Amazon agrees to fund expansion of McKee's municipal education programs
Linda BorgJOHNSTON — Amazon has agreed to give $1.2 million to the state to fund municipal education programs, just days after it was reported that a consultant with ties to Gov. Dan McKee has been awarded $5 million to establish the programs.
McKee, when he was mayor of Cumberland, created the Office of Children, Youth and Learning and has championed municipal programs since becoming governor. The initiative includes pre-school, after-school and summer programs and has no connection to the school department.
Asked why Amazon would include this in its agreement with the town to build a fulfillment center there, Johnston Mayor Joseph Polisena said the suggestion came from the Commerce Department.
“I was working with Commerce on something for the state,” Polisena said Monday, “something pertaining to education. We went back and forth. We came up with a couple of things that the state wanted to see.”
The Amazon contribution will be paid out in installments of $250,000 per year over five years.
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This is the second time that McKee has thrown support behind his pre-school and summer school program, run by the mayor’s office.
He awarded a $5.2 million contract to ILO Group LLC to help reopen Rhode Island schools this fall despite a rival firm's offering to do the same work for several millions of dollars less.
The contract with ILO calls for it to build municipal education offices across the state modeled after the one in McKee's hometown.
The contract, first reported by WPRI, raised eyebrows because several of ILO's leaders worked for Chiefs for Change, an education nonprofit whose CEO, Mike Magee, founded Rhode Island Mayoral Academies, a type of charter school.
Magee was also a member of McKee's gubernatorial transition team.
McKee spokesman Matthew Sheaff said Monday that the Amazon pledge to fund more municipal education programs is not related to the ILO contract.
As part of Amazon’s commitment to the state, he said the e-commerce giant has pledged over $20M in community investments.
“These dollars would fund state programs in the areas of small-business support and education as well as make investments into the town,” Sheaff said. “As mayor of Cumberland, the governor opened up the Office of Children, Youth and Learning. The governor wants to replicate this model in Providence and other communities across the state (in cities and towns interested in such programming). These funds would assist with that. Regarding how the money will flow or be administered — the precise approach will be determined in the coming months.”
Sheaff also said there are no state funds going to the company directly. The ILO contract and a smaller one with WestEd are being funded with federal COVID-19 relief dollars.
Sen. Lou DiPalma, who chairs the Senate Committee on state Ethics and Investigations, said the Amazon piece raises a number of questions. Asked if it was an attempt to do an end run around the General Assembly, DiPalma said, “I’m not saying there is anything nefarious, but questions have been posed that need answers.
“It’s unclear why we are asking Amazon to fund a program that’s also being funded with federal money at the same time. I know it’s been in Cumberland. I’m not certain how we tie this to Amazon and the contract we just let with WestEd and ILO.”
Rep. William O’Brien, deputy majority leader of the House, has already called on the House Oversight Committee to hold a meeting on the ILO contract.
The Johnston Town Council inked a deal with Amazon last Monday to build a massive shipping facility off Hartford Avenue. In exchange for a tax deal, the town will receive almost $7.3 million per year. Amazon is expected to create 1,500 construction jobs and 1,500 permanent jobs.
With reports from Providence Journal Staff Writer Patrick Anderson.
Linda Borg covers education for the Journal.