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KALIHI, Hawaii (AP) — The state is trying to deal with the financial mess left behind after the closure of a Kalihi charter school.
On May 29, Halau Lokahi became the first charter school in Hawaii to be shut down by the state, reported Hawaii News Now (http://bit.ly/1e3H5zs ). The charter school was open for 14 years.
"It was a painful lesson to have so early on in the life our new charter school system," said Tom Hutton, executive director of the Hawaii State Public Charter School Commission.
The commission notified the Attorney General's office about spending by the school that totaled more than $100,000. Authorities have arrested three former employees for theft and money laundering. They have yet to be charged.
Now, the commission must figure out how much money creditors are owed. In Hawaii, charter schools are considered state agencies. Hutton said the state may be liable for between $200,000 and $400,000.
The commission has sold off assets, collecting about $6,000 to help pay off some of the bills. The agency may have to turn to state lawmakers for help in dealing with the charter school's remaining debts.
Legislators recently made the process of shutting down a financially troubled school faster. Under the revised law, a school that can't afford to pay its staff will lose its charter without going through six months of due process.
State Rep. Roy Takumi said charter schools will be monitored more closely going forward.
"There's going to be more periodic oversight and reviews and a bit more accountability on all the charter schools as to how they report their expenditures and so on," explained Takumi, chair of the House Committee on Education.
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Information from: KGMB-TV, http://www.hawaiinewsnow.com/
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