Now We Know Why Banks Have Taken So Much Interest in Charter Schools

[depakid]

Wealthy investors and major banks have been making windfall profits by using a little-known federal tax break to finance new charter-school construction.

Wealthy investors and major banks have been making windfall profits by using a little-known federal tax break to finance new charter-school construction. The program, the New Markets Tax Credit, is so lucrative that a lender who uses it can almost double his money in seven years.

In Albany, which boasts the state's highest percentage of charter school enrollments, a nonprofit called the Brighter Choice Foundation has employed the New Markets Tax Credit to arrange private financing for five of the city's nine charter schools.

But many of those same schools are now straining to pay escalating rents, which are going toward the debt service that Brighter Choice incurred during construction. The Henry Johnson Charter School, for example, saw the rent for its 31,000-square-foot building skyrocket from $170,000 in 2008 to $560,000 last year.

The Albany Community School's rent jumped from $195,000 to $350,000.

Green Tech High Charter School rents went from $443,000 to $487,000.

Meanwhile, all the Albany charter schools haven't achieved the enrollment levels their founders expected, even after recruiting hundreds of students from suburban school districts to fill their seats. The result has been less money in per-pupil state aid to pay operating costs, including those big rent bills.

Several charters have fallen into additional debt to the Brighter Choice Foundation.

You'd think these financial problems would raise eyebrows among state regulators - or at least worry those charter school boards. But the powerful charter lobby has so far successfully battled to prevent independent government audits of how its schools spend their state aid.

More: http://www.alternet.org/economy/146853/now_we_know_why_banks_have_taken_so_much_interest_in_charter_schools/

[Scuba]

1. But we'd hate it to be more 'socialist'

:sarcasm:

[lib2DaBone]

2. Just think.. if Goldman Sachs and the Bush Family can get control of our schools..

The cash flow from property taxes to the school boards is obscene.

Not to mention the State Lottery Funds and Gambling proceeds that supposedly finance our schools.

This is a mega, HUGE chunk of cash.. that the Republicans are absolutely obsessing over.

They want the Social Security Cash Flow... but if they get their fat greasy hands on school funding... Katie Bar-the-Door. Republican Rule from here to eternity... with the Oligarch Bush family skimming the cream off the top.. ya baby... the smell of cash is nice...

[WinkyDink]

3. The Bush Mob Family has, for a LONG TIME, planned to steal all the public monies it could. "NCLB"

is one element in thieving money from public schools---by DESTROYING THEM in favor of investor-owned schools.

And now they have a zealous ally in the current Sec. of Education.

Investor-owned charter schools.
Investor-owned prisons.
Blackwater.
Write your own et ceteras.

[Mendocino]

5. Privatized National Parks

Underfund them for years, they deteriorate, then private interests have to come in and "save" them.

[Hannah Bell]

10. kind of like the country.

[Quantess]

4. Interesting.

[rucky]

6. Even better when the company running the school is collecting its own rent...

http://www.schoolsmatter.info/2009/09/imagine-schools-inc-becomes-funnel-for.html

http://www.lasvegassun.com/news/2010/apr/02/charter-school-families-find-they-have-little-say-/

[NuttyFluffers]

7. needs a kick. here comes the next speculation bubble & privatization scheme.

let's see who's easily fooled that privatization of education is a good thing and comes to defend this. :)

[depakid]

8. It does shed some interesting perspective on the issue

I hope that public school teachers who've been disrespected right and center right will find some angles on what's going on that might not have been considered so well before.

[blindpig]

13. Yes

Manufacturing has become so efficient that the glut of goods depressed profits to the point that capital has been forced to seek more profitable venues. Thus bubble after bubble, the rate of which accelerates. It will all eventually collapse but there is cold comfort in that, it is not something anyone would want to experience and as we now see may well wreck the biosphere in the process.

We really got to do something, for the love of life.

[Hannah Bell]

9. and i'll bet that's not the only scam being run the people haven't been aware of.

[Karenina]

11. See Premise Twenty

http://www.endgamethebook.org/Excerpts/1-Premises.htm

[Hannah Bell]

12. agreed

[snot]

14. K&R'd -- AND

I hope everyone will join me in sending info like this to the few people left in the media who are open to the progressive p.o.v.; 'cuz I still see/hear almost nothing about this issue (the corporate take-over of public education) from anyone other than a few bloggers.