Seized charter school's debt tops $5 million

[Hannah Bell]

ST. LOUIS — A downtown charter school so deeply in debt that it had to be taken over by the city school district late last month now owes nearly 100 creditors more than $5 million, according to school ledgers, invoices and claims filed in court.

Hundreds of delinquent bills totaling more than $1.6 million are stuffed into an accordion file inside the main offices of the Ethel Hedgeman Lyle Academy, at 1881 Pine Street — from cab companies and coffee vendors to landlords and lawyers.

In addition, four companies have sued the academy, alleging the school owes them over $4 million in unpaid services, fees and penalties. Paying off the debt, in full, would take half the school's $10 million annual budget.

"We're owed over $80,000," said Chuck Billings, an attorney for security company Hudson Services. "It's a big deal for a company our size."

http://www.stltoday.com/stltoday/news/stories.nsf/education/story/ABF105938531E01D8625772200032D43?OpenDocument


School district says they won't pay the bill; the PRIVATELY OWNED FINANCIAL MANAGEMENT COMPANY which managed the school's finances doesn't seem to be accountable.

do the creditors just get stiffed? does the district & its taxpayers just have to assume debts racked up by quasi-private entities? where'd all the money go?

Oh, look, for-profit charter school chain Imagine Schools is one of this school's creditors, & it's suing the school.


Seems to be a pattern:

In 2005, Thurgood Marshall Academy closed, with a midyear balance of $1.9 million. Before that, Westport Charter, in Kansas City, shut down, again with cash left over. State officials said they never learned what happened to the remaining money at either school.

[geckosfeet]

1. Another failed free enterprise project that the taxpayers will have to suck up.

[pgarrison]

2. That's a lot of money

Where was that money going?

[Usrename]

3. Privatize the profits, socialize the debt!

It's the American way!