New Media charter told to make leadership changes

The New Media Technology Charter School must replace its top administrator, its board chairman, and the rest of its board members to obtain a new operating charter.

The Philadelphia School Reform Commission yesterday voted unanimously to require those changes and to impose more than 20 other conditions on New Media to address allegations of financial mismanagement and conflicts of interest.

The resolution said Ina Walker, New Media's chief executive, must either be terminated or resign by Sept. 1.

Walker, who attended the meeting with several New Media representatives, declined to comment.

Hugh C. Clark, board chair, and two other board members must also resign by Sept. 1, and the rest of the board must leave by Oct. 15.

Benjamin W. Rayer, an associate superintendent who oversees charters, said that if New Media did not comply, the state charter law gave the commission the right to revoke the school's charter "at any time."

After the meeting, SRC chairman Robert L. Archie Jr. explained the action. "We felt the school was on the right course educationally, but needs an overhaul financially and of its leadership," he said. "There were just too many unanswered questions. We could just not leave the current board and leadership in place."

Left alone, he added, the school would have closed "on its own" because of financial problems.

As The Inquirer has reported, there were times in the last year that New Media had to borrow to make payroll.

Archie joined the other three SRC members in calling for the overhaul of New Media's leadership.

In May, Archie said he would recuse himself because his wife, Shirley, briefly had served on the school's board. He did not explain his decision to cast a vote yesterday.

The commission had twice delayed voting on New Media to allow the district's inspector general to complete an investigation of allegations of financial mismanagement and conflicts of interest.

New Media, which opened in 2005, had 484 fifth through 12th graders on its two campuses in the city's Stenton and Germantown sections in 2008-09.

As part of a widening criminal probe of area charter schools, federal investigators recently began examining allegations that funds from New Media had been used to pay some expenses of a private school, a restaurant, and a health-food store, according to sources with knowledge of the inquiry. All have ties to Walker and to Clark.

It's the third time that the commission has required a financially troubled charter school to replace its top administrator and its board.

"This was a very difficult decision but one that was thoughtfully evaluated," Rayer said at the meeting.

The conditions imposed by the SRC include requiring that New Media's facilities meet all city codes; requiring the charter to hire a financial management firm approved by the district; and making all payments to the state teachers' retirement system.

The commission said New Media must terminate all contracts with businesses and entities tied to Walker and Clark.

Furthermore, the commission said New Media will not be allowed to operate its middle-school program after the 2009-10 year unless the SRC authorizes it to do so.