Last year, when Michigan Technical Academy needed money for capital improvements and operations for its elementary and middle school, it turned to private bondholders for a loan.
The contract gave bondholders the right to all but 3% of the district's state school aid money in the event of default.
So when Central Michigan University revoked the district's charter this spring, CMU got its 3% cut of the July and August school aid payments, and bondholders got the rest.
That left nothing for teachers.
After getting no help from CMU, bondholders, or the state, Sajan George, the CEO of the district's non-profit management company, Matchbook Learning, says teachers will get what they are owed -- thanks to donations from its private supporters.
You can read excerpts from Sagan's letter to teachers below.
