Arkansas LEARNS Act Catalyzes Launch of $100M Heartland Facilities Fund

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Sep 30, 2024, 08:00 ET

Gov. Sanders signature education bill includes pathway to innovative, equitable financing for high-performing charter schools; follows similar efforts in Texas, Nevada

LITTLE ROCK, Ark., Sept. 30, 2024 /PRNewswire/ -- The Arkansas Department of Education has announced a new partnership with the Equitable Facilities Fund to launch and administer the Heartland Facilities Fund. The fund will provide a dedicated and perpetual facilities funding resource for high-performing public charter schools looking to open or expand in Arkansas and the surrounding region.

Arkansas Secretary of Education addresses attendees of at the Heartland Facilities Fund launch in Little Rock, Arkansas.

The fund's creation is part of Gov. Sarah Sander's signature education reform package, the Arkansas LEARNS Act, passed in March of 2023. A provision in the bill provided $10 million for the establishment of a revolving loan fund for public charter school facilities projects.

"As Governor, one of my guiding principles has been that the public, private, and nonprofit sectors should work together instead of against each other. The Heartland Facilities Fund combines the innovation of the market, the generosity of philanthropists, and the power of state government to deliver a better future for all," said Governor Sanders in video remarks to supporters of the fund at a launch event in Little Rock on Tuesday,

The Equitable Facilities Fund, a national philanthropy-backed impact fund, was selected to administer the Heartland Facilities Fund and will leverage the state's $10 million commitment with an additional $90 million in low-cost capital from philanthropy and institutional investors.

The $100 million Heartland Facilities Fund will address a critical educational shortfall for Arkansas students and families who want greater access to better educational options. It will support the addition of 7,500 seats over the next five years.

While public charter schools receive public, per-pupil funding, they often lack the financial resources to acquire suitable facilities for their students and staff. HFF levels this playing field, providing low-cost loans for schools to undertake their own facility projects and direct more money into the classroom.

"Parental empowerment serves as one of Governor Sanders' key priorities in the LEARNS Act," said Arkansas Department of Education Secretary Jacob Oliva. "Through the launch of the Heartland Facilities Fund, high-quality charter schools will now have additional, low-interest financial resources to purchase and renovate facilities. When we partner together to create opportunities to improve schools, students win."

Prior to the launch of the regional fund, EFF had previously supported the expansion of several public charter schools in Arkansas, including LISA Academy, eStem Public Charter Schools, and Friendship Public Charter Schools. With the launch of the Heartland Facilities Fund, the hope is that more high-performing national charter networks will choose to create high-performing schools in Arkansas.

"EFF has been an invaluable resource for us, helping us secure multiple buildings to create an enriching learning environment for our students," said Phong Tran, Southern Region Superintendent for Friendship. "Their support ensures our scholars receive the high-quality education they deserve. This partnership has been instrumental in making Friendship Aspire STEM Academy the #1 performing elementary charter school in Arkansas and Jefferson counties. Together, we've been able to continue offering high-quality education across all our schools."

The creation of the Heartland Facilities Fund has also been galvanized by $5.5 million in local philanthropy from 16 funders, including the Stephens family, Tabietha and Bill Dillard, III, and Angeline and Kyle Derham. Every dollar invested with the Equitable Facilities Fund is matched up to 6 times and recycles as schools grow, resulting in multiple generations of catalytic impact capital.

"Tabietha and I are so happy to join with EFF to provide low-cost facilities funding for high-potential charter schools in Arkansas and surrounding areas," said Bill Dillard. "As the educational landscape evolves, our kids need more high-quality options. Having access to capital is critical for the process to yield the kind of results we're all hoping for."

A unique source of education financing in the Heartland, the model builds on EFF's national, philanthropy-backed loan fund, which has deployed over $1.4 billion in low-cost capital to high-quality public charter schools serving more than 100,000 students in 23 states since 2018.

EFF's regional facilities fund model is an expansion of its national mission to remove the barriers that prevent students and families from accessing a high-quality education, pairing the strength of its national lending platform with the dedication and expertise of local funders, advocates, and policymakers.

"With the launch of the Heartland Facilities Fund, Governor Sanders and our local partner funders are at the forefront of a national movement utilizing public-private-philanthropic partnerships to overcome a stubborn challenge," said EFF CEO Anand Kesavan. "Regional facilities funds are an innovative, proven vehicle to sidestep the traditional barriers to charter school growth, and one that we are proud to continue supporting across the country in service of great schools."

Arkansas joins Texas and Nevada as the third state to launch a regional EFF fund since 2022. Plans are underway to launch additional funds to support high-performing charter schools in reform-oriented states.

About Equitable Facilities Fund:

Equitable Facilities Fund is a 501(c)(3) nonprofit social impact fund created to provide low-cost facility loans that allow high-performing public charter schools to maximize the resources they dedicate to students. High-quality public charter schools promote bright futures for children across America, and EFF believes these schools should borrow under terms comparable to traditional public school districts. EFF administers an 'A' rated revolving loan fund, which recapitalizes using funds from Equitable School Revolving Fund's bond issuances to offer high-credit, long-term, scalable bond investment opportunities. To date, EFF has deployed over $1B of low-cost capital to help scale access to high-performing public schools for more than 100,000 students in low-income communities. To learn more, visit www.eqfund.org or email [email protected].

SOURCE Equitable Facilities Fund