As the charter idea has spread, a number of entrepreneurs have also stepped forward to begin offering loans to charters, sometimes in tandem with contractors or suppliers of mobile or temporary classrooms. In one sense, this is a positive step since it reflects growing awareness of the charter movement and growing confidence in the long-term viability of charter schools among businesses seeking new markets. On the other hand, some of these financing options may charge higher interest rates or force charter operators to use a particular contractor or supplier in order to qualify for a loan. Moreover, private financing sources often argue for much longer terms for charter contracts - threatening an important aspect of charter school accountability. At a minimum, there is a need for objective and understandable information on private financing options and more sophistication in considering those options on the part of charter school operators.
Charter schools are public schools.
They need and deserve access to facilities and financing on par with schools owned and operated by districts. Minnesota has taken the first tentative step in this direction with the Building Lease Aid Program it authorized in 1997. During 1998, the Florida and Arizona Legislators have also taken important steps to address the facilities financing needs of charters through new forms of direct state aid. None of these state programs, however, address the need for up-front capital to acquire, build or renovate a facility. However, a number of issues need to be addressed as we head down that path, including which governmental units might be used to guarantee bonds for charter facilities, how decisions to access bonds are made, and whether it's wise to create a separate process for funding charter facilities.