Saturday, February 5, 2011

SB11-132, Charter School Capital Construction

Senator Keith King introduced a bill pertaining to charter school capital construction, SB 132. The bill shores up the moral obligation fund in the State Treasurer's office. When the Cesar Chavez Academy and Dolores Huerta Prep in Pueblo nearly went under, it became apparent that the state taxpayer would be fulfilling the school's obligation on the charter school facility should they default on their bond. Bond issuers became concerned about the moral ob fund and thus, this bill is meant to address those concerns.

The bill also increases the amount available in the fund from $400 million to up to $500 million. Additionally, the bill would allow the County and Municipality Development Revenue Bond Act to allow bonding for public education facilities. Currently, only the Colorado Educational & Cultural Facilities Authority can issue bonds on behalf of charter schools.

No comments:

Post a Comment