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Bill would expand charter credit‑enhancement eligibility; $4 million appropriation proposed
Summary
House Bill 219 would expand criteria for the Charter School Credit Enhancement Program so more charters can access lower-cost financing; presenters said the bill includes a one-time $4 million appropriation for the Charter School Finance Authority and a small ongoing personnel cost estimated at about $38,500.
Sam Urey summarized a measure from Representative Walter that would modify eligibility and evaluation criteria for the Charter School Credit Enhancement Program, allowing additional charter schools to seek enhanced credit terms for facility financing.
"For these charter schools... there's a small credit rating based maintenance fee that would be applied... allowing a few more charter schools to take advantage of lower interest rates," Urey said.
Under the proposal described, the program would add several additional evaluation standards for schools applying for financing and would include a one‑time appropriation of $4 million to the Charter School Finance Authority to support lending capacity. Urey noted the fiscal note identified roughly $38,500 in personnel costs to oversee the application and approval process.
Board members asked about default risk. A board member observed that no charter has defaulted on these programs to date; presenters responded that the schools being newly enabled are generally slightly lower rated than current program participants and the program includes oversight and maintenance fees to manage credit risk.
