Gulen's American Empire
Gulen Empire map from Turkish Newspaper. DISCLAIMER: If you find some videos are disabled this is the work of the Gulen censorship who have filed fake copyright infringement reports to UTUBE
Showing posts with label Fulton Science Academy DENIED. Show all posts
Showing posts with label Fulton Science Academy DENIED. Show all posts
Thursday, June 7, 2012
Wednesday, March 14, 2012
Gulen Charter School- Fulton Science Academy downgraded by Fitch!!!!
NEW YORK--(BUSINESS WIRE)--
Fitch Ratings has downgraded the rating on the $18.9 million of Development Authority of Alpharetta, Georgia educational facilities revenue bonds (Fulton Science Academy project) (the bonds) to 'B' from 'BB-'. The bonds remain on Rating Watch Negative.
SECURITY
Joint and several general obligation of Fulton Science Academy, Inc. (Fulton Science Academy Middle School, or the middle school or FSAMS), Fulton Educational Services, Inc. (Fulton Science Academy High School, or the high school), and Fulton Sunshine Academy (Fulton Science Academy Elementary School, or the elementary school; collectively with the middle school and high school, the borrowers, or the schools or FSA), payable from all legally available revenues and secured by a first mortgage lien on the new campus.
KEY RATING DRIVERS
MATERIAL DEFAULT RISK: The downgrade to 'B' reflects elevated default risk related to the non-renewal of FSAMS' charter by its local school district, a shrinking window to pursue alternative charter renewal options, and further FSAMS leadership missteps in managing key relationships.
POTENTIAL LOSS OF CHARTER: Late last year, the charter authorizer (Fulton County School District, FCSD) rejected the middle school's charter renewal application. FSAMS applied to the state of Georgia's Department of Education (DOE) for a new charter, but a final determination is not expected until the middle of June, just weeks before its FCSD charter expires.
TURBULENT RELATIONSHIPS CAUSE CONCERN: FSA's recent failure to obtain required construction approvals for its project, along with the FSAMS charter non-renewal, highlight an on-going, worrying trend of management inattention to regulatory requirements.
CONCERNS TRUMP INVESTMENT-GRADE CHARACTERISTICS: Fitch notes that on a consolidated basis, the borrowers generated solid debt service coverage in fiscal 2011 and standardized test scores generally exceed state and district averages. However, these factors, which help drive positive enrollment trends, do not fully offset the concerns Fitch has regarding FSAMS' future, and FSA's relationship management.
WHAT COULD TRIGGER A RATING ACTION
FAILED STATE CHARTER APPLICATION: Expiration of the middle school's FCSD charter at June 30, 2012, without a replacement state charter could result in an immediate event of default as defined in bond documents. In such a scenario, Fitch would likely downgrade the bonds to no higher than 'C', with a Negative Rating Watch. According to terms of the loan agreement and indenture for the bonds, the trustee could implement accelerated redemption provisions.
STATE CHARTER WITHOUT ADDITIONAL FINANCIAL SUPPORT: If the middle school wins approval of a state charter, it still faces the challenge of operating without significant revenues currently provided by FCSD. Should proposed legislative remedies fall short of fully replacing the loss of district funding, the middle school plans to rely upon internal resources, potentially diminishing an already modest financial cushion.
FURTHER ASSESSMENT OF REGULATORY RELATIONSHIPS: The elementary and high schools maintain FCSD charters in good standing. Fitch will closely monitor their relationships with FCSD, as well as FSAMS' interactions with DOE regarding its state charter application. Any indications of FSA management continuing to mishandle relationships with regulators could trigger further negative rating action.
CREDIT PROFILE
CHARTER STATUS AT RISK
Following several months of failed negotiations, the FCSD board voted unanimously on Dec. 20, 2011 to reject the middle school's application to renew its charter. The middle school's FCSD charter expires on June 30, 2012. FCSD staff is planning how to redistribute current FSAMS students to other district schools next fall.
In January 2012, FSAMS submitted an application to DOE to become a state-chartered special school (state charter school) on July 1, 2012. DOE staff will make a recommendation on the application to the DOE board in May. Fitch anticipates a DOE board vote on the recommendation at the board's June 14 meeting. If DOE rejects the application, FSAMS management will have very little time to seek alternatives before FCSD closes the school because of charter expiration on June 30.
FINANCIAL CHALLENGES OF A STATE CHARTER
Even if FSAMS wins DOE approval, it faces a potentially significant financial challenge. State-chartered special schools are not eligible to receive local school district funding, and can only receive direct state aid. In its worst-case scenario, FSAMS management estimates it could lose 50% ($1.9 million) of its total fiscal 2012 budget as a state charter school. FSAMS' state charter school application reflects $1.2 million in expense cuts.
FSAMS expects to utilize a portion of its balance sheet resources to make up the potential $700,000 gap. This includes fiscal 2011 available funds of approximately $685,000, additional projected surplus of $150,000 for fiscal 2012, and $270,000 in donations raised to-date by the school since January 2012. Unless the legislative remedies discussed below are successful, FSAMS could face a similar challenge for fiscal 2014, with just $400,000-$500,000 in reserves.
A state appropriations bill for fiscal 2013 recently approved by the House of Representatives includes $8.7 million in supplemental aid for state charter schools. If approved by the senate and governor (who initially proposed the funding), this supplemental aid could provide state charter schools with up to 90% of the per-pupil funding they would have received under district charters. This would temporarily offset the financial disadvantage of a state versus a local charter.
Monday, January 9, 2012
Fulton Science Academy- A game of chicken results in DENIAL of charter renewal
http://rootsinalpharetta.com/2012/01/fulton-science-academy-a-game-of-chicken/
Fulton Science Academy – A game of chicken
This is the first of two articles about the charter renewal of the Fulton Science Academy.It’s been difficult for me to get my hands around the issue of the Fulton Science Academy’s charter renewal. Most issues like this involving children or faith are pretty easy to grasp. Start with something like land use then combine some NIMBY sentiments and a pinch of xenophobia. But FSA’s situation is entirely different with a lot of influencing factors coming into play. Those on both sides of the issue are not afraid of employing emotional appeals or hyperbole to make a point. And in issues like this the truth usually is found somewhere in the middle. So after spending many hours of my Christmas break reading up on this fiasco, I’ve come to the conclusion that FSA’s charter renewal is really just…
A game of chicken
Yep, both sides were plowing ahead at full speed, waiting to see who would swerve first. Unfortunately those along for the ride include several hundred children, their families, taxpayers and a few bond holders. And all of these groups stand to lose big because of it.“Increasingly volatile and combative relationship”
That’s how the credit rating agency Fitch described things between the FSA and the Fulton County School Board. They made this comment as they were downgrading FSA’s credit rating on their $19 million building bond. The relationship was volatile because each side had a big club to bring to the fight. FSA’s club was their recent Blue Ribbon Award from the Department of Education. Surely the school board would not deny a request from a school with such a high distinction. Armed with this, they asked for a ten year renewal on their charter, the maximum allowed. Additionally they requested a full waiver of Title 20 rules.FCSB’s big club was a Georgia Supreme Court decision in 2011 that found that the state could not approve charter schools. That authority, according to the court, rests only with county school boards. It makes FSA’s appeal process more difficult. This is the FCSB’s chance to flex its muscle under the new ruling. As such, the Title 20 blanket waiver was off the table and they would only consider a three year charter renewal.
Neither side moved much after months of discussion. The FSA reduced their proposal to eight years but the FCSB made it clear that they would only consider three. Nevertheless, only the eight year proposal was brought before the school board. And at the end of this game of chicken, the FCSB didn’t swerve. Crash! They unanimously voted down FSA’s eight year request.
Both sides have acted poorly. Supporters of the FSA have been out in force claiming that the FCSB wants to shut down an award-winning school. It’s hyperbole pure and simple. It’s clear to me that the FSA wanted to force the school board into making such a vote even though another offer was on the table. Nobody desires to shut down this school.
On the flip side, the FCSB has not acted in good faith since the vote. FSA has relented (finally), agreeing to the three year term. However, the FCSB now will not consider it, saying the matter is closed. I don’t understand why they cannot move to amend or reconsider a matter that was before them. Most deliberative bodies easily have this option available under their rules. It would be best for all parties involved to approve the three year charter renewal and move on.
Tomorrow I’ll talk about why the FCSB is justified in wanting a shorter charter term for the Fulton Science Academy. And as always, there’s an elephant in the room that needs to be discussed. Stay tuned.
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