The awards are the first since the Legislature agreed last year to set aside $100 million to help privately run charter schools borrow money at lower interest rates. The state is effectively guaranteeing that lenders will not miss payments.
Senate Bill 1480, which would allocate an additional $3 billion of the Permanent School Fund to back charter school bonds, passed the Senate Monday, with four Republicans voting against the measure. The $30 billion Permanent School Fund, the largest education endowment in the country, guarantees bonds from traditional school districts and charter schools, allowing them to borrow money for construction at lower interest rates.
Newark schools superintendent: The argument that charters are taking resources from public schools is also misleading. When a student opts to attend a public charter school, it is only reasonable that the revenues associated with that student go with him or her. But it is also fair that adequate funding remain with the district to cover its fixed and legacy costs. In Newark, I have worked hard to ensure that the district retains funding to cover those costs.
The Trump administration’s budget blueprint would include $1.4 billion in new money for school choice, but it would get rid of Title II, the $2.3 billion main federal program for improving teacher quality, and the 21st Century Community Learning Center program, a $1.1 billion program which helps finance afterschool and extended-day programs. Private and charter schools receive funding, or at least services, from both programs, explained Sheara Krvaric, an attorney with the Fed Ed Group, a law firm that specializes in K-12 programs.
The Trump administration is seeking to cut $9.2 billion — or 13.5 percent — from the Education Department’s budget, a dramatic downsizing that would reduce or eliminate grants for teacher training, after-school programs and aid to low-income and first-generation college students. Along with the cuts, the administration is also proposing to shift $1.4 billion toward one of President Trump’s key priorities: Expanding charter schools, private-school vouchers and other alternatives to traditional public schools.
When charter schools expand, and more kids leave classrooms run by the School District of Philadelphia, it’s not as costly as previously estimated, although the total remains significant. That’s according to a much-anticipated report commissioned by the district in 2015, completed by the consultancy Afton Partners. Uri Monson, Chief Financial Officer for The School District of Philadelphia says in the district’s press release, “Some of the constraints that lead to stranded costs are partially controllable and can be mitigated with action by SDP, albeit via difficult actions such as layoffs and school closures. Continuing to grow and improve District-managed schools, and attracting students back to great schools near where they live, would also mitigate these fiscal challenges for the District.”
Commentary: As charter school growth slows, time to re-examine bureaucratic, funding, political hurdles
States may need to take a look at the incentives — financial and otherwise — embedded in their laws and policies. An economist might say that the supply of charter schools is simply meeting the logical limit of the current funding and political environment. If we want supply to change, we first need to change that environment…For more information on national charter school growth, read the National Alliance of Public Charter Schools’ recently released report on estimated enrollment for the 2016-17 school year here.
Schools loosened their belts a little, in spite of lower federal support, according to new federal data from fiscal 2014. That year, the median school district spent about $10,300 per student, up about 1 percent from fiscal 2012. The uptick was driven by higher spending in suburbs, towns and rural areas; urban districts actually spent a little less.
The plan is carefully framed to deal with some of the objections that have undermined past efforts to reform the charter law. School systems with fewer than 3,000 students would be excluded, negating concerns that a charter could have a severe impact on small school divisions. Public charter schools would have no claim to local funding, and existing schools would continue operations unaltered, without loss of needed resources or local control.
The district’s school population will continue to grow as new apartment units come on line and other projects are built, charter school officials say. “Given the impact of the significant influx of new students into local schools, this expansion request is ideally timed to assist the district in addressing these new needs at a lower cost. Even if one were to accept the district’s claims to the contrary, it cannot be credibly concluded that this phenomenon will cause devastating financial harm to the PPS district,” reads the letter.