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Wed Jan 23, 2013, 03:44 AM

 

Rahm-connected Chicago Charter Schools get massively disproportionate funding under new bill

Mods please note: this is a press release, no copyright restrictions

NEWS RELEASE *** FOR IMMEDIATE RELEASE *** January 17, 2013

CONTACT: Julie Woestehoff, Parents United for Responsible Education
(PURE) – 773-715-3989
Rosemary Sierra, President, Pilsen Academy Local School Council –
312-719-2740


CHICAGO- Today, representatives of Parents United for Responsible Education and Chicago Local School Councils will meet with the Illinois Office of the Executive Inspector General to ask for an investigation of the financial conditions of the United Neighborhood Organization (UNO) and its use of millions in taxpayer funds.

The Illinois General Assembly was on the verge of considering Senate Bill 24 on January 3rd, 2013...the bill would give UNO charters another $35 million appropriation beyond the $98 million they have already received... If SB 24 is approved by the state legislature, UNO and CPS would each be in line for the $35 million in state appropriations, which would result in approximately $5,415 in funding for each UNO student and $2.7 million per school, compared to approximately $89 in funding for each Chicago Public School (CPS) student and $54,405 for each school.

“It is outrageous that UNO is slated to receive the same amount of money as the entire Chicago school district will receive, when UNO runs only 13 schools,” said Julie Woestehoff, PURE executive director. “We call on the Illinois Inspector General to investigate how this
politically-connected organization is able to amass such a large amount of taxpayer dollars without accountability to the public. Certainly UNO should not receive any more money until it is clear to the public that the money is being used properly, for improved education for Chicago
children and not UNO’s ambitious real estate portfolio...”

UNO has received nearly $100 million in legislative earmarks, and nearly $70 million in tax-exempt bonds to buy land, build schools and meet its lenders’ and bondholders’ expectations for the charter operator’s growth in enrollment and revenue. These bonds and direct state handouts were issued for the purchase of land and construction for UNO’s rapid
expansion program, and enabled the growth needed to meet debt payments and growth commitments to UNO’s lenders and other bondholders in a complicated financial shell game.

“Our school has never gotten the programs and supplies our children need. Now CPS is planning to close a lot of schools, supposedly to save money. At the same time, UNO keeps getting millions of dollars to pull students from our school and put us in danger of being closed,” said Rosemary Sierra, local school council president at Pilsen Community Academy. “We thought the state had a budget crisis, but they seem to be able to find millions for the politically-connected people at UNO. Meanwhile, some of UNO’s schools have the lowest rating in CPS.”

UNO Board Chairman Juan Rangel and Chicago Mayor Rahm Emanuel are longtime allies. Rangel recently served as finance chairman of Emanuel’s mayoral campaign, and he and other appointed-not elected-UNO leaders have strung together multiple taxpayer-subsidized and tax-exempt financial transactions to pay off private bank loans and private bondholders. UNO is using this largesse to engineer a rapid buildup of not only its student enrollment, but of substantial real estate holdings as well.

A breakdown of three years of UNO tax-exempt bonds is attached. It shows that, with each successive transaction, the financial burden has resulted in higher debt-per-student costs as UNO has nearly no other source of revenue other than public transfers via direct subsidies, publicly issued bonds and government contracts. If UNO fails to secure more buildings and more students, the growing financial burden will likely have an adverse impact on its students as per-pupil classroom spending will suffer due to an increasing portion of the network’s income being diverted to cover debt payments...

http://www.substancenews.net/articles.php?page=3906§ion=Article

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Reply Rahm-connected Chicago Charter Schools get massively disproportionate funding under new bill (Original post)
HiPointDem Jan 2013 OP
leftyohiolib Jan 2013 #1
HiPointDem Jan 2013 #2
msanthrope Jan 2013 #3
datasuspect Jan 2013 #11
msanthrope Jan 2013 #17
datasuspect Jan 2013 #25
msanthrope Jan 2013 #26
datasuspect Jan 2013 #27
msanthrope Jan 2013 #29
madfloridian Jan 2013 #12
msanthrope Jan 2013 #13
HiPointDem Jan 2013 #4
theaocp Jan 2013 #19
HiPointDem Jan 2013 #5
Guy Whitey Corngood Jan 2013 #6
HiPointDem Jan 2013 #7
leftstreet Jan 2013 #8
HiPointDem Jan 2013 #9
msanthrope Jan 2013 #15
HiPointDem Jan 2013 #10
RedCappedBandit Jan 2013 #22
HiPointDem Jan 2013 #23
msanthrope Jan 2013 #28
RedCappedBandit Jan 2013 #33
msanthrope Jan 2013 #14
Politicub Jan 2013 #16
octoberlib Jan 2013 #18
hay rick Jan 2013 #20
HiPointDem Jan 2013 #21
hay rick Jan 2013 #30
HiPointDem Jan 2013 #31
HiPointDem Jan 2013 #24
Egalitarian Thug Jan 2013 #32

Response to HiPointDem (Original post)

Wed Jan 23, 2013, 08:00 AM

1. the charter school scam

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Response to leftyohiolib (Reply #1)

Wed Jan 23, 2013, 01:46 PM

2. yep

 

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 02:26 PM

3. I think you are ill-advised to critique this Hispanic, Democratic-supporting organization.

UNO is well-known in Chicago for serving poor, overcrowded Hispanic communities where English is definitely the second language. Hispanic children, documented and undocumented, are their charter base. They got capital improvement money to build and lease schools for these children, relieving overcrowded schools in their neighborhoods--some of the poorest neighborhoods in Chicago.

Unlike other demographics, the Hispanic population (both documented and undocumented) of Chicago is increasing. There was severe overcrowding in Hispanic-majority schools in Chicago, and a lack of ESL services. UNO has worked to change that.

REPUBLICANS demonize grassroots Hispanic organizations, NOT DEMOCRATS!!!!

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Response to msanthrope (Reply #3)

Wed Jan 23, 2013, 05:07 PM

11. UNO is a clout farm

 

rangel would get run out of anywhere else.

bunch of neoliberal privatizing pirates.

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Response to datasuspect (Reply #11)

Wed Jan 23, 2013, 05:50 PM

17. Who wants to drive a wedge between Hispanics and Democrats? I'm awfully suspicious of this

critique from the "Left" of this Hispanic organization.

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Response to msanthrope (Reply #17)

Thu Jan 24, 2013, 09:35 AM

25. because it's a front

 

and it's all clout heavy plantation level bullshit.

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Response to datasuspect (Reply #25)

Thu Jan 24, 2013, 09:41 AM

26. Again....who wants to drive wedges between Democrats and Hispanics?

This isa prime example of ratfucking.

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Response to msanthrope (Reply #26)

Thu Jan 24, 2013, 09:50 AM

27. it has nothing to do with that at local chicago politics level

 

the problem is the city spending public dollars on private schools.

they could be hittites for all i care, daley jr and tiny dancer rahm are the scumbag ratfuckers in all of this.

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Response to datasuspect (Reply #27)

Thu Jan 24, 2013, 09:58 AM

29. These aren't private schools. These are public charters. And the highly charged, racist

language used on this thread is no surprise....it rings a Bell.

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Response to msanthrope (Reply #3)

Wed Jan 23, 2013, 05:18 PM

12. Here is only one of many articles about UNO. Teacher fired for not doing impossible things.

http://www.chicagoreader.com/chicago/uno-charter-school-fires-teacher-without-hearing/Content?oid=7514850&showFullText=true

" In short, he was fired for not doing what couldn't be done. "It's physically impossible to be in the boys' locker room, the girls' locker room, and the gym at the same time," he says.

But the decision was final, McCarry told him. Security guards escorted Corral out of the building as students, parents, and other teachers watched.

Within a few months he hired a lawyer, Elaine Siegel, and on June 2, 2010, he filed a suit claiming he'd been fired "for reporting suspected child abuse." He asked for back pay plus damages. The case has been dragging on in federal court ever since.

But some illuminating details have surfaced in discovery. Siegel got a copy of an e-mail in which McCarry said she'd notified Rangel of the locker room incident two days after it happened, when she'd finally tracked him down in Cancun on Thanksgiving. "Juan is ready to fire the gym teacher," McCarry wrote. In other words, Rangel dismissed Corral without hearing his side of the story, then or since."

4 paragraphs don't do justice.

I have a lot more, but it is readily available online on a search.

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Response to madfloridian (Reply #12)

Wed Jan 23, 2013, 05:42 PM

13. What happened to the lawsuit? nt

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 02:46 PM

4. Report finds charters struggling like other CPS schools

 

Mayor Rahm Emanuel and other city leaders have long heralded charter schools' innovative approach to education, but new research suggests many charters in Chicago are performing no better than traditional neighborhood schools and some are actually doing much worse.

More than two dozen schools in some of the city's most prominent and largest charter networks, including the United Neighborhood Organization (UNO), Chicago International Charter Schools, University of Chicago and LEARN, scored well short of district averages on key standardized tests.

http://articles.chicagotribune.com/2011-11-30/news/ct-met-charter-schools-performance-1130-20111130_1_chicago-international-charter-schools-andrew-broy-school-report-cards

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Response to HiPointDem (Reply #4)

Wed Jan 23, 2013, 05:54 PM

19. I love how they call charters "innovative"

I've worked in both traditional and charter. Other than a lack of a union at the charter and our principals calling themselves CAO, wtf is the difference? What the hell is so "innovative" that I missed with my real life experience?

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 02:53 PM

5. Parents raise questions about UNO charter schools' use of millions from state grant

 

The United Neighborhood Organization is the former Alinsky-styled community group that's built an empire of 11 charters and counting through what executive director Juan Rangel describes as years of "hard work."

What he doesn't stress quite as much is the political clout and connections UNO has cultivated with mayors Richard Daley and Rahm Emanuel, as well as Governor Pat Quinn, to the tune of about $30 million a year in public funding. And counting.

As for the Reader, well, in our tongue-in-cheek political roundup to close out 2011, we honored Rangel, in a manner of speaking, with the Halliburton Award, given to the private contractor who quietly runs a wing of government.

Another row of children—all wearing the UNO brand—obediently files down the hall.

"Look at these kids. There are people who say they can't stand in a straight line. We're here to say it's doable.

"White liberals, they think they know what's best for our community. This community has a lot of assets—it's family oriented, there's good housing here. But the schools are crappy." And the schools are crappy, he says, because some people send the message that it's normal for Hispanic kids to fail. And most of those people are white liberals. In fact, Rangel keeps bringing up white liberals until we ask who exactly he's talking about. What about his white liberal benefactors and supporters, such as Arne Duncan, school board member Penny Pritzker, state senator Heather Steans—and Rahm Emanuel?

Rangel doesn't say a word...

As long as we're on the subject of Mayor Emanuel, we note that he seems to visit UNO schools a lot—using them as a backdrop when he holds a press conference to rip the regular public schools or the teachers union.

In short, he's not apologizing for presenting UNO as the voice of Hispanics in Chicago. "When people say, 'How does UNO get a $98 million windfall in these tough budget times?' Well, that's for them to figure out."

http://www.chicagoreader.com/chicago/unos-juan-rangel-talks-charter-schools/Content?oid=5683115&storyPage=2

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 02:54 PM

6. K&R nt

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 03:04 PM

7. Charter School Profiteer Attempts to Swiftboat Chicago Teachers Union

 

Slick politicians know very well that it is best to use "proxies" to divide a community. Proxies are people who can say the things leaders cannot say...

It would not be acceptable for Mayor Emanuel to say, "I'm turning over public schools to the wealthiest 1% of Chicagoans and cutting middle-class jobs by busting the Chicago Teachers Union." That's why he has Juan Rangel, well-clouted CEO of the United Neighborhood Organization -- a profitable charter school chain -- at his side. At a recent speech to the City Club of Chicago, Rangel went on a tirade about the CTU and defended Chicago's billionaire elites in the face of criticism by Chicago's hardworking taxpayers:

(CEO Rangel) praised the work of wealthy charter school supporters -- and mayoral allies -- like Bruce Rauner and the Pritzker family. "Do we have the resolve to embrace Chicago's wealthy community... and support them as a focal source of energy that fuels the school reform movement with their money? Or will we shy away from them and allow the silly talk that currently passes for debate about the so-called one-percenters privatizing our schools?"


Why would he be kissing up to the wealthy that support the efforts to break the unions and privatize schools? Rangel's annual salary is around $266,000... Taxpayers do not know where money shifts to give Rangel a salary larger than the CEO of all 600+ Chicago Public Schools.

The more schools he opens, more state money is funneled into his system as his patronage chest bursts at the seams...some of that money must go to lawyers who work their legal magic to ignore Freedom of Information Act requests from Chicago taxpayers... If Rangel's staff were unionized and could negotiate over wages, benefits, and resources he would have to show the budgets of his schools to counter their proposals. Without the pressure of an organized workforce , he could do whatever he wants with that money like line his own pockets and the pockets of his connected friends.

http://www.huffingtonpost.com/kenzo-shibata/juan-rangel-ctu_b_1847620.html

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 03:15 PM

8. DURec

Disgusting

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 04:28 PM

9. "This is how Chicago works"

 

Juan Rangel graduated from Northeastern Illinois University with a degree in Communications and has no background in education. In New Orleans - where he has no political clout - his UNO school was closed down for failing. In Chicago, where he props up corrupt politicians, his schools (all of which have failed to make AYP every year they've been open) remain open.

This is how Chicago works - the "people of color" that support corrupt politicians get monetary rewards and pretend they represent their community. He's a poverty pimp - plain and simple. He oversees less than 10K students and pays himself much more than the CEO of CPS which oversees 300K students. He doesn't know anything about running or school - he just knows how to kiss white "liberal" a*$.


Rahm Emanuel is not a liberal. Nor is Duncan, nor Obama. All are neoliberals (market fundamentalists) who consistently seek to privatize and deregulate public institutions including schools. The problem with UNO and other privatized charters is that they concentrate governance, shift control away from democratically elected school councils, worsen racial segregation, do nothing to counter the historical funding injustices, and de-unionize schools resulting in higher teacher turnover and less experienced teachers. They also tend to target poor and predominantly non-White kids with repressive control-oriented pedagogies and school models that would never fly in the professional class suburbs.

Lastly, chartering sets the stage for future privatizations by for profit management companies to take over. It is an interim step to get the unions and traditional school model out of the way. Charters like UNO do no better on standardized tests relative to comparable CPS schools and that is a national pattern despite billions being given to them by the Gates Foundation. Chartering in Chicago needs to be halted immediately and this ought to be understood as a similar privatization scheme to the parking meters, trash collection, and public service privatizations that are skimming public money out to contractors while ruining good jobs.

http://www.chicagoreader.com/chicago/unos-juan-rangel-talks-charter-schools/Content?oid=5683115

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Response to HiPointDem (Reply #9)

Wed Jan 23, 2013, 05:45 PM

15. Critiquing a Hispanic community organizer--"He just knows how to kiss white liberal ass." Who does

that?

Who wants to drive a wedge between Democrats/liberals and Hispanics?

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 04:55 PM

10. The Mystery of De La Cruz and Renaissance 2010

 

De La Cruz, in Chicago's Pilsen neighborhood, was a small middle school, taking kids mainly from Whittier Elementary and sending them on to Juarez HS. Small--a few hundred students. To the Chicago Public Schools, under the auspices of the Renaissance 2010 program, that is a bad thing...

De La Cruz, in a neighborhood with a high number of Spanish-speaking families, in a neighborhood periodically plagued with gang problems, is an award-winning school. It won the Spotlight Award from the state Board of Education. Not a decade ago. Not five years ago. In 2009.

So here was a public school where the kids were learning. The school was making progress. The school was small and the class sizes manageable. And it had to be closed.

Why? Why close a successful, small school in a working class neighborhood? The residents, teachers, and students surely didn't understand...The neighborhood, the Board argues, simply doesn't need a school.

Well, except when they do. Because the Board of Education announced, suddenly and with questionable reasoning, that much-maligned charter school Octavio Paz would move into the building that De La Cruz once occupied, under the private management of the United Neighborhoods Organization, or UNO...

UNO may be familiar to you as the Alinskyite community group that empowered working-class Latinos through collective action. That's not what it is any longer. Since the early 1990s, UNO has become a proto-corporate enterprise that attacks public institutions and hardly represents working class families in Latino communities. For current UNO CEO (yes, CEO) Juan Rangel, "networking", not collective action, is the name of the game. While UNO "builds power" as an institution, it also takes takes away. It takes schools away...So the people came out and demanded answers. None were forthcoming. And by the looks of it, Rangel's appetite shows no signs of abating...Why did this group of appointed investment bankers, real estate speculators, and corporate executives close the well-performing De La Cruz and replace it with a corporate, privately-run school that uses taxpayers' money?

http://gapersblock.com/mechanics/2009/08/27/juan-rangel-sells-pilsen-famil/

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Response to HiPointDem (Reply #10)

Thu Jan 24, 2013, 05:55 AM

22. Wow. knr

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Response to RedCappedBandit (Reply #22)

Thu Jan 24, 2013, 06:09 AM

23. wow indeed. and it puts the lie to all the hype about 'hispanic community organizing'. rangel

 

wanted the building, and that's why the school was closed.

first they said it was too old, costly to maintain, etc.

then they went in and did upgrades.

then uno moved in.

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Response to HiPointDem (Reply #23)

Thu Jan 24, 2013, 09:53 AM

28. La Raza has a CEO, too. I find it quite interesting that you have a problem with how these

Hispanic grassroots organizations are composed.

You've nothing but extremely biased blog posts to cite from. UNO got money to build schools for the Hispanic community---which is what they've done. And you are attacking a Hispanic grassroots movement using highly charged language.

Same shit different day.











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Response to HiPointDem (Reply #23)

Thu Jan 24, 2013, 03:37 PM

33. Classic, blatant, neoliberal tactics

Funneling tax dollars into the pockets of the wealthy.

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 05:43 PM

14. You keep attacking a Hispanic, community-based organization with biased blogposts.

Why is that?

It certainly rings a Bell.

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 05:46 PM

16. K&r public education should never be for profit

And the low per student amount for Chicago public schools is an outrage.

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 05:53 PM

18. Privatizing public schools and replacing them with charter schools

Is an objective of the Koch brothers Americans for Prosperity. Art Pope , the new Budget Director for the state of NC (he's also a founder of Americans for Prosperity) is trying to do the same thing here.

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Response to HiPointDem (Original post)

Wed Jan 23, 2013, 09:11 PM

20. K&R.

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Response to HiPointDem (Original post)

Thu Jan 24, 2013, 05:28 AM

21. For those who seem to hold the belief that Hispanic "community organizers" must not be criticised...

 

1. Because they're Hispanic? or because they're "community organizers"? Are you saying that hispanics can't be corrupt? Or that community organizers can't be?

2. You may not have seen the article about how this "Hispanic community organizer" helped shut down an award-winning school serving mostly Hispanic students in the face of protests by the Hispanic parents of those students. What kind of "community organizing" is this? also, the replacement school isn't making 'adequate yearly progress' so how is it an improvement on the public school it replaced?

3. What kind of "community organizer" pays himself more to run 13 schools than the person who runs the entire district gets? What kind of "community organizer" attacks unions & teachers, sucks up to the super-rich & accumulates big real estate holdings on the public dime?

4. It doesn't look to me like he's a "community organizer" anymore anyway. He's a charter school CEO.

5. And as for breaking some tie between 'democrats' & 'hispanic community organizers" -- rahm isn't a democrat, he's a neoliberal & juan rangel is a neoliberal too.

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Response to HiPointDem (Reply #21)

Thu Jan 24, 2013, 11:24 AM

30. But they are hispanic. Next I suppose you'll be criticizing Marco Rubio.

I'm waiting for the response to this, especially points 2 and 3. I'm thinking discussion of actual issues may be avoided in favor of more broad brush smears.

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Response to hay rick (Reply #30)

Thu Jan 24, 2013, 01:02 PM

31. there was a response to a post on 3 -- it ignored it in favor of repeating how i was smearing

 

hispanic community organizers.

i guess being a hispanic community organizer is a license to steal in these days of spin.

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Response to HiPointDem (Original post)

Thu Jan 24, 2013, 06:27 AM

24. CPS Parents File Formal State Complaint Against UNO Charter Schools Updated

 

CHICAGO — Education-reform groups, including the president of a Pilsen Local School Council, have filed a formal complaint with the state against the UNO Charter Schools Network...

The complaint charges that the United Neighborhood Organization, a Hispanic community group since the 1980s, has overleveraged its charter schools and is using more than $70 million in state-approved tax-exempt bonds in part to pay off private loans rather than fund education...

According to official nonprofit filings by UNO Charter Schools in 2011, it posted $69.6 million in overall assets and $71.2 million in liabilities for a net debt of $1.7 million. It claimed $61.9 million in mortgages and notes owed to third parties, with $2.9 million in interest paid for the year.

UNO has 13 charters in the Chicago Public Schools, and 12 received funding increases in the 2013 budget for a total outlay of $55.6 million. That’s tied directly to school attendance, but Woestehoff suggested that’s part of the problem, that UNO uses students as “collateral” in its loans. A Standard & Poor’s report in September 2011 gave the school bonds a BBB- rating, warning of “considerable growth risk with two schools opening.” It made clear that UNO’s ability to repay was based on school population.

“That money they’re getting that’s supposed to be for children is being used to pay their debt,” Woestehoff charged. “That doesn’t seem like a healthy situation.”

According to 2011 non-profit filings, Rangel has a salary of $207,000, and UNO’s chief operating officer, senior vice president, vice president and director of operations all make more than $100,000 each. They’re cited as officers with the UNO Charter Schools as well, which also pays two school directors over $100,000. The filing for UNO that year also posted $125,000 paid to the Edelman public relations firm for consulting.

UNO received $98 million from the state in 2009, the largest taxpayer subsidy to a single charter network. “There are no other charter networks getting anywhere near that money,” Woestehoff said.

http://dianeravitch.net/2013/01/23/chicago-parents-sue-charter-network/

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Response to HiPointDem (Original post)

Thu Jan 24, 2013, 01:28 PM

32. K&R I'm shocked!

 

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