Policy Documents

Facilities Financing: Monetizing Education’s Untapped Resource

Himanshu Kothari –
April 4, 2011

One of schools’ biggest expenses currently is updating and building new facilities, but local budgets often do not have room to do this work, writes Himanshu Kothari in an American Enterprise Institute working paper. Private investors could be an excellent partner to offer what schools need, but they are often stymied by inconsistent regulation and the fickleness of state and local politics. To achieve a more stable environment, he says, administrators must be held accountable for academic and financial performance, states should loosen regulations on charter schools and other nontraditional education options, and governments should expand the opportunities for schools to take advantage of more financing options besides government loans and tax increases.