A LISC partnership in Houston helps charter schools fill the need for high-quality education in underserved neighborhoods through a smart bond program.
For nearly 15 years, LISC has been financing school facilities in innovative ways to help meet the educational needs of low-income students. In Houston, LISC partnered with the Bill & Melinda Gates Foundation and KIPP Houston to improve charter school access to the tax-exempt bond market. The Foundation provided a $30 million guarantee, matched by participating charter schools and LISC to secure $300 million in bond financing to expand the number of high-quality public charter schools in Houston. Last month, Fitch Ratings re-rated the education revenue bonds, calling their outlook "stable."
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Proceeds from the bonds have been used to build or expand 14 schools on KIPP campuses. As a result, KIPP Houston is meeting the surging demand for its academic program and now serves nearly 11,500 students. Fifty-four percent of KIPP graduates complete college, versus 6 percent of low-income students nationally. Over the next decade, the program will enable KIPP Houston to grow its network to 42 public schools serving 21,000 students.
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Read "Fitch Affirms KIPP, Inc.'s (TX) 2009 Revs at 'BB+'; Outlook Stable,"Business Wire, February 18, 2015.