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Wednesday, June 13, 2018

GRAND TRAVERSE ACADEMY SHOWS SEVERAL TEACHERS THE DOOR? Indeed.com Postings Indicate An Early June Schoolhouse Cleaning

Although charter schools don't call it firing when teachers are not given a contract to return, it appears the annual school year-end event culled roughly five teachers from the Grand Traverse Academy herd.

In addition to replacing a longtime music teacher who was promoted to a Secondary Principal spot at the Traverse City charter school, postings on Indeed.com indicate multiple openings, including Special Education, Spanish, Math and Science.

Even after four budget revisions during this fiscal year, the Grand Traverse Academy board is still facing serious financial issues, previously detailed on this blog: Financial Kinks In The State Firehouse, Setting Sail On A Sea Of Red Ink and Cold Spring, No Harbor.

After years of utilizing intentionally misleading financial projections to hide the Grand Traverse Academy's inability to maintain the minimum reserves covenant legally required by its $16.2 million 2007 municipal bond, the charter school's board is facing the likely possibility of another budget deficit, fueled in part by the refinancing required by an August 2018 $1,521,277 balloon payment on a $2,330,00 PNC Bank loan.

However, the board has apparently opted not to file FY 2017/2018 third-quarter financial statements issued in early May on the Municipal Securities Rulemaking Board's municipal bond disclosure data site, EMMA, making it impossible to determine whether or not the negative net income trend from the GTA's first two quarters continues.

As of December 31, 2017, the school had a -$105,151 negative net income, and projected total equity at $86,212.

And that was an improvement over an even more negative 1st quarter, with its -$467,998 negative net income.

On October 26, 2017, the Traverse City Record-Eagle quoted GTA accountant Steve Peacock, stating “an existing bond issue also requires GTA to keep its general fund balance at about $700,000. Those reserves – pegged to rise this year to $191,000 – should grow or officials risk bondholders demanding new management, he said.” 

Like they say, follow the money.

1 comment:

  1. As a parent, I am pulling my kids from GTA. Not only did the administration let some of the best teachers go, my daughters favorite teacher left for TCAPs. The teachers were the reason I took my kids there and now a lot of them are leaving.