JEFFERSON CITY — Charter schools in Missouri could someday tap into a new taxpayer-backed fund to repair buildings and renovate classroom space under a proposal pending in the state treasurer’s office.
Budget documents filed earlier this month show Treasurer Scott Fitzpatrick wants to create a revolving loan fund worth $10 million, giving schools a source of revenue for maintenance costs after previous plans were torpedoed by Republican Gov. Mike Parson.
In June, Parson vetoed $10 million for charter schools in a bill that was funded by federal pandemic aid money.
“This funding is limited to charter schools, unfairly limiting access to public K-12 schools,” Parsons wrote in his veto letter. “Deferred maintenance is the responsibility of the charter sponsor, not the state.”
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In 2021, Parson also vetoed a $5 million allocation of general revenue funds for deferred maintenance grants for charter schools, using the same rationale.
The governor’s apparent reluctance to offer a pathway to charter schools seeking a funding source for repairs and maintenance stands in contrast to Fitzpatrick’s proposal. The Republican treasurer served as chairman of the powerful House budget committee before he was elevated to his post by Parson in 2019.
Doug Thaman, executive director of the Missouri Charter Public School Association, as well as executive director of North Side Community School, said specific details about how the loan fund would operate haven’t been hammered out yet.
But, he said the concept will help because unlike standard school districts which are partially funded by local property taxes, charter schools don’t have the authority to issue bonds for ongoing maintenance of their facilities.
“If a charter school needs to put a new roof on their building, this would provide a fund they could draw from,” Thaman said.
He envisions charter schools replacing old heating systems, roofs and fixing parts of buildings for classrooms.
“It’s those larger items,” Thaman said.
He said it’s not clear whether charters that lease their space would qualify for the program or if landlords would be responsible for upgrades and maintenance.
“I don’t think that’s been determined yet,” Thaman said.
In the budget request, which is being reviewed by Parson’s budget office, Fitzpatrick said the $10 million infusion would be a one-time expense that would serve the charter schools for the next decade.
“This appropriation will address the issue by providing seed funds for a revolving loan fund,” the request notes. “The revolving loan fund will make loans to charter schools for facility and infrastructure needs.”
He also said the $10 million could “potentially induce private donors” to add money to the pot.
Fitzpatrick, a Republican running for state auditor, said the treasurer’s office would launch the fund, but would not have authority over the distribution of the money.
“This one-time funding could be granted to a not-for-profit agency or a state authority to accomplish the goals outlined above,” he wrote.
Charter schools in Missouri have sought public money for similar projects in the past.
In 2007, the St. Louis Industrial Development Authority issued a $23 million tax-exempt bond to help charter provider Confluence Academies buy and renovate buildings for its Old North, Aspire and South City schools.
The city agency facilitated an additional $16 million bond in 2019 to help with the purchase of the $12.6 million Beaux Arts Building for Grand Center Arts Academy and the refinancing of an $8.8 million purchase of a St. Louis Public Library building for a high school downtown.
And, in June, the city agency approved $35 million in bonds for Confluence to pay down and refinance debt used to buy and renovate its five school buildings.
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