Charter Schools and the Capital Markets
January 2007 - Download the PDF
Although charter schools are a promising innovation in education, their growth is hamstrung by a lack of sustaining capital, which is required to fill the gap between the per-pupil funds charter schools receive and the amount they need to develop effective organizations that provide consistent and high-quality education services and back-office support for their schools.
This article – from the Fall/Winter 2006 issue of Urban Education journal, published by the Rossier School of Education at University of Southern California – examines the evolution of the capital markets for charter schools, including for-profit and nonprofit providers, and explains how the capital barriers are limiting the further development of this market.