The coordinator of the opposition in Israel’s Knesset Finance Committee, MK Vladimir Beliak (Yesh Atid), criticized on Thursday reports that Prime Minister Benjamin Netanyahu had promised to assist a major haredi school system affiliated with United Torah Judaism MK and Knesset Finance Committee chairman, MK Moshe Gafni, that is currently under legal scrutiny for financial mismanagement.
In a post on X, Beliak wrote that he had received “more and more reports” that Netanyahu had promised to find funding to aid the private haredi school system known as the Hinuch Ha’atzmai (literally “Independent Education”) pay its employees’ salaries and social security benefits for the month of July.
The school system has been in financial trouble since a report in February by the Finance Ministry’s Accountant General Yahali Rotenberg laid out a series of financial irregularities. Beliak accused the prime minister of attempting to unlawfully assist the school system in order to prevent a political rupture with his political ally, at least until the end of the Knesset summer session on July 28.
Beliak warned the “prime minister’s office, the head of the Knesset Finance Committee (Gafni) and all those who are involved in the matter – we are following closely. We will scour with an iron comb every relevant transfer (of funds) that arrives at the finance committee. We will conduct an uncompromising professional, parliamentary, and legal struggle, we will reflect the reality, and we will update regularly,” Beliak wrote.
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Moshe Gafni, Aryeh Deri (credit: Flash 90-)
Gafni threatened a number of weeks ago to quit his position as Knesset Finance Committee chair if a solution was not found to save the school system from bankruptcy, and the inability to do so could lead to a political rupture in the coalition. This could happen irrespective of another crisis regarding the end of the haredi exemption from IDF service.
Financial mismanagement led schools unable to pay salaries
Despite being privately run, the Hinuch Atzmai and its Shas-run counterpart, Bnei Yosef, enjoy special legal status and receive full state funding. The two systems have received over NIS three billion annually in state funding during the past few years, and they share characteristics with government bodies – they are directly connected to the government’s MERKAVA funding system, and they employ a finance-ministry-appointed accountant to run their finances. However, these school systems are not prone to the same level of oversight as public schools. The presence of the publicly appointed accountant has enabled the systems to avoid effective financial scrutiny, as they have argued that their finances are state-run and therefore not their responsibility.
However, the February report found that the Hinuch Haatzmai had bypassed its accountant and amassed a tax debt of over NIS 80 million, and another report found that the school system had accrued additional operational debts of over NIS 300m. The Hinuch Haatzmai is also facing dozens of challenges in court, including six class actions suits against alleged violations of employees’ rights, including unexplained salary deductions, unpaid work hours, and more. These legal challenges could lead to hundreds of millions of additional shekels of debt.
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As a result, the Hinuch Haatzmai in May suffered a bank account foreclosure, and at first was unable to pay its employees’ salaries in June. The Finance Ministry agreed to loan the necessary funds for June, but the system now faces the same challenge for July.
Rotenberg in February threatened that if a solution was not found by July 1, the Hinuch Atzmai and Bnei Yosef school systems would be disconnected from the government’s MERKAVA funding system, and the finance ministry would remove its accountant. This would force the systems to employ independent financial management, and bear full responsibility if it failed to meet tax requirements and financial commitments.
However, Finance Minister Bezalel Smotrich, Minister in the Education Ministry Haim Biton (Shas), and representatives from the Justice Ministry have attempted in recent weeks to come up with an arrangement that would lead to closer oversight of the systems, while keeping them afloat financially by continuing full state funding.
FINANCE MINISTRY representatives reasoned that if this did not happen, the Hinuch Hatzmai, which has over 100,000 students and thousands of employees, would collapse, and the state would need to intervene regardless.
Members of the opposition opposed such an arrangement, as did the Movement for Quality Government in Israel (MQG). In a letter dated July 2 to Rotenberg, Biton, Finance Ministry legal adviser Asi Messing, Attorney-General Gali Baharav-Miara, and State Comptroller Matanyahu Englman, MQG called on the Finance Ministry to “publish clarifications to the arrangement that was made, the alternatives that were examined, and the implications on state coffers.”
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In an accompanying statement MQG said, “The new arrangement, the details of which have not yet been officially published, which is supposed to include the disconnection of the educational networks from the government’s Merkava system, the opening of separate bank accounts, and the hiring of accountants to supervise budgetary management, may even make the situation worse.”
MQG listed what it viewed as five problems in the arrangement:
First was “absence of substantive reform.” According to MQG, “The arrangement does not include significant structural or financial changes in the conduct of the networks.”
Second was “continued unlimited funding.” MQG argued that “despite the repeated warnings of the accountant-general and the attorney-general, the arrangement continues to allow funding of the private party-political educational networks, without a complete disconnection from the government budgets and without a plan to repay their debts.”
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MQG described the third problem as “increasing the state’s responsibility without compensation.” According to MQG, under the new arrangement, “The state takes on additional responsibility for the conduct of the networks, without requiring them to act in accordance with the rules of proper administration and the curricula of the ministry of education.”
The fourth problem, according to MQG, was a “lack of transparency,” as “the details of the arrangement and its consequences for the public have not been officially published, which raises serious concerns about the integrity of the process.”
Finally, MQG pointed out that Biton himself was the former manager of Bnei Yosef, and therefore was caught in a conflict of interest and should not have been involved in the negotiations.
MQG proposed the following steps:
“1. Full and transparent publication of the details of the arrangement that is being drawn up; 2. The establishment of a government inquiry committee to examine the set of relations between the state and the party-political education networks; 3. Re-examination of the funding model, incorporating the principles of transparency, equality and good governance; 4. Preventing the involvement of those who have a conflict of interest in the decision-making process; and 5. Creating a long-term plan to put the networks on a proper footing and to implement uniform standards throughout the education system.”
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Gafni’s office said in response to a Jerusalem Post query that it “did not know” about the issue. The prime minister’s office did not respond.
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
