The story below points to a couple of issues. It looks like Edison Schools will be leaving Chester PA schools, in part because they didn't get paid.
One of the many problems educrats have about private firms like Edison being involved in schools is that companies like this actually expect to be paid for their services, just like any other vendor. When school boards routinely spend money in a frivolous fashion, ignoring basic concpets like adhereing to a budget or hiring competent accountants and financial professionals, it is no wonder companies like Edison get frustrated and then blamed for leaving.
According to the story, it turned out that the district's poor accounting concealed a $35 million budget deficit. District officials said recently that without an immediate loan to pay teachers, the system would have just $9 left in the bank.
These are the people responsible for educating our children about financial basics and they hide a $35 million dollar deficit!!! One does not lose $35 million in a mathematical mistake, $35 sure, maybe even $35,000, but $35,000,000--that is a lot of zeroes to misplace.
Because Edison is a for-profit company, it is in the business of providing education for a fee. They have to show income to their Board and their shareholders. For-profit companies expect to be paid--on time-- and when they don't they often find out that the reason they don't get paid is due to financial incompetence of the school board. Had Edison not left Chester, it is entirely possible that this $35 million dollar lie would not have been found out--at least until teacher's paychecks started bouncing.
Of course the other question is how on earth a school board gets $35 million in debt is a good question to ask.
Edison Schools Leaving Chester, Pa.
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