Charter Facilities
A Lack of Support for Charter Schools
Public charter schools often have a difficult time securing facilities financing. Unlike their traditional public school counterparts, public charter schools typically do not receive facilities funding and cannot raise funds through taxes. Supporting the facilities needs of public charter schools requires fostering good public policy initiatives and developing local facilities funds.
(To learn more about the Alliance's efforts to improve these charter school facilities programs, please visit the Charter School Facilities Task Force.)
A Hard Choice
Although some states have established per-pupil facilities aid funding to assist schools with their needs, many public charter schools still have to dip into their operation funds to address facilities needs. Bridging this gap in funding places significant financial pressures on schools, particularly if a public charter school has to use funds to lease a building that would be better allocated for classroom supplies and teacher salaries.
Limited State and Federal Aid
Traditional public schools typically receive financial support through local property taxes. Public charter schools in only 13 states and the District of Columbia receive some manner of state facilities aid ranging from permission to utilize a vacant school district facility in Alaska to a per-pupil facilities allotment based on a five year average of the available capital funds in the District of Columbia. On the federal side, the Department of Education provides some facilities assistance through the State Facilities Incentive Grant program and the Credit Enhancement program.
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State |
Facilities Funding |
| Arizona | Charter schools receive a per pupil allocation called “additional assistance.” These monies can be used for anything from teacher salaries to transportation to facility construction. The amount of “additional assistance” is currently $1,405 per pupil in kindergarten through grade eight and $1,644 per pupil in grades nine through twelve.http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/15/00185.htm&Title=15&DocType=ARS (see B, 4) |
| California | A charter schools revolving loan fund allows charter schools to receive loans for as much as $250,000, allowing up to five years for repayment. A school can use these loans for any start-up costs, including facilities.http://www.leginfo.ca.gov/cgi-bin/displaycode?section=edc&group=41001-42000&file=41360-41367 The charter school facilities program authorizes the State Allocation Board to provide per pupil facilities grant funding for 50% of the total project cost for new construction of charter school facilities. This program is subject to available statewide school bonds passed to support charter school facilities. Currently, no funding is available to support this program, while a backlog of almost $2 billion of eligible charter projects exists. http://www.leginfo.ca.gov/cgi-bin/displaycode?section=edc&group=17001-18000&file=17078.52-17078.66 A lease aid funding program for charter schools in low-income areas provides up to $750 per student.http://leginfo.ca.gov/cgi-bin/displaycode?section=edc&group=47001-48000&file=47610-47615 (See 47614.5) |
| Colorado | For FY 2009, $5 million in capital construction funds have been appropriated and are provided to qualified charter schools on a per-pupil basis. See Word document entitled “CO Per-Pupil Charter Facilities Funds Statute.” The legislature also provides a mechanism for limited credit enhancement for eligible, highly rated bond transactions for charter schools, by using the state’s moral obligation to back up to $400 million in debt. See Word document entitled “CO Moral Obligation for Charter Facilities Statute.” |
| Connecticut | For the two-year budget cycle starting on July 1, 2006, the state provided $10 million in bond financing to cover facilities costs at existing charter schools, disbursed through a competitive application process. For the two-year budget cycle starting on July 1, 2008, the state provided and additional $10 million in bond financing to cover facilities costs at existing charter schools, disbursed through a competitive application process.http://www.cga.ct.gov/2007/pub/Chap164.htm#Sec10-66jj.htmhttp://www.cga.ct.gov/2007/pub/Chap164.htm#Sec10-66hh.htm |
| D.C. | There is a per-pupil facilities aid program in D.C. The amount is based on a five year moving average of capital funds available to the school system. For Fiscal Year 2009, the allowance as calculated at $3,109 per pupil. See Word document entitled “DC Charter Facilities Funding Statute.” The City Build Charter School Initiative promotes community revitalization with a particular emphasis on strengthening public charter schools. Most of the grants from this program have been allocated for facilities and expansion projects. The Fiscal Year 2009 District of Columbia Appropriations Act includes $3.25 million for the program. The Public Charter School Credit Enhancement Fund provides credit enhancement for the purchase, construction, and/or renovation of facilities for charter schools. The program offers guarantees or collateral pledges of up to $3 million for two to five years.http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+20USC1155 (Sections 1155(e)(2)(B) and 1155(e)(3)) The District of Columbia’s Direct Loan Fund for Charter School Improvement provides flexible loan capital for the construction, purchase, renovation and maintenance of charter school facilities. Loans are capped at $2 million per school. $4.5 million in federal appropriations was earmarked for this initiative for Fiscal Year 2009.http://government.westlaw.com/linkedslice/default.asp?rs=gvt1.0&vr=2.0&sp=dcc-1000 (Section 38-1833.02) |
| Florida | For FY 2009, Florida appropriated $57 million for its per-pupil charter facilities funding program. http://www.flsenate.gov/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=Ch1013/Sec62.HTM |
| Georgia | The state has a per-pupil, needs-based capital-funding program. Approximately $2 million was appropriated for FY 2010. See Word document entitled “GA Charter Facilities Funding Statute.” |
| Massachusetts | Charter schools receive a per-pupil capital needs allowance as part of their per pupil tuition revenue. For Fiscal Year 2009, the per pupil capital needs component was $893.http://www.mass.gov/legis/laws/mgl/71-89.htm (See nn) |
| Minnesota | The state provides lease aid to charter schools in the amount of 90% of lease costs or $1,200 per-pupil. With approval of the state department of education, charter schools may lease space from public or private nonprofit, nonsectarian organizations and from sectarian organizations.http://www.revisor.leg.state.mn.us/stats/124D/11.html (See Subd. 4) |
| New Mexico | Lease payments for charter schools for FY 2010: $700 per student.http://nmcharterschools.org/docs/charter_schools/charter_schools_act.pdf (See 22-8B-14) |
| New York | The Charter Schools Stimulus Fund provides discretionary financial support to charter schools for start-up costs and for costs associated with the acquisition, renovation and construction of school facilities. Grants awarded by the New York State Board of Regents are capped at $200,000, and those awarded by the State University of New York are capped at $350,000. $5.5 million was appropriated for the FY 2009 school year. See Word document entitled “NY Charter Schools Stimulus Fund Statute.” |
| Oklahoma | The charter school incentive fund provides up to $50,000 per school to cover costs associated with renovating or remodeling existing buildings and structures for use by a charter school. See Word document entitled “OK Charter Facilities Funding Statute.” |
| Pennsylvania | The state department of education calculates an approved reimbursable annual rental charge for leases of buildings or portions of buildings for charter school use which have been approved by the secretary of education on or after July 1, 2001. This charge is the lesser of (1) the annual rental payable under the provisions of the approved lease agreement or (2) the product of the enrollment times $160 for elementary schools, $220 for secondary schools or $270 for area vocational-technical schools. See Word document entitled “PA Charter Facilities Funding Statute.” |
| Utah | The Local Revenue Replacement Program provides an additional annual per pupil appropriation for charter schools to replace some of the local property tax revenue that traditionally covers maintenance and operation, capital projects and debt service. A minimum of 10% of the grant monies must be expended for facilities. This facilities dedication was $143 per pupil in Fiscal Year 2009.http://le.utah.gov/~code/TITLE53A/htm/53A02032.htm The state has created a charter school revolving loan fund. This fund provides loans to charter schools for the costs of constructing, renovating, and purchasing charter school facilities. This fund is capitalized at $6,000,000.http://www.rules.utah.gov/publicat/code/r277/r277-487.htm |