Charter schools are a gamble. Many close due to financial mismanagement and embezzlement causing the loss of taxpayer funds when they close. There is also the adding of those students to public schools with zero funding because it was already spent.
I guess when you have access to public funds a public school would never close. But, the closure of charter schools is due in part to them not getting dollar for dollar of what a public school gets and charter schools have to buy the real estate and build the buildings whereas public schools don't.
Can you show me where in the budget of public schools they account for the real estate, classroom construction and maintenance as a part of their education costs?
From GROK AI if you want to read it all:
Public School Budgets and Facility Costs. Public school budgets typically separate operational costs (e.g., salaries, supplies, instruction) from capital outlays, which include real estate, construction, and maintenance. These costs are often funded through distinct mechanisms, such as general funds, capital budgets, or bond measures, and are accounted for in specific budgetary categories. Here’s how these costs are generally handled:
- Capital Outlays for Real Estate and Construction:
- Land Acquisition and Construction: Public schools rarely purchase new land or build facilities directly from their annual operating budgets. Instead, these costs are covered through capital budgets, often funded by voter-approved bonds, state grants, or dedicated capital funds. For example:
- In New York City, the Department of Education’s 2020–2024 capital plan allocated $7.9 billion for constructing 56,917 new K-12 seats, with an average cost of $121,270 per seat. This covers land acquisition, new school construction, and expansions.
- In Tennessee, a 2024 report estimated $9.8 billion is needed for public school construction and upgrades, often funded through state and local bonds.
- In Pennsylvania, the PlanCon program reimburses school districts for major construction projects, with costs tracked separately from operational budgets.
- Budget Line Items: Capital outlays appear in public school district budgets under categories like “Capital Expenditures” or “Facilities Acquisition and Construction.” For instance, the National Center for Education Statistics (NCES) reports that in 2020–21, capital outlays for public schools nationwide accounted for about 11% of total expenditures ($103 billion out of $927 billion), covering land purchases, new buildings, and renovations.
- Bond Funding: Districts often rely on voter-approved bonds for large projects. For example, in Palo Alto, California, the Measure A and Measure Z Strong Schools Bonds (2008 and 2018) provided $378 million and $460 million, respectively, for construction and renovations, including classroom buildings.
- Maintenance and Operations:
- Maintenance Costs: Maintenance is typically included in the operational budget under the subfunction “Operations and Maintenance” or “Facilities Maintenance.” According to NCES, in 2020–21, operations and maintenance accounted for a portion of the $927 billion in total public school expenditures, with specific costs like utilities, repairs, and custodial services included. This category made up about 9–10% of current expenditures (roughly $83–92 billion nationally).
- Budget Line Items: These costs are often listed as “Plant Operations and Maintenance” or “Building Services” in district budgets. For example, in Memphis-Shelby County Schools, maintenance projects are funded through operational budgets, but a 2024 report noted $94 million was reallocated from maintenance to other operational expenses due to fiscal constraints.
- Deferred Maintenance: Many districts defer maintenance to save costs, leading to backlogs. A 2002 U.S. Department of Education estimate pegged the cost to bring schools to “good condition” at $127 billion, with 30% needing extensive repairs. California alone had a $22 billion infrastructure need, partly due to deferred maintenance.
- Real Estate Costs:
- Land Ownership: Public schools typically don’t account for real estate costs in their annual budgets because land is often already owned by the school district or local government. When new land is needed, it’s funded through capital budgets or bonds, as mentioned above. For example, the cost of land in high-cost areas like urban centers can equal or exceed construction costs, but these are one-time expenses covered by capital plans.
- Accounting for Real Estate: Unlike charter schools, which often lease or purchase facilities, public schools rarely include real estate costs as a recurring expense. Instead, these are treated as capital investments, amortized over decades through bond repayments. Districts may report these under “Debt Service” if bonds are used. For instance, the Urban Institute notes that local governments cover 99% of direct spending on school facilities, often through property taxes or bonds.
Comparison to Charter SchoolsCharter schools, unlike public schools, often receive per-pupil funding that excludes dedicated facility funding. A 2014 study by the University of Arkansas found that public schools received about $2,000–$3,000 more per pupil in facilities funding compared to charter schools. Charter schools must often:
- Lease or Purchase Facilities: Pay for real estate out of operational funds, which can consume 10–20% of their budgets.
- Fund Construction: Secure loans or private funding for building projects, unlike public schools’ access to bonds or state programs.
- Cover Maintenance: Handle all maintenance costs without separate capital budgets, straining operational funds.
This disparity can contribute to financial instability, increasing the risk of closure due to mismanagement or insufficient funds to cover facility costs. The National Charter School Resource Center notes that facility costs are a leading cause of financial strain for charter schools, with some spending up to 15% of their budget on rent or mortgages.Where Costs Appear in Public School BudgetsTo summarize where real estate, construction, and maintenance appear in public school budgets:
- Capital Budgets: Land acquisition and construction are funded through bonds, state grants, or capital outlays, listed as “Facilities Acquisition and Construction” or “Capital Expenditures.” Nationally, this is about 11% of total expenditures ($103 billion in 2020–21).
- Operational Budgets: Maintenance is included under “Operations and Maintenance,” typically 9–10% of current expenditures ($83–92 billion in 2020–21).
- Debt Service: Bond repayments for land and construction may appear as “Debt Service” in district budgets, covering long-term facility costs.
- State Programs: In states like Pennsylvania (PlanCon) or Virginia, construction costs are tracked separately and partially reimbursed by the state.
Limitations and Data GapsPrecise budget breakdowns vary by state and district, and not all districts transparently report facility costs separately from operational expenses. The NCES provides national aggregates, but local budgets may obscure real estate costs under broad categories like “capital outlays.” Additionally, older schools with paid-off facilities may not reflect real estate costs in current budgets, unlike charter schools facing ongoing lease or mortgage payments.
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