Guest Post: Orthodox Jewish Financial Crisis

A reader asked if I could feature his article as a guest post, and I'm happy to oblige. Happy back to school week to all my readers.

Orthodox Jewish Financial Crisis
David Jackson
August 26, 2010

On a recent Sunday, a young Orthodox mother was busy preparing for her son’s first day of school. That Monday, Yeshiva Bais Hatorah, a 350 boys elementary school in Lakewood, NJ never opened. The school had accumulated approximately $500,000 in debt. The following week another Lakewood school,Yeshivah Keter HaTorah, announced it too would not open due to financial problems. Parents were left scrambling to find alternative schools.

The Jewish Week recently published an article with an alarming title “Can Day Schools Survive?” The article states “Even more significant than the declining interest of mega-funders, day schools have been hard hit by the recession, which has not only made fundraising more challenging but has greatly shrunk the pool of parents able to pay tuition. With the day school enterprise facing dropping enrollment and rising scholarship requests, nearly a dozen institutions will not open their doors in September and many others worry about sharing that same fate.”


At most Orthodox schools across the US, scholarships have become increasingly difficult to obtain as the percentage of students on scholarship continues to increase. Collectively, Jewish day schools are in trouble financially. Marvin Schick, a leading Jewish day school observer, recently wrote: “Conventional Orthodox schools are also experiencing unprecedented hardship. Modern Orthodox institutions that in the aggregate cater to relatively affluent families and charge top of the line tuition that without pause grows each year are now in trouble and forced to make staffing and other cuts.”

Yossi Prager, the executive director of the Avi Chai Foundation for North America is also very aware of the situation. The Avi Chai Foundation spends millions each year funding Jewish education. His article written in a 2005, in the Orthodox Union’s Jewish Action magazine, titled The Tuition Squeeze’, depicts a cartoon of a family getting squeezed by the high cost of Jewish education. He writes that “there is a sense that many schools are at the precipice of financial crisis. .... Finally, and perhaps most importantly, is the critical need to close the gap between schools’ operating budgets and their incomes from tuition and fees. The gap can be as high as 30 to 40 percent of the budget.” This article was written before the Great Recession. The situation is much worse now.

According to Rabbi Dr. Tzvi Hersh Weinreb, the Executive Vice President Emeritus of the Orthodox Union, states that financial problems at the Orthodox days schools are one of the three biggest problems facing the American Orthodox Jewish Community.

On a bright summer’s morning, a father enters the Kiryas Joel Meat Market to buy some glatt koshermeat for shabbat. He worries about the prices of meat as it is very expensive on his meager kollel stipend. Nevertheless, shabbat is coming and it is traditional to eat meat. Kiryas Joel is a 100% Orthodox town, populated by Satmar Chasidim, 50 miles north of New York City. According to the US Census Bureau, in 2008, Kiryas Joel has the the highest rate of poverty for any town or city in the United States. Two-thirds of its residents live below the federal poverty line. The median household income was $15,848.


In Burrough Park, an Orthodox enclave in New York City, a frum social services worker stated that if it wasn’t for government welfare, ‘half of Borrough Park would starve.’ She was talking about the Orthodox Jews in the neighborhood. Perhaps she was exaggerating, but her words reflect a depressing reality. The poverty is real and seems to be growing.

A survey conducted for the federation five years ago showed that 350,000 Jews in New York City and state live close to the poverty line. The highest poverty rate is in Brooklyn. 27% of those 350,000 Jews are Ultra-Orthodox living below or the poverty line. That means that there are about 100,000 Ultra Orthodox Jews living in poverty in the area. This represents 25 - 40% of the ultra Orthodox population in the region.


In Lakewood, Dr. Casriel Roberts, who has donated over a million dollars to Bet Midrash Gevoa (BMG), the largest yeshiva in the US, warns of a financial catastrophe looming. He spoke at the Beth Medrash Govoha of Lakewood’s Annual Evening of Chizuk. “I am really worried about a tsunami that is coming ... There are 4,000 children being born in Lakewood every year. It is astounding. At the same time most of the schools are financially broke. And it looks like we will need to double the number of schools in the next 4, 5 or 6 years. The current generation of parents. I am going to estimate those ages 30 - 50 were mostly raised within the yeshiva system and never learned the secular skills to go be to go out into the world and earn a substantial parnasah [income] . So the current economic pain that we are feeling is not due, I believe to the recession so much as due this tsnumai wave that is coming towards us. .... It seems to me that financial gap that families are facing is more like 50,000 or 75,000 a year with baruch’ hashem all the children that we are having and the staying frum and the schools that are growing.”

In the right wing Orthodox communities, the growth of kollels and the lack of higher levels of secular education has been a driving factor in the large percentage of low income families. Most of them being large families. Low income, coupled with a large family is a recipe for financial hardships. Increasingly, the community is dependent upon government welfare such as food stamps, section 8 housing, medicaid and charity in an attempt to meet their basic needs. Sadly, these needs are often unmet.


Yet, the financial crisis in the Orthodox community is not limited to the right wing Orthodox. The Modern Orthodox and Centrist Orthodox communities are also facing significant financial problems.

Across the blogs, there is significant interest in the subject of money, as it relates to the Orthodox community. A few months ago a disgruntled Orthodox Jewish high income earner in the suburbs of New York City launched a blog called Bergen County Yeshiva Tuition Blog. The author calls himself a “200k chump.” What is a 200k chump? His family earns $200,000 a year but he still feels like sucker as they struggle to pay expensive day school tuition costs and high housing costs. He feels that given his high household income, he should not be struggling financially. Their income is in the top 5% of US households, yet he worries about paying all the costs.


The Modern and Centrist Orthodox Communities generally have higher incomes than the right wing Orthodox communities, yet many are still struggling to pay expensive tuition costs and high housing costs.

In the past few years, there has been a outbreak of high profile financial fraud cases in the Orthodox community such as the Abramoff, Rubashkin, the money laundering in the Syrian community, and two separate real estate ponzi schemes in New Jersey and Florida. Perhaps, the growing number of high profile financial fraud cases is an indication of a community increasingly desperate to obtain income.


Communal wealth, on a per capita inflation adjusted basis, is declining. Communal wealth is very important in building and supporting the intuitions necessary for Orthodox communal life such as days schools, mikvehs, synagogues and other charities.

Certainly, a decent percentage of upper middle class and wealthy households exists in Orthodox Jewish communities. Many community members do donate considerably to support the poor, schools, synagogues and other worthy causes. Yet, many of these communal institutions are still struggling financially.


The cold harsh reality is that the American Orthodox Jewish Community is dealing with a financial crisis. Major financial challenges exist both on the income side as well as on the expense side. On the expense side, the community is struggling to pay for private education, high housing costs and large families. On the income side, a significant percentage of families have low incomes, especially in the more right wing orthodox communities. Others, have lost jobs during the Great Recession.

This all begs the important question, what can be done in the Orthodox Community to remedy the financial crisis?

Bad Idea: 1% "Sales Tax"

Creating a (potentially costly) book keeping nightmare for frum Lakewood businesses to grab a 1% "sales tax" in the name of tuition is simply a bad idea that could prove popular and possibly catch on should cooler heads not prevail.

Small businesses will soon be hit by other headaches and/or costly requirements hidden in recent legislation such as the new 1099 requirements (a subject for another post). Many small businesses do not currently have the proper accounting and technological support to meet such a requirement and will need to increase their overhead to meet compliance requirements. Sticking frum businesses with another layer of red tape strikes me as insensitive to the challenges that businesses must meet.

The potential to drive away business from already costly business is yet another concern. Even if we pretend that frum Jews are not price sensitive out of a sense of support for the frum owner, I think we can safely assume that non-Jews that might patronize a business are price sensitive. If there is one thing that is needed more than anything else in the Ortho-economy it is outside money. Driving away new blood to chase after a $1000 donation for every $100,000 of inventory sold is short-sighted.

A third issue is the lack of real ability to enforce such a requirement (and just wait until accusations start flying).

And a fourth, and very major concern is one of privacy! Privacy should always be respected, and I think that so long as a business owner who isn't asking for tzedakah funds for their own tuition, he/she should not be put in a position that other are not put in, namely being forced to reveal private information (which a tax on sales will clearly reveal).

I don't enjoy "knocking" ideas that are put into the public square, but someone needs to sound the economic whistle. Just one (wo)man's warning. Take it and promote it, or leave it.

Oy! Second 11th Hour School Closing

Lakewood's school year isn't getting off to a great start. Last week, Yeshiva Bais HaTorah (350-400 students) announced it would not be opening the day before school. Today, shortly before school opening, Yeshivah Keter HaTorah (150 students) has announced it too will not be opening. It has been reported (see Matzav and TLS and VIN) that both schools had not paid their Rabbonim in months. I believe that the administration approached Rav Matisyahu Solomon for a psak on what to do regarding the budget. Shortly after, the Yeshivah Keter HaTorah Rebbes approached the same Rav and received the same psak.

There are some (ridiculous) comments I feel compelled to address. One commentator at Matzav asks:

I don’t understand: Is it better to have hundreds of kids without a school than to have rabbeim not paid? The rabbeim are either way not being paid bec. now they are out of a job. But we have hundreds of kids without school!

I've been covering non-payment since the inception of this blog and one thing I have noted is that Rabbonim feel as though they cannot walk, which is something I believe every single one of us in private industry would do should our employer fail to pay us. Some, like the commentor above, dismisses the opportunity that Rebbes would have if they were not working for free! I don't dismiss opportunity and I am a firm believer that Hashem puts opportunities in our paths. For a myriad of reasons, Rebbes as a whole seem to be held "hostage" by non-paying schools and acting as a group, or unorganized union, gives them much more power to do what should have been done months ago.

it's broken writes:
when are we going to real;ize that our system is broken
people are floundering
no money for food
no money for shcool
no money to marry off their kids
no money period
even people with job
seven p[eople who both wife and husband are working
we need a new system
we need housing
we need aubsidized food
we need help to support frum families
most frum families are struggling
moist people are not making ends meet
how long will it take till people realize
how many more mosdos will have to close


After declaring the "system" broken, the commentor calls for more of the same---welfare. Certain segments of the Orthodox community are highly dependent: dependent on parents, dependent on government programs, dependent on tzedakah. If such communities want to start solving their economic woes, independence is the answer, not (more!) subsidized food. I'd start paving the road to independence with a remediation campaign. Clearly, there are too many who lack basic skills, from basic English and vocational skills such as typing, to a lack of analytical thinking.

I think all the schools should enroll their children in the PS. What would happen is that the PS would have no room, and be forced to contract out for third party vendors. At that point the recently emptied private schools can become the third party vendor and receive generous compensation much like TT does. This would help fund the english dept costs, and tuition can be brought down to pay for the hebrew studies alone. This would help everyone, as the State would have to give more state aid since there are more children enrolled. In worst case, this should be done with the girl schools if not with the boys.

More predictable stupidity! To the residents of Lakewood and other heavily populated communities, public schools can handle some influx and they will do what they have always done when there are population shifts, use resources as efficiently as possible (and government isn't where I turn to for lessons in efficiency!).

In the last city I lived in, the elementary school down the stree from me ran two kindergarten schedules. The first session of the day started at 7AM, the second session started at 1PM. At one time my (public) high school had a far larger population than when I attended. The school was opened right as the baby boom generation started to enter high school. The school did not build its campus to accommodate the incoming class. They build the high school to accommodate the predicated future high school population, not the huge amount of students that they needed to accomodate in the first 10 years after opening, and the school squeezed classes into non-classroom areas until the school populations returned to normal levels. Other public schools have concurrent year round schedules to accommodate students. Sometimes, high schools in the same district, only offer certain electives, extracurriculars, or vocational classes, in one location, although all qualified students can attend such a course if they provide their own transportation.

Perhaps if schools in heavily populated Orthodox Jewish areas would form their own "school districts" to increase efficiency, some of these problems wouldn't be hitting with such vigor.

HOW COME THE PUBLIC SCHOOLS ARE NOT CLOSING
OUR TAXES ARE FUNDING THEM!WE HAVE TO FUND OUR SCHOOLS, NO EXCUSES

The most intelligent comments are always in caps, right? I dare the commentor to leave his/her tax bill unpaid and see what happens. (A hint: the taxing entity can and will foreclose on your home).

UPDATED:

A comment from "Normal"
Yungerleit are paid 80 dollars per week only after being in Kollel for a few years [waiting list].
Women that teach are paid minimally.
For a family of eight children the tuition without camp is at least 28,000.00.
How are they expected to live?
Kollelim that pay higher wages should be welcomed into our town!

And pray tell, where in the world does this commentor think money for Kollel comes from? Clearly part of the massive remediation process needed must include an understanding of free market economics, wealth creation, and basic personal finance.

from destro613
maybe more tuition is needed

Maybe if we charge more for the same product that the average parent couldn't pay for to begin with, money will start to grow on trees? I think part of the remediation process must include the younger set running a joint lemonade stand with the older set. Any 5, 6, 7, or 8 year old who has ever thrown up a sign and a table in the front yard understands that charging more doesn't magically produce more. They don't need Algebra I to understand that functions don't always follow a straight line.

My Advice: Collect Door-to-Door for your Vacation

Hat Tip: Google Alerts

Before I allowed the latest (Lakewood) school closing hit my radar, a little reader question over at TLS hit my Google Alerts titled "What Comes First--Tuition or Summer Vacation?" [Update: Link corrected, my apologies]. After reading the question, all I could say was Good L-rd, no wonder things are starting to unravel.

A few things struck me about this letter:

1. The entire "negotiation" process regarding tuition discounts is simply bad business practice. This man states " Like many people in town, at the beginning of each school year, I call up the schools to negotiate a lower price for tuition, and then try to make quarterly payments to fully pay up." Earth to Lakewood and any other locale that allow such negotiations to take place after a cutoff date, you are engaging in a TERRIBLE business practice. No wonder school can't set and meet a budget when registrations/tuitions contracts are treated as meaningless.

Because of where we are vis a vis tuition, it would be near impossible to go to an industry standard private school practice and collect all tuition for the school year by the mid-year point, but there simply must be a cutoff after which the agreed upon tuition stands. It is simply not right to allow tuition negotiations at such a late date. While leadership argues whether or not parents take tuition seriously, I will just make mention with policies like these, it is no wonder that some don't take tuition seriously.

2. On the personal finance side, it is no wonder that so many people are in a mess of their own. What struck me about the question is that the person asking the question seems to think his situation is unique, and therefore worthy of consideration. You see, he commutes and doesn't get to see his children during the week. Come summer, his kids expect to do something. So, perhaps given these facts on the ground, a different answer than the expected one should be considered so he can cover vacation expenses, nothing fancy mind you.

My personal finance advice of the day: if you want to get out of your personal finance mess, start viewing yourself as average instead of unique. Once you are average, it becomes a lot more difficult to justify whatever it is you are justifying (in this case, a tuition break on the backs of donors and other families. . . some of which might be doing their utmost only to find themselves without a school for their sons on the 1st day of school, as one of my readers has found himself).

3. The writer mentions negotiating down tuition a few thousand for " 'extras’. (And by extras, I don’t mean a new Lexus, I mean extras to spend on the family)." I don't know what the writer was intending to do for a few thousand, but this just points to an inflated lifestyle. I'm not certain what the writer was intending on spending a few thousand on, but a family should be able to have a nice summer without breaking the bank, especially if they live on the East Coast where so much is within a reasonable drive. Here are some buzz words: Staycation. AAA Member Discount. Room Saver Magazine. House Swap. Library Reading Club.

I suggest that a Yeshiva Administrator who tell any family that comes begging for a discount because they prioritized summer vacation over their tuition obligation to suggest that the parent go collect door-to-door for their vacation!

Related Past Post: Tuition vs. Vacation where R. Feurst gives a "maybe" answer on tuition vs. vacation. Sleepaway camp got a yes, retirement got a no, and retirement, a family vacation got a lukewarm maybe.

Never Let a Crisis Go to Waste

In an almost predictable fashion, within two days of a school closing, a "solution" is brought to forward. What is the solution? None other than (drum roll please) vouchers (!). In an editorial by the New Jersey Agudath Israel leader titled "We Know the Problem--What We Need are Solutions", the reader is left wondering if leadership can actually delve deep enough into the Orthonomics to do more than make simplistic declarations such as this one: "The problem is that we simply can’t afford to pay for two school systems – the Public and Non-Public Schools," much less actually offer solutions.

Now I don't mean to sound overly harsh or critical of leadership, but I find it horribly troubling that in the midst of dominoes beginning to fall, and in the midst of 350 students surprised by a school closing on the first day of school (including students with parents who have always paid their way), that nothing by a cry to lobby for vouchers is offered. That's it? It is so helpless! And, who wants to associate with helplessness?

You see, I'm not really interested in "imagining" all of the fantastic possibilities that could develop should this bill or that bill pass, anymore than I'm interesting in imagining all the possibilities that could develop for our family should my husband pick up his phone at work today with an incredible job offer that could potentially double his salary.

To be fair, two other solutions are named:
A. We have to find ways to encourage those in our community that don’t have children in Yeshiva or Day School to help fund these important institutions.
B. We have to find ways for the schools to pool their purchasing power in a consortia to generate better prices from vendors (and a great debt of gratitude is due to all vendors who have extended a great deal of credit and understanding to the schools).

Regarding Solution A, unless I'm the one living on an alternative planet, I think the author both fails to recognize their challenges. Parents who have managed to cut their children loose must often make up for lost time (paying off debt incurred during the Yeshiva years, marrying off kids, catching up on retirement savings). Those who have yet to enroll a child in Yeshiva (that do have regular income) are usually trying to pay off student loans, get ready to put a kid in Yeshiva, and/or save for a downpayment. I believe the vast majority of people (make that grandparents or future grandparents) without their own current tuition bills ARE either contributing directly to yeshivot (actually contributing towards tuition costs, babysitting grandchildren while their children work) or indirectly (supporting Bikur Cholim and Tomchei Shabbos, paying for the education of adult children so that they will be able to pay tuition, etc).

But, there is nothing wrong with pursuing this avenue, just like it is high time to pursue Solution B. But note, in solution B, a possible reason why tuition payments might not be coming in as expected.

Regarding this statement "over sixty percent of our Property Taxes are used to fund public education and we receive very little in return for our children’s education" I do have to note the irony given the other big Lakewood issues of the week where funding was cut from a private pre-school program serving frum children in a private school environment. Outside of the tri-state area, there are virtually no grants to private pre-schools. Transportation for private school students simply does not exist. Taxpayer funded special education and therapy services are not normally available within the confines of private school. Government funded meal programs are not a hallmark of private schools. Personally, I like low tax rates a limited government and I vote likewise. But if you continue to vote for candidates that support every imaginable pet program, expect high taxes.

Feel free to offer your suggestions for solutions that don't require imagining or a Sugar Daddy. I'd like to wake up one day and find leadership supporting educational alternatives that require parental investment, but enjoy some official support. Where general studies are not taken seriously, a good red pen and support from current administration would go a long way. I don't know of a public school district that doesn't offer an Adult Ed program. Those with very limited skills, need to be pushed into improving their situations.

In conclusion, the dominoes are falling and I think leadership efforts are best utilized in-house rather than knocking on the doors of the House. But what do I know? Perhaps the NJ Senate will pass a voucher bill by the end of September?

A Rav Weighs In re: Paying Employees

In a previous discussion of non-payment (sadly, a regular feature here on Orthonomics), it was mentioned that the issue of non-payment really is far more complicated than it appeared and that it would be helpful if the peanut gallery stopped giving their own uneducated psakim, but sought Rabbinic opinion.

Well, lucky for us, none other than Lakewood's Rav Matisyahu Solomon explained to parents why he recommended closing of Yeshiva Bais HaTorah of Lakewood (see previous post here). Obviously this yeshiva is not the only one demonstrating an all too common trend of non-payment and debts. The answer was simple and logical:

The Mashgiach answered, that he was not approached by other Yeshivahs, and perhaps would have given similar advice, should they seek it.

The Mashgiach explained, parents of the Yeshivah tell TLS, that Yeshivahs without sustainable budgets, cannot continue without a way to pay Rabbeim, and he therefore recommended that Yeshivah Bais Hatorah close until a permanent solution can be found, and not have to rely on emergency meetings to balance the
budgets.

There you have it. A Yeshiva must have a sustainable budget in order to pay staff. Where this is not the case, a Yeshiva must close until a real plan, not one reliant on miracles, is in place. Makes sense to me.

I Raise You An Unexcused Absence

Talking a break from every one's most favorite subject matter just to comment on an issue of concern to the larger Jewish community.

I spotted this AP News story on VIN regarding the public schools in Providence, Rhode Island. For the first time in 30 years, Rosh Hashana and Yom Kippur will not official school holidays and Jewish leaders are bent out of shape saying "were concerned that students who take those days off might be subjected to discrimination or would feel pressure to attend class rather than religious services."

Pardon me for a lack of sympathy. My father grew up in "Ir HaKodesh" and in those days, school was always in session during the High Holidays, which was certainly ridiculous considering each class averaged about 3-5 non-Jews including the teacher. Later my grandparents made "yeridah" and to a different locale and in such a place, there was little to no understanding for a student who would not sing Christmas songs or participate in the Christmas play, none of which he would touch with a 10 foot pole.

When I started in (public) school, religious absences were excused. But, unfortunately, some local churches abused this privilege and after one too many youth group ski trips, the District stopped excusing full-day religious absences which left me with some big, fat unexcused absences on my transcript. After I went to bat to try and get my unexcused absence excused, my parents did approach the school district to explain that their new policy, while certainly justified, did not consider the needs of the small Jewish population. They attempted to explain that holidays such as Rosh Hashana and Yom Kippur were full-day, obligatory religious days, not ski trips or social events.

I have no idea if the policy was ever changed. I do know that I graduated with a handful of unexcused absences on my transcript. In the end, my family considered this to be the price of Jewish commitment and we happily paid the price and moved on proudly.

There is something very empowering about sacrifice for Torah observance, no matter what the level you are at. I have to wonder if the Jewish Leaders who are making a fuss are really helping the cause, especially by suggesting students might feel pressured to attend classes (!).

It is natural to feel torn. But when they decide not to attend, their sacrifice will carry far greater significance (and hopefully these same Jewish Leaders will take to their pulpits and what have you to encourage parents and students to place the High Holy Days at the top of the calendar). I can't think of anything more religiously empowering growing up making it clear that as a Jew I would not, under any circumstances, participate in any celebration of Christmas, e.g.,, even where teachers thought there might be some room for compromise or negotiation.

I rarely comment on issues outside the Orthodox world, but today religion has been nearly ousted from the public square and purged from the public schools. Along with a greater tolerance for diversity of religious practice, something which I think can be celebrated, comes fewer chances for Jewish children to stand up and be strong regarding their own beliefs and practices. I'd say that before the Jewish Leaders of Rhode Island make a scene, they consider the golden opportunity that the students have to be different by being Jewish, an integral part and privilege of being part of Am Yisrael.

Give these kids and their families to do the right thing and miss school to attend shul.

School Shuts its Doors with One Days Notice

I can't even imagine what the parents of 400 students in Lakewood must be going through when currently after receiving the news (one day before the first day of school!) that their boy's Yeshiva was shutting its doors (see TLS, YWN, and Matzav). This isn't the first closing of the 2010 year in Lakewood. A Bais Yaakov day school announced its closing prior to the end of the previous school year. The school had a student body of 65 and over $1mil in liabilities including half a million owed in back taxes to the IRS. The numbers are as incomprehensible to me now as they were then when I heard the story.

I doubt there is much more behind this latest school closing beyond a lack of funds, or more specifically the lack of available parental funds. As we've learned from past articles, the majority of families in Yeshiva schools receive tuition discounts.

I think it disingenuous for Jewish news sites (YWN) to continue and propagate wishful thinking that school closings are a result of being "hit hard by the recent financial crisis." Such wishful thinking allows all involved to continue to naively believe that when the market turns around, that everything will return to normal. While we can't be completely dismissive of the current economic downturn, I find the thinking a distraction from the house of cards that has been constructed. Let's imagine an individual runs up numerous sources of debt from debts to friendly local retailers, to auto loans, to a mortgage giving them income to debt ratio of 1:1. This individual may well muddle along, making all required payments, by designating work bonuses and windfalls and taking advantage of transferring balances from card to card. Should that individual take a 20% pay cut in an economic downturn, is it really fair to blame insolvency of the economic downturn? Of course not! At least Matzav's report is a little more balanced writing that the situation is "indicative of a disturbing reality that is hitting home with great force: the dire financial state of our communities’ mosdos hachinuch." Of course, the financial state of Yeshivas and Day Schools is directly related to the financial state of the parents, and there are few schools out there (including modern Orthodox schools) that do not have significant numbers of families receiving significant discounts.

Of course, wishful thinking seems to be modus operandi. Commentors can't seem to help themselves as they suggest that all parents enroll their children in the public schools so as to "overwhelm" the public schools and receive those long awaited vouchers. Let's be frank, I doubt that even a small percentage of the most desperate parents of these 400 students will enroll in the public schools and even if all 400 did, it wouldn't be overwhelming. That probably about the size of an average elementary school. A few new trailers on a few campuses would solve the problem asap. If parents want to "overwhelm" something, they are better off dropping their 400 children off at homes of the board and administration on their way to work tomorrow. But, wishful thinking is always a cozy distraction. In other wishful thinking news, the cynical bunch wants to believe the school will open and this is just a brilliant fundraising move. Doubtful since there seems to be no fundraising campaign attached.

I think it would be interesting and very valuable for those involved in school closings to help educate other schools on the signs that the numbers just aren't going to crunch and that a closing is inevitable. That would be productive and hopefully helpful in the future. It certainly isn't pleasant to enroll 400 kids in school only to announce, one day before school, that the curtain has closed. One can only imagine the panic that has currently ensued.

Jews and Catholic Schools

Hat Tip: ADDeRabbi and TDR

The Boston Globe recently ran a story about involvement of Jewish Donors in Catholic Schools, as donors and contributors through board and fundraising involvement. I was asked by ADDeRabbi on my take and my take is fairly simple. The reasons listed in the article are very compelling reasons for a large donor to take an interest private education, even if Catholic schools and Jewish donors make strange bedfellows:

--excellent education for the neediest children
--"We like to get a good return on our investment"
--Academic achievement is measurably better than the alternative (inner-city public schools): . . . "Catholic school students have long outscored public school students on national achievement tests. In 2008, 98 percent of the graduates of schools supported by the Catholic Schools Foundation got into college."
--Investment is manageable: ". . . . . generally costs about $3,400 for elementary school and $9,400 for high school, according to the Catholic Schools Foundation’s website."
-- "It’s really attractive because it touches a couple of different things Jews tend to care about — number one, it touches the poorest of the poor . . . and it does it through education [called the "great equalizer" by another donor]." Others sighted the ideal of tzedakah, "the most virtuous of which was to help another person become independent."
--“beautiful children in uniforms, in relatively small classes, with big smiles, who were friendly and who were poised.’’

In other words, the donors see an ROI (Return on Investment) that is objectively measurable against the alternative. They are interested in helping families extract themselves from a cycle of poverty and they can relate to (predominately) immigrant families who are concentrating their efforts on education.

I'm sure plenty of people (not those readers who kindly pointed me towards this article, of course) might get a bit bent out of shape after they read this article, believing that this money is being "diverted" from our own tzedakahs. I'm beyond getting bent out of shape about such things and would rather just take notes because the bottom line is that when you are fundraising for a cause, you need to give people a compelling reason that your cause is worthy. Here the compelling cause is an opportunity to help students and graduates increase their educational opportunities and break out of a cycle of poverty for a fairly small investment.

My take is simple. Large donors think of themselves as investors. They see the result of their investment and they like what they see. So not only do they "feel good" about their investment, they involve others.

Please Quit Your Job

Whenever I hear about an Yeshiva employee who has not been paid, it upsets me greatly and breaks my heart. But, I also wish that Yeshiva teachers would stop allowing themselves to be abused. I don't think that they are doing anyone a favor by sticking around and allowing something so anti-Torah to perpetuate itself. They certainly aren't doing themselves a favor by staying in a position that doesn't pay while other opportunities are not pursued. They certainly aren't doing their families a favor as they fall behind financially. And I'm going to even insist that they aren't doing the schools and those that they serve a favor by allowing an unjust system to continue to prevail. Please, when you aren't being paid and it becomes quite obvious it is a lost cause. . . . quit and seek work elsewhere. Perhaps only at that point will the community be forced to come together and actually solve this problem by creating a "system" that actually functions. From this week's Yated:



Haven't Been Paid in Months

Dear Editor,

I read the letter regarding the tuition crisis [I believe this is the letter] and let out a very big sigh. As a parent, you may feel that the bill is huge, but please see the other side of the coin. I am a wife of a very hardworking rebbi who is owed $17,350 in salary. If parents don't pay their bills, their children will suffer. Rabbeim who don't get paid become stressed out. Streed rabbeim don't have savlanus to deal with tough kids. So please pay your bill.



Sincerely,
A Rebbi's wife


It is time to do what needs to be done.

Guest Post: More About “The Plan”

Thank you to Dr. Lasson, the author of the newest Guest Post on the subject of employment. This is another truly excellent article on employment issues with a lot of great points for consideration. I can personally relate to one of the later points in the article on how we, as Orthodox Jews, all reflect on each other (so, make a good impression for your brother's sake!). Lost of great information form my readers. Enjoy!

Reprinted with permission from the Where What When magazine
by Elly D. Lasson, Ph.D.

In his “Do You Have a Plan?” article (May, 2010), Stuart Hoffman makes several important points. I would like to add several of my own based on my ongoing experience with employers, recruiters, and job seekers.

It goes without saying that parents need to play a more active role in The Plan, interfacing with the undergraduate and graduate programs directly and being an informed consumer prior to their investment on behalf of their sons or daughters. Questions might include, what is the track record for the graduates of a given program? Have graduates been able to find a broad range of viable jobs in the corporate world, or are one’s prospects limited to the Orthodox community, in which quality jobs are scarce?

The time for parents to start thinking about The Plan is probably 10th or 11th grade, as decisions or non-decisions made in 12th grade will have important ramifications for the future. Parents should maintain an ongoing dialogue with their children about The Plan, and take practical steps towards it over the next several years. Deferring these conversations and steps will likely have significant consequences down the road. Obviously, some variables will change, but many are very predictable. I have met with many people who, in retrospect, never had a realistic plan yet now wish that they had. Many of them have not been able to break into or gain traction within the job market. While this has certainly been exacerbated in the current economy, it is not a recent phenomenon.

When seeking out a career path or plan, it is best not to anticipate being the exception to the rule. While some people have landed in a particular successful employment situation after an untraditional path, that approach is by definition rarely effective. Consulting with people who have “been there done that” is worthwhile. The concept of an “informational interview” is salient here. An informational interview is a meeting with a key (potential) mentor at his or her place of employment to learn about the field, the organization, and the workplace. Such an interview will hopefully serve as a realistic preview of both the positives and the challenges of that field. The timing of such a meeting should be early enough in one’s life to allow The Plan to crystallize.

Many individuals in our community are interested in financial services or federal government employment. People should realize that within the federal and even the private sector, employers will often conduct credit or other background checks (beyond a perfunctory “reference check”) prior to employment. Your credit score, which is an index of your financial stability, might also be researched. It is within their right to do so, if protocols are followed as per the Fair Credit Reporting Act. So, please be aware that a problematic financial history can have serious employment ramifications, not only for “security sensitive” positions but others as well. In addition, those with significant debt, including maintaining high credit card balances, might very well be disqualified for these jobs. Therefore, before you start applying for these employment opportunities, it is critical to make sure that your credit history does not contain errors or delinquencies; anything of this nature should be corrected or resolved. It goes without saying that one’s financial history cannot include anything illegal or unethical.

Even if a boy is cut-out for a full-day learning program and is successful in yeshiva, that might only be appropriate in the short term. For most people, there needs to be a cheshbon, or plan, towards an eventual “exit strategy.” This strategy should be considered early on. The objective should be to obtain credentials that will match not only one’s acumen and interests but will also be recognized by a broad range of employers in a competitive job market.

The following are some historical trends that I and others have observed:

1) For the most part, during the 20th century, white-collar jobs were relatively stable and predictable, especially in traditional fields like law, accounting, business/entrepreneurship, and medicine. Things were stable and did not change much; change if any, was slow.

2) At the end of the 20th century and the first decade of the 21st, advances in technology and science have drastically changed the landscape of the workplace. This has created new challenges of supply and demand within the labor market. Some jobs have been specialized. Some have become obsolete. Some have been outsourced overseas. Therefore, the number of available jobs, especially within a restricted geographic area, has shrunk. The common denominator is that things are constantly changing and people have to keep up.

3) From 2008 to 2010, an economic reality has hit, creating additional changes in the labor market and where jobs can be found. For people to continue to hang on to the first point above, without a full appreciation of the second, is counterproductive and amounts to burying one’s head in the sand.

The take-away lesson here is that trends are pointing in different directions, certainly other than the professions mentioned in point number one. The reality is that there is now a glut of attorneys, accountants, and MBAs who are seeking employment in fields with a limited number of openings. Those who are passionate and motivated in traditional occupations such as accounting, law, etc., may still want to consider those fields, as long as they take point number two into consideration and make conscious decisions accordingly. They should not rely on the job market of yesteryear or go into these fields because that is what everyone else is doing.

People should read publications such as the Wall Street Journal and the Baltimore Business Journal to be conversant with market trends. Also, they should speak with people in the field, both Orthodox and not, those who are experienced as well as those who are early-career. The laws of labor supply-and-demand are in play today more than ever.

There is another significant issue, which relates to using the “streamlined” undergraduate degrees as a means of gaining admission to some sort of graduate program. In a traditional bachelor’s degree program, there is an opportunity for exploration and trial-and-error, allowing the student to make adjustments or switch tracks. That is not the case with streamlined programs, especially if the degree obtained is not accompanied by work experience. Therefore, one must be relatively certain about the track to be taken. It should be one in which he or she has the ability to do the coursework and complete the program, is passionate about the field with healthy ambition, and is capable of being successful in that discipline. Going down a vocational path simply because it is in vogue, or because it is perceived at being easy, might ultimately result in a bad fit.

I would like to clarify some points about transferring credits. Not all colleges will accept credits earned for college courses taken off campus during high school or beyond. This is an empirical question, which parents should find out ahead of time by consulting with the prospective college Admissions Office directly. In addition, there is a subtle difference between a college accepting a course as a prerequisite for other courses or merely counting those earned credits towards the grand total required.

The tone of this article is not to be critical of any local institution. However, there have been observable deficits recently within our community in terms of skills related to written English, math, and science. There is a tendency of parents to minimize the importance of these areas at the junior and high school levels, with the assumption that somehow, one’s son or daughter will eventually pick it up and do fine in post-high school classes and the workplace.

Well, that is not happening. We are seeing the ramifications of this trend in terms of many young people not being competitive in today’s job market. Make no mistake: This trend is independent of the current economy. Parents should come to expect an improvement in these areas from the schools. Otherwise, they will find themselves disappointed down the line when their children have challenges finding employment.

“Soft” skills critical to success in any field of endeavor include proper social and communication skills as well as professionalism. Simple things such as returning phone calls in a prompt fashion, being polite and not overbearing, having the appropriate balance of self-confidence and humility, and following up appropriately, are to some extent lacking. In our era of email technology, communicating properly and promptly through that channel is also part of this equation. In addition, offering oneself as a team player, both verbally and in action, is a sought-after quality in demonstrating work readiness; in a tight job market, it is a requirement. These are basic prerequisites, the importance of which should not be overlooked.

If a young man or woman is open to various fields, it should be noted that the growth fields today include engineering, technology, science, and biotech. The predicted influx of jobs to this area as a result of the Base Realignment and Closing (BRAC), the U.S. Cyber Command, and a Federal Data Center will be primarily those in technology and engineering. Yes, it is true that the schooling for these fields might take a bit longer. But, in the long run, the person will be better off by obtaining credentials in which there are a greater number of potential job opportunities. People should realize this and seek channels through which to obtain industry-recognized training and experience.

Within Information Technology (IT), the “hot commodities” we are seeing in the job market are Java, Sharepoint, C++, PHP, .Net, and programming for mobile devices (see below). These skills are very specific and may not even be taught through traditional training courses. They are often picked up on the job, which makes job experience particularly salient. For some, a bachelor’s degree in Computer Science or Information Systems is required or advantageous. However, industry-recognized certifications do not require a degree and can be administered through companies like Microsoft or Cisco. Locally, degree and non-degree certification programs are offered at Towson, UMBC, CCBC, and Hopkins, as well as private career institutes.
Project Management within these technical areas is another viable specialty. However, it requires existing experience and the industry-standard PMP (Project Management Professional) certification. Program and Project Managers with the PMP, ITIL (and other related) certifications are in demand. The PMP certification is frequently what raises a particular individual to the top of lists, and many firms are seeking those with PMP certification. Regardless of industry or client segment focus, recruiters look favorably at this credential.

One last point is worth emphasizing when it comes to working together with others who are not like us. The truth is that we are representatives of not only Jews but of Orthodox Jews as well. A relatively recent phenomenon includes employees requesting time off or scheduling adjustments for discretionary reasons, such as personal or family events that are not linked to an absolute religious necessity. I am also aware of situations in which frum employees have maintained excessive degrees of professional separation in the workplace, which may very well convey the perception of not wanting to be a team player.

When employment relationships don’t work out for these reasons, both non-Orthodox and Orthodox employers might be hesitant to consider or hire another (often easily identifiable) frum employee in the future. In addition, a current Orthodox employee might be reluctant to “go to bat” in referring a frum job seeker to his or her organization out of concerns of it reflecting poorly on him or herself. So, a chilul Hashem might also have negative practical consequences for our community. Conversely, working effectively with colleagues and working hard for an organization can facilitate a kiddush Hashem, not to mention create the perception that Orthodox Jews, while principled, are decent and productive people.

Let me conclude with the following empirical information for review. While there are and will be jobs available in other fields of endeavor, this list shows the current trend towards the technical sector. (See sidebar for top-paying degrees.) Based on a recent informal survey which I sent to technical recruiters, the following are in-demand skills and credentials:

Specific Technologies, Environments, or Systems: Proficiency with Microsoft software (Office applications, the various Windows Operating Systems such as 7, XP, Server 2000); Sys Admin/Net Management tools (Microsoft, HP, Cisco); Sun/Solaris; UNIX/Linux; SQL Database development/other DB dev tools (such as Sybase and Oracle).
For accounting, Deltek, MAS90, other tools with Payroll and time tracking modules. The hottest accounting-related skill in this region right now is EVM (Earned Value Management).

Programming Languages or Software Programs: MS Visual Studio suite, other object oriented languages, such as C++, Java, .Net, J2EE, and Web development tools.

Training: College degrees, undergraduate or graduate, or other credential, such as an Associate’s degree or Bachelor of Science in Information Systems and Computer Science.

Industry Recognized Certifications: A+ (CompTIA), PMP, ITIL, Cisco, MS Office, MSCE, MSP(s), MCSD, HDI/HMI (Help Desk Institute).

Elly D. Lasson, Ph.D., is Executive Director of Joblink of Maryland.

[Sidebar] Top-Paying Bachelor's Degrees
(Source: Winter 2010 Salary Survey, National Association of Colleges and Employers)
* Data represent offers to bachelor’s degree candidates where 10 or more offers were reported.
Major Average Salary Offer*
Petroleum Engineering $86,220
Chemical Engineering $65,142
Mining & Mineral Engineering (incl. geological) $64,552
Computer Science $61,205
Computer Engineering $60,879
Electrical/Electronics & Communications Engineering $59,074
Mechanical Engineering $58,392
Industrial/Manufacturing Engineering $57,734
Aerospace/Aeronautical/Astronautical Engineering $57,231
Information Sciences & Systems $54,038

Public Service Annoucement: New Los Angeles Yeshiva Trade School

I have been notified that Rabbi Steinberg, one of the founders of Yeshivas Ohev Shalom, a low cost Yeshiva alternative in Los Angeles, has now founded a new Yeshiva Trade-School under the name Yeshivas Ohr Chadash. Like the first low cost Yeshiva, this Yeshiva Trade School will include public funded portions of the education. The announcement follows:

Another New Yeshiva in L.A.? Who needs it? Won't it add to the economic crisis?

Not this one! Yeshivas Ohr Chadash is a Yeshiva Trade-School. Get used to the phrase I have a feeling we will be hearing it more often. The previous idea of Yeshiva life and direction is changing to meet reality. According to HaRav Chaim Avrohom Horowitz, HaLevi, Shlita, (a.k.a. the Bostoner Rebbe) the Yeshiva system in the U.S. was established to a large extent by Rav Aharon Kotler to re-establish and insure an authentic Jewish life. However, according to the Rebbe (a Talmid and a Musmach of Rav Aharon), Rav Ahaon Kotler never intended that over 100,000 Talmidim would be sitting in Batei Medrashim and Kollelim throughout the U.S. and world-wide.

Now that we have rebuilt our Yeshiva after the decimation of the holocaust its time to get back to the educating and teaching trades. This is the way we, as Jews, have survived throughout the millennium. Ohr Chadash is a Yeshiva that will attempt to normalize and mainstream solid Yeshiva learning and vocational training. This is not a Yeshiva for troubled students. It is a Yeshiva for young men with a realistic plan.

It has the endorsement of the Bostoner Rebbe, Shlita, and the Jewish Educational Leadership in the Los Angeles community. The Founder and Dean is Rabbi Rachmiel Steinberg, formerly Mashgiach of Yavneh Hebrew Academy, Headmaster of JETS (Jewish Educational Trade School), and Educational Director of Yeshivas Ohev Shalom. For more information call: 323-228-9915

Do I Have a Responsibility?

Dear Orthonomics,

You really do have a responsibility to report on the breaking news about the corruption regarding the Rubashkin sentencing judge. Things are really looking ugly, as I surmised.

Signed,

[Name Omitted]



The above is the text of a letter I received from a reader. I'm not quite certain why I have a responsibility to report on the breaking news, which I believe refers to a Press Release from the defense team stating that the judge unlawfully presided over the trial because she participated in the planning of the raid. The Press Release was posted at VIN and YWN.

Up until this post, the word Rubashkin had been used by me in one single post on this blog. In other words, I basically ignored this case until I felt compelled to make the following comments which can be summed up as the following:

1. I believe it is a big mistake to put alleged, indicted, and/or convicted frum persons on a pedestal. Creating such icons and role models of Yiddishkeit is short-sighted in my opinion.

2. I believe it is a big mistake to conduct loud, broad based campaigns on behalf of alleged, indicted, and/or convicted frum persons. I think it far more appropriate to conduct campaigns in a quieter, more modest fashion. I have no idea if the Defense's charges against the judge will turn out to be fruitful or much ado about nothing. If anything, I see no need to make a big splash at every turn in the trial and appeal process.

3. I believe it is a big mistake of Jewish Organizations and Publications to continually stir emotions and allegations of anti-semitism. The judicial system is far from perfect, but the rule of law protects me and you, our lives, our children, and our property. We live in a glorious country where cases can continuously be appealed and new evidence can be brought forward. We live in a glorious country when charges of corruption can be brought against judges and government officials. The Orthodox community has limited political amunition and I'm not sure the cases I addressed is the best place to use that amunition.

After I posted my single post that mentioned Shalom Rubashkin, I posted the words of Rav Shimon Schwab on what should be the approach to allegations of persons in our communities.

The court will hear out the Rubashkin Defense Team's allegations against the judge, as they well should. And perhaps the courts will find evidence of impropriety, or even corruption. But the "breaking news" doesn't impact my own assertions that loud, public campaigns might not be the tactic the community wants to pursue in the name of justice, that turning alleged and convicted criminals into icons of Yiddishkeit perhaps isn't the direction we want to go in, and that making an enemy of a justice system that protects us might be short-sighted.

I have never once dedicated a post to the proceedings of the trial. I don't plan to dedicate a post to the twists and turns in the future. There is plenty of information and opinions available in Jewish print for interested parties to read. I simply provided a little social commentary on an pattern and approach that I believe to be short-sighted and problematic. And even if the Defense does show that the judge acted improperly and is as corrupt as they come, I still do not believe the approach of late is the proper approach to be repeated next time (and I do hope there will never be a next time).

Readers, do you think a single mention of the Rubashkin Case makes me responsible to report "Breaking News"?

Guest Post: Debt is Harmful to All Those Around Them

With thank to my Guest Poster who would like to remain anonymous.

When my wife and I first started dating, we marveled over how similar our families are. Every time we spoke about our families and compared notes, it seemed they were more and more alike.

Looking back, it's amazing that it took several years before we discussed one key issue in which our families are as different as can be: finances. I come from a family where discussions about money, how much things cost, why certain purchases were or weren't being made, and budgeting and saving were the norm. We knew that money was tight, that yeshiva cost a whole lot of money, and therefore we had to sacrifice and spend money intelligently. We weren't poor and we weren't deprived, but we knew there were monetary limits and we had to live within them.

My wife's family is the polar opposite. Money is never, ever spoken about. And if it is mentioned, it is likely to cause a major scene leading one to learn very quickly not to bring it up again. It's not important how much something costs as long as it makes the purchaser happy. If you want something, don't wait, just go and buy it. Planning and forethought are unnecessary. If you're not sure which dress you want, buy all 3 and sort it out later. Suddenly want to visit family in another state? Buy a ticket and go.

This difference in attitudes has had dramatic effects on our respective families. My parents both work in good, but not great, paying jobs. But, because of their financial approach, they have managed to save a lot of money for retirement, have almost finished paying off their house, and are finally enjoying the financial freedom to travel. While my MIL does not work, my FIL works in the type of career where people immediately think they must be well off. Nothing could be further from the truth. They are drowning in tens of thousands of dollars in debt, have no equity and no savings (not even retirement), and spend their days and nights stressed out over whether the bank balance is high enough to cover the $100 payment just made to the credit card company over the phone after they threatened to close off credit or impose another fee.

It's been hard to get a complete sense of what my in-laws finances look like. As I mentioned above, they refuse to discuss it. But, you pick up bits and pieces despite their attempts to keep things secret. What's amazing is that while there were large financial mistakes that were made, the biggest contributor to their debt has been the many small, seemingly insignificant decisions they made along the way: spending too much for holidays, staying in nicer hotels, giving larger than necessary gifts for simchas, refusing to accept second best when purchases are made, and the like. When paid for on credit, those little purchases add up.

The problem with my in-law's situation is that their fierce desire to protect their family from their financial woes, is actually causing financial misery that they don't even see and that extends far beyond their personal issues. My wife is an apple that fell far from the tree. She is naturally frugal and saw the mistakes her parents made and didn't want to repeat them. Her siblings, though, are another story. Without having learned even basic financial responsibility they have fallen into the same patterns as their parents: no budgets, no planning, spend on what makes you feel good, don't seek out advice, and don't talk about money at all. Even when my wife asks them simple questions like, "Did you lock in the rate of your federal loans?" she is brushed off. They say she is stressing them out talking like that.

But, in the end, it's me and my wife who are really stressed out. Like when we hear something that leads us to think her brother is overspending and isn't paying off his credit cards in full every month. Or when her father jokes that it's good we have extra bedrooms in our house so they can move in when they're older. We worry how her parents will possibly retire, whether they really will have to move in with us, or what will happen if her father gets sick and they have no income. We worry that her siblings are following in the same path.

I'm not writing this looking for solutions. I just want to share our experiences and show how harmful debt is not just for those in debt but for everyone around them as well. Here, it doesn't just affect my in-laws, and it doesn't just affect my wife and I who may have to pick up the pieces down the line and possibly upend our lives to do so, but it affects their other children who never learned the skills necessary to make intelligent financial decisions.

Yeshiva Credit Union

Hat Tip: a long time reader who is free to self-identify

Community Magazine has a report of a Yeshiva Credit Union proposal to benefit the Sephardic/Syrian schools. The idea is interesting and innovative, and creating additional income streams is imperative. But I have my own doubts that third-party payers will ultimately be able to turn the tuition tide around unless these third-party payers put requirements on the schools that "force" the schools to operate in a different fashion than the currently operate in.

Additionally, I harbor my own doubts that working withing the current "system" in which tuition for 5 children ages 3-14 carries a price tag of $84,185 is really where grand efforts should be concentrated.

What do you, my readers, think of this proposal? Would you bank in a "Yeshiva Credit Union"? What concerns would you have beyond the stability and service provided by such a Credit Union? If you answered yes re: banking, what type of financial products would you be interested in procuring through such a credit union? How likely would you be to park your savings in such a credit union? Would you be concerned about privacy when banking in such an institution?

How to Stop the Cat and Mouse Game

Hat Tips: Google Alerts

Over at Dov Bear this past week appeared a back and forth between Jennifer in Mamaland and a Yeshiva Administrator, and a Tuition Wrap Up by Dov Bear. In short, Jennifer in Mamaland hates the tuition assistance dance of gathering numerous papers, disclosing every detail in detail, and begging for a reduced rate. She'd prefer a "short form". The responding Yeshiva Administrator doesn't like the dance he has to do to get parents to pay up the money that they agreed to pay in their tuition contract. And Dov Bear is calling for Yeshivot to run themselves more professionally and take collections seriously.

It sure would be lovely to have an honor system and one would think that when you are dealing with a Torah observant crowd, you could rely on an honor system. But unfortunately that was not the case when my husband was in elementary (his father occassionally did some research for the mechanech), nor is it the case today. Case in point would be a recent suggestion from one imamother member to another on how to keep the kids out of public school (which the mother was contemplating after her school closed down this summer) when the money for tuition simply isn't there:

Anyways, I say fight the fight and make sure they stay in torah schools. Tell the schools that your trying to get into that you are getting money from a relative-- make something up, and youll be able to pay in..october.. and then october comes and tell them you dont have it and pay what you can...they can't kick you out- can they? Iknow in new york they are really snobby and its sad. Where I lived, you pay what you could but with one or two schools in the community, they had no choice but to accept you either way. But I just wanna say that eduacting your kids to be religious, Gd fearing Jews should be number one priority for all of us. So I would do whatever I could to send them to Torah Schools. [sic]

Ah, lies, deception, and outright theft: The foundation on which to raise a "Gd fearing Jew." There is no question in my mind that Yeshiva administrators have their plate full when it comes to administering a scholarship system in a way that maintains dignity while trying to maintain some fiduciary duty.

So, the cat and mouse game is nothing new and because it is nothing new, I'd like to present an idea that is sure to be controversial with a capital C-O-N-T-R-O-V-E-R-S-I-A-L. Controversial as the following suggestions might be, they are industry standard practice and should be considered for their merit as the billing and collection games are simply ridiculous (and, yes, I've had a bit of an opportunity to witness this song and dance from the inside. Getting the billing and collections game under control would go a long way towards creating financially stable programming. Additionally, these practices will allow yeshivas (and camps) to create real, usable budgets which allow staff and bills to be paid on time, every time. The budget need not be a guessing game (and you can shave numerous staff hours in the process) when you know just just about how much money you have to work with because:

1. The school has collected most of the money before the first day of school (and builds in a premium for money they will collect later, offsetting possible bad debts).

In my research of private schools, I've noted that industry standard for private schools (especially pricier private schools) is to collect tuition in large lump sums. Ideally a school collects 100% of tuition due before the start of the school year, on August 1st. Different arrangements prevail for those who cannot pay in one lump sum, and extra fees are attached for parents who do not pay in one lump sum. I don't know if charging extra fees is halachically permissible, but I have seen some Yeshiva schools do so also. Some schools collect tuition in 3 larger lump sum payments, some in two. Collections are generally done well before the end of the year.


Now I realize that going to a one lump sum payment won't be popular for a number of reasons (and instituting lump sum payment plan(s), rather than a lump sum payment plan must be accompanied by a trust relationship), but it seems to me that if most tuition was collected before the start of the school year, schools could mostly end this cat and mouse game of collections. Furthermore, schools would basically know how much they have to work with and could plan accordingly.


Obviously, such a plan would be unpractical for parents currently in the system who are living month-to-month, but instituting such a plan for 1st time yeshiva parents is well worth considering in my opinion.


2. Tuition assistance decisions were made before school contracts for the coming school year are signed.

This also appears to be standard industry practice for schools that offer tuition assistance, as most private schools do. The admissions process works as such:

• Students apply for the following school year during late December, early January.
  
• Students applying for financial aid complete tuition assistance forms in addition to admissions forms.


• Schools send out letters of commitment and tuition contracts.


• Parents and students return letters of commitment, signed tuition contracts (and choose their payment plan), and a deposit for the coming school year.


• By August 1st, parents pay a majority of their tuition for the upcoming school year. Even where there are payment plans, the first payment is often the largest.

Parents know what they are expected to pay before they enroll their children in school. Administrators don't need to constantly "juggle" because the ball isn't constantly shifting as most collections take place up front.

3. The amount available for tuition assistance is pre-determined before scholarships are provided and assistance is divided from that pot of money.

Fire away. I realize that industry standard might appear to be somewhat draconian and some might label it "goyish." But this cat and mouse game that Mr. Yeshiva Administrator over at Dov Bear is playing with parents who bounce checks or won't make good on the agreed upon amount is no better.