Inside Sequoia Pathway’s Struggle: A Journey to Rock Bottom

Sequoia Pathway Academy has halted its bus service to the Central Arizona Valley Institute of Technology (CAVIT) in Coolidge, posing increased challenges for students like Lianna Nott, a 12th grader. This sudden discontinuation has left many students without reliable transportation during a critical time in their education.

Last September, the parent organization of Sequoia Pathway, Edkey, faced severe financial distress, merely 43 days away from bankruptcy, jeopardizing support for its 3,600 students, many of whom are in Maricopa. On a recent Friday, the organization sought emergency funds to settle a $1 million lawsuit from one of its creditors, Ocean Funding, among several others pursuing claims for outstanding debts.

Lianna Nott, who is on track to graduate in May with a high school diploma and a cosmetology license through CAVIT’s dual-enrollment program, is acutely feeling the effects of this turmoil. The bus service, which previously facilitated an hour-long commute for students from Maricopa to CAVIT, ceased operations at the start of her final semester without prior notice.

“I didn’t get any warning,” Nott expressed. “No one knew what to do.” This abrupt change has forced some students to drop out or seek alternatives, while Nott’s parents have had to adjust their work schedules to ensure she can attend school.

Initially, Nott’s class began with approximately 25 students. The number has dwindled significantly since then, as many have transferred or left the program altogether. “Everyone is pretty frustrated,” she stated, highlighting the emotional impact on her remaining classmates.

Edkey, a nonprofit charter school system managing 17 schools across Arizona, cited a national bus driver shortage as the primary reason for ceasing the transportation service. Dr. Yovhane Metcalfe, Edkey’s chief academic officer, acknowledged this ongoing issue faced by schools nationwide.

Former bus dispatcher Robert Stahmer noted severe operational problems, recounting incidents when malfunctioning buses were left stranded with students aboard. Edkey’s financial woes have become increasingly troublesome, intensifying scrutiny over the organization’s management and sustainability.

As Edkey navigates its financial challenges, it has implemented a hiring freeze and initiated layoffs, all while failing to meet significant financial commitments like employee payroll. Recent reports indicate that Edkey has not contributed to the Arizona State Retirement System since September, a situation seemingly acknowledged and only recently addressed.

Enrollment has decreased at Sequoia Pathway Academy, which has lost half its student body since 2020, while the nearby Maricopa Unified School District has seen growth. This decline exacerbates Edkey’s financial struggles, as funding is closely tied to student enrollment.

Moreover, an investigation into Edkey’s relationship with the microschool company Prenda raised questions about its business practices. This inquiry concluded without allegations of wrongdoing against Edkey, but it illuminated broad concerns within the charter school system.

While Edkey explores various strategies to stabilize its finances, including the potential hiring of external consultants, Lianna Nott remains committed to her education. She has already completed a significant portion of the required hours for her cosmetology license. “I would honestly encourage [future students] to do it. It’s a really good program for high school students,” Nott stated, while expressing skepticism about the specific circumstances at Sequoia Pathway.

She concluded, “If it was at Pathway, I probably would tell them not to do it.”