next steps

After state delays timeline, anxious Michigan schools must wait until next year to learn their fate

PHOTO: Alan Petersime

Michigan schools waiting anxiously for word on whether they’ll be shut down next year will have to wait a little longer.

State officials initially planned to release their annual state rankings, which will be used to decide which schools will be forced to close, by the end of this month. Now, they’re saying the rankings — and any closure decisions — won’t come until at least January.

The delay means that schools at risk of closure won’t be getting bad news before the winter vacation. But it also keeps the schools in the dark longer about whether they could face sanctions, including closure — giving communities less time to prepare for the possibility that students might have to find new schools for next year.

A spokesman for the Michigan Department of Education, which produces the so-called “top-to-bottom” list based on test scores, said the new timeline is an effort to coordinate with the state School Reform office, which will make the decision on school closings.

The reform office said last summer that it would shut down schools that appeared in the bottom 5 percent of state rankings for three or more years, except in cases where closure would create a hardship for students.

That announcement was surprising because schools had been told they wouldn’t be held accountable for low scores during the first years of the new M-STEP exam.

The change came after lawmakers approved legislation designed to resuscitate the debt-saddled Detroit Public Schools. The legislation included a requirement that all Detroit schools — district and charter — with three years at the bottom of the rankings be closed.

The reform office said last summer that it would apply the same rules to schools across the state.

Kurt Weiss, a spokesman for the reform office, said the office “is continuing its review of the data” and has not yet “completed recommendations for how to address chronically failing schools.”

Still not clear is how schools in Detroit’s main school district will be handled, since Gov. Snyder has said he is reviewing two different legal opinions about whether the fact that the Detroit Public Schools are now officially a new district called the Detroit Public Schools Community District requires the state to wait three years before closing down its low-performing schools.

“The goal remains to give kids in Michigan – regardless of where they attend school – a quality education, but no final determinations have been made around what actions might be taken,” Weiss said.

Teachers stiffed

Detroit charter school teachers get tough news: Their school was in debt so they won’t get paid

PHOTO: Erin Einhorn
Matchbook Learning CEO Sajan George notified teachers at the now-closed Michigan Technical Academy that they won't get their summer paychecks.

Furious teachers at a recently shuttered Detroit charter school were notified Wednesday that they won’t be paid thousands of dollars they earned during the last school year.

Teachers at the Michigan Technical Academy had contracts that required the school to pay them through the summer for work they did during the school year. But the school’s management company, Matchbook Learning, alerted teachers in an email Wednesday that the money would instead go to pay off the school’s debts.

“Last Friday, Matchbook Learning became aware that the holders of MTA’s outstanding bond debt are refusing to allow use of funds for any summer payroll and instead, are requiring that any available funds be used toward payment of the bond debt,” Matchbook’s CEO Sajan George told teachers in the email. “We are disappointed and deeply saddened by this development because this means funds will not be there for July or August payroll.”

The school, which Chalkbeat wrote about last fall, closed its doors forever last month when Central Michigan University revoked the school’s charter citing academic and financial difficulties.

The school was one seven Detroit area charter schools that closed this year including five that had been overseen by Central Michigan.

Matchbook Learning, which had been running the school since 2015, had a contract with the school’s board that expired on June 30, George wrote in the email to teachers.

“Matchbook Learning never received and does not expect to receive any funds from the MTA Board, CMU or the bondholders to fund payment of any July or August payroll — meaning Matchbook Learning is not in a position to make payment to you,” George wrote. “Unfortunately, the closing of MTA has had a severe effect on everyone involved. We thank you for your time at MTA, sympathize and empathize with your position, and wish you the best in your future endeavors.”

George told Chalkbeat that his New Jersey-based school management organization, a non-profit, hasn’t been paid by the school’s board since February due to lack of funds. Matchbook is owed what he characterized as “a couple hundred thousand dollars.”

He said he knew Matchbook wouldn’t be paid for the last few months of the school year but that the organization stayed until the last day of class in June.

“If we left, the employees wouldn’t get paid and the school would shut down,” George said.

He said Matchbook asked the school board to approve payments that would enable the teachers to get paid in July and August. The board knew it would receive payments from the state in July and August and authorized a portion of that money to go toward paying teachers. But the bondholders are priority creditors, meaning they get paid first. The bondholders have refused to allow money to go to the teachers, George said. 

“Ultimately it wasn’t in our control,” he said.

The school borrowed about $16 million for building improvements when it first opened and only about $1 million had been paid off when the school closed last month, George said. Had the school stayed open, it would have continued to receive money from the state that could have been used to make payments on the debt. Without money coming in, the creditors moved to collect as much as they could. 

Angry teachers say they’re contacting lawyers in hopes of trying to collect what they’re owed.

“That’s money that we’ve all worked for,” said Maeve Rochon, a kindergarten teacher who said she’s owed around $5,000. “That’s for time we spent in those kids’ lives, doing our jobs. We all stuck it out to the end and now you’re telling us the money we worked for, we’re not going to get?”

Janelle Brzezinski, a spokeswoman for the Governor John Engler Center for Charter Schools at Central Michigan University, said there’s not much the university can do to help the teachers.

“Some creditors of Michigan Technical Academy have ordered an acceleration of payments due on Academy loans,” Brzezinski wrote in an e-mailed statement. “The acceleration of payments means that the Academy received no funds from the scheduled July 20, 2017 state school aid payment sent by the state of Michigan. The Academy board and the Center had been working with the Michigan Department of Education and Michigan Department of Treasury officials to ensure continued flow of state aid through July and August to allow the Academy to meet payroll and other outstanding obligations. Unfortunately, the decision of the creditors to accelerate payments under the Academy loans means that there will not be sufficient funds for the Academy to process the July 31, 2017 scheduled payroll and there may not be sufficient funds to meet the August payrolls.”

Brzezinski encouraged teachers to contact Matchbook or the Wage and Hour Division of the Michigan Department of Licensing and Regulatory Affairs.

home sweet home

‘Finally! Something useful’ or a dangerous mistake? Detroiters respond to city’s housing deal for teachers

PHOTO: Detroit Land Bank Authority
This home on Harvard Road was up for auction the week after Detroit announced a half-off-on-city-owned housing deal for teachers.

Friday’s announcement that all Detroit school employees — whether they work for district, charter, or parochial schools — will get a 50 percent discount on houses auctioned through the Detroit Land Bank Authority stirred a lot of discussion.

Some of our commenters on Facebook had high hopes for the deal:

But one commenter wondered if it’s the city of Detroit that’s actually getting the best deal, not the employees — or other people seeking to buy homes in the city:

And others argued that people who already live in Detroit won’t benefit from this deal:

Still, some readers appear to be ready to move — and have even picked homes to bid on (though not necessarily from the Land Bank Authority)!