While private and charter schools are dealing with similar virus-related expenses as public district schools, charter and private schools have access to relief funds, like Paycheck Protection Program loans, that aren’t available to districts.
Tucson-area private and charter schools have collected millions in federal coronavirus relief loans not available to public district schools despite the fact that a number of them also qualified for emergency stimulus funding.
The Paycheck Protection Program loans, meant to help small businesses avoid layoffs during the COVID-19 crisis, don’t have to be paid back as long as the funds are used for payroll costs, interest on mortgages, rent and utilities, according to the U.S. Small Business Administration.
However, charter schools don’t have the level of financial impact that many small businesses do because they continued to receive taxpayer funding throughout the crisis, said Dave Wells, research director with the Grand Canyon Institute, a nonpartisan think tank.
“Since the schools were already held financially harmless, they weren’t really in a position where they expected they were going to lay off people anyway,” Wells said.
He said for this reason it’s questionable that some of the charter schools applied for the loans, and the same goes for the private schools, many of which receive tuition scholarship dollars and other public subsidies.
The publicly released data only provides broad ranges for the loans of $150,000 and above.
The Star identified 32 private and charter schools or corporate headquarters in Tucson that received between $12 million and $30 million collectively.
Comparatively, Pima County’s nine major school districts, which serve about 115,000 students, were awarded nearly $31 million in funds from the Coronavirus Aid, Relief and Economic Security Act.
Multiple funding streams
At least 12 Tucson charter schools or charter holders received both the small-business loans and coronavirus relief funding.
The Academy of Math and Science charter school received more in loans for small businesses than any other Tucson school — between $3.35 million and $8 million for three loans awarded to its corporate entity and nonprofit schools.
Academy co-founder and CEO Tatyana Chayka, with her son Kim Chayka, represent four charter holders running two schools in Tucson and 15 throughout the state. They received a collective $2.75 million in emergency federal funds, delivered to states through the CARES Act and allocated to schools based on their percentage of low-income students.
The Arizona State Board for Charter Schools found the Academy of Math and Science in Tucson as being in healthy financial standing in 2019 across a swath of categories, including revenue exceeding expenses, reserves and growth in enrollment.
Chayka’s other Tucson charter holder, Math and Science Success Academy, Inc., had some financial problems, including revenue shortfalls and an inability to cover debt costs.
The Charter Board rated both schools as exceeding standards academically.
The Academy of Math and Science did not respond to the Star’s request for comment.
The other Tucson charter holder that received several PPP loans and CARES Act funding runs La Paloma Academy, with three Tucson locations.
The charter holder, Arizona Community Development Corporation, received a PPP loan of between $1 million to $2 million. The owner, Raena Janes, also owns Liberty Traditional Charter Schools, which has its corporate headquarters in Tucson and schools in Phoenix, Douglas and Williams, and received two loans that total between $700,000 and $2 million.
Janes' charters also received $1.25 million from the CARES Act.
The Arizona State Board for Charter Schools rated Tucson’s three La Paloma Academy schools as being in healthy financial standing in 2019 across all categories.
But the board rated the academic performance of all three schools as either not meeting or falling far below academic standards.
The PPP loans will be used to maintain employee payroll, said Liberty Traditional Chief Operating Officer Billy Rubasch.
He said without the funding they would have had to lay off all hourly employees due to having to allocate money for COVID-19-related expenses such as computers for students, cleaning supplies and preparing to return to school.
Other Tucson charter schools that received both PPP loans and stimulus funding include Leman Academy; Academy Del Sol, Inc.; Science Technology Engineering and Math; Pima Prevention Partnership Inc.; Tucson International Academy, Inc.; Southgate Academy, Inc.; and Tucson Youth Development, Inc.
Questionable Financial need
In general, charter schools have a lower percentage of low-income students who qualify for federal funds. They also have lower costs for services to students with special needs.
Across the state, 12.1% of district school expenditures, on average, went to special education compared with 5.27% of charter school expenditures, according to Curt Cardine, a research associate with the Grand Canyon Institute.
Cardine did a statewide analysis of schools that received the PPP loans and said some have a ton of investments, cash in the bank and distributions — a company’s payment to its shareholders.
The loans were not an option for school districts, but CARES Act funding is available to school districts, charters and private schools, based on the number of low-income students served.
Another round of $270 million in CARES Act funding will be distributed to public schools and will ensure they receive at least 98% of prior-year funding despite any drops in enrollment caused by the coronavirus as long as they offer a full school year of in-person instruction to any student who needs a place to go during the day.
School districts are planning to offer a mix of online and in-person instruction, with many beginning remotely prior to Gov. Doug Ducey’s tentative opening date of Aug. 17.
Private school payments
The Star identified 13 nonprofit private schools in Pima County that received the small-business loans and may also be eligible to receive a portion of CARES Act funding.
Those stimulus funds have already been allocated to school districts, which are expected to distribute the money to the private schools within their boundaries.
Schools include St. Augustine Catholic High School and Desert Christian Schools, which both received between $350,000 and $1 million in PPP loans, and Salpointe Catholic High School, which received between $1 million and $2 million.
Salpointe will use the loan money to preserve employees’ paychecks and avoid layoffs, as well as to pay utilities, said the private school’s Chief Financial Officer Ernie Duarte.
The school had to reallocate money to coronavirus-related expenses to provide education remotely, make physical improvements to air conditioning systems and install plexiglass dividers for public areas.
Of Salpointe’s student body, more than 50% qualify for free or reduced lunch, Duarte said.
The school charges annual tuition of $10,150. Duarte said many students’ tuition is covered by scholarships through personal income tax credit programs and student tuition organizations.
TUSD will allocate almost $70,000 to Salpointe because 173 students from low-income families live within TUSD boundaries and attend the catholic school.
Private schools may get more
TUSD estimates that it will need to distribute $782,000 overall to private schools, following state guidance. But due to uncertainty around a new federal ruling, the district is setting aside $1.6 million for private schools.
The rule from Department of Education Secretary Betsy DeVos would have school districts distribute the money to private schools based on total student enrollment rather than only low-income students.
TUSD, with more than 44,000 students, received nearly $18.6 million in CARES Act funding.
To put the private school allocation into perspective, TUSD would need about $1.5 million to provide one face covering a week to its entire student body, said Jon Lansa, TUSD’s director of Title 1 grants and federal programs.
“It’s $1.5 million just to make sure we’ve got our kids protected and safe,” Lansa said. “So when we’re pushing out $800,000-plus to the privates all the way up to $1.5 million, basically we’re giving away our face coverings for a whole year.”
Other private schools receiving PPP loans of $150,000 or more included Pusch Ridge Christian Academy (between $350,000 and $1 million); San Miguel High School (between $350,000 and $1 million); St. Augustine Catholic High School (between $350,000 and $1 million); St. Michael’s School (between $350,000 and $1 million); The Gregory School (between $350,000 and $1 million); Ascension Lutheran Church and School (between $150,000 and $350,000); Tucson Hebrew Academy, Inc. (between $150,000 and $350,000); Tucson International School, Inc. (between $150,000 and $350,000); Tucson Waldorf Education Association (between $150,000 and $350,000) and Castlehill Country Day School Private Elementary School (between $150,000 and $350,000).
Tucson gets by during Coronavirus Pandemic
Tucson gets by during coronavirus pandemic
The iconic Casa Molina bull and matador statue both sport masks on the first full week of the loosening of COVID19 restrictions, May 23, 2020, Tucson, Ariz. The bull previously had a mask on the testicles.
Tucson gets by during coronavirus pandemic
Michelle Leon Cordova, right, mother, and her son Sahuarita High School senior Lino Cordova, whom is fighting cancer, wave at staff members from Diamonds Children Center, friends and the Marana Police Department during a car parade, celebrating Lino's graduation, outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
Tucson gets by during coronavirus pandemic
Michelle Leon Cordova, right, mother, brings celebration balloons to a car after staff members from Diamonds Children Center, friends and the Marana Police Department celebrate Sahuarita High School senior Lino Cordova, whom is fighting cancer, graduation with a car parade outside of his home on May 13, 2020 in Sahuarita, Ariz. Cordova stood on the sidewalk while the team from Diamond Children Center, friends and the Marana police department gave Cordova a graduation gar parade. Cordova was given a gift basket with his favorite snacks, gift cards as well as other items he enjoys. The car parade, also, celebrated another graduating senior fighting cancer from Empire High School, Noah Nieto. Nieto, also, received a gift basket with snacks, gift cards and other items Lino enjoys.
Tucson gets by during coronavirus pandemic
Personnel from Tucson Medical Center line the heliport to watch A-10's from Davis-Monthan Air Force Base's 355th Wing and F-16's from the Arizona Air National Guard's 162nd Wing make a pass over the facility, one leg of an area wide community flyover, May 14, 2020, Tucson, Ariz.
Tucson gets by during coronavirus pandemic
Nancy Celix-Campos, right, a respitory therapist at Tucson Medical Center, watches the military flyover with her daughters, Giana, 12, and Jazmyn, 8, from Sentinel Peak on May 14, 2020. Two F-16 Fighting Falcons from Arizona Air National GuardÕs 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over Tucson area hospitals to honor healthcare personnel and first responders as they are some of the frontline workers dealing with the coronavirus disease (COVID-19) head on. "It's been an exhausting two to three months," says Campos, "it's pretty cool, I like how they're going by each hospital."
Tucson gets by during coronavirus pandemic
Two F-16 Fighting Falcons from Arizona Air National Guard’s 162nd Wing and two A-10 Thunderbolt II's from the 355th Wing, assigned to Davis-Monthan Air Force Base, fly over Northwest Medical Center north of Tucson on May 14, 2020.
Tucson gets by during coronavirus pandemic
A letter carrier portrait on the Ok Market building, located in the Armory Park neighborhood, is adorned with a face mask on May 18, 2020.
Tucson gets by during coronavirus pandemic
Rosemary Garcia waits for a family member outside of a store at Park Place Mall, 5870 E. Broadway Blvd., in Tucson, Ariz. on May 19, 2020. Malls reopened today under CDC guidelines and Gov. Ducey's new rules for businesses due to the Coronavirus pandemic. Park Place Mall has signs throughout the mall reminding customers to keep a six feet distance as well as hand sanitizer stations near each entrance. About half of the tables in the food court have been removed to allow for social distances as well as less than half of the stores have opened with new guidelines. Of the stores open, only 10 customers are allowed to shop in each store at a time.
Tucson gets by during coronavirus pandemic
Pat Schlote steams clothing before it is put on the sales floor at the Golden Goose Thrift Shop in Catalina, Ariz., on May 21, 2020.
Tucson gets by during coronavirus pandemic
Ada Contreras, teaching assistant, looks through containers while reorganizing toys at Herencia Guadalupana Lab School, 6740 S. in Tucson, Ariz. on May 21, 2020. As Child care centers begin to re-open when they are ready, Herencia Guadalupana Lab School is reorganizing and cleaning everything in the facility before re-opening on June 2. To allow for social distancing and decrease the amount of items children touch, Herencia Guadalupana Lab School has sheds where items will go as well as placing items in containers organized by category.
Tucson gets by during coronavirus pandemic
Jen Martinez, right, softball coach, teaches Skylar Reilly about hitting during a session at Centerfield Baseball Academy, 5120 S. Julian Dr., in Tucson, Ariz. on May 21, 2020. After re-opening on Monday, Centerfield Baseball Academy has implemented new policies in response to the Coronavirus Pandemic such as wearing masks, cleaning, signage, hand sanitizer and limiting the amount of people inside the facility.
Tucson gets by during coronavirus pandemic
Karl Bosma, left, and George Cantua, with facilities and maintenance, lay down stickers to mark six-foot separation distance around one of the baggage carousels, part of the efforts at Tucson International Airport to work within the restrictions of COVID19, May 22, 2020, Tucson, Ariz.
Tucson gets by during coronavirus pandemic
A lone passenger waits for a flight near one of the shuttered restaurants in the B Gates before Memorial Day at Tucson International Airport on May 22, 2020.
Tucson gets by during coronavirus pandemic
Drew Cooper on the stage in the St. Philip's Plaza courtyard, May 22, 2020, Tucson, Ariz., where live music is back on the schedule.
Tucson gets by during coronavirus pandemic
Many people visit Tumamoc Hill during the first day of Tumamoc's re-opening in Tucson, Ariz. on May 25, 2020. After being closed due to the Coronavirus pandemic, Tumamoc Hill re-opened with some modifications. There are hand sanitizer stations throughout the hike to the top as well as arrows, spaced 10-ft apart, lined up and down the hill. Some runners, hikers and walkers are also wearing masks during their hike. "The steps we are taking aim to provide our community with needed exercise, connection to our beautiful desert and a sense of comfort in such a trying time, while balancing the fact that gathering as a community endangers each of us and our loved ones. This is an unprecedented challenge that we are taking extremely seriously," said Benjamin T. Wilder, director of Tumamoc Hill. Visitors are also asked to limit their group to three people and to not touch the gate at the top of the hill- a tradition for some who make it to the top. "This is a time when we need to establish new traditions and adapt in a creative manner that embraces empathy, unity, care and patience," Wilder said.
Tucson gets by during coronavirus pandemic
Pen Macias, artist, works on part 2 of a mural for a client on E. Broadway Rd., between S. Columbus Blvd. and S. Alvernon Way, in Tucson, Ariz. on May 25, 2020. Macias, known as The Desert Pen, has been working on her clients mural for the past three months. "It's the one thing I love, I have a passion for and the only thing I could be happy doing," said Macias. The mural represents her client, a single mother of four who works in the health care field. One half of the mural is dedicated to the connection between mothers and their children. The other half is dedicated to the connection between nurses and patients. The client wanted some positivity in the mural to show how nurses give a piece of themselves to their patients hence the puzzle pieces in the nurse and the patients, said Macias.
Tucson gets by during coronavirus pandemic
Christina Cortinas, posing at her home, May 28, 2020, Tucson, Ariz., with a photo of her and her mother, Catherine Rodriguez, in San Diego, 1991. Rodriguez is currently in assisted living and fighting COVID19. Cortinas hasn't seen her mother in months, the longest such span in her life.
Tucson gets by during coronavirus pandemic
Ruben Lopez looks through handouts while attending a Eviction Resource Fair with his family outside the Pima County Justice Court.
Contact reporter Danyelle Khmara at dkhmara@tucson.com or 573-4223. On Twitter: @DanyelleKhmara
Danyelle Khmara
Reporter
Danyelle joined the Star in 2018 and covers K-12 education. Previously, Danyelle wrote for the Tucson Weekly where she won several statewide awards including story of the year and first place investigative reporting.
