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Ocbtober 10, 2011

MODERNIZING SCHOOLS IN AMERICA WILL GENERATE JOBS

 

Rebuild America’s Schools is working for federal support for local efforts to build, renovate and modernize America’s Schools. Support is building in Congress to modernize schools enabling students to achieve and succeed in the 21st Century global economy. Modernizing schools creates jobs.

 

Led by President Obama’s American Jobs Act S. 1600 and H.R. 12 introduced by Senator Reid (D-NV) and Congressman Larson (D-CT) school modernization bills include:

 

·          The Rebuilding America’s Schools Act H.R. 2394, S. 796

·          Fix America’s Schools Today or FAST, H.R.2948, S. 1587

·          Emergency Jobs to Restore the American Dream Act, H.R. 2914  

 

The goal of all of all these bills is: Modernizing, renovating and repairing schools and generating American jobs. 

 

The American Jobs Act: S. 1600, H.R. 12 Modernizing Over 35,000 Schools – From Science Labs and Internet-Ready Classrooms to Renovated Facilities: The President is proposing a $25 billion investment in school infrastructure that will modernize at least 35,000 public schools – investments that will create jobs, while improving classrooms and upgrading our schools to meet 21st century needs. This includes a priority for rural schools and dedicated funding for Bureau of Indian Education funded schools. Funds could be used for a range of emergency repair and renovation projects, greening and energy efficiency upgrades, asbestos abatement and removal, and modernization efforts to build new science and computer labs and to upgrade technology in our schools. The President is also proposing a $5 billion investment in modernizing community colleges (including tribal colleges), bolstering their infrastructure in this time of need while ensuring their ability to serve future generations of students and communities. The range of critical repairs and needed construction projects would put hundreds of thousands of Americans – construction workers, engineers, maintenance staff, boiler repairman, and electrical workers – back to work.

 

 

The American Jobs Act will be debated in the Senate this week.  Please contact your Senators to express your support for the American Jobs Act and modernizing your schools.

 

 

The Rebuilding America’s Schools Act, H.R. 2394 (Rangel-NY) and S. 796 (Rockefeller-WV) will extend Qualified School Construction Bond, (QSCB) and Qualified Zone Academy Bond (QZAB) programs to continue important financial support QSCBS and QZABs are currently giving school districts to build, renovate and modernize schools across America.

 

Qualified School Construction Bonds:  Jobs are being created as School construction projects continue across the country with support from Qualified School Construction Bonds. Qualified School Construction Bonds (QSCBs) financed $6.8 billion to modernize schools in 2010 and are financing $2.1 billion in school construction projects to build and renovate schools and generating JOBs in 2011. States using QSCBs in 2011 are: California, Ohio, Michigan, New York, Kentucky, Wisconsin, Oregon, Massachusetts Pennsylvania and Texas. These 2011 QSCBs are from 2009 and 2010 allocations. Extending the Qualified School Construction Bond program will continue to modernize schools in states such as Montana, Florida, Virginia, Arizona, Missouri, Utah, North Carolina, Maine, Vermont, South Carolina, Illinois and every state needing modern schools.   

 

Fix America’s Schools Today or FAST, S. 1587 sponsored by Senator Brown (D-OH) , H.R. 2948 sponsored by Congresswoman DeLauro (D-CT).  Funded through existing Title I formulas, school districts would be required to use federal funds for deferred maintenance, repairs and component or system replacements to existing facilities or to supplement their current maintenance and repair efforts so that public school buildings and grounds are operated in a healthy and efficient manner.  The FAST proposal offsets its initial cost over 10 years by ending tax breaks for fossil fuels. 

 

Emergency Jobs to Restore the American Dream Act  sponsored by Rep. Schakowsky (D-IL), a cost-effective plan to put over 2 million people to work for two years.  A key piece of Congresswoman Schakowsky’s bill is: The School Improvement Corps to create 400,000 construction and 250,000 maintenance jobs by funding positions created by public school districts to undertake school rehabilitation improvements. The legislation will also provide assistance to help repair schools in states hit by natural disasters.

 

 

Rebuild America’s Schools urges you to call Member of Congress and Senators to ask that they support and co-sponsor these bills to help modernize your schools and create jobs in communities across America. 

 

 

Thank you for your support of Rebuild America’s Schools.

 

 

MODERNIZING SCHOOLS SUPPORTS STUDENTS AND GENERATE JOBS


September 3, 2011


Modernizing American Schools Helps Students and Creates Jobs


Rebuild America’s Schools is working for federal support for local efforts to build, renovate and modernize America’s Schools to enable students to achieve and succeed in the 21st Century global economy. Rebuild America’s Schools wrote to President Obama requesting that his Jobs Plan include school facilities in our country’s infrastructure priorities as we all work to generate JOBS and build America’s economy.

 

An Editorial in the New York Times about Jobs Creation makes a critical point that job creation is more important than budget cuts.  The need for school construction is cited as one of the national needs that are worth fighting for to create jobs.  The Times points out that public school buildings in the United States are on average over 40 years old and in need of an estimated $500 billion in repairs and upgrades. Efforts to enhance our nation’s school facilities as part of our country’s infrastructure priorities include:

 

Qualified School Construction Bonds:  Qualified School Construction Bonds (QSCBs) are financing $2.1 billion in school construction projects to build and renovate schools and generating JOBs. States using QSCBs in 2011 are: California, Ohio, Michigan, New York, Kentucky, Wisconsin, Oregon, Massachusetts, Pennsylvania and Texas. These QSCBs are from 2009 and 2010 allocations. Extend the Qualified School Construction Bond program so these bonds can continue to modernize school in states including Montana, Florida, Virginia, Arizona, Missouri, Utah, North Carolina, Maine, Vermont, South Carolina, Illinois and every state needing modern schools.   

 

The Rebuilding America’s Schools Act, H.R. 2394 and S. 796 will extend Qualified School Construction Bond, (QSCB) and Qualified Zone Academy Bond (QZAB) programs to continue important financial support QSCBS and QZABs are currently giving to school districts to build, renovate and modernize schools across America.

 

Fix America’s Schools Today, or FAST is an example of a $50 billion school renovation program that would employ 500,000 workers. Funded through existing Title I formulas school districts would be required to use federal funds for deferred maintenance, repairs and component or system replacements to existing facilities or to supplement their current maintenance and repair efforts so that public school buildings and grounds are operated in a healthful and efficient manner.  The FAST proposal offsets its initial cost over 10 years by ending tax breaks for fossil fuels. 

 

Emergency Jobs to Restore the American Dream Act  Rep. Jan Schakowsky (D-IL) will introduce the Emergency Jobs to Restore the American Dream Act, a cost-effective plan to put over 2 million people to work for two years.  A key piece of Congresswoman Schakowsky’s bill is: The School Improvement Corps to create 400,000 construction and 250,000 maintenance jobs by funding positions created by public school districts to do needed school rehabilitation improvements. This will also provide assistance to help repair schools in states hit by natural disasters.

 

MODERNIZING SCHOOLS IN AMERICA WILL GENERATE JOBS



March 28, 2011


Qualified School Construction Bonds

Building and Modernizing Schools

 


School districts across the country are making great use of the Qualified School Construction Bond program started by the 2009 American Recovery and Reinvestment Act. In 2010, QSCBs financed over $6.67 billion in school construction projects across America.

 

For example, 125 Texas, 37 Michigan, 78 Ohio and 62 Missouri school districts are using QSCBs to build, renovate and modernize schools. State authorities in Tennessee, Massachusetts, Pennsylvania, West Virginia and New York issued QSCBs to finance school construction projects in their states.

 

Rebuild America’s Schools is collecting information about the successful usage of Qualified School Construction Bonds (QSCBs) and Qualified Zone Academy Bonds (QZABs ) to build, renovate and modernize schools in states across the country.

 

Please select a state below to see how QSCBs are being used in many states.


Rebuild America’s Schools is also collecting information about how the QSCBs are being used in other states and school districts.  

 

Please contact RebuildAmericasSchools@comcast.net for more information. 


Sample Usage by State

ARIZONA

CALIFORNIA

DELAWARE

FLORIDA

GEORGIA

IDAHO

IOWA

KANSAS

MAINE

MARYLAND

MASSACHUSETTS

MICHIGAN

MISSOURI

MONTANA

NEVADA

NEW JERSEY

NEW MEXICO

NEW YORK

NORTH CAROLINA

NORTH DAKOTA

OHIO

OKLAHOMA

OREGON

SOUTH DAKOTA

TENNESSEE

TEXAS

UTAH

WASHINGTON

WEST VIRGINIA

WISCONSIN

WYOMING





Treasury Issues State by State 2010 Allocations


The Treasury Department has released the 2010 state allocations for the Qualified Zone Academy Bonds and the Qualified School Construction Bonds.   The 2010 allocations are:

QSCB State Allocations: $  6,600,000,000
QSCB Large Districts: $  4,400,000,000
Total: 
$11,000,000,000


Qualified Zone Academy Bonds: $  1,400,000,000

  

See  QSCB 2010 allocations and QZAB 2010 allocations.

Also, QSCB and QZAB Policy Letter from the Education Secretary.

Our nation's children deserve modern schools.

America's children deserve modern schools. Students need modern, technologically updated schools to prepare them and our nation for the global economy of the 21st Century.

Every school day, an estimated 14 million American children attend deteriorating public schools. Roofs leak. Ventilation is poor. Heating and air conditioning systems do not maintain reasonable temperatures. Lighting is inadequate. Plumbing is a constant problem. Some school buildings do not meet basic local and state codes for health and safety.

Public school modernization will help local communities provide modern, safe and energy efficient schools. Students in their modernized workplaces will better develop the educational skills necessary to succeed in the 21st century workforce. Modern, safe and green schools will also benefit student and staff health and help advance the nation’s goal for increasing energy efficiency. Modern school facilities are also an integral part of raising student performance.

Rebuild America’s Schools is a coalition of national organizations and school districts working to create federal support to help local communities build, renovate and  modernize schools. The purpose of Rebuild America’s Schools is to build national and local support for federal school infrastructure initiatives.

Rebuild America’s Schools contends that federal partnerships are necessary as local communities struggle to finance, build, and modernize school facilities to address the economic and educational challenges of the 21st Century.

 We invite you to join us in focusing attention on the issues and finding ways to help communities modernize their schools.




Rebuild America's Schools continues to work for federal support for modernizing our nation’s schools.  

 

Major improvements are being made in the Qualified School Construction Bond and Qualified Zone Academy Bond programs.  These programs are providing federal financing for over $12 billion in School Construction Bonds for states and school districts to build new schools, renovate, repair and modernize existing schools and establish innovate academic programs. 

 

Rebuild America's Schools believes it is critical that states and school districts respond to this federal effort.  School districts in every state should be fully using the Qualified School Construction Bonds and Qualified Zone Academy Bonds to provide 21st Century modern technologically energy efficient schools for their communities and students.  Modernizing our schools will improve students’ success while helping to revitalize local economies by generating much needed jobs in the construction industry, ranging from architects and engineers to roofing contractors and other construction workers who build, renovate and repair schools.  Modern energy efficient green schools will help local communities increase opportunities for all students to develop the educational skills necessary to achieve and succeed in the 21st century. 

HIRE ACT Improves Qualified School Construction Bonds and Qualified Zone Academy Bonds By Giving A CASH Payment Equaling of 100 % Interest  

Rebuild America's Schools worked successfully for the Hiring Incentives to Restore Employment Act, HIRE Act, P.L.111-147 which extends the Build America Bond direct payment subsidy provisions to the Qualified School Construction Bond (QSCB) and the Qualified Zone Academy Bond (QZAB) and other tax credit programs.

The HIRE Act passed by Congress and signed by President Obama creates jobs by extending the  “Build America Bond ” cash payment interest option to QSCBs and QZABs making school construction programs much more affordable. The HIRE Act also provides payroll tax relief for businesses that hire new workers, extends the Highway Trust Fund;, and allows expense deductions for small businesses.  The HIRE ACT school construction bond improvements will make the Qualified School Construction Bond and the Qualified Zone Academy Bond programs more attractive to school districts and to investors. These changes will make it easier for school districts in every state to use  QSCBs and QZABs to build, moderize, repair and renovate schools. 

Qualified School Construction Bonds (QSCB) and Qualified Zone Academy Bonds (QZAB) are now eligible for the Build America Bond interest subsidy payment established in the American Recovery and Reinvestment Act. Currently, QSCBs and QZABs receive a tax credit as an interest subsidy. Under the new HIRE Act provision school districts have the option of choosing to use a cash interest payment subsidy equal to 100% of the interest on the bonds.  This is the principal feature of the Build America Bonds that make these bonds so successful; and attractive to the markets.  Build America Bonds now constitute over 20 % of the municipal bond market.  

Local Cost Savings: The new QSCB and QZAB cash payment provisions will make the QSCBs and QZABs easier to use, more attractive to potential buyers and most importantly the 100% interest cash payment will reduce the cost of the bonds for the local school district and community.  The federal interest cash subsidy will save districts substantial interest costs creating greater opportunities to build, rehabilitate, repair, and modernize schools while generating construction related jobs in local communities in every state and district that uses these bonds.

Simply Put:  This is a cash subsidy equal to 100% of the interest on the school bond.  This will help build schools and allow districts to use local funds that would been used to pay the bond interest for other education purpose such as keeping teachers in the classrooms and essential  programs available for students.       

 

 

States and Districts Act Are Starting to Use Qualified School Construction Bonds  Build Schools

 

Many States and school districts are acting quickly to use Qualified School Construction Bonds. Michigan, Wisconsin, Utah, Arkansas and Florida are issuing their 2010 allocations to school districts across these states.  New York will be making allocations to districts late this summer.  Some states such as Pennsylvania, Alabama, Colorado, Delaware, and Tennessee are issuing their Qualified School Construction Bond allocations as state bonds and then distributing the funds to local school districts for local school construction projects. 

 

Tennessee financed its 2009 $170 million Qualified School Construction Bond allocations for 17 school districts including Memphis which received a direct 2009 QSCB allocation of $ 41.7 million.  June 16, 2010 is the deadline for school district project applications to the Tennessee State School Bond Authority for Tennessee’s $204.8 million 2010 QSCB allocation.     

 

Earlier this month Pennsylvania distributed $602 million to 46 school districts. Pennsylvania estimates that this will save the districts – and taxpayers  – an estimated $513 million in financing costs. The 46 school districts have plans for 101 projects which meet those priorities; 63 projects will reduce energy or water consumption; 28 will improve early childhood education facilities and; 27 will increase access to applied learning labs.



American Recovery and Reinvestment Act

April 5, 2009

  State Bond Allocations and Guidelines for Qualified School Construction Bonds and QZABs

                       

Treasury and IRS issued the state allocations for Qualified School Construction Bonds and Qualified Zone Academy Bonds.  See  QSCB allocations and QZAB allocations.  In addition, guidance for Build America Bonds have been issued.  See Bond Guidance.

February 14, 2009

The final economic stimulus package in the American Recovery and Reinvestment Act approved by Congress late Friday, includes financing and funding for school construction, modernization, renovation and repair.  

 The tax provision of the legislation includes $24.8 billion for Qualified School Construction Bonds and for the expansion of the Qualified Zone Academy Bond program. The new Qualified School Construction Bonds will be for school construction, renovation, repair and site acquisition. This is almost the entire bond authorization called for in the America’s Better Classrooms Act.  Congressman Charles Rangel (D-NY) Chair of the House Ways and Means Committee, Congressman Bob Etheridge (D-NC), Senator Jay Rockefeller (D-WV) and Senate Finance Committee Chair Max Baucus (D-MT) were key advocates for the school construction bonds which are supported  by President Obama.

 Senate politics stymied the effort for direct school modernization grants to school districts. The House of Representatives sought to provide $14 billion for school renovation and repair grants that school districts could use within 60 days to start modernizing schools and classrooms to generate construction jobs. The Senate, needing three votes to pass the entire economic recovery package, dropped its $16 billion school modernization funding provision. The Senate also resisted the House effort to include $6.7 billion in the final package for modernization. School modernization was the last issue decided in the conference.  

 The final agreement added funding for school modernization as one of the purposes in a $53.6 billion State Stabilization Fund.  These funds will be available for school modernization if state and local officials decide to use the funds to modernize schools. Governors will control 18.2 % of those funds which can be used for public safety and education purposes including public school modernization, renovation and repair and for higher education renovation and repair.  Local school districts which will receive the remaining 81.8 % of the State Stabilization funds can use Stabilization funds for school modernization as well as for education programs such as the Individuals with Disabilities Education Act (IDEA), Title I No Child Left Behind, and Perkins programs. 

The American Recovery and Reinvestment Act is a big step for the financing of school construction bonds to help build, renovate and repair our nation’s schools and for funding of school modernization. 

 Rebuild America’s Schools thanks all who are working so diligently for the funding and financing for school construction and modernization. We now will work with Congress and the Obama Administration to finish the work of helping states and communities  build and modernize the schools and classrooms our students need to succeed in the global economy of the 21st Century.
 

January 29, 2009

The House of Representatives passed the American Recovery and Reinvestment Act, ( ARRA),  (H.R. 1) on a vote of 244 to 188 on January 28.  School modernization is half way home.  The Senate is scheduled to take up the Senate Appropriations and Finance Committees ARRA packages on Monday February 2.

Please contact members of the Senate to support the American Recovery and Reinvestment Act.

Please thank those Members of the House who supported the ARRA. As always Rebuild America’s Schools thanks President Obama, House Chairs Rangel, Obey, and Miller and Senate Chairs Baucus and Inouye as well as Speaker Pelosi, Senate Majority Leader Reid and Senators Rockefeller, Byrd, and Harkin. 


January 22, 2009

 
House Committees Approve $42.4 billion to fund and finance grants and bonds for School Construction, Modernization, Renovation, and Repair

 

The House Appropriations Committee chaired by Congressman David
Obey (D-WI) approved the American Recovery and Reinvestment Act which includes $14 billion for grants to modernize, repair and renovate public elementary and secondary schools in school districts in every state. The Committee bill also provides $6 billion to modernize, renovate, and repair facilities at institutions of higher education.  The American Recovery and Reinvestment Act will now move to the House of Representatives for approval on January 28th.

 In additional action, the House Ways and Means Committee chaired by Congressman Charles Rangel (D-NY) passed the American Recovery and Reinvestment Tax Act (HR 598) which authorizes $22.4 billion in school construction bonds to build, modernize, renovate and repair schools in every state.

The American Recovery and Reinvestment Act combining the Appropriations and Ways and Means committee bills will move to the
House of Representatives for approval on January 28th.

Please contact Members of the House of Representatives to support the American Recovery and Reinvestment Act.

Senate Committees Provide $23.3 for School Modernization in
American Recovery and Reinvestment Act

 The Senate Appropriations Committee released a summary of the Committee’s American Recovery and Reinvestment Act.  The Senate bill includes $ 16 billion to repair, renovate and construct public schools in ways that will raise energy efficiency and provide greater access to information technology, and $ 3.5 billion to improve higher education facilities.

 The Senate Finance Committee is providing $ 10 billion for Qualified
School Construction Bonds, tax credit bonds, and is increasing the
allocations for Qualified Zone Academy Bonds to $ 1.4 billion for 2009 and 2010.

The Senate Appropriations and Finance Committees are scheduled to meet on January 27 to start Senate action on the American Recovery and Reinvestment Act.

The differences between House and Senate funding levels under the American Recovery and Reinvestment Act (AARA) will be worked out by a Conference Committee after the House and Senate pass their different versions of the ARRA. 

If we all continue our efforts, the final passage of the American Recovery and Reinvestment Act will invest substantial federal support in the modernization of our nation’s schools.





Rebuild America’s Schools’ Review of Major School Construction Proposals in 110th Congress (2007-2008)

 

H.R. 3021 the 21st Century Green High-Performing Public School Facilities Act of 2008. 
The bill authorizes $6.4 billion in funding to states and school districts to help ensure that school facilities and learning environments are safe, healthy, energy efficient, environmentally friendly, and technologically up-to-date. The funds will be directed to states to provide grants to local school districts for the modernization, renovation or repair of public school facilities. H.R. 3021 gives the U.S. Department of Education 30 days to distribute appropriated funds to states and 30 days to the states to distribute the construction grants to school districts. The bill would also provide additional support for Gulf Coast schools still recovering from Hurricanes Katrina and Rita. H.R. 3021 passed the House of Representatives on June 4, 2008 by a vote of 250-164.

 
S. 1942 the Public School Repair and Renovation Act, sponsored by Senator Tom Harkin (D-IA), provides $1.6 billion in grants to communities that continue to struggle to fund needed school facility repairs. This legislation builds on the Emergency School Repair Program which was funded at $1.2 billion when Congress first authorized it in 2000. Under the Emergency School Repair Program, states and school districts successfully used $1.2 billion to repair and renovate public schools in 2001 and 2002.  The House version, H.R. 3902, sponsored by Congressman Dave Loebsack was incorporated into H.R. 3021 the 21st Century Green High-Performing Public School Facilities Act.

 
H.R. 2470 the America's Better Classrooms Act (ABC) sponsored by Representatives Rangel, Ramstad, Etheridge, has 221 House cosponsors. The ABC Act is a $25 billion program designed to provide interest-free loans to expand incentives for public school construction and renovation. The program provides a tax credit to the purchaser of bonds saving the local school district the cost of the interest of the bond. The Senate companion bill is S. 912 sponsored by Senator Rockefeller (D-WV).  The estimated ten year cost to the Treasury of the full $25 billion tax credit bond program is $6.7 billion.  The ABC bill builds on the successful Qualified Zone Academy Bond (QZAB) program.

 
2008 Stimulus packages in House and Senate
- Congress Considered Billions in Funding for School Construction: This year Congress has definitely seen the importance of including school construction as part of economic stimulus legislation. Congress extended the Qualified Zone Academy Bond program and included very important rule changes making the school renovation and repair tax credit bonds more marketable to a broader market. On September 26, the House of Representatives passed a stimulus package, HR 7110, providing $3 billion for school facilities using the structure of H.R. 3021, the 21st Century Green High-Performing Public Schools Facilities Act.  The vote on HR 7110 was 264-158.

 

The Senate considered a stimulus package, S. 3604 that included $2 billion using the mechanism of Senator Harkin’s Public School Repair and Renovation Act.


In October, Senate Majority Leader Harry Reid (D-NV) and Senate Appropriations Committee Chair Robert Byrd D-WV) developed a $100.3 billion economic stimulus package that included $2.5 billion for school renovation and repair.  While the Senate has not taken up this package Senate leaders have said that this package will be part of the discussions
with the economic team of President-elect Obama as an economic recovery package is prepared for Congressional action early next year.   

 

Rebuild America’s Schools seeks support for school construction components in a 2009 Obama Economic Stimulus Program:

 
$10-20 billion in school construction support to be provided through a combination of appropriated grants such as  the 21st Century Green High-Performing Public School Facilities Act of 2008; the Public School Repair and Renovation Act  and tax credit bonds through the America’s Better Classrooms Act.

 

Civil Engineers Give Schools Another 'D'

Crowded schools and deteriorating school facilities contribute significantly to the erosion of the quality of American life, according to an analysis by the nation’s civil engineers. In its latest evaluation of 12 categories of infrastructure, the American Society of Civil Engineers gave a grade of D to schools and to the overall infrastructure.

It’s uncertain, the report said, whether schools can handle a growing enrollment and the smaller class sizes required by the No Child Left Behind Act. Public school enrollment in school year 2003-04 was 48,173,924, up by 394,000 the year before. Estimates of the funds needed to bring school facilities to good condition range from a low of $127 billion to a high of $268 billion.

The report said $1.6 trillion should be spent over the next five years to alleviate potential problems with the nation’s infrastructure. “Americans are spending more time stuck in traffic and less time at home with their families,” William Henry, ASCE president, said. ASCE issued its first "report card" in 2001.

The first step in addressing the condition of the nation’s schools is a realistic and ongoing needs evaluation, the report declares. The latest Department of Education assessment of needs was in its publication, “Condition of America’s Public School Facilities: 1999.” The report said, “While school operations and facilities are primarily state and local concerns, their performance is an issue of national importance.” It called for a regular update of the 1999 report.

The report concluded: “Given that children are our most precious commodity, we should accept nothing less than the best conditions for our schools. ASCE strongly believes that governments at all levels should make primary and secondary education a priority, and should provide the resources to support the necessary infrastructure.”

Among ASCE’s recommendations are the following:

* Expand federal tax credits to support increased use of school construction bonds;
* Continue and increase federal grants for high-poverty, high-need school districts;
* Consider direct federal funding of school construction;
* Encourage school districts to explore alternative financing; and
* Encourage school districts to adopt regular, comprehensive construction and maintenance programs.

Qualified Zone Academy Bonds: Available Now to Renovate and RepairSchools

The Taxpayers Relief Act of 1997 included a tax provision that for the first time establishes Qualified Zone Academy Bonds (QZAB) to assist local school districts with school renovations and other purposes. QZABs provide up to $400 million per year in bond authority in 2006 and 2007 for schools in targeted zones or where 35% or more of the students are eligible for free or reduced lunch.

Since 1998, $4 billion in QZAB bond allocations have been provided to the fifty states and territories.  QZABs have been used successfully in virtually every state.

The Rebuild America's Schools Coalition is building on this starting point to establish a comprehensive national program to address the pressing school modernization needs in virtually every community in America.

 

Congress Extends Qualified ZoneAcademy Bond Program (QZAB)

Congress passed a two year extension of the Qualified Zone Academy Bond (QZAB) program for 2008 and 2009. Included in the Emergency Economic Stabilization Act, H.R. 1424 in a section extending expiring tax provisions, the two year QZAB extension totals $800 million. QZABs allow school districts to issue interest-free bonds for the repair or modernization of public school buildings. Bond buyers receive federal tax credits in lieu of interest. The legislation extending the QZAB program also contains modifications to arbitrage rules which will make the bonds more marketable and allows the tax credits to be stripped and sold in a secondary market.

The U.S. Treasury allocates QZABs to the states based on their low-income school population and state education agencies assign the bonding authority to their local school districts. To be eligible, 35 percent of the students in the schools to be served must receive free or reduced-cost lunches under the federal school lunch program.

At present, QZABs can be used for school modernization and renovation, but not for new construction. Proposed legislation would allow its use for new construction such as building new school buildings and additions to an existing building. Rebuild America's Schools strongly supported the continuation of the QZAB program. See QZABs.

 

Americans Favor National School Rebuilding Program

A significant majority of Americans favor a national public policy directed at rebuilding the country's aging schools and understand the positive effect on students of such construction. Eight in ten surveyed would support an expanded federal role in rebuilding schools and in new school construction. This support cuts across gender, age, income and politics.

A telephone survey conducted by Opinion Dynamics Corporation on behalf of Rebuild America's Schools reached 900 registered U.S. voters obtained by random digit dialing, and found that those surveyed are ready to accept an increased federal role in funding new school construction. Eight in ten supported an expanded federal funding role to assist localities with rebuilding and maintaining public schools.

The average public school building is well past 40 years of age and cannot meet the demands of modern technology. Of the nation’s 80,000 public school buildings, at least one-third need extensive repair or replacement and two-thirds have troublesome environmental conditions such as the presence of asbestos or lead in water and paint. Roofs leak.. Ventilation is poor; heating and air conditioning systems don’t work. Lighting is inadequate; plumbing is a problem.

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