SC charter district agrees to freeze spending while negotiations with state continue
The Limestone Charter Association has agreed to temporarily cease all spending while working to resolve concerns about its compliance with the state’s closure protocol.
The charter school authorizer, which is in the midst of winding down operations in anticipation of its impending corporate dissolution, agreed to the spending freeze Friday at an emergency hearing before Richland County Circuit Court Judge Daniel Coble.
Lawyers for Limestone and the S.C. Department of Education reached the deal prior to a hearing on the department’s request to restrict the charter school authorizer’s spending.
John Reagle, an attorney for the Limestone Charter Association, said the authorizer would temporarily refrain from issuing any financial payments or transferring any assets while working to resolve the Department of Education’s concerns.
In the event that mediation is unsuccessful, a hearing on the S.C. Department of Education’s request for a temporary restraining order would be held the week of May 4.
Department of Education attorney Henry Gunter said Friday that the agency was satisfied with the arrangement.
“They’ve agreed not to expend any funds while we work through the remaining issues or points of disagreement,” he said. “It’s our hope that those issues can be resolved prior to the court’s next hearing, and if they aren’t, the court’s hearing presents the opportunity to settle those issues.”
The Department of Education alleges that Limestone Charter Association has refused to provide key financial records requested during the closure process.
The charter association, a nonprofit affiliate of the now-defunct Limestone College, asserts it has provided the agency everything it legally can.
The parties’ running disagreement came to a head Wednesday when the department filed suit against the charter school district and sought to restrain it from spending money without the agency’s prior approval, among other things.
State education officials said they have “significant” questions about the dissolution plan Limestone filed this week with the Attorney General’s office, which showed the authorizer had more than $600,000 in taxpayer funds remaining in its bank account.
Limestone Charter Association board chair Bridgett Fowler said the money would be used to pay out employees’ accrued vacation and sick time, with anything left over sent to the university’s receiver to pay down a startup loan the university provided the authorizer in 2021.
She said the association, whose board earlier this month approved its dissolution and assigned its authorizing responsibilities to the Department of Education, had no issue freezing spending until its dispute with the department was resolved.
“We’re in the wind-down process, so it’s not affecting us financially at all,” Fowler said Friday. “It’s not an issue for us.”
The Limestone board chair said the authorizer had “done everything per the law” and would be asking the department for an apology next week when the parties meet for mediation.
“We’ve done everything they’ve asked,” Fowler said.
The Department of Education said in a statement Friday that the agency would not be apologizing to Limestone.
“Superintendent (Ellen) Weaver and the Department will never apologize for safeguarding taxpayer assets intended for the benefit of South Carolina students,” spokeswoman Christy Cox said in a statement. “It’s a shame the LCA put us in this position.”