The agencies in Texas that finance municipal debt are choosing sides against charter schools. This is good news, but it should not be surprising because charter schools are risky, while traditional schools are not.

”Some Texas public finance firms are choosing sides in the escalating battle between traditional public school districts and charter schools.

“Earlier this year, Hilltop Securities, the state’s perennial leader among municipal advisers, dropped nine charter school clients to demonstrate its support for traditional districts.

”’Initially, we saw assisting charter schools as the firm enhancing our long history of support [for] primary/secondary education,” Hilltop chairman Hill Feinberg wrote in a Jan. 24 letter to Keller Independent School District Chief Financial Officer Mark Youngs. “Hilltop Securities will continue to honor our commitment to those relationships with Texas Independent School Districts by no longer representing charter schools in Texas as advisor, underwriter, placement agent or investment advisor.’”

Some bankers are starting their own firms specifically to finance charter schools.