Illinois Governor Freezes UNO Charter School Construction Funding

CHICAGO — Illinois Governor Pat Quinn has vowed to withhold all further construction funding from the United Neighborhood Organization (UNO), after a second financial scandal has engulfed the charter school operator. The organization, which has constructed 16 charter schools across Chicago, is currently being investigated for securities fraud by the Federal Security Exchange Commission (SEC).
According to the SEC letter received by UNO on Sept. 20, the investigation will “determine if violations of the federal securities law have occurred.” In response, Quinn has frozen a remaining $15 million from a nearly $100 million grant approved by Illinois lawmakers in 2009. Citing UNO’s need to “straighten out their affairs,” the governor has declared that none of the remaining funds will be released for UNO school construction. Quinn’s spokeswoman Sandra M. Jones added, “As a result of our own internal review conducted earlier this year, we have not approved any new projects, and have suspended future capital projects.”
Since the 1990’s, UNO has received generous financial support through both state grants and state-supported bond sales. The group had intended to construct two new schools with the remaining funds, as well as an additional $35 million lawmakers earmarked in 2012, before it received the SEC notification. The SEC is also requesting records related to 2011’s state-backed bond sales.
UNO previously came under scrutiny when two relatives of an UNO executive were awarded $8.5 million, state-funded construction contracts. Following this first financial scandal, Juan Rangel, resigned as UNO’s chairman of the board, but remains CEO. Rangel also acted as campaign co-chair for Mayor Rahm Emanuel in 2011.
The governor’s previous suspension of UNO funding briefly froze construction on the UNO Soccer Academy High School, a $25 million venture on the city’s southwest side, believed to be the country’s largest charter school subsidy. The freeze was eventually lifted, and the facility opened to students in September 2013. In defense of the financial reinstatement, Jones responded, “The funding was released because the work had already been completed, children needed to go to school and the contractors needed to be paid.” Despite Quinn’s confidence that the organization had corrected any wrongdoing, the Illinois Department of Commerce and Economic Opportunity has also received a letter from the SEC requesting UNO-related documents.
UNO began as a Hispanic community group in the 1980, and began constructing charter schools in the 1990’s. UNO schools now serve roughly 7,600 students across Chicago.

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Illinois Schools Receive $400 Million

CHICAGO — The school districts of Illinois will split $400 million for new construction, maintenance projects and renovations as part of the statewide Illinois Jobs Now capital fund.

The funds will be dispersed among 24 school districts with $306 million allotted to school construction, $50 million for maintenance projects, $25 million to alleviate overcrowded classrooms and $20 million will be dedicated to making the state’s schools more energy efficient. The fund may also provide reimbursement for school construction that has already completed.

“Our children cannot concentrate on learning if they’re sitting in a school that’s crumbling,” Illinois Governor Pat Quinn said in a statement. “When I became governor, I initiated the first capital construction program in a decade to elevate our schools and universities to world-class status. The quality of learning happening in our schools will drive tomorrow’s economy. These school construction projects will not only raise the standard of learning in our classrooms, they will bring much-needed jobs to workers around our state.”

The school construction is part of the larger $31 billion Illinois Jobs Now economic recovery initiative, which intends to produce jobs and replace aging infrastructure in Illinois. The initiative is expected to generate 439,000 jobs over the next six years.

With the funding, schools throughout the state will have the ability to construct new schools, classroom additions and renovate aging facilities while also creating thousands of construction jobs for a much-needed boost to the state’s economy. The state will also focus on projects to provide greater access to students with disabilities, repair roofing structures, and replace outdated energy systems.

Cook County schools will receive $23.3 million in funding, which will provide crucial funding to five area school districts. The projects now funded in Cook County include the construction or reimbursement for the construction of approximately 100 additional classrooms.

Clay, Marion and Wayne County school districts in southeastern Illinois will share $52.4 million in educational facility upgrade funds. The additional funds will assist the districts in the construction of pre-K to 5 school designed for 1,600 students in Clay County, the construction of an approximately 1,175-student pre-K to 12 school in Wayne County and an additional eight classrooms in Marion County.

Chicago Public Schools will receive the largest amount from the initiative with $89 million allotted to reviving aging school buildings and construct new facilities in the city. More than $59 million will be utilized for capital construction, approximately $10 million will go toward maintenance projects and $4 million will be dedicated to making Chicago schools more energy efficient.

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Illinois Governor Freezes UNO Charter School Construction Funding

Illinois Schools Receive $400 Million