Holy Redeemer school in Milwaukee gets barred from voucher system, vows to stay open
Milwaukee’s Holy Redeemer Christian Academy is being cut off from a significant source of public funding because of numerous financial issues, including failure to repay federal relief funds it allegedly wasn't eligible to receive, state officials said Wednesday.
The school's executive director, Bishop Sedgwick Daniels, disputed the allegations and said the school would go on as usual — with the help of private donors, if necessary.
State officials on Wednesday barred the school from the Milwaukee Parental Choice Program, which provides private schools with tax-funded vouchers in place of tuition for students from lower-income families. Last year, the school reported that 436 out of its 444 students were part of the choice program.
Daniels said about 400 students were enrolled in the school through the choice program for the upcoming school year. For those who want to stay with the school, he said the school will work to cover tuition, potentially with the help of parental fundraising and capital campaigns.
"We have a lot of friends across the nation," Daniels said. "When the dust settles, we'll still be standing."
The northwest-side school is run by the leadership of the church on the same property, Holy Redeemer Institutional Church Of God In Christ at 3500 W. Mother Daniels Way.
The Daniels family, whose members include fast-food executive Valerie Daniels-Carter and retired Quarles & Brady Chairman John Daniels Jr., is among the most prominent families in Wisconsin, with influence in business, social and religious circles.
Daniels said the school opened in 1986 as the first African American Pentecostal Christian school in Wisconsin, and it operated without voucher dollars until joining the program in 1998. He said they can do it again.
The school has struggled academically. On its most recent report card, reflecting the 2021-22 school year, the state Department of Public Instruction scored the school in the lowest category: "fails to meet expectations."
DPI says Holy Redeemer failed to make payments
In a letter to the school Wednesday, the Department of Public Instruction laid out a series of issues that led to its decision to cut off the school.
After the school was late to submit multiple required reports in 2021, DPI and the school came to an agreement: DPI wouldn't withhold funding if the school agreed that it could be barred if it continued failing to submit reports. The school continued submitting reports late, according to the letter.
The school didn't provide a complete 2021-22 financial audit until this May, and it provided its 2022-23 audit in June, according to DPI. DPI said the audits showed the school had issued over $20,000 in checks that it could not pay and had failed to pay multiple vendors because insufficient funds.
Daniels said DPI's statements were false and that four auditors found no problems with the school, though he didn't immediately provide the Journal Sentinel with documentation.
Also according to DPI, the school wrongly received over $530,000 in federal relief funds. In applying for federal funds for private schools, the school noted it had not received funds through the Paycheck Protection Program. However, Holy Redeemer church, which operates the school, did receive PPP funding, making the school ineligible for the other funding. Notified of the issue, the school did not repay the funds, according to DPI.
Daniels said that when the school was notified, his understanding was that DPI would remedy the error by taking the $530,000 out of the school's voucher payments.
In July, DPI told the school that the department had determined the school was not financially viable, or in a position to be able to sustain its operations. DPI gave the school an Aug. 15 deadline to either prove that it was financially viable or provide a surety bond.
According to DPI, the school "adamantly refused." Daniels said the school did provide the bond, though he didn't immediately share documentation with the Journal Sentinel.
Other Holy Redeemer school folded in 2021
Another school affiliated with Holy Redeemer, Kathryn T. Daniels University Preparatory Academy, known as KT Daniels, closed in 2021 after operating as a charter school for a decade.
In a 2021 letter about ending KT Daniels' charter with Milwaukee Public Schools, school CEO Floyd Williams said the school planned to "re-introduce" its brand. That summer, school leaders applied for a charter with the city of Milwaukee with another name: Institute for Preservation of African American Music and Arts. City officials have not approved that charter.
DPI says Holy Redeemer families can apply for other schools
In a letter Wednesday to families who had applied to Holy Redeemer Christian Academy through the choice program, DPI laid out options for those who choose to leave the school:
Families can apply to attend a different private school through the choice program. A new application period runs from Sept. 1 to Sept. 14 for the current school year.
Families can enroll in their public school district. Those in Milwaukee can contact SchoolTransfers@milwaukee.k12.wi.us for assistance, and should include their child's name, phone number and grade level. They can also call the Milwaukee Public Schools enrollment line at 414-475-8159 or complete the enrollment process online at mpsmke.com/enroll.
Families can apply directly to another private school or independent charter school.
For families interested in staying with Holy Redeemer, the school is planning further discussion at a school orientation Aug. 30.
Contact Rory Linnane at rory.linnane@jrn.com. Follow her on Twitter at @RoryLinnane.
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This article originally appeared on Milwaukee Journal Sentinel: DPI cuts off vouchers to Milwaukee Holy Redeemer Christian Academy
