Arizona charter schools could close because of financial issues, report says
Following the abrupt closure of at least three Arizona charter schools over the past year, a new report concludes more than 100 of the state’s charters are in danger of closing because of excessive debt and other financial troubles.
It’s a “near certainty” that more than 50 of the state’s 544 charter schools will close in the near future, according to the report by the Grand Canyon Institute, a self-described centrist think tank.
As a whole, Arizona’s 544 charter schools owe more to creditors than they’re worth as businesses contracted with the state to educate kindergarten to 12th-grade students, the report states. “Like any business, an overleveraged charter is financially vulnerable and could fail if it then suffers an income loss,” the report states.