As the debate over school choice continues to divide Florida educators, 10 Investigates found new ways charter schools companies are profiting off education.
Charter schools are tuition-free public schools that are authorized by – but not operated by – each school district. For each student who "chooses" a charter, his or her school gets state dollars that would have otherwise gone to the school district.
Charter Schools USA (CUSA) has been operating charter schools in Florida for 20 years, including recently-opened schools in Hillsborough County: Woodmont Charter, Winthrop Charter, and Henderson Hammock Charter. Although charter schools sometimes struggle financially at first, CUSA eventually collects a 5% management fee from each to provide administration and guidance.
But 10 Investigates found a much bigger pot of money CUSA has been able to tap into: rent. When the company helps open a new school, its development arm, Red Apple Development, acquires land and constructs a school. Then, CUSA charges the school high rent.
via Charter School Profits Grow for Investors Through Real Estate Deals.