Charter school lease aid capped at $50,000 per school; payments prorated when demand outstrips appropriation

Tim Kearney and department staff briefed Finance Division II on the charter school lease aid program. The department explained that eligible charter public schools that lease their facilities may receive lease aid equal to 30% of annual lease payments up to a $50,000 per‑school cap. "If the appropriation does not match demand, payments to each charter school are prorated," staff said, and the packet provided historical appropriations and prorations.

The department noted the first funded year for the statute was recent and that some charter schools transition from leasing to ownership (in which case lease aid is not applicable). Applications are submitted to the department by September 1 each year and the department pays eligible awards once per year, on a reimbursement basis. Staff cautioned that if a charter school closes after receiving funds there is limited recourse to recover payments; recent charter closures did not receive lease aid but highlighted the program's financial risk in the event of operator insolvency.

Ending: Staff said they will continue to administer lease aid on the statutory schedule and monitor application demand; the department provided a list of current charter schools and the prorated payments in the packet.