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TEA questions RestoreTech on startup funding; applicants cite United Way contract and private commitments
Summary
TEA pressed Restore Education on startup funding during the capacity interview. Applicants said a five-year United Way contract will provide onsite supportive services, at least one local foundation committed initial startup dollars and several private funders are in discussions; the application projects a small operating surplus in year one and a larger surplus in year two.
TEA staff asked detailed finance questions about RestoreTech's startup and early operations, seeking clarity on funder commitments and budget assumptions.
Restore Education leaders said much of year-0 operational expense is expected to be covered by Restore Education and private funders. Kelly Rhodes told the panel the organization recently secured a five-year contract with United Way to fund supportive services such as navigators and social workers who can be on-site to assist students with housing, food and transportation needs. "We just received a a new 5 year contract from United Way that covers a lot of the support services for our students," Rhodes said.
Applicants also reported an initial letter of commitment from a local foundation to fund startup costs for the first two years and additional private funder conversations underway. Alexandra Wood emphasized there are additional private funders identified and that at least one other commitment is included in the current budget.
Budget assumptions and contingency: TEA staff noted the application projects an operating income of just over $10,000 in year one and $233,000 in year two and asked the applicants to explain that swing. The RestoreTech team said they used conservative fundraising estimates for year one, built contingencies into year-two assumptions and plan board oversight to adjust budgets as enrollment and fundraising materialize.
TEA next steps: TEA told applicants it may request additional financial documentation if the application advances; RestoreTech said it is prepared to share letters of commitment and supporting documents on request.
