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SPCSA elevates Southern Nevada Trades High School to financial notice of breach after revised FY2025 ratings
Summary
SPCSA adopted revised FY2025 financial performance ratings for Southern Nevada Trades High School and elevated the school from a notice of concern to a notice of breach due to constrained liquidity, ongoing operating losses, and liabilities exceeding assets; the board voted to require ongoing financial oversight.
The State Public Charter School Authority adopted revised fiscal year 2025 financial performance ratings for Southern Nevada Trades High School and elevated the school’s status from a notice of concern to a notice of breach on Tuesday, triggering increased oversight and monthly financial monitoring by SPCSA staff.
Dr. Katie Broughton, SPCSA director of authorizing, said the school’s FY2025 ratings reflect declining metrics and financial strain: constrained liquidity, ongoing operating losses, and a balance sheet where liabilities exceed assets. Staff also noted a calculation error in a previously adopted rating for total margin; that error was corrected and changed a metric from “falls far below standard” to “does not meet standard.”
Because the school’s lease consumes a large portion of revenue and because financial viability remains dependent on enrollment growth and philanthropic support, SPCSA staff recommended elevating the school’s financial notice of concern to a notice of breach and instituting ongoing financial oversight. The proposed motion included adopting the updated fiscal year 2025 financial performance results.
Brett Willis, chair of the Southern Nevada Trades High School board, urged the SPCSA to retain the notice of concern rather than elevate to breach, saying the school had implemented significant changes this year and leadership expected improved metrics in FY2026. Willis said the school and staff both expect to see improvement. ‘‘We kindly ask that you consider the adjustments we've made this year,’’ Willis said.
Member Holmes Sutton moved to adopt the updated FY2025 ratings and elevate the school to a notice of breach or require ongoing financial oversight; Member Richards seconded and the motion carried unanimously.
Action taken: motion to adopt updated FY2025 financial performance results for Southern Nevada Trades High School and elevate the school to a notice of breach, initiating monthly monitoring; mover: Member Holmes Sutton; second: Member Richards; outcome: approved (unanimous).
Next steps: SPCSA staff will conduct monthly monitoring of the school's finances and report back to the board as specified in staff materials.
