Charter Schools: Does the state provide start-up or planning grants to new charter schools?

Charter Schools: Does the state provide start-up or planning grants to new charter schools?

January 2020

This resource contains information about the 45 states, plus the District of Columbia, with charter school laws. It does not contain any information for the five states that have not enacted charter school laws.

Does the state provide start-up or planning grants to new charter schools?
Alabama No
Alaska Yes. Charter schools established on or after July 1, 2014, may receive a one-time grant from the department of education in the amount of $500 for each student enrolled in the school on October 1 of the first year in which the school applies for the grant. The charter school must use the grant to provide educational services including curriculum development, program development and special education services. If the amount appropriated in a fiscal year for the charter school grant program is insufficient to meet the amounts authorized, the grant is reduced and the charter school may apply in a subsequent fiscal year for the balance of the grant amount. New charter schools with at least 75 students are eligible for additional funding during their first 3 years of operation.

Citations: Alaska Stat. Ann. § 14.03.264; Alaska Stat. Ann. § 14.17.450
Arizona Yes. Subject to legislative appropriations, the Charter School Stimulus Fund provides financial support to charter school applicants and charter schools for start up costs and costs associated with renovating or remodeling existing buildings. Charter schools are awarded grants of up to $100,000.

Citations: Ariz. Rev. Stat. Ann. § 15-188
Arkansas No
California Yes. The Charter School Revolving Loan Fund allows charter schools to receive low-interest loans for as much as $250,000, allowing up to 5 years for repayment.

Citations: Cal. Educ. Code § 41365
Colorado No. However, grants from the state's Building Excellent Schools Today (BEST) program, a competitive grant program, can be used for constructing new school facilities, including charter schools.

Citations: Colo. Rev. Stat. Ann. § 22-43.7-101 et seq.
Connecticut Yes. Subject to legislative appropriations, the state may provide a grant in an amount not to exceed $75,000 to any newly approved state charter school that assists the state in meeting the goals of the 2008 stipulation and order for Milo Sheff, et al. v. William A. O'Neill, et al., as determined by the commissioner of education, for start-up costs associated with the new charter school program.

In addition, the state department of education may award, within available appropriations, a grant of up to $500,000 to any town in which a newly established local charter school is located, to be paid to the fiscal authority for the local charter school to assist with the start-up costs provided the local or regional board of education for the local charter school and the representatives of the exclusive bargaining unit for certified employees mutually agree on staffing flexibility in the school, and the agreement is approved by the state board. In order to be eligible for a grant, a grant applicant must satisfy one of the following conditions: 1) Have high quality, feasible strategies or a record of success in serving students from among the following populations: a) students with histories of low academic performance, b) students who receive free or reduced price school lunches, c) students with histories of behavioral and social difficulties, d) students eligible for special education services, e) students who are English language learners, or f) students of a single gender; or 2) Have a high quality, feasible plan for turning around existing schools that have demonstrated consistently substandard student performance, or a record of success in turning around such schools.

Citations: Conn. Gen. Stat. Ann. § 10-66ee; Conn. Gen. Stat. Ann. § 10-66nn
Delaware Yes. Subject to legislative appropriations, charter schools may apply for competitive grants from the Charter School Performance Fund. The department of education establishes threshold eligibility requirements for applicants, which include but are not limited to a proven track record of success, as measured by a performance framework established by the charter school's authorizer or comparable measures as defined by the department. The department is required to prioritize applications from applicants that have developed high-quality plans for start-up or expansion or serve high-need students.

Citations: Del. Code Ann. tit 14 § 509
District of Columbia No.
Florida No
Georgia No
Hawaii No. However, the department will provide resources to a conversion charter school during the first year of its operation based upon the department’s allocation to the school for the year prior to the conversion.

Citations: Haw. Rev. Stat. § 302D-28
Idaho No. However, the state may provide an advance payment of 25% of a charter school's estimated annual apportionment for its first year of operation and each year thereafter provided the school is serving more grades or at least 10% more classes than the previous year.

Citations: Idaho Code Ann. § 33-5208
Illinois Yes. The state board makes interest-free loans (through the Charter Schools Revolving Loan Fund) and grants in their initial term so they can acquire educational materials and acquire or remodel a facility. The grants may not exceed $250 per student and the loans cannot exceed $750 per student enrolled in the charter school.

The state board of education also makes transition impact aid available to school districts that approve a new charter schools or have funds withheld by the state board to fund a new charter school. The amount of the aid equals 90% of the per capita funding during the first year of its initial charter term, 65% of the per capita funding during the second year of its initial term, and 35% of the per capita funding during the third year of its initial term.

Citations: 105 Ill. Comp. Stat. Ann. § 5/27A-11.5
Indiana Yes. New charter schools may apply to the Charter School Facilities Assistance Fund - administered by the department of education - for grants or loans to pay the first semester costs for new charter schools. This program is subject to appropriation. Additionally, a charter school n its first year of operation is eligible for a grant of $750 per student to a charter school through the Charter and Innovation Network School Grant Program, administered by the state board of education.

Citations: Ind. Code Ann. § 20-24-12-1 to Ind. Code § 20-24-12-12; Ind. Code Ann. § 20-24-13-1 et seq.
Iowa No.
Kansas No
Kentucky Kentucky's charter school law does not have a permanent funding mechanism.
Louisiana Yes. Subject to legislative appropriations, the Louisiana Charter School Start-Up Loan Fund provides zero-interest loans up to $100,000 for eligible new and existing charter schools for up to three years. Loans can be used to purchase tangible items such as equipment, technology, instructional materials, facility acquisition, upgrades, and repairs.

Citations: La. Rev. Stat. Ann. § 17:4001
Maine No
Maryland No
Massachusetts No
Michigan No
Minnesota No
Mississippi No
Missouri No.
Nevada Yes. Charter schools whose applications have been approved can apply to the State Public Charter Authority for a loan from the Account for Charter Schools. Loans can be used to prepare a charter school for its first year of operation or to improve a charter school that has been in operation.

Citations: Nev. Rev. Stat. Ann. § 388A.438
New Hampshire No
New Jersey No
New Mexico Yes. Subject to legislative appropriations, the Charter School Stimulus Fund assists start-up and conversion charter schools with initial start-up costs and costs associated with renovating or remodeling existing buildings and structures. Charter schools that receive grants must begin operating within 18 months.

Citations: N.M. Stat. Ann. § 22-8B-14
New York Yes. Through the Charter School Stimulus Fund, charter schools can receive grants for start-up costs and costs associated with facilities acquisition.

Citations: N.Y. Fin. Law § 97-sss;
North Carolina No
Ohio Yes. Subject to legislative appropriations, the department of education may make a loan from the Community School Revolving Loan Fund to a charter school to cover start-up costs.

Citations: Ohio Rev. Code Ann. § 3314.30
Oklahoma Yes. The Charter Schools Incentive Fund provides funding to charter school for start-up costs and costs associated with renovating or remodeling existing buildings and structures for use by a charter school. The state department of education allocates per-pupil funds to match funds allocated through the federal State Charter School Facilities Incentive Grants Program.

Citations: Okla. Stat. Ann. tit. 70, § 3-144
Oregon No
Pennsylvania Yes. The state secretary of education distributes appropriated planning and start-up funding grants to qualifying start-up charter schools. The amount awarded varies based on the size and characteristics of the charter school.

Citations: 24 Pa. Cons. Stat. Ann. § 17-1731-A
Rhode Island Yes. When federal charter school startup funding grants are unavailable, the state provides interest-free loans up to $150,000 per charter school.

Citations: R.I. Gen. Laws Ann. § 16-77.1-4
South Carolina No
Tennessee No
Texas No
Utah Yes. The State Charter School Board uses money appropriated for charter school costs to provide planning and implementation grants to charter schools. Charter schools also have access to loans through the Charter School Revolving Account for planning, start-up or expansion expenses.

Citations: Utah Code Ann. § 53F-2-702, Utah Code Ann. § 53F-2-705
Virginia Yes. The Public Charter School Fund provides funds used solely for the purpose of establishing or supporting charter schools. Distribution criteria is established by the Board of Education.

Citations: Va. Code Ann. § 22.1-212.5:1
Washington No
West Virginia No
Wisconsin No
Wyoming No

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