Mediation Statement Proposes Bank Payment to Minneapolis Schools
Wednesday, October, 12, 2011
A mediation statement has been issued by Neighborhoods Organizing for Change, a Twin Falls – Minneapolis neighborhood action group concerned about school funding in the state of Minnesota. The statement centers around concerns that the activities of large banks may have caused a shortfall in school funding due to the way property values have declined and foreclosures have increased after banks issued millions of dollars for home mortgage loans that have since been defaulted on.
Mediation Statement Urges Restoration of School Funding
According to Steve Fletcher, the executive director of Neighborhoods Organizing for Change, Wells Fargo is a bank whose default rate has influenced the available funding for schools, which is largely generated by property tax receipts. As home values decline, so does the amount the state can collect in property taxes.
"Wells Fargo's share of what it costs the Minneapolis Public Schools is $28 million," commented Fletcher, who went on to recommend mediation as an appropriate mechanism for resolving this dispute over supporting schools adequately. "I would like to see Wells Fargo write a $28 million check to the Minneapolis Public Schools. That would be a really good start. I would also like to see them agree to mediation for everybody facing foreclosure and I would like to see them start thinking about writing down principal to really adjust where the market is."
Resolving the dispute through mediation would most likely take the form of public policy mediation.