YOU WON'T READ THIS IN THE BAY CITY TIMES!
As I revealed on October 29, the Bay City Academy's 2015 financial report showed the charter school had a significant operating deficit in 2015, resulting in a cash flow shortage. As of June 30, 2015, the Academy's current liabilities exceeded its current assets by $1,374,477.
But you wouldn't know that by looking at the Academy's website...or in the Bay City Times.
Hell, the report (received by the Michigan Department of Education at 12:46pm on October 26, 2015) still has not been added to the (throat-clearing cough) “Transparency Reporting” tab on the Bay City Academy's website!
But, like the aliens Mulder and Scully chased in “The X-Files”, it's out there.
The Bay City Academy is among 171 school districts and charter schools affected by early financial warning legislation signed into law in early July by Governor Rick Snyder. The package, Public Acts 109-116, combines more financial reporting, the expansion of deficit elimination plan programs, the creation of enhanced deficit elimination plans and also changes how the Michigan Department of Education and Treasury Department can withhold state aid payments to school districts.
The bills also:
-Require school districts, intermediate school districts and charter schools with reserve funds of less than 5 percent of their general fund budget to send their budgetary assumptions to the state.
-Change the financial authority in charge of districts with deficit elimination plans from the state superintendent to the state treasurer.
-Require districts going into deficit to tell the treasurer and state superintendent, send an amended budget to the state and intermediate school district, allow the Michigan Department of Education to withhold state school aid payments and allow the state superintendent to require deficit elimination plans to have an academic plan.
Most importantly, the law allows Michigan's Treasury department to withhold a portion or all of state school aid.
And while the Bay City Academy's 2015 financial report claimed a “plan of action” would be filed with the State of Michigan, there's absolutely no evidence a plan was ever developed and submitted for approval.
So what exactly is Brian Lynch's Mitten Educational Management doing to justify its $20,000 a month management fee?
“The district is not in deficit, therefore, no deficit elimination plan is in effect.”
Keep saying it, while you click your heels together three times.