If the California Charter School Act of 1992 marks the charter school community’s most pivotal legislative victory, it can be argued that California Senate Bill 740 is a close second. However, its 2001 passage was only the beginning, as it paved the way for a triumphant rescue years later.
SB 740 contains two primary provisions. The first provision regulates the actions of non-classroom-based charters. The other creates a facilities grant program for charters serving low-income students—the only program of its kind in California. Though $7.7M was allocated for the grant program, that funding fell victim to budget cuts year after year, requiring extensive lobbying efforts to reinstate it. Branche Jones, Charter School Capital’s California legislative consultant, was instrumental in those efforts from the beginning. “There was always supposed to be $7.7M, but you would end up with $0. We’d have to get Governor Schwarzenegger to put it back in the May budget revision in order to get the money.”
By 2007, the State Speaker’s Office took matters a step further, placing that money in a standalone trailer bill that was ultimately left at the desk. With those funds now off-limits, California charter school stakeholders and supporters came together to take action. From lobbyists in Sacramento to parents from the Camino Nuevo charter school in the Pico-Union district of Los Angeles—the State Speaker’s home district—pressure was brought from all corners of the California charter school community. Eventually, it worked.
Not only did negotiations ensure that the funding was reinstated, but they also resulted in a dramatic increase—from $7.7M to $18M.
And the momentum continued. The following year, in 2008, lobbyists were successful in convincing legislative leadership to improve the way bonding authority was calculated. As a result, existing year-round grant program funding was redirected toward SB 740 as well, adding $20M to the program the first year and $40M thereafter. Today, the program’s funding has climbed to $118M in six years. Better yet, it’s protected as a standalone categorical program.
Looking back, Jones attributes this unprecedented victory to the team effort in place. “For me, the biggest successes aren’t when one or two people are doing it. It’s when the collective body is making it happen. This was one of those unique situations where everybody came together,” he said.

Among the factors that determine a student’s likelihood to attend college, middle school figures prominently. Performance during grades six through nine tends to set in motion a pattern that dictates whether or not a young person will pursue higher education.
In San Bernardino, there is yet another hurdle: the area holds the highest dropout and lowest college attendance rates in the country. New Vision Middle School’s founders recognized the need for a solution and established their charter school in 2009.
As a charter school, New Vision affords students a luxury that its district counterparts often cannot – individualized attention. Principal Javier Hernandez believes making education personal is the key to connecting with students. “The typical middle schools here are easily over 1,000 students, whereas we have 300. Because we are a smaller school, we’re able to know the students. They know us. And we’re able to build a relationship with the students as well as their parents.”
And that relationship ultimately lays the groundwork for a shift in attitude. New Vision students are empowered to take a vested interest in their education, often for the first time, which inspires them to see college as a practical, attainable goal.
For Principal Hernandez, that simple realization lies at the heart of New Vision’s mission. “That’s the thing that we see here with our students—they suddenly see that education is important and want to try and do well in their classes so that they can go to college,” he said.
Considering New Vision’s contribution to the community, it’s hard to imagine life without the school. But, Alex Lucero, its executive director remembers the challenges they faced when opening their doors four years ago.
“We decided to open up in the midst of a California crisis where there were state budget cuts in education and funding deferrals in place. We didn’t know when our state funding was going to hit our bank account, “ he said.
Fortunately, New Vision reached out to Charter School Capital, giving us the opportunity to provide both monetary and informational support—the latter proving a welcome resource for Lucero and his team.
“I’m a double business major, have a master’s in education and have been working in charter schools for several years. But looking at the financial materials didn’t explain anything to me,” said Lucero. “Charter School Capital was able to assist with that.”

CHAMPS Success Story
At CHAMPS Charter High School of the Arts in Van Nuys, California, creativity takes center stage. While financial strain has led many schools to reduce the arts, CHAMPS principal Dr. John Biroc has taken the opposite approach, boldly infusing artistic expression into academics at every turn.
From performance to robotics, the arts play a major role in students’ day-to-day learning at CHAMPS as they divide their time between the classroom and the studio. For Dr. Biroc, it’s a curriculum that can transform young lives.
“When I see the kids and what they do—how their passion comes to life around the arts—I cannot tell you fulfilling that is,” he said.

In celebration of the 20th anniversary of charter schools in California, we’ll be counting down the days to the California Charter Schools Conference (March 11-14) by showcasing charter school success stories from around the Golden State. 
Holly Drive Leadership Academy is a K-8 school in San Diego. Founded in 1999 and incorporated into the San Diego Unified School District three years later, the school operated under district management for nearly a decade until opting to become a charter school in July 2011.
Becoming a charter allowed Holly Drive to provide educational options to their students, but it also meant overseeing the school’s operations for the first time.
The school’s leadership was well trained and ready to manage the educational components of running a charter school. However, the financial management was less familiar.
“Everything we’d ever done was through the district, including the payroll,” said Alysia Smith, principal at Holly Drive Leadership Academy. “I was used to that.”
Managing finances with limited experience is challenging under normal circumstances. Doing so in the wake of a severe cash flow shortage only intensifies the strain. Like, all charter schools in California, Holly Drive was subject to the state’s payment deferrals, which made for a harsh reality check early on.
“I had heard about the deferrals, but didn’t know they were so few and far between until we were on our own,” said Smith. “I didn’t know the state was so behind in paying the schools such large amounts of money.”
That’s when Holly Drive came to the Charter School Capital team. We were fortunate enough to partner with them to provide working capital funds when they needed them most. This allowed Holly Drive the freedom to focus on educating students. The key was eliminating the strain the payment deferrals had on the school’s operational stability. Our team devised an initial funding plan that provided necessary funds, as scheduled, so Holly Drive could maintain all operational needs.
Next, we worked closely with Alysia and her team to ensure Holly Drive’s long-term financial stability, offering counsel on the impacts of state budget changes, navigating bylaws, and budgeting for growth among other topics. Our efforts ultimately produced a budget that supports their immediate needs while safeguarding their ability to grow in the future.
This school year, Holly Drive is financially and operationally stable, allowing the school leadership to focus on educating nearly 140 students currently enrolled at the school.
“I’m here for my kids,” Smith said.