Senate approves $5 million revolving loan fund for charter school facilities after heated debate

Senator Pugh, the bill sponsor, told the Senate that House Bill 3372 would create a $5 million revolving loan fund administered by the statewide charter school board to help charter schools finance capital expenditures when they lack bonding or ad valorem capacity. He said the program is intended to relieve infrastructure needs and support growing student populations.

The measure drew sustained questioning from Senator Kurt, who said he was “deeply alarmed” that public taxpayer money could be used to improve buildings that are not publicly owned, and raised concerns about limited oversight and the state taking on administrative enforcement responsibilities. “When we use bond funds locally … those assets … are owned by the public,” Kurt told colleagues, arguing the bill changes that dynamic and could leave taxpayers exposed if property owners later raise rents or vacate buildings.

Senator Pugh and supporters disputed that characterization. Pugh argued charter schools are public schools and noted the fund is administered by the statewide charter school board rather than the Department of Education. He repeatedly urged colleagues to view the measure as a way to expand educational access for students in districts that lack capital resources, saying, “Either education is the tide that lifts all boats, or it’s not.”

During Q&A, senators pressed for specifics on eligible buildings and ownership. Pugh said the loans would support charter school facilities regardless of whether the property is owned by the school, leased, or held through other arrangements, and that contractual obligations would be evaluated by the statewide charter school board before any funding decision is approved. He acknowledged the possibility that an owner could receive improvements and later change terms, but said the board’s review process and contractual requirements are intended to manage that risk.

After debate, the Senate voted 39–6 to pass HB 3372 on third reading and declared the bill an emergency measure, allowing it to take effect immediately.

The bill’s passage follows extended floor discussion about fiscal risk, administrative responsibility and the proper role of state support for charter facilities. The sponsor said the fund targets schools that otherwise cannot access traditional public financing options; critics said the bill should include stronger guardrails on ownership transfers and post-improvement obligations.

The Senate adjourned after several other bills were considered; no further amendments to HB 3372 were recorded on the floor.