Press Release: “Tressa Pankovits joins PPI’s RAS Project, Responds to Warren Anti-Charter Rhetoric”

Tressa joins the team working to modernize our education system for the knowledge economy and an ever-changing world.

 

WASHINGTON— Tressa Pankovits joins the Progressive Policy Institute as the Associate Director of the Reinventing America’s Schools Project (RAS). With more than 10 years of experience in domestic and international education policy, management, and operations, Tressa joins RAS to expand its work around school choice and a modern public school system built for the knowledge economy.

Tressa served 10 years as the Chief Operating Officer for the Vallas Group, Inc., led by esteemed education and public finance expert Paul Vallas, managing large education reform projects in the U.S., Haiti, and Chile. She is the former Chief of Staff of the national education nonprofit AVID, which provides professional development to teachers to accelerate learning and close the achievement gap.

“PPI is delighted to welcome Tressa Pankovits to our school reform team,” said PPI President Will Marshall. “With a background in law, journalism and education reform advocacy, Tressa brings a wealth of talent to PPI’s mission of ensuring that every child in America has an equal opportunity to attend a high quality public school.”

Her political career included managing state and local campaigns, and she served as Communications Director for Illinois’ first female Lieutenant Governor. As a broadcast journalist for 13 years, she won several awards for impactful reporting on social issues, including a regional Emmy.

She joins the education team led by David Osborne, working to advance the 21st century model of public education America needs to thrive in the Information Age. Tressa will focus on research, writing, and related activities, to promote public school choice, autonomy, and accountability. Just last week, Tressa responded to Elizabeth Warren’s anti-charter rhetoric in a blog post for PPI.

 

You can contact Tressa at tpankovits@ppionline.org.

 

On the Blog: If it’s Competition for the Goose, Why Not Competition for the Gander?

Many advocates of school choice have slammed Senator Elizabeth Warren for her new education plan, released last week. We have joined them, on Twitter. But few have pointed out the inconsistency between Warren’s embrace of competition in the rest of her plan—and in many of her economic plans—and her embrace of district monopolies in public education. We thought it would be worth adding this note to what has been a full-throated and well-deserved chorus of derision for her abject capitulation to the teachers unions.

A Response to Elizabeth Warren’s Education Plan

On July 16, 2018, progressive Senator Elizabeth Warren reassured the New England Council, “I am capitalist to my bones.” Capitalism.org defines capitalism as “an economic process where men do not compete to forcibly put down others, but to raise themselves up by creating values which are potentially unlimited.” The education plan Warren released last week, “A Great Public School Education for Every Student,” dangles huge federal grants to encourage values-driven competition. Unfortunately, she does not extend this rational to public charter schools, where such leverage could be enormously constructive for low income families—the constituency she repeatedly claims she is running to represent. 

In positioning herself as the most aggressive anti-charter Democrat, Warren has declared outright war with her pledge to eliminate the federal Charter School Program (CSP), created by President Clinton, then greatly expanded by President Obama. Because most public education policy is determined at the state and local level, completely eliminating this federal program is the most drastic anti-charter statement she could make. Warren claims it necessary to stop the expansion of charters because states do not ensure that they “are subject to the same transparency requirements and safeguards as traditional public schools,” amongst other complaints. She could’ve avoided harming poor families of color—the greatest beneficiaries of charter schools—and alienating that key constituency if she had only applied the competitive methods she suggested throughout other parts of her plan. 

For example, Warren proposes awarding $100 billion in competitive “Excellence Grants” to individual schools to restore arts programs and school-based mentoring. This would create competition between schools and reward those making the best efforts. She promises to award states generous additional Title I fundinga windfall few states could resist if they implement fairer allocation formulas at the local level and more progressive funding policies at the state level. Again, competition designed to “raise up.” She also seeks to address school segregation with a $10 billion competitive grant for states that eliminate restrictive zoning laws that lead to residential segregation—which, of course, drives school segregation.  

So, why not—unless pandering to the anti-charter teachers unions—take the same approach with the federal CSP? Why not use it to strengthen charter schooling, which fills a desperate need for low income and minority families who otherwise do not have access to quality public education? Of the nearly 3.2 million public charter school students, 68 percent are minorities, 26 percent African Americans. More than a million children are on waiting lists nationwide. In many cases, low-income parents say charter schools are their only hope to break their children out of intergenerational poverty and the high crime, high unemployment, blighted neighborhoods in which they would otherwise be trapped. When they enroll in charters, those children learn far more than if they had stayed in district schools.

Of course, not all charter schools are great schools, and those that are not can be and should be closed. On average 3.7 percent of all charter schools have been shut down each year for the past 10 years, compared to just 0.2 percent of all traditional Title I (low-income) district schools during the entire nine years that the No Child Left Behind legislation was in effect. 

The charter school model is now too woven into the fabric of the American public education system, and the demand is for seats in them is too great, for them to be eliminated, regardless of any political promises Elizabeth Warren makes. More important, as the Washington Post editorialized, “There’s nothing progressive about strangling charter schools.” So why not use competition to find solutions to the ills of which Warren complains? Create conditions for awarding federal charter school dollars. Require transparency. Tighten up the charter authorization process, so if authorizes are not closing failing schools, no school they might authorize is eligible for federal grants. Don’t handing the approval process solely to school boards, as Warren suggests; districts are among the worst authorizers, because they are too busy operating schools to oversee charters carefully. (They are also too beholden to teachers unions, who help elect their boards, to make objective decisions about opening or closing charters.) 

According to the American Center for Progress, in a rare show of bipartisan cooperation, Congress has approved increased funds for the CSP as requested by each presidential administration since 1994, topping out at $440 million in fiscal year 2019. Senator Warren, use those capitalist bones to improve the system, not kill it while it is laying golden eggs of opportunity where none existed before. You seem to recognize the value of competition. Well-regulated charter schools create competition by their very existence. 

The Next 10 Million Jobs, Part II–Retail, Ecommerce, and All that

This is the second in our series of posts on “The Next Ten Million Jobs,” the types of jobs being created between now and 2030, based on the latest BLS employment projections. In our first post we looked at the importance of healthcare and social assistance jobs for driving employment growth between now and 2030. In this post we consider the future of retail, ecommerce and related jobs. More particularly, is there a coming “retail apocalypse”? And can we expect a big loss of jobs in the “consumer distribution sector”–wholesale, retail, trucking, couriers and messengers, and warehousing?

The short answer: Not according to the Bureau of Labor Statistics. Based on our extension of the BLS projections, the number of jobs in retail drop by 1.2% between now and 2030, a net loss of 184K jobs. Wholesale jobs are anticipated to drop as well, by 118K between now and 2030.

On the other hand, our extension of the BLS projections show a gain of 294K in the total of warehousing (fulfillment centers), couriers and messengers (local delivery) and trucking. These projected job gains, focused on ecommerce, compensate almost completely for the projected job declines in retail and wholesale. The net projected change for the “consumer distribution” sector between now and 2030? -8K job, practically nothing. So while consumer distribution is not a big contribution to the next ten million jobs, it’s not a big drag either.

It’s worth noting that these projections are somewhat more pessimistic than recent reality. Based on 12-month moving averages, retail employment fell by 40K over the past year. But employment in wholesale, trucking, couriers and messengers, and warehousing rose by 234K, for a net gain of 195K consumer distribution jobs over the past year (on a 12-month moving average basis).

That’s extraordinary. Despite all the claims of job loss, the consumer distribution sector–including retail and ecommerce–is still one of the largest job creators in the economy.

Take a look at the chart below, which shows the 12-month moving average for employment in consumer distribution.

 

 

 

The Progressive Roots of Charter Schools

Improving public education has long been a cornerstone of the Democratic platform. Because progressives understand that access to a quality education is the gateway to a better life, our decades-long struggle to promote equal rights and opportunity for all Americans has been deeply tied to our struggle to create an effective public school system.

In the late 1980s and early 1990s, progressive thought leaders conceived of a new organizational model for our public schools, a system designed for the Information Age rather than the Industrial Era. In this new system, the state or local school board could grant performance contracts to groups of individuals or organizations that applied to open new public schools. These would be exempt from many of the rules and mandates that constrained district-operated schools. They would be encouraged to innovate, to create new learning models that would appeal to children bored or otherwise dissatisfied traditional public schools. If a school succeeded, its contract would be renewed. If the school failed to educate children effectively, it would be closed. Families could choose between a variety of schools, and because tax dollars would follow children to the public school of their choice, districts would lose their monopoly on taxpayer-funded education. Neighborhood schools could no longer fail students for generations; the competition from new public schools would force them to improve or close.

Today, we know these new public schools as “charter schools,” because their performance contract is called a charter. Over the past two decades, cities that have embraced chartering, such as New Orleans, Washington, D.C., Denver, Newark, and Indianapolis, have experienced profound student growth and school improvement.1 The charter formula–school-level autonomy, accountability for results, diversity of school designs, parental choice, and competition between schools—is far more effective than the centralized, bureaucratic approach that developed more than a century ago.

The charter sector has created opportunity for millions of underserved children. But teachers at charter schools tend not to unionize, so as the charter sector grows, union membership shrinks. As a result, union leaders and their allies have gone to war against charters. They claim that charters are a product of “corporate reformers,” a right-wing effort to “privatize” our public schools. These accusations are nonsense. More accurately, they are lies born of self-interest, designed to protect the jobs of mostly white, middle-class teachers and union officials, at the expense of mostly poor, minority kids.

Democrats should know better than to fall for this anti-charter propaganda. For three decades charter schools have been a progressive initiative, brought to us by reform-minded Democrats such as Bill Clinton and Barack Obama. Unfortunately, in the age of President Donald Trump and Education Secretary Betsy DeVos—who also support charters—it’s become far too easy for liberal policymakers, facing pressure from the teachers unions, to cut their historic ties with America’s most successful education reform. As we move into the 2020 election season, Democrats should remember the progressive roots of chartering and think twice before turning their backs on millions of children who have benefited—and could benefit in the future—from charter schools.

 

Craig for The Hill: “Can higher ed bill reauthorization close America’s skills gap?”

House Democrats last week rolled out a sweeping proposal to transform federal higher education policy. Among the proposals included in the bill is a provision that would make community college free nationwide, an expansion of federal Pell grants, and a new set of policies to hold schools more financially accountable for the outcomes of their graduates.

The Democrats’ approach is one that reflects, and seeks to address, a troubling reality: Perhaps more than ever before in our history, too many Americans feel that the American Dream is out of reach. But as it turns out, today’s policymakers may be only perpetuating that challenge.

Read Ryan Craig’s full op-ed in The Hill by clicking here.

Why Trade Rules Matter: A Case Study on Washington State, Airplanes, Subsidies, and Trade Wars

This report is a case study of why global trade rules are vital to Washington State, one of America’s most trade-reliant states.

Our report explains how Washington’s economy, exporters, and workers prosper under rules-based trade, particularly the World Trade Organization (WTO) and its system for settling trade disputes. By contrast, unilateral approaches to trade—like current tariff wars— are causing significant economic harm to Washington. We recommend concrete steps that Washington’s leaders can take to support the global trade system on which the State’s prosperity depends.

Trade in airplanes—which accounts for an astounding 54 percent of Washington’s goods exports and supports hundreds of thousands of Washington jobs—is a particular focus of this report.

We begin by highlighting trade’s critical role in supporting Washington’s economy, creating opportunities for Washington businesses, and providing good jobs for Washington workers. We then explain the importance of the WTO, its rules against unfair practices like trade-distorting subsidies, and its dispute system designed to ensure that countries play by these rules. Unilateral U.S. tariffs and China’s subsidy and tech practices depart significantly from WTO rules and norms.

Our report then explores the longstanding dispute between the United States and the European Union (EU) at the WTO over subsidies for large commercial airplanes.

We highlight how a final decision by the WTO in 2018—confirming that Europe’s Airbus received more than $9 billion in WTO-illegal subsidies from EU governments that must be remedied— provided a major boost to efforts by the United States to level the global playing field in aircraft trade, to the benefit of Boeing and Washington State. (The WTO originally found that Airbus had received over $22 billion in unlawful subsidies, but later reduced that amount to $9 billion because the passage of time caused the remaining subsidies to age out.)

We note, in particular, that an October 2019 WTO arbitration award authorized the United States to impose $7.5 billion in countermeasures against the EU’s WTO-illegal aircraft subsidies, and explain how the United States has employed this authorization to impose targeted tariffs on politically sensitive EU products—like aircraft, cheese, machinery, and wine—to pressure the EU to eliminate its illegal aircraft aid.

We also detail how a March 2019 final decision in a separate WTO case has found that Boeing received $325 million in WTO-violating subsidies during the period reviewed as a result of Washington’s 2003 reduction in its Business and Occupation tax rate for manufacturers of commercial airplanes. We explain why it’s critical for Washington to revise relevant tax law to comply with the ruling in a way that maintains Washington’s competitiveness in airplane manufacturing, while also avoiding creating a new WTO-violating subsidy by ensuring that any fix is broadly applicable.

Go-it-alone tariffs, in contrast to rules-based trade, are harming Washington’s economy and the State’s manufacturers, farmers, tech firms, and workers. We explain why these actions also sow longer-term business uncertainty and fail to set precedents against emerging trade threats, such as unfair competition from China’s state- subsidized aircraft sector.

Finally, we recommend steps that Washington’s leaders can take to bolster open, rules-based trade. Most immediately, they’ll need to develop a positive, WTO-consistent fix to address the recent final ruling against Washington’s tax treatment for the aerospace sector. Additionally, Washington’s leaders should support other key trade initiatives, including reforming the WTO, reining-in abusive tariffs, expanding America’s network of trade deals, and boosting trade enforcement support for products and services that Washington exports.

 

Press Release: PPI Calls for Bolder, Innovative Initiatives to Bridge Modern Skills Gap

PPI Calls for Bolder, Innovative Initiatives to Bridge Modern Skills Gap

To close America’s skills gap and allow tens of millions of displaced Americans to join the dynamic economy, progressives need bolder, more innovative initiatives.

 

WASHINGTON— The Progressive Policy Institute is calling for a more aggressive approach to bridging America’s skills gap following House Democrats’ introduction of major legislation to reauthorize the landmark Higher Education Act. 

Although reauthorization is long overdue, the new legislation, called the College Affordability Act, proposes mainly marginal improvements to a  broken higher education financing system. Moreover, it doesn’t do enough to help people who don’t go to college – the majority of young Americans – acquire the skills they need to land solid, middle-class jobs that remain unfilled in abundance.

“As the College Affordability Act demonstrates, Congress is eager to grapple with Higher Education Reauthorization,” said author Ryan Craig, “but current proposals are marginal improvements on a broken system.”

The research is clear: U.S. Department of Labor statistics suggest that 7.3 million jobs remain unfilled, many of them high-paying, high-skill positions. Survey after survey reports that employers are unable to find skilled workers.

To help close America’s skills gap and allow tens of millions of alienated Americans to join the dynamic economy, progressives need bolder, more innovative initiatives. In a report released today by Ryan Craig and the Progressive Policy Institute, the research assesses conventional remedies and presents creative alternatives: a new Progressive Skills Agenda for all young people, whether or not they are college-bound. 

“Democrats can become the party of workforce development in addition to the party of college,” said Craig, “and if they can, not only will they help return economic power to their traditional working-class base, they’ll have a shot at winning back these crucial voters in 2020 and beyond.”

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Bledsoe for Medium: “Trump’s Ukraine-Gate Attacks on Biden Echo Watergate”

Those viewing and participating in the fourth Democratic debate should ignore the spin, and cut right to the chase. Trump’s Ukraine-gate outrages are about exactly the same thing Watergate was: A corrupt President of the United States illegally attempting to destroy the Democratic presidential candidate he most fears will beat him for re-election.

Remember the famous, frustrated injunction made to Bob Woodward during Watergate by “Deepthroat”, FBI Agent Mark Felt, the original impeachment whistleblower:

You’re missing the overall!” Felt implored Woodward. “They [the Nixon White House] were frightened of Muskie; look who got destroyed. They wanted to run against McGovern; look who they’re running against…”

The media and many in the Democratic Party, too, seem to be “missing the overall.” Trump was out to destroy Biden. Look who’s been falling in the polls. Trump hopes to run against Warren or another candidate that he views as weaker. Looks who’s gaining in the polls. Whichever of the many Democratic legitimate candidates you might support, this influence seems undeniable.

It is, in fact, a hugely troubling sign of how jaded the American polity has become — and how corrupt and amoral the Republican Party now is — that most people don’t seem to recognize the eerie similarity between what Nixon did, and Trump has done.

Read Paul Bledsoe’s full piece on Medium.

On the Blog: Good News for Low Income Taxpayers

IRS Free File and VITA programs should be improved not discarded.

According to the Internal Revenue Service (IRS), 90 percent of taxpayers hire paid tax preparers or utilize tax preparation software to file their taxes.

For low-income families the cost of tax preparation can significantly reduce the value of their refunds. A 2016 study by the Progressive Policy Institute (PPI) found that low-income taxpayers in the Washington-Baltimore metropolitan areas can expect to spend between 13 and 22 percent of the average Earned Income Tax Credit (EITC) refund when using tax preparation services.

One way working families can give themselves a “tax break” is to take advantage of the IRS Free File program. This public private partnership between the IRS and the software industry makes free online tax preparation and electronic filing available to 70 percent of the taxpaying population, and together with the Volunteer Income Tax Assistance (VITA) program serve between 2.5 to 3 million needy taxpayers a year.

In recent years some have criticized these programs for low enrollment rates and encouraging deceptive business practices.  But a recent third-party report commissioned by the IRS shows that the Free File program (while in need of improvement) has saved taxpayers $1.6 billion and is responsible for 53 million free returns since 2002.  

One way working families can give themselves a “tax break” is to take advantage of the IRS Free File program or the Volunteer Income Tax Assistance program. The Free File program, public-private partnership between the IRS and the software industry, makes free online tax preparation and electronic filing available to 70 percent of the taxpaying population and currently serves 2.5 to 3 million taxpayers annually. The Volunteer Income Tax Assistance (VITA) program helps another 3 to 3.5 million taxpayers file every year.

Marshall for The Hill: “Trump’s Syria blunder is escapism not strategy”

President Trump’s decision to pull U.S. troops out of northern Syria – opening the door to the Turkish invasion that began Wednesday – bears all the distinctive hallmarks of his “America First” foreign policy. It’s impulsive, strategically vapid and morally obtuse.

In justifying bolting from Syria, Trump says he wants to extricate the United States from “ridiculous endless wars” in the Middle East. Such rhetoric goes down well with neo- isolationists like Sen. Rand Paul (R-Ky.). But the complaint that America is mired in “endless wars” also is a staple of the progressive left, which sees U.S. actions as mostly to blame for the region’s longstanding sectarian and ethnic conflicts.

It’s time to retire this mindless trope. U.S. forces aren’t engaged in the Middle East because Americans are addicted to war or the trappings of superpower status. They are fighting mainly to contain the very real threat of Islamist terrorism.

Read Will Marshall’s full op-ed here

Osborne, Langhorne for Medium: “The Progressive Roots of Charter Schools”

Listening to the rhetoric of Democratic presidential candidates, one would think charter schools were a Republican initiative opposed by all progressives. Read the full piece here on Medium.

By David Osborne and Emily Langhorne

Listening to the rhetoric of Democratic presidential candidates, one would think charter schools were a Republican initiative opposed by all progressives. Bernie Sanders calls for a halt to all federal funding for charter schools. Elizabeth Warren joins him in condemning for-profit charters.

Former Vice President Joe Biden, who served under a president enthusiastic about charters, told the American Federation of Teachers at a forum, “The bottom line is it [chartering] siphons off money for our public schools, which are already in enough trouble.”

Even candidates who have been charter supporters in the past, such as Michael Bennet, Beto O’Rourke, and Julian Castro, have had nothing positive to say about charters. All seem afraid to draw the ire of the teachers’ unions, which contributed $64 million to candidates, party organizations, and outside spending groups during the 2016 election, according to the campaign finance tracking organization, OpenSecrets.

So it may come as a surprise to readers that chartering originated as a Democratic initiative. Democrats spearheaded charter legislation in most of the early charter states, and Democratic Presidents Bill Clinton and Barack Obama enthusiastically supported charters, pushing through federal legislation to provide funding.

The innovative Democrats who pioneered chartering were looking for a better organizational model for public education — a system designed for the Information Age rather than the Industrial Era. In their new approach, an “authorizer” — usually the state or local school board — grants performance contracts to groups of individuals or nonprofit organizations that apply to open new public schools. Exempt from many of the rules that constrain district-operated schools, they are encouraged to innovate, to create new learning models that will appeal to children bored or otherwise dissatisfied with traditional schools. If a school succeeds, its contract is renewed; if it fails, it is closed. Families can choose between a variety of schools. Districts lose their monopolies on taxpayer-funded education, and their schools can no longer fail students for generations; the competition either takes away their students or forces them to improve.

The new schools are called “charter schools” because their performance contract is a charter. Over the past two decades, cities that have embraced chartering, such as New Orleans, Washington, D.C., Denver, Newark, and Indianapolis, have experienced profound student growth and school improvement. The charter formula — school-level autonomy, accountability for results, diversity of school designs, parental choice, and competition between schools — is far more effective than the centralized, bureaucratic approach that developed more than a century ago.

Teachers at charter schools tend not to unionize, however, so as the charter sector grows, union membership shrinks. By 2000, union leaders and their allies had gone to war against charters. They claim that charters are a product of “corporate reformers,” a right-wing effort to “privatize” our public schools. These accusations are nonsense. More accurately, they are lies born of self-interest, designed to protect the jobs of mostly white, middle-class teachers and union officials at the expense of mostly poor, minority kids.

The Origins of the Charter Concept

In 1988, University of Massachusetts Education Professor Ray Budde, a former principal, published Education by Charter: Restructuring School Districts. He proposed that districts allow teams of teachers to “charter” a program within a school for three to five years.

The following July, Albert Shanker, then president of the American Federation of Teachers, expanded on the concept in his New York Timescolumn, suggesting that teams of teachers charter whole schools, not just programs. Shanker believed that the U.S. needed school systems that provided educators with autonomy and “genuine accountability” for results. He urged school systems to charter schools with a variety of teaching approaches, so that “parents could choose which charter school to send their children to, thus fostering competition.”

In 1995, just two years before his death, Shanker told Republican Congressman Steve Gunderson, who was writing an education reform bill for Washington, D.C., that “every school should be a charter school.”

Democrats Lead the Way in Early Charter States

In 1988, after reading Shanker’s column, members of a nonpartisan civic organization in Minnesota called the Citizens League began working on a report that outlined the framework for charter legislation, led by former League Executive Director Ted Kolderie. In October, when Shanker spoke at the Minnesota Foundation’s annual Itasca Seminar, Democratic State Senator Ember Reichgott Junge and Democratic State Representative Ken Nelson were in the audience. Afterward, Reichgott Junge began drafting charter legislation, with Kolderie’s help, and in 1989 she and Nelson introduced the bill. It passed the Senate but failed in the House, two years running. Finally, in 1991, with help in the House from Democratic Rep. Becky Kelso, a compromise version finally passed. And in 1992, a group of veteran public school teachers opened City Academy in St. Paul, the nation’s first charter school.

In California, conservatives were preparing a voucher ballot initiative that would allow Californians to use tax dollars to send their children to any school they chose, public or private. Democratic State Senator Gary K. Hart, who understood that the electorate was deeply frustrated with public schools, decided the Democrats needed legislation to counter the voucher movement. Hart felt that vouchers relied too much on a free-market approach, threatening the equal opportunity that should be built into public education. A former teacher, he’d already sponsored a bill that gave 200 public schools more autonomy in exchange for more accountability. Chartering was the next logical step: a third way between vouchers and traditional systems.

Democratic Assemblywoman Delaine Eastin introduced a charter bill at the same time, but it required sign-off by the district’s collective bargaining unit for charter approval. Teachers unions pressured Hart to amend his bill to do the same, but he refused. He also stood his ground against demands related to parent involvement and teaching credentials. Hart believed such decisions should be left up to school founders and leaders. He wanted a simple bill that would create a system with limited bureaucracy, in which schools were judged on the basis of student outcomes, not compliance with rules.

Both bills passed the legislature, but Republican Governor Pete Wilson vetoed Eastin’s and signed Hart’s into law. The legislation took effect on January 1, 1993, and that fall, 44 charters opened.

The third bill passed in Colorado, where Democratic Governor Roy Romer was instrumental in pushing it through the legislature. In 1992, Republican Senator Bill Owens and Republican State Representative John James Irwin introduced a bill to create a new, independent school district to authorize and oversee “self-governing” schools. That bill died in the Senate Education Committee, whose chairman, Republican Senator Al Meiklejohn, stood firmly against choice and charters.

Irwin died before the 1993 session, so Owens and his allies reached out to Democratic State Representative Peggy Kerns, to sponsor a new charter bill in the House. The unions and other establishment groups opposed the bill, and Meiklejohn neutered it with amendments in the Senate.

In the House, Kerns and fellow Democrat Peggy Reeves re-amended the Senate bill so that it more closely resembled the original. Gov. Romer met with the Democratic caucus and rallied support on the House floor. The bill narrowly passed, the two bills were reconciled in conference committee, and both houses passed the new version. On June 3, 1993, Romer signed the Charter Schools Act into law.

In Massachusetts, Democratic State Senator Thomas Birmingham and Democratic State Representative Mark Roosevelt, then co-chairs of the Joint Committee on Education, spent several years developing the 1993 Massachusetts Education Reform Act, which sought to reform the state’s education financing system while increasing academic expectations and school accountability.

In the fall of 1991, a mutual friend introduced Roosevelt to David Osborne, who had recently finished a new book, Reinventing Government. Roosevelt described for Osborne the higher academic standards he planned to include in the legislation. Osborne said, “That’s great; standards are important. But what are you doing to do when districts don’t meet them?”

Roosevelt explained that the state would take over underperforming districts. Osborne pointed out that takeovers would stir up intense resistance, severely limiting their use. You need another strategy, Osborne told him. You need choice and competition.

Shortly afterwards, he introduced Roosevelt and his staff to the concept of charter schools. A few weeks later, when Ted Kolderie told Osborne he was planning a trip to Boston, Osborne put him in touch with Roosevelt, and Kolderie helped Roosevelt and his staff write charter language for the bill. When the teachers unions came out against the charter proposal, Roosevelt and Birmingham introduced a cap on the number of charter schools, as a compromise.

In 2016, Roosevelt and Birmingham urged Massachusetts to raise its cap: “We included charter public schools in the 1993 law to provide poor parents with the type of educational choice that wealthy parents have always enjoyed…. We now have enough data to conclude that charter schools have exceeded expectations. In our cities, public charter schools consistently close achievement gaps. No wonder more than 32,000 children are on charter school waiting lists. Imagine being one of the parents crushed with disappointment when your child is not selected.”

By the end of 1994, seven more states had enacted charter laws. Democrats spearheaded the legislation in Georgia, Hawaii, and New Mexico, Republicans in Arizona and Wisconsin, and there was overwhelming bipartisan support in Michigan and Kansas. Of the next 23 states, which passed bills in the rest of the ’90s, all but three had strong bipartisan support.

Even today, most education reformers are Democrats. A study by the American Enterprise Institute (AEI) showed that 87 percent or more of the political contributions made by staff at education reform organizations over the past decade went to Democratic candidates. “The leading participants in the school-reform ‘wars’ are mostly engaged in an intramural brawl,” the authors concluded, “one between union-allied Democrats and a strand of progressive Democrats more intent on changing school systems.”

As reform-minded Democrats attempt to put children first, union-backed Democrats block them. They betray America’s children — particularly those whose parents lack the money to move into a district with strong public schools or send their children to private schools.

Voters should ask this year’s presidential candidates: Which type of Democrat are you?

David Osborne, author of Reinventing America’s Schools: Creating a 21st Century Education System, leads the education work of the Progressive Policy Institute. Emily Langhorne, a former associate director of that project, is now at DAI, which works on economic and social development in low-income countries around the world.

On the Blog: UBI Is The Wrong Way To Fight Poverty

Critics say that UBI risks discouraging people from working, which would shrink our economy and thereby lower U.S. living standards.

by PPI Summer Intern Avi Lipton

In his long-shot bid for the presidency, Andrew Yang has brought fresh attention to an old idea: universal basic income. Yang’s UBI proposal, which he calls “Freedom Dividends,” would guarantee $12,000 a year to every American over the age of 18, without any other qualifications. Yang claims that this new entitlement would achieve many different policy goals, including reducing poverty, replacing the income of workers whose jobs are killed by automation, and helping people pay their bills while they pursue socially constructive activities other than paid work.  

However, critics say that UBI risks discouraging people from working, which would shrink our economy and thereby lower U.S. living standards. What’s more, giving unearned benefits to every American regardless of need would be massively expensive, and Yang’s proposals to pay for his Freedom Dividends aren’t plausible. Yang’s plan stands in sharp contrast to proven policies, such as the EITC, that put cash into the hands of people who need it without discouraging work or spending huge amounts on payments for wealthy people. Does an idea that could undermine economic growth, steer public benefits to the wealthy, and swell public deficits really deserve to be called progressive? 

Of course, everyone would like to have higher incomes and more leisure, but there is this nagging question of how we pay for it. The best way is to encourage private employers to compete for workers by offering higher wages, or positioning workers better to negotiate for a fair wage. But UBI is simply a no-strings-attached wealth transfer that erodes the link between work and economic reward.  If UBI induces enough people to work less, economic growth will slow down. This could trigger a vicious cycle in which policymakers keep increasing the size of the UBI to compensate for a weaker economy.  

UBI is also poorly targeted. Many of the benefits would go to wealthy Americans who don’t need support, at huge cost to taxpayers. Providing every adult in the country $12,000 a year would cost about $3 trillion annually, which is equivalent to 87 percent of all projected federal revenues in 2019. Even without UBI, the federal government is already expected to outspend its revenues by over $1 trillion next year.

Congress would have to raise taxes substantially or borrow heavily to fund Freedom Dividends.  Yang proposes to raise a portion of these revenues with a 10 percent value added tax (VAT). But a 10 percent VAT would only raise between $600 billion and $1.3 trillion in additional revenues, depending on what would be subject to the tax, and the measures he proposes to cover the rest of the costs would not be sufficient to cover the $1.7-$2.4 trillion difference. 

If UBI doesn’t make economic sense, what does? Expanding the Earned Income Tax Credit (EITC) is a better way to supplement the market income of Americans in need. The EITC is a refundable tax credit that phases in at a percentage of a taxpayer’s earned income until the credit reaches a maximum benefit. If the taxpayer’s income rises above a certain threshold, the EITC begins to phase out. This benefit structure incentivizes taxpayers whose incomes are in the phase-in region to work more because each additional dollar they earn also raises the value of their tax credit. The opposite is true for people whose incomes are higher than the phase-out threshold, as earning more income reduces the value of the credit, which may dampen the incentive to work. But people who do not have jobs only face an incentive to begin working, and empirical evidence shows that the EITC’s incentives to work strongly outweigh the disincentives. As such, expanding the EITC would put money in the hands of working people without the risk of discouraging too many people from participating in the labor force.

An EITC expansion would be better targeted than a UBI towards those who need support the most, so it can provide significant benefits to those who truly need them for a fraction of the cost. The EITC’s phase-out structure directs almost all of the credit to households in the bottom 60 percent of the income distribution, and the largest benefits to those in the bottom 40 percent. In 2017, the EITC lifted 5.7 million people above the poverty line (including 3 million children) without paying out large benefits for wealthy people that a UBI would. 

One option for expanding the EITC would be to adopt PPI’s Living Wage Tax Credit (LWTC), which would provide additional benefits worth up to $2,900-$7,500 (depending on the number of children) to low-income households for only $1.6 trillion over 10 years. A similarly structured program that cost 10 times as much would still be roughly half as expensive ($16 trillion over 10 years) as Yang’s Freedom Dividend program ($30 trillion over 10 years). 

Progressives – including Democrats running for President – ought to resist the siren song of UBI and instead embrace policies like the Living Wage Tax Credit and others in PPI’s Progressive Budget for Equitable Growth that are progressive, fiscally responsible, and empower people to participate in the economy.

Press Release: “Court Ruling Continues ‘Groundhog Day’ Cycle for Consumers”

PPI Executive Director Lindsay Lewis calls decision a ‘wake up call’ for Congress to pass bipartisan net neutrality bill

WASHINGTON – PPI’s Lindsay Lewis Statement on Court Decision Today on FCC: “This is a wakeup call for Congress to break the entrenched gridlock on net neutrality and pass a bipartisan bill that will permanently protect an open internet.  Absent bipartisan action, today’s ruling will leave consumers in limbo for years to come, while opening the door to a patchwork of different state standards that could splinter the internet and hurt consumers.  Waiting several more years just to restart the same Groundhog’s Day cycle at the FCC isn’t a good option.  Congress needs to come together and find a bipartisan path forward to enact permanent, clear, enforceable net neutrality rules through statute.”

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Contact: media@ppionline.org

Kane for The Hill: “Fixing America’s heath-care system is going to require radical reform: price caps”

Americans spend more money on health care because prices are higher here than anywhere else in the world. Our system is fraught with waste, our providers (physicians and hospitals) are paid more; and goods like biopharmaceuticals and medical devices are more expensive. On average, U.S. hospital prices are 60 percent higher than countries in Europe and physicians make twice as much as their counterparts in other advanced countries.

But despite spending almost a fifth of the U.S. economy on health care, Americans have no better outcomes (often worse) than other advanced countries. But as long as we are spending so much on health-care services, we don’t have enough funding to go after other upstream solutions to improve health outcomes — things like housing, environment, education and diet, all of which impact a person’s health status.

Read Arielle’s full op-ed by clicking here.