The Underfunded Quest for a Charter School in Alamogordo. What’s it cost to open a Charter School?

Photo byStanford University

The New Mexico Public Education Commission was in Alamogordo on July 11th, 2024 to host a public meeting on the application for Alamogordo to host a charter school.

Starting a charter school is a noble and fulfilling endeavor that allows educators and community leaders to offer innovative educational opportunities to students. However, like any ambitious venture, it’s essential to be aware of the financial considerations involved in establishing a charter school.

The Alamogordo Public School System was founded in 1912 and the town has hosted one public high school since that founding, along with several private and home schooling facilities.

The APS system struggled at launch with segregation in a segregated town

By the 40s and early 50s Alamogordo was considered transitioned to a more progressive political environment: the school system excelled and by the 60s ranked in the top 10 in the nation and recruited teachers from around the nation as it was a high paying district

Alamogordo at its peak during the development of the atom bomb, missle technologies etc played host to a large German population and had a school system that was recognized around the nation.

As the years passed the city of Alamogordo suffered many economic setbacks, it failed to diversify its economy, many of the technology and areospace companies such as Boeing, Honeywell, General Dynamics relocated staff elsewhere and as the economic diversity shrank, the school system began to decline in quality. That slide impacted math, science and technology related education. The slide continued.

The system lacked stability in school superintendents and it hit a crisis point from 2015 to present.

Despite that lack of stability the high school the last 4 years saw some very dedicated teachers and administrators work well on STEM, AP and career development courses: the result is graduation rates have improved to outperform state results by 10 points in graduation rates and most programs are on the rise.

Political infighting and finger pointing has been the status quo the last 3 years within groups vying for power and control over the school system.

Then in January of 2024, a closed group of 6 individuals using the backstage of the Chamber of Commerce and Main Gate United submitted a preapplication for a STEM focused charter school to compete with Alamogordo High School for a select group of students using taxpayer dollars.

The application was aspirational with a focus on STEM but not backed with a solid financial plan, relying almost exclusively upon the potential for state, local and federal grants. The plan was aspirational but without a solid financial commitment and foundation many question its viability.

At the public hearing on July 11th, a commission member reminded the founding board that “aspiring for excellence is commendable but the reality is a charter organization is a business and a business must have a viable financial plan.”

With that thought in mind several of our readers have asked us what are the traditional start up costs associated with starting a charter school?

PLANNING AND DEVELOPMENT COSTS

The early stages of creating a charter school require meticulous planning and preparation. Here are some costs to consider during this phase:

Feasibility Study: Conducting a comprehensive feasibility study to assess the viability of the charter school can incur expenses. This study analyzes educational needs, market demand, and potential enrollment projections.

Legal and Consulting Fees: Engaging legal counsel and educational consultants to navigate the complex chartering process can be an essential investment.

Charter Petition Development: Creating a high-quality charter petition may require funding for research, writing, and design.

FACILITIES AND INFRASTRUCTURE

Finding suitable facilities and establishing infrastructure are significant initial costs. Consider the following expenses:

Rent or Purchase: Leasing or purchasing a building for the charter school may require a substantial upfront investment or ongoing rental expenses.

Renovation and Equipment: Renovating and equipping the school premises with essential amenities such as classrooms, offices, furniture, technology, and school supplies can add to the initial costs.

STAFFING AND SALARIES

Hiring qualified educators and administrative staff is crucial to the success of the charter school. Be prepared for the following financial commitments:

Teacher Salaries: Competing with other educational institutions to attract and retain talented teachers may require competitive salary offers.

Administrative Staff: Budget for administrative staff salaries, including principals, office personnel, and support staff.

Professional Development: Investing in ongoing professional development for staff ensures continued growth and improved teaching practices.

EDUCATIONAL RESOURCES AND CURRICULA

Developing and implementing a robust educational program requires adequate resources:

Curriculum Materials: Budget for textbooks, digital resources, and learning materials necessary to deliver high-quality instruction.

Technology Integration: Integrating technology into the learning environment may require funds for devices, software licenses, and technical support.

COMPLIANCE AND LICENSING

Charter schools must adhere to various regulations and licensing requirements:

Compliance Costs: Set aside funds to meet state and federal reporting requirements and ensure adherence to educational standards.

Licensing and Accreditation: Budget for the costs associated with obtaining necessary licenses and pursuing accreditation.

MARKETING AND OUTREACH

Promoting the charter school to attract students and engage with the community comes with its own costs:

Marketing Materials: Designing and printing brochures, flyers, and promotional materials.

Events and Outreach: Organizing open houses, information sessions, and community engagement initiatives.

OPERATIONS AND ONGOING EXPENSES

Maintaining the day-to-day operations of the charter school requires a sustainable budget:

Utilities and Maintenance: Budget for ongoing expenses related to utilities, maintenance, and repairs.

Insurance: Secure insurance coverage to protect against potential risks and liabilities.

FUNDING AND REVENUE SOURCES

Charter schools can access various funding sources, such as:

Public Funding: Charter schools receive public funds based on enrollment and may be eligible for additional grants and allocations.

Donations and Fundraising: Community support and fundraising efforts can supplement the budget.

Private Grants: Seek out grants from foundations or corporations that support education initiatives.

The proposal submitted relies almost exclusively on public funding per the submission submitted. What are the real expenses or costs to start and operating costs?

Estimates for a typical Charter School in New Mexico as startup costs before operating even begins is around $1 to $2 Million to launch.

The exact cost of opening a charter school can vary significantly based on the cost of the land, the size of the complex, and the number of students and teachers. For instance, if the applicant anticipate 140 students, they need a building as large as 20,000 feet. Getting an architect to design such a structure from the ground up may cost as much as two million dollars taking over an existing building can drop that in half. A small staff comprised of 4 to 6 standard teachers, one special education teacher, three teacher's aides, a librarian, and a principal will cost a little over $700,000 to $1 Million per year depending on their salaries.

Buying a stock of medical supplies, hardware supplies, toiletries, and various odds and ends may cost as high as $20,000. Stocking a small library with 20,000 books may cost nearly $120,000 to $200,000 and getting the relevant shelving needed may cost $5,000. Purchasing computers for the school can cost over $75,00 and furniture (ranging from the standard desks and tables to examination tables and gym wall pads) can easily cost $50,000. Larger appliances such as refrigerators, stoves, dishwashers, and food bars will cost $50,000 or more. VR, labs and equipment worthy of a STEM project necessitates another $200,000 minimum.

The start up and facilities expenses cannot be paid for with operating funding. Operating funds nationally for charter schools are paid $7,131 per pupil. The proposal for the Sacramento School of Engineering and Science calls for 50 students in year 1 reaching 156 students in year 5. The operating income would then range from $285,000 first year to $1.1 Million in year 5. The operating income presented in the budget submitted does not even come close to the funding necessary based upon state and national budget projections and norms for charter schools.

The financials were not well understood or anticipated by the founding board and as such the public should be concerned and demand that the NMPED reject the submitted application, send the founders back to reapply next January 2025 for a 2026 launch only if and after they have established a supplemental funding source as a foundation to establish the building, equipment and first year operating expenses.

Comments to the NMPED may be submitted until 5 pm July 16, 2024 to the email address of charter.schools@ped.nm.gov