November 2017 - Grow Schools

Earlier this month, Los Angeles charter school leaders won changes to the rules under which they operate, via the Los Angeles Unified School District. The full list of rule changes can be found in a great summary article by the LA Times. But I wanted to dive deeper into the rule change on charter schools residing in Proposition 39 space, the benefits of this change, but the challenges those schools still face.

RULE REMOVED:

Agreements that allow charters to use available space on campuses “shall be limited to one school year” and separate multiyear agreements “shall not exceed five years.”

These limits have now been removed, which could allow charters to become permanent fixtures on district campuses they are using.

This is great news for charter schools residing in Proposition 39 space. The law had previously stated that charters using available space on campuses “shall be limited to one school year” and the maximum amount of those stays “shall not exceed five years”. This type of language has caused a lot of stress on charters over the years by forcing them to re-apply each year for the same space they had the year before. Not only was this process time consuming but it had a deeper impact of creating doubt in the leaders of the school, the parents of the students, and even the students themselves. Would they have that same space or would they be moving to something completely different the following year?
Often times charter schools were happy with the existing space only to find out that they would be moved the following year to a new location, sometimes many miles away. The impact of these moves forced some parents and students to leave the charter to attend a school in closer proximity to where they lived while forcing others that wanted to stay in the program to have longer commutes to school each day. This ripple effect often impacted the enrollment numbers for charters causing strain on their finances as well. Now, charters will have the ability to have long term agreements in the district provided space which is a big relief for many charters across the LA Unified School District.
Unfortunately, the question around the length of the agreements still does not solve all of the problems that come along with utilizing the space the the district may provide. There is an old adage that “you get what you pay for” and this certainly applies to some of the frustrations that come along with Prop 39.
As referenced in the article, “the law that states that districts must make classrooms and other campus facilities available for charters in a way that is “reasonably equivalent” to what is provided to traditional schools.” In practice, I’ve found that although these schools have classrooms on a district facility, there have been concerns to consider:

They lacked equitable parking spaces, access to labs, access to open space and playgrounds, without negotiating times and adjusting schedules with the district school they co-located with.
Charter schools were often put in a corner of a campus in portables.
Although maintenance crews were provided the number of hours would often be limited to the extent that cleaning crews would have around 5-10 minutes per classroom for cleaning.
This setup can cause confusion for parents, students, and teachers regarding use of space and a feelings of unwelcome.
There are also safety concerns in these situations particularly when students of different grade levels may be placed on the same campus.

The political battle between district schools and charters is long standing and ongoing, so to think that the leaders of these schools do not face daily challenges of maneuvering through the political battle in these situations would be a misconception. Although the rent may be cheap, these living conditions certainly don’t make the charter schools feel like they are at home. This is why so many charter schools seek to find their own space through bonds, mortgages, and long term leases. It is the only true way they can create a permanent home in the community, develop their model of learning and grow their student populations in a safe, welcoming environment.
If you have questions about transitioning your school out of a Prop 39 space, you can contact me directly at reldridge@charterschoolcapital.com.

The Arizona Charter School Business Summit has come to a close for 2017, but it’s easy to see how the impact of the event will ripple throughout the year.
The event hosted a number of incredible workshops diving into challenges and solutions specific to Arizona charter schools, but the main conference day was kicked off with a passionate opening keynote by Colin Seale. Learning about his background and how he overcame childhood obstacles to become a math teacher, get his law degree, and work with youth in the juvenile was absolutely remarkable. However his message on critical thinking was even more impactful. Because charter schools are all so unique, he challenged all charter leaders to think differently when it comes to education. As technology changes, so will the type of careers our kids will have to choose from, and as such, critical thinking skills will be even more important moving forward for your youth’s success.
One of my personal highlights was having the opportunity to represent Charter School Capital in a presentation on “Best Practices for Charter School Expansion” with Megan Olson, the co-founder of Odyssey Preparatory Academy Family of Schools. The presentation went through the different stages of growth and Megan was able to dive deeper into common misconceptions, challenges, and best practices using her broad set of experiences as the framework. You can access the slides from that presentation here.
I had the pleasure of meeting with a variety of charter leaders to discuss facility needs, working capital issues, and even the Title 1 issues that continue to linger for our schools. It was also great to see familiar vendors and even many new ones that are in support of the charter movement here in Arizona.
All in all, this year’s Arizona Charter School Business Summit was great. I’m looking forward to working with you all throughout the year and can’t wait for next year’s incredible conference.

The 2017 Florida Charter School Conference is a wrap, and having had some time to reflect on this year’s flurry of activities, I can safely say this one was perhaps the best yet!
A clear topic trend at the conference seemed to be centered on facilities needs for charter schools. By my count, there were at least four different breakout sessions discussing different challenges and best practices around facilities.
One of those sessions was even hosted by Charter School Capital, titled “I Need a New Facility for My School, Now What.” Aptly named, panelists Thom Jackson, President and CEO of EdisonLearning Inc., Mike Morley, President and CEO of American Charter Development, and Stuart Ellis, President and CEO of Charter School Capital, walked through funding options, challenges and best practices for schools finding themselves in need of a new or updated facility. If you missed the session, you can find the slides and recording here.
I had the pleasure of meeting onsite with leaders from charter management organizations, education management organizations, independent charter schools, and others. While the funding needs and visions for these organizations differ, they are all rooted in and motivating passion for the charter school movement, and were inspiring to speak with.
I even found some time to attend sessions outside the Charter School Capital content, and particularly enjoyed the “Legal Update for Florida Charter Schools” presentation provided by Daniel Woodring, of Woodring Law Firm. His session covered lawsuits over Florida House Bill 7069, information on what happens to persistently failing schools, legal issues for charter schools in Florida with respect to public records, among others.
All in all, this year’s conference was a hit. I am sincerely looking forward to the return of the Florida Charter School Conference next year in Orlando, Florida at the Caribe Royale Resort and Convention Center. Mark your calendars now for October 16 – 18, 2018 and I hope to see you there!

It’s hard to believe the Charter Schools Development Center’s “Leadership Update” Conference is next week! Held in San Diego,CA November 16-17, the event is designed to provide California’s charter school movement with the skills and knowledge needed to thrive during the school year ahead. This year’s event will undoubtedly promote thought-provoking content on the latest charter issues.

I am genuinely looking forward to meeting with charter leaders and members of the charter community again at this years conference. If you have the time, I’d encourage you to stop by our table and say hello. As Charter School Capital’s California funding specialist, I love speaking with charter school leaders on funding and facility needs – but also any educational or how-to content we can provide.

Charter School Capital has been providing financial solutions for working capital and facilities financing to the charter community in California for over a decade. In fact, we have now provided over $1.6B in financing to over 600 charter schools serving over 650,000 students nationally. Since our entire business is 100% focused on charters, we truly have the experience and the focus to solve some of the unique financial challenges charter schools face. Running a charter school comes with some unique business challenges and we seek to understand the whole picture of a school’s operations and look for a way to solve those challenges collectively with the school. Here are a couple examples:

Many times new and expanding charters will face cash flow crunches in the early stages of the year. New schools do not receive their first principal apportionment payment sometimes until the first week of October and, unless they have a start up grant or some philanthropy, they may not have the cash on hand to open the doors for the start of the school year. Expanding charters with increasing enrollments, either by adding grades or straight organic growth will have the challenge of cash flow crunches in P1 until the state catches up with payments in P2. In. In both situations Charter School Capital has helped many charters throughout California over the years receive the necessary funds in time to open the doors or balance the cash flow issues during these times.
Another area that Charter School Capital has been helping charters in California is with unique facilities financing solutions. Proposition 39 space is an ongoing challenge for many charters in California. The uncertainty of available, equitable space continues to be a point of contention for charters and their authorizing districts. Reapplying year after year for district provided space can be time consuming and create a lot of uncertainty for potential parents and students enrolling in the schools. The space often does not provide enough parking, access to labs, libraries, and outside space. While colocating on the same campus with district schools poses a bevvy of other issues. At Charter School Capital we provide the opportunity for charters to acquire properties that will allow for expansion in a permanent facility knowing they have full control of the property. And they don’t have to become real estate experts over night or become landlords. They can focus on teaching kids while Charter School Capital provides a long term lease with no out-of-pocket expenses, while also collecting SB740 money. If the school ultimately wants to use bond financing long term that is an option too. Either way, the schools can make this dream a reality today without having multiple renewals or deep reserves.

I hope you will stop by the table to introduce yourself. I look forward to the chance to meet with you and hear about the wonderful things that you organization is doing for California students. I want to know your story and learn more about how we may be of service.

If you’d like to set up time in advance to discuss your school’s vision and funding or facility needs, email us at growcharters@charterschoolcapital.com and we’ll get something on the books. Safe travels and I look forward to seeing you there!