GUIDANCE FOR CHARTER SCHOOL ORGANIZATIONS

Offered by the Founder of the Harry Singer Foundation
 

I have been privileged to serve on the board of a charter school management organization that began with one school seven years ago and will have seventeen schools operating in September 2006. These schools will serve nearly five thousand California students K-12.

I have done a great deal of reading regarding the formation and operation of charter schools that may be beneficial to others with busy schedules. I continue to attend  several annual conferences concerned with charter schools and school choice. I offer the following with the hope that charter school organizations just starting out and those wanting to expand, may find the information useful.

For Beginning Organizations

     A.  Do not build at the outset.  Begin in rented space.
 

B.   Concentrate on quality education and expand slowly as demand for your particular curriculum increases.
 

C.   Build your donor base as you build student performance and the number of students served.
 

D.   Relate to industry references and sources of helpful information.

1. Accountants who are familiar with charter school reporting requirements.

2.    (CCSA) California Charter School Association or similar in your State.

3.    U.S. Department of Education

4.    Successful charter school associations willing to share best practices:

a)   Aspire Public Schools, Oakland, California

b)    Kipp Public Schools, San Francisco, California 

c)    Leadership public schools, Los Angeles, California

d)  High Tech High, San Diego, California

To Expanding Organizations

A. Credit rating agencies will consider evaluating a charter school for an “investment grade” credit rating after 5 years of successful operations.
 

B. Several large regional and national banks, and CCSA can provide lines of credit and remodeling funds for credit worthy charter school organizations to improve and/or expand existing facilities.
 

C. In the current market, if a charter school has a 5-year operating history and owns land free and clear suitable for school construction, financing is available to build new facilities depending upon the cost of construction.
 

D. There are architectural and design teams that specialize in charter school construction to help provide maximum space utility for minimum cost per square foot.

E.   There are financing methods to pay for the construction costs provided the debt service on the loans are no higher than 12-14% of annual gross revenue from school operations. A lower percentage allows for student program enhancement. A higher percentage than 12-14% will cut into the education quality.
 

F.     The charter school industry is growing and many outsourcing opportunities are present: however, once it is more cost effective to bring a particular function in house, the organization should try to do so, as the resultant savings compound over time.

If there is any way that we can help by referral or otherwise, we will.  Children living in the intercity, or in other impoverished sections of our country, must be brought into the mainstream and a superior education is the best way. The future of the United States depends on the level of education attained, not by just a few, but by all our children.

[Melvin J. Kaplan]