SSFS Will Stay Open

[Anonymous]

Anonymous wrote:Q: How much is needed for the school to be debt-free?
The school has $20MM of tax-exempt bonds outstanding, collateralized by the campus and other real property. Additionally, there is a $2M bank loan due in full in October 2025.

They do understand that bonds are debt, right? It's not totally clear from their answer here.

I was trying to understand how did the original 14-16 million over 3 years now turn into 20+2 (22) million? Where did the extra 6 million come from? Someone just discovered 6 million of forgotten debt?

[Anonymous]

“Following the 2025–2026 school year, we expect our leadership stability and strong financial backing to drive increased student enrollment”

Hmmm, I don’t see that as an expectation at all …. Certainly no guarantee. Unless someone just continues to dump cash to cover any deficit.

I can’t say the FAQ is quelling my nerves. Not being a troll. Just saying there is a lot of “trust” still. Not much to say it’s verified. Guess I need to make my pick in 2 weeks.

And “we will know the enrollment after the 15th” really?! Why can’t we just be told what the enrollment was at time of cancellation? Surely that’s a good metric of the best expectation of next year??

[Anonymous]

“We will align faculty and staff needs with enrollment data to ensure appropriate staffing levels. At this time, we expect to maintain and honor our current programs.”

So number of staff depends on number of kids.
Number of kids will not be known till 15th
This means they don’t know how many staff will return since they only need enough to cover the kids.

Seems kind of shaky.
Also “expecting” everything with the optimistic lens of everyone is coming back seems like those expectations may need to change …. If the kids actually don’t …..?

[Anonymous]

The point is that they very directly said, truthfully, or not, that enrollment has absolutely zero impact on the ability of the school to function as a going concern.

I have no reason to doubt that, and take them at face. That said, I have no understanding as to why they would not give more specifics to provide the assurances that understandably trepidatious families deserve. A simple statement saying that they have deposited $XX million, are hoping for more, but can survive with that amount would go a long way.

If that is not actually the case, then the answer about natural disasters, or other exogenous events being the only possible headwind is disingenuous and raises concerns about the truthfulness of other answers.

[Anonymous]

Anonymous wrote:The point is that they very directly said, truthfully, or not, that enrollment has absolutely zero impact on the ability of the school to function as a going concern.

I have no reason to doubt that, and take them at face. That said, I have no understanding as to why they would not give more specifics to provide the assurances that understandably trepidatious families deserve. A simple statement saying that they have deposited $XX million, are hoping for more, but can survive with that amount would go a long way.

If that is not actually the case, then the answer about natural disasters, or other exogenous events being the only possible headwind is disingenuous and raises concerns about the truthfulness of other answers.

There is no way enrollment has zero impact on the school staying open. Cause if that’s true it means if enrollment were 1 student they can still stay open. Clearly that can’t be true.

[Anonymous]

Sounds like if they don’t get enough kids they will have to let go of some staff.

We have decided not to stay. We are continuing on with our applications at other schools. I have a child who deals with anxiety pretty and this situation did not help at all! He doesn’t want to return next year and I support his decision.

[Anonymous]

Anonymous wrote:Sounds like if they don’t get enough kids they will have to let go of some staff.

We have decided not to stay. We are continuing on with our applications at other schools. I have a child who deals with anxiety pretty and this situation did not help at all! He doesn’t want to return next year and I support his decision.

I agree, but they claim otherwise:

The only foreseeable scenarios that could disrupt operations would be an unforeseen natural disaster or a significant international economic crisis.[i]

They don't list enrollment factors as an existential threat, which imputes either a significant, guaranteed funding commitment or being totally out of touch with the situation that they're in.

[Anonymous]

As a spectator with no affiliation to SSFS, I find this moment very inspiring and I am filled with joy hearing that families have a viable option to stay. The efforts of the Coalition should be applauded. This is an extraordinary achievement and could serve as a teachable moment for other independent schools. I encourage those with doubts to get involved and be a part of the change for the school you love. Congratulations to the SSFS student community !!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Q: How much is needed for the school to be debt-free?
The school has $20MM of tax-exempt bonds outstanding, collateralized by the campus and other real property. Additionally, there is a $2M bank loan due in full in October 2025.

They do understand that bonds are debt, right? It's not totally clear from their answer here.

I was trying to understand how did the original 14-16 million over 3 years now turn into 20+2 (22) million? Where did the extra 6 million come from? Someone just discovered 6 million of forgotten debt?

I would assume it is that 14-16 matures within 3 years, and the remainder has much longer call dates and/or different terms. I'd also imagine with new footings and the ability to repay a chunk of this debt that's due first, they should be able to recap the remaining tranche(s).

[Anonymous]

We are a SSFS family and I have posted a few times about my concerns about transparency. I think the school is now doing a pretty good job considering the uncertainties that exist.

Here’s my take:
1) the $22M is the total debt the school has but some likely is long term and does not need to be retired in the next 3 years.
2) enrollments were down substantially before the school closed in April and that’s why they aren’t sharing the numbers
3) some faculty will have to be laid off but they will work hard at retaining as many as they can especially those most beloved
4) the school will have a new normal as a smaller school - more like Field or other smaller schools with more like 50 kids per graduating class
5) they will absolutely be open for all of 2025-2026 with these leaders in place. But there is a chance that many of the families that stay now because it’s too rushed to apply out will actually leave next year. And if they see that writing on the wall (people asking for recommendations, etc.) the new leaders may not stay.
6) on the other hand, if the school vibe is still preserved and the hemorrhaging stops, then things will stabilize
7) true growth of enrollment is not realistic in these new few years - people won’t take the risk. And will be harder after than because of the demographic cliff.
8) Overall I guess the school survives as a special but smaller place

We will still be leaving because of some of these uncertainties and because we want a bigger not smaller high school experience. But I wish the school and this community well.

[Anonymous]

I’ve heard a number of students are leaving anyway..,don’t want to deal with the uncertainty, why didn’t the board find the friend group before their big closing announcement…another leadership failure to me.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like if they don’t get enough kids they will have to let go of some staff.

We have decided not to stay. We are continuing on with our applications at other schools. I have a child who deals with anxiety pretty and this situation did not help at all! He doesn’t want to return next year and I support his decision.

I agree, but they claim otherwise:

The only foreseeable scenarios that could disrupt operations would be an unforeseen natural disaster or a significant international economic crisis.[i]

They don't list enrollment factors as an existential threat, which imputes either a significant, guaranteed funding commitment or being totally out of touch with the situation that they're in.

and clearly they’ve been so good at being transparent that if they say only an act of god will close the school next time it must be true.

Also the fact that a few volunteers turned the situation around in 7 days that the board had been working on for years kind of seems to indicate that maybe they’re a little out of touch with the situation they’re in? Just thinking out loud.

[Anonymous]

Dumb question....is there no way that the school can get out of the massive land footprint and downsize to a smaller physical plant, reducing/eliminating debt along the way and maybe even generating some income from transacton?

[Anonymous]

Anonymous wrote:We are a SSFS family and I have posted a few times about my concerns about transparency. I think the school is now doing a pretty good job considering the uncertainties that exist.

Here’s my take:
1) the $22M is the total debt the school has but some likely is long term and does not need to be retired in the next 3 years.
2) enrollments were down substantially before the school closed in April and that’s why they aren’t sharing the numbers
3) some faculty will have to be laid off but they will work hard at retaining as many as they can especially those most beloved
4) the school will have a new normal as a smaller school - more like Field or other smaller schools with more like 50 kids per graduating class
5) they will absolutely be open for all of 2025-2026 with these leaders in place. But there is a chance that many of the families that stay now because it’s too rushed to apply out will actually leave next year. And if they see that writing on the wall (people asking for recommendations, etc.) the new leaders may not stay.
6) on the other hand, if the school vibe is still preserved and the hemorrhaging stops, then things will stabilize
7) true growth of enrollment is not realistic in these new few years - people won’t take the risk. And will be harder after than because of the demographic cliff.
8) Overall I guess the school survives as a special but smaller place

We will still be leaving because of some of these uncertainties and because we want a bigger not smaller high school experience. But I wish the school and this community well.

I like your interpretation, but how does the school survive as a smaller entity while maintaining the physical space that it has, and servicing its debt? If Field that debt and a campus that big, it would be in deep trouble too, right?

[Anonymous]

Anonymous wrote:Dumb question....is there no way that the school can get out of the massive land footprint and downsize to a smaller physical plant, reducing/eliminating debt along the way and maybe even generating some income from transacton?

The school previously indicated that the gift of land depended on the land staying in one piece. So not sure if that means new circumstance allows them to break that clause. But this is what they said initially