Grappling with Closure Costs

Grappling with Closure Costs

States across the country are grappling with how to handle expenses when a charter school is closed. Two states have introduced legislation addressing this topic. In Florida, charter schools would be required to post a performance bond at the beginning of each school year equal to one half of the school’s projected operating funds that the district could use if the charter school defaults on any of its financial obligations with their sponsor. In Indiana, charter schools would pay into a charter school escrow account monthly for the first three years of operation. This money would be used by the authorizer to pay final balances and salaries should the charter school close. Stay tuned to NACSA for more on this emerging topic. Read the full text of the Florida and Indiana bills.

 


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