Head Start centers close doors throughout Hampton Roads

CORRECTION: Community Development Institute is based in Denver. An earlier version of this story included incorrect information.

NORFOLK

The financially troubled Southeastern Tidewater Opportunity Project shuttered the Head Start program throughout Hampton Roads on Monday, telling parents it would no longer run the area's 31 centers.

In a letter posted at the closed centers, leaders of the anti-poverty agency said operation of the federally funded preschool program would be turned over to an interim agency with hopes of reopening on March 14.

"It is with a saddened and heavy heart that we must inform you that on Thursday, February 24, 2011, the Board of Directors of the STOP Organization - Hampton Roads, voted to relinquish the Head Start Program effective March 1, 2011," the letter said.

"This means that as of that date STOP will no longer have financial nor operational responsibility for the Head Start Program. We have begun to transition the program over to the interim grantee, Community Development Institute."

The letter was signed by Regina P. Lawrence, STOP's president and CEO; George H. Banks, chairman of STOP's board of directors; Lawanna M. Dowden, senior vice president for education and training; and Madeline Guerra, chairman, Head Start Policy council.

At a news conference Monday, Lawrence, who became STOP's president a year ago, said the agency's officers decided to close its Head Start centers after it became clear they would be unable to meet the March payroll.

The nonprofit agency is funded mainly with federal grants but also with state and local government money. Its latest tax returns showed it losing money in spite of revenue totaling $19.6 million.

The Head Start program reportedly consumes nearly two-thirds of its budget. The centers educate about 1,600 children, ages of 3 to 5. It operates centers in the five cities of South Hampton Roads as well as Franklin and the counties of Isle of Wight and Southampton.

The agency's financial woes have been apparent for months, including allegations that it did not accurately deduct payroll taxes and questions about why it gave employees more than $100,000 in bonuses.

"In the past, the agency has engaged in some practices that were not acceptable and did not meet the test of good stewardship," Lawrence said, declining to offer details. "The time has now come that we must turn the page and begin a new chapter of preserving our organizational integrity."

Lawrence said she has appointed an "acting chief financial officer" and would secure the services of "a forensic accountant to reconcile all financial activities" including a review of salaries throughout the agency.

Once the agency's financial house is put in order, she said, STOP would "seek a second chance to once again administer the Head Start program... We're still open for business."

Last week STOP officials went to Philadelphia to meet with Head Start officials to explain their financial difficulties. Kenneth Wolfe, deputy director of public affairs for the Department of Health and Human Services division that oversees Head Start, said it was clear from those discussions that STOP was unable to continue operating Head Start. Officially, he said, "it was their decision to relinquish the program."

Wolfe said CDI, based in Denver, was selected to temporarily administer the program until a full-time grantee is selected.

STOP leaders earlier asked state officials to help unravel its financial problems. Mark Grigsby, who heads the community services division of the Virginia Department of Social Services, said Lawrence called him about the agency's finances six months ago seeking advice. He said he visited with STOP's board last week.

"They've been under some severe financial pressures," Grigsby said. "They were running a deficit in the Head Start program, which is what's causing this problem at this point. Hopefully they'll get everything worked out."

Meanwhile, parents of Head Start children in Hampton Roads scurried to make arrangements.

Kim Ballard, of Chesapeake, said she doesn't know what she's going to do.

Her youngest son, 4-year-old Keionta, goes to the Broadlawn Head Start Center in Chesapeake.

When she picked him up Friday, she was told the program would be closed Monday.

"He was so miserable, because he wanted to be in school," she said. "Oh my stars, I just pray that they open it up."

Pilot writers Harry Minium, Elisabeth Hulette and Dave Forster contributed to this report.

Jeff Sheler, (757) 222-5563, jeff.sheler@pilotonline.com