}

Saturday, November 14, 2015

'DEF' JAM: Steven Ingersoll's Bay City Academy Has Deficit Fund Balance; Subject To Michigan's "Early Financial Warning" Law. But Where Is The Deficit Elimination Plan? Without Plan, State Could Yank Funding From Staggering Charter School.



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.



6 comments:

  1. It seems the current BCA management company and Board of Education are putting their heads in "IVL" sand and thinking/seeing that everything will be ok. And to deceive the staff, parents, students, not to mention the taxpayers, by not letting them know is hogwash as they are only shirking responsibility and asking for more funds to help them climb out of the bottom of the barrel with their test scores. Maybe Brian Lynch's Mitten Educational Management Company has been taking financial guidance from the Ingersoll/Noss team to line his own pockets and have the illusion that everything is going to be ok?

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  2. The fact that the Bay City Times is button lipped on this matter is a disservice to the people in this community. You have to wonder what kind of spin the administration and board members of BCA are giving the parents and staff. Because the newspaper isn't writing about it they are probably in the dark as to the tales these guys are spinning. Business as usual, hey wait a minute, I thought it was a school for children but alas it is really just a money laundering scam.

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    1. If it were a regular school district, it would probably be reported on (maybe even front page depending on other global events). TV media should also be investigating this and reporting on it, even if only once and very briefly. And incidentally, I'm not a teacher who is making this comment; just your everyday taxpayer.

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    2. I can tell you for certain that the staff and parents are told, if anything, half truths and flat out lies. The fact that the school is operating at a deficit was not told to staff, but not surprising. They buy everything because that school has nothing, not even enough textbooks for 1 class. Word gets around that the climate of that school is depressing and even the powers that be have noticed and have been asking how they can improve staff morale, which is a joke. The staff has been telling them for years how to fix things, starting with basic teaching supplies and competent administration, but of course they don't listen.

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    3. How sad, and unfortunately how true. Good people will hopefully find other work in education or elsewhere. Let the feds, state close the school after the feds repossess Ingersoll's assets (whatever there are of them). Doubt that Noss and his son-in-law will be able to buy the Madison Arts and Farragut buildings.

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