Education
Education Partnership files for receivership
10:19 AM EDT on Monday, June 23, 2008
PROVIDENCE — The Education Partnership, a nonprofit advocacy organization that produced reports and consulted with local school districts, has closed its doors and filed for receivership in Superior Court, unable to pay its bills.
As recently as 2005, the organization, which was formed in 1998 as the Business Education Roundtable and merged with another nonprofit group, the Public Education Fund, had a membership of 32 businesses.
But in a letter to “Members of The Education Partnership, Inc.” dated June 18, the group’s board of directors said that membership contributions as well as “revenue-producing programs” had significantly declined.
“The Board decided that it is necessary for the protection of the business and assets of the Corporation and for the protection of the Corporation’s creditors, that the Corporation seek from the Superior Court the appointment of a receiver … The Board has taken this action due to the overwhelming financial difficulties recently experienced by the Corporation which have made it impossible for the Corporation to continue to carry out its purpose,” the directors wrote.
The organization, which published a series of reports — most notably on Rhode Island’s teachers union contracts — had tried to generate income by expanding its consulting with school districts, both locally and nationally. In all, the organization had about six staff, including executive director Valerie Forti, who earned $140,000 a year in salary and benefits in 2005, according to tax records.
However, the consulting contracts were not as successful as the organization had hoped and the board of directors voted to place the organization in receivership, said lawyer Allan M. Shine, who was appointed temporary receiver Wednesday.
“The impression I have is that they were making a very serious attempt to do contract work with a number of municipalities, both locally and around the country, and I think they wanted to move in the direction of providing independent, impartial analysis, sort of like the Rand Corporation,” Shine said. “But the problem was I think they were not able to secure the volume and dollar amount in contracts to cover the overhead and expenses they had.”
Shine said he does not yet know how much the organization owes to various vendors and creditors. The staff was paid last week, Shine said.
In 2005, the organization reported a total budget of just under $3 million, most of which was spent on running a few educational programs, $108,000 in college scholarships, and salaries for the staff.
A hearing is scheduled in Superior Court, in Providence, on July 8.
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