Private Money for the Public Good
A sobering article in Saturday's Wall Street Journal details the Harlem Children's Zone's financial worries as foundations and and private investors cut back or bail out altogether. The deepening recession and Madoff mess have apparently taken a toll on Geoffrey Canada's groundbreaking effort to break the cycle of poverty in Harlem.
The WSJ article offers a bracing reminder of what can happen when efforts to serve the public good must rely overwhelmingly on private grants and donations. Too often, we place high-stakes education reform plans, such as DC's pay-for-performance proposal, in a perilous state when we pin their success wholly on private money.
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It will be very interesting
It will be very interesting to see whether the City Council of the District of Columbia is willing to risk the city's financial future on the promise of foundations paying part of the salary of DC government employees (teachers). How much will the Council be willing to trust that foundations and other donors will not back out of their promises to fund salaries? What will the cost be to the city if the private funding doesn't pan out? The funding may not be available, not because the foundations and private donors don't desire to fulfill their promises, but because they simply don't have as much revenue when their own investments decline. What city services will have to be cut if there isn't sufficient private funding to cover promised pay for government workers? I think District residents should be cautious and encourage caution on the part of their elected representatives if the green-tier pay program moves forward. Is there precedent in other communities of making long-term commitments to pay government workers with promised private funds?
M. Berkey
DC public school parent
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