Domestic Outsourcing in the U.S.: A Research Agenda to Assess Trends and Effects on Job Quality

Source: Annette Bernhardt, Rosemary Batt, Susan Houseman, and Eileen Appelbaum, Center for Economic and Policy Research (CEPR), Working Paper, Prepared for the Future of Work Symposium – December 2015 – U.S. Department of Labor, March 2016

The goal of this paper is to develop a comprehensive research agenda to analyze trends in domestic outsourcing in the U.S. – firms’ use of contractors and independent contractors – and its effects on job quality and inequality. In the process, we review definitions of outsourcing, the available scant empirical research, and limitations of existing data sources. We also summarize theories that attempt to explain why firms contract out for certain functions and assess their predictions about likely impacts on job quality. We then lay out in detail a major research initiative on domestic outsourcing, discussing the questions it should answer and providing a menu of research methodologies and potential data sources. Such a research investment will be a critical resource for policymakers and other stakeholders as they seek solutions to problems arising from the changing nature of work.

Chartwells Era Ends As DCPS Selects New Food Providers – Following a whistleblower lawsuit last year

Source: Andrew Giambrone, Washington City Paper, May 23, 2016

The school-food provider at the heart of a whistleblower lawsuit in 2015 that revealed substandard food quality and fraud will not serve D.C. Public Schools students next academic year. DCPS announced in a statement on Friday that it has chosen DC Central Kitchen and SodexoMagic, with Revolution Foods as a subcontractor, to provide meals at more than 110 facilities. … The announcement follows a request for proposals DCPS posted in December, featuring a one year contract with four options years to renew. Still, which entities applied for the RFP won’t be publicly available until the contracts are approved because of procurement rules. Under the proposal, 12 schools in Ward 7 would be served by DC Central Kitchen, while the rest would be served by SodexoMagic and Revolution Foods. DC Central and Revolution served hundreds of thousands of meals last year. ….

Audit of Equipment Lays Bare D.C. Schools’ Problems in Kitchen, Again
Source: Jeffrey Anderson, Washington City Paper, March 14, 2016

The saga of D.C. Public Schools’ food services program took a troubling turn last month when D.C. Auditor Kathy Patterson issued a “Management Alert Letter” informing officials that the program lacks an accurate and comprehensive inventory of kitchen equipment. Patterson and her staff visited several DCPS cafeterias and witnessed meal preparation and service, and interviewed cafeteria managers and staff workers. In assessing the equipment the schools use to prepare food, Patterson writes in a Feb. 12 letter to DCPS Chancellor Kaya Henderson, “We witnessed inefficiencies and waste including equipment that we were told had been broken for a year or longer.” … Patterson intends to provide the D.C. Council with further information in the coming weeks so it can decide on whether to mandate “in-sourcing” the school food program, which could save the school district a considerable amount of money and result in more local control over what DCPS students eat. Her review looks at other school districts, such as Philadelphia, which contracted out with Aramark, a competitor of Chartwells, then brought food service back in-house, she says in an email to Washington City Paper.

Chartwells-Thompson withdraws from DC Schools contract
Source: Mike Buzalka, Food Management, July 15, 2015

Chartwells-Thompson recently settled a whistleblower lawsuit for $19 million that alleged it had mismanaged the dining program and overcharged the city. In her letter, Cass reiterated the company’s “vehement disagree[ment] with the allegations” and noted that “we chose to resolve this matter amicably instead of litigating which would have lasted for years and served as a significant distraction to us, DCPS and the District…Our hope was this resolution would allow us all to move past the distractions and return our collective focus to serving students.

Embattled D.C. schools food vendor quits contract, puts pressure on city
Source: Aaron C. Davis and Michael Alison Chandler, Washington Post, July 14, 2015

The vendor that provides food services to the D.C. Public Schools has told the D.C. Council that it wants to withdraw from the contract this fall, a sudden and unexpected move that puts immediate pressure on the District to find a new provider for nearly 100 schools. Chartwells-Thompson Hospitality, the District schools’ embattled food vendor, informed council members Tuesday that it wants to quit the lucrative contract and move on after a large whistleblower settlement and wranglings over allegations of mismanagement.
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Hedging Education: How hedge funders spurred the pro-charter political network.

Source: Justin Miller, American Prospect, May 6, 2016

Not too long ago, school board races were quaint affairs. Even in big school districts, candidates usually only had to raise a few thousand dollars to compete. But as the movement to marketize public education gained momentum, advocates broadened their focus from the federal level to state and local governments. … One of the starkest casualties of that strategic shift has been the American school board election. A network of education advocacy groups, heavily backed by hedge fund investors, has turned its political attention to the local level, with aspirations to stock school boards—from Indianapolis and Minneapolis to Denver and Los Angeles—with allies. … The same big-money donors and organizational names pop up in news reports and campaign-finance filings, revealing the behind-the-scenes coordination across organizational, geographic, and industry lines. The origins arguably trace back to Democrats for Education Reform, a relatively obscure group founded by New York hedge funders in the mid-2000s. …

… DFER currently has active operations in 13 states and the District of Columbia. Students First, a group launched by former D.C. schools chancellor Michelle Rhee, is operating in ten states. Stand For Children has 11 state chapters. The 50-State Campaign for Achievement Now (50CAN) works in seven states so far. All of the groups have put school board races in their crosshairs. … The flood of outside money that’s become a new normal in many school board elections is troubling for several reasons. And the stakes of 2016 couldn’t be higher. This year alone, 640 of the country’s largest school districts by enrollment are holding elections, with nearly 2,000 seats up for grabs, according to Ballotpedia. All together, these districts educate around 17 million students—about 34 percent of all the K–12 students in the nation. … The coordinated and tangled web of charter-advocacy groups’ political activity makes their financing hard to track. National groups and big individual donors will often funnel money to local PACs, which in turn spend money independently from a candidate’s campaign. Many of these organizations operate as 501(c)(4)s and thus don’t have to disclose donors or, depending on state law, even fully disclose independent expenditures. …

… Behemoth groups sponsored by mega-billionaires like Eli Broad, Bill Gates, the Koch brothers, and the Walton family have spent hundreds of millions to launch charter schools, sponsor think tanks, and more broadly steer the ideological DNA of reform. In recent years, newer organizations have positioned themselves adjacently to that machine while focusing more explicitly on politics. Critics, though, say there’s little difference between groups like DFER and those on the right. DFER has taken heat for teaming up with the Koch brothers and the American Legislative Exchange Council (ALEC) in backing California referendums that attacked public education and unions, and in opposing a ballot measure to impose a tax on millionaires. They’ve also given money to a right-wing group that was a booster of Wisconsin Governor Scott Walker’s anti-union agenda, and took out an ad in 2012 blasting the Chicago Teachers Union in the lead-up to a strike. …

Outsourcing Savings Estimates Strain ‘Credulity’

Source: Sam Stockard, Memphis Daily News, May 19, 2016

… The plan, if all departments participate, is projected to save $35.8 million by the second year of a contract for building operations and services – with the requirement state workers keep their jobs, with comparable pay and benefits as long as they perform. The contract would be available for all state properties, enabling colleges and universities, for example, to compare their costs to the contract in deciding whether to opt in, according to Cowles. … The Department of General Services started moving on the process in 2015, much to the chagrin of state employees, primarily United Campus Workers, who contend their jobs and pay will suffer. They rallied during the recent legislative session and then petitioned the governor again in late April. Several state lawmakers also raised questions about the office’s plan when it went before the Senate State and Local Government Committee in March. Some called it “corporate rhetoric,” while others said it “strains credulity.” … In early April, the state made a request for qualifications from potential facilities management service providers to determine whether they can do the job. … The state appears to be head over heels in love with Chicago-based JLL, saying it has saved the state $10 million since it took over facilities management a few years ago. Cowles points out in his presentation JLL is ranked the city’s best employer by the Nashville Business Journal. United Campus Workers is questioning why the office started looking for qualified vendors before the independent review is complete. It also is pointing out the state is continuing to change its tone throughout this situation, now softening its stance to say colleges could choose just to go with a landscaping portion of the contract or janitorial services, for example.


Campus workers present letter of concern to Haslam administration over privatization effort
Source: Richard Locker, Knoxville News Sentinel, April 26, 2016

… The governor’s facilities management outsourcing initiative is apparently the largest ever attempted by a state government. When a request for information was issued last summer to gauge interest from potential contractors, it proposed a contract covering the operation and maintenance of virtually all state-owned property, including office buildings, state parks, college and university campuses, prisons, armories and hospitals. In March, the outsourcing team issued a “business justification” for the plan estimating that it could save taxpayers $36 million a year if fully implemented, even while protecting current employees’ jobs — although their employment would be transferred to the contractor. Cowles acknowledged at the time that no firm cost comparison would be realized until a contract is bid and negotiated. Largely at the request of higher education officials, Haslam agreed to hire an outside consultant to evaluate his team’s estimates of savings and the state on March 17 started the process of selecting a contractor to perform that work.

Tennessee moves to review possible outsourcing partners
Source: Adam Tamburin, The Tennesean, April 11, 2016

The state took steps Monday to review possible options for outsourcing facilities management on college campuses and other government-owned properties. An internal review released last month by Gov. Bill Haslam’s administration suggested privatizing the management of residence halls, student centers and other properties across the state could save $36 million annually. On Monday the state released a request for qualifications, or RFQ, that will allow businesses to express interest in participating in the proposed outsourcing plan. … Critics have said outsourcing would translate to sub-par services, particularly for colleges, and slashed pay and benefits for employees. Haslam has said the savings are possible without layoffs or cuts to pay or benefits.

Critics question Haslam’s outsourcing plan
Source: Joel Ebert, The Tennessean, March 22, 2016

While proponents of the plan say the effort will result in taxpayers saving millions of dollars, Chris Dauphin, the organization’s communications director, questioned the $35.8 million in estimated savings. The figure was mentioned by Terry Cowles, director of customer-focused government, during a presentation to the Senate State and Local Government Committee in early March. On Tuesday, Dauphin told the same committee that the state can save money without having to outsource the facilities management on every state property. … Dauphin advocated for a more common-sense approach before warning that outsourcing could result in cost shifting down the line. He said a private company could decide to have annual rate increases, pointing to a contract between the Texas A&M University system and Compass Group USA, an outsourcing company, that resulted in students being forced into paying more for meal plans as a result of the privatization plan. Dauphin also explained that the 1,647 state workers at the university were forced to reapply for their jobs, with only 600 being rehired.
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Maui hospital transition to Kaiser blocked by federal appeals court

Source: Lorin Eleni Gill, Pacific Business News, May 18, 2016

The 9th U.S. Circuit Court of Appeals issued an order Tuesday temporarily blocking the July 1 transition of three Hawaii state-owned hospitals on Maui and Lanai to Kaiser Permanente until the end of September. … Tuesday’s order does not rule on the appeal, Chin’s office said. The hospital system’s executives had pursued approval to move to private operations after facing consecutive deficits, and in 2015 Gov. David Ige approved a law that would allow Maui management to transition to a private entity. The court order stalls any other developments through Sept. 30, and also ordered the parties to the lawsuit to file a joint status report on or before June 30. It does not rule on the appeal, but complicates a timeline Kaiser had set.


Court puts Maui hospital privatization on pause
Source: Emily Rappeleye, Becker’s Hospital Review, May 18, 2016

The 9th Circuit Court of Appeals put a temporary stop on the privatization of three Hawaii hospitals: Wailuku-based Maui Memorial Medical Center, Kula (Hawaii) Hospital & Clinic and Lanai Community Hospital in Lanai City.  At issue in the case are the rights of United Public Workers, a union that represents some of the Maui hospital employees.  In 2015, the state ruled to end service delivery by Hawaii Health Systems Corp. at the three hospitals and transfer them to a private operator. The health system board signed over the three hospitals in January to Maui Health Systems, a division of Oakland, Calif.-based Kaiser Permanente. …

Maui Hospitals’ Privatization Halted
Source: Nathan Eagle, Honolulu Civil Beat, May 17, 2016

The 9th Circuit Court of Appeals on Tuesday ordered the state to hold off on its plans to privatize three public hospitals on Maui until Sept. 30 unless a judge terminates the injunction sooner. … The Legislature passed a law in 2015 that transferred the Hawaii Health Systems Corporation’s delivery of health care services at Maui Memorial Medical Center, Kula Hospital & Clinic, and Lanai Community Hospital to a private operator. In January, HHSC board members agreed to transition services to a new Kaiser entity called Maui Health Systems, according to the Attorney General’s office. United Public Workers, representing some of the Maui hospital employees, sued Gov. David Ige to stop the transition.

Halted: Maui Hospital Transition Hits Speed Bump
Source: Maui Now, May 17, 2016

The 9th Circuit Court of Appeals today entered an order temporarily stopping activities related to the transition of Maui Memorial Medical Center, Kula Hospital & Clinic, and Lānaʻi Community Hospital to a private operator. The state Attorney General noted that today’s order lasts only until September 30, 2016, unless sooner terminated by the Court. The Court also ordered the parties to the lawsuit to file a joint status report on or before June 30, 2016. … United Public Workers, representing some of the Maui hospital employees, sued to stop the transition from taking place in the case of United Public Workers v. Ige. On February 19, 2016, United States District Court Judge Helen Gillmor ruled in favor of the State, and UPW appealed to the federal 9th Circuit Court. Today’s order does not rule on the appeal. …

Kaiser Names New Leadership for Maui Health System
Source: Maui Now, May 11, 2016

Kaiser Permanente today announced the new leadership for Maui Health System. Ray Hahn is appointed senior vice president and area manager, Hawaiʻi Region, which includes hospital administrator; and David Ulin, MD, is the associate medical director, operations, Pacific Permanente Group and chief medical director of the Maui Health System. The Maui Health System includes: Kula Hospital & Clinic, Lānaʻi Community Hospital and Maui Memorial Medical Center. …

Maui County hospitals leader to step down as privatization moves forward
Source: Lisa Kubota, Hawaii News Now, May 9, 2016

As the transition to privatize Maui County’s three hospitals moves ahead, the leader who helped bring about the change is about to step down. … Lo first started as Maui Memorial Medical Center’s chief financial officer 13 years ago. Now he’s in charge of Hawaii Health System Corporation’s Maui County facilities. It’s role he’ll relinquish on July 1, the day that Kaiser’s Maui Health Systems is set to take over operations of Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital. … Gov. David Ige approved a 30-year lease agreement in which the state would still own the hospitals, but Kaiser would run them, spending $100 million to improve and operate the facilities. …
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Why Social Impact Bonds Are Seen As Gaining Traction

Source: Nora Colomer, The Bond Buyer, May 18, 2016 (Subscription Required)

The use of “social impact bonds” as an alternative financing tool is on the rise and news that Chicago’s first venture into the space will pay off for investors demonstrates the benefits, market participants said. As of March, 10 projects have launched in the U.S. and dozens of projects are potentially in the pipeline, said panelists who discussed the topic at The Bond Buyer’s Midwest conference in Chicago Tuesday. At least 20 states are considering legislation to boost such “pay for success” ventures. … Chicago stepped into the SIB arena in 2014 with a $17 million privately funded investment used to expand early childhood education and the first results were circulated this week. The expansion, which relied on an additional $4.5 million of state grants and $10 million in city capital funds, allowed the Chicago school system to provide pre-kindergarten to more than 2,600 additional children over the four-year term of the project. The lenders — Goldman Sachs Social Impact Fund and Northern Trust in senior roles and the J.B. and M.K. Pritzker Family Foundation as a subordinate lender — are only repaid if students realize positive academic results. The program’s goals include increasing school readiness, improving third-grade literacy, and reducing the need for special education services. Based on those metrics, the initial outcomes has met the established criteria and investors are now assured a $500,000 “success payment,” said panelist Deborah Kasemeyer, senior vice president at Northern Trust Co. …

Buffalo’s mayor ‘absolutely concerned’ about ambulance response times

Source: Luke Moretti, WIVB, May 18, 2016

Buffalo Mayor Byron Brown says he is “absolutely concerned” about ambulance response times in the city. Reacting to a News 4 report on lapses in response times regarding some of the most serious calls involving the city’s exclusive ambulance provider, Rural Metro, Brown called it a “critically important issue.” … Rural Metro has a five-year contract with the city that includes penalty payments that range from $750 up to $25,000 depending on circumstances and the frequency of non-compliance. Non-compliance for a month carries a $1,500 fine. A full quarter of non-compliance can result in a $7,500 fine; four quarters could result in a $10,000 fine with 30 days to correct. Failure to correct after 30 days, could mean a $25,000 fine. … For Advanced Life Support Non-Life Threatening, Rural Metro was in compliance 82.88 percent. The contract requires that at least 90 percent of its calls are responded to in nine minutes, 59 seconds or less. For Advanced Life Support Life Threatening, the ambulance company had a compliance rate of 80.28 percent. The contract requires that at least 90 percent of the calls are responded to in eight minutes, 59 seconds. The county reports show that Rural Metro did meet the contract for the least serious calls known as Basic Life Support Emergent on average, in just over 91 percent of the calls. The monthly response times varied from a low of 89.4 percent in February to a high of 93.9 percent in March. …


New Rural Metro operators vow to ‘restore confidence’
Source: Chris Caya, WFBO, November 16, 2015

American Medical Response acquired Rural Metro October 31. The company’s regional CEO Thomas McEntee says more ambulances will be on the street during peak hours. … The new contract with Buffalo mandates better response times from the ambulance service. McEntee says new ambulances and other equipment is also on the way.

Rural Metro defends ambulance response time
Source: Claudine Ewing, WGRZ, November 2, 2015

A head-on car crash in Buffalo sent three people to the hospital, but there was a sense of frustration at the accident scene. The ambulance response time was noticeable, but Rural Metro said the response time was “appropriate.” The accident happened around 1:00 a.m. on East Ferry, east of Grider Street in the city. A photo-journalist on the scene noticed Buffalo Firefighters helping a victim in a vehicle.The victim had a neck brace on and it was 20-minutes before an ambulance arrived to assist the victim. … The [Rural Metro] official said the first ambulance arrived within four minutes, the second came ten minutes later and the third arrived ten minutes after the second ambulance. …
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Hawaii Keeps Secret What Happens In Its Private Prison

Source: Rui Kaneya, Honolulu Civil Beat, May 18, 2016

It was Aug. 7, and the department had learned that a 21-year-old prisoner from Maui turned up dead in his cell at the Saguaro Correctional Center, an Arizona prison where about 1,400 Hawaii inmates are housed. In a brief statement, the department passed on some scant details: The prisoner, Jonathan Namauleg, was found “unconscious and face-down” on the floor by his cellmate. Rushed to a nearby hospital, he was pronounced dead shortly after his arrival. … But the department has yet to even acknowledge any of the developments. In fact, for more than nine months, it hasn’t released a single follow-up statement — or the results of its investigation into Namauleg’s death. In many ways, the episode is a perfect illustration of the department’s attitude toward transparency: When it comes to troubling news out of Saguaro, it prefers to stay tight-lipped. …

… Five years before Naumaleg’s death, the murders of two other Hawaii inmates at Saguaro sparked concerted efforts to improve oversight and bring transparency to the state’s mainland prison operation. But no one in a position to impose accountability, then or now, has meaningfully done so — not the governor, not legislators, not the Department of Public Safety. Critics say the continuing lack of transparency makes it virtually impossible to assess how well the department monitors the performance of the state’s contractor, Corrections Corporation of America, despite a long history of problems. … Howard Komori, acting administrator of the Mainland and Federal Detention Center Branch, which oversees the state’s contracts with CCA, declined to comment for this story. For his part, state Sen. Will Espero, vice chair of the Senate Public Safety Committee, says he sees little choice but to keep faith with the department’s monitoring efforts — unless, he says, “someone tells me there’s a massive cover-up and corruption in the mainland branch.” …


Experts: Act Now To Improve The Contract With An Arizona Prison
Source: Rui Kaneya, Honolulu Civil Beat, May 2, 2016

Hawaii has little choice but to ink the contract with CCA, despite a history of problems at the company’s Saguaro Correctional Center in Eloy, Arizona — including the murders of three Hawaii prisoners and other legal troubles. But some experts caution against rushing into the deal. Instead, they say, the state should take this golden opportunity to negotiate for new conditions — not only to better guard against contract violations, but also to guarantee the safety of prisoners. …

… To be sure, the state’s current contract, signed in 2011, isn’t entirely toothless. For one thing, the state managed to avoid one common misstep: agreeing to have occupancy guarantees built into the contract — in the form of either a minimum quota of prisoners or a payment of monetary penalties for empty prison cells. This means that the state only pays CCA a per-diem rate — currently at $70.49 — for each of about 1,400 prisoners who are actually housed at Saguaro, instead of covering for 80 percent or more of the prison’s cell space, as commonly dictated under occupancy guarantees. … But it is clear from Civil Beat’s interviews with a number of experts, as well as prison-reform advocates, that the contract has plenty of room for improvement. One area in particular was singled out by many: It’s important to have a strong provision for “liquidated damages” that lays out monetary penalties, should CCA fail to abide by the contract. Isaacs said the provision comes in handy in deterring understaffing — something that for-profit prison companies are prone to do, she said. …

Prison Officials Quietly Move To Extend An Out-Of-State Contract
Source: Rui Kaneya, Honolulu Civil Beat, April 25, 2016

Hawaii’s practice of outsourcing prison operations won’t be ending anytime soon. Without much publicity, the Hawaii Department of Public Safety is moving to award a new contract worth tens of millions of dollars to continue housing the state’s excess prisoners on the mainland. And the state’s current contractor, Corrections Corporation of America, appears to have an inside track — despite a long history of problems, including the murders of at least three prisoners at the Saguaro Correctional Center, an Arizona facility where about 1,400 Hawaii inmates are housed. … The resulting contract, which takes effect July 1, would allow Hawaii’s longstanding mainland prison operation — first begun in 1995 as a “short-term solution to chronic overcrowding” — to remain in place for at least three more years, with options for two one-year extensions. Under the state’s current contract, the state pays CCA a daily rate of $70.49 per prisoner — an arrangement that amounted to more than $30 million in fiscal year 2015. … CCA has also invested heavily in lobbying in Hawaii. According to the latest filings with the Hawaii State Ethics Commission, it was among the state’s top lobbying companies in January and February, retaining six lobbyists and spending $21,624 during that period. And the terms of the request for proposals look tailor-made for CCA: As a minimum requirement, vendors must have a facility capable of handling at least 1,800 prisoners within 100 miles of a major airport — with direct flights from Honolulu. CCA has a number of facilities in its portfolio that can satisfy the requirement — including Saguaro, a 1,926-bed facility in Eloy, Arizona, about 70 miles southwest of Phoenix Sky Harbor International Airport.

Hawaii set to move mainland inmates to Arizona prisons
Source: Associated Press(HI), Jul. 8, 2006 12:00 AM

HONOLULU – Hawaii’s inmates housed on the mainland will be consolidated into two prisons in Arizona under newly signed contracts with a private prisons company. The state will send more than 2,500 inmates to the prisons run by Corrections Corp. of America at a cost of more than $50 million a year.

Sodexo Laying Off 70 Employees that Worked at the Waukesha School District

Source: Christie Green, WDJT, May 18, 2016

Sodexo will be laying off 70 employees beginning June 15 in Waukesha, according to the Wisconsin Department of Workforce Development (DWD) Dislocated Worker Program. … This action is expected to affect approximately 70 employees beginning on June 15, 2016. Waukesha-Ozaukee-Washington Workforce Development Area Rapid Response will offer Rapid Response services to the affected workers. …

State docks Bethlehem Area for charter school’s missing retirement payment

Source: Jacqueline Palochko, The Morning Call, May 18, 2016

The Bethlehem Area School District is the latest school district to have its state aid docked when a charter school missed a pension payment. The school district had money deducted when the Lehigh Valley Dual Language Charter School missed a payment of about $115,000 to the Pennsylvania State Employees’ Retirement System. … Bethlehem Area had around $100,000 deducted from its state aid, and the charter school will cut a check to the district to make up for that, Taylor said. The district is up-to-date on its tuition payments. District leaders will meet with the charter school on Monday to discuss this situation … But the issue of who is on the hook when charter schools miss pension payments is being played out in the state Supreme Court. Last week, the court heard a case involving a shuttered Monroe County charter school that failed to make $210,000 in teachers’ pension payments. The Lehigh Valley has a couple situations going on that are similar. Trustees of the Medical Academy Charter School in Catasauqua have voted to close it next month because of low enrollment. The school is carrying $2.5 million in debt, including $103,472 in accrued pension liabilities, according to financial statements. The Northwestern Lehigh School District listed outstanding PSERS money owned by Circle of Seasons Charter School as a reason why it voted to start a process that could lead to non-renewal of its charter. During February’s meeting, the Circle of Seasons administration noted that its PSERS’ accrual was $121,000, going back to the second quarter of 2015, and was intended to be paid down in March. …