Judge Inclined to Stop LAUSD from Closing Down Charter Schools

A judge has issued a tentative ruling granting a request by Magnolia Public Schools for a preliminary injunction stopping Los Angeles Unified officials from shutting down academies 6 and 7.

The charter schools organization sought the order so it could appeal the district's decision through county and, perhaps, state education agencies.

"The court finds that (Magnolia) has made a significant showing of irreparable harm as a result of the LAUSD taking the position that the charter schools' expired," Los Angeles Superior Court Judge Luis Lavin wrote.

The judge will hear arguments later today on the issues before issuing a final decision.

Lavin noted that students are expected to report to school Aug. 12, which would have given Magnolia only about three weeks from today's hearing to notify parents that the schools would not operate for the 2014-15 school year.

"Thus, even if LAUSD's board was to issue proper written findings in the near future, the schools would be unable to obtain administrative review of those findings to properly inform their students and staff of the schools' status before the start of the school year," Lavin wrote.

In court documents, LAUSD officials say an audit they commissioned of the two academies shows their management organization, Magnolia Educational and Research Foundation, meets the IRS's definition of "insolvency" because its net assets were at a deficit of nearly $1.7 million for the fiscal year ending June 2013.

Magnolia officials, meanwhile, enclosed in court filings a letter from an auditor they hired putting Magnolia's assets at $4.8 million for the fiscal year ending June 30, 2013.

Magnolia "is certainly solvent and liquid and has the ability to successfully fund the operations of its schools,' according to the letter, which was filed in court.

A second accounting firm's findings also refuted the district's contentions, Magnolia officials contend in court documents.

--City News Service