170
Lukens Drive · New
Castle, DE 19720
Telephone: (302)573-7760 ·
Facsimile: (302)472-0796
|
Steven
H. Quimby
School Leader
Steve.quimby@pcs.k12.de.us
|
April 9, 2013
Message to Students,
Teachers, and Parents
From Frank McIntosh, President Pencader HS Board of
Directors:
At our last board meeting we announced that there was a
distinct possibility that we might have to declare bankruptcy in accordance
with the laws of the State of Delaware.
This revolved around the fact that we did not have the money to pay the
teachers the deferred payments they earned.
Teachers work ten months per year but get their salary paid out over the
course of 12 months. It was these last
two months that we could not cover.
Under normal circumstances, we would have received an
allocation from the state on July 1 and could have used this money, in part, to
pay the teachers’ salaries. This
practice is not uncommon whether it is a school district or a charter school. Because our school was closed by the Department
of Education (DOE), we will not be receiving this allocation and thus do not
have the funds to pay the teachers.
This budget was submitted this summer to DOE and accepted,
even though they understood the deficiency.
Never the less, they allowed us to operate knowing that we could not pay
teacher salaries, if the school was closed.
They gave us a check mark on financial solvency in our “under review”
process which was a signal to the new board that at least that piece of our
operation was OK in the eyes of DOE.
Recently the Board was questioned
about what we did regarding the financial situation. It was suggested that we knew the situation
and did nothing. While the current board
had nothing to do with the budget, we did review the situation. It was clear to us that there was nothing we
could do other than keeping the school doors open. With careful management we had the funds to
complete the school year. By the time
the new board was in place (January 2013) there was practically nothing we
could do about the budget. Most expenses
were cast in stone, i.e. teachers’ salaries, busses, rent etc. The few expenses that were not locked in
would have little impact on the shortfall.
We have suggested forcefully to
the state that the moral imperative is for DOE or the state to fund the
remainder of the teachers’ salaries that they rightfully earned. Further, we indicated, that by doing so, the
students would be able to graduate from their own high school and that the
underclassmen would receive the credits they earned from their Pencader
classroom teachers so that they could be applied to their new high school.
The first answer from DOE was
there was no money available to address this issue and that it was our (the
board’s) responsibility to take care of the problem. This answer was unacceptable and we pushed
on. At the close of yesterday’s meeting
with DOE, they told us that there were some people they could talk to and would
do so. This was a welcome change in
attitude. We are waiting for their answer.
In the meantime, we met with a
bankruptcy attorney on Monday, April 8 and reviewed our existing options. We still do not know what we will do. Closing the school is a serious matter and we
do not take it lightly.
We have asked our accounting
people to review additional possibilities to better understand the financial
fallout from various scenarios. At this
time, we do not see closing the school on April 30th but it still
remains a possibility. It is likely that
we will have to close the school at some point after that but we do not yet
have all the data we need to make a decision.
I am aware that all of you are
anxious about the situation and are seeking clarity. You have all the information that I have at
the moment. We want to do what is best
for the students, teachers, and parents.
From this point forward I will give you a weekly update and sooner if
circumstances warrant.
Pencader Business and Finance
Charter High School does not discriminate in employment, admittance,
educational programs, services or activities based on race, color, national
origin, sex, age, or disability in accordance with state and Federal laws.
Questions about Title IX may be referred to: Richard Gesner, PENCADER BUSINESS AND FINANCE CHARTER HIGH
SCHOOL, 170 Lukens Drive, New Castle, DE 19720, Telephone
(302) 573-7760.