EdKey

BASIS Schools in Arizona went another $2 million in the hole according to their 2020 audit, posting over $56 million in red ink - the highest negative assets of any charter company in Arizona maybe the world. The Basis Schools in Texas, Washington D.C., and Baton Rouge are profitable, garnering over $14 million in positive assets, but the entire BA... SIS operation is still over $40 million in the red in 2020. BASIS CEO Peter Bezanson sent a letter to parents when news of the huge BASIS 2019 losses made the news last year: BCSI is in excellent financial health. Statements and suggestions to the contrary are false. The reality is, BCSI has more than $12 million in positive equity, including the market value of land and buildings. Our credit rating is unchanged at BB, and S&P Global Ratings has declared our financial outlook stable. BCSI has taken financial steps (including refinancing to lower interest rates, depreciating assets, etc.) that appear on paper as debt but save our schools millions of dollars funds were able to redirect to BASIS Charter School classrooms. It appears these investors know something that certain members of the media do not. (Bezanson's bold) BASIS has $210 million in land, buildings and equipment but has over $250 million in debt, according to their 2020 Annual Financial Reports. Appraisals of the BASIS Arizona facilities (disclosed by BASIS to receive bond financing) show the appraised value of BASIS school facilities in Arizona to be $213,753,000. Owing $250 million on property worth $214 million is what we ignorant folks call being upside down in their mortgage. BASIS cut Instructional spending by almost $2 million in 2020, spending about $250/pupil less in the classroom than in 2018. BASIS teachers average $42,815 a year while the average charter teacher earned $45,914 last year. But BASIS administrative spending in 2020 remained identical to 2019 - $2,150/pupil when the charter average is $1,660/pupil. If BASIS was one of us ignorant folks, they would be a family swimming in debt, ...Read More