Moral Obligation and Charter School Financing
This paper explores the use of moral obligations for charter school facilities, and outlines Utah and Colorado’s active Moral Obligation programs for charter schools.
Learn about public and private sector sources of support to make it easier to finance facilities such as low cost loans and credit enhancements/moral obligations.
Public charter schools do not have access to the same affordable financing options as government supported district schools. Single-site charter schools, those in high-poverty or rural areas, and those with new models are at a significant disadvantage in the facilities financing market—they have to pay much higher interest rates to borrow money. States can provide financing solutions at little to no cost. Even in a best-case financing scenario, charter schools end up saddled with debt or lease obligations—which they must pay for with their per-pupil operating funds.