Breaking News

Latest News: April 5, 2009

 Just Released from Treasury/IRS:
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 21^st Century.
 

January 29, 2009

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.

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’ Review of Major School Construction Proposals in 110^th Congress (2007-2008)

 

H.R. 3021 the 21^st 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 21^st 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 21^st 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 21^st 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.