Charter School Financing: Your Guide to Budgeting Best Practices
The Charter School Leader’s Definitive Guide to Budgeting Best Practices
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. We put together this guide to share best practices and call out common pitfalls to avoid. (This guide won’t teach you how to put a budget together—you’ll need to call on your finance team for that.)
Whether your school is growing student enrollment, expanding facilities, or implementing new educational programs, your annual budget should serve as an essential tool to help you achieve your goals as quickly—and as realistically—as possible.
In this guide, we discuss budgeting strategies for the various stages of charter school development including:
Planning for long-term financial health
Implementing best practices for achieving buy-in and setting
internal controls
Understanding key financial metrics to watch
Utilizing tips on cashflow planning and more
At Charter School Capital, we believe in the power of charter schools and their leaders to deliver quality education and foster success in their students. Over more than a decade, we’ve invested over $1.6 billion in more than 600 charter schools to help them grow, finance facility projects, and achieve operational stability. We view ourselves as a resource and partner of charter schools and a strong advocate of the charter school movement as a whole.
This manual is intended for charter school leaders who want to be more strategic about charter school financing and budgeting and avoid short-term mistakes that can lead to unintended long-term consequences. This manual is only for informational and planning purposes. If you’re seeking financial advice or support, please seek out the guidance of a qualified professional organization such as Charter School Capital.
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The Charter School Solution: Helping Students Who Need it Most
Editor’s Note: This video was originally posted by PolicyEdhere. Can the charter school solution help close the student achievement gap in underserved populations? Studies show that charter schools are, in fact, leading the way in improving public education in America, especially for students who are traditionally underserved.
We think it’s vital to keep tabs on the pulse of all things related to charter schools, including informational charter school resources, how to support 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. Please read on to watch the short video and find even more charter school resources and links.
The Transcript:
Charter schools represent the largest attempt to innovate in U.S. public education in fifty years.
More than 7,000 now operate around the country educating over 3 Million students.
And since they’re required to be transparent about their students’ performance, we’ve learned that two groups of students consistently show strong learning gains relative to their peers in the district schools.
The first group are predominantly minority and low-income students in urban charter schools. They make substantial gains in both math and reading compared to students in other schools in their area.
The second group is comprised of students enrolled in charter school networks called Charter Management Organizations, which are made up of three or more schools under common management.
Their students do even better than those in independent charter schools.
These networks learn what helps their students, and then replicate what works across all the schools they manage.
By identifying proven methods and spreading them to other schools, districts, and communities, charter schools are leading the way in improving education in America, especially for students who are traditionally under-served.
Additional Information and Charter School Resources:
“Urban Charter Schools Report” and 22 state-specific reports that combine to offer policymakers unprecedented insight into the effectiveness of charter schools from CREDO, available here: https://stanford.io/1C8GoKF
“Charter Management Organizations, 2017” examines the life cycle of charter school networks from founding of the flagship school to development and eventual expansion of the network, available from CREDO here: https://stanford.io/2s6uFPW
“L.A. could learn a lot about charter schools from the Big Apple” by Margaret Raymond, available here: https://lat.ms/2jNLZcb
“It’s Time to Get Serious About Charter School Quality” by Margaret Raymond, available here: https://bit.ly/2mTxGEq How Well Are Teachers Doing? by Margaret Raymond, available here: https://hvr.co/2jNM8fJ
Since the company’s inception in 2007, Charter School Capital has been committed to the success of charter schools. We provide growth capital and facilities financing to charter schools nationwide. 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 $1.6 billion in support of 600 charter schools that educate 800,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!
Editor’s Note: This article was originally published on June 27, 2018, here. It was written by Demi Brown, the founding director of Empower Charter School in Linda Vista, California. We love articles like this that help dispell some common but unfair charter school myths:
Charter schools are private schools
Charter schools are selective
Charter schools aren’t accountable
Charter Schools “take away” funding from the district (Brown’s point here, that education dollars belong to the student, not the district, is particularly poignant)
At Charter School Capital, we are 100% dedicated to the charter school space and measure our success by the number of students we serve. Our ultimate goal is to help the charter school movement grow and flourish, and be able to serve more students. We take pride in the social impact that we’re supporting by helping charter schools succeed and think it’s vital to keep tabs on the pulse of all things related to charter schools, including informational resources, and how to support 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. Please read on for Ms. Brown’s complete story.
Why the greedy corporate charter school image is so wrong
By Demi Brown
My school recently celebrated the end of the school year with a graduation ceremony. It was a moment of great pride and honor for me. After four years, our school now serves about 130 students and we offer a unique Spanish dual language immersion program — and adding Mandarin next year!
This moment of joy in our school community was a sharp contrast to how a recent report commissioned by In the Public Interest, “The Cost of Charter Schools for Public School Districts,” would have you picture my school. They would present me as Scrooge McDuck trying to overtake the school district, rather than someone who spends most of her day coaching teachers to be their best and helping students navigate the ever-changing roadblocks that hit low-income families. The greedy corporate charter school image skimming students and lacking accountability is overplayed and in need of a reality check.
The fact is charter schools are public. Like traditional neighborhood schools, they are free to attend. Unlike traditional schools, they have no attendance boundaries and are run independently of the school district. As a public school, there is also nothing private about how charters are governed, with most following the Brown Act for open public meetings. Independent? Yes. Private? No.
I founded Empower Charter School because I wanted a school like this to exist for my own children. If you talk to other charter founders, their story is similar — they rose to the challenge to build a school for students who would otherwise be left out of an education system that best fits them.
This is not to say traditional schools are bad — they work for most, but not all. There are successful and unsuccessful schools in both districts and charters. To take a few bad charters and use them as evidence against all charter schools is a disservice to the truth, and ultimately to students. Most charters empower teachers as the leaders and professionals that they are. Charter schools can work outside of the system, shredding layers of bureaucracy so we can focus on learning.
Two big lies about charter schools: They are selective, and they aren’t accountable. These mantras have been repeated over and over to the point that they are taken as truth. But they are the easiest to dispute because the facts are the facts.
RELATED:Flexibility for Accountability
In California, charter schools are open to all. If a school has more applications than available seats, they must hold a random lottery. This is a law!
In exchange for flexibility, charter schools must meet high standards of accountability, even more than their traditional district counterparts. In addition to being required to meet state and federal education standards, they must also meet high student achievement goals and rigorous academic, financial, and managerial standards to be allowed to operate.
…education dollars belong to the student, not the district. To suggest that the funding is lost presumes it was the district’s to begin with.
A new concern came up recently when In the Public Trust released a study stating charter schools are costing districts money. However, when calculating the “cost to the districts,” the study calculated a regional dollar value by the number of current charter students enrolled in each district. This is erroneous for many reasons. First, education dollars belong to the student, not the district. To suggest that the funding is lost presumes it was the district’s to begin with.
Second, charter schools have been around in California for 25 years, school districts should have been prepared to adjust to shifting enrollment due to many other factors, including declining birthrates, families moving out of the state and students choosing non-district schooling options. Furthermore, the San Diego Unified School District chose to stop offering services to charter schools, which is a big missed revenue opportunity. And, the math doesn’t add up. Charter school enrollment has been steady over the last few years in San Diego Unified, the state has increased its revenues to schools, but somehow the district faces a large deficit and charter schools are to blame.
Today, about one in 10 students in California attend a public charter school. Charters are one piece of the education puzzle. We are not billionaires running faceless schools. We are educators who care deeply about ensuring all students have an education that best serves their needs.
That is the simple truth. Unfortunately, the lies funded by anti-charter groups have been louder, so the truth gets lost. I encourage people to dig deeper, question, and visit a charter to see firsthand the innovative work we do to meet the diverse needs of all students.
Since the company’s inception in 2007, Charter School Capital has been committed to the success of charter schools. We provide growth capital and facilities financing to charter schools nationwide. 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 $1.6 billion in support of 600 charter schools that educate 800,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!
Navigating the Most Complex Challenge Facing Charter Schools Today
Charter school facilities financing represents the single greatest challenge facing educational leaders across the United States. While your expertise lies in education—not real estate or finance—securing the right facility at the right price is critical to your school’s success and your students’ futures.
This comprehensive guide breaks down everything you need to know about facilities financing, from initial planning through final approval, helping you make informed decisions that align with both your educational mission and financial realities.
Why Charter School Facilities Financing Is So Challenging
Unlike traditional public schools that receive taxpayer-funded facilities, charter schools must navigate the complex world of private real estate markets and commercial financing. This fundamental difference creates unique challenges that can distract leadership teams from their core mission of educating students.
The facilities challenge extends beyond just finding space—it involves balancing educational requirements, aesthetic considerations, budget constraints, and long-term strategic planning while maintaining focus on academic excellence.
Critical Pitfalls That Derail Charter School Facilities Projects
Pitfall #1: Not Understanding Your True Budget
Before exploring any facility options, you must have a clear understanding of your financial capacity. This means conducting a thorough analysis of your revenue streams and existing expenses to determine realistic parameters for facility investments.
Essential Budget Analysis Steps:
Calculate current monthly operating expenses
Project future enrollment and revenue growth
Determine maximum affordable monthly facility payments
Account for one-time costs like moving, renovations, and equipment
Maintain adequate cash reserves for operational stability
Understanding your budget limitations early prevents costly mistakes and ensures you focus on realistic facility options that won’t compromise your educational programs.
Pitfall #2: Inadequate Planning Timelines
Facility projects require extensive advance planning—typically a minimum of 12 months for any significant expansion or relocation. The complexity of these undertakings affects your entire organization, from administrative staff to teachers and students.
Why Extended Planning Is Essential:
Legal and regulatory approval processes take time
Renovation and construction projects often face delays
Staff and student transitions require careful coordination
Furniture, equipment, and technology installations need scheduling
Program continuity must be maintained throughout transitions
Schools that underestimate these timelines often face rushed decisions, cost overruns, and disruptions to their educational programs.
The Strategic Triangle: Requirements, Aesthetics, and Budget
Successful charter school facilities decisions require balancing three critical factors that often compete with each other.
Educational Requirements: Mission-Critical Needs
Your facility must support your specific educational approach and student population. Different school models have vastly different space requirements.
Questions to Consider:
What specialized spaces does your educational program require?
Do you need state-of-the-art science laboratories for a STEM focus?
Does your arts program require performance spaces with specific acoustics?
Are you serving students with special needs requiring specialized accommodations?
Do you offer dropout recovery programs needing flexible classroom configurations?
Aesthetic Considerations: The Enrollment Impact
Your facility’s appearance directly affects enrollment, which drives the operating revenue that funds your academic programs. In competitive markets, aesthetics can make or break enrollment success.
Aesthetic Impact Factors:
First impressions for prospective families during tours
Competitive landscape—how does your facility compare to alternatives?
Community expectations and demographics
Impact on student pride and school culture
Long-term brand positioning in your market
Budget Reality: What You Can Actually Afford
Financial sustainability must guide all facility decisions. Even the most educationally perfect facility becomes a liability if it strains your budget beyond sustainable limits.
Pre-Qualification Process: Financial institutions evaluate multiple factors when determining your borrowing capacity:
Existing cash reserves and financial stability
Current and projected operating revenue
Charter renewal status and term length
Public subsidies and private funding sources
Grant opportunities and foundation support
Comprehensive Guide to Charter School Financing Options
Option 1: Cash Financing
Pros:
No interest payments or ongoing debt obligations
Complete ownership and control over the property
No collateral requirements or underwriting processes
Faster transaction completion
Cons:
Depletes cash reserves that could fund educational programs
Limits financial flexibility for unexpected needs
Opportunity cost—funds could generate returns elsewhere
Not feasible for most charter schools
Best For: Well-established schools with substantial reserves considering smaller facility investments.
Option 2: Investment Bank Financing
Overview: Traditional bank loans for charter school facilities typically require significant equity contributions and extensive underwriting processes.
Requirements:
Typically 20-40% equity contribution from the school
Demonstrated financial stability and enrollment trends
Strong leadership team with proven track record
Comprehensive business plan and financial projections
Pros:
Lower transaction costs compared to bond financing
More flexible terms than bond structures
Builds equity ownership over time
Cons:
Substantial upfront cash requirement
Extensive underwriting and approval process
Personal guarantees may be required
Limited availability for newer schools
Best For: Mature schools with substantial cash reserves undertaking major facility projects ($7+ million).
Option 3: Bond Financing
Reality Check: While many charter schools aspire to bond financing, only 12% of charter schools nationwide actually secure bond market funding. The remaining 88% rely on alternative financing methods.
Bond Financing Process:
Extremely thorough underwriting process
Hundreds of thousands in legal fees per transaction
Requires maintaining cash reserves for taxes and bondholder security
Typically 30-year terms with fixed costs
Pros:
No major upfront cash investment required
Potentially attractive interest rates for large projects
Fixed long-term costs provide budget predictability
Cons:
Complex, time-consuming approval process
Substantial legal and transaction costs
Ongoing compliance and reporting requirements
Reserved for larger transactions ($10+ million minimum)
Requires continued interest payments during cash accumulation period
Best For: Large, stable schools ready for permanent “forever home” facilities with no expansion plans.
Option 4: Long-Term Lease Financing
Overview: Long-term leases offer many benefits of ownership without the capital requirements and risks of property ownership.
Typical Structure:
20-40 year lease terms available
Minimal upfront cash requirements
School maintains operational control
Landlord retains property ownership and maintenance responsibilities
Pros:
Low initial capital requirements
Predictable monthly costs over lease term
Less complex underwriting than bonds or bank loans
Allows financing for furniture and equipment
Future operating revenues not held as collateral
Available to schools at various maturity stages
Cons:
No equity building over time
Potential rent escalations based on lease terms
Less control over major property modifications
Best For: Schools at any stage seeking facility control with minimal upfront investment and predictable costs.
Educational leadership credentials and track record
Financial management experience
Board composition and governance experience
Organizational management depth
How to Strengthen Your Leadership Profile:
Document previous successes and achievements
Highlight relevant experience in education and management
Demonstrate board expertise and engagement
Show succession planning and organizational depth
3. Sound Financial Management
Financial Health Indicators:
Debt service coverage ratios above minimum thresholds
Operating margins that support debt payments
Facility costs representing less than 20% of operating revenue
Strong internal financial controls and reporting
Appropriate cash reserves for operational stability
Financial Documentation Requirements:
Multi-year audited financial statements
Current year budget and financial projections
Cash flow analysis and debt service projections
Enrollment and revenue modeling
Expense management and cost control evidence
4. Excellent Governance and Authorizer Relations
Governance Evaluation Criteria:
Board composition, experience, and engagement
Compliance with charter requirements and state regulations
Financial oversight and audit processes
Academic performance and accountability measures
Community relations and stakeholder engagement
Authorizer Relationship Assessment:
Charter renewal history and prospects
Compliance with authorizer requirements
Academic performance relative to authorizer expectations
Financial management and reporting quality
Communication and collaboration effectiveness
Strategic Planning for Long-Term Success
Aligning Facilities with Educational Vision
Your facility should support and enhance your educational approach rather than constrain it. Consider how different spaces can:
Support innovative teaching methodologies
Accommodate diverse learning styles and needs
Enable collaborative and project-based learning
Provide flexibility for program evolution
Create positive school culture and community
Financial Sustainability Beyond Initial Financing
Ongoing Facility Considerations:
Maintenance and repair costs over time
Utility expenses and efficiency improvements
Technology infrastructure and upgrades
ADA compliance and accessibility requirements
Future expansion or modification needs
Building Community Support
Strong community relationships can provide additional resources and support for facility initiatives:
Parent and family volunteer assistance
Local business partnerships and support
Community foundation grants and donations
Municipal cooperation and assistance
Neighborhood integration and support
Next Steps: Moving from Planning to Action
Immediate Action Items
Complete Comprehensive Budget Analysis: Determine your realistic facility investment capacity
Assess Current and Future Educational Needs: Define space requirements that support your mission
Evaluate Market Conditions: Research available properties and competitive landscape
Strengthen Financial Position: Build cash reserves and improve operational efficiency
Engage Professional Support: Connect with experienced charter school facilities specialists
Building Your Facilities Team
Successful facilities projects require expertise beyond your educational leadership team:
Commercial Real Estate Professionals familiar with educational requirements
Architecture and Construction Specialists experienced with charter schools
Financial Advisors knowledgeable about charter school financing options
Legal Counsel specializing in educational and real estate transactions
Project Management Support to coordinate complex timelines and processes
Conclusion: Making Informed Facilities Decisions
Charter school facilities financing doesn’t have to derail your educational mission. With proper planning, realistic budgeting, and the right financing approach for your school’s stage and circumstances, you can secure facilities that support excellent education while maintaining financial sustainability.
The key is starting early, understanding your options, and choosing financing approaches that align with your long-term educational and financial goals. Whether you’re a startup school seeking your first permanent home or an established school ready for expansion, the right facilities financing solution can enhance your ability to serve students and strengthen your community.
Ready to explore charter school facilities financing options? Our team specializes in helping charter schools navigate complex facilities decisions and secure financing that supports long-term educational success. Contact us to discuss your specific needs and explore solutions tailored to your school’s unique circumstances.
Editor’s Note: We understand that the planning and financing of any facility project are complex, time-consuming, and have the potential to distract your team from its core mission: serving your students. That’s why we wanted to sit down with the Founder and Executive Director of Desert Star Academy, Margie Montgomery, to get her insights and tips on planning for a charter school facility project. To help other charter leaders embark on their facility project, Margie generously shares what she’s learned and what she wished she knew before she started her facilities project—and what she’ll do now as she embarks on yet another!
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 charter school growth. We hope you find this—and any other blog post we write—both interesting and valuable. Below you will find the video and the transcript. Please read on to learn more.
Janet Johnson (JJ): Hello. I’m Janet Johnson with Charter School Capital and we’re honored today to be with a rising star in helping other people understand how to negotiate the charter school landscape, Margie Montgomery, who is the executive director and founder of Desert Star Academy in Arizona. And Tricia Blum, who is also with Charter School Capital and we’re just going to talk a little bit today about how facilities can trip you up and how you can be so much better as a result of negotiating your way through the morass Right? Margie Montgomery (MM): Absolutely. Tricia Blum (TB): So before we get there, I’d like to ask you a question that we’re asking all of our schools and thought leaders we’re talking to and that’s … We’re doing a campaign called We Love Charter Schools. You know that because you have socks that say that. MM: Absolutely. TB: Can you please tell us in two sentences or less why you love charter schools? MM: It gives family and friends a choice of education. They can choose what charter school to go to and charter schools have a lot more flexibility than the district schools. TB: I think that’s super interesting. Can you tell me how many days a week your students or scholars go to school? MM: In Arizona, the charter school calendar is 144 days. We typically, as most charter schools in Arizona, go 144 days and it’s a four day work week. We go Monday through Thursday. Our hours are a little bit longer. We go an hour and a half longer than the other schools in our area but we get it done in four days. TB: Your parents are really appreciative of that, right? MM: They do love that. We’ve noticed it helps on attendance. It also helps with staff attendance because you have that Friday to do all of your business. You can schedule doctor’s appointments then, you can schedule whatever you need to do on Friday and still have a full weekend. JJ: That’s awesome. TB: I know. I’d forgotten about that. That’s why I was like, “Oh we have to talk about that.” MM: It’s amazing. Yes, absolutely.
Consider Your Facility Constraints and Know the Rules for your Charter School Facility
TB: Okay so we’re going to talk, as we said, about facilities and you have been in what I would call hyper-growth mode, right? Four years, 460 students. Bang, bang, bang, bang. So you have a new building, tell me what were your expectations going into getting a new building? MM: I didn’t have time for expectations. I was like get me a building. We had our first year of 67 kids and we were renting, literally, a strip mall. We had four different offices of a strip mall. And it was like, “I need help, I need help.” So we were talking to Charter School Capital from the beginning and the process is very long and it takes a little while to get off the ground so I was just … I need a building.
I had 50 scholars to one classroom and two teachers in that classroom and we literally were calling the fire department to say, “How many scholars can we put into a classroom? What is the capacity for one room?” And I found out that a child’s desk occupies a child. But if you put in a teacher’s desk or you put in other types of tables, it takes away from your square footage and you cannot have as many scholars in the room.
So my teachers were teaching from clipboards and on the board because we had no room for them or their desk. And we just had the scholars in the desks. And we did this for three months. For a whole entire quarter. And it was a challenge.
It was a challenge keeping the parents happy knowing that they were getting incredibly impatient. But in the end, Charter School Capital came through for us, they built us a fabulous building, beyond belief and made everybody incredibly happy. TB: Yeah. Amazing, right? MM: It was. And it still is. TB: I think what you said is amazing too because what I’m hearing you say is look, I just needed a building, I could have done with anything, doesn’t matter, right? Just give me a building. MM: I was. I was like I don’t need a Taj Mahal, I just need a building. I need walls and I need a building. But by the time it actually all rolled around, we were picking colors and we were doing landscaping and furniture and all this exciting stuff. And pretty soon I got the Taj Mahal.
Understand the Realities of the Process and Get Prepared
TB: What do you wish you knew before you started? Because like you said, I didn’t have time to think, I just needed a building. MM: I wish I knew the process and the length of time that it truly takes and the planning involved and all of the construction aspects of the planning. Getting it through Charter School Capital, it had to be approved through this business and that business or the sections of the different companies.
I wish I had a better understanding of that. In fact, if anybody has a building, that should be one of the things that the client should go through, is this is the process and this is the time that it takes and this is what you need. Because they were always asking for financial this or that and this. And so I was literally jumping through hoops and I found myself not as prepared as I would have liked to have been. TB: Right. And that’s because you have to have financials, there’s a plan that has to be agreed on with you and construction and then you have to get permits and you’re talking about all sorts of that kind of process, right? Is that what I’m understanding you say? MM: I was a building principal and I ran the school and so the whole everything else from building to facilities was just … I had no idea about it. But it was a learning process and I would do it all over again. TB: Well you’re getting ready to do it all over again.
MM: Absolutely. TB: Right. We’re gonna add some more grades. She’s already facilities constrained. Right? JJ: That’s great. MM: Yes. TB: So apparently if you build it they will come. MM: They absolutely will come and that has been our story. We started with 64 scholars in 2014 and we right now have 437 and our cap is 475. So we are really constrained. JJ: Well but congratulations on the success. MM: Thank you so much. JJ: You’re making a lot of families happy, aren’t you? MM: We are. We have a lot of happy children. JJ: Yes.
Make a plan with your builders: the details matter
TB: What would you have done differently? I know we talked a little bit about that but I have some ideas, like on the (furniture, fixtures, and equipment) FF&E, on the whiteboards and the lockers and paint colors … tell us about paint colors because that was a really funny, funny as in interesting, right? Because Margie had a very clear idea what paint color she wanted and the contractor had a very clear idea on what paint colors the contractor did not want. So I think that’s an interesting, again you have to negotiate that. The thing is why would you even think you have to negotiate that, right? MM: You wouldn’t think so. But we came across that, absolutely. And so I think the next time I want to sit down with the builders and talk about a plan. Well, in education you have to have colors. I couldn’t live with just two colors. And so it was quite funny because I was talking to the contractor and to the superintendent and saying, “Well, if these are the only two colors that I have to pick from, this is what I’m picking. But I will tell you, as soon as you’re out of town, we’re going to repaint these walls and we’re gonna add color.”
And so it was a negotiation as far as alright, well if you have this can you live without that? And I was like yep, I can do that. So, we had brick on the outside of our building and it was like well we only need brick on half of the building so let’s take the other half of the building brick off and we added lockers because that was a commitment to the parents, to our community that we have lockers.
The year before when we were constrained in this building, before we had our facility, parents were like, “They have to carry their books around.” Some of these backpacks were heavier than these girls and you thought they were going to tip over.
Just have knowledge of the process and meet with the builders because the facilities people are out of state, they don’t know the community. Every community is different and unique. And if you’re going to be successful in the community, I think it’s really important as a leader of the community and leader of the school to listen to your community. Truly listen to them. Listen to the parents, listen to their concerns, listen to what they like.
The first thing that they do when they come in either one of our buildings is like, “Whoa.” And it’s the colors. We are not a white school, we are not an institution. Our elementary school is turquoise, and red, and yellow, and bright. And it’s all mixed up. It looks like blocks and it looks fun and exciting. Our middle school is apple, orange, and blueberry, literally. And it looks very techy. Very techy for that customer. And so we kind of looked at those scholars and the parents as our customers so we aim to please and it was really exciting. A lot of fun. TB: Congratulations. MM: Thank you. TB: Now you’ve got a new building to do, are you going to do the same colors? MM: Similar. Similar.
Working with Charter School Capital
TB: One last question, if you would, please tell me or tell us a little bit about your experience working with Charter School Capital. MM: Amazing. Absolutely amazing. From everybody to Tricia to the COO, Brad, yes. I remember Brad. TB: He did visit your school. MM: And he saw all the colors. TB: And he said it was a sweet school. He said he would love to send his kids there. And I agreed with him for sure. MM: Incredibly supportive. Very, very supportive. And you know, I was very excited through the whole building facilities process is they allowed the contractors and the people to actually talk with us and negotiate with us. So they were not rigid like, “No, this is what we’re doing and this is what we like.” Because they liked two colors. And from what I understood it wasn’t bright colors, it was very subdued colors. But they understood and I think as a whole Charter School Capital understands that every market is different. So I appreciate that. MM: On the funding side, again, Tricia’s been amazing. JJ: She is. TB: Thank you. MM: You know, Bryan and Christina has led us in a lot of different directions, helped us out when they don’t have to. But they have that very personal touch and commitment to the schools and to the client. So it’s very nice to say that we’re partners with Charter School Capital. JJ: What a nice way to end. TB: Thank you. JJ: Thank you, Margie. MM: Absolutely. We would not be the school that we are and we would definitely not be in the position that we are without Charter School Capital funding the growth and really taking an interest in charter schools and helping the charter schools grow. Charter schools are a huge movement, they’re so successful across the country and the states do not typically like … There’s not money for facilities provided for the state. So I think for you guys, whoever came up with a niche to go out to the charter schools and help them fund is amazing. Thank you. TB: Thank you. JJ: Thanks.
The 5 Essential Steps to Charter School Facilities Planning
Charter school facilities planning can be daunting. If you think that finding the perfect facility for your charter school seems like a huge, complicated undertaking, you’re in good company. This handy, information-packed guide, will help as you move towards realizing your facility expansion or relocation goals.
In it, we cover these five essential charter school facility planning steps—in detail:
Plan – Begin planning at least one year in advance
Fund – Understand your options to make savvy decisions
Acquire – You know what you can afford and how you’ll pay for it … now go get it
Design – Partner with experts to design your new space
Execute – Let the construction begin and get ready to move in
Indiana Charter Schools: A Case Study in Evaluating Charter School Performance
Indiana’s charter school sector offers valuable insights for understanding how policy environments, demographics, and performance metrics interact to create successful educational options. By examining Indiana’s experience, charter school leaders and policymakers in other states can learn practical lessons about building effective charter school sectors.
Indiana’s Charter School Foundation
Indiana became the 38th state to authorize charter schools in 2001, but its law created an exceptionally favorable environment that has earned recognition as having the nation’s best charter school policies for three consecutive years.
Key Policy Elements:
Multiple entities can authorize charter schools (not just school districts)
No caps on charter school numbers
Equivalent accountability requirements to traditional public schools
Comprehensive oversight and renewal processes
Performance Analysis: What the Data Shows
Academic Achievement Patterns
Strong Performers: Indiana’s top two high schools according to US News & World Report are charter schools: Signature School in Evansville and Herron High School in Indianapolis.
Comparative Performance (2017 State Data):
Brick-and-mortar charters: 36.2% earned A or B ratings
Similar traditional public schools: 30.4% earned A or B ratings
Virtual charter schools: Consistently poor performance (all F ratings)
Demographic Service Patterns
Indiana charter schools serve more challenging student populations compared to similar traditional schools:
Higher percentages of low-income students
Greater minority student enrollment
Similar special education service rates
Concentrated in historically underperforming districts
Lessons for Other States: Key Success Factors
Policy Environment Impact
What Indiana’s Experience Teaches: Strong charter laws create conditions for growth and innovation, but quality varies significantly by model and implementation.
Geographic flexibility enables serving diverse communities
Performance Differentiation by Model
Brick-and-Mortar Success: Traditional charter schools in Indiana consistently outperform virtual options, suggesting that in-person instruction models may be more effective for most students.
Virtual School Challenges: Universal poor performance of virtual charters in Indiana mirrors national concerns about online-only education models.
Geographic Expansion Patterns
Urban Foundation: Charter schools typically establish strong footholds in urban districts with underperforming traditional options before expanding.
Suburban and Rural Growth: Successful urban models can expand to serve families seeking alternatives in higher-performing districts.
Future Trends: What to Watch in Indiana and Beyond
Predicted Expansion Areas
Indianapolis Township Growth: As urban charter markets saturate, successful operators are likely to expand into suburban townships, testing whether charter schools can succeed in higher-performing traditional districts.
Successful Model Replication: Proven charter operators like Purdue Polytechnic and Indianapolis Classical Schools are positioned for multi-site growth.
Rural Community Solutions: Rural charter schools in Indiana (like Dugger Union and Mays Community Academy) demonstrate how communities can use charter options to maintain local schools when traditional districts face closure.
Charter School Capital Helps Minnesota Charter School Bridge the Gap
Paladin Career and Technical High School believes in the innate strength of young people and their ability to overcome adversity with the right support. Paladin offers an individualized instructional model for each student that incorporates work-based learning, seminars, project-based learning and experiential learning to meet the needs of each individual student. Their mission is to help students realize their own potential and provide an environment for them to thrive. Learn how Charter School Capital helped this Minnesota Charter school bridge a major financing gap so they could continue their important work.
“Paladin is a charter school located in the northern suburbs of Minneapolis. It services at-risk individuals 16 to 21 years old. They’re at risk because they’ve had a hard life. Right now, we have 150 students in our school and on any given night, 20 percent of them – by definition – are homeless. We seek to find them safety. We seek to educate them, and we seek to educate them in different areas. We pay our staff well, but we run it as a business. We don’t have waste. We don’t have excess. This year the state held back 40 percent of our money, whether that’s for your rent or your student population, whatever it is, you’re out of money and you had to do something to bridge the gap.”
Charter School Capital, they understood what we were doing. They have educators on staff they understand the process, understand what running the school means.
It was like, wow, where have you been?
If you come to the graduation ceremony, I guarantee it, we make graduate 20 students, there’ll be 300 people there—mothers, fathers, grandmas, grandpas, aunts, uncles will come up to me and say, John is the first one to graduate from high school in our family. We can’t thank you for what you’ve done for our family. That’s our goal. That’s what we’re trying to accomplish, but I think Charter School Capital’s got unbelievable integrity. Their commitment to the industry of charter schools is unsurpassed. I don’t know anybody else out there doing that, and that’s very, very important. They’re committed to the cause that I believe in.” ~Frank Stucki, Chairman of the Board, Paladin Career & Technical High School
The Charter School Capital team works with you to determine funding and facilities options based on your school’s needs. If you are trying to meet operational expenses, expand, acquire or renovate your school building, add an athletic department, buy new technology, or just bridge a funding gap, simply complete the online application below and we’ll contact you to set up a meeting.
The Potential Impact of the California Legislative Session on Charter Schools
Last Friday, the California State Legislature adjourned for the year after sending hundreds of bills to the Governor for his signature. Several of the proposed bills from this recent California legislative session could have an impact on charter schools.
With elections being held in November, a new legislature will convene on the first Monday in December for an organizational session. They will meet for one day and then they will reconvene again in January. Here are the bills – that could impact charter schools – on the Governor’s desk awaiting his signature or veto:
AB 406 by Assemblyman McCarty would ban charter schools operating by or as a for-profit.
AB 1871 by Assemblyman Bonta would require charter schools to provide meals for students who qualify for the free and reduced lunch program.
AB 2601 by Assemblywoman Webber would mandate that charter school students in grades 7-12 receive comprehensive sexual health and HIV prevention education.
SB 328 by Senator Portantino would mandate that middle and high schools could not start school before 8:30 a.m.
SB 972 by Senator Portantino would require all schools serving pupils in grades 7-12 that issue pupil identification cards to have printed on that card the number for a suicide prevention hotline or crisis text line.
Fortunately, the Governor has been a strong charter school supporter and will probably look favorably on these pieces of legislation. If he signs any of them, charter schools will need to make sure that they are prepared for changes in the laws. At the very least, it would be a lot to implement at the local level.
To view any of these measures in their entirety, go to leginfo.legislature.ca.gov and hit the bill information link at the top left of the page.
Since the company’s inception in 2007, Charter School Capital has been committed to the success of charter schools. We provide growth capital and facilities financing to charter schools nationwide. 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 $1.6 billion in support of 600 charter schools that educate 800,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!
Charter School Students Get Recognized by the National Honor Society
At Charter School Capital, a big part of our mission is to further the charter school movement and celebrating the achievements of charter school students, so we are thrilled to be sharing this incredibly inspirational story of success!
We recently had the honor of speaking with Debra Sellers, from Cincinnati College Preparatory Academy (CCPA), and learned how she persevered to get CCPA’s deserving charter school students acknowledged by the National Honor Society (NHS).
More than just an honor roll, NHS serves to recognize students who have demonstrated excellence in the areas of scholarship, service, leadership, and character. Sellers knew that CCPA’s hard-working and dedicated public charter school scholars deserved recognition the same way their traditional public-school counterparts have since 1921. But it wasn’t going to be easy.
About Debra Sellers
Debra came to CCPA in 2014 as an online instructor, facilitating online courses. For the past two years, she has been serving in the capacity of the guidance counselor. She’s been a guidance counselor and career access coordinator for schools ever since 2002. Prior to her work at CCPA, she was working for Cincinnati Public Schools. Her broad and impressive background includes an undergraduate degree in Human Resources (HR) Training and Development, a Master’s Degree in Social Work with an emphasis in mental health, and a long-running professional career in education.
Sellers is currently CCPA’s Guidance and Career Counselor, but I wanted to better understand how her diverse background and training led to this particular role and why getting NHS recognition for her students would be so important to her.
“I thought, how am I helping? … With HR, I trained in development. You train, and you develop students to transition into the workforce or college. That allowed me to be able to use my experience in that area helping them with resumes, interviewing, assessing what the needs were over the years, and just being able to give them some guidance in that area.
Then, when I thought about grad school, I would have gone for guidance counselor. But, I also have this double life. I work in a residential treatment facility. So, I’ve work in chemical dependency treatment prevention for the past seventeen years. So, I ended up getting a master’s in social work because it was a broad degree that could land me kind of anywhere. Because with social work you are a counselor, you are helping people. You are meeting their needs and trying to get them connected to community-based organizations, helping them to think about basic things like food, clothing, and shelter.
I kind of put those two together, but my resources together, which has been very beneficial to me as I am working with high school students making their transition to the larger picture called life.”
In hot pursuit of National Honor Society Recognition
Coming from her experience with previous schools, she knew that student performance recognition was very important for motivating students towards academic success. Recognition, however, was only one piece of the puzzle. Practically speaking, and from her HR background perspective, she knew that recognition from an organization such as the National Honor Society looks really good on a college resume.
She made the first request to the NHS for CCPA in 2014, but at that time, they were not accepting charter schools—only traditional public schools. The frustrating result was that she wasn’t able to get CCPA students recognized. For the past nearly four years, Sellers was unapologetically tenacious, refusing to give up.
“I knew it would be a really nice motivational piece to encourage students to excel academically because I know it looks good on a resume, and it looks good on a college application. It just, it helps to boost morale, self-esteem, and just encouraging the students to continue what they had already been doing—achieving academically.”
“Every year I would call and then they kept saying, ‘You have to go online.’ And I did, and it just wouldn’t go through. I started in 2014. I just kept trying.
In 2017, I called the National Honor Society (again) and told them what I was trying to do and what had been my issue over the last several years. They were like, ‘Well, just go ahead and re-submit your application again this year.’ Then, when it was approved they simply said, ‘Okay, now you just have to pay your charter membership.’ I was like, ‘Oh my God. Oh my God. We’re going have a National Honor Society!’”
With a chuckle, she goes on to share that she was equally excited when that they said, “You’re going to be billed.” And, from her enthusiastic recounting of that moment, I can safely say I don’t think anyone has ever been more excited to get a bill … ever.
“When they finally opened to us, I was like, ‘Oh yes! We have to do this!’”
I asked her what she thought changed – finally in 2017 – to make the NHS want to recognize charter school students. “Well, I don’t think they recognized charter schools, period. You had to go to a more traditional high school. I think that they looked at the fact that they are accredited, each state recognizes them, and that there’s a growing number of public charter schools nationwide.”
This was a big deal
Becoming a member of the National Honor Society is – as the name perhaps already implies – a tremendous honor for students. One that’s been experienced by high school scholars at traditional public schools around the country for decades. For this, CCPA’s first year having their charter school students recognized, Sellers wanted to make sure it had all the pomp and circumstance that the CCPA honorees, their proud families, and school community deserved.
”We just really wanted it to be something that the students knew this was a big deal. We put together a formal ceremony. We had all the candles, the pinning, we did the oath, we had a guest speaker (a TV personality from the local station), we held the ceremony in the evening, we had 33 students, and they all signed a book. It was really a nice ceremony.”
But, for even more impact on the students, Sellers kept the induction into the NHS as well as all of the planning for this huge event a secret from the honorees.
“I didn’t tell them. I kept wandering around the school and asking them random things. I gave certain kids cards and asked them for their addresses. I never told them what it was, and they had no idea until they received the letter at home. I wanted it to be a surprise for them to know that they were being recognized. After receiving their letters, they excitedly came back and asked, ‘What is this? What is this?’ So, I gave them a little background of what it was. The following Monday their names were on the school marquee in the atrium so the whole student body could see who the National Honor Society inductees were.”
Just the beginning
An impressive 33 tenth, eleventh, and twelfth graders out of CCPAs 182 students were recognized this March. The graduating seniors were specially recognized with stoles that included their new National Honor Society patch.
Sellers shares,“I wanted them to know that this is an honor and it says something about you … you and the work that you have done during your high school years, and this is a way of being recognized—and it’s by a reputable organization, the National Honor Society.”
Sellers is not stopping here and is dedicated to continuing her progress ¬– and not just for the CCPA students. Although students cannot become members of NHS until high school, she’s getting a jumpstart on middle-school-aged students in her area to begin thinking about the National Junior Honor Society (NJHS). “If I have my wish, we’re going down to junior high. They have one that’s for sixth, seventh, eighth graders. I’m trying to get them on board. That’s my goal this year. If you get them to really be thinking about the bigger picture, if you say, ‘I want to become an engineer,’ you don’t start that in your senior year. You start that back there. It’s a process.”
We are always honored to share the amazing work that charter school leaders are doing across the country to make a difference and help forward charter school movement. Debra Sellers is a prime example of the commitment, dedication, and outstanding work charter leaders are doing—and that deserves our recognition. We thank her for taking the time to speak with us and for paving the way for other charter schools to motivate and honor their students’ achievements in the same way.
Since the company’s inception in 2007, Charter School Capital has been committed to the success of charter schools. We provide growth capital and facilities financing to charter schools nationwide. 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 $1.6 billion in support of 600 charter schools that educate 800,000 students across the country. For more information on how we can support your charter school, contact us. We’d love to work with you!
The Charter School Solution: A Better Education for All
Editor’s Note: This article was originally published here on May 12, 2018, and authored by Nina Rees, the president and CEO of the National Alliance for Public Charter Schools.
Studies have shown that the existence of public charters has often improved traditional public school performance in those communities. And, according to the National Assessment of Educational Progress (NAEP), also called the Nation’s Report Card, public charter schools are showing that they are often outperforming their traditional public school counterparts. The NAEP also shows that charter schools are more effective at helping students from lower-income backgrounds make up ground on their peers. It’s important to bring these studies to light to help support the charter school movement and continue to create the opportunities for unique and diverse educational access for all students.
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 charter school growth. We hope you find this—and any other article we curate—both interesting and valuable. Please read on to learn more.
Charter Schools Point toward a Better Education for All
Published May 12, 2018
As National Charter Schools Week wraps up, new data show their potential to improve students’ scores.
One thing nearly every expert in the field will tell you is that we have a long way to go before every student in America is getting a good education.
The recent results of the National Assessment of Educational Progress (NAEP), also called the Nation’s Report Card, confirmed as much. The NAEP is administered to a sample of students in a variety of subjects from across the country every two years. Its latest math and reading scores for fourth- and eighth-graders showed a general stagnation.
But there were bright spots, too. Students in the nation’s largest cities, who on average score lower than students elsewhere, are at least narrowing the gap. It’s hard to pinpoint a specific reason for this improvement. But education reformers have focused most of their energy on urban areas for years, precisely because these students have trailed their suburban counterparts, and the results of the NAEP suggest that their efforts may be bearing fruit.
One of the most important and ambitious parts of those efforts has been the introduction of public charter schools to America’s metropoles. Across 43 states and Washington, D.C., many parents in large cities can choose which public school their child will attend. By embracing various teaching methods and academic focuses, charter schools give more students access to a school that brings out the best in them.
The NAEP data show that charter schools contributed to the growth in urban test scores. In 2017, charter schools outperformed district schools across all four grade and subject levels in large cities (although the difference was not statistically significant for fourth-grade math). Across the four grade and subject levels, big-city charter-school students improved by an average of eleven points over the past ten years, while traditional public-school students improved by an average of five points.
This is good news as we celebrate National Charter Schools Week and bring attention to the way charter schools are changing the educational dynamic for nearly 3.2 million students across America. But rather than crow about improving scores, we should understand these test results for what they are — a tool to help parents, teachers, school leaders, advocates, and policymakers find out what’s working in American classrooms, and spread those best practices to more schools.
For instance, both the NAEP data and other research indicate that charter schools are especially effective at helping students from lower-income backgrounds make up ground on their peers. Educational leaders in the states and cities where charter schools delivered strong NAEP results for these students — Arizona, D.C., Texas, Colorado, Florida — have put a premium on incorporating charter schools into the public-school mix. Both D.C. and Denver public schools have been lauded for the strong cooperation between their charter-school movements and school districts. Texas has also promoted closer consultation between district and charter leaders, and Arizona, Texas, and D.C. have made it a priority to ensure that charter-school authorizers — the entities that award and revoke charter contracts and monitor performance — put a strong focus on quality. In Colorado and Florida, legislators have made funding fairness a priority, closing the gap between what district and charter schools receive for instruction and facilities.
The quality of charter schools varies across the country, and even within states and cities — just as it does with district schools. But one of the hallmarks of the charter-school movement is to confront low-quality head-on (as has been happening with virtual charter schools, which suffer from a lot of poor performers) and close schools when they aren’t serving students well.
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What NAEP and other tests can do is point us toward high-performing schools, cities, and states that can serve as models for others. Tests shouldn’t supersede the judgment of parents and policymakers, but they can inform that judgment, by helping us to calibrate our educational compass toward success. The more we can replicate success, the more students will benefit.
As the nation celebrates the charter schools bringing new options to students and parents, the NAEP results are further evidence that policymakers who want to get closer to the goal of giving every student access to a great education should support the growth of the charter movement.
Charter School Capital is committed to the success of charter schools and has solely focused on funding charter schools since the company’s inception in 2007. 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 $1.6 billion in support of 600 charter schools that educate 800,000 students across the country. For more information on how we can support your charter school, contact us!
The Charter School Leader’s Definitive Guide to Budgeting Best Practices
Plan – Begin planning at least one year in advance
