Montessori dreamers now hoping for a miracle

Founders of middle school need money to help keep program afloat

For the past few years, Jeff and Stephanie Pernell have poured everything they have - time, teaching ability and money - into developing a Montessori program for seventh- and eighth-graders in the Flathead Valley.

It was a dream they believed in so strongly that they were willing to put their home and savings on the line.

"When we first started moving on this, I told Stephanie, 'I'm willing to bet our life savings and bet the house that this will be successful,'" Pernell said. "What I didn't realize was I was possibly putting my family on the line with the house."

Early on, a middle-school Montessori school seemed destined for success. The community was interested and supportive. Parents and students applauded their pilot program, which began last fall. The Pernells paid to relocate, renovate and expand an historic church to use as the school.

But now, one week before classes are supposed to begin, the future looks grim for Flathead Valley Montessori Academy - and for the Pernells. They had to mortgage their home to pay for the school and its additions, and are now nearly $1 million in debt.

"Our accountant put it quite plainly that we've got about two months before we're out of money - and that's personally out of money," Pernell said.

Three years ago, Woodland Montessori Director Sally Welder asked the Pernells whether they were interested in starting a Montessori program for seventh- and eighth-graders. They were heavily involved with the preschool, but the Pernells long had wanted to start their own school. It seemed the perfect opportunity.

"We said yes, maybe not realizing all the stress and the amount of work that it would take," Jeff Pernell said.

Typically, schools "start small and expand," he added. "And we took the giant leap."

In January 2006, they purchased St. Catherine's Catholic Church in Bigfork. A month later, crews moved it to its new location on North Somers Road. For more than a year, the Pernells, a building crew and a handful of parents have worked on transforming the church into Flathead Valley Montessori Academy's permanent facility.

"We had people telling us to build for expansion … so we built quite large," Pernell said.

They thought using the church would save money, he added. Instead, converting the existing structure into a school may have cost more than building from scratch.

To cover the cost of construction, the Pernells mortgaged their house. They also used their life savings and most of the money they made selling their old home in Henderson, Nev.

"We ran through that relatively quickly," Jeff Pernell said. "It doesn't take very much when you're in construction."

Banks were reluctant to lend to a nonprofit, he added.

"They financed us with the hope that in the future, the school could purchase the property back from us," he said. "We had that dream."

In addition to construction, the Pernells also had their students to consider. They launched their pilot program in fall 2006 with four students.

Stephanie worked as the lead educational adviser; Jeff served as the lead administrator. Neither earned a salary.

As the 2007 school year approached, they began to doubt whether they could keep the school going. They had six students enrolled, only two of whom were paying full enrollment. The others were on scholarship.

In addition to the scholarships and operating expenses, the Pernells also had their mortgage. Between the school and their house, their payment is more than $6,000 a month.

Part of that will alleviated by Woodland Montessori School, which plans to lease space in the new school. Even with the lease, however, the Pernells will be about $5,000 in the red each month.

The new school year is scheduled to begin Sept. 4. As the date drew nearer, the Pernells realized they had to make some big decisions quickly.

"On Wednesday evening, Stephanie and I stayed up really late and did some soul searching," Pernell said. "We decided that the best thing to do is get out of the school. We haven't pulled a salary since we did this."

Pernell's father volunteered to float the mortgage while the school is on the market, "and we go out and get jobs that actually earn an income and make our own ends meet," he said. "It has put us in a situation where we can't be volunteering and go forward with this."

Accountants have told them they need 21 students just to break even.

"And that's paying full tuition," he said. "That's about $540 a month per kid."

Because the preschool, which has a healthy enrollment, is sharing the space, the Pernells don't want to sell the school before next summer.

They should have enough to make it through the school year, Pernell said. One parent has offered to pay $2,000 a month on top of tuition.

"I do believe we're going to be able to do it this year and make it go this year," he said. "But everybody's got to understand we can't expect a $70,000 donation every year to keep it afloat."

The Pernells have written several grants, none of which have been successful. Now they're hoping for a miracle; without it, they'll have to sell the school.

"Nancy Lisk, one of our parents, is so adamant about making a miracle happen," Pernell said. "And I hope it does, I really do."

Selling would be particularly difficult after the time they've put into it, he said. In addition to the work they've done during the past few years, Stephanie spent the summer in Houston getting her Montessori training.

"It's difficult to close the door on that, and it's not something we want to do," Pernell said. "But it's a reality; it's a financial reality."

For more information, call the school at 857-3303 or visit www.flatheadvalleymontessori.com.

Reporter Kristi Albertson may be reached at 758-4438 or by e-mail at kalbertson@dailyinterlake.com.