Closings averted?

Michigan school closures are off for now — as long as districts agree to partner with the state to improve

The 38 Michigan schools that were threatened with closure in January could now have a way to stay open.

State superintendent Brian Whiston sent letters this week to eight school districts that have schools on the closure list inviting them to participate in a “partnership” to fix the schools instead of shutting them down. 

“Once an agreement is reached,” the letter says, “The School Reform Office (SRO)  has agreed to delay any next level of accountability actions in order to give the Partnership Model an  opportunity to be successful.”

A spokesman for the state education department said the eight districts that got the letter were Benton Harbor, Bridgeport-Spaulding, Kalamazoo, Muskegon Heights, Pontiac, River Rouge, Saginaw and the Detroit Public School Community School District.

Also receiving a letter was the charter school office at Central Michigan University, which oversees Detroit’s Michigan Technical Academy. The charter school got a new principal and curriculum in 2015 but was put on the closure list based on the results of tests taken before the new management arrived.

The 38 schools were identified for closure because they fell in the bottom five percent of Michigan schools in 2014, 2015 and 2016.

The letter that went to the Detroit schools included both the 16 schools on the list that are currently part of the city district as well as the eight schools that are now in the state-run Education Achievement Authority, the education department spokesman said. The EAA schools  are expected to return to the district this summer.

Detroit schools advocates had argued that Detroit schools should be spared the closure ax because the district was just returned to a newly elected school board in January. The new board had vowed to sue if the closures went forward.

Here’s a copy of the letter the districts received:

 

 

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)!