Case Study: Idaho’s Facility Ecosystem – How Bluum Built a Scalable Model for Charter School Facilities

Introduction

For charter schools nationwide, facilities remain one of the greatest barriers to growth. Schools must navigate complex real estate markets, financing hurdles, and political dynamics—often without the local tax dollars that support district facilities. The Facility Ecosystem framework argues that the solution lies in building interconnected systems across five domains: school readiness, communities of practice, financing solutions, real estate development solutions, and policy

Idaho offers one of the strongest examples of this approach in action. Despite ranking near the bottom in per-pupil funding, Idaho—through the leadership of Bluum, philanthropic partners, and state policymakers—has created a three-stage financing ecosystem that enables charter schools to open, build, and sustain affordable facilities. This case study documents how Idaho did it, what results have been achieved, and how the work aligns with the Facility Ecosystem framework.

Idaho’s Starting Point: A Funding Desert

Idaho charter schools operate with no local tax dollars for facilities. Unlike districts that can float bonds or levy local taxes, charters must rely solely on state allocations (about $380 per student annually) and philanthropy

Left to the private market, charter facility financing often costs 10% interest or more—leaving schools with little left for teachers and programs

Recognizing this barrier, the JA & Kathryn Albertson Family Foundation launched a 10-year initiative to create 20,000 new charter seats. Facilities quickly emerged as the core challenge. Bluum, with Building Hope and state partners, designed a new ecosystem to address each stage of a school’s facility journey.

Idaho’s Three-Stage Facility Ecosystem

Stage 1: Predevelopment

• The Challenge: New schools lack revenue or a financial track record, making them ineligible for traditional loans.
• Solution: Bluum secured a $3.5M federal Credit Enhancement grant. Using these funds, Bluum backs predevelopment loans (up to $700,000 per school) at 3% interest through a banking partner. Loans cover zoning, design, and due diligence. Schools also receive a leader fellowship for budgeting and academic preparation, building lender confidence
• Impact: Seven schools have successfully used this tool, with zero defaults to date

Stage 2: Build and Launch

• The Challenge: Schools must construct or renovate facilities while enrollment is still ramping up, creating debt service risks.
• Solution:
  • The JKAF Revolving Loan Fund managed by Building Hope ($33.6M, launched in 2014) provides 35% of construction costs at 3% interest, subordinate to senior lenders.
  • In 2023, the Idaho State Revolving Loan Fund added $50M, offering up to $2.5M per school at 0.5% interest.
  • Together, these create a “three-tiered debt stack” with blended rates of 4.2% compared to 7.5% in the bond market.
• Impact: 26 schools financed facilities through JKAF with zero defaults. A typical $16M project saves $838,000 annually, freeing $3.3M over four years for teachers and programming

Stage 3: Long-Term Financing

• The Challenge: Historically, Idaho charters could only access bonds with high interest rates, limiting program dollars.
• Solution: In 2019, Idaho enacted a Charter Facility Credit Enhancement Program (a Moral Obligation Bond Program), allowing qualifying schools to refinance under the state’s AAA credit rating. This reduces rates by ~200 basis points. The program is capped at $750 million.
• Safeguards: Only high-performing schools (clean audits, 90 days’ cash, strong academics) qualify, and a $40M reserve fund balance protects the state’s credit rating
• Impact: 17 schools have refinanced with no defaults, saving ~$780,000 annually on a $16M project—over $27M across 35 years

How Idaho’s Model Aligns with the Facility Ecosystem Framework

The following table crosswalks Idaho’s tools with the five-bucket framework:

Educational and Community Impact

• More Teachers, Better Pay: Savings equate to hiring ~10 extra teachers per school
• Career-Tech Expansion: Elevate Academy built dual facilities (academic + workshops) to serve at-risk students
• Community Support: Mayors back charters because facilities are built without local taxpayer funds
• Equity Gains: Schools can compete with better-funded districts for talent and curriculum.

Lessons for Other States

1. Sequence Tools Over Time – Idaho built its ecosystem gradually: philanthropy first, then federal grants, then state programs.
2. Align with Local Politics – Conservative lawmakers embraced tools that lowered costs without raising taxes.
3. Set High Standards – Eligibility criteria ensure only strong schools participate, protecting both the ecosystem and the state.
4. Adapt, Don’t Copy – Idaho borrowed ideas from Colorado and Utah, then tailored them to its low-funding context

Conclusion

Idaho’s facility ecosystem demonstrates how even resource-constrained states can enable sustainable charter school growth. By addressing each stage of the facility lifecycle and aligning financing, real estate, and policy, Bluum and its partners created nearly 20,000 new seats in 10 years. The model’s success lies not in a single program but in building a full ecosystem—proof that the Facility Ecosystem framework can be realized in practice.

To learn more about Idaho’s Facility Ecosystem, review Bluum’s slide deck

https://fredcharter.org/wp-content/uploads/2025/09/ID-Facility-Ecosystem-Slides-6.23.25-Read-Only.pdf

or listen to Excel in Ed’s September 2025 podcast with Bluum’s Terry Ryan.