| BERKELEY UNIFIED SCHOOL DISTRICT TO: Board of Education
FROM: Pauline Follansbee, Interim Assistant Superintendent, Business Services
PRESENTER: Pauline Follansbee, Interim Assistant Superintendent, Business Services
DATE: April 17, 2018
SUBJECT: REALM Charter School's Request for Material Revision PURPOSE:
To evaluate REALM High School’s request for material revision to their charter. BACKGROUND:
On February 23, 2018, REALM submitted a request for a material revision to the REALM High School charter, which seeks to consolidate the two schools by adding the Middle School program to the existing High School charter, thereby creating a combined REALM Charter School serving grades 6-12 under a single charter petition. At the April 11 Board meeting, a public hearing was held and staff presented REALM's material revision request. REALM’s Executive Director was also present and provided clarifying statements and explanations regarding the material revision. Legal counsel and staff have been tasked with reviewing the revised charter petition and recommending to the Board to either approve or deny the revised petition. RECOMMENDATION/QUESTIONS FOR THE BOARD:
Will REALM be in a better position by combining a fiscally challenged Middle School with an independently fiscally viable High School? Following is a summary of the strengths and weaknesses of the request for material revision: Strengths:
The consolidation of the REALM Middle School into the REALM High School charter would result in the high school, which is in a better financial position than the middle school, absorbing the expenses of operating the middle school. Weaknesses:
Under the proposed material revision, the cash flow projections supplied by the Charter, using less conservative and unsubstantiated growth assumptions and related revenue, reflect negative cash balances for most of the next two years. The proposed material revision is premised upon significant enrollment increases, which is contrary to the downward trajectory in enrollment over the past 3 years. Modeling the proposed material revision with the consolidation of the middle and high schools with no increase in enrollment would result in negative ending fund balances through the end of the 2019-2020 school year, leaving the charter school in a precarious financial position. REALM is requesting this material revision in an effort to address concerns over the middle school’s negative ending deficit in the past two school years. REALM believes that consolidating the currently separate middle and high schools into a single grades 6-12 charter school would produce a more fiscally sustainable school budget and lead to a positive ending fund balance. While the District agrees with this assessment, unless there is an increase in enrollment and attendance, REALM High School will not be fiscally viable. NEXT STEPS:
The Board will consider whether to approve or deny the material revision. The Board’s decision is final. REALM High School does not have the right to appeal the Board's decision to the County Board or the State Board of Education. If the Board approves the petition for the material revision, there would be no need to proceed with REALM Middle School’s Notice of Violation. FISCAL IMPACT:
There is no change to the District’s financial position. RELATED PAST BOARD ITEMS:
11/04/15-12.1. Charter Petition Renewals for REALM Middle School and REALM High School 04/11/19 - 14. Public Hearing for REALM Charter School's Request for Material Revision ATTACHMENTS:
Attached is staff’s report regarding REALM High School request for material revision
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