Future of Las Vegas charter school uncertain amid finances, low enrollment

The Nevada State Public Charter School Authority’s board voted unanimously on Friday to issue Girls Empowerment Middle School a notice of breach, meaning there’s continued evidence of financial problems.

The school must also submit a plan by April 25 that shows how it will sustain its operations through the end of June 2024.

The charter authority needs to see a robust financial plan in the “very near future” to ensure the school is viable and to avoid possible closure, said Mark Modrcin, director of authorizing for the charter authority.

Board members at Girls Empowerment Middle School — also known as GEMS — are wonderful people who are passionately connected to the school’s mission, the school’s legal counsel Jason Guinasso said.

“They want to see this school succeed and they want to do whatever they can to fight to keep it open,” he said.

‘The best path forward’

GEMS, located on South Maryland Parkway and East Flamingo Road near UNLV, opened in 2020.

School board vice chair Barbara Wiggins said the majority of the school’s students are from low socioeconomic backgrounds, and trauma-impacted or single-family homes. She said the school has made an incredible impact on students’ lives.

She talked about offerings at the school, including a licensed therapist and a daily empowerment class for students.

But the school’s target enrollment is 165 students for next school year. So far, only about 70 students are enrolled.

GEMS held an emergency board meeting April 10 where trustees decided to keep the school open.

The board voted 3-3 to close the school, meaning the motion failed, Guinasso said. The board’s second motion, which passed 5-1, was to keep the school open with the intent to develop a plan to address financial issues.

The school’s executive director Tara Meierkord, who recommended that the board vote to close the school, later submitted her resignation effective April 28.

Two board members, one of whom was board chair, resigned this month. The school’s accountant also recently left.

Wiggins said the board has identified a potential executive director, as well as two new board members.

But the charter authority staff believes closing GEMS at the end of this school year is “the best path forward for the school’s students at this time given the host of issues — both short and long-term — facing the school,” according to online meeting materials.

Charter authority staff wasn’t originally planning to bring a recommendation to Friday’s meeting, but the situation at GEMS is “very fluid” and fast-developing in recent weeks, Modrcin said, calling the situation “very unusual.”

Modrcin said a special charter authority board meeting will likely be required in the next two or three weeks to review GEMS’ financial viability plan.

If the plan isn’t approved, it might result in further intervention by the charter authority, he said. That could be a notice of intent to revoke the school’s charter.

Enrollment and financial problems

Guinasso said the school’s financial insolvency issues came to a head over the last four weeks.

The charter authority previously issued a notice of concern March 3 after the school failed to meet three financial performance measures.

Online meeting materials note that “improved financial standing and viability would require enrollment gains to provide the school with additional revenues.”

The authority also said the school hasn’t secured additional philanthropic support.

If nothing changes, the projection is that cash flow for the school will be impacted by June, Guinasso said, and the school has also been informed it may lose grant funding.

GEMS’ board is committed to paying the school’s 15-person staff, and while financial issues have been discussed during public school board meetings, no letter has been sent to parents explaining the situation, according to Guinasso.

Wiggins, vice chair of the school board, said the school’s financial situation has been communicated to staff.

Guinasso said he’ll meet with the GEMS board Monday to develop financial and communication plans.

Charter authority board member Kurt Thigpen advised putting together a crisis communications response, as once word gets out about the challenges at the school, families will start to panic and reach out to the school to find out what’s going on.

School leaders have the choice of putting their energy into raising money or into educating families on other good school options and helping them successfully enroll their children elsewhere, charter authority board chair Melissa Mackedon said.

She said she’d encourage school officials to think about that — and what’s in the best interest of students — over the weekend before meeting with their attorney.

Mackedon said there’s no doubt the school has good programs that have a positive impact on students. But, she said, “the gap that you have to close financially right now is so huge.”

Contact Julie Wootton-Greener at jgreener@reviewjournal.com or 702-387-2921. Follow @julieswootton on Twitter.