Adam in Albany: On Regulating Student Loans

WPCNR’S ADAM IN ALBANY. By State Assemblyman Adam T. Bradley, 89th District. May 16, 2007: The student loan industry scandal – in which certain colleges and universities were found to have had inappropriate financial relationships with lenders – has put New York’s college students in jeopardy.  New York Attorney General Andrew Cuomo’s ongoing investigation brought the scandal to light, revealing the increasing use of questionable practices to market private loans to students and their families.

 


In order to remedy the problem as quickly as possible, the Assembly and Senate recently passed legislation I sponsored to stop the student loan industry’s conflicts of interest used to steer borrowers at colleges and universities to certain lenders (A.7950).  The legislation is to be known as SLATE, the Student Lending Accountability, Transparency and Enforcement Act.  Some provisions of the bill include:


 


·                    prohibiting lenders from giving gifts to colleges and universities and ban colleges and universities from accepting them in exchange for any advantage in loan activities;


·                    barring college and university employees from receiving any compensation for serving on a lender’s advisory board;


·                    prohibiting lender employees and agents from posing as college or university employees;


·                    requiring colleges to tell inquiring students about public loans – which may be a better option – before talking to them about private loans.


 


Over 20 colleges and universities nationwide have signed the Attorney General’s Code of Conduct, which ensures that the relationships between schools and student loan lenders put the needs of students ahead of the needs of shareholders.  A handful of schools in New York have signed onto the Code, including:  New York University; Fordham University; Syracuse University; Pace University; and 29 State University of New York Campuses.


 


It is disappointing that colleges and universities favored certain student loan lenders for particular advantages, putting themselves first, instead of the students they purport to care about. Significant numbers of students and their parents turn to loans to help pay for college. Loans are supposed to help a student complete his or her degree to get ahead, not purposely drag them into so much debt that they can barely make a living. I am confident that the governor will sign SLATE so we can end these dubious loan practices. In this way, we can help restore trust in an education system that is supposed to support our youth, not prey on them.


 



 

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Photograph of the Day

WPCNR ROVING PHOTOGRAPHER. May 16, 2007: Chairman of the Board of Legislators William Ryan delivered a splendid and moving apology to the Ministers Fellowship Council of White Plains & Vicinity in the shadow of the new statue of Dr. Martin Luther King, Jr. Tuesday, for the county’s “oversight” in not officially inviting the ministers to the  Westchester County original unveiling of the statue which featured many celebrities and politicians. The Ministers gracefully accepted Mr. Ryan’s remarks on behalf of the county and announced a Celebration of the Life and Legend of Dr. Martin Luther King to take place June 16, Saturday at 12 noon, details forthcoming. Ryan said it was a time to heal, that he regretted the oversight, that no hurt was intended, that it was just a mistake. He did not say what County Department made the blunder, though the county has an extremely professional and prolific and well-paid Department of Communications, (where’s Thompson & Bender when you need them?)  and he personally took the blame for the “oversight.”



Time for Healing: White Plains Bill Ryan, apologizing to the Ministers Fellowship of White Plains Tuesday.

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Superintendent Thanks Citizens for the Budget. Strategic Plan Details Coming.

WPCNR SCHOOL DAYS. By John F. Bailey. May 16, 2007: Pending official final figures, the 2007-2008 School Budget of $174.1 Million has passed by 933 votes to 648. This gennerates a 6.95% tax rate increase for the citizens in the next school year beginning July 1. Sheryl Brady and Charles Norris were elected unopposed to three year terms on the Board of Education, joining Donna McLaughlin, Terrance McGuire, Peter Bassano and Rosemarie Eller and Bill Pollak, bringing the Board of Education up to full strength for the first time in a year. Newly elected Board Member Charles Norris said that more details on the district strategic plan should be emerging at the end of May.  The vote passed the budget by slightly less a margin than last year, 59% voting to approve last night, while 64% voted approval last year. 



Sheryl Brady,  and Charles Norris were Elected to three year terms to the Board of Education.


Superintendent of Schools Timothy Connors said, “We’re appreciative of the folks coming out to vote. We certainly appreciate the vote for the school budget and the two candidates and we’ll look to move forward in getting ready for the next school year.”


Asked if in view of the closer vote, if the district would start looking at budget management earlier this year, the superintendent said, “I think, as we know, the trends in budgets are closer, that’s what people were predicting, and it reminds us we need to encourage people to come out to vote, because when you look at the total number of votes it’s a good turnout. In terms of next year’s budget, let us get through this year and as we go through the year we’ll begin plan for next year as well.”


The  Superintendent said, “We actually start the budget process too early in my mind. You have to have facts you can deal with and not speculation. Until we get into 2008, we won’t begin to plan the budget. We’re certainly mindful and we’ll see what the trends are. This budget’s done, we’ll get ready for the next school year, and in November we’ll start on the next budget.”


Electees Speak


Sheryl Brady, elected to a four year term on the School Board, said  “I’m very honored to be working for the Board. I think they’re a wonderful group of people, and I’m looking forward to being a part of it.”


Asked if there was a particular matter she looked forward to addressing in her new term, Brady said, “A lot of things interest me. I’m working on the Strategic Planning Core Team and the Communications Action Team. Those are things I’m particularly interested in. I’m also interested in curriculum.”


Asked if there was any outcomes she especially wanted to see happen, Ms. Brady said, “Not right now.”


Charles Norris, the other newly elected Board Member told WPCNR, “I’m very excited. I feel I can bring a lot of energy to the Board. I would like to be a voice for the Strategic Plan. I think that if the Plan is  implemented as it is designed and is being flushed out in other committees, I think it can bring about some needed changes.”


On academics, Norris said “I think all students need to be challenged. All members of our diverse community,  white, black, latino need to feel comfortable in the schools, and that their children are being appropriately challenged.


On school management, Norris said, “I would also as part of the Strategic Plan, work for evaluation of programs, and make sure we’re doing things in as cost-efficient manner as possible. That’s what I’m going to try and be a voice for.”


Strategic Plan to Emerge in More Detail End of May


Asked what direction the mysterious Strategic Plan was taking (the district has not released any new information on their Strategic Plan since the initial goals which were nebulous and nonspecific as to how they were to be accomplished—see previous WPCNR stories on the Strategic Plan), Norris brought WPCNR up-to-date:


“I will know after May 23. At this point in time, I know the subcommittees (creating the Strategic Plan) are meeting to flush out assessments and new programs. I was on the Core Planning Committee that met for three days back in February, and have not had any more information since that time. On May 23, we’ll have another meeting of the Strategic Planning Core Committee where we’ll be reviewing the work done by the subcommittees.”


 



Turnout Approximates 2006


Opposition Increases.


According to information in the WPCNR files, the vote against this year’s school budget vote is slightly less than 5% higher than was the “No” vote last year. This means that the increase in the “no” votes fell short of keeping up with the increase in the size of the budget. Turnout was very close to last year’s, 1,581 this time, 1,514 last year.


It’s interesting to compare yesterday’s vote with the vote in May, 2004. In 2004 only 22.9% voted “no,” on a much larger increase in the budget (6.8%) and tax increase of  7-1/2%.  When compared with 2004, yesterday’s “No” vote of about 41% is close to twice as big – even when voting down the budget would decrease spending by a mere $400,000. The vote of approval on that 04-05 $143.8 Million budget was a 3 to 1 margin of approval, 1024 to 305.


The margin of approvals continue to erode the last two years but support for the district spending continues. This year’s vote with 59% of the voters approving a 4.4% increase in spending  and 7% increase in taxes, is slightly down from last year’s 2006-2007  966 to 548 approval – which okayed a $165.8 Million budget and 7.1%  (8.1% tax increase) increase by 64% of the voters.


This contrasts sharply with 2005-2006, when 1,458 voted and approved a $154.8 Million budget a 7.61% spending  increase by a 4 to 1 margin, and the $143.8 Million 2004-2005 budget, that increased spending by 6.8% and taxes by 7-1/2%, a 3 to 1 margin.


 Voters approved that 04-05 budget in May of 2004 by a vote of 1,024 to 305, a better than 3 to 1 margin – and in the year 2003-2004 when a $134.6 Million was passed with a 6.1% increase in spending and  6.9% increase in taxes by a 4 to 1 margin.


The main opposition to passing this year’s budget was in the southend of the city with 62% of the No votes coming from the Ridgeway School (256) and the Highlands Middle School (147) Polling Places. Conversely 57% of the voters in those two affluent districts, 299 from Ridgeway and 238 voting at Highlands supported the Yes Vote and 43% voted against it.


Church Street School Polling Place reflected this trend with 195 voting Yes and 146 voting no. 


The vote took place on the evening of the high school spring concert – which could have been a factor in limiting the number of working citizens having the time to vote – since the polls do not open until 12 noon and are open until 9 PM.    Though the polling hours 12 to 9 PM have been the same for years.


The $200 Million Budget Will Be Reached in 2010-2011


This year the school district kept their spending increase to 4.4%. If they hold to that increase– at 5% a year,  the district budget will not grow as fast as WPCNR predicted two years ago. WPCNR said if the present rate of  7% increases continued, and the $65 Million school bond issue (for a new Post Road School, Infrastructure Improvements, and a remodeled Mamaroneck Avenue School, and 2 new football stadiums), were financed in its entirety in one year, the budget would hit $200 Million by  2008-2009.


Now that the District has broken up the bond financing into three separate issues and pushing up of certiorari payments, the  $201 Million will be reached in the year 2011-2012 — but this will only happen if the spending level is kept at 5% or less.


The projections:


2008-09: $182.8 Million


2009-2010: $192 Million


2010-2011: $201.5 Million.


This of course, assumes all expenses stay at their current rates of increase.

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City Passes School Budget. Brady, Norris Elected Unopposed.

WPCNR SCHOOL DAYS. By John F. Bailey. May 15, 2007: The City of White Plains voted 933 to 648 to approve the School District $174.1 Million budget for 2007-2008 Tuesday. Unofficial results were completed by 9:30 at Education House. Sheryl Brady and Charles Norris were elected with 1,244 votes and 1,257 votes for the two vacant seats on the Board. The vote percentage was 59% to 41% — a substantial margin but nowhere near the pluralities enjoyed in the past.


 


 

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