As a charter school administrator, you know that having the right facilities is crucial to providing a quality education to your students. However, finding and affording the perfect facility can be a daunting task. That’s why we’ve developed the Facility Affordability Tool – a comprehensive tool that can help you determine whether you can afford that new charter school facility.
In this article, we’ll explore how the Facility Affordability Tool works and how it can help you make informed decisions about your school’s facilities. We’ll also answer some frequently asked questions to help you get started.
The establishment of a network of public charter schools that are of a high level is the labor of heroes. Although educators are working hard to do remarkable things for the children and families in their care, they are often taken aback by the amount of time and effort that is required to secure and finance appropriate facilities. This blog series is intended to assist new school leaders in navigating major concerns, preparing their schools for long-term success, and getting back to the hard job of developing schools that are on par with the best in the world.
A few of disclaimers, an organizational structure, and some presumptions.
This article focuses on relatively new and expanding charter school networks that are in the process of constructing and funding additional campuses. The Facility Affordability Tool, on the other hand, may be used by any network in a wide variety of facility circumstances (i.e., build, renovate or lease). In general, we urge educational institutions to explore a variety of facility and funding possibilities, and to avoid making an excessive commitment to a single solution or a single partner too early in the process.
What your school is able to spend is not always an accurate reflection of what the school ought to spend. Each and every dollar that is invested on the structure ultimately finds its way into one of the classrooms. When forecasting the expenses of future facilities, we feel it to be fiscally responsible to be as cautious as possible. However, savvy networks look for opportunities to spend less than what they can afford, and in some cases spend more than what they can afford, with the idea that, overall, the charter network is at or below its affordability threshold. In some cases, this means spending more than what they can afford on advertising.
The Facility Affordability Tool operates on the basis of a very straightforward assumption. If total recurring public revenues equal one hundred percent of total expenditures, then those funds must be used to pay for the following three expenses: a) school program cost: the cost of running the school, which includes teacher salaries, field trips, textbooks, and other related expenses; b) home office fees: the fee schools pay to a central network staff to provide things like curriculum support, payroll and benefits, compliance services, and other related expenses; and c) facilities cost: “mortgage” or lease expenses, in addition to occupancy costs that include utilities, maintenance, and other related expenses. Notice that the calculator takes into consideration just the cost of the mortgage and rent when determining whether or not a property is affordable; however, in the next paragraph, you will learn how to factor in the cost of occupancy.
As a general guideline, you should aim for an 18%-20% profit for facilities as a percentage of public income as your first objective. In order to comprehend what an 18–20% facilities margin entails, let’s draw on the framework presented before. After a significant amount of effort on the school design, as well as feedback from the community, the school program accounts for 72% of public income. For the sake of simplicity, let’s assume that a 10% home office fee is assessed to each school in the network.
Can You Afford That New Charter School Facility? (Facility Affordability Tool) – How It Works:
The Facility Affordability Tool is a comprehensive tool that takes into account your school’s finances, growth projections, and other factors to help you determine whether you can afford a new charter school facility. Here’s how it works:
Step 1: Input Your School’s Financial Data
The first step in using the Facility Affordability Tool is to input your school’s financial data. This includes information such as your school’s annual budget, revenue streams, and expenses.
Step 2: Input Your School’s Growth Projections
The next step is to input your school’s growth projections. This includes information such as your school’s current enrollment, projected enrollment growth, and the number of years until you plan to move into a new facility.
Step 3: Input Other Factors
Finally, the Facility Affordability Tool takes into account other factors such as the cost of the new facility, financing options, and other relevant financial data.
Once you’ve input all of this data, the Facility Affordability Tool will generate a comprehensive report that tells you whether you can afford that new charter school facility.
Can You Afford That New Charter School Facility? (Facility Affordability Tool) – Frequently Asked Questions:
Q: What factors does the Facility Affordability Tool take into account?
A: The Facility Affordability Tool takes into account your school’s financial data, growth projections, and other relevant financial data such as the cost of the new facility and financing options.
Q: How accurate is the Facility Affordability Tool?
A: The Facility Affordability Tool is highly accurate and takes into account a wide range of financial data to provide you with a comprehensive report.
Q: Can the Facility Affordability Tool help me find financing options for a new facility?
A: While the Facility Affordability Tool does not directly help you find financing options, it does take financing options into account when generating its report.
Q: Is the Facility Affordability Tool easy to use?
A: Yes, the Facility Affordability Tool is designed to be user-friendly and easy to use. You don’t need any special financial expertise to use it.
Finding and affording the right facility for your charter school is a crucial task, but it doesn’t have to be overwhelming. With the Facility Affordability Tool, you can make informed decisions about your school’s facilities and ensure that you’re providing your students with the best possible education. So, can you afford that new charter school facility? Use the Facility Affordability Tool to find out!