A charter school in Palmdale, California, raised nearly $30 million in bonds for its new building. But as matters stand, the school will never open. Charters are risky. They open, they close. Sometimes states close more charter schools than they open. That’s business. Where is Enron, Braniff Airlines, all sorts of brands that disappeared? Gone without a trace.


For the last year, construction on the corner of Avenue R and 40th Street East in Palmdale hummed along as a massive school campus took shape.

On its Facebook page, Guidance Charter School posted photos of students holding shovels adorned with yellow ribbons and contractors pouring the foundation for what would be an 87,000-square-foot campus with a swimming pool, library and playing fields — paid for with nearly $30 million in bonds.

Less visible was what was happening behind the scenes, as the local school system raised alarms that threatened Guidance’s existence.

The Palmdale School District’s board of trustees, which first authorized Guidance 17 years ago, voted in January to close the school, citing concerns about poor academic performance and questionable financial operations. As the new campus rose, charter officials launched a series of appeals, the latest of which came before the Los Angeles County Board of Education this week.

On Tuesday, the board rejected Guidance’s last-ditch effort to open for the 2018-19 school year. Unless a court overturns Palmdale’s decision, Guidance Charter School will not be able to enroll students — or receive the state funding that comes with them. But it still will be responsible for repaying the loan.

Supporters say the school is a victim of a process that puts decision-making power in the hands of the very districts that compete with charters for students and funding. Opponents see it as proof that charter schools, regardless of the quality of the education they offer or the extent of oversight they receive, are able to access bond money too easily.

The school’s executive director, Kamal Al-Khatib, blames its closure on the Palmdale School District, which he said purposely set the charter school up for failure in order to win students back. In the spring of 2017, less than a year before voting not to renew the school, the district had declared that Guidance was on solid ground, he said…

Guidance was founded in 2001 by Muslim leaders who promised to offer students a secular education and Arabic instruction.

The school leased space from a mosque owned by the American Islamic Institute of Antelope Valley, a religious organization run by the charter’s founder and its executive director, which would later prompt a host of conflict-of-interest concerns. Guidance’s ties to the mosque — and the thin partitions erected to separate its students from a prayer room — drew criticism from the American Civil Liberties Union and the Anti-Defamation League that there was not enough of a wall between church and state.

Regardless, the school grew. It had opened with 65 students but by last year had about 900 in grades K-12. And every five years, when its right to operate came up for renewal, the Palmdale school board voted to keep it open. Guidance also rented classroom space from the district…

When district officials voted not to renew the charter, they cited Guidance’s lagging academic performance as their primary concern.

Although its students’ scores on the state English exam in 2017 were roughly comparable to their peers in the district, according to Palmdale, math was a different story. In that subject, scores at Guidance were worse than those at most other schools in the area; none of the charter school’s 11th graders tested at grade level.

Many of Guidance’s students didn’t graduate, according to county officials, who said its drop-out rate was about 23% for the class of 2016. Palmdale officials found that even when students did graduate, many were not prepared to go to four-year colleges. According to the district, of 32 students who graduated from Guidance in 2014 and 2015, 24 had not completed the courses required for admission to the University of California or California State University systems.

The district also flagged Guidance’s fiscal operations and governance structure. It accused Al-Khatib of having financial interests in several of the school’s transactions, including its lease with the American Islamic Institute and a roughly $2-million loan from a related company called Guidance Charter School Services LLC.

Guidance’s lawyers disputed the claims and said Al-Khatib’s role at the mosque was voluntary and unpaid.