Chicago civic leaders and citizens are at a crossroad. Serious decisions with long term consequences
are currently being made and challenged in an epic struggle that will determine
the future of the City of Big Shoulders. With the full support of the Mayor and
local business leaders, the Chicago Board of Education decided last
Wednesday to close 54 schools for ‘underutilization.” Union Leaders and community organizations are
taking to the streets this Wednesday to challenge that decision. The consequence of that clash will have long-term
consequences for Chicago and potentially the rest of the country.
At the core of the argument is a fundamental paradigm
question: are schools “businesses” or are they “infrastructure.” The distinction is critical to Chicago’s long
range planning. Current Chicago
political leadership believes the business model for schools is most
appropriate when making critical decisions.
This is evidenced by the fact that the Chicago Board of Education, hand
picked by the Mayor, is dominated by prominent business leaders. Those opposed to the business model for
schools are led by Union and community activists who believe schools should be
viewed as infrastracture and not businesses.
Those who support the business model and those vehemently against it insist
that choosing the opposing side will cause Chicago to become America’s next
Detroit. That is, a bankrupted town with
a dwindling population. A thorough
examination of the business model and infrastructure model for schools is
necessary to point to the way forward.
If the school system is a business, then each school is a
“factory.” The Chicago Board of Education is the high level management team
that works in the corporate headquarters offsite from the factories. Teachers and staff in the school are “low
level management” in one of many factories, and students are “lower level
workers” inside one of the factories. The
quality of product of each factory is
measured by whatever educational “score” is earned by the lower level
workers on a battery of standardized tests.
The cumulative test results of each factory and cost of running each factory must be carefully considered
by the high level management team (Chicago Board of Education.) The decisions of the high level management
team are based on financial efficiency alone.
The impact of a factory closing on a community is irrelevant to the
business, except as it applies to the cost of shutting down that individual
factory. The safety and convenience of
the lower management team and the lower level workers is important to the
business only when it relates to onsite operations. The degree of inconvenience
to reach the factory by low level management and the lower level workers is
irrelevant to the bottom line of the business.
This is because the time and money it takes for most workers to get to
the factory is borne mostly by the workers and does not effect the financial bottom
line of the business.
If Chicago schools are really mini businesses, then
consolidation of schools makes sense. Clearly, the fewer schools there are, the
greater the business efficiency. The
fact that the “workers” will have to travel farther to get to the business
(school) is irrelevant. The fact that an
abandoned “factory” mars the neighborhood landscape is irrelevant. The fact that the abandoned factory lowers
property values in the surrounding neighborhood is irrelevant because such
devaluations to neighboring properties do not impact the business’s bottom
line. The fact that “workers” may be at greater risk in their travel to the
larger, more efficient distant school is also irrelevant because that risk is not
borne by the business. The only thing that matters is immediate
financial efficiency to the business So, if schools are businesses, then in the
short term it make senses to close as many
“inefficient schools” as possible, in order to save money by economy of
scale. In fact, if schools are best run
under a business model, then the goal should be to continuously close schools
(factories) and continue to consolidate into larger and larger factories,
regardless of how inconvenient those factory locations might be to the workers.
On the other hand, if schools are infrastructure integrated into the larger
community, with the goal of providing value to the surrounding community, then
convenience to the citizens becomes an additional factor to consider beyond financial efficiency. If
schools are meant to provide vital
infrastructure benefits to the community, then location does matter. The closing of any school does have an impact on the surrounding
community and puts additional stress on other elements of the City’s
infrastructure. Property values of
surrounding homeowners must also be taken into consideration. Convenience to the
workers (staff and students) must also be considered and factored into the equation. The safety of students and staff in their
travels to and from the school also needs to be considered, even if that travel does not directly impact
the financial bottom line of the school. In fact, if schools are part of Chicago' infrastructure, then the closing of any school that subsequently invites neighborhood
degradation does matter, even though such degradation will not show up on the
Chicago Board of Education’s ledger.
That said, it is clear that if only immediate financial considerations
are included in the Board of Education’s calculus, it is obvious schools
as infrastructure cannot financially
compete with schools as “businesses”
This is because the infrastructure model considers the larger impact on the
citizens of Chicago, rather than the impact on the business alone.
Another way to understand the distinction is to consider the
financial efficiency of the current parking meters in Chicago. Because the current parking meter owners are
interested solely in financial gain, those wise business people created a
system in which customers must each walk to a pay box hundreds of feet away
from where their cars are parked, pay into a pay box, wait forty-five seconds
for a ticket to be printed, walk back to their cars, place the ticket in the
car window, and then go shopping.
If, on the other hand, the current owners of the parking
meters had maintained the old infrastructure mentality, citizens would have
been allowed to get out of their cars and pay
their money into a meter immediately next to their cars, and walk
away. These “old fashioned” citizen oriented parking meters were not as financially efficient as the new way of
paying for parking meters, but because the new owners are not interested in factoring in citizen convenience, but instead, interested exclusively in financial gain, the customer is inconvenienced, but the profit margins shoot up.
The fact that under the new parking system, many citizens spend more time paying for their parking and less time shopping in stores is
irrelevant to the current owners of the parking meters. This is because the parking meter owners have
no vested interest in how well local merchants due financially. After all, the parking meter owners are not
partners with the business owners and the they do not collect tax revenue from local businesses. So why should the current parking meter
owners care how much time or money its customers spend in local businesses? On the other hand, if the parking meters were viewed as part of the City's vital infrastructure, the time and convenience to the citizens of Chicago would have been a factor in the decision making process because the value to the citizen and the surrounding community would have been added to the value of the parking meter equation.
The difference between a “business model” and an
“infrastructure model” is clear. A
business model is based on the business’s self-interest in its own financial
bottom line, while the “infrastructure model” considers and values the impact on its
decisions to the surrounding community.
If schools are simply businesses with no connection to the local
community in which they are located, then the Board of Education’s decision to
close schools regardless of local impact is logical, albeit myopic. On the other hand, if schools are meant to
provide vital infrastructure to a community, then the bottom line of schools
are more accurately measured by the social impact of those schools on the
families they serve. If schools are
necessary infrastructure connected to the community, then far larger
considerations with far larger implications must be taken into account before deciding to abandon any particular school.
Clearly, under the infrastructure model, long term social costs and implications
of boarding up any school would trump any immediate short term financial gain.
While ordinarily it would be up to the citizens of Chicago
to determine whether or not schools are “businesses” or essential elements of
the City’s “infrastructure”, because Chicago has an unelected School Board
(unlike every other school district in the State of Illinois) the fundamental
answer to the fundamental question is not left to the citizens of Chicago, but rather
to an appointed school board that currently arguably believes schools are best
described as “mini-businesses.” Those
who disagree and believe schools are not really businesses but rather essential
elements of the City’s infrastructure are left to chant in the streets hoping
to gain the attention and support of the Mayor and the School Board. Chicago's taxpayers may not have the final voice in the decision, but all will clearly have to live with the both the financial and structural implications that result from that decision.