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.

Starting young

These 11-year-old Brooklyn students are asking New York City to do something about segregated schools

PHOTO: Christina Veiga
Matilda and Eliza Seki, left, and their friends Noa and Benji Weiss, right, collected signatures at a district 15 meeting to discuss middle school integration efforts.

While they learned about the history of segregation, a group of Brooklyn 11-year-olds took a good look around their classrooms and realized their schools weren’t so different from the photos in their textbooks.

So Matilda and Eliza Seki paired up with their friends Noa and Benji Weiss — two sets of twins — and decided to do something about it. They launched a petition on calling on the city to integrate its schools.

“We learned about separate and equal in the civil rights movement, and that it was not equal,” Eliza said, referring to the “separate but equal” legal doctrine once used to justify segregation. “And since there are schools with people of only one race, and it’s all separated, it cannot be equal.”

Matilda and Eliza are in the sixth grade at M.S. 839, and Noa and Benji are fifth-graders at P.S. 10. They already have a bit of experience in activism, having joined the Women’s March in D.C., and helping to lead environmental clubs at their school. They hold sophisticated views for kids their age, and are aware of the hurdles ingrained in addressing school segregation.

Describing how housing patterns can tie into school quality, Benji began his thoughts by saying: “Let’s say you’re from a different culture or race and you don’t have as much money as other people do — because we still live in a racist country — and you’re in an area where the housing is cheaper but you don’t have as good schools.”

Across New York City, adults have debated how to spur integration in the country’s largest school system — and one of the most segregated. According to one recent analysis, the city’s most selective high schools enroll 84 percent white and Asian students, even though those groups make up only 30 percent of the city’s student enrollment.

But student-organized groups have also been at the forefront of a grassroots movement for more diverse schools. The work of budding advocates Matilda, Eliza, Noa and Benji caught the attention of some those groups, and they’ve now joined the ranks of Teens Take Charge and IntegrateNYC as some of the youngest members. The changes they’d like to see go beyond admissions policies, but also include a push for additional resources for underserved schools, hiring more teachers of color and curricula that reflects all students and cultures.

“We decided it was an important issue and we wanted to help fix it,” Noa said.

Matilda added: “Our schools should look like our city.”

Their schools are in District 15, where 81 percent of white students are concentrated in just three of the district’s most selective middle schools, according to an analysis by parents. The city has launched a series of public workshops to craft a new admissions model to integrate middle schools there, but these kids already have their own ideas for how to do that.

Benji, who is heading to middle school next year, said it would be “pretty good” if schools stopped picking students based on criteria such as class grades and attendance. Such “screening” contributes to segregation because of a number of factors — from which elementary schools students attend, to their parents’ ability to navigate the complicated admissions process.  

“It’s… important to learn about different peoples’ backgrounds, and religions, and cultures,” he said. “And also to make sure that all kids, no matter their race, religion or where they live can get the same, good education.”

biding time

Strike vote by Denver teachers no longer imminent due to contract extension

PHOTO: Eric Gorski
The bargaining teams from Denver Public Schools and the Denver teachers union at a contract negotiation session in 2017.

Although the Denver school district and its teachers union failed to reach a deal on an overhaul of the district’s pay-for-performance system, the prospect of a strike is less imminent.

Earlier this week, the union’s board of directors authorized a strike vote if a new agreement couldn’t be reached by the time the current one expired at midnight Wednesday.

The two sides couldn’t come to terms on how to change the system, but did reach a different kind of deal: District officials agreed to the union’s request to extend the current pay-for-performance agreement until January 2019 in the hopes that Colorado voters will approve a tax increase in November benefiting schools, making teacher pay raises more likely. However, the union did not take the threat of a strike completely off the table.

A statement from the union, the Denver Classroom Teachers Association, said the union “will begin preparing to take work actions to ensure progress on the new compensation system. If no agreement is reached by the Jan. 18 deadline, DCTA will immediately ask for a strike vote from union members the following day.”

In other districts that have experienced labor conflicts, teachers have picketed, refused to work extra hours, and even waged “sickouts.” The Denver teachers union did not specify the types of work actions they were considering.

Denver Public Schools Superintendent Tom Boasberg said the district was reluctant to sign a ten-month extension, “but in the end, we are prepared to honor their request for more time.”

“We all have a very clear, common goal and common interest around supporting our kids and giving our kids the very best chances to learn and grow,” Boasberg said. “I’m confident that common goal and common aspirations will help us move toward an agreement.”

Denver’s pay-for-performance system, called ProComp, was first piloted in 1999. Under the current agreement, teachers earn a base salary based partly on their level of education and years of experience, and partly on how much training they completed the year before and on the outcome of a yearly evaluation that takes student test scores into account.

Teachers can also earn bonuses and incentives on top of their base salary. This year, for example, teachers who work in a hard-to-serve school with a high percentage of students living in poverty can earn an extra $2,578 per year.

The union wants to make teachers’ paychecks more predictable by moving back to a traditional “steps and lanes” salary schedule in which raises are based on education and experience. Union leaders also want higher base salaries. The union proposed a salary schedule that would pay teachers with a doctorate degree and 20 or more years of experience a base salary of $100,000 with the opportunity to earn a more limited number of incentives on top of that.

The district, meanwhile, proposed a salary schedule that would continue to take teacher evaluations into account when calculating raises but would allow teachers to more significantly build their base salaries for more years. While the union’s proposal shrinks some incentives, the district’s proposal grows the incentive for teaching in a hard-to-serve school.

District officials said the union’s proposal is too expensive. ProComp is funded by a voter-approved tax increase that is expected to raise about $35 million this year. The union’s proposal would cost more than twice as much, district officials said.

Union leaders asked to extend the current agreement until January 2019 in the hopes that Colorado voters approve a proposed ballot measure that would raise $1.6 billion for schools. Backers of the measure, which would increase income taxes for people who earn more than $150,000 per year, are collecting signatures to get it on the November ballot.

Colorado’s Taxpayer’s Bill of Rights requires that voters approve any tax increase. In 2013, voters rejected a school funding tax increase that would have raised $950 million its first year.

Boasberg supports this year’s effort. He’s among the Colorado superintendents pushing for a new, “student centered” school funding formula if the measure passes.

“The entire purpose of that funding measure is to strengthen teacher compensation, decrease class sizes, and improve supports for kids,” Boasberg said. “So if that passes, of course we will eagerly sit down with DCTA to discuss how we strengthen our compensation for teachers.”