One of the most common problems facing charter schools is the lack of an
available and affordable facility. According to a report issued by the
State University of New York’s Charter Schools Institute, “Nationally
and here in New York, school operators identify access to facilities and
facilities funding as one of the primary obstacles to opening a
successful public charter school.” The report, “Charter Schools in New
York: A New Choice in Public Education: The First Three Years
1999-2002,” SUNY Charter Schools Institute, March 11, 2002, is
available here.
A
comprehensive resource for facilities financing information is the
National Clearinghouse for Educational Facilities:
http://www.edfacilities.org/rl/financing_charter.cfm
The Credit
Enhancement for Charter School Facilities program run by the US
Department of Education:
http://www.ed.gov/programs/charterfacilities/index.html
For more
information on financing challenges, please read FERA’s report: Charter
School Challenge: The Struggle to Finance Suitable School Facilities
(COMING SOON!)
Reseach
 |
“The
Finance Gap: Charter Schools and Their Facilities,” Institute for
Education and Social Policy, Steinhardt School of Education, New York
University; The Educational Facilities Financing Center of the Local
Initiatives Support Corporation; Bill and Melinda Gates Foundation,
January 2004 |
This study reviews charter school facility financing in fourteen states
and Washington D.C. It details innovative financial arrangements as
well as public and private financing options. The study found that
charter schools are forced to spend a great deal of per-pupil operating
aid to pay for facilities, spending an average of 20 to 25 percent of
instructional resources to repay financed facility costs.
The study outlines the many obstacles charter schools face while
applying for financing, including the small size of the student body,
lack of credit history, limited cash reserves, and the general “newness”
of the schools.
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“Charter
Schools: New Charter Schools across the Country and in the District of
Columbia Face Similar Start-Up Challenges,” U.S. GAO, September
2000. |
This study examines the common challenges of finding and financing
facilities that start-up charter schools face. GAO found that while
charter school laws vary, very few address the problem of facility
financing, and most schools across the nation lack access to the
traditional financing option available to traditional schools, municipal
bonds. The agency then presents a variety of public policy tools the
government could use to assist charter schools.
How to Start Finding Funding
New York Charter School Stimulus Fund grants are available to charter
schools authorized by the State University of New York, the New York
City Board of Education, and the Buffalo City Board of Education.
Charter schools may apply for Facility Financing and/or
Start-Up/Implementation Grants up to $300,000. For information on
these grants contact Sandy Malloy, Director of Administration, at (518)
433-8277 or visit:
http://www.newyorkcharters.org/grant/state.html
The Educational Facilities Finance Center of LISC released a
comprehensive report on the various programs and providers related to
charter school facility financing. The report summarizes nonprofit
private developers, public-private finance programs, and public
initiatives, view
the report here.
“Charter
School Facilities: A Resource Guide on Development and Financing,”
NCB Development
Corporation and the Charter Friends National Network
http://www.uscharterschools.org/gb/dev_fin/toc.htm
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