Study says foreclosures have cost Minneapolis public schools $150 million

Categories: Education

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Minneapolis public schools have been affected by foreclosures.
​A new report concludes that the housing crisis has cost Minneapolis public schools $150 million dollars in lost state funding, thanks to thousands of kids leaving town after their parents' houses went into foreclosure.

The study, conducted by Neighborhoods Organizing for Change, an advocacy group which began with a good number of carryover members from now-defunct ACORN, found that there were over 13,000 foreclosures in Minneapolis since 2006. Those foreclosures cost the city, with an estimated loss of 4,000 students in the Minneapolis public school system. The figure is based on research indicating that fifty-eight percent of foreclosed families left Minneapolis and had to enroll in a different school district.

Not surprisingly,  the study points the finger of blame at banks, specifically Wells Fargo and US Bank.

The report points out that Wells Fargo, the largest bank in the Twin Cities, has appeared on both ends of the foreclosure crisis. First the study documents Wells Fargo's history of issuing subprime loans, the very devices that led to many foreclosures in the first place. Then, on the rebound, Wells Fargo has foreclosed on some 300 homes in Minneapolis.

Neighborhoods Organizing for Change is calling for several reforms, including a new state law to force banks to file an affidavit explaining why it couldn't restructure the loan of a foreclosed home.

A spokeswoman from Minneapolis Public Schools told City Pages they were studying the report and couldn't immediately comment.


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4 comments
Shannon Drury
Shannon Drury

My daughter's sign at OccupyMN read "my school needs a bailout too!" She and brother are both students in the Minneapolis district.  Shouldn't our schools be too big, or really, too IMPORTANT, to fail?

Bob
Bob

Insult to injury...  No, Superintendent Bernadeia Johnson giving raises of $270,000 to 35 central office administrators was the insult.  This is an insult to the insult to the injury...

Michelle Bachmann
Michelle Bachmann

You are a bad person.   You complain about how much people that are educating children make but don't have a bad thing to say about the bankers and how much they make.   The idiot CEOs of Wells Fargo, US Bank, and almost every other bank out there fucked up so bad they wrecked the economy and needed unfathomable gobs of cash from the taxpayers.   After they screwed up they still did everything they could to pay their executives a lot more than $270,000.    These high salaries are paid for by you and me in higher banking fees and government bailouts.   Why don't you bitch about that you stupid loser?   Was school really that bad for you ugly bob that you need to hate everything about the education system the rest of your stupid life? 

Bob
Bob

Dear Michelle, I am a Minneapolis Public School teacher who has watched the district's administration for decades misuse funding.  I am the 99% and I am not only a bad person, I am good as well.  What you completely miss is that there are corrupt folks in public positions who sell the education of children in order to get their Escalades (Dr. Peoples, former sup who got her golden parachute to fly away from MPS; Dr. Carol Johnson who was named on a grant award letter for $100,000, funding for the school at Henn Cty. JDC that never saw it; high school administrators that misused sped funding to teach regular ed students, got caught, lost the money, and laid off teachers; Current Super giving big parting gifts to retirees and raises to the people who never come in contact with students and teachers.. and a Board of Ed that looks the other way..)  Sure, I agree that the 1% has got to be dealt with, but these administrators are NOT the people who are on the front lines.  In fact, these are some people who regularly disregard the teachers and offer no regard at best and contempt at worst for those of us in the classroom that dare to speak up and ask for help.  Yes, my life has been stupid, partly because I've put up with the toxicity of the negligent administration of those underlings entrusted with the education of your children.  But you are insulting the lunch bucket, day by day teacher who has to do more and more with less as the school level.

You can't defend the rotten bureaucracy that gets relatively high salaries that you and I pay for when they're wrecking the future generation.  So, Michelle, perhaps you should direct your complaints to MFT Local 59, if you are so upset with the corporate weasels and not willing to look locally at the theft of tax dollars by similarly insulated and overcompensated publicly employed individuals in charge of what is arguably the most dysfunctional institution in America, those tax wasting bureaucrats in public ed (and in other govt. positions, working with THE MAN to pad their purses under the charade of fighting for good educations for all and pretend to care.

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