Another Big Thing Out Of Texas: Public Charter Schools Are Now Entitled to the Permanent School Fund (PSF) Guarantee!

On July 19, Governor Rick Perry signed into law Senate Bill 1, giving financially-sound public charter schools access to the state’s Permanent School Fund (PSF) bond guarantee. This will help schools construct and renovate school buildings.  PSF is the state’s $25 billion, AAA rated endowment. Bonds with the PSF-guarantee will be rated AAA—the highest possible credit rating—saving charter schools throughout the state millions of dollars in interest costs.  This legislation is an important and symbolic victory for charter schools in Texas and nationwide.      

The PSF enhancement is significant because charter schools will be able to finance growth at costs that are level with traditional public schools.  Savings from the PSF enhancement will be redirected to instruction and learning costs, putting taxpayer money to more efficient use.  To put these savings into perspective: the estimates of the cost-savings range from 200 to 300 basis points per bond issue.  In order to qualify for the PSF guarantee, charter schools must meet the investment grade credit rating and accreditation standards.  Putting up the state’s endowment to back charter school bonds, the same way it is for traditional public schools, speaks volumes about the direction of the public school choice and public education in Texas.    

Kudos to the Texas constituency: the bill’s sponsor, Senate Education Committee Chairwoman Florence Shapiro, and supporters Governor Perry, the Legislature, the Texas grassroots base and charter school advocates.  Texas joins the only other state, Colorado, in providing state backing for charter school bonds.  The Colorado state moral obligation backing renders the subject bonds to A credit rating (by Standard and Poor's).  The rating upgrade from low investment grade to AAA and A in Texas and Colorado, respectively, incites charter school bond issuance at cheaper borrowing rates. 

The state's backing of charter school bonds is a step in the right direction and a critical piece of the public charter school facility financing model.  Charter schools throughout the country are way behind their traditional school district counterparts that have taxing power and bonding authority to finance their facility construction projects.  The NAPCS Model Charter School Law has a menu of options for consideration by state policymakers to narrow the facility funding gap between traditional public schools and public charter schools.

US Congress Holds Hearing on Charter Schools: The Highlights

Earlier this week, the U.S. House of Representatives Subcommittee on Early Childhood, Elementary and Secondary Education held a hearing titled “Education Reforms: Exploring the Vital Role of Charter Schools.” Expert witnesses discussed a range of topics and answered questions from Members of the committee about how charter schools serve the local communities and special populations; the importance of options (and knowledge of those options) for parents; and ideas for collaboration with traditional public schools.

DeAnna Rowe, executive director of the AZ State Board for Charter Schools, positioned charters as an “integral part of a complex system.” The proof is in the pudding: Arizona has recently adopted new growth models that will be used to evaluate all public schools, which grew out of the charter sector in the state.  

With 1/3 of its student population English language learners (mostly recent Iraqi immigrants), Literacy First Charter Schools in El Cajon, CA focus on what works to serve the community of learners. And if it doesn’t work, Debbie Byer, executive director, says, “We change!”  When pushed by Congresswoman Woolsey (CA) as to what Literacy First is doing that is different from public schools in the area, Byer noted the flexibility of the curriculum and school calendar as well as the control she has on every single dollar that is being spent in her school.

Dr. Beth Purvis, executive director of the Chicago International Charter Schools, is squarely focused on serving the communities that need the most help and hope: 86% of CICS students qualify for free and reduced lunch, 95% are African American or Latino, and 6 of the 14 Chicago campuses are located in the 10 highest violent crime neighborhoods in the city.  She told a story about opening a high school in one of the most blighted areas; a desire that was raised by the Chicago Public Schools so students would not have to travel across gang lines to get to school.  A community that long felt ignored by the city, now speaks of having a “school just for them” as Dr. Purvis remarked. 

Quite possibly the highlight of the hearing was listening to Dr. Purvis and Congresswoman Roby (AL) talk to a group of sharp students from Democracy Prep –and outstanding charter school in New York City.  When asked how their school was different from the traditional public schools that most of them had previously attended, we couldn’t have scripted better answers ourselves! Some children noted the feeling of safety within the school, others mentioned the afterschool activities, and while others simply said they like knowing that the teachers expect a lot from students. 

Of course there are always areas ripe for improvement, and Dr. Gary Miron, professor at Western Michigan University, addressed a few of these in his testimony: access to IDEA funds and incentives for charters to expand special education services; transportation for all students to and from charter schools; innovative outreach to parents and families to attract a diverse student body; and full participation in the National School Lunch and Breakfast programs. And these improvements take commitment from federal, state and local policymakers and from district and charter school leaders to put kids first.

Read our statement on the hearing from President & CEO Peter Groff.

Wisconsin Public Charter Schools Gain Access to Public Buildings

In the Area of Nutrition, Charters Are Getting It Done

Midnight in Georgia

National Charter Schools Week Round Up

Thanks to all who joined us in celebrating charters during the 12th annual National Charter Schools Week!

Our advocacy efforts, both online and on Capitol Hill, were a great success this year: 

• 75 participants from 35 states participated in nearly 200 meetings with Members of Congress and their staff;
• Nearly 100 advocates used our text campaign to contact their elected representatives to express support for high quality charter schools;
• The NAPCS honored Rep. “Buck” McKeon (CA-25) with his [Champion for Charters Award] at a reception in the House of Representatives;
• President Obama formally acknowledges National Charter Schools Week by issuing an official Presidential Proclamation.

Participants came to Washington D.C. from as far as Hawaii and as close as Maryland to meet with policymakers to discuss how the federal government can better support the growth and development of high-quality charter schools.  In addition to the Washington based activities, National Charter Schools Week was marked across the nation by supporter-hosted rallies, school tours, student competitions and various acknowledgements of charter school success by state level officials.

In Texas, more than 1700 parents of charter students returned rallied to encourage lawmakers to complete their work and send the bills to the Governor’s desk.

In Georgia, charter students pose with Governor Nathan Deal and the National Charter School’s Week proclamation.

It’s Advocacy Day – National Charter Schools Week Continues

U.S. Rep. Kline Recognizes National Charter Schools Week

Are You Walking Away from a Chance for Funds?

It’s well-established charter schools get less public funding than their district counterparts. But charters may also be ignoring some competitive-funding opportunities.

So said the Government Accountability Office in a report issued last December. GAO identified 47 federal discretionary grant programs for which charter schools are eligible, but found a lot of confusion among charter operators and advocates about who could apply for what. Very few charter schools that are part of district-LEAs have stepped up, apparently believing the district itself had to apply. Yet two-thirds of the federal programs explicitly specify public schools or non-profit organizations are eligible.

Adding to that confusion is a real catch-22: Among the charter respondents, 44 percent said they didn’t apply for federal grants because they lacked the resources. Translation: They’re too poorly-funded to hire grant writers. The good news is at least one-quarter of the charters that applied during the 2008-2009 school year received an award, which the Department of Education noted is a higher win-rate than that of average applicants.

In fact, the Department said it’s been working to make sure charter operators know their rights. In a formal response to GAO, Jim Shelton of the US Department of Education’s Office of Innovation and Improvement pointed out the Department has already put language making charter-eligibility explicit in most of the grant competitions they run, and is working with other agencies like the Justice Department and Housing and Urban Development Department to make sure they do the same. (We forget too often it’s not just “Education” that makes funding available for schools!). Also, the National Charter School Resource Center will post notices like this one on its site and is developing a direct e-capacity to get word directly to schools.

Discretionary grants won’t make up for the full gap charters experience, but let’s not make it worse by leaving available dollars on the table.

Thoughtless Pause