funding dance

City plans to slash funding from Young Adult Borough Centers — a last resort option for students

PHOTO: Patrick Wall
Boys and Girls High School has seen two principals depart since the Renewal program started.

Evening programs that offer students who struggled in high school another chance to graduate may soon face steep funding cuts from the city’s education department.

Education officials plan to reduce funding directed to the city’s 23 Young Adult Borough Centers by an average of $254,000 each, and will shift the money to transfer schools, which also help students who have fallen behind in traditional schools.

The funding in question is used to hire counselors who help keep students engaged in school, offering career and academic support, and to pay students to complete internships. City officials are planning to shift funding so that more transfer schools — serving more students — can get those benefits.

But the move could leave schools that serve some of the city’s most vulnerable students with fewer resources to get them to graduation, some observers said, all while Mayor Bill de Blasio has vowed to increase the city’s graduation rate to 80 percent. Several agencies that provide those services in schools argue the funding shift will have dire consequences for YABCs.

The cuts will be “devastating [and] would fundamentally change the program,” said Michelle Yanche, director of government and external relations at Good Shepherd Services, a nonprofit organization that helps run the program in a dozen YABCs. “It shouldn’t be taken from Peter to pay Paul.”

Young Adult Borough Centers, which serve about 4,800 students citywide, are night programs rather than standalone schools. Transfer schools, meanwhile, are actual schools that run classes during the day, serving about 13,000 students. In both, students who have fallen behind in high school work toward high school diplomas.

The funding stream the city plans to shift from YABCs to transfer schools is dedicated to a program called Learning to Work. Education officials are actually increasing the amount of money spent on that program by $3.7 million. But because the city is planning to expand it to 18 more transfer schools, the average transfer school will see about a $7,000 bump, while YABCs each lose roughly $250,000.

City officials said the exact changes in funding will depend on student enrollment and need, and stressed that the funding changes are estimates. Overall, the changes are a positive, they said, since they provide more funding and will reach more students.

“Expanding Learning to Work to all eligible transfer schools is what’s best for students and families, and will support approximately 5,000 more high-needs students on their path to college and careers,” said education department spokesman Will Mantell.

Helene Spadaccini, principal of a transfer school in the South Bronx, said her school has used the program to place students in internships in fields like retail and construction.

“It’s been extremely powerful in working with our students, which is why I’m really glad it’s spreading,” Spadaccini said.

But the shift will mean YABCs lose about a third of their current funding, and will result in staffing reductions. The staff-to-student ratio at YABCs is expected to balloon from one staff member per 34 students to one per 55, according to a Department of Education document obtained by Chalkbeat.

The change in staffing levels could have a major effect on the program’s quality, multiple providers said. “What makes the difference for our students is if they have individual adults who are like clams holding on to them, who know if they are going to school every day, and reach out if they don’t,” Good Shepherd’s Yanche said. “That relationship is the most pivotal factor.”

Sheila Powell, who has two children who graduated with the help of YABCs, has seen that firsthand. In the YABCs, unlike in larger high schools, teachers ensured her children didn’t slip through the cracks, Powell said. They also called her multiple times each week to check in.

“They loved my daughter, they loved my son,” Powell said. “They were really concerned, genuinely concerned, about my kids and they didn’t give up on them.”

Several providers and advocates said they supported the expansion of Learning to Work into more transfer schools — just not at the expense of other programs that serve the city’s most vulnerable students.

“New York City continues to see increased graduation rates, and the range of programs [for over-age and under-credited students] are a big reason why,” said Lazar Treschan, director of youth policy at the Community Service Society. “Moving any funding out of YABCs seems very short-sighted.”

hands on

Apprenticeships are now open for the second round of CareerWise high school students

PHOTO: Denver Public Schools
Denver student Quang Nguyen works at an internship this past summer.

More than half the companies that signed on for the launch of Colorado’s apprenticeship program CareerWise have renewed and plan to take on a second group of apprentices this fall, while a number of new companies have added programs.

That means there are 160 new openings for Colorado high school students in fields ranging from manufacturing to information technology to healthcare, a 33 percent increase from the 120 positions available to the first group of students last year.

CareerWise offers three-year apprenticeships to students starting in their junior year of high school. It’s based on the Swiss apprenticeship model and was conceived by Gov. John Hickenlooper and businessman Noel Ginsburg, who is himself now a candidate for governor, after a trip to Switzerland in 2015. The first apprentices started in 2017.

Brad Revare, CareerWise’s director of business partnerships, said most of the companies that didn’t renew are small firms that don’t feel like they have the capacity to take on a second apprentice right now. Some are still deciding if they’ll renew — this recruitment cycle hasn’t closed — and some companies have said they plan to take a second apprentice when the first apprentice is in his or her third year so that the older student can serve as a mentor.

Revare said the renewal rate has been a pleasant surprise.

“We didn’t anticipate this high of a renewal rate,” he said. “We believe that demonstrates that partnerships aren’t just a good corporate citizen thing, but a good return-on-investment business decision. To sign up for a second cohort when the first cohort is only on the job for six months speaks to the value of this program.”

There’s still a lot of work to be done for the program to achieve its goals, though. The charge from the governor, who has made workforce training and apprenticeships one of his priorities, is to have 20,000 high school students in apprenticeship programs within 10 years. He reiterated that goal in his State of the State address Thursday.

The renewing companies include Arrow Electronics, the city of Grand Junction, University of Colorado Denver, DaVita, DH Wholesale Signs, DT Swiss, EKS&H, Geotech Environmental, Gordon Sign, HomeAdvisor, Intertech Medical, Intertech Plastics, Mesa 51, Mile High United Way, Monument Health, Nordson Medical, Prostar Geocorp, Research Electro-Optics, SAS Manufacturing, Skillful, Stonebridge, Swiftpage, TeleTech, and Western States Fire Protection

New participating businesses for 2018 include Janus Henderson Investors, Otter Products, SAVA Senior Care, the city of Aurora, and the governor’s Office of Information Technology.

CareerWise is still recruiting more businesses for 2018.

To find an apprenticeship, check out CareerWise’s Marketplace.

Business of education

Memphis leaders say diversifying school business contracts will help in the classroom, too

PHOTO: Laura Faith Kebede
Winston Gipson confers with his wife and daughter, who help run Gipson Mechanical Contractors, a family-owned business in Memphis for 35 years.

Winston Gipson used to do up to $10 million of work annually for Memphis City Schools. The construction and mechanical contracts were so steady, he recalls, that his minority-owned family business employed up to 200 people at its peak in the early 2000s.

Looking back, Gipson says being able to build schools was key to breaking through in the private sector.

“When we got contracts in the private sector, it’s because we did the projects in the public sector,” said Gipson, who started Gipson Mechanical Contractors with his wife in 1983. “That allowed us to go to the private sector and say ‘Look what we’ve done.’”

But that work has become increasingly scarce over the years for him and many other minorities and women. The program designed to address contract disparities in Memphis City Schools was cut during its 2013 merger with Shelby County Schools.

A recent study found that a third of qualified local companies are owned by white women and people of color, but such businesses were awarded just 15 percent of the contracts for Shelby County Schools in the last five years.

It was even worse for black-owned construction companies, like Gipson’s, which make up more than a third of the local industry but were awarded less than 1 percent of contracts.

The disparity is being spotlighted as the city prepares to mark the 50th anniversary of the death of civil rights leader Martin Luther King Jr., who was assassinated in Memphis while trying to fight for the rights of minority workers in 1968.

On Jan. 25, Chalkbeat will co-host a panel discussion on how Shelby County Schools, as one of the city’s largest employers, can be an economic driver for women- and black-owned businesses. Called “Show Me The Money: The Education Edition,” the evening event will be held at Freedom Preparatory Academy’s new Whitehaven campus in conjunction with MLK50 Justice Through Journalism and High Ground News.

Community leaders say school-related business contracts are a matter of equity, but also an education strategy. Since poverty is a crucial factor in why many Memphis students fall behind in school, the lack of job opportunities for their parents must be part of the discussion, they say.

The district already is taking steps to improve its record on minority contracting, starting with setting new goals and resurrecting the city district’s hiring program.

Big district, big opportunity

Shelby County Schools is Tennessee’s largest district. With an annual budget of more than $1 billion, it awards $314 million in business contracts.   

An otherwise dismal 1994 study of local government contract spending highlighted Memphis City Schools’ program to increase participation of historically marginalized businesses as one of the county’s most diverse, though some areas were cited as needing improvement. The same study criticized the former county school system, which lacked such a program, for its dearth of contracts with Minority and Women Business Enterprises (MWBEs).

But when the two districts merged in 2013, the program in Memphis City Schools disappeared.

“We had to cut, cut, cut,” said school board member Teresa Jones. “We were trying to stay alive as a district. We did not focus as we should have.”

Jones, a former school board chairwoman, said it’s time to revisit the things that were working before the merger. “We have to get back,” she said, “to make sure there’s equity, opportunity, access, and an atmosphere that promotes business with Shelby County Schools.”

District and community leaders say the consolidated district has lost its ability to develop relationships with qualified minority-owned businesses.

“There was an infrastructure where African-Americans felt comfortable enough approaching the school system” for work, said Melvin Jones, CEO of Memphis Business Contracting Consortium, a black business advocacy group formed in 2015. “There was trust. During the merger, they dropped the infrastructure.”

Brenda Allen

Without the outreach, “we’re seeing the same vendors,” said Brenda Allen, hired last summer as procurement director for Shelby County Schools after working in Maryland’s Prince George County Public Schools, where she oversaw a diversity contracting program.

“We’re not marketing the district like we should,” she told school board members in November.  

Shelby County Schools is not alone in disproportionately hiring white and male-owned companies for public business. Just 3 percent of all revenue generated in Memphis goes to firms owned by non-white people, even though people of color make up 72 percent of the city’s population, according to a 2016 report by the Mid-South Minority Business Council Continuum.

Not coincidentally, district and community leaders say, Memphis has the highest rate of young adults who aren’t working or in college, and the highest poverty rate among the nation’s major metropolitan areas. About 60 percent of students in Shelby County Schools live in poverty and all but three of the district’s schools qualify for federal funding for schools serving high-poverty neighborhoods.

Jozelle Luster Booker, the CEO of the MMBC Continuum, developed an equity contracting program for the city utility company following the 1994 study that was so critical of the city. The program funneled half a billion dollars to minority-owned businesses — an example of how government policies can promote equitable contracting, and grow businesses too.

“When that happens, you could basically change the socioeconomic conditions of that community, which impacts learning,” Booker said. “They’re ready to learn when they come to school.”

Shelby County Schools plans to hire a consulting firm to help develop a procurement outreach program and set diversity goals for its contractors and subcontractors. The program will launch in July, and Allen plans to hire three people to oversee it.

PHOTO: Brad Vest/The Commercial Appeal
Bricklayers from TopCat Masonry Contractors LLC work on an apartment complex in downtown Memphis in 2014.

The district also is part of a city-led group that provides a common certification process for businesses seeking contracts with city and county governments, the airport, the transit authority, and Memphis Light Gas & Water. The city’s office of business diversity and compliance also has a list of qualified minority businesses, offers free business development courses, and accepts referrals from other government entities to reduce redundancy.

“As you spend public dollars, you always want those dollars to be spent in your neighborhoods because that money comes back into your economy,” Allen said. “When people have jobs, you should see crime go down. You should see more people wanting to do business in the community if you have a good program.”

Leveling the playing field

In order for it to work, there has to be consistent reports, measures and, most of all,  accountability, according to Janice Banks, CEO of Small Planet Works, who helped the district with its disparity study.

Gipson agrees.

A wall of his second-floor Memphis office is lined with photos of some of his most significant projects during his 35 years of business, including a multimillion-dollar mechanical contract with AutoZone when the Memphis-based car part company moved its headquarters downtown in the early 2000s.

The work was made possible, he said, because of public sector jobs like constructing nine schools under Memphis City Schools. But that work evaporated after the merger. “It’s mostly been Caucasian companies that do the work (now),” he said. “It’d be one thing if you didn’t have anyone qualified to do it.”

Shelby County Schools will have to show commitment, he said, if it wants to level the playing field.

“You have the mechanism in place to make a difference,” he said. “Now do you make a difference with that mechanism or do you just walk around, beat your chest, and say we have a disparity study and let things run the way they’ve been running?”

“If you don’t make it happen, it will not happen,” he said.