Minnesota's charter school movement, which sparked a national rethinking of public schooling nearly two decades ago, has been infected by an out-of-control financing system fueled by junk bonds, insider fees and lax oversight.
State law prohibits charter schools from owning property, but consultants have found a legal loophole, allowing proponents to use millions of dollars in public money to build schools even though the properties remain in the hands of private nonprofit corporations.
The key to making it all work is the state's lease aid program, which was created 11 years ago to help spur competition in public education by offering rental assistance to groups promoting alternatives to district schools. In the beginning, many charters were located in dumpy strip malls and received no real-estate grants.
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