MINNESOTA

Submitted by admin on February 4, 2010 - 8:31pm
in
All Minnesota Charter Schools are eligible to apply.
• There is no “free and reduced lunch” requirement
• There are no membership requirements

In order to be approved for funding:
• Schools must be in good standing with their authorizer and the MDE
• Schools must be organized as a non-profit corporation
• Other conditions may apply on a case by case basis

Minnesota

Submitted by admin on January 26, 2010 - 9:58pm
in
Intro Text: 
Holdback have increased to 40% for FY 2012.
Meet uncertainty with a plan.
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We can help your school.
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Minnesota has completely shifted it's funding strategy, increasing the holdback to 40% for FY12 and paying schools the 60% balance over 16 payments, July through February. March, April, May and June ... there will be no payments made. The 40% holdback will be paid at 75% on July 30 and the remaining 25% the end of October. With the state still facing large shortfalls in the next biennium, there is no sign of reprieve for education. Click through the tabs below to see how holdbacks will impact your school.

Right Column Image: 
Resources (downloads): 
application/pdf iconCharter School Capital CEO Named Entrepreneur of the Year by Ernst & Young
application/pdf iconThe Actual Cost of Selling Receivables
application/pdf iconLetter From Becky Meyer, AFSA
application/pdf icon"White paper on Cash Flow Challenges for MN Charter Schools" Issued by the Non-profit Assistance Fund, Fall 2009 (Download PDF)
application/pdf iconMDE Memorandum: State Aid Payment Delay under Minn. Stat. § 127A.46

FY12 Minnesota Holdback

Submitted by admin on January 28, 2010 - 9:50pm
in

• In months July through February, a school will receive 60% of it's Annual Revenue across 16 payments
• Schools will receive NO payments in the months of March, April, May or June
• The sequential 40% Holdback will be paid in two payments: 75% on July 30th and 25% on October 30th in the following Fiscal Year

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Relevant to State: 
Alabama

Our Sample School will have cash flow issues:

Submitted by admin on January 28, 2010 - 9:38pm
in
Situation:

• The school will face a $960,000 cash flow shortfall March through June due to holdbacks
• Annualized Revenue = $2.4 million ($10,000/ADM) with 200 ADM
• 40% Holdback = $960,000

Challenge:

• The school will receive 60% of its annual revenue in 16 payments, July through February ($1,440,000.)
• The Schools needs to continue to operate and pay it's bills March through June while receiving NO payments from MDE.
• The School needs a plan.

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The Situation:
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The school will face a $960,000 cash flow shortfall due to holdbacks
Overview Page?: 
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Relevant to State: 
Alabama

Charter School Capital Financing Solution

Submitted by admin on January 28, 2010 - 9:46pm
in
Solution:

• The school has $250,000 in reserves
• Charter School Capital provides $768,000 in funding
• The school has the option of a multi-year agreement

Result:

• The school preserves a sound portion of cash reserves, and keeps their attention on programs instead of cash flow issues.

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The Result:
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Charter School Capital provides financial resources to cover cash flow needs.
Overview Page?: 
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Relevant to State: 
Alabama
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