Committee backs $4 million infusion to revive charter credit‑enhancement capacity for school facility financing

The House Education Standing Committee voted to advance the first substitute of HB 219, a bill that would add $4 million to the Charter School Credit Enhancement Fund and restore earlier underwriting parameters so charter schools can access lower‑cost municipal financing for facilities.

Representative Walter, sponsor of the measure, explained the state created the charter school credit enhancement program more than a decade ago to lower borrowing costs for charter school facilities. “We have over $400,000,000 that’s been issued under that program,” Walter said, and the program currently saves charter school borrowers about 1 to 1.5 percentage points in interest expense. Because credit‑rating agency underwriting standards have become more stringent over time, fewer charters meet the tightened technical thresholds. The substitute would place $4 million into the enhancement fund so the program can operate under terms similar to those originally intended, restoring access to lower‑cost debt for qualifying charters.

Witnesses from charter‑school advocacy organizations and charter operators told the committee the program is critical for rural and growing charter schools that face higher facility financing costs without the state‑facilitated credit enhancement. “Bills like this that help us with financing are of major importance,” a charter leader from a rural chain told the committee, saying the measure would help preserve access to affordable capital for school facilities.

Committee members approved the first substitute and then recommended the bill favorably to the House. The sponsor said the $4 million would remain as a fund guarantee rather than be directly spent and that the interest savings generated by improved underwriting would return to charter operators in lower debt service costs over the life of bonds.