School official said they had agreements to temporarily give North Star Charter School a financial break on its large construction debt while it worked out a long-term plan to meet its obligations.
But Meridian School District trustees said the school had done little more than kick its problems down the road.
You have money you have got to pay back, said Mike Vuittonet, school board chairman. And you dont know how you are going to pay it back.
Bondholders agreed to give North Star access to $650,000 in reserve accounts and forgo payments of $850,000 while they negotiated a long-term solution to the schools financial problem. The money would have to be repaid by June 2014.
But Meridian district officials said the bondholders had authority to cancel the agreement with little recourse from North Star.
It makes it very fragile, said Vuittonet.
Trustee Anne Ritter said she worries that the school could close during the year and force nearly 1,000 students into Meridian district schools, which also face financial challenges from budget cuts.
Jim Miller, North Star board chairman, tried to assure the trustees that bondholders would not have undertaken the agreements with the charter school if they planned to close it down.
I do believe we are in a good position, he said.
North Star has about 30 days to respond to the boards decision. If the board upholds its decision after a public hearing, North Star can still appeal to the Idaho State Board of Education.
North Star was swamped with debt because of an $11.7 million bond with a 9.75 percent interest rate for a school building it constructed in 2008.
The school has 920 students.
Bill Roberts: 377-6408