For as little as $400 a year Harlem Academy offers city kids a very intense education.

Hands on: Vincent Dotoli started his school with one classroom and 12 first graders.

Zina Mingo has lived in Harlem for all her 40 years and now teaches in a Harlem public school. But committed as she is to the community, she wasn’t willing to subject her son, Devon, now 8, to the educational system she works for. “Most of the schools in Harlem are failing schools, and that’s just not an option to me,” she says.

Instead, Mingo is pinning her hopes for Devon on Harlem Academy, a four-year-old not-for-profit school just north of Central Park. With its small classes, focus on rigorous academics, required parental involvement and long school day, the school gets results; 90% of third graders score above the national median in reading and math. Students arrive at 7:30, begin sports at 3:45 and leave at 5 or 6, depending on whether they want homework help after sports. For that, parents pay as little as $400 a year and as much as $16,000, depending on income.

Harlem Academy is the passion of headmaster Vincent Dotoli, 39, whose lawyer father and cpa mother could afford to buy him a private school education at Far Hills Country Day in New Jersey. After college he taught in rural Maine and Rhode Island and then for four years at Buckingham Browne & Nichols, a well-endowed 125-year-old private school in Cambridge, Mass. But he didn’t feel his efforts there made much of a difference. “Those students were going to be successful whether I was there or not,” he says.

So in 2001 Dotoli enrolled at Columbia University to earn a master’s in education administration. His thesis was on a model for a private urban school that could skirt the public school bureaucracy dragging down big city schools, while involving parents, who are too often treated as a nuisance in those same schools. Edmund W. Gordon, director of Columbia’s Institute for Urban & Minority Education, joined Dotoli in meeting with prospective students and parents. Harlem Academy opened in September 2004 with 12 first graders in one room rented from an arts group. In 2005 it moved to bigger quarters and now has 74 first-through-fifth graders.

Country Day In Harlem – Forbes.com.

Cutting the Unemployment Line

Even in this economic chaos, some jobs remain recession resistant

There are three options government can pursue when the economy goes south. First, the Fed can cut interest rates, buy up assets, and extend credit, all of which the central bank has already done. Second, Congress can cut taxes on businesses and consumers in the hope they will spend more. The first effort—last year’s tax rebates—didn’t have the intended effect since consumers used much of the windfall to pay down debt or save. The substantial tax cuts that will be part of the Obama stimulus package would likely have a similarly muted effect. Businesses and consumers, facing a tough credit environment and needing to repair their balance sheets, will likely use proceeds from the tax cuts to tide themselves over. The third option is for the government to directly purchase goods and services, to substitute the demand that consumers and businesses aren’t providing.

The Washington remnant of the Republican Party—40 senators and 178 representatives—is all for Options 1 and 2, cheap money and tax cuts. But they’re having great difficulty with Option 3. They have forgotten Richard Nixon’s famous line that “we’re all Keynesians now.” To them, spending government funds to goose the economy is unacceptable, not just because of the possibility of poor execution —i.e., pork. No, many are rejecting it as a matter of principle. Even though several Republican governors are pleading for assistance in the form of federal spending, Washington Republicans are saying no.

Newly elected Republican National Committee Chairman Michael Steele laid down the party line on CNN: “Let’s get this notion out of our heads that the government create jobs. Not in the history of mankind has the government ever created a job.” Sen. Jim DeMint of South Carolina succinctly summed up his opposition: “We can’t keep spending and borrowing to get us out of a recession.” Sen. Kit Bond of Missouri concedes that some government spending—such as spending on highways—can create jobs but thinks that spending on mass transit or alternative-transit infrastructure isn’t stimulative.  Read More…

Will the Stimulus Plan Create Jobs? | Newsweek Voices – Daniel Gross | Newsweek.com.

The Obama administration wants to spend up to $100 billion on efforts to help homeowners, especially those facing foreclosure. But one of the leading ideas on how to do that — rewriting home loans to make mortgages affordable to struggling borrowers — is based on a startling lack of data about what works, and early evidence suggests that many lenders aren’t going to make substantial changes without serious strong-arming.

There are various ideas being bandied about, but the goal is common: to entice mortgages servicers, whether lenders themselves or third parties acting on behalf of investors, to rewrite the terms of loans so that people behind on payments might be able to keep their homes. (Read the four steps to ending the foreclosure crisis.)

One way being discussed to do that is for the government to share in the losses if a servicer modifies a mortgage and the homeowner again defaults. Another approach is to directly help pay for the cost of the modification. The servicer might cut monthly payments to 38% of a borrower’s income with the government chipping in to reduce the payment down to 31%, a presumably more sustainable level. Either tactic could be combined with a direct payment — $1,000 is a figure often mentioned — to incentivize servicers to do the heavy lifting of figuring out how much a homeowner can truly afford and recrafting his mortgage to match.

To a homeowner who has always made mortgage payments on time, perhaps by sacrificing spending elsewhere, the whole concept may seem grossly unfair. But society’s problems are unfortunately often our own. As the foreclosure rate has skyrocketed, and loan defaults have rippled from subprime mortgages into ones made to prime and near-prime borrowers, property values in many parts of the country have been pounded. There is an unavoidable correction going on in house prices, that much is true, but the swoon has caused additional

Reviving the Housing Market: Will Loan Modifications Work? – TIME.