Value Schools has adapted a model that research has demonstrated is highly effective in educating low income and minority students. This approach is charaterized by an environment that combines a strong academic program within a small school setting, by a decentralized structure that can respond to the particular needs of students and their families, by the development of responsible behavior and by an underlying inspirational ideology that promotes the vision of the school.
The schools that developed this model are faith-based schools, particularly Catholic schools. Dr. Anthony Bryk and others described their findings in study, Catholic Schools and the Common Good (1993). Based on research originally done by Dr. James Coleman, Bryk confirmed the importance of shared beliefs and values. A compelling ideology motivates students to see the importance of succeeding in school in the context of a broader vision. School becomes, not just something to been endured here and now, but the means to future achievements.
Value Schools adapting this model by removing the faith-based ideology and replacing it with a secular one. The Value Schools’ underlying vision is expressed in its five core values.
The financial plan for Value Schools is founded on the principle of sustainability. A fully operational charter school can, under this plan, provide a quality education using only the public funds that are available. This has proven to be the case with Downtown Value School, which became fully enrolled in its fifth year of operations. However, as Value Schools has learned in developing its first two charter schools, until the school is fully enrolled, supplementary funds are needed for startup and for facility preparations.
Value Schools has found that it is not feasible to plan for a school to be fully enrolled on its first day of operation. The school grows its enrollment over time. This presents a funding dilemma, because public funding is directly tied to the number of students enrolled at the school. With smaller enrollments during the start up phase resulting in less public funds, the fixed costs incurred regardless of school enrollment must be supported with supplementary funds. In its first three to four years the school requires financial support beyond the public funds to offer a quality program. To address this situation, Value Schools raised funds from charitable sources and “loaned” these funds to its schools. These are no interest loans to be repaid when the school has the financial resources. By the end of its fourth year of operation Downtown Value School had repaid its “loan” for startup.
Additionally, there is very little public funding available for initial facilities expenses. Beyond rent expense, Value Schools has learned that it costs approximately $90 per square foot to retrofit an existing building to meet the building code for schools. A typical size for a Value Schools’ building is 25-30,000 square feet. That translates into an up-front cost of approximately $2.5 million. While Value Schools has found with the success of Downtown Values, its schools can pay over time some or all the cost of facilities preparation, it does not have the wherewithal to borrow that amount of money in its early years. As with startup costs, Value Schools raised funds from charitable sources and gave funds to its schools with “loans” similar to those for start-up costs.
As Value Schools grows and its schools mature, the schools will repay the funds used for startup and facilities preparation. In the short term Value Schools is seeking philanthropic funding to enable to creation of new schools.