The Albany Times-Union reports that Albany’s biggest charter chain is burdened with crushing debt after the closure of two of its schools with poor academic results.

 

 

“The closure of the Brighter Choice middle schools will eventually leave the foundation on the hook for a $15.1 million construction debt it guaranteed that Wall Street doubts it can pay for more than three years. The 30-year bonds were issued in 2012 through the Industrial Development Authority of the City of Phoenix; in March, Fitch Ratings called the schools’ default “inevitable. The foundation has also guaranteed another $1.35 million in related loans for the schools. A default by the schools would force the foundation to find a way to pay the bondholders — Chicago-based Nuveen Asset Management — without the $14,072 per-student revenue that is the core of the Brighter Choice business model, or face having the building sold out from under it.”

 

 

The founder of the Brighter Choice Foundation is Tom Carroll. Carroll is a leading advocate for charter schools in New York state. He is also president of the “Coalition for Opportunity in Education” and the “Foundation for Education Opportunity,” which is advertising and promoting Governor Cuomo’s Education Tax Credit. The ETC would funnel at least $150 million to nonpublic (religious and private) schools.

 

This financial disaster is happening in Albany. Surely Governor Cuomo knows about it. Yet he continues to promote charter schools as a panacea for children in schools with low test scores. He doesn’t seem to realize that schools don’t have low test scores; children do. They need help: smaller classes, guidance counselors, social workers, a full curriculum, not charter schools of unknown quality.