Gregory Weatherspoon

Lindsey Smith / Michigan Radio

Mosaica Education, the charter company running Muskegon Heights schools, only has a few days left in its contract. But the district still has lots to do to get everything in place for the fall.

Last night the district hired its superintendent at a special board meeting. But it still has to finalize agreements with a staffing agency to hire all of its teachers and few other vendors by Monday.

This summer it has to finish building repairs, and rearrange all the grade levels because an elementary school building will close.

Lindsey Smith / Michigan Radio

Muskegon Heights schools’ emergency manager thinks a new setup to run the district next year will be more economical than hiring another charter company.

For the last two years, a for-profit company ran Muskegon Heights schools. But it ran into cash flow problems. The state had to give the district two cash advances this spring to pay staff and give it an emergency loan to keep schools open through the end of the school year.  

“We are in a survival mode,” Muskegon Heights schools emergency manager Gregory Weatherspoon said at a press conference Tuesday. “We will go for whatever will work and save us money and this was a cost savings to us,” he said.

MichigansChildren / YouTube

State Superintendent Mike Flanagan says the consequences of turning entire school districts over to for-profit charter school companies deserves more consideration from state lawmakers.

Flanagan told a state panel last week it’s not clear if the Muskegon Heights school district, or the for-profit charter company that ran it the last two years, will face any consequences for running up a deficit big enough to require an emergency loan worth $1.4 million and two cash advances to keep schools open through June. It’s unclear exactly what the deficit is for the 2013-2014 school year.

The Muskegon Heights school district is now looking for a new operator. That’s after the district and its emergency manager agreed to end its contract with Mosaica Education Inc. when the company couldn’t turn a profit.

“Now that (Mosaica) is leaving, they pretty much told us they’re not going to do (the district’s) deficit elimination plan. To follow up on that, we should wait for the new management company and deal with them,” Dan Hanrahan, Michigan Department of Education’s director of state aid and school finance, told the panel.

Steve Carmody / Michigan Radio

Despite a previous state takeover, a slew of surprise costs and a dramatic drop in student enrollment have led to a new budget deficit for the public school district in Highland Park.

A multi-million dollar deficit prompted a state takeover of Highland Park Public Schools in 2012. The state appointed emergency manager restructured the district’s deficit into long-term debt with over $7 million in emergency loans from the state.

The manager created a new charter school district to educate students. In 2012  The Leona Group LLC., a charter company,was hired to run the entire district for an annual fee of $780,000.

But now the district is running a deficit again.

Lindsey Smith / Michigan Radio

The Muskegon Heights charter school district owes the company that’s operating its schools a little more than $2 million. That’s according to Mosaica Education’s CEO. 

The new charter district was created in Muskegon Heights when severe cash problems prompted a state takeover of the traditional school district by an emergency manager in 2012. Now the charter district is having cash flow problems of its own.

Lindsey Smith / Michigan Radio

State officials and the Muskegon Heights School Board are trying to figure out how they’ll be able to pay staff for the rest of this school year, although the district’s emergency manager is “confident” they’ll work something out.

The former emergency manager of two Michigan school districts is moving onto help Pontiac schools.

Donald Weatherspoon was the emergency manager of the Highland Park and Muskegon Heights schools.

Now, he’s a consent agreement consultant for the Pontiac schools. The Pontiac school board chose to enter a consent agreement after a state review found the district was in "fiscal stress."