Judge’s ruling means termination proceedings can resume against Macon Charter Academy

A judge’s ruling Wednesday clears the way for closure proceedings to resume against Macon Charter Academy.

After a hearing in U.S. Bankruptcy Court, Judge James Smith ruled that a stay — a delay in legal proceedings — automatically applied in Chapter 11 reorganization filings did not extend to state and local school boards and their regulatory functions.

“Clearly the operation and regulation of public schools is part of the regulatory powers of the state of Georgia and Bibb County school boards,” he said.

Joel Callins, Macon Charter’s attorney, argued during his closing comments that termination would violate the school’s charter, which he said should be treated as any other “executory contract” during bankruptcy cases. Since the state’s termination process was a provision in the charter itself, Smith ruled that distinction wasn’t relevant.

“In so ruling, the debtor is deprived of none of its contractual rights,” Smith said.

Callins said he was disappointed with the decision, adding that the school’s plans going forward haven’t been decided yet. MCA board President Ed Grant said the board would meet Friday to discuss the issue with parents.

“We’ve got to sit down and meet with the board and see what their decision will be,” Callins said.

The time elements at play were discussed during Wednesday’s hearing, including the Bibb County school district’s need for a resolution heading into the 2016-17 school year, which begins in a little more than five weeks. Superintendent Curtis Jones said that whatever is done will need to be done “expeditiously,” with students set to start classes Aug. 1.

“We will have a conversation with our local board and come to a common understanding of what this will mean,” Jones said.

Either the state or local boards can initiate the termination process by a vote, which would be followed by a notice to the school and a scheduled hearing. That would be where the final determination would be made regarding the school’s future.

Jones was called as a witness at the hearing, primarily presenting the local board’s function in approving and overseeing charter schools. Lou Erste, an assistant state superintendent, gave the same account of the state’s role.

He said the termination process can last anywhere from 40 days to a full year.

“But 60 days is what we operate with as a rule of thumb,” he said.

Erste said it would be up to the state school board if the termination process would pick up at a called meeting or at the next scheduled meetings July 13-14. The Bibb County school board has a called meeting at 4 p.m. Thursday to approve the 2016-17 budget and regular meetings on July 21.

During the hearing, Danny Akin, an attorney for the Bibb County school board, said that termination proceedings were “simply regulatory” and were exempt from the stay, which was issued weeks ago.

“It’s appropriate that the stay not apply to the entities that we have here,” he said.

He also pointed out that the termination process had only been halted out of an “abundance of caution” when MCA filed for reorganization May 4. That same day, starting the termination process had been on the state board’s agenda, but that item was pulled.

“So they did not continue with the termination process even though I did not believe they were stayed at the time,” Akin said.

For Macon Charter Academy’s part, Callins said the reorganization filing itself was an effort to give the school a fresh start. He pointed to external and internal pressures such as media coverage and probation as issues that have plagued the school.

“The purpose of this filing is to allow the school an opportunity to get it right,” he said.

This story was originally published June 22, 2016 at 1:48 PM with the headline "Judge’s ruling means termination proceedings can resume against Macon Charter Academy."