Saturday, April 6, 2013

Statesman: North Star Charter in Deep Financial Trouble

Posted By on Sat, Apr 6, 2013 at 3:00 PM

Parents of students at Meridian's North Star Charter School were sent letters from school officials Friday, assuring them that, "we will complete another successful school year." But parents also know that the Meridian School District has been issued a notice of defect, the first step toward the possible closure of the school.

In a copyrighted story in this morning's Idaho Statesman, reporter Cynthia Sewell details that North Star officials revealed this past week that "they don't have enough money to meet their April expenses and face a $640,000 shortfall by June."

Options, according to the Statesman, include restructuring debt (at best) or shuttering the charter (at worst), which would result in scattering the school's 620 elementary students and 300 secondary school students to other district schools.

North Star's lender, Wells Fargo Bank, reportedly sent a March 18 letter claiming that the school was unable "to manage its cash flow, and the 'last minute' notice of this large projected deficiency is of great concern to the bondholders."

In February, Garden City's DaVinci Charter School shut its doors and sold its equipment and furtniture due to financial problems.

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