Growth Loan Program: Investors to the Rescue

July 5, 2006

The Wall Street Journal last week reported on the California Charter School Association's Growth Loan Program coming to the rescue of many strapped charter school operators, who are often using their personal assets to finance their charter public schools since the public school funds allotted to them often gets stuck in the bureaucratic system for months.

Fortunately, private investors see the need for their financial assistance. Prudential, working with the Association, is identifying the most high-need charters and supporting them through this program. This financial help could not have come at a better time, as charter schools need to expand to make more high-quality public school options available for students. Schools like View Park Prep, with high school test scores that rank eighth out of the 118 high schools in the L.A. Unified School District, have a waiting list of 5,000.

"If the state just gave charters the money they are owed in a timely fashion and supported charter public school growth with money advances," wrote the Wall Street Journal , "Caprice Young, the president of the Association, would be happy. 'I don't mind them putting me out of business on this one.'"

To view this article in its entirety:http://www.opinionjournal.com/taste/?id=110008587