Volume 6 Number 25 - Tuesday, June 22nd, 2004

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Published by The National Herald, June 18, 2004

St. Basil Academy Wins Appeal

By Theodore Kalmoukos
Special to The National Herald

Judge Rules OCFS Decision ‘arbitrary and capricious’

BOSTON - An appellate judge of the Bureau of Special Hearings of the State of New York has reversed the decision made on January 2, 2004 by the New York State Office of Children and Family Services to close St. Basil Academy.

Judge David Molik, in a sixteen-page decision, called the reasons given by the Office of Children and Family Services as “arbitrary and capricious.” The original decision by the OCFS had cited the following five reasons for the denial of a license to St. Basil: “1) The Appellant’s history of unlicensed operation; 2) history of non compliance with the Interstate Compact on the placement of children; 3) lack of corporate authority; 4) failure to make adequate provision for the education of children; and 5) fiscal viability of St. Basil.”

The judge issued his final decision as follows: “The determination by the Office to deny the application of Father Constantine Sitaras, Executive Director, St. Basil Academy, for an operating certificate was not a valid exercise of its powers of supervision and enforcement. Therefore, that determination is reversed.”

The children feel “relieved and excited.”

Expressing his joy over the decision,  Fr. Sitaras said, “I feel fantastic. I am pleased because we are going to continue to do the work that we do of taking care these children.” Asked if he has notified the children, Fr. Sitaras said: “Absolutely. As soon as we received the decision,” Fr. Sitaras also said that the children feel “relieved and excited.”

Judge Molik’s decision, which is final, provides the following finding of facts: “Since 1944, St. Basil operated as a boarding school under the charter from the New York State Education Department. Sometime in 1977, the operation of the school component of the program ceased. The operation of the residential program for children continued. St. Basil did not apply for an operating certificate in 1997, when it ceased operation of the school component of its program. St. Basil receives no state or federal funding. St. Basil did not apply for an operating certificate in 1997 because it was unknown that such a certificate was required. On September 4, 2003, the Appellant met with two representatives of the Office, Patricia Sheerley and Ronald Green, in an attempt to establish the appropriate licensing for St. Basil. On September 23, 2003, the Office advised the Appellant that an operating certificate was required in order for it to provide residential care for children. Thereafter, the Appellant began the application of an operating certificate. After 1997, when St. Basil ceased the educational component of its program, St. Basil was no longer exempted from the compliance with the ICPC. St. Basil continued to accept children from outside of New York State, without such placements being made through the ICPC. There are certain procedures that allow for retroactive compliance with the ICPC. The Appellant was and is willing to comply with the ICPC, regarding both current and future out of state placements. The Appellant submitted a proposed certificate of incorporation to the Office for approval. By letter dated November 21, 2003, the Office asked the Appellant to revise a portion of the language included in the certificate. On December 3, 2003, the Appellant submitted an amended certificate of incorporation, reflecting the Office’s suggestions. After St. Basil ceased the operation of the school component of its program, the educational plan of its children was that the children were to be educated in the public school system. Initially, the children attended the Highland Falls-Fort Montgomery (Highland) school district and St. Basil paid the tuition of its students. Sometime in 2003, an issue arose regarding a tuition bill owed to the Highland school system. This bill, although still in dispute, has been paid in full. On August 26, 2003, the State Education Commissioner, Richard P. Mills, issued a temporary order stating that the St. Basil Children were to be treated as residents of the Garrison school district and as such, were entitled to attend school, tuition free, pending an ultimate determination.

During the 2003-2004 academic year, the St. Basil children have been treated as residents of the Garrison school district. At the time the Appellant submitted the application for an operating certificate, only St. Basil’s 2001 financial report was available. The Appellant informed the Office that as soon as the 2002 financial report was available, it would be forwarded to the Office for consideration. The Office never requested any additional financial information from the Appellant.

The director of the Office’s rate setting unit, Richard Lasky, did not complete his fiscal review of St. Basil and was unable to make a determination as to St. Basil’s fiscal viability.” Based on the above and many more findings during the appellate process, Judge David Molik ruled that “the Office’s (Office of Children and Family Services) determination to deny the Appellant’s application for an operating certificate was not a valid exercise of its powers of supervision and enforcement.” Judge Molik also stated in his decision that “the appropriate standard for review is whether the Office’s determination to deny the Appellant’s application for an operating certificate was arbitrary and capricious.”

Judge Molik concluded that “given the above, it is clear that the Office’s determination to deny the Appellant’s application for an operating certificate was made without sound basis in reason and without regard to the facts.” In a telephone interview with The National Herald, Fr. Sitaras said “this development puts an end to the issue,” and added that: “we are just waiting for them to tell us what to do to get the license.” The Academy presently cares for 35 children.
 

 

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