WASHINGTON - President Barack Obama took aim Monday at the nation’s school dropout epidemic, proposing $900 million to states and education districts that agree to drastically change or even shutter their worst performing schools.

Obama’s move comes as many schools continue to struggle to get children to graduation, a profound problem in a rich, powerful nation. Only about 70 percent of entering high school freshmen go on to graduate. The problem affects blacks and Latinos at particularly high rates.

Obama described the crisis as one that hurts individual kids and the nation as a whole, shattering dreams and undermining an already hurting economy.

“There’s got to be a sense of accountability,” Obama said in announcing his latest get-tough school proposal at the U.S Chamber of Commerce.

The president’s plan would seek to help 5,000 of the nation’s lowest-performing schools over the next five years.

“In this kind of knowledge economy, giving up on your education and dropping out of school means not only giving up on your future, but it’s also giving up on your family’s future,” Obama said. “It’s giving up on your country.”

Obama has been pushing schools — using federal money as his leverage — to raise their standards and prod them to get more children ready for college or work. It is a task that former President George W. Bush and Congress, along with many leaders before them, have long taken on, but the challenge is steep.

Obama’s 2011 budget proposal includes $900 million for School Turnaround Grants. That money is in addition to $3.5 billion to help low-performing schools that was in last year’s economic stimulus bill.

To get a share of the new money, states and school districts must adopt one of four approaches to fix their struggling schools:

• Turnaround Model: The school district must replace the principal and at least half of the school staff, adopt a new governance structure for the school, and implement a new or revised instructional program.
• Restart Model: The school district must close and reopen the school under the management of a charter school operator, a charter management organization or an educational management organization. A restarted school would be required to enroll, within the grades it serves, former students who wish to attend.
• School Closure: The school district must close the failing school and enroll the students in other, higher-achieving schools in the district.
• Transformational Model: The school must address four areas, including teacher effectiveness, instruction, learning and teacher planning time, and operational flexibility.

The administration also is putting $50 million into dropout prevention strategies, including personalized and individual instruction and support to keep students engaged in learning, and better use of data to identify students at risk of failure and to help them with the transition to high school and college.

Obama announced his plan Monday at an education event sponsored by the America’s Promise Alliance, the youth-oriented organization founded by former Secretary of State Colin Powell and his wife, Alma. Obama also planned to discuss ways to better prepare students for college and careers.

Source (article): MSNBC

Source (picture): GOERIEBLOGS

BailOut Plan

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY

TO PURCHASE MORTGAGE-RELATED ASSETS

Section 1. Short Title.

This Act may be cited as ____________________.

Sec. 2. Purchases of Mortgage-Related Assets.

(a) Authority to Purchase.–The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.

(b) Necessary Actions.–The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:

(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;

(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;

(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;

(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and

(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.

Sec. 3. Considerations.

In exercising the authorities granted in this Act, the Secretary shall take into consideration means for–

(1) providing stability or preventing disruption to the financial markets or banking system; and

(2) protecting the taxpayer.

Sec. 4. Reports to Congress.

Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.

Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.

(a) Exercise of Rights.–The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.

(b) Management of Mortgage-Related Assets.–The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.

(c) Sale of Mortgage-Related Assets.–The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.

(d) Application of Sunset to Mortgage-Related Assets.–The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.

Sec. 6. Maximum Amount of Authorized Purchases.

The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time

Sec. 7. Funding.

For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Sec. 9. Termination of Authority.

The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.

Sec. 10. Increase in Statutory Limit on the Public Debt.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.

Sec. 11. Credit Reform.

The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.

Sec. 12. Definitions.

For purposes of this section, the following definitions shall apply:

(1) Mortgage-Related Assets.–The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.

(2) Secretary.–The term “Secretary” means the Secretary of the Treasury.

(3) United States.–The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.

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