A Puna-based public charter school hopes to appease some of its recent financial problems by delaying payments — such as rent — until late July, after its first allocation of 2016-17 fiscal year per-pupil funding arrives.
Na Wai Ola’s landlord and other payment vendors have agreed to the delays, according to a financial update submitted this week to the state’s Public Charter School Commission.
Doing so would allow Na Wai Ola to end the year in the black, with a $51,000 cash year-end balance. Even without delaying payments, a revised cash flow forecast based on the latest “receipts and disbursements” now projects the school will end the year with an $11,300 cash balance, the update says.
The projection appears more promising than a report earlier this month, which showed Na Wai Ola could end the year with a deficit of more than $100,000, prompting “serious concerns” among commission staff about the school’s financial sustainability and its ability to make payroll through July 5.
In Hawaii, if a charter school does not make payroll, it automatically surrenders its charter.
The school told commissioners at a meeting Thursday it doesn’t intend for that to happen. According to the latest update, school staff even offered to donate their entire net pay from their June 20 paychecks to the school, should the cash balance warrant the need. Na Wai Ola is also dropping seventh grade next year to cut costs.
School staff also told commissioners they’re working to recruit community members for its governing board. Earlier this month, the commission issued a “Notice of Deficiency” to Na Wai Ola because four of its board’s seven members were either employees or vendors of the school. Law requires the board to be comprised of no more than one-third employees or vendors.
Recruiting governing board staff has been “an ongoing struggle,” Na Wai Ola parent representative Kiara Bianchi told commissioners Thursday, because of recent media coverage revealing the schools challenges.
A Tribune-Herald article published earlier this month revealed the school is under investigation by the state Ethics Commission for allegedly paying school employees $64,564 in salary advances between July 25, 2012, and Sept. 1, 2015. A second article the following week revealed its latest financial troubles.
“The negative news doesn’t really help (us recruit),” Bianchi said. “But on the other hand, we do have people coming in who would like to rise to the challenge and provide a service for kids who need it in this community.”
Na Wai Ola will also need to recruit a new director. Principal Dan Caluya announced earlier in the year plans to leave at the end of the year. Caluya told commissioners Thursday the school has a “very large waiting list” for the next school year.
“So even though we’ve had our challenges, our parents and community still believe this is the best (place) to send kids,” he said. “So I want to let the commission know the school is viable, and we still have a lot of folks who (want to) send their (kids here).”
