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Showing posts from July, 2023

Profit Making in NYC's Charter Schools

  Recently, I came across one more way investors are making large profits through charter schools. New York State passed a law requiring charter schools to be nonprofit. Although that is certainly making policy in the right direction, when it comes to real estate, don't ever underestimate how real estate interests can rip off the taxpayer. The NYC school system is required by state law to reimburse charter schools for the cost of its leases if the Department of Education cannot house the charter school in a DOE facility.  No other school district in the state is required to house or reimburse charter schools, just the city. Garvin Healy, a CEC2 member, has written an expose of these leases. Per NYS law, 30 percent of a charter school's per pupil funding can be spent on real estate and facility needs. This amounts to almost $5,500. The more students, the higher the real estate budget and the amount per pupil has more than doubled since 2014. So an LLC buys a building, leases it