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For the second year, charter schools are scrambling to cover budget gaps that city school leaders blame on the City Council.
From now until June, Memphis City Schools is withholding $500 per student per month from the charter schools. Some will have to take loans to meet payroll. Others wonder if they can stay open.
"Sadly, this is completely unnecessary," said Matt Throckmorton, head of the Tennessee Charter School Association. "The message coming across is that charters are being engaged to use their political clout to resolve the issue."
MCS pays the charters their share of city and state funding in 10 payments. Its leaders say it no longer can afford to advance the money.
At Memphis Academy of Science and Engineering, the largest charter school, funding for March dropped from $643,466 to $321,820, according to an MCS spreadsheet.
"We'll go until we run out of money. We can't change at this stage of the game," said Harold Wingood, executive director. "We're looking into alternatives lines of credit and short-term loans. ... There is no clear course we have mapped out. We'll take it one day at a time and look at our options each day."
About 6,300 students, 6 percent of city school students, attend charter schools.
City finance director Roland McElrath says the city is committed to paying the $78 million it owes by June 30.
"In excess of $21 million has already been disbursed," he said, noting that the city contribution is less than 9 percent of the MCS budget.
School board attorney Dorsey Hopson says the city made the same promise last year and was still paying in October.
"We hear them and hope they pay. All year long, we have essentially advanced the charter schools money based on promises that the city was going to pay," Hopson said. "Now, we have reached a critical juncture where our $49 million in reserves is less $57 million the city owes us for this fiscal year."
If the district has to use the reserve, it will be out of cash by June 30, Hopson said.
Rev. Anthony Anderson, head of Memphis Business Academy, is revving up a campaign to register 30,000 new voters, hoping to replace some council members.
"You are going to see major outcry," Anderson said. "As soon as we finish TCAP tests, I promise you the fight will be intensified 10 times."
On top of the financial worries, several charters, including MASE, missed math requirements in state TCAP tests last spring. MASE posted 4 percent proficiency against a 20 percent benchmark. This year, the standard rises to 40 percent.
Charters missing performance marks for two consecutive years can be closed.
The tests start April 11.
"Teachers are using their sick days and personal time," Throckmorton said. "As near as we can tell, they are looking for jobs.
"It is impossible to be fully engaged in instruction when you have this panic setting in whether or not you will be receiving a paycheck."