SB14-086: Charter School Capital Construction Revolving Loan Program

• Creates a revolving loan program administered by the Treasury Department to provide low-interest loans for capital construction to charter schools and institute charter schools in existence for 4 or fewer years

• Establishes a $5 million initial fund from the State Education Fund, supplemented by loan repayments and donations, with loans capped at $300,000 per school lifetime, interest rates not exceeding 4% annually, and terms not exceeding 5 years

• Treasury Department automatically withholds monthly loan payments from state funding distributions to charter schools and their authorizing districts, with chartering districts reducing school funding by the withheld amount

• Creates a default insurance fund financed by surcharges on issued loans to cover losses if schools default, with the State Treasurer establishing surcharge amounts and required fund balances by rule

• Requires annual reports to the Joint Budget Committee on the financial condition of both the revolving loan fund and default insurance fund, with first report due by August 1, 2015