SALT LAKE CITY — Amid concerns about low enrollments and financial viability, two public charter schools could be closed under action taken earlier this week by the Utah State Charter School Board.
The board has proposed the termination of St. George Academy, a college preparatory school for grades eight through 12, and Capstone Classical Academy in Pleasant View, Weber County, which serves students in grades six through 12 with a focus on classical arts and sciences.
Both schools may request a hearing to oppose the termination vote and present their plans to keep the schools open.
“Our desire is to see both schools continue to provide students with innovative educational opportunities that meet their individual needs,” said State Charter School Board Chairwoman Kristin Elinkowski.
“As a board, it is our responsibility to weigh that with their ability to remain financially viable, self-sufficient and in compliance with state and federal guidelines,” she said in a statement.
The State Charter School Board monitors charter schools for fidelity to their charters and compliance with school standards and regulation.
When schools fail to meet their charter agreements or are out of compliance with Utah State Board of Education rules or state law, the State Charter School Board can revoke charters or close schools after a hearing process outlined in state statute.
St. George Academy’s eventual enrollment was expected to be 550 students, according to the school’s charter. As of Oct. 1, its enrollment was 252 students, school officials said.
Charter school board staff also pointed out concerns about the school’s apparent reliance on a $190,000 loan from a member of the school’s board of directors and sale of land that generated $140,000. Still, the school’s unrestricted cash on hand is problematic, which has ranged from six to 11 days’ worth in recent months. The board wants schools to have 30 days of unrestricted funds on hand, officials said.
R. Neil Walter, board president of St. George Academy, said the school plans to appeal the State Charter School Board’s decision.
“St. George Academy was surprised at the State Charter School Board’s action on Thursday. We have never received any form of formal warning, probation or notice that the State Charter School Board might recommend closure until yesterday,” Walter said in an email response to questions.
Walter said the school’s financial condition has improved each year since its opening.
“Cash reserves are improving, enrollment is improving, and student outcomes are improving. We have exceptional graduation rates and 90% of our graduating students are being admitted to a higher education programs post high school. A board member did make a loan to the school. The school does not have access to bank financing or a line of credit. At the time, it was a better option than reducing faculty and services at the school. The school is on stronger financial footing than when the loan was made,” he wrote.
Walter notes that St. George Academy provides “a critical need in the community. We believe it will continue to grow and become financially stronger if given the opportunity.”
Capstone Classical Academy opened the 2018-19 academic year, starting with students in grades six through 10. According to its original charter, the school would open with an enrollment of 360 students and scale up to 700 students by its third year.
Its current enrollment is 177 students, although another seven students may be enrolled soon, a school official told the board.
State School Board staff also raised concerns about the school’s financial status, noting the school could be $450,000 in the red by the end of the school year.
Capstone Classical Academy founder and director Susan Goers said the State Charter School Board’s action was startling.
“To say that our board was totally shocked is an understatement. We have a 100% graduation rate, our curriculum is rigorous, our scholars have high scores and are successful. It is common to have low enrollment in a charter school for the first three years until people grab hold of the vision and mission and decide to be a part of it,” Goers wrote in an email response for comment.
The academy is the only school in Utah “that teaches what we do, how we do. There is no other school anywhere close to our program. This motion made yesterday to suggest termination of a charter school after its first year is unprecedented. Of course we will request a hearing and of course we will bring our case,” she said.
Elinkowski, in a statement, said the State Charter School Board’s recommendations and determinations are based on each charter’s individual circumstances using standards outlined for all charter schools.