Venturesome Capital- State Charter School Finance Systems

A kpmg peat marwick study of 33 school districts

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Unformatted text preview: hools found that twothirds had some capital expenditure for facilities included in tuition. On average, 63 percent of long-term debt was included in the tuition calculation. In 1998-99, a one-time state appropriation gave charter schools an additional $260 per pupil for facilities funding—approximately equivalent to the annual SBAB average grant. Therefore, total facilities funding for the average charter school approximated the state average in 1998-99. Charter schools can use capital funding for general operating expenditures in Massachusetts. In 1999, the Florida Legislature established a separate capital outlay trust fund for charter schools with its own annual appropriation. Beginning in their third year of operation, charter schools receive the state’s share of the 30-year amortized cost of a “student station” 35 Charter schools authorized by school districts do not benefit from grade level and size weightings, but they benefit from lucrative transportation funding not available to state-authorized charter schools. 72 Facilities and Capital Outlay Financing in annual installments. In 1998-99, that annual figure amounted to $387 for each elementary school student, $443 for each middle school student and $587 for each high school student. Charter schools can use capital outlay funds only for capital expenses. Significant, one-time capital funding has also been available for established charter schools through Florida’s School Infrastructure Thrift Fund (SIT). This program rewards school districts for finding alternatives to building new facilities. The district in which a charter school had been operating in non-district facilities for at least a year was eligible for onetime payments of $5,800 (elementary) to $8,800 (high school) per pupil attending the charter schools. If the charter school’s enrollment grew, the district received additional payments corresponding to the enrollment increase. The state department of education requires districts and charter schools to submit a joint application for SIT funds, with most districts splitting the funds evenly with their charter schools. SIT funds will be available until the one-time appropriation is exhausted, which could occur in 1999-2000. In Milwaukee charter schools, capital outlay and debt service of the school district are included in the base charter school funding (about $90 per student). Most public school facilities however, are owned and financed by the municipal government. In Washington, D.C., the District government also owns and finances most school district facilities. In Hawaii, all school building and capital improvement projects are financed with cash and must be approved by the legislature as part of the state’s capital improvement appropriations (Thompson, 1995). Rhode Island adopted a more deliberative approach to providing capital funding for charter schools. Considered on a case-by-case basis, a minimum of 30 percent funding of capital costs is guaranteed to those schools deemed to be in need. It is expected that a majority of capital funding will come fr...
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This note was uploaded on 02/11/2013 for the course ECON 101 taught by Professor Smith during the Spring '09 term at Harvard.

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