We’re headed to the 2019 National Charter Schools Conference

National Charter Schools Conference: Viva Las Vegas!!!

Can you believe it’s almost time for this year’s National Charter Schools Conference? The Charter School Capital team is packing up and heading to sunny and warm Las Vegas June 30-July 3 for the National Charter School’s Conference being held at the beautiful Mandalay Bay Hotel. The theme of this year’s conference is Reimagining Education and who better to represent that theme than this year’s featured speaker, the founder of Khan Academy, Sal Khan!
We are really looking forward to connecting with—and being inspired by—charter school leaders and school choice advocates from across the country.
Did you know that there will be more than 100 engaging breakout sessions and Sal Kahn, founder of the Khan Academy, will be one of the several inspirational keynote speakers?
If you are planning on attending, we’d love to meet you! Please stop by booth #602 to say hello and claim a pair of our exclusive 2019 #WeLoveCharterSchools socks (while supplies last)!
Additionally, we are honored to have been selected to present an important breakout session at this year’s event and hope you’ll be able to attend:
Play It Safe! Understanding and Implementing the Key Layers of School Safety
Tuesday, 7/2 | 9:00am| Room 378
(If you can’t make it, don’t worry, the session deck will be available online.)
As always, we’ll be sharing as much as possible of this inspiring event on our social channels including Facebook, Twitter, Instagram, and LinkedIn. We invite you to join the conversation as well by using the hashtags #NCSC19 and #WeLoveCharterSchools so we can help amplify your voice and the voice of the movement!
Learn more about the conference and our session here.
There will be dozens of meet-ups, happy hour events and 100+ breakout sessions in the following programming strands: govern, educate, lead, operate, advocate. The conference officially kicks off on Sunday, June 30, with the welcome reception from 6:00-8:00 pm. Hope to see you in Las Vegas! And don’t forget to stop by our Booth #602 and say hi!

Charter School Investment: Why It’s a Good Idea

Editor’s Note: This article was originally published here on April 4, 2019 by The National Alliance for Public Charter Schools and was written by Nathan Barrett, Ph.D, the senior director of research and evaluation at the National Alliance for Public Charter Schools. The study conducted by the University of Arkansas shows charter school investment is a good bet due to their growth trajectory, academic performance, cost-effectiveness, and return-on-investment comparisons across public charter and traditional public schools.
We think it’s vital to keep tabs on the pulse of all things related to charter schools, including informational resources, and how to support school choice, charter school growth, and the advancement of the charter school movement as a whole. We hope you find this—and any other article we curate—both interesting and valuable.

Why Investing in Charter Schools is a Good Idea

A recent study released by researchers at the University of Arkansas, A Good Investment: The Updated Productivity of Public Charter Schools in Eight U.S. Cities, provides key insights into cost-effectiveness and return-on-investment comparisons across public charter and traditional public schools.
The authors highlight the fact that, on average, charter schools have a positive effect on student achievement and ask what these effects mean in the context of potential resource disparities across sectors. The study looks at charter schools in eight cities (Atlanta, Boston, Denver, Houston, Indianapolis, New York City, San Antonio, and the District of Columbia) and found that charter schools outperform traditional public schools on both cost metrics—overall and for in each of the eight cities.

Per-Pupil Revenue is Well-Spent in Public Charter Schools

Researchers calculated the cost-effectiveness of public charter and traditional public schools using math and reading test scores—specifically National Assessment of Educational Progress (NAEP) scores—compared to cities’ per-pupil revenue to determine how effectively each sector was able to impact student achievement per $1,000.

In all eight cities, public charter schools outperform traditional public schools in both math and reading cost-effectiveness.
The public charter school sector delivers a cross-city average of an additional 5.20 NAEP points per $1,000 funded in reading, representing a productivity advantage of 36 percent for charter schools.
The cost-effectiveness advantage for charter schools compared to TPS regarding NAEP reading scores ranges across the cities from 5 percent (Houston) to 96 percent (Atlanta).
The cost-effectiveness for charter schools compared to TPS in terms of NAEP math scores ranges from 5 percent (Houston) to 95 percent (Atlanta).

Return on Investment in Public Charter Schools

When the researchers compared the return-on-investment (ROI) of dollars spent on students in public charter schools and traditional district schools, charter schools came out ahead for both student achievement and lifetime earnings—concluding that public charter schools in these eight U.S. cities are a good public investment in terms of the comparative amount of student achievement they produce for the funding they receive.

In all eight cities, public charter schools outperform traditional public schools in standardized test scores despite receiving less funding per pupil.
On average, each dollar invested in a child’s K-12 schooling in traditional public schools yields $4.41 in lifetime earnings compared to $6.37 in lifetime earnings from each dollar invested in a child in public charter schools—a 45 percent advantage for students in public charter schools.
A student who attends a public charter school rather than a traditional public school for their entire K-12 education ranges from 7 percent (Houston) to 102 percent (Atlanta).

These results are promising but it should be noted that this study is purely descriptive and, while the study uses a fairly representative sample of charter sectors from across the country, more work needs to be done to analyze these patterns in other areas. Nonetheless, this provides compelling evidence that charter schools are delivering more for our students with less resources.

Since the company’s inception in 2007, Charter School Capital has been committed to the success of charter schools. We help schools access, leverage, and sustain the resources charter schools need to thrive, allowing them to focus on what matters most – educating students. Our depth of experience working with charter school leaders and our knowledge of how to address charter school financial and operational needs have allowed us to provide over $1.8 billion in support of 600 charter schools that have educated over 1,027,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!

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If you feel that finding the perfect facility for your charter school seems like a huge, complicated undertaking, you’re in good company. Across the U.S., facilities are, by far, the greatest challenge faced by charter schools. Planning and financing any facility project is complex, time consuming, and has the potential to distract your team from its core mission: serving your students. Check out these five key considerations when considering charter school facility financing.

1. Before you do anything else, understand what you can afford.

Take the time to understand your revenue and expenses. Knowing what you can afford for rent will inform how much you can borrow for your new facility or facility expansion.

2. Plan at least a year ahead.

Any kind of facility expansion will involve quite a lot of effort and likely involve your entire team. The range of burden varies, but moving staff, students, furniture, and equipment is an enormous undertaking. If you’re renovating your current facility, you still need to plan ahead so your programs aren’t disrupted.

3. Look at market trends

The charter school market boils down to this: Plenty of kids want to attend charter schools, but there just aren’t enough seats, classrooms, and schools to serve all of them. Looking at market trends, money is cheaper than it was a decade ago or even five years ago, but interest rates have actually been rising over the last few years and are expected to continue to rise even more. The Federal Reserve Board is always analyzing the effect of interest rates on inflation and economic growth and has the ability to raise or lower them at any time. Changing interest rates affect every aspect of the capital markets.

4. Reconcile your dreams with your budget realities

Three key considerations here are:

Requirements: Everyone wants a school that they can be proud of, but that isn’t as important as having a facility that enables you to meet your academic mission, fulfill the promises made in your charter, and meet your charter’s enrollment goals in the near term. So, go back to your mission and your board of advisors and dive deeply into what your facility must have to carry out your mission. Science lab for a STEM school? Auditorium or music room for a performing arts school?
Curb Appeal: What are the minimum requirements needed to attract enough families to meet your enrollment goals? The way your facility looks isn’t as important as what it can do—but it’s still important. Depending on the area, the way a school looks can have a significant impact on student enrollment, and enrollment numbers drive operating revenue, which in turn affects the quality of your academic programs.
Budget: Taking into account revenue and financing streams, what can you afford? Getting prequalified is the key first step in the process of renovating, expanding, or finding a new facility.

5. Understand the financing options available to your school

There are four main types of financing that charter schools use to finance facilities:

Cash
Investment Banks
Bonds
Long-term Leases

Your financing options may expand as your school matures. After a school secures its first charter renewal, more options become available, and the more conservative players in the capital markets begin to feel more confident about participating.
Depending on your school’s specific situation, one option may be the obvious best choice, or maybe you’ll need to weigh the pros and cons of a few different options. For each option, compare and contrast the amount of funds you’ll spend up front and annually to get the facility that you need. The time and opportunity costs associated with each option can vary widely, with bonds generally on the high end and long-term leases on the low end. Some transactions can take six to 12 months; a long-term lease typically takes between 60 and 90 days.

Charter school facility financing is complex, that’s why it’s so important to find the right funding partner to help guide you through the process and help you succeed. Charter School Capital has years of experience in navigating the unique needs and challenges of charter schools and has helped schools achieve their facility goals using each of those methods—and our team of dedicated charter school experts will help you see which solutions might be best for your school’s situation. Connect with one of our charter school advisors to learn how we can help you achieve your goals.

If you’re still feeling overwhelmed, don’t worry, we’ve developed a manual to cover our perspectives on the charter school facilities landscape market and provide you with practical and actionable advice on planning and realistically balancing your team’s facility dreams with budget realities. We also cover in-depth the four primary funding structures that charter schools use to finance facilities mentioned above: cash, banks, bonds, and long-term leases.

Download this guide to get a deeper dive into the five keys to charter school facilities financing we’ve mentioned in this blog post.

The Ultimate Guide to Charter School Facility Financing:
Thinking about a new facility for your charter school or enhancing your current one? This guide shares straightforward and actionable advice on facilities planning, financing options, getting approved, choosing a partner, and much more! Download it here.

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Three Keys to Increasing Charter School Enrollment

For this episode of our CHARTER EDtalks, Ryan Eldridge, one of Charter School Capital’s Charter School Advisors, had the honor of sitting down with Tom Tafoya, Chief Operations Officer for Visions in Education as he shares three keys to increasing charter school enrollment.
Visions in Education is a tuition-free public charter school that supports personalized learning in public education. They now serve over 6,400 students across a nine-county service area, making us one of the largest and most stable charter schools in the Sacramento Valley region.
To learn the tips and strategies Tom Tafoya so generously shared with us, please watch the video or read the transcript below to get the full story.

Ryan Eldridge: Thank you. And welcome to this episode of CHARTER EDTalks. I’m Ryan Eldridge, Charter School Advisor for Charter School Capital. And I’m honored to be joined by Tom Tofoya, Chief Operating Officer of Visions in Education. And we’re here to discuss enrollment marketing and how to increase enrollment numbers, period.
Tom, thanks for joining us. And what would you say are three main keys to increase enrollment for charters schools?

1. Have a multi-faceted marketing plan

Tom Tafoya: So for us, we’ve really focused on marketing, making sure your website’s really effective to inform folks and then what are your internal processes and systems look like to support all that. Over the years we’ve been averaging about a 10% growth rate a year and turning away hundreds of kids every year. And that’s really a result of being able to attract folks out there with our marketing, whether that be social media, pay per click, print, radio, there are different strategies for different communities. We try them all to really bring people to our website.

2. Have an effective website

Tafoya: And so two things are really important, to have your website be really informative but brief and really easy to read.
I’ve seen so many websites, school districts and other charter schools where it’s a vomit of information and because every department wants to tell everybody what they do. And yet, that website is sole purpose is really to inform potential students about your school. And people today are, they’re lazy, they want it simple and easy to read and they want an Amazon-like service and Amazon-like technology.
And so your website needs to be really easy to follow, informative and it’s got to be able to be read well on a phone. Everything is mobile. We know from our data internally that 70% of the traffic coming to our website is on a phone. And so we’re focused continually on making sure that our website is enabled for phones and other mobile devices.

3. Have the processes and personnel in place so you can be responsive

Tafoya: And then every person who comes in can be responded to very quickly. And so that’s really through the use of what we call a contact form, which we collect some basic information, give them a little info kit. And that enables us to capture some information about them and basically fulfill their request for more information.
Because we don’t want to just be marketing bombarding people for no reason. This is them saying, I want more information about your school. And so we use that contact form to enable that information to be captured. And then we have systems and people in place to follow up with those, what we call contacts.
And then we make it a point to make sure we’re calling them back within a day. We’re engaging with them, answering all their questions and really handholding them throughout the information and learning process. And then the application all the way to the enrollment process.
And I think if you have those three things in place and do them consistently well, I think you can’t help but grow enrollment. So that would be the main three things. Marketing, a good website, and good people and processes to manage all those inquiries and the applications to ensure that you’re able to bring people through quickly and pain-free as possible.
Because of the online application process, you have to produce a lot of documents, you got to fill out lots of forms, et cetera. So you want to make that as easy as possible for your customers because they’ll just go somewhere else if you make it difficult or if you don’t follow up, you don’t call them back, they’ll just go somewhere else. And so it’s really important to be “Johnny On the Spot” with those inquiries and help them throughout the process. Making sure you have staff available to do that is super important.

On setting manageable charter school enrollment timelines

Eldridge: Yeah. So what’s the average time frame from somebody from the first contact with the family, that they actually are fully enrolled in the school, from your experience at least?
Tafoya: So it’s seasonal. So there are certain times of the year where an inquiry might come in on Monday and by Friday we’ve already enrolled them.
Eldridge: Wow.
Tafoya: And that’s with them submitting an online application. So, you better have an online application and then you’ve got to collect all the forms and paperwork. And a lot of families, they want to come to us. So, they’ve got the paperwork ready to go and if they’re able to do that and we have the bandwidth and the openings, we’ll get them in right away.
But generally, I would say from the time they fill out a form on the website to the time they’re enrolled, is two to three weeks. We’re dealing with hundreds of contacts a week coming in. And then another couple of hundred of applications during peak periods. July and August tend to be a really big enrollment season. So it’s probably taking three weeks around that range.
But if they fill out a form on our website, we get to get back to them within one day, one business day. That is our goal.
Eldridge: Yeah. And you’re in a school of over 6,000 kids. So I mean there’s a lot of charters out there that are much smaller than 6,000, but I would say you must have multiple people on staff to handle all the calls.
Tafoya: We have a team of people. Our enrollment team is out there helping them throughout the process and everybody, a team of about six to eight people doing that. But you need it to collect the paperwork, the immunizations, get the enrollment appointments, sign the master agreement. All of those pieces to the puzzle have to be done. And so that team does it all. They’re amazing. They stay focused and they really get it done.
Eldridge: Yeah, that’s great information. And I’m sure a lot of people appreciate it out there, especially from the size of the organization you are. So that wraps it up for this episode of CHARTER EDtalks. Again, Tom, thank you very much for joining us and hope you enjoyed it out there. Thank you.

Digital Marketing for Charter Schools: An Actionable Workbook to Help You Achieve Your School’s Goals!
Scratching your head as to how to go about implementing digital marketing for your charter school? You’re not alone! This free manual will be your go-to guide for all of your school’s digital marketing needs! Download this actionable workbook to help get your marketing plans started, guide you as you define your audience and key differentiators, choose your tactics, and start to build your campaigns.

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The Charter School Movement Thriving: A look at the Growing Numbers

Editor’s Note: This information/report about the growth of the charter school movement was published by the National Alliance for Public Charter Schools on March 11, 2019 and can be found here. We think it’s vital to keep tabs on the pulse of all things related to charter schools, including informational resources, and how to support school choice, charter school growth, and the advancement of the charter school movement as a whole. We hope you find this—and any other article we curate—both interesting and valuable.

Over the past ten years, enrollment in charter schools has increased by nearly 2 million students—and the number of school districts with a significant charter school presence continues to grow, too. When the National Alliance published the first edition of this report in 2006, only one district—New Orleans—had more than 30 percent of its students enrolled in charter schools. In 2017-18, 21 districts had at least 30 percent of their students attending charter schools.

Public charter schools are unique public schools that foster innovative approaches to solving some of today’s most difficult educational challenges. Over the past ten years, enrollment in charter schools has increased from 1.3 million in 2007-08 to nearly 3.2 million in 2017-18.

In addition, the number of school districts with a significant charter school presence continues to grow. In 2017-18, 21 districts had 30 percent or more of their students enrolled in charter schools, and 214 districts had at least 10 percent of their students enrolled in charter schools. In 2017-18, more than 10.5 million public school students, or one in five, attended school in a district with at least 10,000 total students and 10 percent or more charter school enrollment share.

Free from many of the constraints that traditional schools face, the charter school movement has been a leader in innovation, school choice, and education reform for more than 25 years. At the same time, charter schools are held accountable for advancing student achievement by the communities and states they serve.

The unique combination of innovation and accountability have allowed charter schools to demonstrate that all children are capable of academic achievement that prepares them to succeed in college, their career, and their life. Charter schools have led efforts to eliminate achievement gaps, boost graduation rates, and revitalize communities.

Because charter schools have a successful track record of meeting students’ specific needs, parental demand for them remains high. In fact, a 2016 survey commissioned by the National Alliance for Public Charter Schools shows that 78 percent of parents support a new charter school opening in their neighborhood.1 In addition, most parents, regardless of background, support public school choice.

This report identifies communities that have the highest percentage and the highest number of students enrolled in charter schools. The National Alliance collected public school enrollment data from 2017-18 to identify communities across the country where the highest proportions of students were enrolled in charter schools.

To calculate these proportions, charter schools were mapped to geographic school district boundaries based on their address. This report compares the enrollment of charter schools located within geographic school district boundaries with district run schools in the same area, resulting in “enrollment share.”

To download the full report, click here.

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We hope these six start-up tips help guide your team to learn from others, stay focused, build relationships, mind your budget, and stay on mission— all to spur growth and long-term success.

1. STUDY AND MEET WITH SCHOOLS THAT ARE DOING THINGS WELL

How are other schools helping their students achieve academic success? Are there ways to adapt those tactics to your curriculum? You can learn a lot from those who have already walked the path, so it’s always a good idea to connect and maintain positive relationships with other educators.

2. MASTER A FEW THINGS AND DO THEM REALLY WELL

Don’t try to be a master of everything—it’s impossible. Have a strong outline of the implementation plan proposed in your charter petition. What are your goals for the first few years? It’s better to have a plan and be straightforward about incremental goals than to promise a lot of things and to fail to deliver.

3. BUILD GENUINE AND ROBUST RELATIONSHIPS

Build real relationships with parents, teachers, leaders, vendors, and external constituents. Never create enemies. Always be honest and genuine, even with your detractors. Foster strong relationships with your vendors and even with businesses that could become your vendors later on. You’ll have emergencies and may need things you hadn’t planned on in a hurry. Vendors will be more likely to come through in a pinch if they already feel a personal connection with your school.

4. PAY CLOSE ATTENTION TO THE BUDGET

As needs change and shift, review the budget and make sure it aligns with your goals. Always prepare for the unexpected and have a plan for dealing with surprise cash flow issues. Build a solid relationship with your financial partners; treat your budget as a living document; and know how you’ll pay for everything. Above all: never miss payroll.

5. PAY EVEN CLOSER ATTENTION TO STUDENT PROGRESS DATA

Everyone will want to see your student data, but you may not have much of it at the beginning. Think about the data you do have and how you can report it in the most compelling, meaningful way possible. In addition to the metrics you track to maintain your charter and to report to regulators, find out what’s meaningful to parents and report that out: attendance, time-to-completion, classroom hours, pages read, math problems solved, miles run. Make sure to share the data with students, too.

6. DO NOT WAVER IN YOUR BELIEF OR YOUR MISSION

You will encounter people who will try to convince you to change your mission to suit their needs. You can’t please everyone. Your mission should serve as your guideposts when you’re faced with tough decisions; they absolutely shouldn’t be the thing you modify when faced with a tough decision.
To download this information in PDF format, please click here.

The Charter School Growth Manual
Whether you’re just beginning the process of starting up a charter school, looking to expand, or trying to prioritize your next steps, download this guide to get expert tips and pitfalls to avoid as you grow.
For this charter school resource guide, we turned to our wide network of charter school experts for best practices and strategies for success at every stage of maturity. All of the advice in this book comes from experienced charter school leaders who have been where you are now—they understand what you’re facing and the pitfalls to avoid.

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End of Session Florida Legislative Update: Some Good News for Charter Schools

Here’s your Florida legislative update:
The 2019 Regular Legislative Session in Florida ended in overtime as budget negotiations went several hours longer than anticipated in the last week forcing lawmakers to extend the session by one day. But in typical “last minute” fashion they finalized what would end up being some of the most significant education policy in recent years.
In the final weeks of the session, policy and budget negotiations between the House and Senate began to merge, with the final days leading to a tennis-match-like back and forth between the two chambers. Lawmakers would take up bills, add amendments and send them over to the other chamber to be passed. Many times, the members in the other chamber wanted different language, so they would add amendments of their own and send it back to be considered. This “bouncing” of bills back and forth in the waning hours of session can be quite unnerving. It is possible for the session clock to run out before compromises are agreed upon and an identical bill passed by both chambers, which can lead to the bill dying in the process before it can be passed by both chambers.
This happened with one bill in particular that included some significant language pertaining to funding Florida charter schools.
Over the last several years, voter-approved special referendums have become very popular with Florida school districts as a means to collect additional tax revenue to benefit public schools. Most of the districts going this route have in one manner or another excluded public charter schools from benefitting from these tax-payer approved referendums.
Seeing this pattern of exclusion, the House proposed language in its annual tax package (HB 7123) that would compel school districts to share with charter schools tax revenues from special tax referendums approved by voters. This requirement would not only apply to future referendums but those that had already been approved by voters. The House voted this bill out and sent it over to the Senate on April 26.
The Senate took up the bill on the last scheduled day of session (May 3), but some Senate members were not in favor of the House referendum language, particularly applying to levies already in effect. They amended the bill that essentially said nothing prevents districts from sharing revenues but did not compel them to do so and “bounced” the bill back to the House to accept and approve.
The House didn’t approve and was adamant that school districts be mandated to share this revenue with charter schools. However, in the spirit of compromise, they did agree to throw the Senate a bone and make the provision prospective and not retroaction, which meant the mandate would apply only to future referendums and not those that had already been approved by voters.
The House then “bounced” the bill back to the Senate with this compromise language to accept and approve. This time the Senate relented, accepted the new language and approved the bill, just as time was running out.
The Florida Legislature passed a number of major education policy initiatives that expanded Schools of Hope, increased access to school choice scholarships, enhanced career, and workforce education and provided bonus’ for the best and brightest teachers.
But the most significant single policy change for charter schools is the special referendum language passed in HB 7123. This alone could provide significant financial stability to many Florida public charter schools so they can continue to offer quality choice in K-12 education.

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Editor’s Note: This article was originally published on May14, 2019 here by The 74. It was written by Earl Martin Phalen, founder and CEO of the George and Veronica Phalen Leadership Academies.
We are strong believers in education reform, school choice, and the responsibility we have as a country to provide equal educational opportunities for all of our nation’s children. We also think it’s vital to keep tabs on the pulse of all things related to charter schools, including informational resources on school choice, charter school growth, and the advancement of the charter school movement as a whole. We hope you find this—and any other article we curate—both interesting and valuable.

Phalen: Modest Reforms Are Not Enough to Give Millions of Kids a High-Quality Education. We Need Bold Action to Transform Our Schools

This essay is part of a special series commemorating the 65th anniversary of the landmark Brown v. Board of Education school desegregation case. Read more essays, view testimonials from the families who changed America’s schools and download the new book Recovering Untold Stories: An Enduring Legacy of the Brown v. Board of Education Decision at our new site: The74Million.org/Brown65.
Many believe that the historic Brown v. Board of Education case was only about integration. It wasn’t. It was truly a courageous effort to leverage the legal system to help ensure that through education and hard work, all children can fulfill their tremendous innate potential.
While this value was one of the fundamental pillars of our great nation, it was not the reality for many. For many American children, education — in addition to housing, health, safety and access to capital, to name a few — was both separate and unequal.
Brown was an effort to ensure all children had access to a high-quality education that, when combined with their hard work and effort, would position them to pursue their dreams. Sixty-five years later, while there has been so much progress in so many areas, access to a high-quality education is still out of reach for millions of American children. By conservative estimates, nearly 9,000 of our nation’s 98,000 public schools are abysmal. Every day, 5 million children are being separated further and further from their tremendous, God-given, innate talents. Every day, we are setting up millions of our children to fail.
Although many initiatives and billions of dollars have been invested into reforming our schools over the past few decades, those efforts have produced only modest improvements. Other efforts to improve the quality of education for all American children have focused on offering low-income families choice, through charter schools and, for those who could afford it, vouchers. Charters, when implemented well, have brought the vision and spirit of Brown to life: Institutions like the Kauffman School, Brooke Charter School, Success Academies, Rocketship, KIPP, IDEA Public Schools and many, many more have provided excellence and given children the opportunity to transform their futures — and their families’ futures — through a good education.
Unfortunately, modest reforms to traditional public schools, and the development and expansion of charter schools, cannot solve this problem alone. Today, charters make up only 5 percent of the schools in the United States, and while many have been exceptional, many more are mediocre at best and horrific at worst.
More and more, I believe that we must take bold action in transforming our nation’s failing public schools, where most of our children currently go. Organizations such as Green Dot, Democracy Prep and Friendship Charter Schools are demonstrating that not only is school turnaround possible, it can be done in authentic collaboration with our public school districts and educators. In fact, their models’ successes are centered on collaboration, realizing the genius of Brown to create positive change from within the system, thus closing the gap between what is needed today and what is possible tomorrow.
Because of the valiant and courageous leadership provided by several of these nonprofit organizations, Phalen Leadership Academies entered the turnaround space. Founded only six years ago, PLA, named in honor of my parents, has already successfully transformed five F-rated schools into A-rated schools. And we did this with most (87 percent) of the same staff, a strong educational model and a fierce urgency that reflects our love for our scholars.
Today, millions of American children are attending schools that are chaotic and unsafe; where little teaching and learning is taking place; and where students are being pulled further and further from who they are meant to be. I truly hope that those who can and those who care use every ounce of their power to give these and all our children the education and the futures they truly deserve.

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Charter School Finances: Budget Best Practices

Since the opening of Charter School Capital 10 years ago, we’ve reviewed thousands of charter school budgets. Year after year, we see common mistakes many charter schools make when budgeting for their academic year. So, we’re sharing some budgeting best practices to help you have a financially successful academic year—whether your school is growing student enrollment, expanding facilities, or implementing new educational programs. Don’t just survive – thrive!

Start Up School

Start with a petition budget
Pay close attention to your budget and then map out your priorities for the year
Have a plan and show all costs (in each stakeholder’s area) frame the proposed budget
Build a budget that includes everything on your wishlist, then prioritize (with all stakeholders)
Plan for surprises by having a budget surplus to cover unexpected costs
Lay the foundation for your annual budget, but plan for regular updates

Growth / Mature School

1. Start with a baseline budget, based on previous year
2. Pay attention to how enrollment projections directly affect revenue
3. Actively manage your cashflow: financing, receivables, payables, etc.
4. Understand your accounts payable and vendor relationships
5. Strategically partner with external service providers and keep them in the loop

Tip: Creating a wholistic and realistic view on what’s affordable (and what’s not) helps all stakeholders get on the same page, building a solid frame of reference for future budgets.

Cash Flow Planning

Which attendance metric drives your revenue?
What revenue is monthly, quarterly, or more variable?
What happened in prior years with regards to timing of payments?
Which costs are fixed monthly and which vary?
Communicate with your vendors to plan your accounts payable according to your budget ebbs and flows
Financing: Note timing of inflow from your financer and outflow timing for payments (balloon payments, etc.)
Receivables: Map out timing of state payments and how that timing affects your cashflow

Revenue Factors to Consider

Free and reduced price lunch: Correlate to your fundraising needs
Track and understand your fundraising families and need for per-student fundraising goals
Restricted grants: How were they intended to be spent and what programs are reliant on them?
Have a plan for the sustainability of institutional fundraising and the programs it supports

Spending Trends to Be Mindful of

Salary scale changes: Your area’s unemployment rate, demand for teachers, increasing salaries
Retirement benefits: Compare offering a defined contribution plan to a defined benefit plan
Textbooks and technology: Do you need to renew or change your school’s to stay current?
Be mindful of facility cost increases (interest rates, exemption laws, etc.) Plan how to fund updates

Budget Safeguards

Review salary scale changes with the future in mind
Consider non-financial perks for your employees: recognition, flexibility, career paths and professional opportunities, etc.
Have an equipment/technology plan to budget for upgrading or replacing your technology infrastructure
Plan new any construction needs, identify your maximum enrollment, and set a facilities reserve fund
Set target fund balance and target cash balance
Have an annual Board of Directors discussion on your school’s long-term initiatives, with a focus on your mission

Click here to download this resource in PDF format.

Over the past decade, we’ve reviewed thousands of charter school budgets and helped guide countless schools through their charter school financing processes. Year after year, we see many charter schools make the same mistakes when budgeting for the academic year. To help you achieve your goals, we’ve put together this informative and thorough guide to share best practices and call out common pitfalls to avoid.
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• Utilizing tips on cashflow planning and more!
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Charter Schools Operations: How to Manage for Sustainability

For this episode of our CHARTER EDtalks, Ryan Eldridge, one of Charter School Capital’s Charter School Advisors, had the honor of sitting down with Tom Tafoya, Chief Operations Officer for Visions in Education as he shares his tips for managing sustainable growth and provides key operational strategies for long-term success.
Visions in Education is a tuition-free public charter school that supports personalized learning in public education. They now serve over 6,400 students across a nine-county service area, making us one of the largest and most stable charter schools in the Sacramento Valley region.
To learn the tips and strategies Tom Tafoya so generously shared with us, please watch the video or read the transcript below to get the full story.

Ryan Eldridge: Hello there, and thank you for joining us for this episode of CHARTER EDtalks. I’m Ryan Eldridge, charter school advisor for Charter School Capital. I’m honored to be joined today by Tom Tafoya, Chief Operations Officer for Visions in Education.
And we’re here to discuss managing sustainable charter schools, operational strategies for long term success. So I appreciate you coming today, Tom. Welcome. Why don’t we just kick it off, jump right into it? The first question… So Visions has been around for about 20 years now. So what have been some of the greatest challenges over the years?

Overcoming Initial Challenges

Tom Tafoya: So I’ve been with Visions for 14 years, and over that timeframe, we’ve encountered a lot of ups and downs. You know, when we had initial growth we did not have a lot of administrative systems and people in place to manage the growth. We tripped over ourselves constantly and I think that really hurt us.
We had a period where we had declining enrollment because we just weren’t doing our job well. And so I think over that time, we started to get smarter, and started bringing the right people, and started building the systems for kind of sustained growth.
Starting out with not having some good administrative systems and people in place really was a challenge. At the same time, you have the competitor pressure. So if the competition is coming and you’re not really set up to succeed, you’re not going to succeed. And so I think between the … just having good systems and good structures for the operation, let alone are we providing great services to our students is a really big challenge. And I’m only going to talk about the operational pieces. Because as the operations officer, I’m in charge of business technology, enrollment, ordering materials, all those types of things.
From my perspective, not having good people and systems was a big challenge. And then the competition, and then you have the external environment that’s constantly changing and impacting the things that we have to do to meet our obligations as a charter school.

Maximize Revenues

Tafoya: Those are some of the big challenges that we faced over the years. The big things in trying to maintain a sustainable charter over time is really being focused on two things: maximizing revenues, minimizing expenditures. It sounds so simple.
Under each of those umbrellas, you can go for days on all the different tactics and strategies for each. And so I’ll just kind of cover some of the top two. Number one, maximizing revenue and driving enrollment and/or maintaining your enrollments are the top two.
So I think growing enrollment, but if you have a retention problem you’re going to continually have to keep filling that leaking bucket. And so we’ve done a lot of work to systematize and really improve our enrollment practices from using really advanced marketing, and building enrollment systems to have the workflow— the enrollment process— be very streamlined to continue to grow enrollment. And then also kind of working on ensuring that our retention is good.
And really, the biggest challenge is retention. Do we know why students are staying with us and why they’re leaving? Are we serving them or not? Are we learning from those surveys and making adjustments as we go?
And over time, we’ve done that. We’ve listened to the surveys, kind of paid attention to what the competitors are doing, making adjustments every step of the way so that those families that we get … we want to keep them. And then continue to grow the kids in a really managed way.
We don’t want to just chase growth for sake of growth because that’s generally going to lead to not a good outcome for the kids, because you’re not really serving them well. We’ve tried to approach it as a managed growth approach. We average about 10% growth a year.
Eldridge: Wow.
Tafoya: For us, that’s what we want to do. We’re turning away hundreds of kids a year, but we don’t want to get ahead of ourselves where we’re not providing really great services and systems to have good outcomes for them. And so, really focusing on that piece … that’s that maximizing enrollment piece which results in maximized revenues.
Certainly, you’ve got to pursue all types of revenues whether that be your SELPA arrangement, special ed, summer school ADA programs, Medical reimbursements. Are you fully utilizing all of your teachers because you manage them properly and appropriately?
Those are all tactics we’re constantly looking to turn over every stone to ensure we’ve maximized our revenues. Again, we’re not trying to grow 30, 40% a year. We want to maintain a really good, steady growth. But in that steady growth, maximize our revenue so that we’re not kind of wondering what happened to all the money.

Minimize Expenses

The flip side is minimizing expenses. And so with that is really … I’m cheap. I’m always looking for a deal, and I want to make sure we’re getting the best deal. Whether we’re building technology or buying technology, for all the staff we hire do we have systems and metrics in place to ensure our staff is fully utilized? That’s a lot of the work we do is really … We hire 10 new teachers, we want to make sure they’re full on day one and they stay full throughout the year.
You can only do that if you have really good enrollment processes and practices. As you lose a student, we can immediately replace the student. That’s a way for us to minimize our expenses on our staffing, and we have elaborate systems and processes in place to make sure that we’re able to do that with high efficiency. Which again, allows to really have a lot of money left over. We have an online program that serves about 2,500 kids. Every kid gets a Chromebook. If they’re low income, they get a MiFi unit. And those aren’t cheap. That’s how we’re able to do those types of things is by making sure every stone is turned over and every expense is minimized.
Really kind of paying attention, but this is taxpayer money. It’s not our money.
Eldridge: Right.
Tafoya: It’s taxpayer money. And we’re really cognizant of that, and respecting that, and doing our best with all the resources we have and trying to serve as many kids who want to be served by us. But doing so in a way that’s really good for them and not just for growth’s sake.
Eldridge: Yeah, that’s great. How many total students do you serve?
Tafoya: We serve about 6,300 right now. We have one charter in Northern California with 6,300 students. This past spring, we turned away about 900 kids. We do an independent study program, so we have homeschooling and several online high school programs … one for at-risk kids and one for kind of a college preparatory program.
Eldridge: Yeah. Yeah, that’s a lot of kids to manage. Sounds like you’re doing a great job up there. Appreciate you coming on screen today, and chatting with us, and giving your insight and expertise. That wraps up this episode of CHARTER EDtalks. Again, thank you, Tom. We appreciate it. Hopefully everybody enjoyed the session today. Thank you.