In a recent meeting of the Assembly Education Committee, lawmakers discussed a significant update to the charter school revolving loan fund, which has been in operation since 1996. This program provides low-interest loans of up to $250,000 to new charter schools, aiming to support their establishment and growth. However, the program has seen a steady decline in applications since the California School Finance Authority (CSFA) took over its administration in 2014, prompting a need for changes to increase participation.

Deputy Treasurer Chaim Morton highlighted that the CSFA has issued approximately $61 million in loans to over 61,000 students since its inception. The proposed bill, SB 631, aims to expand eligibility for these loans, allowing all charter schools to apply, with a focus on those affected by natural disasters, such as the recent wildfires in Los Angeles. This change is expected to enhance access to funding for schools that need it most.

The committee noted that the current fund balance stands at around $27 million, but only a fraction of this has been disbursed in recent years, with only eight loans totaling $2 million awarded last year. The bill seeks to increase the maximum loan amount from $250,000 to $500,000, addressing the rising costs that schools face and encouraging more applications.

Committee members expressed support for the bill, recognizing the importance of providing financial assistance to charter schools, especially those recovering from disasters. The bill received unanimous support in the committee, with no opposition voiced during the meeting.

As the Assembly moves forward with this legislation, it aims to ensure that charter schools have the necessary resources to thrive, ultimately benefiting students and communities across California. The next steps will involve further discussions and potential amendments before the bill progresses to the appropriations committee.