Board declines to reauthorize San Francisco Flex Academy, citing financial dependence on K12 arrangements and enrollment shortfalls

The San Francisco Board of Education voted to deny the renewal petition of San Francisco Flex Academy after staff and budget committee members flagged fiscal concerns.

Flex staff, students and families described the school's blended learning model and neighborhood outreach since relocating to the Gloria R. Davis site, citing strong student engagement and community partnerships. Student speakers and staff said the program offers individualized pacing, enrichment and technology-rich coursework.

Budget committee members and Commissioners who opposed renewal focused on the school's financial ties to K12 (a for-profit curriculum vendor). The transcript records committee concerns that the school has received "balanced budget credits" from K12 and carried cumulative credits of approximately $5.7 million through June 30, 2014. Committee members said that structure can mask recurring deficits and leaves the school without standard unrestricted reserves for economic uncertainties.

Flex leaders said the move to the Prop 39 facility at Gloria R. Davis reduces rent obligations and that the school is working to increase its in-district enrollment — at the time of the hearing they reported roughly 92 students enrolled with about 58 domiciled in San Francisco. Board members pointed to a projected $700,000 shortfall in the 2015'16 budget scenario and debated whether the K12 arrangement should be counted as a sustainable revenue source.

After debate the board voted to deny the renewal, with commissioners citing fiduciary risk and reliance on a vendor'provided credit structure as primary reasons.