A committee of the Texas State Board of Education is considering a proposal to invest $100 million of the $22.1 billion Permanent School Fund in new buildings for charter schools.
Board member David Bradley said the state would benefit from an 8% return on its investment through monthly rental payments. Bradley, chairman of the board’s Permanent School Fund committee, said charter schools would benefit from lower debt costs.
Bradley told board members that charter schools have problems in obtaining conventional 20-year financing because their contracts with the state are valid for no more than 10 years. The proposed $100 million investment amounts to merely 0.4% of the PSF, he said.
“I would like to see the board designate and define a new asset allocation to invest in charter-school real estate,” Bradley said.
Texas has 437 charter schools, with a total enrollment of approximately 100,000 students, according to figures from the Texas Education Agency.
