Head of troubled charter school company resigns

[n2doc]

Mike Piscal, 44, who founded and ran ICEF Public Schools, steps down amid an ongoing financial crisis that will result in slashing the organization's payroll by about 25%.

By Howard Blume, Los Angeles Times
October 9, 2010

The founder of a troubled charter school company, one of the nation's largest, has resigned amid an ongoing financial crisis that will result in slashing the organization's payroll by about 25%.

The departure of Mike Piscal, 44, who started and ran ICEF Public Schools, was confirmed Thursday night at a meeting with more than 1,000 parents and staff. The austerity measures, which will include midyear layoffs of an undetermined number of teachers, are both fiscally necessary and required by benefactors who stepped forward last week to pledge help, said interim chief executive Caprice Young.

ICEF, which serves about 4,500 students, also wants help for its 15 campuses from the Los Angeles Unified School District, Young said. ICEF is seeking space at district schools to reduce leasing costs and wants the district's assistance in obtaining short-term loans at low interest.

Young, a former Los Angeles Board of Education president, was scheduled to meet Friday with L.A. schools Supt. Ramon C. Cortines.

more

http://www.latimes.com/news/local/la-me-charter-20101009,0,2314269.story

[Hannah Bell]

1. ooh, the wonderful charter schools are running deficits & want more handouts from the public.

what a surprise.

[femmocrat]

2. And of course, teacher layoffs is the first "austerity" measure.

Wonder what the big wigs were paid?

[SoCalDem]

3. Businessman starts school

great press ballyhoos the progressive wonderful school
school gets grants
school sets up & attracts students
businessman skims off as much money as possible, as fast as possible
investigations start after a few years go by
businessman retires/resigns/quits/whatever
businessman starts again in another community after writing a book/going on the speaking tour/becoming an adviser/etc

rinse & repeat

cue the soundtrack from "The Music Man"...or "The Rainmaker"

[Catshrink]

4. He leaves and payroll is slashed 25%

On my first reading, I interpreted that as his salary being 25% of the total payroll costs, which didn't surprise me. Charters pay their executives well.

[Tatiana]

5. I wonder what the executive compensation looks like for ICEF.

And every charter should have a plan for location and facility costs. This happens with the Chicago charters all the time... they beg for land/space/buildings belonging to the public schools, instead of leasing/acquiring the necessary facilities themselves. Then they pocket the amount that was budgeted for facilities in the approved charter agreement.

The school district needs to determine if the students in those schools will receive an adequate and appropriate education as defined by state law. If not, those charters need to be revoked.

[Starry Messenger]

6. Interesting point made last week in Charter School Scandals:

http://charterschoolscandals.blogspot.com/2010/09/icef-public-schools.html

ICEF Public Schools

As you read this, keep in mind that financial decisions for ICEF are made by its high-powered, supposedly financially-savvy, and experienced board of trustees led by a chairman who is an well-known investment banker.

The board of trustees consists of the following:

* a former investment banker / financial analyst,
* an actress,
* the Co-Director of the Urban Leadership Program at Claremont Graduate University,
* the CEO and President of Challengers Boys & Girls Club,
* the managing director of the investment firm of Cabera Capital,
* the owner of a vineyard and former banker,
* the a Co-Founder and Principal of Cataumet Partners (an investment management and advisory firm),
* a former private school employee with over 30 years of business management expertise,
* the CEO & President of Interconnect Solutions Group, Inc, a manufacturer’s representative group,
* the Founder and CEO of Global Broadcasting, LLC,
* a Senior Program Officer at the Bill and Melinda Gates Foundation,
* plus two career-charter school operators.


http://www.icefla.org/about_us/board_of_trustees.jsp

Stephen C. Smith, Chairman
Rebecca L. Bunn
Bridgid Coulter
Corey Dantzler
Russell Goings
Julie Kellner
William Lucas
Patrick McCabe
David G. Moore
Michael Piscal
Simeon Slovacek, Ph.D.
Jim O'Brien


I wonder where all the money went?