Photograph by Sarah Weaver
REALM (Revolutionary Education and Learning Movement) charter school is struggling with financial troubles that could affect the continuation of its license to operate.
The Berkeley Unified School District (BUSD) Board of Education voted on February 7 to issue a Notice of Violation (NOV) to Berkeley’s only charter school on the grounds that REALM administrators mismanaged their budget and failed to remedy their deficit, violating the terms of their charter and California Education Code. This is the second time in two years that REALM has received a NOV. The first was issued in January 2017, but because BUSD decided not to follow up, the issue was dropped.
BUSD granted REALM its charter license, which was last renewed in 2015, on several conditions. A key condition was that REALM would successfully work off its deficit by the end of the 2016-2017 school year. However, since 2015, the deficit has grown.
“REALM continues to make unrealistic projections about enrollment, which drives their revenue,” said School Board President Josh Daniels, adding, “If this continues, their problems will only worsen.”
At the February 7 school board meeting, Victor Diaz, Executive Director of REALM, discussed REALM’s decisions during the 2016-2017 school year, when REALM was over staffed and under enrolled. “We had to have some really hard conversations,” said Diaz during the meeting. “We had many people on staff that had been with us since the start of the school. So we opted not to make cuts at that time.” This decision to keep people on staff contributed to REALM’s current financial situation.
When the NOV was issued, REALM entered an approximately two month period during which to remedy the violation.
If the school provides satisfactory evidence of fixing its financial problems, the Board will not take further action, other than continuing to monitor the budget. However, if within this time period the violation is not remedied, the Board will hold a hearing, during which they could vote to issue a Notice of Intent to Revoke REALM’s charter license.
“From what I have seen, REALM has no plan in place to remedy these problems, and this is what concerns me most, their lack of a plan,” said Daniels.
One concern that has been discussed in light of REALM’s troubles is whether or not there is a need for a charter school in Berkeley.
Some public education advocates argue that charter schools take away resources from public schools.
“I understand this sentiment and I am skeptical of some charters, and am against for-profit charters,” said Emily Nathan, the Director of Operations at REALM. “However, I do see the need for charters in some communities where students educational needs are not being met.”
According to Nathan, REALM’s financial problems are typical of charters and she believes REALM will be able to overcome their current financial issues.
“I was told several years ago by the former BUSD Deputy Superintendent that if schools can make it past year five there’s a good chance they’ll make it and if you can get to year ten you have reached your sweet spot. We are in year seven so I believe we have a good chance of ‘making it’,” she said.