BY LAYLI WHYTE
Staff Writer
The new school year started out on a high note for the Red Bank Charter School with the recent news of a reduction of the $1 million fine previously levied by the state Department of Education (DOE).
“We’re obviously thrilled with the decision of the department,” said charter school Principal Meredith Pennotti on Tuesday, the first day school was back in session after the summer break. “It shows that we’ve established ourselves as leaders in the reform of public education in the state of New Jersey.”
After reviewing the financial statements of the charter school, the DOE reduced its previously levied $1 million fine to $55,000, according to DOE spokesman Richard Vespucci.
“As a result of the latest appeal filed by the school,” Vespucci said last week, “and reviewing the circumstances of the school, we decided to reduce the fine.”
The fine is the result of an investigation of the school’s financial and administrative operation by the DOE Office of Compliance Investigation conducted in February 2005.
The investigation by the OCI was prompted by a dissident majority of the school’s Board of Trustees, who claimed that certain financial records had been withheld from them.
The OCI submitted a report in May 2005 that included several actions to be taken by the board in order to correct several problems identified by the investigation.
The fine specifically addressed the state Economic Development Agency (EDA) loan received by the school in October 2003, which was used to purchase its Oakland Street campus property, renovate the existing building on the site, and construct new portions of the building.
The OCI report stated that the renovation and construction project was not properly put out for public bid, as is required by law for public schools in the case of capital projects.
Vespucci said that since the DOE has seen the school complying with those corrective action recommendations, the decision was made to reduce the fine.
“They have cooperated with what we’ve asked them to do,” he said, “and we think that this school is a high-quality school. After reviewing all of the information the school submitted, such as financial records, we did recognize that an adjustment of the fine would make sense.”
The final decision, according to Vespucci, was made by DOE Chief of Staff Penelope Lattimer on Aug. 14.
Although Pennotti said a payment plan has been negotiated with the finance division of the DOE, nothing is in writing, so she did not feel comfortable discussing the plan.
“It is very, very reasonable,” she said.
With the issue of the fine settled, Pennotti said, a tumultuous chapter of the charter school’s history is coming to a close, and the school community is ready to move ahead full speed.
“We’re well positioned for our renewal application,” she said, “which is coming up this fall, and will bring us up through the next five years.”
The school must apply to the DOE to have its charter renewed.
The application will include the new bylaws that were amended this year as a part of the OCI corrective action plan.
The new bylaws include new procedures for appointing members to the school’s Board of Trustees, which will soon come into play since there are currently two vacant seats on the board.
Pennotti said that the first parent-nominated board member will be announced at the board’s Sept. 20 meeting, and will be sworn in at the Oct. 18 meeting.
“The parents voted in August,” said Pennotti, “as a part of the revised bylaws.”
The other seat will be filled through the process of the board’s Search Committee, and Pennotti expects it will also be filled shortly, bringing the board back to its full complement of nine.
“It’s all about moving ahead,” said Pennotti. “The parents are obviously just relieved. I give everyone credit for staying the course. Last year was a very challenging year on many fronts. Now, we anticipate having our best year ever.”