Fiscal Intelligence

Fiscal analysis that enables educators, small business owners, and community organizers to make informed decisions.

Slimming the College-Tuition Beast by Judah Bellin, City Journal Summer 2014

Slimming the College-Tuition Beast by Judah Bellin, City Journal Summer 2014.

Budget and Economic Outlook 2014 to 2024__CBO

Academies Financial Handbook_2014 (UK)

Closure of Charter Schools

Primary Reasons Why Charter Schools Are Closing in Washington, D.C.

  School Chartering Authority at
Opening
Chartering Authority at Closing Year
Opened
Year
Closed
Revocation or
Relinquished
Reason
1 High Road School and Alternative Learning Center PCS BOE BOE Never
Opened
1996    
2 Marcus Garvey BOE BOE 1996 1998 Revoked Management deficiencies
3 Young Technocrats BOE BOE 1998 1999 Revoked Financial and management deficiencies
4 New Vistas BOE BOE 1999 1999 Revoked Financial and management deficiencies
5 Richard Milburn BOE BOE 1998 2002 Revoked Financial and management deficiencies
6 Techworld BOE BOE 1998 2002 Revoked Financial and management deficiencies
7 Mechanical Industrial Technical PCS BOE BOE Never
Opened
2003    
8 Auto Arts Academy
PCS
PCSB PCSB Never
Opened
2003 Never Opened  
9 Arts Explorer PCS BOE BOE Never
Opened
2004    
10 Village Learning
Center
BOE BOE 1998 2004 Revoked Financial and management deficiencies
11 World BOE BOE 1998 2002 Revoked Financial and management deficiencies
12 Academy for Renewal in Education (ARE) PCSB PCSB 1998 2003 Relinquished Voluntarily relinquished, due to issues surrounding effectiveness of special education program
13 Jos-Arz BOE BOE 2000 2006 Relinquished Voluntarily surrendered their charter after their five year review resulted in a 180 day probationary period
14 Colin L. Powell PCS
– First Petition
PCSB PCSB Never
Opened
2007    
15 SouthEast Academy PCSB PCSB 1999 2005 Revoked Failed to meet academic and governance standards upon its five year review
16 New School for Enterprise and Development PCSB PCSB 2000 2006 Revoked Failed to meet academic and governance standards upon its five year review
17 Sasha Bruce PCSB PCSB 2000 2006 Revoked Financial and management deficiencies
18 Phillips Academy
PCS
PCSB PCSB Never
Opened
2007    
19 Hope Academy PCSB PCSB 2007 2007 Relinquished Low enrollment and subsequent financial deficiencies
20 Washington
Academy
BOE PCSB 2005 2008 Relinquished Financial and management deficiencies
21 Tri Community PCSB PCSB 2001 2007 Relinquished Voluntarily relinquished charter after PCSB initiated revocation process, due to academic and governance deficiencies
22 Colin L. Powell PCS
– Second Petition
PCSB PCSB Never
Opened
2008    
23 City Lights BOE PCSB 2005 2009 Relinquished Financial and management deficiencies
24 Meld Evenstart
(MEI)
PCSB PCSB 2007 2009 Revoked Academic, governance and financial reasons
25 Barbara Jordan BOE PCSB 2002 2009 Relinquished Low enrollment leading to financial insolvency
26 Academia Bilingue de la Communidad (ABC) PCSB PCSB 2005 2009 Relinquished Low enrollment leading to financial insolvency
27 City Collegiate PCSB PCSB 2006 2010 Relinquished Low enrollment
28 Young America
Works
BOE PCSB 2004 2010 Revoked Financial, academic and management deficiencies
29 KAMIT PCS BOE PCSB 2000 2010 Revoked Academic reasons
30 ALTA PCS PCSB PCSB 2005 2010 Relinquished Voluntarily relinquished charter
31 Children’s Studio
PCS
BOE PCSB 1996 2010 Relinquished Voluntarily relinquished charter
32 Thea Bowman Preparatory Academy PCS PCSB PCSB 2008 Summer
2011
Relinquished Low enrollment
33 Nia Community
Public Charter
PCSB PCSB 2006 Summer
2011
Revoked Academic reasons
34 The School for Arts in Learning (SAIL) PCSB PCSB 1998 Summer
2011
Relinquished Financial reasons
35 IDEAL PCS – High School PCSB PCSB 1999 2011 Closed high school program Academic reasons
36 William E. DOAR PCS – high school program only PCSB PCSB 2004 2011 Closed high school program Academic reasons
37 Community Academy PCS – Rand campus BOE PCSB 2004 2012 Closed the
Rand campus
Academic reasons
38 Septima Clark PCSB PCSB 2006 Summer
2013
Relinquished Academic reasons – Merged with
Achievement Prep
39 Howard Road Academy PCS – Pennsylvania Avenue PCSB PCSB 2000 2013 Closing MLK and Penn. Ave Campuses. LEA Eliminating grades 1-8 Academic reasons
40 Howard Road Academy PCS – Martin Luther King Jr. Avenue Middle School PCSB PCSB 2000 2013 Closing MLK and Penn. Ave Campuses. LEA Eliminating grades 1-8 Academic reasons
41 Community Academy – middle school BOE PCSB 2004 2013 Closing the middle school Academic reasons
42 IDEA – middle school BOE PCSB 1998 2013 Closing the middle school Academic reasons
43 Imagine Southeast PCS PCSB PCSB 2008 2014 Relinquished Academic reasons — Democracy Prep to operate
44 Maya Middle PCS – Middle School PCSB PCSB 2008 2014 Closing the middle school  
45 Arts and Technology PCS PCSB PCSB 1999 2014 Revoked Academic reasons – KIPP DC to operate
46 Booker T Washington PCS BOE PCSB 1999 2014 Revoked Academic reasons
47 Community Academy PCS – Amos III BOE PCSB 1998 2014 Closing the middle school Academic reasons
48 Perry Street Preparatory – PCS (Upper School) PCSB PCSB 1998 2015 Closing the high school Academic reasons
49 Hospitality High PCS PCSB PCSB 1999 2015 Relinquished Academic reasons – DCPS to operate

What’s Wrong with the Unemployment Rate?

The Importance of Being in School

Rebuked Again by Steven Greenhut, City Journal 25 August 2014

Rebuked Again by Steven Greenhut, City Journal 25 August 2014.

When the Instructors Need Instructing by Sol Stern, City Journal 22 August 2014

When the Instructors Need Instructing by Sol Stern, City Journal 22 August 2014.

FINANCE AND GOVERNANCE: The critical role they play in the charter schools movement and its survival.

When people think about one of the most common reason/rationale for charter schools closure what immediately comes to mind is an instructional reason, however, what the most recent research points out to is a completely different story.  It turns out that an often overlooked area surfaces as a rationale for most of the charter school closures and that is financial mismanagement. Another factor that is usually mentioned is governance. Pondering a second over this, the financial reason makes a great deal of sense. The students drive the inflow of capital into the schools. Therefore, if enrollment falls substantially that can jeopardize the viability and sustainability of the school. We have seen this scenario played out in some of the New York State suburbs and throughout the nations where municipalities have been forced to close down numerous schools because of a decline in enrollment.

When the authorizers are making a decision to close a school (not renewed its charter), they do tend to weigh heavily the fiscal viability of the entity. If they consider it not to be a robust one, they likely move forward with the decision to shut down the school. A point of reference that is important to mention  is Washington, D.C., where 50% of the students attend charter schools. When one looks at the report  released by the District of Columbia Public Charter School Board (PCSB), more than 50% of the charter schools closed since 1996 have been due to financial mismanagement.   Although the rest of the school might not have been closed solely for financial management, this rationale was mentioned as one of the reasons for the decision.  This sheds some light on the importance of having strong financial procedures and a strong finance team with the background and skills needed to support and strengthen the viability and sustainability of the charter school movement.

Another factor that triggers the closure of the charter schools – one that people tend to overlook most of the time – is governance (Board of Trustees). Governance plays a vital and critical role in setting the strategic direction of the school when it comes to procedures, operations, and finance. If they are not doing what they have been chosen to do, which is governing, even if the school is doing well instructionallly the school will not be considered a viable and sustainable entity in the foreseeable future.

Given my professional experience in the education sector, I was not surprised by the findings presented by the research as to the importance of finance and governance. They do play a pivotal role in the viability and sustainability of any school. What keeps getting my attention on a daily basis is that in actuality, these two significance areas are usually overlooked and dismissed to a secondary, not strategic role.  The evidence clearly indicates that these two functions cannot continue to be ignored and must be fully understood in order to ensure that we are building stronger and fiscally viable schools.

See you next time,

Optimization with an Impact

  1. optimizationwithanimpact.com

Investigate * Educate * Optimize

Follow

Get every new post delivered to your Inbox.

Join 137 other followers