The Echo

Pencader has two lenders who have approved them conditionally for a loan.  The condition?  Funding flowing from the state on July 1st.  DOE has previously informed Pencader that their funding will not flow on July 1 unless they can guarantee they have a loan.  The loan is contingent upon the July 1 funding.  The July 1 funding is contingent upon the loan.  The loan is contingent upon the state funding on July 1.  July 1 funding is contingent on the loan.  The loan on July 1, July 1 on the loan...

Scratching your head yet, or have you already rammed it into the brick wall???

There are lenders out there that believe that Pencader has a sustainable plan to pay them back, operate a school, and be free from financial problems.  At least one of these lenders loans money to the State of Delaware.  They have faith in Pencader.  Why is the state playing russian roulette with our children's futures?

Good evening!
In communications back and forth with legislators, etc. I don’t know if the horror of the timeline over two fiscal years has been addressed to you. It has made our situation even more difficult and although Reach Academy made that one of the 122 points in their complaint we felt it best not to sign on with them. However, let me just quickly tell you how we are impacted here: · Our public hearing is July 13 and the SBE does not meet again until July 21. That takes our issue into the new fiscal year.· We have two lenders who are very willing to help us, BSA Capital of New Jersey, and a private loan here in New Castle.· However, the lenders, rightfully, want assurance from the state that Pencader will be a school, even a school under probation, in the new fiscal year, so that they can be assured of repayment. DOE will not grant that. DOE has frozen our accounts so no current bills can be paid, and they are not depositing funds into our account on July 1 as is typically done.· Our new budget (designed by Bill Bentz of Innovative Schools, formerly with Colonial School District) has a very reasonable repayment structure built into it, something very affordable with all of the expenditure cuts we have made (close to $700,000 per year.)· We had hoped to get some donated money but that did not work out favorably.

We are instituting a Capital Campaign which will aid us not only in repayment but in building a solid financial base from which to work. We simply need to be given a year to prove that what we are doing is right and is workable. We did not create the problem but we have fixed it. The children of Pencader and their families should not be punished because of the real negligence of less than a handful of adults. Thank you for anything you can do for us. Listening is important!

Harrie Ellen Minnehan
President, Pencader Charter High School Board of Directors