Cash-strapped Germantown charter lent money

Germantown Settlement Charter School has lent money to other nonprofits with ties to the school despite its own shaky finances, the president of the school's board acknowledged yesterday.

Emanuel V. Freeman, at a district hearing on whether to close the charter school, also described his involvement with several nonprofits with ties to the taxpayer-supported charter school.

The commission voted in April against renewing the school's five-year charter because of high staff turnover, too few certified teachers, low test scores, and shaky finances.

The school reported a deficit of $439,230 at the end of June 30, 2005, and one of $93,708 at the end of June 30, 2007.

Responding to questions from Miles H. Shore, an attorney for the district, Freeman said that in addition to presiding over the charter's board, he is the president of Germantown Settlement itself, a multipurpose human-services agency founded in 1884.

He is president of the settlement's subsidiary Greater Germantown Housing and Development Corp., which is the landlord of one of the school's campuses at 5538 Wayne Ave. He is also a member of the Germantown Educational Development Corp., another subsidiary, which owns the charter school's main campus at 4811 Germantown Ave.

Freeman, who said he is paid by Germantown Settlement and not by the other entities, said he recuses himself from votes involving the charter school's rent.

During his testimony, Freeman pledged new fiscal controls and appealed for the School Reform Commission to allow the middle school to remain open.

"We deserve to stay in existence because we are so important to the lives of children," Freeman said. "There are so few places in our community for them to be in a safe and nurturing environment."

Although test scores have been low - only 27 percent of students were proficient in reading in 2007 and 31 percent in math - Freeman said he believed the charter was fulfilling its mission of helping students reach "world-class standards of academic excellence."

His comments came during a daylong resumption of a June 24 hearing to determine whether the commission should close the school, which opened in 1999 and has more than 400 students in fifth through eighth grades.

Also yesterday, principal Jeffrey Williams described efforts to boost test scores and improve student achievement he has made since becoming principal in January 2007, including doubling the reading and math periods and opening a Saturday school to help struggling students.

The hearing was conducted before commission member Heidi A. Ramirez. Allison S. Petersen, an outside attorney, presided. It continues Thursday.

After the hearing concludes, the commission will accept written comments for 30 days before voting.

Even if the commission votes to close Germantown Settlement, district officials say, the school likely would remain open at least through the 2008-09 academic year.