Florida Education Association Vice President Joanne McCall has an obvious motive to discredit the nonprofit that administers a scholarship program she is suing, but her recent claims about its spending practices are nonsensical. Since they also track a growing teacher union narrative suggesting misappropriation in the tax credit scholarship programfor low-income students, they’re worth addressing.
First, the new claim. Asked to respond to a full-page advertisement in the Tallahassee Democrat from a diverse coalition of faith, community and education leaders that urged FEA to drop its lawsuit, McCall told SaintPetersblog: “About 3 percent of that scholarship money is being used to do this media campaign, and I’m not sure that taxpayers want their money used for that.”
The money for the scholarship, now in its 13th year and serving nearly 69,000 underprivileged students, is raised and distributed almost entirely by Step Up For Students, the nonprofit that also co-hosts this blog. So the implication is that Step Up is robbing from scholarship students to support a newspaper advertisement or media campaign that, by her math, would cost $10.7 million this year.
Since my own paycheck is from Step Up, I, too, have an obvious motive to try to discredit. But SaintPetersblog editor Peter Schorsch beat me to it. The claim was so preposterous that he apparently gave McCall the opportunity to edit her own quote. She declined, sparking Schorsch to call her “reckless” and “desperate.”
Unfortunately, it’s also becoming par for the course.
To set the record straight, the advertisement was financed by a group called HCREO, or Hispanic Council for Reform and Education Options. The ad was placed by a top-drawer communications consultant, Sachs Media Group, that is being paid by the Alliance for School Choice, a national education advocacy group that is fighting the lawsuit. In other words, neither the ad nor the Sachs contract is being financed by Step Up.
The 3 percent, though, is not a number McCall pulled from thin air. Under Florida law, state-approved scholarship organizations that operate for three full years with clean audits are then allowed to keep up to 3 percent of the tax-credited scholarship contributions in subsequent years to pay for administrative expenses. Given that the scholarship program this year is $357.8 million, that administrative allowance is now $10.7 million.
The FEA has likened that allowance to a management fee or even a profit. At its announcement of the lawsuit in August, FEA attorney Ron Meyer went so far as to call the program “a moneymaker for scholarship funding organizations.”
If Meyer’s assertion were true, Florida would have nonprofits lined up to get a piece of the action. Continue Reading →