Are you applying for the State Entity Grant? Luckily, the deadline has been extended until May 15. That gives you time to make sure your application has all the essential strategies.
One of the most complex problems new charter schools face when opening a school is securing the facility. The SE grant is not eligible to fund the development of facilities and many states have ignored any and all facility related solutions. However, the SE grant can be used for technical assistance in any aspect of opening a new school, and that includes helping schools make the best decisions when securing a facility.
Three states have successfully developed facility related technical assistance programs as part of their SE applications.
Idaho. The application by Bluum, a charter support organization, allowed SE funds to be used for “providing high-quality technical assistance to aspiring applicants” and their support will focused on “providing facilities development and financing” in addition to other support. Upon receipt of the award, Bluum solicited a contract to develop a Refinancing Guide and provide direct technical assistance to individual schools seeking to refinance their debt to allow them to grow and add more schools or campuses. One of their consultants has been working with six schools and has helped them identify new, lower-cost, facility funding sources that should save the school over $1 million dollars. Those savings can then be used to help the charter school expand and add a new campus.
Alabama. The application by New Schools For Alabama, a charter support organization, allowed SE funds to be used to “offer support services and tools for facilities, financial planning…”. Upon receipt of the award, New Schools For Alabama contracted with a local commercial realty firm to update their Charter Facility Index, a database of available properties for new and aspiring charter schools. This helps schools identify available properties without having to pay broker fees for properties that are already publicly known by other charter schools. They also hired a consultant with facility experience to help with their charter start-up services. He has already helped a new school secure New Market Tax Credits which can save around 30% of the cost of a facility.
Florida. The application by the Florida Department of Education allowed SE funds to be used to “provide short-term, intensive, and targeted support to new charter schools." which include efforts to support facility needs. Upon receipt of the award, the Department contracted with a local nonprofit charter school loan fund to manage the Charter Support Unit. This group provided one-on-one phone support and developed a suite of webinars, tools, and templates for a range of operational issues as well as facility related activities. The group helped over 20 schools identify 100% financing and eliminated the need for the school to provide equity in their transaction. This Charter Support Unit also has been instrumental in helping new charter schools open in a location and reducing the number of schools closing during the first years of operation.
If you are applying for an SE grant, be aware that you can use the funds to support technical assistance to help schools solve one of their most persistent problems: facilities. If you need help identifying organizations or people to help you with facilities support, the Charter School Facility Center can provide a list of resources. Please contact Mark Medema for more information.
Activity (b)1.3: Provide high-quality technical assistance to aspiring applicants: Bluum, in partnership with the PCSC, state agencies, and district partners such as the Nampa Public School District, has worked to assist 10 schools in Idaho to open and/or expand since 2013. There are several others now in the pipeline. Much expertise has been developed around providing pre-opening training and technical assistance to new schools and expanding schools alike. For example, in April 2018, Bluum coordinated a workshop for new schools (to be opened by Idaho New School Fellows and their boards in August 2018 or August 2019) entitled Responsibilities & Obligations of Charter School Boards (see appendix F). This training was led by Bluum staff, PCSC staff, and a longtime charter school attorney.
Supports provided will be focused on what we already do well – capacity building, new school incubation, talent recruitment, facilities development and financing, coordinating student transportation, financial management and back-office operations, governance recruitment and training, evidence-based instructional practices as defined by ESSA, special education, student retention strategies, English Language Learners, pre-opening activities, and, if needed, school closure guidance and support.
NSFA will also conduct site visits, promote positive messaging and public relations about Alabama’s charter school sector, and offer support services and tools for facilities, financial planning, philanthropic funding, and the application/regulatory process.
NSFA will provide technical assistance to all subgrantees before, during, and after the application process to ensure success during the critical startup years. From NSFA, prospective subgrantees will receive technical assistance in the areas of 501c3 application support, charter application review and feedback, mock interviews, community engagement support, assistance with facilities acquisition and finance, and strategic consulting.
Two of their stated milestones in their implementation plan include:
- Maintain Charter Facilities Index
- Continue facilities assistance described herein
FLORIDA APPLICATION (paraphrased)
The Department proposed, in its application to the US Department of Education, the creation of a Charter Support Unit (CSU) to provide short-term, intensive, and targeted support to new charter schools. The CSU team, having expertise in curriculum, instruction, finance, facilities, governance, and leadership will be available on short notice to conduct online or on-site assessments and provide recommendations and support to new charter schools.