Dive Brief:

• Arizona is awarding two multi-million dollar loan guarantees to two successful charter school operators in the state, raising questions of the action’s legality, according to the Arizona Daily Star.
• Last year, the state government set aside $100 million to help charter schools expand by borrowing at lower interest rates, along with offering an assurance that the schools’ lenders will not miss payments. Critics fault it as a giveaway to privately-run charters.​
• Though an aide to Gov. Doug Ducey said the loans guarantees would be available to public schools and charter schools, the loans will not be of any help to public schools, because the money those schools borrow will be backed by taxpayers.

Dive Insight:

As the number of charter schools continues to increase throughout the country, the voices supporting and criticizing state support of charters will continue to rise. In recent days, Colorado politicians and public school supporters have criticized Republicans for pushing potential legislation demanding equitable state funding for public schools and charters, while parents and advocates in Jacksonville, FL are debating potential funding for the construction of new charters as other schools could potentially close.

As critics for charter schools call for states to divest from direct funding, politicians who support charter schools will likely seek more ways to support charters that are politically pliable. This could take different shapes; in New York, the state passed legislation in 2014 requiring New York City to offer charter schools free space in city buildings, or offer them funding to cover rental costs in a private building (though charter school advocates complain about the slow pace of the city’s response). Offering loan guarantees for charter schools hoping to expand could be another way for supporters in government to assist charters without direct funding.

It remains to be seen if offering loan guarantees would be accompanied by greater regulations on charters; though they are technically public schools, charters pride themselves on being conducive to experimentation, which would make more ostentatious oversight from local or state government generally unwelcome for proponents.