Charter schools often issue their own tax-exempt bonds because they are not included in the local school district bonds for school construction. Charter schools have to pay a higher interest rate and that leaves less money for education programming.
In 2019, the charter school tax-exempt bond sector registered another record volume year with issuance exceeding $3.7 billion—up from almost $3 billion in 2018 and representing a robust 25% increase. This record volume was the seventh annual record out of the last eight years.
In 2020, schools dramatically adjusted their operations in response to the pandemic. While most schools shifted from the traditional in-school learning model to 100% remote instruction, some developed new, innovative ways to safely provide a blended model of remote, technology-based instruction
The National Charter School Resource Center published A Synthesis of Research on Charter School Facilities, a new, in-depth report on charter school facilities that examines the current state of charter school access to facilities, including facility acquisition and owne
The Council of Development Finance Agencies (CDFA) prepared this report to demonstrate how charter schools can access development finance tools and programs for the acquisition and renovation of school facilities.
Financing a charter school facility is challenging enough. Refinancing a charter school facility is often a larger project and has more consequences because long term debt can last for 30 years or more. The stakes can be significant when locking into long term financing.
In State Policy Analysis: State Support for School Facilities and Charter Schools, the Facility Center analyzes state funding for all public school facilities and identifies opportunities for charter schools to participate in this broader funding.
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.