Over the past decade, areas in southern Dallas and Ellis counties have seen significant population growth. As populations swell, cities recognize the need to build new schools to serve the families who live there. To address the urgent need without adding to the local tax burden, cities often welcome public charter schools.
Unlike traditional public school districts who raise funds for new construction by issuing debt that is repaid from property taxes; public charter schools find alternative funding.
In 2014, Life School was the first charter school in the state of Texas (the “State”) to access guaranteed bonds through the Permanent School Fund. The Permanent School Fund (the “PSF”) supports public education by providing a stable funding source for public education across the State.
The PSF itself does not directly issue loans or bonds to schools; however, it plays a crucial role in the broader financing framework by providing a guarantee for bonds issued by participating local school districts, as well as for bonds of qualified participating charter districts.
In simple terms – participation with the PSF allows public schools and qualified charter schools to issue bonds by providing a guarantee on the bonds that makes them more attractive to institutional investors, banks, financial institutions, and individual investors (retail investors).
In September, Life School again participated with the PSF and issued bonds in the public market. Thanks to its investment-grade financial rating and recent approval from the Texas Education Agency to construct a new high school in Duncanville, Life School successfully sold $113 million in bonds that have a 28-year amortization and a true interest cost of 4.37% toward the construction of the high school at East Danieldale and South Cockrell Hill Roads. Thanks to significant investor interest, the bonds were seven times oversubscribed.
On October 16, 2024, Life School announced that the new school in Duncanville was officially fully funded. “This is good news for citizens of Duncanville and the Best Southwest area who will soon be on track for a new high school,” said Chief Financial Officer Megan Beck.
Investing in education not only benefits students, but also enhances the overall community. New schools have the potential to stimulate local economies, attract further investment in the area, and increase property values.
Research from the Federal Reserve Bank of Dallas has shown a consistent increase in home values near well-rated schools, as families prioritize access to quality education. Schools with good reputations were found to add significant value to nearby homes.1
This trend is also reflected in reports from the Texas Real Estate Research Center (Texas A&M University)2, which indicate that homes near schools with good ratings in Texas tend to have higher values. Buyers often pay premiums for proximity to high-quality schools, as these schools are associated with better community stability and desirability.
A study from the National Bureau of Economic Research3 also cited by the National Association of Realtors found that home values increased by $20 for every $1 spent on public schools in various regions, including Texas.
The new Life School helps fulfill goals established by the City of Duncanville in their 2017 comprehensive master plan. As they identified a need for beautification, new business, and the establishment of opportunity zones; they also identified a desire for quality schools in a family-oriented environment.
Dr. Brent Wilson, Superintendent of Life School, is excited about the opportunity to serve families in Duncanville and neighboring cities. “We are proud to join the city of champions. We know Duncanville residents take great pride in their city, and we look forward to partnering together to help students reach their dreams and full potential.”
Dr. Wilson continued, “We look forward to opening our doors to you, your friends, and your family. We invite everyone to follow along with our project at lifeschool.net/duncanville.”
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Life School is a tuition-free, public charter school with campuses in Carrollton, Cedar Hill, Lancaster, Mountain Creek, Red Oak, Oak Cliff and Waxahachie, TX. Life School develops leaders with life skills through strong academics, character training, and partnerships with parents and the community. Its mission is accomplished in part through the financial support of donors who provide scholarships and embrace making students ready to learn, ready to lead and ready for life.
Parents who are interested in enrollment can visit lifeschool.net/learn-about-life. Partners who would like to support Life School financially can give online at lifeschool.net/give.
1 Dallas Federal Reserve Research: https://www.dallasfed.org/
2 Texas Real Estate Research Center: https://trerc.tamu.edu/
3 National Bureau of Economic Research: https://www.nber.org/
