Investment
focus is charter schools
By
Helen Gao
SAN DIEGO UNION-TRIBUNE STAFF WRITER
July 11, 2006
As a venture capitalist, Greg Mauro's job is to find and
nurture promising technology startups for investment opportunities. Now he
wants to do the same in the public education arena.
The 36-year-old recently helped secure $35 million in federal
tax credits for building new charter schools in low-income neighborhoods in
San Diego-based
Revolution Ventures, where Mauro is managing partner, created Revolution
Community Ventures, a community development entity, specifically to apply for
the tax credits.
Revolution is working with the Point Loma-based chain of
High Tech High charter schools, which received state permission in January to
open 10 more campuses in
Its goal is to work with other proven charter schools that
have this state license to expand. So far, High Tech High is the only charter
organization meeting that criteria.
Revolution will be paid for managing the tax credits and working
with banks to secure favorable low-interest loans for school construction.
Charter schools are alternative public schools that operate
independently of school districts. Although some are highly successful in
educating students, they lack the resources to build campuses. Foundations that
give charter schools financial support generally do not provide funding for
brick and mortar.
Federal tax credits, often used to attract investments for
housing and retail projects in blighted areas, can be used to attract capital
for the construction of new charter schools. Investors receive tax breaks in
exchange for providing capital.
High Tech High is one of the most well-regarded charter
school organizations in the country. It started in 2000 with a single campus,
The Gary and Jerri-Ann Jacobs High Tech High. Today,
it has six elementary, middle and high schools at the former
The Point Loma cluster attracts thousands of applicants each
year for a few hundred slots. Recently, it had 2,700 applicants for 285
openings.
High Tech High students learn through a hands-on approach
that encourages them to pursue projects of interest to them. Classrooms look
like high-tech workplaces, and students have frequent interactions with career
professionals through internships, projects and other activities.
Mauro, who serves on the High Tech High Foundation board,
established the Mauro Scholars Program, which places High Tech High students in
internships at startup technology companies. Revolution Ventures and the
companies it invests in provide the internships.
Mauro said he is impressed by the High Tech High chain's
success in preparing low-income, minority students for college. Ninety-nine
percent of High Tech High's class of 2006 are heading
to college.
High Tech High strikes him as “best of the breed” in the
public education sector.
“It's not rocket science that they are doing. It's the
design principle by which the school is operated. They have really poised
themselves to be able to expand,” he said.
Revolution was among a select group of community development
entities nationwide that successfully competed against more than 250 applicants
to secure federal tax credits for charter school development.
The U.S. Department of the Treasury made the award to
Revolution Community Ventures last month, when it announced $4.1 billion in
investments under its New Markets Tax Credit Program.
Under federal rules, tax credits have to be used over a
seven-year period. For each year of investment, investors receive tax credits
that can be used to reduce their tax bills.
Tax credits can only be used in low-income areas that meet
federal poverty criteria. High Tech High is considering sites for new schools
in
Jed Wallace, chief operating officer for High Tech High,
said the tax credits will go a long way in helping to build new campuses, but
the charter organization still has to raise millions.
The challenge facing Revolution Community Ventures and High
Tech High is to acquire land to build schools in eligible areas.
Getting banks involved isn't a problem; Revolution had
letters from banks expressing interest in investing more than $100 million.
Mauro hopes that public agencies – including the
“We want to focus on