Statement of Christopher Siddall, Member of the Board of Governors, Meridian Public Charter School Hearing on Bill 19-577: Meridian

Public Charter School Harrison Campus Property Tax Exemptions Amendment Act of 2011 Committee on Finance and Revenue June 25, 2012

Good morning Chairman Evans and members of the Committee. My name is Christopher Siddall. I am a Member of the Board of Governors of Meridian Public Charter School (Meridian). Thank you for the opportunity this morning to express my strong support for Bill 19-577, the Meridian Public Charter School Harrison Campus Property Tax Exemptions Amendment Act of 2011. Since its inception, Meridian has dedicated itself to serving District children in the most challenging of circumstances. In most years, approximately 90% of our students are from households that are below the poverty line and eligible for free or reduced lunch. In August of 2012, Meridian plans to relocate to the former-DCPS Harrison School Building under a long-term Ground Lease with the District. Meridians program has outgrown its current facility and, upon moving into the Harrison School, will finally have space to accommodate our students. Our move into the Harrison School (large parts of which date to 1890) has required an outlay of more than $16,000,000 to renovate the property into a modern, fully functioning school. Meridian financed this renovation project through the New Markets Tax Credit (NMTC) program administered by the U. S. Treasury Department. The NMTC financing allowed Meridian to obtain financing terms that are far more favorable than what is found in a more conventional financing program. However, to comply with NMTC rules, Meridian had to form Meridian Harrison QALICB, Inc. (the QALICB) to be the borrower under the NMTC financing. At closing, Meridian assigned its interest in the Ground Lease to the QALICB, which then subleased the property back to Meridian. As such, Meridian will continue to control the Harrison School property and operate the charter school at the facility. I would like to note here that Meridian will not profit from the NMTC structure described above. The sole reason for the structure is to facilitate compliance with Treasurys NMTC program. As a 501(c)(3) organization and a public charter school, Meridian itself would be exempt from District of Columbia real estate, possessory interest, recordation, and transfer taxes with respect to the Harrison School. However, the QALICB a not-for-profit corporation, but not a 501(c)(3) organization or a public charter school is not exempt from such taxes. Therefore, before the NMTC financing closed last October, Meridian sought, and received, both emergency and temporary legislation exempting the QALICB from such taxes. Meridian now seeks permanent legislation with respect to these exemptions. The legislation before you today is critical to ensure that Meridian is treated 1

like any other D.C. Charter School for tax purposes. As indicated in the Fiscal Impact Statement issued by the District of Columbia Office of the Chief Financial Officer, this legislation is revenue neutral to the District. The Tax Abatement Financial Analysis, also performed by the Office of the Chief Financial Officer, concludes that Meridian does not have the ability to pay the taxes for which it is seeking an exemption. Therefore, but for the passage of the permanent legislation, Meridians financing of the Harrison School would be jeopardized and we would not be able to complete the renovation project. Without the legislation before you today, Meridians ability to continue to educate some of the most vulnerable children in the District of Columbia would be crippled. On behalf of Meridian Public Charter School, I urge you to support Bill 19-577. Thank you for time and attention to this matter. I am happy to answer any questions you may have.

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ADDENDUM Description of Meridian Public Charter School June 25, 2012 Meridian Public Charter School has advanced its mission to instill within its students a passion for learning and to build their self-confidence and self-respect through academic achievement. Our school has more than quintupled its number of students, from 87 in 1999 to 531 in 2012, as a testament to the communitys trust in Meridians vision, instructional quality, and passion for the children and families we serve in the greater U Street area and from across the District. Our school was started by a group of Washington, D.C. parents along with local business, policy, and social services professionals who believed that a public charter school could improve lives in the greater U Street area. We now meet the academic needs of children through eighth grade, with 94% attendance and 80% re-enrollment rates. Meridian has won, and continues to win, recognition for its educational program and management: 2010: Academic growth (measured by DC-CAS) was greater than that of any other elementary charter school in the District of Columbia. 2009-2010: Received a FOCUS Award for Closing the Achievement Gap. 2009: Named a TOP school in Washington, D.C. by Johns Hopkins University. 2007: Received a Steward Award for accurate and effective control over federally sponsored funds from D.C.s Monitoring and Compliance Division.

Meridian serves many children from families suffering from poverty. In most years, about 90% of our students fell below the poverty line and were eligible for free or reduced lunch. 62% percent of our students are African-American and one-third is Latino. 18% have special education needs and 38% receive special help because English is their second language. In the coming years, we will engage students from all socio-economic levels. Ward 1s Cluster 2 neighborhood where Meridian lies has a higher percentage of children than the District overall. With many low-performing schools closed or potentially closing in the neighborhood, Meridian has emerged as one of the only High Quality Performing Schools in the area. The fact that the largest group of residents in this area fall between the ages of 25 and 34 suggests that school-age children will be plentiful. Rapid addition of newly constructed housing stock only bolsters potential demand for our services in the community. Today, Meridian helps to anchor U Streets active community life. Through a partnership established in 2004 with Harrison Recreation Center, we host Meridians Annual Life and Family Festival, a collaborative event that emphasizes the importance of families and communities to the well-being of children. Meridian also hosts an International Night on the Tuesday evening before Thanksgiving, in collaboration with several embassies. Not satisfied with improvements to our building and community program, Meridian has secured a three-year grant to improve the quality of our instruction through national teacher recruitment and enhanced professional development. With these building blocks in place, Meridian will be in a strong position to serve the dynamic U Street area and the Districts families for many years.