Summary: Policy makers are concerned that funding limitations may hinder the growth of future charter schools. This report determines: (1) the degree to which charter schools have access to traditional public school facility financing (2) whether alternative sources of facility financing are available to charter schools and (3) potential options available to the federal government if it were to assume a larger role in character school facility financing. GAO found that charter schools generally lack access to the most common source of facility financing for public schools--municipal bonds. Several sources of facility financing exist for charter schools, including education funds from the state, loans, and private donations. If the federal government decides to assume a broader role in financing facilities for charter schools, various mechanisms are available. They include grants, direct loans, loan guarantees, loan pools, tax-exempt bonds, and tax credits, each of which could have different fiscal and planning implications for the federal government. Moreover, greater federal assistance would change the nature of the federal government's relationship with traditional and charter schools as well as with the local and state governments that are primarily responsible for purchasing, constructing, renovating, and leasing school buildings.
