Since the early 1970s, moral obligation bonds have been used to finance housing, higher education facilities, hospitals, corrections facilities, and more. Some states are now using this tool to help charter schools save on borrowing costs.
Charter schools have limited access to the capital funding streams available to school districts. Few states provide funding, but these solutions are limited in both their reach and funding, and do not come close to meeting the charter sector’s facilities needs. Unlike district schools, charter schools typically do not receive funding that is sufficient to cover more than their operating costs and must pay for facilities costs out of their operating budgets – meaning money that should be going into the classroom is instead paying for the classroom.
This 11/15/19 webinar provided update on the activities of the Charter School Facility Center, recent Charter School Program (CSP) awards, and national advocacy on behalf of facility funding.
This paper examines what can be done at the federal level to provide additional resources to charter schools to access school buildings, and to create incentives for states to address inequities in the allocation and funding of buildings.