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Board weighs Merit Academy—s request and seeks charter cash-flow forecast amid payment dispute
Summary
Board members said Merit Academy—s counsel advised against joint negotiation and that Merit had voted to pursue legal action; the board requested Merit—s cash-flow forecast and discussed short-term options to avoid litigation while ensuring district schools can open on time.
Discussion at the work session turned to Merit Academy, the district—s charter partner, after board members reported Merit had signaled a willingness to pursue legal action over the timing of flow-through payments.
Chair noted the district had received calls from Merit—s counsel and that the district—s hope was to resolve matters without litigation. "My hope is that meetings like this and maybe some more 2-on-2s would be able to prevent us from getting to that place so that we can keep the money with our students and not spend more of them on lawyers," the Chair said. Board members asked Merit to provide a cash-flow model showing what the charter needs to open without interruptions and discussed whether the district could alter the spreadsheet timing (e.g., equalized monthly payments) to help Merit without jeopardizing district reserves.
Board members expressed frustration that Merit—s attorney had advised against joint negotiations and said they would still pursue a cooperative path if Merit provided concrete cash-flow numbers. The board discussed contingency steps for July and August if the charter cannot safely open without additional smoothing of payments: an executive session, possible short-term accommodations, and a plan to seek guidance from the state board of education if needed. Several directors emphasized they did not want to disadvantage district students to benefit one charter, and asked staff to obtain Merit—s cash-flow forecast as an immediate priority.
