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| Wilson Introduces Bill to Fund Charter Schools |
March 20, 2000 |
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Bill would make $9 billion in low interest loans available to public charter schools for capital projects
WASHINGTON, DC - Congresswoman Heather Wilson (R-NM) today introduced legislation to reduce the cost of building charter schools in New Mexico and across the country. The Neighborhood Schools Act of 2000 would create a federal loan guarantee fund for the construction, acquisition, modernization, or renovation of public charter schools or to purchase or replace equipment.
“Charter schools are one of the most exciting recent education innovations,” said Wilson. “But people in Albuquerque who want to start charter schools are unable to get money to build or renovate space at reasonable interest rates. Federal loan guarantees would reduce the risks of loaning for banks and lower the cost of loans. The federal government would only have to pay if the charter school defaulted on the loan.
“Unlike other public schools, most charter schools do not have access to bond funds. They don’t in New Mexico. For the charter schools that are able to find funding, they are often limited to basements, community centers, or housed within other public schools. Our children deserve better. By investing in innovative ideas like charter schools we can begin to give parents the choices they deserve and more importantly children the quality education they need,” concluded Wilson.
The Neighborhood Schools Act of 2000 would authorize $600 million in fiscal year 2001 for the loan guarantee fund. This federal investment would allow charter schools across the country to leverage up to $9 billion in private sector loans. Funds available in the program would be limited to public charter schools that do not qualify for financing methods available to other public schools in their jurisdiction.
According to Jon Schroeder, Director of the Charter Friends National Network, a Minnesota-based project linking nearly sixty grassroots charter support organizations across the country, “Facilities financing is one of the top concerns of charter schools all across the country. Congresswoman Wilson’s bill is a good starting point for raising needed visibility on this issue and designing a proper federal role.”
“A fantastic idea,” said former Governor Garrey Carruthers, who serves as Chairman of the New Mexico Foundation for Educational Excellence. “Just what we need to further encourage and support the development of Charter Schools. I commend Congresswoman Wilson for this initiative.”
Earlier this year, the House Committee on Education and the Workforce held a field hearing on drop out prevention in Albuquerque. At the hearing, charter school proponents expressed their frustration with high interest rates and the inability to find funding to set up charter schools. Nationwide, Charter Schools have disproportionately served low-income students, minorities and children at risk of dropping out of school.
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