A last-minute deal to create a loan program for charters has raised questions in Indiana, since charters already have heavy debts.
“In the final days of this year’s legislative session, Republican lawmakers dropped into the massive state budget bill a provision giving charter schools access to $50 million in low-interest state loans.
“The measure was a last-minute effort to appease Gov. Mike Pence, who had sought more funding for charter schools, and it received virtually no public scrutiny.
“Now some critics — including the Senate’s chief budget writer — are sounding an alarm about the new program, given the significant debt of many charter schools.
“The main concern: Who will be on the hook if charter schools don’t repay the loans?”
The usual answer: the taxpayers of Indiana.
“In 2013, the state forgave and paid off more than $90 million in charter school loans. The move drew protests from traditional public schools whose loans were not forgiven and consequently charter schools were no longer given access to the loan money.
“Kenley said Pence and House Speaker Brian Bosma plan to do the same thing again with the new loan program — an assertion that neither denied outright.
“It’s always a possibility in the future,” Bosma said.
Diane Ravitch's blog 
Indeed. I posted this on this blog a few days ago.
This mindless politicking sure makes me proud to be a Hoosier.
Our politics have made us the laughing stock of the whole U. S.
Well, most states, including your neighbors on at least three sides, don’t have much business laughing. Glass houses and all.
Who owns the property if and when they pay back the loan? The public that lent them the money and provided each and every payment or the charter school company?
“Pence dismissed the potential risk to taxpayers. He noted that the new law gives the state a security interest if charter schools use the loan money to build or purchase new facilities.”
So if they default on the loan the public gets the property they paid for? That’s generous of Governor Pence.
Would he personally pay for property where he wasn’t given an ownership interest in the asset? If not, why does he want the public to do that?
If they don’t have an ownership interest in a publicly-funded charter school It’s as if the public said “I’ll loan you the money for your house at a special interest rate and then I’ll make every mortgage payment and as soon as I pay it off I’ll also give you the house”.
Good analogy.
Newspapers should link to the language in the bill since none of the lawmakers outside the governor apparently had any idea what they were lending, who they were lending to, or what their equity or security interest is.
Might be wise to read the language at some point, rather than relying on Governor Pence’s assurances. He probably hasn’t read it either.
This is how they can turn public assets into private equity. This is a dangerous move for taxpayers. What if the charter takes ownership of a building, and then decides to sell it for profit?. Are the taxpayers on the hook for more loans for a new building? I mention this because in some major cities such as New York, the real estate that schools sit on is worth billions of dollars.
Exactly, and thus Eva Moskowitz’ aggressive expansion into public school facilities, where over time and the application of her political juice, attempts will be made to have those buildings deeded to Success Academies.
Geez, what will lamebrain Hoosier GOP politicos do next to undermine public education?
Whatever ALEC tells them to do!!
I thought the “free market” would solve their financing problems. If the government can’t do anything right including managing its pensions, why is it getting into the business of giving loans to private businesses.
This is good news. I hope this grows by election day:
http://www.indystar.com/story/news/politics/2015/06/17/post-rfra-poll-loaded-with-bad-news-for-gov-mike-pence/28855597/
“54 percent of voters saying they favor a new governor. Less than a third said they would re-elect Pence.”