Embattled charter school owes district $2.6 million

PHILADELPHIA (WPVI) -- Leaders in the Philadelphia School District met Wednesday to discuss the next steps it will take against a struggling charter school that suddenly had to scale back, leaving hundreds of students looking for a new school.

The crisis is at least two months from being resolved as the head of the large charter struggles to keep what's left of the school open against tough odds.

It was a subdued hearing this morning as an examiner continues the probe into the convoluted crisis surrounding the Walter Palmer Charter Schools, operated by the embattled civil rights veteran Walter Palmer.

The high school has been shut down by the school district and the courts for having double the amount of students they were sanctioned to have.

At least 200 parents are still scrambling to get their kids placed somewhere else.

Now Palmer is battling to keep the lower school open - K-8 with 675 students enrolled.

The district is putting heavy financial pressure on Palmer.

School district spokesman Fernando Gaillared explains, "They have to pay back the School District of Philadelphia $1.5 million. There is another amount - a $1.1 million in over payments they have received directly from the School District of Philadelphia. And that is directly connected to them billing us for students that they were not serving."

When we asked if he has the money to pay the district, Walter Palmer told us, "No, at this point we don't. Absolutely not. No charter school has that much money on hand."

Sometime after the 1st of the year the school district is expected to rule on whether to revoke the Palmer School license altogether.