Commission flags financial risks and academic underperformance; recommends level‑two intervention for Nashville Collegiate Prep

Commission staff on April 16 presented a portfolio financial update and an interim review that signaled both fiscal and academic risks at specific charter schools, and recommended stepped oversight for Nashville Collegiate Prep.

Beth Figereroa, director of authorizing, told the School Performance & Accountability Committee that the commission’s financial framework draws on nationally‑normed indicators applied to audited statements. She said the overwhelming majority of schools performed well: "the vast majority of our schools — 15 out of 17 schools for the 24‑25 fiscal year — earned a rating of meets standard." Two schools, Nashville Collegiate Prep and Rutherford Collegiate Prep, were identified as "falls far below" on sustainability metrics largely because facility debts exceed assets while the schools expand facilities and enrollment.

Why it matters: a 'falls far below' finding signals long‑term sustainability risk (debt burdens, debt service coverage) even when near‑term liquidity is sufficient; staff said audits were clean for the two schools but that long‑term plans are required as facilities and debt create multi‑year obligations.

Interim review and academic concerns: Deputy Director Maggie Lund reviewed the Nashville Collegiate Prep interim report and site‑visit findings. The interim review concluded the school is off track for renewal academically: cumulative academic performance and service to special populations were identified as areas of concern, with math performance lagging despite recent ELA gains. Lund summarized operational and retention metrics that undercut academic stability: the school’s student retention (students remaining enrolled) fell from 71% (2022–23) to about 66% (2024–25), chronic absenteeism rose to roughly 27% in 24–25, and teacher retention was reported at about 48%.

Staff and commissioners discussed where to place Nashville Collegiate Prep in the commission’s intervention framework. Lund said staff had shared the draft interim review with the school, conducted a site visit and follow‑up meetings with the charter management organization, and recommended a level‑two intervention: the school would prepare a corrective action plan, submit bimonthly progress updates to staff, and participate in frequent check‑ins to monitor progress on chronic absenteeism, student attrition, teacher retention, academic program delivery and cumulative academic trends.

Commissioners pressed for data that would support remediation (exit interview themes, licensing status of teachers, and comparative outcomes for students who remain in the model). Lund and staff said the school is already implementing plans and that the level‑two notice of deficiency is intended to formalize more regular oversight rather than move directly to probation.

Probationary and turnaround activity: staff also updated the committee on two schools already on probation for academic underperformance. Lester Prep completed a comprehensive needs assessment and submitted a turnaround budget that staff said the commission and TDOE approved; Wooddale Middle School (tier‑2) contracted Instruction Partners as the turnaround expert and will receive state turnaround funds (staff cited approximately $400,000 allocated for FY27 and said the consultant contract with Instruction Partners is about $65,000). Staff said probationary and turnaround activities will proceed in coordination with the Department of Education and that they will report progress at future committee meetings.

What happened next: staff recommended (and commissioners signaled support for) a level‑two notice of deficiency for Nashville Collegiate Prep; the school will develop a corrective action plan with bimonthly check‑ins and regular reporting to commission staff. The commission will receive updates at its July meeting and as testing and enrollment data become public.

Next steps: staff will finalize the corrective action plan with Nashville Collegiate Prep, proceed with bimonthly monitoring, and report interim progress to the commission. Staff will also monitor financial plans for schools with elevated debt and continue coordination with TDOE on turnaround funding and contracted supports.