the first of two announcements Friday at Lazaro Cardenas Elementary School, a neighborhood elementary school in Little Village. On July 1, Cardenas, which serves pre-kindergarten through third grades, merged with Castellanos, which serves grades four through eight.

“This is a historic capital budget,” said Emanuel, standing in front of library shelves stocked with popular books such as “Pete the Cat” and “Don’t Let the Pigeon Drive the Bus.” “These investments will ensure that there is equity in our system.”

Emanuel ticked off some of the cornerstones of the capital spending proposal, most of which have been announced prior: a universal pre-K program for all 4-year-olds that will cost nearly $175 million by 2021 (a first year capital spend of $18 million is part of the $1 billion plan; other costs to roll it out in the first year will come from the operating budget) and a plan to retrofit all high school science labs to bring them up to date—a cost of $75 million to be spread out over three years.

To foot the nearly $1 billion bill, the district will largely rely on borrowing. CPS anticipates selling $313 million of general obligation bonds and up to $125 million of Capital Improvement Tax bonds; the remaining $300 million will get financed at a later date as expenditures roll in. In addition, a spokeswoman said CPS anticipates a bond refunding of up to $500 million, which let it swap out debt and save money on the interest.

The district is also counting on extra monies from the state revamp of the education funding formula. That revamp yielded Chicago Public Schools roughly $350 million more this year, with $200 million of that intended to cover unfunded pension obligations.

Estimated Sources Estimated Sources (Thousands)
Total FY 2019 Capital Budget Sources $989,000
Anticipated Bond Offers and Other Capital Funds $749,900
Prior Year Bond Proceeds $189,100
Other Potential Outside Funding $43,000
Federal E-Rate Funding $7,000

 

Estimated Uses Estimated Spend (Thousands)
Total FY 2019 Capital Budget Uses $989,000
Educational Programming $339,200
Facility Needs $335,650
Overcrowding Relief $138,000
IT, Security, & Building System Investments $88,000
Site Improvements $45,700
Capital Project Support Services $25,250
Potential Land Acquisitions $16,000
Potential Externally Funded Projects $1,200

Supplemental funding sources include a $15 million federal grant that will be used to pay to convert three neighborhood elementary schools to magnet programs. The three neighborhood elementary schools that will be converted to STEM magnet programs are William H. Brown Elementary on the Near West Side, Claremont Academy Elementary in Englewood, and Joseph Jungman in Pilsen.

A closer look at the plan

The mayor also stressed an annual investment of $25 million over three years in technology, including new devices for every student at 20 elementary schools – among them is Cardenas, Principal Jeremy Feiwell said after the meeting – and some upgrades of devices and broadband infrastructure at 40 additional schools. “The language of the future is technology and computers,” said Emanuel. To illustrate the point, next door to the press conference, a room of elementary-aged students sat in a computer lab playing math games on Dell computers.

Among the other items included in the $1 billion spend:

  • $4 million for security equipment, including cameras, intercom phones, alarms, and “screening equipment” at 50 schools;
  • A new building for Hancock High School on the Southwest side;
  • “Significant building renovations” for Hyde Park High School to better support the school’s International Baccalaureate program.
  • A new vocational wing for Prosser Career Academy in support of Chicago Builds, a 2-year training program in the building trades for 11th and 12th grade students;
  • The relocation, previously announced, of Rickover Naval Academy into the former Luther North, which would be renovated;
  • Renovations at Senn High School on the city’s North Side;
  • Annexes to relieve overcrowding at Dirksen, Palmer, Rogers and Waters elementary schools;
  • $46 million in site improvements to design and build playgrounds, play lots, and turf fields at schools across the city;
  • $336 million for repair and replacement to structural items like roofs and building envelopes.

The Chicago Teachers Union quickly issued a statement, calling the announcement a “stunt” in the ramp up to next year’s mayoral election.

Community groups, meanwhile, were still trying to digest the news and assess the impact. “Parents worry about how new schools impact existing schools,” said Juan Cruz, a Communities United organizer who is active in Belmont Cragin, where a new elementary is proposed. “Schools in Belmont Cragin are all very close to each other. I will be very interested to know where they will build this school and not affect the other schools.”

The public will have a chance to provide feedback. Capital hearings will be held on from 6 p.m. to 8 p.m. July 19 at the following locations:

  • Truman College, 1145 W Wilson Ave;
  • Malcolm X College, 1900 W Jackson Blvd;
  • Kennedy King College’s U Building, 740 W 63rd St.

Additionally, the district will hold two budget hearings at 2 p.m. and 4:30 p.m. July 16 at the CPS Central Office, 42 W. Madison St.

 

Face-to-face

In ‘speed dating’ exercise, Detroiters grill school board candidates about third-grade reading, charter schools

PHOTO: Erin Einhorn
Corletta Vaughn, a candidate for Detroit school board, speaks to Detroiters at a forum Thursday evening as Nita Redmond (center) looks on. Vaughn says the district should be open to collaboration with charter schools and suburban districts.

On its face, the public forum Thursday night was about candidates for Detroit school board. In fact, the night belonged to the citizens.

Early in the evening, a tableful of Detroiters — most of them graduates of Detroit public schools, all of them concerned about the future of Michigan’s largest school district — set about deciding what they wanted to ask the candidates during a series of Q&A sessions that CitizenDetroit, which co-sponsored the forum with Chalkbeat, called “speed-dating.”

Shirley Corley, a first-grade reading teacher who retired from the city’s main district, honed in on the state’s “read-or-flunk” law, which could force schools in Detroit to hold back many of their third graders next year if they can’t pass a state reading exam.

“I heard that one on the TV, and I couldn’t believe my ears,” she said.

As a gong sounded, she hurried to shape her outrage into a question: “What are your plans about holding back third-grade readers, and why aren’t they reading better?”

Then Terrell George, one of the candidates for two openings on the school board, sat down across the table. She asked her question.

All across a packed union hall in Detroit’s historic Corktown neighborhood, similar scenes were playing out. Candidates rotated between tables, where they sat face-to-face with roughly 10 Detroit residents armed with prepared questions and many lifetimes-worth of combined experience with the city’s main school district. Every five minutes, someone hit a gong, and candidates got another chance to lay out their vision for the troubled district and impress the voters who will decide their future at the polls in November.

It is Detroit’s first school board election since the board regained control of Michigan’s largest district, which was run for nearly a decade by state-appointed emergency managers. And it marks a crucial milestone in the district turnaround effort led by Superintendent Nikolai Vitti, whose reforms have so far enjoyed the board’s support.

(Six of the nine candidates attended the event. Deborah Lemmons and M. Murray [the full name listed on the ballot] didn’t respond to an invitation, according to CitizenDetroit. Britney Sharp said she had a scheduling conflict and was unable to attend.)

From Natalya Henderson, a 2016 graduate of Cass Technical High School, to Reverend David Murray (his legal name), a retired social worker and minister who previously served a long, sometimes controversial stint on the school board, a broad field of candidates are vying to help steer a district through a historic turnaround effort. The winners will help decide what to do about the $500 million cost for urgent school renovations and test scores that are persistently among the worst in the nation.

(Click here to watch the candidates introduce themselves in two-minute videos, and here for short bios.)

candidate statements
PHOTO: Koby Levin
Deborah Hunter-Harvill, the lone incumbent running for school board, makes an opening statement. Candidates made one-minute opening statements, then rotated through a roomful of 130 people answering questions about their plans for the district. From left: Corletta Vaughn, Shannon Smith, Natalya Henderson, Hunter-Harvill.

The low scores are the reason the state’s third-grade reading law, which calls for students reading below grade level to be held back, will disproportionately affect Detroit. But at Table 1, Corley gleaned some hope from George’s answer to her question about the law. He said more attention should be paid to early literacy instruction: “We must start from the beginning in preschool and kindergarten.”

Corley shook her finger in approval: “That’s right.”

On the other side of the table, Viola Goolsby wanted to know how George would respond if the state attempted to close the district’s lowest-performing schools.

“I would be opposed to any school shutting down any school in any district…” George began.

Then the gong sounded. “That was quick,” George said, standing up.

The table had a five-minute break — with roughly 130 people in the room, there were more tables than the six candidates who attended — and then another candidate, Corletta Vaughn, slid into the seat reserved for candidates.

Lewis EL, a realtor who works in Detroit, read a question from the list provided by Chalkbeat and CitizenDetroit, the non-profit that hosted the event: “What are the pros and cons for the district in collaborating with charters and suburban school districts?”

Vaughn’s voice fell: “I firmly believe that the district alone is without resources. We just don’t have it. So I would like to see a collaboration.” She said other districts could help Detroit train its teachers: “I think we have to do a better job in terms of exposing our teachers to better development.”

“Are they not coming with that knowledge already?” Lula Gardfrey asked.

“But I think that we can support them more,” Vaughn replied. “Our students have mental health issues. They have economic issues. Just what the teacher learned in school isn’t going to be enough when that child arrives at 8 a.m. in the morning.”

detroiters
PHOTO: Koby Levin
Shirley Corley and Lula Gardfrey work on the questions they planned to put to candidates for Detroit school board.

When the gong sounded again, Nita Redmond felt torn. She believed Vaughn had good intentions but was suspicious of any collaboration with charter schools.

The rise of charter schools, which enroll about one-third of the city’s 100,000 students, “should have never happened,” she said. “It seems like it has lowered the regular schools.” When another candidate, Shannon Smith, joined the table, Corley got to hear a different take on her question about the third-grade reading law.

“We need to communicate with parents,” Smith said. “There are a lot of parents that aren’t aware. Second, we need to work together with the administrators and the teachers on the curriculum, and figure out which curriculum would best support the students in reading.”

On the opposite side of the hall, another table asked Deborah Hunter-Harvill, the only incumbent in the race, about her plans for improving instruction in the district.

“Because nationally we’re at the bottom in reading and math, I start from the bottom,” she said. One of our policies is that parents attend parent training free to understand what their kids are being taught. All of our parents don’t come, but if you just get 40 in one classroom in one day, they go home and tell other parents.”

Theresa White had a seat right next to Hunter-Harvill, and she liked what she saw. “That has been a culprit, the lack of participation by parents,” she said.

In the next seat over, Rainelle Burton, who attended high school in Detroit and has lived in the city for decades, came to a different conclusion.

“I’m not hearing anything that says, ‘this is inventive and creative,’” she said.

The up-close-and-personal format didn’t make things easy for the candidates.

“It was definitely not comfortable,” Vaughn said, adding that she wished she’d had access to the pre-written questions beforehand.

reverend david murray
PHOTO: Erin Einhorn
Reverend David Murray, who served on the school board member for 16 years during a period when the district was largely controlled by emergency managers, said those managers were responsible for the district’s decline.

But for voters in the room, the format made things easy. In a straw poll after the event, virtually everyone in attendance said they planned to vote.

“We were able to talk to them one-on-one, it’s not just looking on TV,” Nita Redmond said, adding that she came away with a good idea of who would get her vote (she declined to say who). “We were able to talk to them and evaluate ourselves if this would be the best person to lead my district.”

Surveying the room as the forum wound down, Michelle Broughton was of two minds. She carries with her four generations of experience with the district — she is a computer instructor at Renaissance High School, her father graduated from Chatsey High School, a Detroit Public School, in 1961, her children attended the district, and her grandson is in the eighth grade at McKinsey Elementary — and she said she’d heard a lot of what she called “pie-in-the-sky” ideas at the forum.

No one had offered a solution for the roughly 90 classrooms in the district that were without a teacher on the first day of school — a problem that had affected her family in the past.

“If my child goes to school every day and comes home and says, ‘Grandma, I don’t have a math teacher,’ that child is losing weeks,” she said.

But she said the event gave her a feel for the candidates — and reminded her how many Detroiters share her dream of a thriving school district.

“I’m here because I have hope,” she said. “I see a brighter future, and I hope that I pick somebody who will help.”

Future of Schools

Here’s how new federal rules could impact Indiana’s $14M private school tax credit scholarship program

PHOTO: Dylan Peers McCoy
Students at the Oaks Academy in Indianapolis, a private school, play during music practice. The Oaks accepts tax credit scholarships.

Some school choice advocates are uneasy that new federal tax rules could be detrimental to Indiana’s $14 million tax credit scholarship program.

In August, the U.S. Department of the Treasury released rules clarifying new tax law that limited how much state and local taxes an individuals could deduct from their federal taxes. Some fear the changes might discourage donors from contributing to charities like the state’s tax credit scholarship program, in which individuals and businesses can give money to fund students’ private school tuition in exchange for a tax credit from the state.

“Our primary concern is to make sure that the families who are relying on these scholarships, that they can continue to do so,” said Leslie Hiner, vice president of legal affairs for EdChoice, a national school choice advocacy organization based in Indianapolis. “There are a lot of unknowns.”

Jerry Stayton, superintendent of Elkhart Christian School, submitted a public comment about the regulations saying the scholarships are vital to helping private schools stay afloat and give opportunities to low-income families. The tax incentives have “encouraged giving to schools on a scale never before seen.”

“For the federal government to impose a tax on a state tax credit represents a strange and dangerous precedent,” Stayton wrote. “While the federal government is supreme in the United States, its strength is derived from strong, growing, supportive states with great local economies and excellent education.”

There’s optimism, though, that the regulations’ impact could be far more limited in Indiana than in other states,  given how established its scholarship program is, how low income taxes are here, and how many donors are individuals making smaller contributions.

“So far, Indiana is in a better position, I’d say, than some of the high-tax states,” Hiner said. “Nonetheless, that uncertainty is the thing … I have a lot of faith that people in Indiana, and I’m hoping, that any impact in Indiana because of its long history of charitable giving will not be great.”

Below, we break down how this news could impact Indiana’s school choice programs, as well as how the program works and got its start.

First, what are tax credit scholarships?

Indiana’s tax credit scholarship program, which lawmakers passed in 2009, lets taxpayers donate money to nonprofit, state-approved “scholarship granting organizations” in exchange for a 50 percent credit on their state taxes.

Those donations are then distributed to the nonprofits and given out to income-eligible Hoosier families as private school tuition scholarships. To participate, a family of four can’t make more than $92,870 per year.

In 2018-19, the program could distribute as much as $14 million in tax credits, though the amount that can be donated has no cap. Indiana’s tax credit cap has steadily increased up from $2.5 million since 2009.

While the use of vouchers far outstrips the tax credit scholarships, the program is still sizable. It serves 348 private schools across the state. In 2017, the program awarded 9,349 scholarships totaling more than $16 million.

The National Conference of State Legislatures reports that as of 2017, 17 states had tax credit scholarship programs. The largest one in the country is in Florida, where many corporations participate and the program collects and doles out hundreds of millions of dollars each year.

Is the program controversial?

Yes, though it gets far less attention than Indiana’s voucher program, where families use state tax dollars to pay for private school tuition. It also predates vouchers, which weren’t allowed in the state until 2011.

Tax credit scholarship supporters say the donations benefit students in need who otherwise could attend the school of their choice. They also argue the programs can results in savings for states, as the cost for the tax credits is lower than the cost to educate students in public schools.

Critics of the program say it’s just another version of state-subsidized private school, not unlike vouchers. They also point out it is unclear whether these programs allow states to save money — partially because data on where students go to school and how they transfer between public and private schools can be hard to track.

In Indiana, students do not need to have attended a public school before receiving a tax credit scholarship, and the scholarships can pay up to the full tuition amount at their desired school.

What’s the IRS rule change that is causing the concerns?

It comes in response to a part of the 2017 federal tax bill that limited how much state and local taxes someone could deduct from their federal taxes — up to $10,000. Hiner said federal officials proposed the change to allow the government to get more revenue. Giving fewer opportunities for deductions means the government collects more in tax dollars.

In order to get around the $10,000 cap, some high-tax states, such as New York, California, and New Jersey, took advantage of tax credit programs. As a result, the IRS proposed new rules that prohibit the tax credit workaround, and that’s what has school choice supporters up in arms.

“The IRS had a good reason for taking action, but unfortunately in taking action against those bad actors, they swept in thousands of nonprofits across the country,” Hiner said.

How will the rule change affect Indiana?

Advocates hope is that Indiana won’t take as big a hit as other states with higher taxes.

In a press release, the treasury department said most taxpayers will not be affected by the change, with about 1 percent of taxpayers seeing “an effect on tax benefits for donations to school choice tax credit programs.”

It’s really not clear yet if that will come to pass, Hiner said, because taxes won’t be filed until next year. No one can really say now how donors might change their behavior.

The state-approved nonprofit “scholarship granting organizations” that manage private tuition scholarship funds are already fielding questions from donors. Indiana has seven such organizations, six of which are currently granting scholarships.

“The one thing we’re stressing with everyone is to always contact your accountant, financial advisor, or tax preparer to walk through what the impacts could be,” said Betsy Wiley, executive director of the Institute for Quality Education, one of the state’s scholarship granting organizations.

But in Indiana, according to an analysis from CNBC, taxpayers on average don’t claim deductions over $10,000. While the rule change could impact corporations or very large individual donors, most Hoosiers don’t fall in those categories. The vast majority of donors are individuals, and 43 percent of those donations are for less than $1,000, Wiley said.

Wiley hopes the federal government decides to pause implementing these new rules until after taxes for 2018 are filed. This would give donors and nonprofits more time to understand what the effect might be so they can adjust at the state level.

Federal officials are collecting feedback through November, when there will be another hearing on the rules.