Conserve School Changes From 4 Year to 1 Semester Model
Saturday March 7, 2009
James R. Lowenstine had no kids of his own. But he had made a ton of money as the CEO of Central Steel, a steel company in the mid-west. So he left a trust to set up a school for gifted high school children. Conserve School opened in 2002. Things went along according to plan until the economic meltdown of fall 2008. The trustees responded to their diminished financial resources by announcing that the school would change from a four year school to a semester school for high school juniors over the next 18 months. This left many parents unhappy to the point where they are suing the trustees.
The thing which intrigues me is that the income from the endowment is substantial. So I cannot understand why closing the school is really necessary. What do you think? Please read the New York Times article about the suit and leave a comment here or a post in the Private Schools Forum.
Comments
check out the Conserve Community blog for more information. We could use as much legal, financial, or advisory help as possible.
http://www.bringbackconserve.com
Thank you for paying attention to this story. Like the looter after the hurricane, like the vultures to road-kill, so is the action of the trustees of Central Steel & Wire in regards to their management of Conserve School. Clearly they thought everyone was so distracted by the “dismal financial outlook” that all would fall for their line. But education is a long-term investment and so should be the investments that fund education. What is really going on here? It is clear that this young school was succeeding. I wonder what successful product off the line a Central Steel & Wire has been abandoned because of economic jitters. I doubt any. It seems that bright, dedicated, gifted young students are the most disposable products at Central Steel and Wire.
The potentially fatal flaw here was the benefactor’s failure to have a competently drawn trust document prepared. Is his intent being carried out? Do we know what his true intentions were? It’s possible that the lawyers involved in the drafting of the trust document had mixed loyalties, preparing an agreement that would allow the surviving operators of the business, who would continue to pay these attorney’s after Mr. Lowenstine passed away, to undermine his intentions when it suited their needs. It may be necessary to look beyond the legal theories and start examining the individuals involved at every level of this situation, and whether each of them is carrying out their fiduciary and professional responsibilities.
The parents may sue, but Mr. Lowenstein established in his trust that if Conserve school became unfeasible, the money was to go to his alma mater Culver in Indiana. Culver is suing to get the money. Culver will end up getting the money because the Conserve board has said that the school is no longer feasible and the parents lawsuit will play into Culver’s favor and render their suit mute!
Cameron,
Mute? Or um, moot. English is fundamental. But they probably didn’t teach you that at Culver.
The trustees of Conserve School, a NON PROFIT organization, are also the trustees at Central Steel & Wire, a FOR PROFIT company. The loyalty of the trustees, as they have admitted, is to the company and not the existance of the school. Conflict of intrest? I’d say so.
Robert,
I see you are having trouble understanding “why closing the school is really necessary.” I would have trouble with that one too. Luckily, we don’t have to ponder that dilemma. The school is not, and never was, closing. Conserve School is changing its present model of a four-year secondary school for grades 9-12 to a semester school primarily for high school juniors. Perhaps you are familiar with the Maine Coast Semester or the Mountain School, two other quality semester schools.
By changing to a semester school, Conserve will be well-situated to weather the impact of the current and projected financial climate. Most importantly, Conserve will continue to give kids the opportunity to experience the magic that everyone agrees happens here.
To learn more about the current offerings at Conserve School, its transition year, and the new Conserve School Semester, please visit ConserveSchool.org
Robert,
You SHOULD have trouble understanding that. There is no sense to it. I’m not sure who Kim is (sounds like she must work for Conserve), but there is a dilemma to ponder. The school clearly does not need to make this change. Atleast not when the school has made ZERO effort at fundraising and ZERO effort at finding new ways to save money (please check out the comparison with Wayland – link below.)
To learn more about the efforts to save Conserve School, please visit bringbackconserve.com.
https://www.bringbackconserve.com/index.php?option=com_content&view=article&id=63:comparisons-and-analysis&catid=36:contributor-articles&Itemid=83#comments).
Hi Robert,
Kim must be Kim Spagnoli-Coordinator of Student Services at Conserve School.
What Kim doesn’t understand is that James Lowenstine wanted a school as defined by the State of Wisconsin (according to his Trust document). A semester program does not fit the State of Wisconsin’s definition of a school.
So yes, Kim, Conserve School is closing.
It is only necessary for the Trustees to close the school, not for anyone else. You see, the Trustees run Central Steel & Wire through the Trust. The Trust owns 59% of Central Steel & Wire. The Trustees are only looking out for their own personal best interests .
If the Trustees wanted to act in the best interest of the School (the benificiary of the Trust) all they would have to do is diversify their holding of Central Steel & Wire, but this would jeopardize their own personal best interests .
Let’s see now… board of directors of the School … Trustees of the Trust … directors of Central Steel & Wire … ALL THE SAME BOYS!
Can you say ‘conflict of interest’?
ah, new developments today 4/14/9. The Wis AGs office has decided to intervene and support the plaintiffs cause. This is good news!
See bringbackconserve.com for more info.
http://www.urbandictionary.com/define.php?term=conserve+school
It’s a long story and it’s not about financial deficits. When one starts exploring the concepts of leadership, accountability, integrity and desire, reasons for this change will emerge. Central Steel and Wire has experience in dealing with steel — not people.
I am not a plaintiff in the lawsuit but I am a Conserve School parent. The “Preserve Conserve” lawsuit suffered a major setback today, pushing back the timetable for a final resolution of the school’s fate until later this summer. This means that most of the kids will have to find new homes/schools for next year. Sending a child to boarding school is a huge decision that involves trusting other adults to act with the best interests of your child in mind. To NEEDLESSLY push young people out of what had been a happy, loving, safe place with an extraordinary sense of community is simply cruel, and I am ashamed to have entrusted my son’s well-being to people who could inflict this kind of emotional trauma on a group of adolescents. I contrast this with the leaders of the school that my son attended for elementary and middle school, who, when faced with true economic difficulty (having no endowment whatsoever) put their own property on the line to secure loans and worked tirelessly to leave no stone unturned to keep the school functioning — for the good of the kids.
Frankly, I’m delighted about the change. I would love to send my gifted, environmentally-oriented daughter to the Conserve School for the new semester program. The old 4 year program was off limits for our family, due in part to the steep tuition, and in part to the fact that 4 years of boarding school does not fit into our family’s value system. Who is Conserve Community trying to fool? The new program will serve far more students, from more diverse backgrounds, than the old program ever would have.
The real question is who Nancy is trying to fool. If she really would love to send her daughter to a environmentally focused semester program, she would be aware that dozens of them exist. Conserve School is not breaking new ground, they are going head first into a crowed and struggling market.
I think it is obvious that the fact that the parents and alumni fought so hard for their school, is proof of Conserve School’s accomplishments and potential as a 4 year school. Sure there is a place for semester schools, but the reality is that 4 years of education is much greater than 8x that of a semester school’s.
Anybody who is considering a semester school, should realize that there many options, allow your child to enjoy less harsh Winter, and more environmental education in a more enjoyable climate.
To Nancy:
As a student who previously attended the Conserve School, I’d just like to point out that the tuition was never a problem for my family. I’m not saying that because we had a lot of money to toss around, but rather the school was rather accommodating to my family’s income. We paid well under the actual tuition, and from what I know the Conserve School extended this benefit to many families. If you didn’t know that, and if you didn’t realize there were other environmental semester school programs, I would suggest you extend your research if you truly wish to benefit your daughter.