North Star says it has resources to open for 2013-2014

North Star Charter School, which faced heavy debt earlier this year, has enough resources to pay its bills for this year and run the school in 2013-2014, school officials say.

But North Star must still convince the Meridian School Board, which issued a letter of defect to the school last spring with concerns over the North Star’s financial stability.

Meridian District has the charter school’s latest information, but the board has not yet made a decision on whether it has met trustees’ concerns, said Linda Clark, Meridian School District superintendent.

The board meets June 25 to discuss North Star Charter.

Through loans, which it has repaid, access to reserve accounts and an agreement with bondholders to forgo payments of $860,000 next year, North Star has plenty of resources to meet concerns expressed by the board, said Jim Miller, North Star’s board chairman.

School officials and bondholders will now begin negotiations on a long term solution that could give the school sustainable financial relief, Miller said.

“I don’t see why (the board) wouldn’t withdraw the notice of defect,” Miller said.

North Star sagged under debt from a 9.75 percent interest rate on construction of an $11.75 million school building in 2008.

North Star has 920 students.

Posted in In The Classroom, Our Towns