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Charter lease aid: 30% of lease payments up to $50,000; payments prorated if demand exceeds appropriation
Summary
The department described charter school lease aid that covers 30% of annual leased building rent up to $50,000; when appropriations fall short the department prorates payments. The department noted recent charter closures did not receive lease aid and payments are annual and reimbursement‑based.
Tim Kearney reviewed the charter school lease aid program, explaining the department pays 30% of a charter school’s annual lease payment up to a $50,000 cap and that the program is funded from the Education Trust Fund.
Why it matters: charter schools that do not own facilities rely on lease aid to defray facility costs; shortfalls in appropriation lead to prorated payments.
Kearney said the program has seen rising demand as more charter schools open and as real estate costs increase. Schools file completed applications by September 1 each year and the department processes payments; if demand outstrips appropriation the department prorates payments across recipients. The department noted two charter schools that closed in the prior year did not receive lease aid and at least one closed in bankruptcy, leaving no recoverable assets for the department.
Kearney said payments are made on reimbursement, generally once per year, and that if a charter closes mid‑year the department has no automatic clawback mechanism beyond whatever the department can recover administratively.
Ending: the department reiterated it will provide yearly applicant lists and payment totals to the committee and encouraged lawmakers to consider funding levels in light of the program’s growth and charter openings.
