Tag Archives: failed

For-Profit Charter Schools Bill Fails in Senate Committee

A bill from Sen. Todd Gardenhire that would let for-profit companies run and manage public charter schools failed to make the grade in the Senate Education Committee on Wednesday, reports the Chattanooga TFP.
The bill failed, getting just two votes, including the Chattanooga Republican lawmaker’s own vote, while one colleague said no and three others abstained.
Gardenhire earlier told the panel the bill is intended to help charter schools, which are run by nonprofit groups but funded with tax dollars. Often, they are started by parents, teachers, churches or other groups.
“As you all know, when the charter school starts up, the hardest year is the first year and sometimes it’s not easy to get competent administrators or people who know how to do the mechanics of starting a school,” Gardenhire explained. “This would allow well-meaning people who set up a charter school to go outside and hire people to manage it. That’s not to say everybody’s not competent.”
While charter schools can contract out some services like cleaning or food service to for-profit vendors, they currently are not allowed to contract out management services to them.

List of Key Bills That Failed in the 2012 Legislature

By the Associated Press
Here is a list of some of the legislation that failed in this year’s legislative session:
ANTI-DISCRIMINATION LIMITS: Repealing a ban on local governments from enacting stricter anti-discrimination standards than the state. SB2762.
ATTORNEY GENERAL: Proposed amendment to constitution to have governor appoint the attorney general. SJR0693.
BI-ANNUAL SESSION: Holding legislative sessions only every other year. HB2785.
BIGGER CUT FOOD TAX: Requiring state to make cuts in sales tax on groceries if state has surplus revenues. SB3666.
CLASS SIZE: Lifting the cap on average class sizes at public schools. SB2210.
COLLEGES-RELIGIOUS GROUPS: Banning colleges from enacting nondiscrimination policies on student religious groups. SB3597. (Vetoed by Gov. Bill Haslam)

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Sundquist, Comptroller, Former Banking Commissioner and State Rep Had Ties to Failed Bank

A former Tennessee governor and the state’s current comptroller are among public figures with ties to an East Tennessee bank whose closure by regulators was one of the state’s first bank failures in nearly a decade, reports The Tennessean.
Former Gov. Don Sundquist sat on the Knoxville-based BankEast’s board. He and Comptroller Justin Wilson owned shares in its holding company.
After the bank’s failure last month, and the purchase of much of its assets by U.S. Bank, their BankEast stock is considered worthless.
State Rep. Joe Armstrong, D-Knoxville, also served on BankEast’s board and listed the bank as a source of income in a filing with the Tennessee Ethics Commission. He received a business loan from the bank.
BankEast failed after real estate, construction and other loans went sour amid the economic downturn. The bank’s 10 branches now fly the corporate flag of U.S. Bank. The Minneapolis-based company bought much of the failed bank’s assets, including $272 million of loans, and assumed $268 million of deposits
BankEast’s holding company, in which Sundquist, Wilson and others owned stock, wasn’t part of the U.S. Bank purchase. Typically, shareholders of a failed bank lose their money because they fall behind depositors and holders of unsecured and subordinated debt on a list of priority of creditors’ claims.
…Sundquist held 2 percent of voting shares in BankEast’s holding company at year-end 2010, according to BankEast Corp.’s most recent annual report filing with a regulator.
The ex-governor declined to comment on his ties to the bank, whose lead founder and chairman, Fred Lawson, was banking commissioner during the Sundquist administration. Sundquist was governor from 1995 to 2003 and was a congressman for a dozen years before that.