Recently, the John Locke Foundation hosted an event to discuss expanding educational options for K–12 students in light of the findings in its latest education report, “Room to Grow.” The report finds that the vast majority (92 percent) of private school leaders surveyed expect demand for their services to grow and that many plan to expand their capacity over the next few years. A variety of challenges restrict schools’ growth or prevent new ones from opening, however. These include dealing with zoning or building regulations, lacking funding, and navigating the regulations associated with school choice programs.
The event highlighted how these challenges impact not only microschools but also larger private schools across North Carolina and laid the groundwork for reforms to address them.
Big and small schools alike face expensive, time-consuming regulatory burdens
Renee Griffith, director of PEFNC’s EduBuilder initiative and founder of Cornerstone Christian Academy, shared how her school’s expansion project faced several regulatory challenges that delayed the project and drove up costs.
For one thing, the school had to get approval from a technical review committee. Each question from the committee set the project back about another month while school leaders worked to address the comments and present before the committee. The school was also required to have an environmental engineer decide whether an area at the bottom of a hill should be classified as a “ditch” or a “creek.” Because of the area’s classification as an “intermittent creek,” the building had to be moved several feet away. Additionally, the school was initially told that it needed to become a private utility if it wanted to connect the new building to the school’s existing sewage system. These and other regulatory hurdles ultimately delayed expansion for a year and caused the project to go over budget.
Dominque Burgess, education fellow at the John Locke Foundation and founder of Burbrella Learning Academy, discussed the challenges she and her microschool faced after purchasing a new building, which was located in an area affected by three separate city and county jurisdictions. She recalled navigating communication challenges, as well as conflicting determinations from fire and building inspectors. Ultimately, Burgess spearheaded efforts that convinced the town of Gibsonville to change its local zoning ordinances to address the unique circumstances of microschools. The change will clarify zoning ordinances affecting microschools and make it easier for them to operate in certain commercial districts.
Lack of funding can also limit schools’ expansion efforts
Finding adequate funding is another persistent challenge identified by current and prospective private school leaders seeking to start or grow educational programs. According to Locke’s “Room to Grow” report, 67 percent of private school leaders said that lack of funding was a minor or moderate reason why they did not currently have plans to expand. Many education entrepreneurs — people looking to start schools in North Carolina — also reported having difficulty getting enough funding. Twenty-one entrepreneurs said this was a major barrier to their projects, while 13 identified it as a moderate barrier, and one said it was a minor barrier. Only two entrepreneurs did not mention this as a barrier.
Sherman Whites shared how groups like The Drexel Fund work to connect current and prospective school leaders with funding for their expansion projects. The organization offers not only seed funding but also assistance in launching new schools. Incentivizing private donations via tax credits could be another way to supplement other revenue sources.
Navigating school choice program regulations can be challenging
In Locke’s “Room to Grow” report, 15 entrepreneurs said that navigating regulations associated with North Carolina’s school choice programs, the Opportunity Scholarship (OSP) and ESA+ programs, was a regulatory constraint they had encountered. If students participating in these programs want to use their scholarships but funding is delayed for administrative reasons, schools can struggle not only to pay teachers but also to provide services for their students.
Kathryn Marker, director of K–12 scholarship programs at the North Carolina State Education Assistance Authority (NCSEAA), described some ways in which schools can prepare to enroll OSP or ESA+ students: find a school network to confer with other schools experienced in how the programs are administered, build administrative capacity to manage operations, and plan for program compliance.
As a state agency, NCSEAA is tasked with administering the OSP and ESA+ programs but must work within the confines of how those programs are legally structured. Since the agency can act only within the laws’ parameters, some problems arising during program administration can be fixed only with changes to state law.
