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America gets a D+ for school infrastructure – but federal COVID relief could pay for many repairs

The unprecedented wave of federal funding could be used to modernize public schools – the second-largest public infrastructure in our nation, behind only highways.

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Money from the $1.9 trillion American Rescue Plan could go toward much-needed improvements to crumbling public school buildings. Erin Clark for The Boston Globe via Getty Images

Many kids are attending public schools this spring with the use of COVID-19 safety protocols, including more desk spacing, more frequent cleaning and mandates to wear masks.

But far too many of the school buildings themselves remain dilapidated, toxic and in desperate need of structural improvements.

On average, U.S. public schools are more than 50 years old – and by and large they are not being properly maintained, updated or replaced. The American Society of Civil Engineers graded America’s public K-12 infrastructure a D+ in their 2021 Infrastructure Report Card, the same abysmal grade as in their prior 2017 report.

But help may finally be on the way.

The US$1.9 trillion American Rescue Plan signed into law by President Joe Biden on March 11 provides nearly $130 billion for K-12 education and could trigger much-needed investment in the U.S.‘s crumbling public school buildings. The package provides an additional $350 billion for state, local and territorial governments – some of which could also be invested in schools.

This new money comes on the heels of $13.5 billion in K-12 relief from last spring’s CARES Act and $54 billion from December’s Coronavirus Response and Relief Supplemental Appropriations Act.

Such unprecedented federal investment could fuel a long-term national effort to repair and modernize our public schools – the second-largest public infrastructure in our nation, behind roads and highways.

Why schools are crumbling

For decades now, the funding of our public school infrastructure has remained the most inequitable aspect of our school finance system.

School districts rely primarily on local property taxes to build and renovate their schools. On average, states pay for 45% of local school operations, but cover only 18% of school capital costs. Twelve states provide no capital aid. The federal government contributes an average of 8% for local school operations, but less than 1% of capital spending.

The 2016 “State of Our Schools” report by the Center for Green Schools concluded that the U.S. underfunds school facilities by about $46 billion each year – a 32% annual shortfall that compounds over time and has worsened in recent years.

As a former assistant state superintendent for research and policy and now a professor of educational leadership and policy, I’ve seen firsthand the problems that arise from this inadequate and inequitable funding. In my home state of Michigan, wealthy districts can build and upgrade fine schools, often with low property tax rates. Meanwhile, poor districts endure aging, dilapidated and sometimes unsafe schools – despite paying high property tax rates.

In prosperous Ann Arbor, for example, children will enjoy the benefits of a $1 billion capital bond approved in late 2019 by local voters, including me. The bond program, fully funded by local property taxes, will upgrade the district’s 35 buildings, including new and enhanced technology, building entrance renovations, outdoor classrooms, kitchens, teaching gardens and the construction of two new schools.

In nearby Hamtramck Public School District, however, where property values are lower, and some school buildings are so old they’ve been designated historical landmarks, school leaders need their new federal relief to fix windows that won’t open.

The educational toll of inequity

Recent news reports like the one about kids sitting on a curb outside Taco Bell with their Chromebooks, trying to connect to the internet to do their schoolwork, have thrown a spotlight on inequities.

In Chicago, where the average school building is 80 years old, the public schools have spent $100 million upgrading HVAC systems since last spring. Still, the district has a $3.5 billion backlog of building repairs.

Man in suit opens window of school classroom
A school district executive administrator in Louisville, Ky., demonstrates how classroom windows will be left open as a COVID-19 safety precaution. on Cherry/Getty Images

In Baltimore, nearly two-thirds of the public school buildings are over 50 years old. They are poorly maintained. According to six years of inspections records, only 17% of Baltimore’s schools were in “good” or “superior” shape – the lowest percentage in the state.

In old school buildings, it’s more likely that pipes will burst, heat and air conditioning will fail, and plumbing and electrical problems will arise. And these problems take an educational toll on kids and teachers.

Research confirms that a dry building with good indoor air quality and thermal comfort reduces student illness and absences and elevates student achievement. Facility quality can also significantly impact teacher retention.

The American Rescue Plan can help immensely. The biggest pot of the $128 billion earmarked for K-12 schools is $122.8 billion allocated to school districts and states. Fully 90% goes to local districts through the Title I formula, which favors districts with low-income families.

Districts will get to determine how they use these funds. The sole restriction requires they use at least 20% of the money to address “learning loss.” Examples mentioned in the law include “summer learning or summer enrichment, extended day, comprehensive after-school programs or extended school-year programs.”

Most importantly, the amount of K-12 aid can’t be used to pay for state and local cuts to school funding. Combined with the two previous federal COVID-19 relief packages, this K-12 emergency funding totals about $195 billion, nearly twice the amount schools received in the 2009 American Recovery and Reinvestment Act.

And finally, the American Rescue Plan money is a one-time injection. It can be used until 2024, but should not be baked into school operating budgets without solid plans for state or local replacement funding. So hiring more teachers and support staff, though attractive as an educational investment, would probably lead to massive and disruptive layoffs in a few years. Infrastructure upgrades, however, sidestep this problem.

Two years ago, I wrote an article about fixing America’s crumbling public schools and argued that passage of the Rebuild America’s Schools Act of 2019, a bill that would invest $100 billion over 10 years in our school buildings, was a no-brainer. That bill never passed, but was reintroduced this session and has been largely folded into President Biden’s infrastructure bill called the American Jobs Plan, which was announced on March 31.

The plan calls for $100 billion to upgrade and build new public schools. The bill’s proposed tax hikes, however, prompted immediate criticism from Republicans and prominent business groups, including the U.S. Chamber of Commerce. Much negotiation and change to the $2 trillion package can be expected.

But in the meantime, there’s the American Rescue Plan. The K-12 money in this sprawling relief package is not dedicated to school infrastructure and is not a final fix to an enormous problem that has been decades in the making. But using a good share of this massive, one-time federal investment to address this chronic need in our poorest schools makes total sense to me.

Michael Addonizio does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Illegal Immigrants Leave US Hospitals With Billions In Unpaid Bills

Illegal Immigrants Leave US Hospitals With Billions In Unpaid Bills

By Autumn Spredemann of The Epoch Times

Tens of thousands of illegal…

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Illegal Immigrants Leave US Hospitals With Billions In Unpaid Bills

By Autumn Spredemann of The Epoch Times

Tens of thousands of illegal immigrants are flooding into U.S. hospitals for treatment and leaving billions in uncompensated health care costs in their wake.

The House Committee on Homeland Security recently released a report illustrating that from the estimated $451 billion in annual costs stemming from the U.S. border crisis, a significant portion is going to health care for illegal immigrants.

With the majority of the illegal immigrant population lacking any kind of medical insurance, hospitals and government welfare programs such as Medicaid are feeling the weight of these unanticipated costs.

Apprehensions of illegal immigrants at the U.S. border have jumped 48 percent since the record in fiscal year 2021 and nearly tripled since fiscal year 2019, according to Customs and Border Protection data.

Last year broke a new record high for illegal border crossings, surpassing more than 3.2 million apprehensions.

And with that sea of humanity comes the need for health care and, in most cases, the inability to pay for it.

In January, CEO of Denver Health Donna Lynne told reporters that 8,000 illegal immigrants made roughly 20,000 visits to the city’s health system in 2023.

The total bill for uncompensated care costs last year to the system totaled $140 million, said Dane Roper, public information officer for Denver Health. More than $10 million of it was attributed to “care for new immigrants,” he told The Epoch Times.

Though the amount of debt assigned to illegal immigrants is a fraction of the total, uncompensated care costs in the Denver Health system have risen dramatically over the past few years.

The total uncompensated costs in 2020 came to $60 million, Mr. Roper said. In 2022, the number doubled, hitting $120 million.

He also said their city hospitals are treating issues such as “respiratory illnesses, GI [gastro-intenstinal] illnesses, dental disease, and some common chronic illnesses such as asthma and diabetes.”

“The perspective we’ve been trying to emphasize all along is that providing healthcare services for an influx of new immigrants who are unable to pay for their care is adding additional strain to an already significant uncompensated care burden,” Mr. Roper said.

He added this is why a local, state, and federal response to the needs of the new illegal immigrant population is “so important.”

Colorado is far from the only state struggling with a trail of unpaid hospital bills.

EMS medics with the Houston Fire Department transport a Mexican woman the hospital in Houston on Aug. 12, 2020. (John Moore/Getty Images)

Dr. Robert Trenschel, CEO of the Yuma Regional Medical Center situated on the Arizona–Mexico border, said on average, illegal immigrants cost up to three times more in human resources to resolve their cases and provide a safe discharge.

“Some [illegal] migrants come with minor ailments, but many of them come in with significant disease,” Dr. Trenschel said during a congressional hearing last year.

“We’ve had migrant patients on dialysis, cardiac catheterization, and in need of heart surgery. Many are very sick.”

He said many illegal immigrants who enter the country and need medical assistance end up staying in the ICU ward for 60 days or more.

A large portion of the patients are pregnant women who’ve had little to no prenatal treatment. This has resulted in an increase in babies being born that require neonatal care for 30 days or longer.

Dr. Trenschel told The Epoch Times last year that illegal immigrants were overrunning healthcare services in his town, leaving the hospital with $26 million in unpaid medical bills in just 12 months.

ER Duty to Care

The Emergency Medical Treatment and Labor Act of 1986 requires that public hospitals participating in Medicare “must medically screen all persons seeking emergency care … regardless of payment method or insurance status.”

The numbers are difficult to gauge as the policy position of the Centers for Medicare & Medicaid Services (CMS) is that it “will not require hospital staff to ask patients directly about their citizenship or immigration status.”

In southern California, again close to the border with Mexico, some hospitals are struggling with an influx of illegal immigrants.

American patients are enduring longer wait times for doctor appointments due to a nursing shortage in the state, two health care professionals told The Epoch Times in January.

A health care worker at a hospital in Southern California, who asked not to be named for fear of losing her job, told The Epoch Times that “the entire health care system is just being bombarded” by a steady stream of illegal immigrants.

“Our healthcare system is so overwhelmed, and then add on top of that tuberculosis, COVID-19, and other diseases from all over the world,” she said.

A Salvadorian man is aided by medical workers after cutting his leg while trying to jump on a truck in Matias Romero, Mexico, on Nov. 2, 2018. (Spencer Platt/Getty Images)

A newly-enacted law in California provides free healthcare for all illegal immigrants residing in the state. The law could cost taxpayers between $3 billion and $6 billion per year, according to recent estimates by state and federal lawmakers.

In New York, where the illegal immigration crisis has manifested most notably beyond the southern border, city and state officials have long been accommodating of illegal immigrants’ healthcare costs.

Since June 2014, when then-mayor Bill de Blasio set up The Task Force on Immigrant Health Care Access, New York City has worked to expand avenues for illegal immigrants to get free health care.

“New York City has a moral duty to ensure that all its residents have meaningful access to needed health care, regardless of their immigration status or ability to pay,” Mr. de Blasio stated in a 2015 report.

The report notes that in 2013, nearly 64 percent of illegal immigrants were uninsured. Since then, tens of thousands of illegal immigrants have settled in the city.

“The uninsured rate for undocumented immigrants is more than three times that of other noncitizens in New York City (20 percent) and more than six times greater than the uninsured rate for the rest of the city (10 percent),” the report states.

The report states that because healthcare providers don’t ask patients about documentation status, the task force lacks “data specific to undocumented patients.”

Some health care providers say a big part of the issue is that without a clear path to insurance or payment for non-emergency services, illegal immigrants are going to the hospital due to a lack of options.

“It’s insane, and it has been for years at this point,” Dana, a Texas emergency room nurse who asked to have her full name omitted, told The Epoch Times.

Working for a major hospital system in the greater Houston area, Dana has seen “a zillion” migrants pass through under her watch with “no end in sight.” She said many who are illegal immigrants arrive with treatable illnesses that require simple antibiotics. “Not a lot of GPs [general practitioners] will see you if you can’t pay and don’t have insurance.”

She said the “undocumented crowd” tends to arrive with a lot of the same conditions. Many find their way to Houston not long after crossing the southern border. Some of the common health issues Dana encounters include dehydration, unhealed fractures, respiratory illnesses, stomach ailments, and pregnancy-related concerns.

“This isn’t a new problem, it’s just worse now,” Dana said.

Emergency room nurses and EMTs tend to patients in hallways at the Houston Methodist The Woodlands Hospital in Houston on Aug. 18, 2021. (Brandon Bell/Getty Images)

Medicaid Factor

One of the main government healthcare resources illegal immigrants use is Medicaid.

All those who don’t qualify for regular Medicaid are eligible for Emergency Medicaid, regardless of immigration status. By doing this, the program helps pay for the cost of uncompensated care bills at qualifying hospitals.

However, some loopholes allow access to the regular Medicaid benefits. “Qualified noncitizens” who haven’t been granted legal status within five years still qualify if they’re listed as a refugee, an asylum seeker, or a Cuban or Haitian national.

Yet the lion’s share of Medicaid usage by illegal immigrants still comes through state-level benefits and emergency medical treatment.

A Congressional report highlighted data from the CMS, which showed total Medicaid costs for “emergency services for undocumented aliens” in fiscal year 2021 surpassed $7 billion, and totaled more than $5 billion in fiscal 2022.

Both years represent a significant spike from the $3 billion in fiscal 2020.

An employee working with Medicaid who asked to be referred to only as Jennifer out of concern for her job, told The Epoch Times that at a state level, it’s easy for an illegal immigrant to access the program benefits.

Jennifer said that when exceptions are sent from states to CMS for approval, “denial is actually super rare. It’s usually always approved.”

She also said it comes as no surprise that many of the states with the highest amount of Medicaid spending are sanctuary states, which tend to have policies and laws that shield illegal immigrants from federal immigration authorities.

Moreover, Jennifer said there are ways for states to get around CMS guidelines. “It’s not easy, but it can and has been done.”

The first generation of illegal immigrants who arrive to the United States tend to be healthy enough to pass any pre-screenings, but Jennifer has observed that the subsequent generations tend to be sicker and require more access to care. If a family is illegally present, they tend to use Emergency Medicaid or nothing at all.

The Epoch Times asked Medicaid Services to provide the most recent data for the total uncompensated care that hospitals have reported. The agency didn’t respond.

Continue reading over at The Epoch Times

Tyler Durden Fri, 03/15/2024 - 09:45

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Fast-food chain closes restaurants after Chapter 11 bankruptcy

Several major fast-food chains recently have struggled to keep restaurants open.

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Competition in the fast-food space has been brutal as operators deal with inflation, consumers who are worried about the economy and their jobs and, in recent months, the falling cost of eating at home. 

Add in that many fast-food chains took on more debt during the covid pandemic and that labor costs are rising, and you have a perfect storm of problems. 

It's a situation where Restaurant Brands International (QSR) has suffered as much as any company.  

Related: Wendy's menu drops a fan favorite item, adds something new

Three major Burger King franchise operators filed for bankruptcy in 2023, and the chain saw hundreds of stores close. It also saw multiple Popeyes franchisees move into bankruptcy, with dozens of locations closing.

RBI also stepped in and purchased one of its key franchisees.

"Carrols is the largest Burger King franchisee in the United States today, operating 1,022 Burger King restaurants in 23 states that generated approximately $1.8 billion of system sales during the 12 months ended Sept. 30, 2023," RBI said in a news release. Carrols also owns and operates 60 Popeyes restaurants in six states." 

The multichain company made the move after two of its large franchisees, Premier Kings and Meridian, saw multiple locations not purchased when they reached auction after Chapter 11 bankruptcy filings. In that case, RBI bought select locations but allowed others to close.

Burger King lost hundreds of restaurants in 2023.

Image source: Chen Jianli/Xinhua via Getty

Another fast-food chain faces bankruptcy problems

Bojangles may not be as big a name as Burger King or Popeye's, but it's a popular chain with more than 800 restaurants in eight states.

"Bojangles is a Carolina-born restaurant chain specializing in craveable Southern chicken, biscuits and tea made fresh daily from real recipes, and with a friendly smile," the chain says on its website. "Founded in 1977 as a single location in Charlotte, our beloved brand continues to grow nationwide."

Like RBI, Bojangles uses a franchise model, which makes it dependent on the financial health of its operators. The company ultimately saw all its Maryland locations close due to the financial situation of one of its franchisees.

Unlike. RBI, Bojangles is not public — it was taken private by Durational Capital Management LP and Jordan Co. in 2018 — which means the company does not disclose its financial information to the public. 

That makes it hard to know whether overall softness for the brand contributed to the chain seeing its five Maryland locations after a Chapter 11 bankruptcy filing.

Bojangles has a messy bankruptcy situation

Even though the locations still appear on the Bojangles website, they have been shuttered since late 2023. The locations were operated by Salim Kakakhail and Yavir Akbar Durranni. The partners operated under a variety of LLCs, including ABS Network, according to local news channel WUSA9

The station reported that the owners face a state investigation over complaints of wage theft and fraudulent W2s. In November Durranni and ABS Network filed for bankruptcy in New Jersey, WUSA9 reported.

"Not only do former employees say these men owe them money, WUSA9 learned the former owners owe the state, too, and have over $69,000 in back property taxes."

Former employees also say that the restaurant would regularly purchase fried chicken from Popeyes and Safeway when it ran out in their stores, the station reported. 

Bojangles sent the station a comment on the situation.

"The franchisee is no longer in the Bojangles system," the company said. "However, it is important to note in your coverage that franchisees are independent business owners who are licensed to operate a brand but have autonomy over many aspects of their business, including hiring employees and payroll responsibilities."

Kakakhail and Durranni did not respond to multiple requests for comment from WUSA9.

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Industrial Production Increased 0.1% in February

From the Fed: Industrial Production and Capacity Utilization
Industrial production edged up 0.1 percent in February after declining 0.5 percent in January. In February, the output of manufacturing rose 0.8 percent and the index for mining climbed 2.2 p…

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From the Fed: Industrial Production and Capacity Utilization
Industrial production edged up 0.1 percent in February after declining 0.5 percent in January. In February, the output of manufacturing rose 0.8 percent and the index for mining climbed 2.2 percent. Both gains partly reflected recoveries from weather-related declines in January. The index for utilities fell 7.5 percent in February because of warmer-than-typical temperatures. At 102.3 percent of its 2017 average, total industrial production in February was 0.2 percent below its year-earlier level. Capacity utilization for the industrial sector remained at 78.3 percent in February, a rate that is 1.3 percentage points below its long-run (1972–2023) average.
emphasis added
Click on graph for larger image.

This graph shows Capacity Utilization. This series is up from the record low set in April 2020, and above the level in February 2020 (pre-pandemic).

Capacity utilization at 78.3% is 1.3% below the average from 1972 to 2022.  This was below consensus expectations.

Note: y-axis doesn't start at zero to better show the change.


Industrial Production The second graph shows industrial production since 1967.

Industrial production increased to 102.3. This is above the pre-pandemic level.

Industrial production was above consensus expectations.

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