California State Data:
Last updated: 2021
California law created the Charter School Facility Grant Program (via SB 740) that provides up to $1,117 per pupil in lease reimbursement for charter schools where 55% of students qualify for free and reduced price lunch either at the charter school or its local elementary school attendance area; payments may not exceed 75% of total annual facilities rent costs.
Under California law, the Charter School Facilities Program authorizes the State Allocation Board to provide per-pupil facilities grant funding for 50% of the total project cost for new construction or renovation of charter facilities. This program is subject to available statewide school bonds passed to support charter school facilities. Proposition 47, Proposition 55, and Proposition 1D have placed more than $800 million in a fund for charter school facility development. In addition, in November 2016, California voters passed Proposition 51, a statewide school bond that provided $500 million specifically for charter schools under the same program used for Proposition 1D.
The law requires districts to provide charter schools with facilities that are sufficient to accommodate charter school needs for their in-district students and reasonably equivalent to other district facilities, through an annual application process. It allows a district to charge a charter school only a proportionate share of its facilities costs that are paid from the general fund.
Under California law, the Charter School Revolving Loan Program provides below-market loans of up to $250,000 for new-start charter schools, allowing up to five years for repayment. A school may use these loans for any start-up costs, including facilities.
California law provides that charter schools are eligible to access tax-exempt bond financing through the state and eligible to access public borrowing through county boards of education and county treasuries.
Legislation passed in 2020 now requires charter schools to pay “prevailing wages” when they contract for construction, alteration, demolition, installation, or repair work and pay for in part or whole with the proceeds of conduit revenue bonds.
California law also provides that the state treasurer’s office offers a limited credit enhancement program.
– California School Finance Authority [treasurer.ca.gov/csfa/]
–> Conduit Financing Program (bonds) [treasurer.ca.gov/csfa/financings/index.asp]
–> Charter School Facility Grant Program (SB 740) – per pupil lease reimbursement [treasurer.ca.gov/csfa/csfgp/index.asp]
–> Charter School Facilities Program – for construction or rehabilitation of facilities [treasurer.ca.gov/csfa/charter.asp]
–> Charter School Facilities Credit Enhancement Grant Program – funds debt service reserves for acquisition, renovation and construction projects [treasurer.ca.gov/csfa/enhancement/index.asp]
–> State Charter School Facilities Incentive Grants Program-to offset ongoing facilities costs [treasurer.ca.gov/csfa/incentive.asp]
–> Charter School Revolving Loan Program – below-market up to $250k for new start charters; for start-up costs including facilities [treasurer.ca.gov/csfa/csrlf/index.asp]
Public Charters on Tribal Lands or Serving a Significant Proportion of Native Students:
Source: National Alliance for Public Charter Schools (2018)