Troubled PCJDS launches major restructuring

After weathering financial crises that threatened to close the Pinellas County Jewish Day School before year’s end for two consecutive years, an advisory committee of community business leaders and a new board are implementing a major restructuring plan intended to guarantee the school not only remains a respected educational institution, but also financially viable in future years.

“The key to the restructuring is financial responsibility and a solid business plan,” said David Schechter, new PCJDS Co-President, Advisory Committee member as well as PCJDS parent.

The new board has launched a $1 million fundraising campaign to eliminate outstanding debt (except the mortgage)  and to provide for the 2010-11 school year. If the $1 million is raised and the revenue from tuition matches projections, the school should be able to confidently execute the new business plan according to budget projections, Schechter said.

The board eventually hopes grants will fund an endowment to provide for the future of the school, and alleviate the need in some years for emergency campaigns to keep the school open.

The restructuring included:

• the resignations of the previous board and officers.

• a new board led by Schechter and Co- President Stephanie Stein, a former PCJDS Board president, Advisory Committee member, and alumni parent. Schechter served on the previous board and was asked by the Advisory Committee to return.

The new board, still in formation, includes Advisory Committee members, a representative from both the Parent Advisory Committee (PAC) and the Parent Booster Association (PBA); a Board of Rabbis representative, Federation representative, parents and community members.

Announced board members include Co-president Schechter, Saul Schechter, Liz Sembler, Craig Sher, Alan Schwartz, Jean Wittner, Mark Benjamin, Diane Sembler-Kamins, Kevin Tralins, and  Melissa Terzi and Michelle Gordon as PBA representatives. Alan Bomstein is heading the finance committee overseeing the working budget on a quarterly basis.

In addition to Benjamin, Bomstein Schwartz Sembler-Kamins, Sher and Wittner, the Advisory Committee consists of Joann Miller, David Robbins and Co-president Stein.

• The new board has launched a search for the permanent replacement of the former Head of School who resigned last year to return out-of-state for family reasons.

• A presentation to the parents, made March 18, introducing the new leadership structure, an overview of current and future finances, as well as a question and answer period.

The restructuring plan is in response to advice from the Advisory Committee, the PAC, the Jewish Federation of Pinellas and Pasco Counties (of which the Day School is a beneficiary agency), major benefactors and financial experts.

A key component of the financial plan for the future, according to Schechter and Stein, is seeking government and foundation grants, and creation of the school’s first endowment.

The school is also looking for a part-time Finance Officer. In the interim, PCJDS has employed, a CPA previously hired by the Federation to review the school’s financial situation.

The restructuring and resignation of the previous board and officers came on the heels of a successful $350,000 emergency campaign by the school, with the assistance of Federation staff and board, to assure the school was able to complete the current year. The sub rosa emergency campaign drew mainly from the “PCJDS family” — alumni and current parents and grandparents, and other PCJDS supporters and benefactors.

Proceeds from the emergency campaign are being held in escrow by the Federation and being paid out monthly.

Like many people and most non-profits, the PCJDS financial woes were greatly compounded by the overall crisis in the economy.

It couldn’t have come at a worse time. PCJDS had made a major property purchase and a phase one expansion. The Madoff scandal, tanking stock market and economy downturn affected donors. Business losses, loss of jobs and reduced income made it impossible for some families to keep their children in the school even with financial aid, and more families needed financial aid, Schechter said.

“About 50 percent of the student body has been on (some degree of) scholarship the last couple years,” Stein said. “Before that it was 35 percent.”

She said the school remains committed “to maintaining a high degree of financial assistance so the school will be a cross-section of the community.”

Schechter and Stein said the most important thing the community and parents can do for the school now is to look forward, not back. To assure the future, they said, the school needs funding and enrollment — with the emphasis now especially on enrollment.

“We are extremely confident the restructuring plan will put the school on sound footing. We have only just started. The process is ongoing and we will address other concerns, but right now the concern is enrollment,” Schechter said.

The deadline for enrollment is in about a month. Currently, there are 160 students enrolled, down from a pre-recession high of 200.

For more information about PCJDS or to make a donation, call (727) 588-0100.