The Wilmington StarNews reports that Baker Mitchell’s Roger Bacon Academy, the for-profit education management organization that oversees four charter schools Mitchell founded in eastern North Carolina, as well as another company that leases school equipment and supplies both take in considerable sums of money from leasing land, buildings, equipment and supplies to Mitchell’s schools.
For the 2013-14 school year, Charter Day School in Leland and Columbus Charter School in Whiteville paid Mitchell’s Roger Bacon Academy about $1.5 million to lease their buildings. As part of their contract, the schools also agreed to pay property taxes and insurance, which totaled another $90,000; and building upkeep, for another $200,000. Douglass Academy, housed in the Peabody Building on North Sixth Street in downtown Wilmington, is leased from the nonprofit Friends of New Hanover County Community Action for $1 per year.
The company plans to open a fourth school, South Brunswick Charter School in Southport, this fall.
Mitchell incorporated both the Roger Bacon Academy for-profit education management company and the for-profit Coastal Habitat Conservancy school equipment and supply rental company in early 1999. He founded the first nonprofit charter school four months later, according to records from the N.C. Secretary of State’s Office.
Mitchell currently serves as the secretary for Charter Day School Inc.’s board of trustees, is the president of the management company and is the registered agent for the rental company.
That means Mitchell leads the company that manages the schools and the company that rents equipment to the schools and is an officer on the schools’ decision-making board.
Mitchell, who also sits on the state board that reviews and recommends new charter school bids in the state, has come under intense scrutiny lately as he has fought hard to keep the salaries of his public charter school employees secret, even though state law requires that information to be made available to the public.
Mitchell, who he himself has collected in the neighborhood of $16 million in taxpayer funds over the past five years for managing charter schools in southeastern North Carolina according to IRS filings, is reportedly under investigation by the U.S. Department of Education’s Office of Inspector General, but details of that case have not been made public.
One of Mitchell’s newer charter schools, Douglass Academy in Wilmington, is currently under a warning for low enrollment numbers. The school must boost those numbers to the statutory minimum of 65 early this fall in order to avoid closure.