A few Colorado charter schools won ‘the lottery’ in this year’s round of school construction grants

Five Colorado charter schools are among the nearly three dozen schools getting new roofs, HVAC systems, or even entire new buildings courtesy of state land proceeds, lottery funds, and marijuana tax revenue.

The State Board of Education this month approved $275 million in grants through the Building Excellent Schools Today or BEST program, with schools and districts contributing an additional $172 million for $447 million in total construction projects.

This is the largest award the state has ever given, a 60 percent increase from the nearly $172 million given out last year. It’s also likely to be the largest award for some time to come. With this grant cycle, the board that oversees the BEST program used up its existing ability to issue debt, similar to the limit on a credit card, and next year’s grants will be limited to cash awards of roughly $85 million.

Charter schools traditionally have not done well in the competition for BEST grant money – a sore point for advocates because the schools can’t bond off property tax revenue like school districts can –  but this year, with more to spend overall, the committee that distributes the money also gave more of it to charter schools.

In a typical year, the grant program funds about half of the requests that come in, after prioritizing them based on a number of criteria, including health and safety concerns. This year, almost 70 percent of requests were funded.

Jeremy Meyer, a spokesperson for Colorado Department of Education, said officials in the capital construction program also made a deliberate effort to reach out to charter schools and explain the requirements of the grant program. Some of the successful applicants had applied before and were able to make refinements to this year’s applications. Representatives of charter schools, meanwhile, said this iteration of the BEST board seems more receptive to their needs.

“A lot of it was a function of them having more resources to distribute,” said Dan Schaller of the Colorado League of Charter Schools. “It’s a very positive development, but it’s important to keep it in context that over the last five years, charter schools have received in aggregate less than 1 percent of the funding.”

About 13 percent of Colorado students attend charter schools, which are publicly funded but independently run and exempt from some rules.

Legislation passed in the 2018 session increases the amount of marijuana tax money going to the grant program to 90 percent of all recreational marijuana excise tax revenue. Before, it had been capped at $40 million a year, even as the state took in far more pot tax money than was originally projected. Of this money, 12.5 percent will be set aside for charter school facilities needs.

However, state lawmakers balked at allowing the BEST program to borrow off of marijuana revenue, given the uncertain regulatory future under President Donald Trump and Attorney General Jeff Sessions, who is hostile to legal marijuana.

Without the ability to issue new debt, future awards are more likely to go to roof replacements and new heating and cooling systems than to new buildings, like the new elementary school approved in Adams 14 or the new buildings for Ricardo Flores Magón Academy in northwest Denver and Swallows Charter Academy in Pueblo.

Having the state fund a new building for a charter school is “like winning the lottery,” said Jane Ellis, who works with charters to find low-cost financing for their facilities.

This was Flores Magón Academy’s third attempt at getting a BEST grant. The state-authorized charter school serves roughly 300 students from kindergarten through eighth grade, most of them from low-income families. The school sits in a pocket of unincorporated Adams County at West 53rd Avenue and Lowell Boulevard, near Regis University, and most of the school’s families live in Denver.

In 2011, the school bought the Berkeley Gardens Elementary building, which had been shuttered for a decade. The school was built in 1906 and has several additions.

“Each add-on is very unique and reflective of its decade and comes with its own delightful challenges,” said Kaye Taavialma, a former executive director of the school who is working as a consultant on the building project. “We have to be very cognizant and aware of any precipitation.”

The roof leaks, the pipes leak, there aren’t enough bathrooms, and there’s asbestos in the walls and in the glue that holds down multiple layers of carpet. Portions of the school have been blocked off due to mold problems. The office is in the center of the building, without a clear line of sight on the entrances, creating security concerns. During one storm, a window blew out in a classroom. Fortunately, no students were injured, Taavialma said.

The school got $15.5 million from the BEST program and through a waiver only has to contribute $818,000 to the total project cost, rather than the $3.3 million that would normally be required under a state matching formula. The new building will be built on the site of the play fields and should open to students during the 2020-21 school year.

“For our school, this is tremendous because coming up with $3 million would have been darn near impossible,” Taavialma said. “As we see charters continue to proliferate and they’re being asked to move into buildings that either weren’t constructed to be school buildings, or like we experienced, a school building that has been sitting vacant for a long time, I hope this is a trend that continues.”

You can see the full list of grant winners here.