what's the catch?

Cuomo’s promise of free college tuition has a major catch, experts say

PHOTO: Governor Andrew Cuomo Flickr

On Friday night, Governor Andrew Cuomo announced that lawmakers had reached a deal on a new scholarship, hailed as a first-in-the-nation plan to provide free college tuition at state colleges and universities.

The plan promises to cover the cost of college tuition at SUNY and CUNY schools for families making less than $125,000 per year. But it has a major snag that has so far gone under-the-radar, experts say.

Students must live and work in New York after they graduate for the same length of time as they received the scholarship. If they do not, their full scholarship will be turned into student loans, according to the law.

“This is a killer,” said Sara Goldrick-Rab, a leading expert on college affordability and a professor at Temple University. “This is something you can’t trust. And you’re bringing back debt, which is the thing that everybody is trying to avoid.”

Officials from the governor’s office said the provision is justified because the scholarship makes a major investment in New York’s youth, so the state should reap the benefits of that investment.

“By ensuring our highly-skilled, highly-qualified students live and work in-state for the number of years they received the Excelsior Scholarship, we are guaranteeing this investment pays dividends right here at home,” said education department spokeswoman Abbey Fashouer.

Experts, however, disagree. The provision, Goldrick-Rab says, which was not in the governor’s original proposal, could force students and families to make tough choices after college — about whether to take the best job they can find, for instance, enter the military or take care of a family member.

She also argues that since it creates an incentive for students to stay in-state while unemployed, it is not good for the state’s economy. More importantly, it could saddle students with debt they didn’t expect, she said.

It is not clear whether this rule will impact the generally warm reception Cuomo’s announcement has received. The governor, who announced the Excelsior Scholarship plan standing beside free-college champion Senator Bernie Sanders, has tried to position New York as a national leader in the free college movement.

But while there are some targeted scholarships that require students to stay in-state after graduation, other states pursuing free college plans have not included such a provision, said Goldrick-Rab.

The Center for an Urban Future released an op-ed soon after the deal was announced, saying the provision may “transform a financial blessing into a burden.” The article points out that the provision calls for students to both live and work in New York, which means that a student living in-state who gets a job just over the border in another state would still be subject to loans.

The SUNY Student Assembly has not taken an official position on the provision, said Arthur Ramsay, director of communications, but he also said that he and other leaders are concerned the provision is “restrictive.”

“We would prefer a program that doesn’t have the strings attached,” Ramsay said.

Some lawmakers who have advocated for free college are now disappointed in the list of requirements that made it into the final law. Assemblyman James Skoufis, who has worked on college affordability for years, sent a release slamming the final product.

“Governor Cuomo’s tuition-free Excelsior Scholarship is more sizzle than substance,” explained Assemblyman Skoufis in the release. Cuomo’s plan “offers a great headline but little else.”

hands on

Apprenticeships are now open for the second round of CareerWise high school students

PHOTO: Denver Public Schools
Denver student Quang Nguyen works at an internship this past summer.

More than half the companies that signed on for the launch of Colorado’s apprenticeship program CareerWise have renewed and plan to take on a second group of apprentices this fall, while a number of new companies have added programs.

That means there are 160 new openings for Colorado high school students in fields ranging from manufacturing to information technology to healthcare, a 33 percent increase from the 120 positions available to the first group of students last year.

CareerWise offers three-year apprenticeships to students starting in their junior year of high school. It’s based on the Swiss apprenticeship model and was conceived by Gov. John Hickenlooper and businessman Noel Ginsburg, who is himself now a candidate for governor, after a trip to Switzerland in 2015. The first apprentices started in 2017.

Brad Revare, CareerWise’s director of business partnerships, said most of the companies that didn’t renew are small firms that don’t feel like they have the capacity to take on a second apprentice right now. Some are still deciding if they’ll renew — this recruitment cycle hasn’t closed — and some companies have said they plan to take a second apprentice when the first apprentice is in his or her third year so that the older student can serve as a mentor.

Revare said the renewal rate has been a pleasant surprise.

“We didn’t anticipate this high of a renewal rate,” he said. “We believe that demonstrates that partnerships aren’t just a good corporate citizen thing, but a good return-on-investment business decision. To sign up for a second cohort when the first cohort is only on the job for six months speaks to the value of this program.”

There’s still a lot of work to be done for the program to achieve its goals, though. The charge from the governor, who has made workforce training and apprenticeships one of his priorities, is to have 20,000 high school students in apprenticeship programs within 10 years. He reiterated that goal in his State of the State address Thursday.

The renewing companies include Arrow Electronics, the city of Grand Junction, University of Colorado Denver, DaVita, DH Wholesale Signs, DT Swiss, EKS&H, Geotech Environmental, Gordon Sign, HomeAdvisor, Intertech Medical, Intertech Plastics, Mesa 51, Mile High United Way, Monument Health, Nordson Medical, Prostar Geocorp, Research Electro-Optics, SAS Manufacturing, Skillful, Stonebridge, Swiftpage, TeleTech, and Western States Fire Protection

New participating businesses for 2018 include Janus Henderson Investors, Otter Products, SAVA Senior Care, the city of Aurora, and the governor’s Office of Information Technology.

CareerWise is still recruiting more businesses for 2018.

To find an apprenticeship, check out CareerWise’s Marketplace.

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.