For Immediate Release
July 21, 1999

ADDRESSING THE CRISIS IN AMERICA'S SCHOOLS PROPOSED LEGISLATION COULD GENERATE UP TO $25 BILLION FOR SCHOOL CONSTRUCTION

WASHINGTON-Members of Congress will consider legislation today that would lead to federal financial assistance for school modernization. The Democratic substitute to the Republican tax bill, being considered on the House floor today, will include the school construction provisions of HR 1660, a bill that was introduced earlier this year by Representative Charles Rangel of New York. HR 1660 would provide tax credits on $24.8 billion of bonds for school construction and modernization projects.

There is bipartisan support to leverage up to $25 billion in school construction bonds. A federal investment of $5.9 billion over ten years will help local communities make a $25 billion investment in our nation's schools.

"Congress should not miss this opportunity to use federal dollars creatively and in partnership with local governments to address the pressing need to renovate, modernize and build schools to educate our nation's public school students," said Robert Canavan chair of Rebuild America's Schools, a national coalition of more than 50 businesses, education organizations and local school districts. "School modernization bonds will build new schools for our children and give tax relief to local property tax payers," said Canavan.

More than 50 national organizations support school modernization including Rebuild America's Schools as well as organizations ranging from the American Institute of Architects and the National Parent Teacher Association (PTA). The U.S. Conference of Mayors also supports school modernization bonds and has sent Congress a letter signed by 64 Mayors of cities across the country.

The average school district that issues bonds for school construction would expect to pay $4.5 million in interest for a $10 million, 15-year tax-exempt bond issue. However, the average school district that issues School Modernization Bonds would pay zero interest. Bondholders would receive a federal tax credit in lieu of interest. The school district would only be responsible for paying back the principal. The savings would help communities stretch their limited resources to pay for additional school construction. Decisions regarding school renovation and construction would remain with the local community.

Measures to create school modernization bonds include legislation introduced in both the House and Senate. In the House, there is Representative Rangel's bill, HR 1660 and HR 1760, introduced by Representative Nancy Johnson of Connecticut. So far, the total number of co-sponsors of both bills combined is 168. In the Senate, there is President Clinton's proposal, introduced as S 223 by Senator Frank Lautenberg of New Jersey and the Public School Modernization and Overcrowding Relief (MORE) Act of 1999, introduced by Senator Charles Robb of Virginia and Kent Conrad of North Dakota.

For more information about the need for school construction and modernization, call Robert Canavan of Rebuild America's Schools at (202) 462-5911.