The school has been hit hard by the recession and housing crisis, relying heavily on money from the sale of houses built by students as well as state and federal funds.
ISUS, or Improved Solutions for Urban Systems, serves students ages 16 to 22 who have previously dropped out of school; about 70 percent have had brushes with the law.
ISUS students can earn high school diplomas, college credits and industry credentials in construction, health care or manufacturing.
“You’re actually not employable except at minimum wage without a high school diploma and some kind of credential,” said Ann Higdon, president and founder of ISUS. “That’s what we saw a dozen years ago.”
The school has earned multiple local and national awards for its combination of strong academics and trade skills, including the Points of Light Award in 2001 from President George H.W. Bush and the Ohio Senate Exemplary Achievement Award in 2010.
ISUS, founded in 1992, has built and sold more than 50 area homes, incorporating technology that includes green construction and the use of machinery operated by computers.
All three of the ISUS academies also received “excellent” ratings for academics on the most recent state report card.
“While the economic model needs tweaking, the educational model is superb,” Rice said.
Funding for the school has been compromised in the last few years by the recession, since the school generated revenue through the building and selling of homes.
“Even if we can build homes, the client base that would buy those homes can’t get the financing they would need,” Rice said. “We have had three or four homes for a year that we can’t sell. That cuts our cash flow down to a dribble.”
He added that since the school can’t put its construction students to work, enrollment drops and drags state funding down with it.
The school enrolled 300 at its peak in years past, but was down to fewer than 200 students for 2011-12.
State and federal grants and earmarks also provided funding for ISUS.
“We used to get a great many grants but, because of cash flow, we have fallen behind our debt obligation,” Rice said, “which then makes us less attractive for grants.”
This winter, foreclosure proceedings began on the ISUS building at 140 N. Keowee St., and a receiver was appointed to oversee the school’s business.
Rice said the foreclosure had not gone through as of Wednesday, but the building’s sale could help toward the school’s $2 million debt.
Higdon and Rice both said there are buyers interested in the building, including businesses that may wish to use the skills of ISUS students.
Another group that could be part of ISUS’s future is CountyCorp, which Higdon said has agreed to share its Affordable Housing Budget with ISUS.
“CountyCorp would purchase, finance and lease or sell the homes built by students,” Higdon said. “Going forward, we’re looking at doing housing for homeless veterans.”
Calls to CountyCorp were not immediately returned.
Higdon said she has been encouraged by this support.
“What ISUS is focusing on is, ‘Where is the support coming from?’ ” she said. “I think ISUS is too good of an idea to give up on.”
This year, ISUS was able to graduate about 60 students and help the 60 to 100 remaining underclassmen apply and transfer to other local schools.
Rice said many will attend Mound Street Academies in Dayton, which serves a similar demographic.
“The thing that breaks my heart is that I’m used to, for 20 years, working with students,” Higdon said of the hiatus. “In 20 years, we’ve learned a lot. Not only to do it again here, but how to reclaim kids and how to do good work with them.”
Rice said ISUS had a staff of about 38, who he knows cannot sit idly by while the school’s financial situation is addressed.
“I only hope we can replicate that staff,” he said.
Rice said ISUS is a crucial asset for the Dayton area, both for students and to attract new businesses. He is confident it will resume classes next year.
“ISUS helps young people who have dropped out and fallen off the right path, so to speak,” the judge said. “It helps them academically, and provides them not only with life skills but with the work skills needed to succeed.”
The ISUS Board of Education is expected to formally approve this plan at its June 28 meeting.
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