November 13, 2008

School Construction Funds Likely Part of Second Economic Stimulus Package

The stimulus packages, which include school construction and repair funds, could be taken up in the lame duck session as early as December.

In September, the House passed a stimulus package including $3 billion for school construction through the 21st Century Green High-Performing Public Schools Facilities Act.  The Senate also took up its package which included $2 billion for school repair and renovation.   Both the House and Senate are on the record for a stimulus package investing billions of dollars to fund school construction. 

Neither the House proposal nor the Senate proposal required state facility program eligibility.  The House proposal would flow funds directly to school districts while the Senate proposal would have the state allocate the funds to schools.  California’s share of the House proposal is more than $300 million and more than $200 million in the Senate proposal.

The tax extenders package signed into law includes a two-year $800 million extension of the Qualified Zone Academy Bond Program (QZAB) and important modifications to QZAB arbitrage rules.  The QZAB program provides tax credit financing for school modernization and repair related to establishing academies.  Schools with more than 35 percent of students eligible for free or reduced price meals or are in empowerment zones are eligible for this competitive grant program operated by the California Department of Education (CDE).  For more information, contact CDE staff at sfarrell@cde.ca.gov or Anna Ferrera at aferrera@m-w-h.com.