It is true that charters unlike districts can close or be closed

But—just like districts—charters are public schools, held fully accountable for being fiscally responsible. As well as for their academic results. Charters also provide tens of thousands of Ohio families with additional. Public school options, and on average, they outperform their local school district. To grow at scale, charter schools need access to more affordable financing. The high cost of debt servicing discourages many charters from undertaking capital projects in the first place. Which often means they operate in less-than-optimal facilities. And when they do embark on substantial facilities improvements, the high interest rates they must pay tie up more of their budget with debt service and leave fewer dollars for classroom instruction.

Given these challenges, it’s no

Surprise that only a handful of Ohio Algeria Phone Number List charters have ever accessed bond financing for capital projects. Recognizing this problem and the disadvantage it poses to charter schools and their pupils, five states—Arizona, Colorado, Idaho, Texas, and Utah—have created “credit enhancement” programs. Ohio lawmakers should do that, too. But what exactly are these programs, how are they structured, and what savings do they actually deliver? A recent report from the Local Initiatives Support Corporation (LISC) provides a useful guide. LISC describes such programs this way: State bond credit enhancement programs represent one of the most effective and least costly options available to lower the cost of financing for charter school facilities.

These programs

Phone Number List

Significantly reduce taxpayer dollars spent CW Leads on facility debt service by effectively substituting the state’s generally far superior credit rating for that of the charter school, resulting in a lower interest rate and reduced debt service payments. LISC notes two basic approaches to providing enhanced credit: Formal guarantee: Arizona and Texas guarantee—legally obligate—the state to cover bond payments in event of a default. In these states, charters were incorporated into a larger bond-guarantee program that is available to school districts.[1] Moral obligation: Colorado, Idaho, and Utah pledge—via a non-binding “moral obligation”—that the state will provide funds to cover payments if a charter school defaults.

Leave a Reply

Your email address will not be published. Required fields are marked *