Report: Charter school needs to make millions in cuts to survive
Without significant budget cuts, Chavez Huerta K-12 Preparatory Academy will lose nearly $1.8 million in fiscal year 2025 and likely be forced to close its doors following the 2024-25 school year.
This financial projection was included in an annual progress report presented by Pueblo School District 60 charter school liaison Tom Weston and assistant superintendent Ted Johnson at a Jan. 30 meeting, in which Weston told Pueblo D60 board members that years of enrollment overestimations at Chavez Huerta led to inaccurate budgets and reductions in state funding.
“Those two factors have put CHPA in a position where, if they are to survive, they must make very deep budgetary adjustments — and project a much more conservative, realistic enrollment,” Weston said.
Chavez Huerta had a net revenue of nearly $753,000 in fiscal year 2021. However, the school lost over $1.4 million in 2022. Chavez Huerta made nearly $800,000 in 2023 but is projected to make less than $21,000 in 2024.
“It should be noted that the current (Chavez Huerta) board and leadership largely inherited the financial situation the school now finds itself in and is working diligently to determine if there is an avenue that will bring the school back to a stable financial position,” the report stated.
Financial recommendations from CHPA include cuts to at least 12 positions
In the annual report, current members of Chavez Huerta leadership provided a list of recommendations to recover from their current financial shortfalls. Those recommendations include the elimination of at least 12 staff positions to “reduce labor-related expenses” in fiscal year 2024.
Positions listed for elimination include accounting specialists, a chief
academic and student services officer, a chief human resource officer, a director of operations, an IT coordinator, an IT help desk technician, a K-12 registrar, lunch monitors, a middle school substitute, a principal, a PT custodian and a school psychologist.
Other fiscal year 2024 recommendations highlighted in the report include the development of a “five-year budget planning tool” and a revised 2024 budget. The revised budget has already been completed, according to the annual report.
Additionally, the estimated enrollment of 978 Chavez Huerta students in fiscal year 2025 will fall short of meeting operating costs, so the school’s recommendations call for an over $2 million reduction in expenses.
Reductions for fiscal year 2025 may include cuts to staffing, property, supply, transportation and facility space expenses. Chavez Huerta also hopes to explore programming options, add a kindergarten class, increase marketing to new sixth-grade students and retain current eighth-grade students.
During the Jan. 30 presentation, Chavez Huerta community representative Steven Trujillo told Pueblo D60 board members that the school continues to work with Education Redefined, a consulting business that assists charter schools and other organizations.
“What (Education Redefined has) indicated to us, verbally at least, is that they see the many assets that the school has and do see that with the difficult decisions ahead of us, there is a path forward,” Trujillo said.
Report shows academic improvement at Chavez Huerta
While the annual report highlighted ongoing financial issues at Chavez Huerta, it also found that Chavez Huerta saw overall academic improvement between the 2021-22 and 2022-23 school years.
Cesar Chavez Academy elementary school improved its School Performance Framework score from a 35.0% “priority improvement” rating to a 42.9% “improvement” rating. Ersilia Cruz Middle School improved its score from a 43.6% improvement rating to a 57.3% performance rating.
Dolores Huerta Preparatory High saw a slight decline from a 46.6% improvement rating to a 45.7% improvement rating, but the overall School Performance Framework score for Chavez Huerta increased from a 46.3% improvement rating to a 51.3% improvement rating.
School Performance Framework scores for elementary and middle schools incorporate academic achievement and academic growth data from the Colorado Measure of Academic Success (CMAS) assessment.
For high schools, CMAS scores, PSAT scores, SAT scores, graduation rates and dropout rates are incorporated into the School Performance Framework formula.