Release #416-00

MAYOR GIULIANI ANNOUNCES CREATION OF
$10 MILLION CHARTER SCHOOL IMPROVEMENT FUND

Fund Offers Grants to City Charter Schools to Support Capital
Improvements and Purchase Equipment.

Mayor Rudolph W. Giuliani today announced the creation of the Charter School. Improvement Fund, a $10 million fund that will offer grants to New York City charter schools of up to $250,000 per school to support specific capital improvements and purchase needed equipment.

The Mayor made the announcement at the Bronx Preparatory Charter School, a new school located in District 9 in the Bronx. Joining the Mayor were Deputy Mayor for Planning, Education and Cultural Affairs Anthony Coles; Board of Education Member and Department of Youth and Community Development Commissioner Jerry Cammarata; Department of Design and Construction Commissioner Ken Holden; Office of Management and Budget Director Adam Barsky; and Bronx Preparatory Charter School Director Kristin Kearns Jordan.

"Charter schools give real alternatives to parents, and spur much-needed competition within the public school system," Mayor Giuliani said. "The charter school movement is one of the most exciting education reforms going. But it needs our help. Charter schools simply don't receive the capital funding and money for equipment that regular public schools get, and this puts them at a real disadvantage. With this fund, we will help promising schools that need our help, and also help the charter school movement fulfill its promise."

"The New York City Charter School Improvement Fund is the first charter school grant fund to be offered by a local government, and one of the most generous facilities fund in the nation," said Deputy Mayor Coles. "Given the cost of facilities and construction in New York City, funding for capital improvements-things like libraries, computer labs, and science labs-is a particularly pressing need for charter schools located in the five boroughs."

Bronx Preparatory Charter School Director Kristin Kearns Jordan said "This program addresses head-on one of the most intractable problems faced by nascent charter schools by helping us develop facilities for high-quality educational programming. We're thrilled that Mayor Giuliani has recognized this pressing need and has taken the lead in answering it."

The Fund will be managed by a committee comprised of the Commissioner of the Department of Youth and Community Development, the Commissioner of the Department of Design and Construction, and the Director of the Office of Management and Budget. Charter schools with specific capital needs may apply for a grant by submitting a plan detailing how the school intends to utilize the funding. Grants will be based on a school's demonstrated need, and on the quality of its plan.

This Fund also incorporates a special performance-based award system to encourage charter schools' financial independence and academic excellence. When a school is given a grant for a project, 10% of the total award will be withheld. One to two years later, when school-wide student achievement has been assessed using standardized math and reading tests, the following assessment system will be applied: schools performing in the bottom third of their community school district in math and reading scores will not have the 10% withholding restored; schools performing in the middle third of their district will have the 10% withholding restored; and schools performing in the top third of their district will have the 10% withholding restored and receive an additional 10% performance bonus, to be applied toward capital projects. Under special circumstances, the Charter School Improvement Fund may exempt schools from these performance criteria. All schools will be expected to raise private sector funds equal to the initial 10% performance-based withholding.

By granting awards of up to $250,000 to individual charter schools, New York City's fund offers schools more than any other fund in the nation, and is the only such pool of funding provided directly by a municipal government. New York State government currently provides some assistance to charter schools through a State Stimulus Fund, but the grants available through this fund primarily cover school planning and start-up.