FOCUS D.C. Public Charter School Bulletin

July 30, 2002

In this issue:

$20 Million for D.C. Charter Schools in Senate Committee Markup

Markup Mandates Creation of Office of Charter School Financing, Direct Loan Program, Incubator Study, Reports by Mayor on Use of Surplus Buildings and Charter School Closures

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$20 Million for D.C. Charter Schools in Senate Committee Markup

The full Senate Appropriations Committee has accepted the D.C. Subcommittee's proposal to increase by $20 million the funds available for charter school facilities. Of this amount, $4 million would be used to increase the FY 2003 facilities allowance to at least $1,500 per student, $5 million would be added to the existing Credit Enhancement Fund, and $10 million would be used to establish a Direct Loan Program to help charter schools with facilities. Finally, $1 million is for the establishment and operation of an Office of Charter School Financing and Support to
administer the Credit Enhancement Fund and the Direct Loan Program (see next item). FOCUS is now working to build support for the Senate provisions in the House Appropriations Committee, which will take up the matter in early September.

The text of the markup (Bill #S2809) and Committee report (#107-225) is available at http://thomas.loc.gov.

Markup Mandates Creation of Office of Charter School Financing, Direct Loan Program, Incubator Study, Reports by Mayor on Use of Surplus Buildings and Charter School Closures

New Office, Loan Program Created

The Credit Enhancement Fund currently is administered by the District's Department of Banking and Financial Institutions (DBFI). Under the markup, DBFI would retain authority over the Fund and also would be responsible for administering the new $10 million Direct Loan Program, which could provide low-interest, flexible loans of up to $2 million each for construction, purchase, renovation, and maintenance of charter school facilities. In order to be eligible for these loans, a public charter school would have to demonstrate that it is "meeting or exceeding its
performance goals as outlined in its originating charter." The Committee report recommends that at least three of the direct loans be made to schools that cater to special education students.

A new Office of Charter School Financing and Support ("Office") would be created within DBFI. In addition to administering the Fund and the Direct Loan Program, the Committee recommends that the Office provide technical assistance to Fund or direct loan applicants. The markup provides that the Office can opt to carry out its functions directly or "under contract with a qualified provider."

Charter School Incubator

Moving beyond money, the markup mandates that by April 1, 2003, the Government Accounting Office, in consultation with District officials and the D.C. Public Charter School Coalition, among others, prepare a report on the establishment of a charter school incubator in the District. The GAO is to make recommendations for implementing such an incubator, in
which new charter schools could locate for up to four years. Within six months of the issuance of the GAO report, the D.C. government must develop a plan and proposed time line for establishing the incubator. The Committee report adds that the leaders of charter schools located in the incubator "would receive technical assistance on real estate development, equity development, fundraising, and guidance on effective school management."

Report on Surplus Buildings

The mayor and Council, in consultation with the General Services Administration, are directed to report to the Senate and House appropriations committees on all current surplus buildings and those that might be made surplus within the next year. The report, which is due within 180 days of the enactment of the appropriations bill, is to discuss space
available, the appropriate uses of the building, potential occupants, and renovations necessary to accommodate proposed uses.

Report on Charter School Closure

By August 26 of this year, the Mayor and Council also are directed to report on "actions taken to close poor performing charter schools in the District of Columbia." This item evidently is in response to newspaper articles last spring in which the Board of Education complained about its inability to close Richard Milburn and World schools because of pending litigation. In addition to Milburn and World, this past year the Board closed Techworld and New Vistas. The D.C. Public Charter School Board so far has not closed any charter schools.

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