Magnolia Public Schools
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As further explained at page two in your July 27, 2014 correspondence, “State regulations further provide: When considering a petition for renewal, the district governing board shall consider the past performance of the school's academics, finances, and operation in evaluating the likelihood of future success, along with future plans for improvement if any. (Title 5, California Code of Regulations, section 11966.4, subdivision (b)(1).)” Although page two of the CSD July 27, 2014 correspondence identifies that “…future plans…”are a component of considering a petition for renewal, we are disappointed that after the many years of our successful partnership with the CSD that no evaluation of our future plans were considered in the CSD’s unilateral denial of our MSA #6 and MSA #7 charter school renewals.
We are confident that our responses below to the CSD June 27, 2014 correspondence will demonstrate that our good partnership and relationship with the CSD should continue and that MSA 6 and MSA 7 are demonstrably likely to successfully implement the program as set forth in the renewal petitions and met all the criteria for renewal. The following is our response to the findings: (Note, the CSD June 27, 2014 correspondence findings are restated in each section below and our response is written in
bold, italicized indented text
Financial Solvency of the CMO and MSA 6 and MSA 7, or Lack Thereof
MERF: Magnolia Science Academies are operated by the nonprofit corporation/charter management organization (CMO) Magnolia Educational and Research Foundation (MERF). MERF operates 11 MSA charter schools, 8 of which are authorized by LAUSD. VLS performed some analysis of the financial information of MERF and reviewed transactions that involved loans and/or transfer of funds to MERF or to any of the MSA schools.