Finance panel advances bill to set up charter school revolving loan authority
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Summary
Senator Dixon’s SB 498 would create a Charter School Funding Facility Authority and a revolving loan fund to ease charter schools’ facility financing, capping loans at 20% of project cost (up to $2 million) and limiting terms to charter contract length (up to five years); the committee voted to advance the bill with one dissenting vote.
Senator Dixon presented Senate Bill 498 to the Finance Committee, saying it would establish a Charter School Funding Facility Authority and a revolving loan fund to give Georgia charter schools greater access to affordable capital.
"But simply what this bill does is it keeps more money in the classrooms and allow charter schools to have access to funds, to help build facilities or to remodel," Dixon said, summarizing the authority’s powers to issue loans, set terms and require security, and noting the bill caps loans at 20% of project costs up to $2,000,000 and limits terms to the length of a school’s charter, up to five years.
The bill, sponsor and advocates said, responds to a persistent funding gap in Georgia charter school facilities. Bonnie Holiday, president of the Georgia Charter Schools Association, told the committee the state covers less than one-third of charter facility expenses and that the gap averages about $2,400 per student, leaving charters to seek costlier private financing.
Supporters from the charter sector urged approval. Buzz Brockway, a member of the State Charter Schools Commission and representative of the Georgia Center for Opportunity, said facility costs and high-interest facility deals are a leading cause of charter failures and asked the committee to pass the bill. Tianna Stevenson, founder of the Wright Community School, described deferring her school’s opening because of facility financing constraints and said the bill would protect students from further delay. Dr. Christy Beam, founder and CEO of the Academy for Innovation in Medicine, said the measure would allow new workforce-focused charters to invest resources in programs rather than unsustainable financing.
Committee members asked technical questions about board structure, caps on contributions and whether loans could be forgiven. A committee member noted the bill envisions loans rather than grants; sponsor Dixon and the association representative said loans are expected to be repaid and that the authority has powers to set repayment terms and secure loans, including withholding state funding in the event of default.
Senator Albers moved the bill do pass; the committee raised hands and the chair announced the motion carried, with one negative vote recorded (transcript: 'minus 1').
The committee report advances SB 498 as a vehicle intended to expand financing options for charter schools; proponents said the goal is to keep more dollars in classrooms rather than paying financing costs. The bill will proceed to the next legislative step from committee.
