VIRGINIA: More than $1 billion of bond-financed projects planned by Virginia could be delayed as the state’s new governor confronts billion-dollar deficits for fiscal 2010 and 2011. The triple-A rated state also is waiting to see if Congress will pass legislation to convert qualified school construction bonds into direct-pay subsidy bonds, like Build America Bonds, before issuing a second round of tax-credit QSCBs next year.

Investors nationwide have shown limited interest in the tax-credit qualified school construction bonds created by the American Recovery and Reinvestment Act. The QSCB market has languished even as investors have embraced Build America Bonds, also spawned by the ARRA. BABs offer a direct-interest subsidy from the federal government. As of Dec. 11, state and local governments have issued more than $63 billion of direct-pay BABs compared with $2.46 billion of tax-credit bonds, according to Thomson Reuters. This month, the House passed legislation as part of a jobs bill that would offer municipalities a direct-pay subsidy from the U.S. Treasury for QSCBs and qualified zone academy bonds instead of a tax credit. The Senate has not yet considered the bill. Virginia expects to delay issuing its second tranche of QSCBs until there is more clarity from Congress.

“We certainly don’t want to leap into them the old way if this new way might be a possibility,” Whitley said. Though she said the state was pleased with its initial pricing on a $61 million QSCB deal from November, the direct-pay subsidy would be “an easier execution.” The limited number of QSCB buyers means that issuers have had to offer supplemental coupons or sell them at a significant discount, said Arthur Anderson, an attorney with McGuireWoods LLP who worked with Virginia on its initial QSCB deal. QSCBs are “just not what was advertised,” Anderson said. “They were supposed to be par instruments.” The conversion to direct-pay BABs will help achieve that result for localities, he said.

WEST VIRGINIA: In November, West Virginia sold two separate bond issues that will provide significant funds for secondary schools and higher education institutions throughout the state. Those bond sales are significant because of the low borrowing cost West Virginia was able to achieve, and the high percentage of in-state retail investors.
In July, West Virginia became the first state in the country to utilize the Qualified School Construction Bonds program statewide. Gov. Joe Manchin said the importance of maintaining healthy bond rating for the state is paying off for taxpayers.
"When it comes to financing our state's needed infrastructure, we're saving millions of dollars because we've been responsible and our bond ratings are very high," Manchin said. "By being able to issue bonds at lower rates, we not only have a smaller debt service, we have more money to put toward essential school projects."

ARIZONA: Last week’s downgrades of Arizona’s debt by two rating agencies will have its most immediate impact on the sale of $735 million of certificates of participation to raise cash for the financially strapped state early next month. But the continuing negative outlooks from Moody’s Investors Service and Standard & Poor’s illustrate Arizona’s ongoing financial distress as lawmakers continue efforts to balance the budget. With the current budget running $1.5 billion short of revenue, lawmakers next month will also face a $3.6 billion shortfall in the fiscal year starting July 1.

Public schools are potentially affected by the downgrades as well. The state’s issuer rating from Standard & Poor’s fell to AA-minus from AA, and the one from Moody’s fell to A1 from Aa3. But the ratings on the Certificates of Participation (COPs), which are used to finance school construction, dropped to A-plus from AA-minus and to A2 from A1. The downgrade affects the underlying rating of $580 million of certificates issued by the Arizona School Facilities Board in November 2008. The school COPs retain AAA ratings from Standard & Poor’s due to insurance provided by Assured Guaranty Municipal Corp., but that rating has a negative outlook. The 2008 COPs were used to fund construction of school facilities in the current fiscal year and to reimburse the state’s general fund for construction paid for with cash in fiscal 2008 and 2009. Under the school lease arrangements, the School Facilities Board must make lease payments, subject to annual appropriations by the Legislature and annual allocations by the board. The SFB agrees to use its best efforts to make lease payments on more than 20 school facilities under construction or recently completed.

MASSACHUSETTS: The School Department wants to boost security in 18 schools this year by installing “key scan” card systems designed to verify a card holder’s identity before admitting the individual into a building. The cost of $75,000 includes installing the access control systems in Fecteau-Leary Junior/Senior High School and 17 elementary schools. School employees will be issued cards to be used with the system. The scan system eliminates the time it takes for an office secretary to buzz a co-worker into a school but it allows administrators to maintain a computer record of people entering and leaving buildings.

Most schools are equipped with a buzzer entry system linked to video cameras allowing school employees to observe who is seeking entry to a school. The city’s public high schools are already equipped with the card scan system said Discipline and Attendance Officer Richard Iarrobino. “Constantly trying to make improvements on school security is a major goal for School Superintendent (Catherine) Latham and the School Committee,” Iarrobino said.

WASHINGTON METRO AREA: Norwood School started buying wind power. Potomac School converted its big yellow school buses to run on biodiesel. Sidwell Friends School kicked it up a notch with a green middle-school building that brought conversations about sewage treatment to the lips of D.C. high society. The solar panels that Bullis School bolted onto its roof this month were the latest volley in a green arms race that the area's private schools have waged for the past few years. Although many public schools have gotten in the game, too, private schools have deeper pockets and more flexibility to pursue projects to woo families and be environmentally friendly. Some of the competition is tacit. But in the spring, 12 private schools from the Washington and Baltimore areas went head-to-head over reducing garbage and electricity use and increasing recycling.

Educators say gentle competition is a good way to teach students about energy use. (The many sport-utility vehicles that lumber up their driveways to drop off students, they say, is further incentive to bolster environmental education.) And investing in green buildings makes economic sense for schools in ways it doesn't for businesses, they say.
"A number of the things that we do in our market economy have the effect of shielding or clouding the whole concept of energy costs," said Tom Farquhar, head of Bullis School, which buys wind power exclusively, and, once the switch is flipped next month, will also draw electricity from 540 new solar panels atop its arts building. Most buildings aren't constructed by the people who will occupy them. Schools will reap benefits for decades to come, making projects more economically viable, Farquhar said.

Green issues are spreading to public schools as well. In the District, a bill introduced this month would require public schools to serve local produce, and a pilot program that serves local fruit and vegetables is in place at some elementary schools. There are similar efforts in Maryland and Virginia. Public schools have also initiated green construction projects in the past few years. Students at T.C. Williams High School in Alexandria praised their naturally lighted classrooms after they opened in 2007. In Virginia, there are solar panels atop Thomas Jefferson High School for Science and Technology, and in the District, on Thurgood Marshall Academy, a charter school.

MASSACHUSETTS: If a group of eighth-graders gets its way, North Middle School will go "green." They have turned their attention to a "design dilemma," hoping to reshape the 10-year-old school by making it more environmentally friendly. The assignment, by teacher Lisa M. Strycharz, came as a surprise during the final days before the Christmas-New Year vacation, said Joshua M. Burrage, 14. "We must look at windows, flooring, furniture, lighting and just about everything, and come up with ideas that will make the school eco-friendly and save money," he said. Gienna C. DeGray, 13, said the assignment "ignited the imagination of everyone. We're working in teams and the 'dilemma' can be resolved."

The 120 students assigned to the Bulldog team were asked to come up with a new design for a classroom, the auditorium, cafeteria, library, gymnasium and the entry hallway stairwell. DeGray, Burrage and Matthew J. Cole, 13, were assigned the library. "The library is a good place for improvement," Cole said. "It is one of the largest spaces in the school." They have an imaginary budget of $250,000 to finance their project. "We can do this," DeGray said. "We will use a lot of recycled material in the new design. Recyclables are cheaper." "Some of the windows in the library are shuttered and not always used," Burrage said. "That is a waste of solar energy and we plan to change the lighting to make energy more efficient here." "The fixtures and furniture also need to be upgraded," said DeGray. "How about changing the shelving to a clear plastic instead of wood? That can also be done with the chairs and tables." Cole said replacing the carpet will also be helpful. "Change it to wool - recycled wool, that is," he said. "We are also adding a 'Go Green' section to the library to help educate people on the importance of environmentally friendly projects and items," DeGray said.

Cole said students must prepare floor plans, design a PowerPoint presentation, explain the reasons behind recommended changes and list cost estimates to complete the assignment. Burrage said lessons learned during the assignment will go beyond the classroom. "We have learned a lot about the environment and recycled stuff," he said. "It has taught us to be conscious of the environment and to be eco-friendly at our homes." "This unit will help students to create a connection between their environment and key subjects, help them gain important work and life skills," Strycharz added. "It emphasizes math, communication, leadership, teamwork, science technology and even facility planning."

NORTH CAROLINA: Congress made a tantalizing offer to local governments this year, with no-interest loans for school construction and renovation. But nearly a year after the school construction bonds were approved as part of the federal stimulus package, few school districts in the state or across the country have found companies willing to buy them. That's left the promise of new schools, additions and land purchases - and the thousands of jobs that were supposed to be created by the construction work - largely unfulfilled. "I'm disappointed," said Steve Taynton, section chief for school planning at the state Department of Public Instruction. "It could do a lot of good if we could get the money out there."

A new kind of school construction bond created in the stimulus package would allow lenders to claim tax credits rather than earn interest. The plan was that borrowers were supposed to pay only the principal. But officials said it has been tough to find banks interested in tax credits that won't do them much good when they're suffering losses. North Carolina has a $275 million allotment of the school construction bonds this year. Five big school districts, including Wake and Charlotte-Mecklenburg, had allocations within that pool earmarked for them. Wake was allowed to issue $17.3 million in construction bonds and CMS nearly $26 million. Some counties, including Durham, didn't ask for a chance to issue bonds. Among those counties that did, only seven have gotten their borrowing approved by the Local Government Commission in the state treasurer's office. None of those is in the Triangle.

U.S. Rep. Bob Etheridge, a longtime champion of having the federal government help with school construction, recently supported an attempt to get around the problem of offering tax credits banks don't want. Under the change, state or local governments could choose to receive a direct payment from the federal government equal to the value of the tax credit. The payment would lower the local governments' borrowing costs. The provision was included in a bill the U.S. House passed this month. It awaits action in the Senate. According to Etheridge's office, only $1.7 billion of the $11 billion in school construction bonds available nationwide has been used. "Companies aren't making enough to use the credits," said Etheridge, a Lillington Democrat.

The law allows allocations local governments don't use this year to be returned to the states for redistribution, along with another $11 billion available next year. With the change, local governments should be able to borrow nearly $22 billion for school construction and renovations next year, Etheridge said."We need to get them out and moving," he said of the bonds. Because counties were having so much trouble finding buyers, the state education department decided to give extensions to local governments who were trying to issue bonds. So if a county failed to sell bonds this year, it could essentially roll over its bonding authority to next year.

NATIONAL: Jones Senior High School has one of the best boys' basketball teams in eastern North Carolina, but its gymnasium is on the verge of collapse. In March, engineers found that the walls and roof don't meet the state's building code and that "moderate- to high-wind velocities could threaten the stability of the structures." "I wouldn't want to be in here in a bad storm," said physical education teacher Debbie Philyaw. After the federal stimulus passed in February, North Carolina school officials thought they had found a way to repair the 58-year-old gym and other crumbling school structures. The stimulus provided money for Qualified School Construction Bonds, which is intended to let school districts raise capital through interest-free bonds to fund construction. The program also was expected to boost North Carolina's construction industry. Ben Matthews, director of school support for North Carolina's Department of Public Instruction, estimated it would create 11,000 jobs.

But the bond program has become entangled in financial and bureaucratic red tape. Only $2.3 billion of the $11 billion in bonds available this year have been sold as of last week, data compiled by Bloomberg show. "States are missing a once-in-a-lifetime opportunity," said Judy Marks of the National Clearinghouse for Educational Facilities.
In North Carolina, one of the 69 districts chosen by the state to benefit from the program has found a buyer for its bonds. "The idea is to stimulate the economy," Matthews said. "Then it comes to a screeching halt because our people can't find lenders."

North Carolina's experience highlights why it's been so hard to get the program started. For one, North Carolina law prevents the state from issuing bonds directly, so they must be sold by individual counties. But some counties have low credit ratings, and some have been allotted such small amounts of money under the program that lenders aren't interested. Matthews said even North Carolina-based Bank of America, one of the nation's largest banks, hasn't bought any of the bonds in the state. Bank spokeswoman Nicole Nastacie said the company has invested in the bonds, but would not say where. She said the bank "will continue to consider them, subject to our ability to structure and price appropriately." Some potential lenders are also reluctant to buy bonds because it's hard to make money from them. Lenders are paid through tax credits from the U.S. Treasury worth an estimated $8 billion over 10 years. But banks battered by the financial crisis can't use the tax credits if they have no profits and no tax liability. And Treasury has yet to issue regulations allowing banks to strip off the tax credits and sell them to third parties.

Some lenders have asked for interest. Branch Banking & Trust, which is headquartered in Winston-Salem, N.C., offered to buy Jones County's bonds — if the county paid 2.9% interest, in addition to the tax credits, according to Michael Bracy, the Jones County schools superintendent. BB&T spokeswoman A.C. McGraw refused to comment on the Jones County bid. She said rates are "based on a thorough analysis of each individual transaction and the terms of the loans." Jones County's manager, Franky Howard, said the county won't act until next year, when he hopes Treasury will have issued new regulations.

Rep. Bob Etheridge, D-N.C., met with Treasury Secretary Timothy Geithner to ask him to issue rules allowing investors to strip and sell the tax credits. Etheridge said Geithner promised his staff was working on it. That was six months ago. "It's complicated. I can appreciate that," Etheridge said. "But that's only a reason, not an excuse. Get it done." Nayyera Haq, a Treasury spokeswoman, said in an e-mail: "We remain committed to making the Recovery Act bond programs as effective as possible and are in the process of developing additional regulations." Etheridge successfully added a provision to a jobs-creation bill passed by the House last week that would allow state or local governments to choose to get a direct payment from Washington equal to the value of the tax credit. The bill heads to the Senate, which will take it up next month.

Students and teachers in Weldon City are among those waiting for the money. The school district hopes to use part of its $894,000 allotment to replace the science labs at Weldon Science and Technology High School, where rusted gas pipes have forced students to do their experiments on computers instead of Bunsen burners. "As far as any hands-on experiments, we can't do it," said Elie Bracy, the superintendent. The impact of the delay has been economic as well as educational. The city planned to use a local company, Freeman Roofing, for the repairs. On Dec. 2, Freeman went out of business and 18 workers lost their jobs. "If we had gotten those projects," said Bill Freeman, the company's owner, "we'd be in business today." [Includes estimated funding required to repair schools in each state, as of 2008, bonding authority, and bonds sold to date.]

MASSACHUSETTS: School and town officials said they are pleased with the results of a study by the Green Schools Initiative that found the high school is a top-performer when it comes to energy efficiency. "In these tough budgetary times, for us to conserve energy as much as we can is extremely important," said Alan Graham, the district's technology and operations director. The high school, along with 29 other "green" and standard schools built between 2001 and 2006, took part in a study conducted by the Green Schools Initiative from 2006 to 2007. The Green Schools Initiative was a program launched by the Massachusetts Renewable Energy Trust and the Massachusetts School Building Authority in 2001. The program ended this year.

School officials found out that Ashland High's energy efficiency was much better than average when compared with the other schools participating in the study. "Ashland High School is one of the finest examples of a green school in the nation," said Elisabeth Krautscheid, project manager for the Green Schools Initiative, in a letter to Superintendent Perry Davis. The study found that the high school was saving about 17 percent on its electric bill and 33 percent on its gas bill annually, compared to the same building without green technology. When plans were being drafted for the high school, which opened in 2006, it was anticipated that the building would see total energy savings of 27 percent, when compared with an identical building built to standard code. The study points out that there is an actual annual savings of 21 percent, because the original models do not take into account things like outdoor lighting and kitchen equipment.

When district officials first began planning a new high school earlier this decade, they did so with the intent of building one that would cut emissions and energy costs. They decided to participate in the Green Schools Initiative, which offered incentives, in the form of grants, to districts that built energy-conscious schools. During the construction of the school, which cost about $39.8 million, the district landed a $500,000 grant for including "green" features, such as a series of solar panels on the roof, large windows and sunroofs to let in natural light and sensors that automatically adjust lights to account for the level of sunshine coming in. Additionally, there are walking trails and wetlands on school property and a stormwater system that collects water and lets it seep back into the ground naturally.

Although costs for a green construction project tend to be higher than for a standard one, Davis said he was glad to see the town's investment paying off. "These tend to be more expensive at the front end but the payout comes in the long-term savings," he said. "This reinforces the decision the town made to participate in the (green schools) program." Town Manager John Petrin said he was glad to hear about the results of the study, and he hoped the town could look to the high school as a model for other projects. "Going green is certainly a worthwhile initiative these days," he said. "I'm just proud that Ashland can be a leader in this area."

NATIONAL: Municipal market participants want Congress to provide more assistance for muni bonds next year by extending or expanding many of the bond-related provisions in the American Recovery and Reinvestment Act, especially those authorizing the Build America Bond program. The House started on this course last Wednesday by approving a jobs bill that would expand two tax-credit bond programs for schools to allow state and local issuers to receive direct BAB-style payments from the Treasury Department instead of investors receiving tax credits. The provisions, which would apply to qualified school construction bonds and qualified zone academy bonds, could be the beginning of a major change in the muni market, with Congress modifying the tax-credit bond programs, which have never really taken off, to reflect the more popular BABs.

As of Dec. 11, state and local governments had issued more than $63 billion of direct-pay BABs, which provide them with federal payments equaling 35% of their interest expense. That compared to a paltry $2.46 billion of tax-credit bonds that were issued during the same period, according to Thomson Reuters. The QSCB program accounted for most of that tax-credit bond issuance — 144 deals totaling $2.4 billion — but still fell far short of the $11 billion Congress authorized for the program for 2009. An additional $11 billion of QSCBs have been authorized for next year. QZABs have not fared nearly as well. Despite receiving $1.4 billion in authority as part of the ARRA enacted in February, just 16 issues totaling $43.1 million of QZABs were sold in 2009, according to Thomson Reuters.
As far as extending the BAB program beyond its Dec. 31, 2010, expiration date, it appears the discussion already has moved beyond "if it will happen" and instead has advanced to "when it will happen" and "for how long," as well as, "who else will be allowed to participate" in the program.

On the regulatory front, market participants are hoping the coming year includes additional guidance on some ARRA provisions, but also a return to regulatory needs that existed before the stimulus package monopolized much of the Treasury's lawyers' attention in 2009. The Treasury and the Internal Revenue Service recently identified 10 muni bond projects they hope to release under their 2009-2010 priority guidance plan. At the top of their list is stripping guidance on tax-credit bonds and how issuers or investors can strip the credit from the bond and sell it separately. Some market participants hope stripping will broaden the tax-credit bond market, but Treasury officials have warned that stripping should not be seen as a cure-all and that there are a number of complicated issues that they must work through before proposing guidance.

NATIONAL: Municipal market participants want Congress to provide more assistance for muni bonds next year by extending or expanding many of the bond-related provisions in the American Recovery and Reinvestment Act, especially those authorizing the Build America Bond program. The House started on this course last Wednesday by approving a jobs bill that would expand two tax-credit bond programs for schools to allow state and local issuers to receive direct BAB-style payments from the Treasury Department instead of investors receiving tax credits. The provisions, which would apply to qualified school construction bonds and qualified zone academy bonds, could be the beginning of a major change in the muni market, with Congress modifying the tax-credit bond programs, which have never really taken off, to reflect the more popular BABs.

As of Dec. 11, state and local governments had issued more than $63 billion of direct-pay BABs, which provide them with federal payments equaling 35% of their interest expense. That compared to a paltry $2.46 billion of tax-credit bonds that were issued during the same period, according to Thomson Reuters. The QSCB program accounted for most of that tax-credit bond issuance — 144 deals totaling $2.4 billion — but still fell far short of the $11 billion Congress authorized for the program for 2009. An additional $11 billion of QSCBs have been authorized for next year. QZABs have not fared nearly as well. Despite receiving $1.4 billion in authority as part of the ARRA enacted in February, just 16 issues totaling $43.1 million of QZABs were sold in 2009, according to Thomson Reuters.
As far as extending the BAB program beyond its Dec. 31, 2010, expiration date, it appears the discussion already has moved beyond "if it will happen" and instead has advanced to "when it will happen" and "for how long," as well as, "who else will be allowed to participate" in the program.

On the regulatory front, market participants are hoping the coming year includes additional guidance on some ARRA provisions, but also a return to regulatory needs that existed before the stimulus package monopolized much of the Treasury's lawyers' attention in 2009. The Treasury and the Internal Revenue Service recently identified 10 muni bond projects they hope to release under their 2009-2010 priority guidance plan. At the top of their list is stripping guidance on tax-credit bonds and how issuers or investors can strip the credit from the bond and sell it separately. Some market participants hope stripping will broaden the tax-credit bond market, but Treasury officials have warned that stripping should not be seen as a cure-all and that there are a number of complicated issues that they must work through before proposing guidance.

WISCONSIN: After months of discussion, board members approved a resolution authorizing the issuing of school construction bonds of about $1.3 million. The district's financial advisers explained how those bonds came close to not working out as planned. The Qualified School Construction Bonds are beneficial to school districts because they come with zero interest. There are some downfalls to the bonds, which almost caused a problem for the Watertown district's bonds. “We are very fortunate to receive these dollars because they often come with mixed results,” Mike Clark, of R.W. Baird, said. “We just worked with a district in northern Wisconsin rated at AA and they received no buyers. Another district ended up paying supplemental interest instead of the zero interest.” Clark said although the bonds are a great deal for school districts they come with several strings attached, which has deterred buyers.

The district originally applied for $3.3 million for the bonds and was approved for $1,356,00. Those bonds will be divided into two different portions to work on the facilities in the district. A total of $856,000 will be used as part of the $22,385,000 that was approved in the November 2008 referendum, which includes updating the district's elementary schools. The $500,000 of the bonds will be used to finance projects at the middle school that were not included in the facilities referendum plan. Those updates will include new lights, ceilings in the hallways, cafeteria and library, as well as painting throughout the building. More bonds will be available in the spring and the district plans to reapply to finance the remaining portion of the referendum dollars. Clark reminded district officials and board members that the district must use the funds as they had planned. “These dollars will be monitored closely and need to be spent in a way that will mirror your application,” Clark said. “If the district would spend it inappropriately, you could lose your tax credit.”

ILLINOIS: Ninety cameras will be installed outside Fenger and 39 other Chicago Public high schools to stop what Mayor Daley called the ugly “epidemic of children killing children,” thanks to a $2.25 million gift from the banking giant that employs the mayor’s brother, Sun-Times reports. Last year, a bloody weekend for CPS students prompted Daley to link 4,844 cameras inside schools and 1,437 exterior school cameras to police districts, squad cars and the 911 center. Until that time, real-time video from school cameras was accessible only to school security.

Thanks to J.P. Morgan Chase, where William Daley serves as Midwest chairman, 40 more high schools will get exterior cameras. They include Fenger, where 16-year-old Derrion Albert was beaten to death in September during a brawl captured on videotape and played around the world. Another camera will be installed outside Walter H. Dyett High School, 555 E. 51st St., where two students have been murdered this year.

The extra layer of protection can’t come soon enough for sophomore Brandi Wilson, who’s tired of “gang wars” that sometimes extend her school day. “They happen around 3 p.m. or 4 p.m. when we’re getting out of school, and I just don’t feel safe,” Wilson said after Daley’s news conference at Dyett. “I call my mom and I tell her, `Mom, I’m not coming home right now. I’m staying inside of the school because there’s shooting going on outside or there’s a gang fight going on outside.’ And she’s like, `They’re gonna have to do something. I don’t like that you don’t feel protected.’” With the outdoor camera, Wilson said, “Maybe we can concentrate more on our school work instead of having to worry about the next violent thing that’s gonna happen.”

Schools CEO Ron Huberman stressed that some of the new cameras would be “outside the immediate envelope” of the school because that’s where the violence takes place. Daley stressed that none of the new cameras would have blue strobe lights that carry the stigma of a high-crime area. “You won’t even see this unless you’re looking for it,” he said.

NATIONAL: The House of Representatives approved a jobs bill that would expand two tax-credit bond programs for school projects to allow state and local issuers to receive direct Build America Bond-style payments from the Treasury Department instead of investors receiving tax credits. While the Senate would not take up the bill until next year, municipal market participants said provisions in the House-approved Jobs for Main Street Act of 2010 — which would apply to qualified school construction bonds and qualified zone academy bonds — may represent a sea change with Congress beginning to revise the fledging tax-credit bond programs to reflect the more popular BABs.
"It's huge. I think this has the potential to be a game-changer," said Sam Gruer, managing director at Cityview Capital Solutions LLC. "I can't see why anyone would borrow on the tax-credit basis if this option is available to them." "In light of the success of the BAB program, this is a sensible step forward and could jump-start the QSCB and QZAB programs next year," said Jeremy Spector, a partner at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC and chair of the American Bar Association's committee on tax-exempt financing. "If successful, the next step would be to extend the direct subsidy payment to other categories of [tax-credit bonds]."

State and local governments this year have issued more than $63 billion of direct-pay BABs, which provide them with federal payments equaling 35% of their interest expense. That compares to a paltry $2.46 billion of tax-credit bonds that were issued during the same period, according to Thomson Reuters. And the QSCB program accounted for most of that tax-credit bond issuance — 144 deals totaling $2.4 billion. But the QSCBs issued still fall far short of the $11 billion Congress authorized for the program in 2009.
An additional $11 billion of QSCBs have been authorized for next year. Despite receiving $1.4 billion in authority as part of the American Recovery and Reinvestment Act enacted in February, just 16 issues totaling $43.1 million of QZABs were sold in 2009, according to Thomson Reuters.

Under the provision of the jobs bill that would extend the direct-pay BAB structure to QZABs and QSCBs, issuers of these bonds would simply sell them at taxable rates, and the Treasury would give them direct payments equal to the lesser of the actual interest rate of the bonds or the daily credit rate for municipal tax-credit bonds. Sources said they expect most of the subsidies will be paid out based on the tax-credit rate, which was included because otherwise issuers and investors would have no incentive for keeping interest rates down since any rate would be fully subsidized by the federal government. The Treasury bases the tax-credit rate on taxable bonds with ratings ranging from single-A to triple-B from various market sectors. But market participants have complained in the past that they often have had to offer supplemental interest coupons to investors to market the credits, even though the programs are intended to subsidize 100% of interest costs.
"One of the reason why the tax-credit structure hasn't worked … is because it's very difficult to market tax credits, it's hard to find investors," said Michael Decker, co-head of the municipal securities division at the Securities Industry and Financial Markets Association. He added that with the direct subsidy option, "you won't run into the hurdles that have forced issuers to need to offer the supplemental coupon."
"This is a rare example of something where adding a new code provision and making the code longer actually makes it simpler in practice," said Frederic J. Ballard of Ballard Spahr LP.

The provision would be funded by $4.1 billion redirected from the Troubled Asset Relief Program. Most of the costs to the federal government for QZAB and QSCB programs were already budgeted when they were authorized, and the $4.1 billion would cover the cost of increased issuance, sources said. Representatives from the Joint Committee on Taxation, which is charged with scoring the provisions, could not comment on how the $4.1 billion figure was reached.

LOUISIANA: The Recovery School District is seriously considering whether to charge its charter schools rent for use of their buildings, a move that district officials say would put the city more in line with many cities where charters pay for their facilities. "What we are doing now is not sustainable," said Ramsey Green, the district's director of operations, who said nearly half of his staff's time goes to handling the charter requests. School space, including responsibility for repairs, will likely become an increasingly hot-button political issue over the coming years, as good-quality buildings already stand at a premium and some school buildings require significantly more maintenance than others. In the short term, the construction of several new buildings through the $2 billion school facilities plan for the city might fuel the debate, as some schools move into state-of-the-art buildings while others remain in more dilapidated ones.

Officials at the National Alliance for Public Charter Schools say it's not unprecedented for charters to get their buildings rent free -- or virtually rent free -- but that most charters bear the responsibility for finding their own facilities. As a result, the majority do not occupy traditional school building space. "I think that could change over the next five to 10 years as charters become an increasingly important part of the landscape," said Todd Ziebarth, vice president of policy for the charter school alliance. "In a tight economy, we might see (more states and school districts) moving to provide access to vacant buildings."

Georgia lawmakers last year passed a bill requiring school districts to share their unused space with charters for free. California provides money to charter schools to help defray facilities costs. And in New York City, the mayor and school chancellor have handed over vacant buildings and classrooms to charters, making for some uncomfortable bedfellows when traditional and charter schools with different programs and resources share space. Fueled partly by President Barack Obama's support, the number of charter schools, already topping 5,000, will likely continue to grow. New Orleans remains the only city where more than half of all public school children attend the publicly financed, privately run schools, however.

The Recovery School District and the Orleans Parish School Board, the two major overseers of charters in New Orleans, have historically provided their charters rent-free building space. But, in certain cases, it's been unclear whether the district or the charter school bears responsibility for maintenance or repairs on the buildings. Such issues have typically been resolved on a case-by-case basis, said Green. "It almost becomes this weird sort of negotiation when a charter asks the RSD to handle something on its building," he said. Charging rent would put the responsibility more concretely in the district's hands. Green said the RSD is still researching possible rent structures. It could charge schools on a square foot or per student basis; the district is also considering how to factor in building quality. Some charter school students still attend school in portable units erected after Hurricane Katrina, while several hundred others will soon attend cutting-edge school buildings that incorporate the latest in environmental and tech-friendly designs, like the new Langston Hughes charter school building in Gentilly. Shirley said the RSD's 38 charters already feel like they pay rent because they owe about $340 per student each year toward the School Board's bond debt. Because of existing state laws, the School Board's 12 charter schools do not contribute to the bond debt.

Inadequate state money for school facilities looms as a potentially larger problem than rent payments, said Nash Molpus, associate director of Tulane University's Cowen Institute for Public Education Initiatives. Most New Orleans school buildings "stink" because of decades of neglect or Katrina-related damage, according to Shirley, and the state provides no money for school building costs.

Molpus said 41 states provide schools with some kind of money for facilities. The state of Louisiana provides nothing. "We don't want anyone to be nickled and dimed" on repairs or rent, she said. "We know that the charters don't have the money. And we know the RSD doesn't have the money." The lack of a clear or public process for assigning charter schools to buildings adds to the confusion, Molpus said. Right now, the RSD leadership decides which of its charter schools go where. But the calculus can seem mysterious. "It's difficult to convince a charter to take on their (share) in terms of maintenance if they don't have any sense they are going to be in a building from one year to the next," Molpus said.

UNITED KINGDOM: Students and teachers in Birmingham will be able to test plans for rebuilding schools using a computer-game style virtual world. A project linking universities and software developers will allow schools to experiment with different furniture layouts and building designs. It has been likened to playing a computer game in which characters can move around a 3D environment.

Birmingham has plans to rebuild or refurbish 82 secondary schools. This virtual tool will help with one of the biggest Building Schools for the Future projects in the country. Birmingham City Council's education director, Sylvia McNamara, says it will give "students, school leaders, governing bodies and the local community the opportunity to creatively engage with design concepts". Allowing more people to test ideas, such as the furniture, fixtures and fittings, will improve the usefulness of the finished design, says Emma Leaman, who works for the council as a "transforming education officer". "It's intended to make sure schools are not just built with one person's vision," she says. The intention is to allow schools to explore their new surroundings before the buildings are opened - and to allow schools to engage with plans during the design process and before the construction begins. The on-screen avatars who explore the design include wheelchair users, allowing the design to be tested for suitability for disabled students.
The Learning Environments Virtual Reality Online Simulator (LEVROS) has been developed by a technology company, MOOFU, with the Institute of Education, University of London, Birmingham Local Education Partnership and Kenn Fisher of Melbourne University. Dr Fisher says that young people of the internet generation are used to such computer game environments. "Simulation is increasingly being used in many educational and training sectors to minimise laboratory and practical costs," he said.

NATIONAL: Congress last week approved a fiscal year 2010 spending measure that would provide level funding for key education programs, even as lawmakers and the Obama administration weighed the prospect of a jobs package that could include new education aid for cash-strapped states and localities. A House-Senate conference committee Dec. 8 agreed to a bill that would finance programs in the U.S. Department of Education at about $63.7 billion, a 2 percent increase over fiscal 2009, but a 0.7 percent decrease over the president’s request of $64.2 billion.

The conference committee rejected a Senate proposal to create a $700 million new grant program for school facilities. Instead, lawmakers may use a pending bill that would reshape the federal student-lending system as an opportunity to provide some funding for school facilities.

Meanwhile, President Obama’s Dec. 9 speech suggesting that new legislation could provide fresh funding for the nation’s infrastructure has some education advocates hoping that the package could include funding for school facilities. But it isn’t clear just yet how much, if any, aid in a potential jobs package would be steered toward K-12 education or to avert teacher layoffs.
For now, education organizations are flagging what they want to see in the potential jobs package. For instance, the 3.2 million-member National Education Association sent a Dec. 3 letter to members of the House of Representatives asking that they consider including an education jobs fund in the new legislation. The union is also seeking money for school facilities or an extension of school construction tax credits, additional Title I grants for districts, and special education money.

MASSACHUSETTS: With a group of Matthew J. Kuss Middle School students in attendance, state Treasurer Tim Cahill and Massachusetts School Building Authority Executive Director Katherine P. Craven presented school and city leaders with a ceremonial check for $113,402,487, representing the state’s reimbursement for the construction of the Viveiros, Letourneau and Fonseca elementary schools and Kuss.
Cahill and Craven said it is the largest check ever presented by the state to a municipality since the MSBA was created in 2004 to manage funding for school construction projects across the state. The program had previously been managed by the state Department of Education, but fell into $11 million in debt.

The city’s school projects were reimbursed under the MSBA’s Pro-Pay system, under which communities are reimbursed monthly as school construction costs mount. The regular payments enable all municipalities to avoid having to issue debt to finance the MSBA’s share of projected costs. Cahill said that in Fall River’s case, the system allowed the city to save about $48 million in local interest costs.
With the $113 million in hand, Superintendent Meg Mayo-Brown called the state’s financial commitment “a significant investment in all of our children.” “With these funds we are able to offer a state of the art learning environment that all of you so richly deserve and technology unmatched in the state,” Mayo-Brown said.

UAE: An environmentally friendly building and space for recreation and sports are some of the vital features school premises should include, according to some public school students. As part of the Abu Dhabi Education Council (Adec) 10-year strategy plan, 18 new buildings will be built by mid-2010 across the emirate of Abu Dhabi. In order to encourage student contribution in school designs, Adec sought proposals from students of 130 schools across the Emirates. A panel of judges chose 18 designs from which they selected the top three which were from Al Afaq Model School, Al Yarmouk School and Sir Bani Yas School. From these schools, 18 students were selected and each was given an award and a free laptop during the three-day Building Schools Exhibition Conference, which started on Sunday.

"The future schools design competition not only provided students with a valuable creative integrated learning opportunity, but also gave us insight into the features and elements of school design that appeal to students. A number of elements that we plan to incorporate into our new schools, such as sustainability features, space for creative activity and sports, and open environment, were important to these students as they were envisioning the future of schools in the emirate," said Salem Al Sayeri, acting director general at Adec.

The two-storey school building will include an auditorium, advanced scientific laboratory, computer room, music room, sports hall, an indoor swimming pool and gymnasium, library, large double-height dining space, eco-friendly courtyard, and a roof-top science class for outdoor learning. The schools will also be eco-friendly with energy efficient air conditioning systems, and water-saving devices. Orientations, insulation and shading have been carefully planned, and all the electricity required for daily consumption in classrooms will be generated at the school site. "The new school premises will have an environment-oriented culture, to help keep classrooms unpolluted and promote hygiene and cleanliness while learning. Today's announcement to launch one of the most basic projects is just a beginning," said Hamad Al Daheri, division manager for infrastructure and facilities at Adec. A deal was signed between Adec and Musanada, which will provide design and construction management services.

ALABAMA: There may be more costs involved in the $36 million dollar interest-free loan for a new school in Madison Alabama. The city of Madison's plan to pay for a new high school by way of an interest-free qualified school construction bond loan has hit a slight snag. "What we've found though is that the bond markets have changed since June when we first started talking about this and because of that they have to offer coupons," said Mayor Paul Finley. They're coupons that would make the bonds more attractive to a potential buyer. But that means the city would have to make up the cost of the coupon.

The first group of school systems getting stimulus construction bond money learned their borrowing cost would be an additional 1.19 percent per year. “What that would mean to Madison is a little over 300,000 dollars a year that would be added to the overall 36 million dollars that we have to pay back," Finley said. Madison is in the second group of schools and won't find out their rate until March 2010. If market conditions are favorable, supplemental coupons may not be needed.

NEW JERSEY: Teaneck was one of 111 school districts awarded the Readiness Emergency and Management for Schools (REMS) grant from the U.S. Department of Education; 334 districts applied nationwide. The $90,679 grant will be allocated over a period of 18 months and used to upgrade school security. The grant will provide training and practice in emergency response for teachers and administrators and will also access the potential vulnerability of school buildings, said district spokesman David Bicofsky.

An essential element for handling an emergency is the coordination of radio communications. "People have to be able to communicate with each other," Bicofsky said, noting that a breakdown in communication exacerbated the tragedy at Columbine High School. "One of the real faults is that emergency response agencies are often on separate radio frequencies," he said. The grant will provide for the purchase of radios and "go kits," containing security related items for teachers and administrators.

NEW JERSEY: Teaneck was one of 111 school districts awarded the Readiness Emergency and Management for Schools (REMS) grant from the U.S. Department of Education; 334 districts applied nationwide. The $90,679 grant will be allocated over a period of 18 months and used to upgrade school security. The grant will provide training and practice in emergency response for teachers and administrators and will also access the potential vulnerability of school buildings, said district spokesman David Bicofsky.

An essential element for handling an emergency is the coordination of radio communications. "People have to be able to communicate with each other," Bicofsky said, noting that a breakdown in communication exacerbated the tragedy at Columbine High School. "One of the real faults is that emergency response agencies are often on separate radio frequencies," he said. The grant will provide for the purchase of radios and "go kits," containing security related items for teachers and administrators.

NORTH CAROLINA: Jones County school officials are looking to replace both the high school and the middle school gymnasiums using $2.2 million in zero-interest Qualified School Construction Bonds. The county’s bonds were part of a $272 million total awarded by the N.C. Department of Public Instruction for school projects across the state. In the bond program, banks that provide zero-interest loans for school projects receive tax credits from the federal government as part of the economic recovery package

Jones officials haven’t been able to find a bank to buy their bonds at a zero-interest rate said Michael Bracy, Jones County Public Schools Superintendent. Jimmie Hicks Jr., attorney for the Jones County Board of Commissioners, said Jones County officials have called “virtually every bank with a brick-and-mortar presence in Eastern North Carolina” and even looked to financial institutions in Wall Street for funding partners. He said that no school system in the state has been able to get a bank to buy the Qualified School Construction Bond with a zero-percent interest rate. Some systems in the state have found financial partners, Hicks said, but lenders are looking to add on interest rates up to 2.9 percent for the loans. Franky Howard, county manager, said officials received a quote from BB&T for a loan with a 2.17 percent interest rate, which would tack on an additional $381,000 to the cost of the project that was not originally agreed upon. “The problem is, because the tax benefit isn’t as good as intended, the banks are charging supplemental interest,” Hicks said. .

The proposal is to build an entirely new high school gym on 27 acres of land adjacent to the current high school, said Kelly Michaud, district spokeswoman. The new middle school gym would be built on the current school property. The gyms were found to be in disrepair after an assessment was completed in the spring, Michaud said. They have to be evacuated in severe situations because of concerns of the roofs’ collapse, and they’ve been identified as liabilities by both the county and the schools’ attorneys.

OKLAHOMA: Voters in the Broken Arrow School District have given their overwhelming approval of the largest bond issue in state history, $295 million. Seventy-percent of the voters said yes to Proposition I for school and district improvements totaling $285 million. Another seventy-percent of the voters said yes to Proposition II for bus purchases totaling $10 million. 60 percent voter approval is required for successful school bond elections in Oklahoma. Voter turnout was a record for a Broken Arrow School Bond Election.
Superintendent Dr. Gary Gerber says construction on new schools and classrooms could start in about six months. The money will go towards three new schools, new buses, new technology, new gymnasiums and allow the district to get rid of 200 portable classrooms.

NATIONAL: The Environmental Protection Agency unveiled a new national strategy to enforce safe drinking water laws in small, rural communities and pledged to redouble efforts to protect children from toxic water in schools. The announcement came during a hearing by the Senate Environment and Public Works Committee held to examine reports of widespread water contamination and unsafe levels of lead and other toxics flowing through the pipes at thousands of U.S. schools.

As part of the new approach, EPA officials said the agency would pay particular attention to chronic violators and said in some cases they would ask small water systems to restructure or merge to improve their safety records. The hearing followed an Associated Press investigation showing that roughly one in five schools with their own wells violated the Safe Drinking Water Act in the past decade, a problem that until now has gone largely unmonitored by the federal government.

Under federal law, schools with their own wells — which represent about 10 percent of the nation's schools and are often located in isolated, rural communities — are required to test their water and report any problems to the state. In turn, the state is supposed to send all violations to the federal government. Larger, urban schools that get water from local utilities, however, are not required to test for toxics because the EPA regulates their water providers. That means there is no way to ensure detection of contaminants caused by schools' own plumbing. Lead, for instance, often concentrates at higher levels in school pipes than in most homes since they contain dozens of soldered joints where the metal can flake off. EPA officials said they would begin targeting repeat violators of the nation's safe drinking water law in January, but Boxer said she needed more specifics about how all schools' water systems would be monitored for compliance.

OHIO: Local school administrators are vowing to remain true to the principles of Jarod's Law, a state school safety law repealed as part of the state budget bill.That doesn't mean they'll miss it. The law was passed in 2005, two years after a tragic accident in Lebanon, where a 6-year-old first grader died when a cafeteria table fell on him. Legislators spurred by the tragedy proposed a law that required local boards of health to inspect schools annually for health and safety dangers. An advisory committee spent 18 months writing up comprehensive sanitary and safety guidelines ranging from inspecting equipment such as tables, bleachers and playgrounds to scheduling radon testing.

"The intent behind Jarod's Law was absolutely good," River Valley Local Schools Superintendent Tom Shade said. "It was a tragic incident. "There probably was some overarching." Similar sentiment was expressed to legislators as some schools complained about the costs associated with replacing equipment that didn't meet the law's standards and the employee hours spent ensuring compliance. The law was repealed as part of the 3,120-page state budget bill passed in August.

Tom Raga, a former state representative who had sponsored the original legislation, said Jarod's Law could have been revised instead of eliminated. "That put us back to square one, where the school districts have no state oversight to make sure they're not deferring maintenance and creating situations that are unsafe for our schoolchildren." If nothing else, Raga said, Jarod's Law changed the mindset of schools when it comes to safety.

NORTH CAROLINA: The battle over who should pay the costs of growth in Cabarrus County is intensifying as a major developer now says it shouldn't have to pay fees dedicated for new schools. Crescent Resources last month became the latest developer to sue the county over its adequate public facilities ordinance, which requires homebuilders to pay thousands of dollars per house or apartment being built if there aren't enough public facilities to serve new residents. The lawsuit follows an August decision in three similar lawsuits, where a judge ruled in favor of developers, saying the county didn't have the right to impose the fees. The county maintains it has the authority to collect the money and has appealed the judge's decision.

At stake are millions slated for new school construction that potentially could be refunded to homebuilders. If the courts side with developers, the county would have to figure out a way to pay for new school construction. That could result in higher property taxes. The county has collected more than $6.5 million since it imposing the fees in 2000 and has committed more than $4 million to ongoing projects. "The developers think they should be able to develop their property as they see fit and when they see fit, and it shouldn't cost them anything other than the normal development fees," said County Attorney Richard Koch. "But you've got to have seats for the kids that are generated (by the new development).

In early 2008, more than two dozen developers jointly sued Cabarrus County, protesting its ability to levy the fees. They've asked for refunds of more than $2.6 million. The county hasn't responded to that lawsuit. Cabarrus County adopted the ordinance in 1998 to help it deal with its rapid growth. Six years later, the N.C. General Assembly passed special legislation granting the county the power to enforce it. Rates have risen from $500 per single family lot in 2000 to the current $8,617. The county calculates each new house adds about $12,000 in school capital costs. Developers of multifamily units pay $4,153 per unit. Owen Furuseth, an urban studies professor at UNC Charlotte, said such ordinances are common in Sun Belt states such as Florida and California that have grown rapidly. In North Carolina, state lawmakers grant local governments the authority to impose the fees. Local governments must specify why the money is needed and what it will be used for.

NEW JERSEY: School officials in the Bordentown Regional School District are banking on the sun to provide for the district high school's energy needs and cut energy expenses long term. On Dec. 8 the school board is asking voters to approve an $8.5 million bond referendum to fund solar panels at the high school and new athletic fields, including a turf field.

Across New Jersey this year, 13 of 14 special-election referendums that included solar projects received voter approval, according to data from the Web site of the New Jersey School Boards Association, a federation of district boards of education that advocates, trains and provides resources for public schools. Last year nine of 13 such referendums also passed.
That's a good sign for Bordentown officials who will ask residents to approve a total project cost of $8,499,975, of which $5,879,039 will be raised by taxes. The district also will receive over $2.6 million in debt service aid from the state. Officials estimate that the project would save $127,238 annually in energy costs and earn an additional $424,125 per year from energy certificates.

School officials estimate that the sale of solar renewable energy certificates will be enough to pay the debt service so that taxpayers in Bordentown City, Bordentown Township and Fieldsboro will not see an increase in their school taxes from the project. Superintendent Constance Bauer said that projection takes into account potential changes in the energy market. "It's a win-win situation for us," Bauer said. "Installing solar addresses educational issues, environmental issues and the economy." Bauer noted that sometimes people in the community think the plan sounds almost "too good to be true" when they hear the district will recoup its investment. People sometimes don't realize that energy companies are required to seek renewable energy sources and buy the energy certificates, she said, adding, "It is important to seize the opportunity now at a time when interest rates are low too."

The interest in using solar energy to power schools is on the rise and is expected to continue, experts say. A hot topic at the New Jersey School Boards Association (NJSBA) annual conference this fall in Atlantic City, the solar trend is considered the fastest growing segment of school construction over the past few years, and is only expected to grow. The conference offered a seminar on funding solar projects, and conference attendees had an opportunity to tour the Atlantic City Convention Center roof, which is billed as the largest single array of solar panels in the nation.

According to data provided by the New Jersey Board of Public Utilities, as of Oct. 31, the state has funded a total of 66 K-12 public school solar projects in more than 30 districts. These projects have been funded in the form of rebates paid out through New Jersey's Clean Energy Program, a Board of Public Utilities initiative to promote clean power in government and the private sector. The program has been administered since 2003 and has distributed $31.5 million in rebates for solar power projects with a total capacity of 10,391 kilowatts, according to Public Utilities spokesman Doyal Siddell. That capacity, Siddell said, is enough to power almost 1,300 homes or 130 office buildings a year.

In a news release in August 2008 called "Schools Harness the Sun," the NJSBA highlighted the solar trend and noted that 68 more applications came in for solar funding rebates in the year up to the release, a figure that nearly matched the participation of New Jersey public schools for the previous five years combined. NJSBA spokesman Mike Yaple said since August 2008, another 24 school districts proposed funding solar through bond referendums, with 20 of 24 proposals passing. In December 2008 alone, eight of the 20 construction referendums involved solar.

PENNSYLVANIA: Though Pennsylvania students have made academic progress over the past five years, their schools are no safer, state education officials announced today. Roughly 68,000 incidents were reported for the 2008-09 school year statewide, about the same as five years ago. "Clearly, more must be done to change the climate of our schools, and there is room for improvement even within our schools that most students, parents and teachers would consider safe schools," said Gerald Zahorchak, Pennsylvania's Secretary of Education. Along with the school safety numbers, Zahorchak also said that there will be a push for school districts to better report violence and better tools for monitoring school safety.

MINNESOTA: When the Minnesota Legislature agreed to provide lease aid for charter schools a decade ago, the need was clear. Charter programs had trouble securing suitable, stable facilities. Many school districts wouldn't rent to them, and they had no ability to tax or get lower-rate loans. Consequently, the state offered aid to help them rent. But since then, some creative financiers and school insiders have found ways to work the system to their advantage -- at a disturbing cost to taxpayers. A recent Star Tribune investigation revealed that some growing charter schools have constructed buildings with high-cost junk bonds. Reporter Tony Kennedy's Nov. 29 story also revealed that several schools diverted building funds to pay mysterious fees for lawyers, consultants and school leaders. The practice must stop. While it is not illegal under the existing and inadequate laws, it is a clear waste of taxpayer dollars.

One example involved St. Croix Preparatory Academy, a charter that recently opened a $21.7 million building near Stillwater. Using junk bond financing, school officials paid about $140,000 in fees -- including some to themselves. In another case, a local municipality authorized bonds for a charter school in exchange for a $45,000 processing fee that was used to buy a new firetruck. That may be a worthwhile use of public money, but it has nothing to do with education. Charter programs pay off bonds with state aid designated for facilities -- not for unnecessary fees or city equipment. Under state law, charter schools are not allowed to purchase or construct buildings with lease aid. But as some charters grew and needed more stability and control over their facilities, they created affiliate, nonprofit entities to buy or build facilities and serve as landlords. In essence, the schools were renting from themselves. Technically that's legal, because nothing in the law addressed such an arrangement.

NATIONAL: Large local school districts would not be forced to give up their unused qualified school construction bond allocations to states to keep them from expiring at the end of the year under legislation proposed by the top tax writers in the House. The bill, introduced by House Ways and Means chairman Charles Rangel, D-N.Y., and ranking minority member Dave Camp, R-Mich., also would clarify that regulated investment companies such as mutual funds that purchase and hold tax-credit bonds should treat tax credits like cash and pass them through to shareholders. The legislation is designed to make a number of technical corrections to recently enacted laws, including the American Recovery and Reinvestment Act, which created several new tax-credit bond programs and expanded others. Members of the Senate Finance Committee are expected to introduce identical legislation soon.

“This bill responds to valuable feedback we have received to improve on how America’s tax laws are operating,” Rangel said. “I hope the House and Senate can swiftly pass this legislation.” The QSCB technical correction addresses a portion of the stimulus law that had market participants scratching their heads and crossing their fingers that the ARRA did not intend to block local school districts from carrying forward unused allocations. The QSCB program, which was created by the ARRA, required the Treasury Department to allocate $4.4 billion of a total $11 billion of the bonds this year to the 100 largest local school districts across the nation. The second $11 billion tranche of QSCBs will be allocated sometime next year.

However, the legislation did not give those districts the ability to carry forward unused allocations to the next year, leading some market participants to question whether that meant the districts had to transfer those allocations to their respective states, which were granted the ability to indefinitely carry forward unused cap.
An attorney with the Internal Revenue Service confirmed that interpretation of the law last month, telling a group of bond attorneys that the school districts’ allocations would expire if they do not issue the bonds by the end of the calendar year, unless they give the allocations to their states. Attorneys were skeptical this was intended by lawmakers, given that they went to the trouble of directly allocating the bond capacity to the large school districts, coupled with the fact that tribal governments — which received $400 million under the program — were given the ability to carry forward cap.

The ARRA requires the Treasury to allocate 40% of the $22 billion authorization directly to the 100 largest school districts, with the remaining 60% going to the states, which then sub-allocate that bond authority to localities. When the ARRA was drafted, lawmakers included a provision permitting regulated investment companies to pass through any tax credits obtained from tax-credit bonds to shareholders, to complement the potential for an unlimited amount of tax-credit Build America Bonds to be issued under the law. The technical correction would clarify how those credits would be treated. But given that mutual funds are not heavily investing in tax-credit bonds and no tax-credit BABs have been issued yet, sources said this provision does not hold any immediate ramifications. It could prove helpful in the future if regulated investment companies become big buyers of tax-credit bonds.

WYOMING: School construction projects in Natrona County got another chance this week when Gov. Dave Freudenthal announced his budget proposal for the 2011-12 biennium. Freudenthal recommended nearly $270 million for school capital construction in the next two fiscal years. That amount covers the top 40 projects in the state. The state School Facilities Commission evaluates and ranks buildings based on three weighted criteria: Building condition makes up 50 percent, capacity issues 35 percent and functionality 15 percent.

The governor’s proposal counters a recommendation to slash the school construction budget nearly in half, from $162 million to $82 million, from the Legislature’s Select Committee on School Facilities. That budget would include seven construction projects instead of 15 or 16, said Ken Daraie, director of the School Facilities Commission. The governor’s proposed amount includes $165.7 million for construction projects, $82 million for major maintenance projects and $18.6 million for component level projects. Component level projects are improvements that cost more than a district’s major maintenance budget, such as a new roof for a building in otherwise good condition.

Not tackling major remodeling needs could mean increased costs later. “Anything less than this (governor’s request), and we’re simply deferring maintenance,” Daraie said. “Deferring maintenance comes at an expense later.” Without school construction, major construction companies that moved into the state over the past five years might leave, said Mark Antrim, the Natrona County School District’s associate superintendent for facilities and technology. Low construction costs make now a good time to build, and saving money to spend later would only lower the value of those dollars, he said.

WYOMING: School construction projects in Natrona County got another chance this week when Gov. Dave Freudenthal announced his budget proposal for the 2011-12 biennium. Freudenthal recommended nearly $270 million for school capital construction in the next two fiscal years. That amount covers the top 40 projects in the state. The state School Facilities Commission evaluates and ranks buildings based on three weighted criteria: Building condition makes up 50 percent, capacity issues 35 percent and functionality 15 percent.

The governor’s proposal counters a recommendation to slash the school construction budget nearly in half, from $162 million to $82 million, from the Legislature’s Select Committee on School Facilities. That budget would include seven construction projects instead of 15 or 16, said Ken Daraie, director of the School Facilities Commission. The governor’s proposed amount includes $165.7 million for construction projects, $82 million for major maintenance projects and $18.6 million for component level projects. Component level projects are improvements that cost more than a district’s major maintenance budget, such as a new roof for a building in otherwise good condition.

Not tackling major remodeling needs could mean increased costs later. “Anything less than this (governor’s request), and we’re simply deferring maintenance,” Daraie said. “Deferring maintenance comes at an expense later.” Without school construction, major construction companies that moved into the state over the past five years might leave, said Mark Antrim, the Natrona County School District’s associate superintendent for facilities and technology. Low construction costs make now a good time to build, and saving money to spend later would only lower the value of those dollars, he said.

COLORADO: The Adams State College Board of Trustees moved forward with a solar power proposal that could supply the campus with as much as 30 percent of its power, should Xcel Energy and the governor's energy office sign off on the project. The board voted unanimously Tuesday to pursue a project that would supply the school with 5.3 megawatts of power per year, making it the largest such project on any of the state's college campuses. The bulk of the power would come from two ground-level arrays -one on a 5-acre parcel the school owns at the north end of campus near the Rio Grande and a 15-acre parcel that lines the south side of U.S. 160 across from the school. Part of the approval from trustees allows school administrators to pursue either a lease or purchase of the latter property.

Both ground-level arrays would have the ability to track the sun through the course of the day. The project would also install roof-mounted systems on Plachy Hall, the Student Union, Nielsen Library and the school's education building. Plans with Maryland-based SunEdison call for the school to receive power at or below what it currently pays for power, said Bill Mansheim, vice president for finance and administration at the school. SunEdison, which runs an 8.2-megawatt plant near Mosca, would build the plant.

A key component of the project's financing would have to come from the governor's energy office, which controls the distribution of $51.2 million in tax credit bonds. Should the college qualify for the Qualified Energy Conservation Bonds, it would have to repay the principal on a regular schedule, but those bonds generally do not require interest payments. Bond holders would receive a federal tax credit but would not get an interest payment. So far, $31 million in bonds remain and the energy office will select qualifiers between now and the end of January, said Todd Hartman a spokesman for the office. Construction of the project would also depend on the selection of the project by Xcel to take part in its Solar Rewards program.

TEXAS: Additions of security cameras, visitor tracking software and burglar alarm upgrades are drawing national attention to Keller schools. In this month’s issue of Security Magazine, a monthly publication for security industry professionals, Keller, ranked No. 18, is one of 23 school districts from around the country noted for cutting-edge security technology and protocols. "I’m very pleased we achieved the recognition," Deputy Superintendent Mark Youngs said. "It speaks of the commitment the [school] board and the public have made to district security."

The magazine surveys school districts, colleges and businesses in a variety of fields to develop the rankings. In the kindergarten through 12th grade education division, districts were ranked based on a comparison of spending levels and number of security officers per student, employee and square foot of its facilities.

The 2008 bond package helped land Keller on the list, with $1.25 million for additional security cameras, entry access controls, visitor check-in software and burglar alarms. Almost all of the 300 to 400 new cameras have been installed on district property – most of them filling in holes on the exterior of campus buildings – bringing the total to almost 1,000 cameras at 40 facilities. Each of the four high schools has about 100 security cameras. Schools with younger students have proportionally fewer cameras.

ILLINOIS: Governor Pat Quinn signed into law a bill that allows the State to issue federal stimulus-supported Build America Bonds and Qualified School Construction Bonds to fund critical capital projects such as roads, bridges and schools. This funding is part of Governor’s Quinn’s Illinois Jobs Now! capital construction bill, signed into law last summer, which will retain and generate about 439,000 Illinois jobs over the next six years. Illinois Jobs Now! will spur employment in the construction, transportation, manufacturing, environmental sectors and other industries.
“Putting people to work is my top priority. This important legislation gives us the financing tools needed to move forward with school construction and other capital projects that will put people to work and help get our economy going,” said Governor Quinn.

Senate Bill 1514 allows for the procurement and payment of Build America Bonds and Qualified School Construction Bonds, programs initiated by the American Recovery and Reinvestment Act of 2009. Qualified School Construction Bonds can be used for the construction, rehabilitation or repair of public school facilities. They may also be used for the acquisition of land on which such a facility is to be constructed. The bonds are tax-exempt and provide federal income tax credits in lieu of interest to purchasers. The State expects to issue up to $488 million in Qualified School Construction Bonds by the end of the first quarter of 2010. This is the full amount allotted to Illinois by the federal government.

The Build America Bond program authorizes state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010. The bonds can finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. Under the program, the federal government will reimburse Illinois for 35 percent of the bond’s total interest paid to investors. The State expects to issue its first Build America Bonds in the first quarter of calendar 2010.

VIRGINIA: As the Fairfax County Public School system searches for funds, "the school system is looking at all sources for revenues," said Dean Tistadt, chief operating officer of the school system. One of those is community-use fees, which would impact the 1,195 groups that use one of Fairfax County's 196 schools during weeknights and weekends. "Our buildings are in use more hours each week for community use than instructional purposes," Tistadt said. During fiscal 2009, the school system generated about $4.8 million in fees to use its buildings, according to the Facilities and Transportation Services department. However, it spent about $9.14 million in maintenance, utilities and cleanup on community uses. Tistadt said the school system is looking to close that $4.3 million gap by about $200,000. There are about 130 churches, more than 400 homeowner associations and condo groups, about 90 tutors and about 130 sports groups among the 1,195 organizations that use school facilities as meeting places. Tistadt said the schools are always being asked by community group leaders to increase hours and access to facilities.

MINNESOTA: With millions of dollars in savings at stake, residents of the Montgomery-Lonsdale School District approved a $29.7 million bond proposal during a special election on Tuesday. Taxpayers approved the measure with 1,106 votes in favor and 702 against — a 61 percent majority. The proposal, which calls for much-needed structural and maintenance upgrades at the district’s combined middle and high school, was bolstered by a pair of loan programs that drastically softened its tax impact.

In August, Montgomery-Lonsdale was one of a dozen Minnesota school districts to be awarded school construction bonds at low- or no-interest for 16 years through a stimulus-funded tax credit to the institutions who finance the bonds. The state allowed the district to use the no-interest bonds for up to $10.7 million of its construction proposal. The remaining loan amount will be issued in so-called Building America Bonds, which entitle the district to a rebate equal to 35 percent of its interest payments on the bonds for 25 years. According to calculations by district financial consultants, the savings through reduced and rebated interest payments will amount to $10.5 million. The yearly tax increase for the owner of a $175,000 home will be approximately $253; the increase on a $250,000 commercial property will amount to $614 per year.

In preparation for the election, district officials carried out an exhaustive public information campaign that included public meetings, presentations for community groups and several district-wide mailers. District officials also conducted dozens of tours inside the secondary school, the core of which was built in 1936.

NATIONAL: New issues of Build America Bonds may rise 40 percent from this year’s monthly average to total $110 billion in 2010, JPMorgan Chase & Co. strategists said. The stimulus initiative, under which the U.S. Treasury pays 35 percent of the interest for states and municipalities, may produce $9.17 billion a month in deals next year, JPMorgan estimates, as more issuers seek lower net borrowing costs than on traditional tax-exempt financing. The increase would help to buoy the value of bonds in the broader municipal market.
Following are descriptions of pending sales of municipal bonds; the timing and amounts may change.

Virginia College Building Authority intends to take interest-cost bids from investment banks seeking to underwrite as much as $447 million of bonds to finance capital projects at public institutions of higher education in the state. As much as $390 million of the deal ranging in maturity from 2015 through 2030 may be bid as Build America Bonds. University of California plans to sell as much as $539 million of Build America Bonds backed by gross revenue from its five medical centers, which totaled $5.6 billion last fiscal year, according to Moody’s. The deal will fund expansion and renovation projects at the medical centers for UC San Diego, UC Irvine, UC San Francisco and UC Los Angeles. The fifth center, associated with UC Davis, is in Sacramento.

Chicago Board of Education, overseer of the third-largest U.S. public school system, plans to sell $254.2 million of taxable Qualified School Construction Bonds through Goldman Sachs. Investors will be compensated with federal tax credits under the stimulus program designed to provide zero- or low-interest construction loans to public schools.

CALIFORNIA: Issues have been raised over the legality of the distribution of authority to issue bonds under the federal Qualified School Construction Bonds (QSCB) Program. Bond counsel for many districts throughout California specifically questioned whether or not the delegation of the responsibility to allocate the tax credit authority under the QSCB Program by California Department of Education complied with the federal law’s definition of “State.” Secondly, there is question about whether a lottery to allocate the authority was in keeping with federal and state law.
The Department of Education, the State Treasurer’s Office, the Governor’s office and others are working to find a solution to this dilemma. Most recently, the Department of Education issued a letter to awarded districts informing them that legislation is being pursued that would expressly authorize, approve and ratify the 2009 allocations announced earlier this year by the Department. We understand that urgency legislation, which would take effect upon the Governor’s signature and requires a two-thirds vote in both the Assembly and Senate, will be introduced in early January.
The bottom line is we believe that districts will not be able to sell bonds by the end of 2009.

WASHINGTON: Millions of dollars of what was supposed to be interest free bonds to help school districts across the country will likely go unused and rural districts where unemployment is rampant will likely be some of the biggest victims, some education leaders say. In Hoquiam, Washougal and elsewhere around the country, School Boards and superintendents are turning away what was supposed to be “free money” to help with school-related construction projects. Under a provision of the American Recovery and Reinvestment Act, local school districts come up with voter-approved bonds, levies or general fund dollars for big construction projects and the federal government provides a lump-sum, interest-free amount of money upfront to help the districts save their cash starved operating budgets from spending anything more than necessary. But for some school districts, it’s not working.

NATIONAL: The Treasury Department Wednesday highlighted guidance on tax-credit stripping, Build America Bonds, and other programs stemming from the American Recovery and Reinvestment Act as high priorities in its 2009-2010 priority guidance plan. Of the 315 projects listed, the document highlighted 10 separate regulatory projects involving municipal bonds that Treasury and Internal Revenue Service officials would like to tackle between now and the end of June.

At the top of the list for munis is additional guidance on tax-credit bonds. Although the document does not specify which topics that guidance would address, market participants expect the Treasury to address how issuers or investors can strip the tax credit from the bond and sell the two separately. While many bond attorneys and other market participants for months have sought stripping guidance, believing it could expand the market for tax-credit bonds, Treasury and IRS officials have said they are still working through a number of complicated issues, and also have warned that stripping should not be viewed as a cure-all for the tax-credit bond market.

ARRA authorized the sale of $11 billion of taxable tax-credit qualified school construction bonds this year and so far at least $1.5 billion if the debt, in 119 issues, has been sold, according to Thomson Reuters.

In addition to stripping, several programs created or expanded by ARRA are guidance priorities. Most of the ARRA-related bond programs are set to expire after Dec. 31, 2010. The Treasury hopes to get out additional guidance on BABs, addressing a number of questions that have emerged over the last few months. Additional guidance on qualified school construction bonds is also on the agenda.

NEW YORK: Mayor Michael R. Bloomberg has made charter schools one of his third-term priorities, and that means that in New York, battles and resentment over space — already a way of life — will become even more common. He and his schools chancellor, Joel I. Klein, have allowed nearly two-thirds of the city’s 99 charter schools to move into public school buildings, officials expect two dozen charter schools to open next fall, and the mayor has said he will push the Legislature to allow him to add 100 more in the next four years.

In Harlem, parents have chafed and picketed against an expanding charter school network, the Harlem Success Academy, which is housed in several public schools. In Brownsville, Brooklyn, a plan to close a failing elementary school and let a charter take over the building was shelved after a lawsuit. At P.S. 15, teachers and parents were furious about plans for PAVE to expand next year, after having been told the school would be gone by the end of this academic year. Several hundred parents filled a middle school auditorium in Marine Park, Brooklyn, in the spring to rail against a proposal to house the new Hebrew Language Academy there. The school eventually found a home in a yeshiva.

Charter schools, privately run but publicly financed, are generally nonunion, freeing them from labor restrictions. They have gained traction with their promise of innovative teaching methods and more flexible work rules for teachers. Arne Duncan, President Obama’s education secretary, has told states that they must remove impediments to charter schools as a condition of winning so-called Race to the Top grants. In New York, as in most states, charter schools receive no money for construction, forcing them to raise millions on their own — or find a willing host. In other cities, where charters are only begrudgingly accepted by public school officials, tensions between public and charter schools sharing a building would be unheard of, because the charters are forced to find their own homes.

Mr. Klein has aggressively eased the way for charter schools, citing their popularity — most have far more applicants than seats. “There are so many talented people out there, and I want them to come to New York,” Mr. Klein said in an interview. “Why would we want to put up barriers to that?” Todd Ziebarth, the vice president of policy for the National Alliance for Public Charter Schools, called support like Mr. Klein’s “extremely rare.” “In starting a new school, you are also launching a small business,” Mr. Ziebarth said. “Space is the most difficult and challenging thing to think about and figure out.”

NEW YORK: Mayor Michael R. Bloomberg has made charter schools one of his third-term priorities, and that means that in New York, battles and resentment over space — already a way of life — will become even more common. He and his schools chancellor, Joel I. Klein, have allowed nearly two-thirds of the city’s 99 charter schools to move into public school buildings, officials expect two dozen charter schools to open next fall, and the mayor has said he will push the Legislature to allow him to add 100 more in the next four years.

In Harlem, parents have chafed and picketed against an expanding charter school network, the Harlem Success Academy, which is housed in several public schools. In Brownsville, Brooklyn, a plan to close a failing elementary school and let a charter take over the building was shelved after a lawsuit. At P.S. 15, teachers and parents were furious about plans for PAVE to expand next year, after having been told the school would be gone by the end of this academic year. Several hundred parents filled a middle school auditorium in Marine Park, Brooklyn, in the spring to rail against a proposal to house the new Hebrew Language Academy there. The school eventually found a home in a yeshiva.

Charter schools, privately run but publicly financed, are generally nonunion, freeing them from labor restrictions. They have gained traction with their promise of innovative teaching methods and more flexible work rules for teachers. Arne Duncan, President Obama’s education secretary, has told states that they must remove impediments to charter schools as a condition of winning so-called Race to the Top grants. In New York, as in most states, charter schools receive no money for construction, forcing them to raise millions on their own — or find a willing host. In other cities, where charters are only begrudgingly accepted by public school officials, tensions between public and charter schools sharing a building would be unheard of, because the charters are forced to find their own homes.

Mr. Klein has aggressively eased the way for charter schools, citing their popularity — most have far more applicants than seats. “There are so many talented people out there, and I want them to come to New York,” Mr. Klein said in an interview. “Why would we want to put up barriers to that?” Todd Ziebarth, the vice president of policy for the National Alliance for Public Charter Schools, called support like Mr. Klein’s “extremely rare.” “In starting a new school, you are also launching a small business,” Mr. Ziebarth said. “Space is the most difficult and challenging thing to think about and figure out.”

NEW HAMPSHIRE: In 2008, Gov. John Lynch balanced the state budget by bonding up to $80 million in school building aid due cities and towns in the coming biennium, but because the general fund did not end up with a deficit, no money was borrowed. In a few weeks, however, for the first time ever, the state will borrow the $40 million needed to pay its share of school building aid. The Legislature also authorized the bonding of $49 million in school building aid for fiscal 2010 and $46.3 million in fiscal 2011. If it continues on that path, state Treasurer Catherine Provencher told lawmakers, by 2019 or so, the debt service on the bond will be larger than the annual amount of school building aid. That's a certain path to fiscal ruin.

Bonding aside, when a legislative study committee looked at the upcoming school building program, members decided it was unaffordable. Using a formula to determine a school district's ability to pay, the state contributes between 30 percent and 60 percent of the cost of building a new school or renovating an old one. The state's share totals, on average, about $45 million per year. That's not much in a two-year budget of some $11 billion. But without state aid, school districts, rich or poor, would be unable to pass the bonds necessary to upgrade or replace schools.
A House committee is expected to vote next week to suspend aid to all school building proposals not previously approved. Lynch, in an interview with New Hampshire Public Radio's Josh Rogers, said he is open to a suspension. He also wants to look at revamping the program to further target aid to the neediest school districts. Suspending aid would do a huge injustice to school districts that have worked for years to put school improvement plans before voters next year.

Concord, which is moving ahead with a massive plan to consolidate and replace what are in some cases century-old elementary schools, got its paperwork in early. It would not, as things stand, be affected by a suspension. But Claremont, which has already spent $300,000 on plans to renovate its aged high school, hasn't yet been approved for state aid and isn't scheduled to vote on its $22.9 million high school renovation and addition project until spring. Suspending state aid in January would delay or doom the Claremont project.

Passing school construction bonds is never easy, even in well-off communities. And in every community, no matter what its tax base or median income, there are poor and middle-class people struggling to hang on. Targeting aid beyond the current spread penalizes them the most. Capping the amount eligible for school construction costs so the state isn't paying for, in the words of Senate President Sylvia Larsen, Cadillacs in one community while others make do with Edsels, might make sense. But targeting school building aid raises other issues. The state's contribution to school construction costs was one of the justifications for setting the state's obligation to fund an adequate education for every student absurdly low. Reducing or eliminating building aid to some communities would provide grounds for going back to court.

TEXAS: Second-graders at Westwood Terrace Elementary School will walk into their classrooms to a surprise on the level of “Extreme Makeover: Home Edition.” They'll see brightly painted walls and decorative touches, thanks to high school volunteers who gave up some of their holiday vacation to help. Corporate volunteers are expected to help to complete makeovers in five classrooms. “I feel the school is beautiful, but it's going to look even better in their classrooms,” Principal Gracie Guess said.

The overhaul is part of a character education program the students are studying called Just Bee. The program's author, Saul Serna, flew in from Illinois to coordinate the effort. “It's not about painting the walls and changing the look,” he said. “It is about creating an environment where the children are inspired to develop their character and values to positively impact our world.” This is the third school that Serna, with his wife, Jan Mansfield, has made over as part of the program. Environment, he said, is crucial to stimulating students. Volunteer Jane Vinogradova, a Jay senior, thinks so, too. Her family is from Russia, and she said that when she attended school there, her classrooms were lively and decorated with depictions of fable characters. The school's classroom walls are painted in neutral colors typical of most public schools. Vinogradova said she wanted to help amp up the vibrancy. “I just want them to be happy and comfortable in their environment,” she said. “They spend seven hours here. It's a home away from home.”

OHIO: A school district near Cincinnati is suing a plastics plant, accusing it of continuing to release chemicals in the air that exceed government safety standards. Three Rivers School District closed an elementary school across the street from the plant in 2005. The district says it has been unable to sell the building and is burdened by crowded classrooms. Students were shifted to two other elementary schools, and some courses are taught in cafeterias or storage areas.

The lawsuit seeks compensatory and punitive damages. The plant had been cited with several environmental violations. Terri Fitzpatrick, a spokeswoman for plastics maker Lanxess Corp., which previously owned the plant, says the company took steps to enhance environmental controls. The plant continues to operate under a joint agreement between Lanxess and Ineos Group.

TEXAS: Some area school districts have taken advantage of two federal stimulus programs giving them a break in the bond market, saving millions over the next couple of decades. But while the deals are good, the timing has to be just right, keeping some districts from cashing in. Others have passed, saying the terms aren't right for them.

The Plano and Garland school districts recently sold a total of $167 million in bonds, some under the federal Build America Bonds and Qualified School Construction Bonds programs. The federal programs essentially allow the districts to pay a lower interest rate. "I believe we saved $15 million over 25 years," said Linda Madon, executive director of financial services in the Plano Independent School District.
Meanwhile, the Dallas school district sold bonds before the programs began, and Mesquite was ready for its bond sale before program details were worked out. The Richardson district rejected them, citing potential high costs, a lack of flexibility and market concerns.

The varied outcomes show the complex nature of school bond finance and the federal programs. Several school districts said their financial advisers spent days creating charts comparing the benefits and disadvantages of traditional bond sales with those under the federal programs. "There are some additional requirements in reporting and additional oversight," Madon said. "The savings were just so tremendous that we just couldn't pass that by."

School districts regularly sell bonds to pay for major construction such as new buildings, as well as renovations to old buildings and major equipment purchases. They pay the bonds back with interest over many years. Like the interest rate on a home mortgage, the bond interest rate determines how much the district must pay back. Recently, districts have sold bonds at 4 percent to a little less than 5 percent annual interest. Under the Qualified School Construction Bonds program, districts can sell bonds that pay no interest. Garland used the program for $10 million of a roughly $30 million bond sale, saving hundreds of thousands of dollars, said Rene Barajas, assistant superintendent for finance. To make non-interest-bearing bonds attractive to buyers, the government gives them a tax credit that probably saves them more than they would have earned on an interest-bearing bond. In bond sales, timing is everything. Interest rates can change daily, and there are willing buyers on some days, but not others. Plano sold $32 million in bonds through the same program but could find no buyers at zero percent interest, Madon said. So the district will have a one-time payment of 1 percent of the bond amount – still less than the district would have paid in long-term interest. The district, which recently sold $137 million in bonds, negotiated several complicated deals. It sold some through the regular market, some through the QSCB and still others through Build America Bonds.

One drawback of the federal programs is their complexity. Districts can use QSCB bonds only to pay for certain projects. The Build America Bonds program, meanwhile, allows districts to pay buyers a higher interest rate that is subsidized in part by the government. Districts can decide whether to use the subsidy to reduce the property tax rate used for paying off the bonds or to pay district operating expenses. Because of the tricky timing required and the complex details, some districts opted to sell bonds the old-fashioned way, resulting in higher interest rates and higher payments. Dallas, for instance, could have sold about $73 million in bonds under the QSCB, but the district had sold $400 million before the program started and wasn't ready for another sale, district spokesman Jon Dahlander said. If the district sells bonds next year, financial officials will re-examine the program, he said.

The programs just didn't work for other districts. Fast-growing Frisco ISD qualified for $20 million under the program but didn't use the option, said Richard Wilkinson, assistant superintendent for facilities and finance. "Recently, when we needed to sell bonds, no one in the market was picking these bonds up," he said. "We couldn't take a chance on going out and not having the bonds picked up." The Richardson district analyzed the QSCB program and decided against it, said spokesman Tim Clark.

There are downsides to using either program, administrators pointed out. Dividing bonds and selling several batches at once under different programs, as Plano and Garland did, can lead to higher administrative costs. The projects that can be paid for by the qualified construction bonds are limited. Also, federal regulations associated with the bonds can lead to higher construction costs, they said. And a lot of extra paperwork is involved. "Our financial advisers have spent a lot of time and effort working out the details," Madon said. "For those kinds of savings, it's worth it."

MINNESOTA: To people on the outside, they might just look like old buildings. But to people who call Winona home, the facades of longtime landmarks are their past, part of the story that weaves the tapestry of what Winona is today. For this reason, the Historic Preservation Commission is unapologetic in its efforts to identify and protect landmarks that stand throughout the community. Most recently, the HPC has drawn the ire of District 861 school board chair Stacey Mounce Arnold and a local newspaper editor for announcing its intention to see four Winona elementary schools placed on local and national historic registers.

The designations would mean that current and future owners would have to go through a special process to raze or significantly alter the exterior appearances of the buildings. Arnold has decried the measure as an end run to prevent the district from closing Central Elementary, the smallest and arguably the most historically interesting of the buildings. Historic designation would drive off potential buyers of the building, she said, because of the limitations it would place on the property.

But proponents of historic preservation say the assertion is wrong, and that historic designation can actually attract buyers interested in repurposing a building using the tax breaks and grants such designation can provide. Being added to the local or national historic registers would have no impact on what the interior of a building is used for, and numerous examples exist throughout Minnesota of historic school buildings that have been turned into condominiums, apartments and community centers.

Addressing the school board last week, Winona Historic Preservation Commission member Bob Sebo said the commission is in the process of obtaining funding for studies required prior to designation. “We are in no way saying they must remain schools, but we are saying they are important to the city,” he said. Sometimes, said Sebo, an architectural study finds that a structure has been too altered to be considered authentically historic, as was the case with the Old Wagon Bridge. “When we learned it had been too altered, we ceased our work,” he said. Sebo said he expects the nomination and designation process to be complete in 2010. Building owners do not have to participate in the process for a building to be identified by local authorities as historically significant. To determine its historical significance, architects examine the origin and use of a building, noting particularly its architect, architectural features, and purpose. Historic designation, particularly on a local level, provides added protection from demolition as the preservation commission and city officials must agree before a historic building can be torn down. It can also provide valuable funding avenues and tax credits for those seeking to restore or reuse a building, most notably thanks to a statewide preservation movement to save historic school buildings.

KANSAS: Projects for the $370 million bond issue for Wichita schools are moving along faster than expected, administrators said. The school board approved the second sale of bonds this week.With the recession hitting construction companies hard and federal subsidies readily available through stimulus money, the district has been able to find good deals, said Linda Jones, chief financial officer. "We've issued more than one-third of our bonds because interest rates and construction bids have been so good," she said.

Board members approved the sale of $32 million in Qualified School Construction bonds, which the federal government subsidizes by providing tax credit to the bond buyer, rather than the district paying the buyer interest. To make up a gap in the amount of tax credit the federal government will pay and the actual interest rate on the bonds, Jones said the district will pay 1.35 percent on the $32 million. That interest rate is lower than the roughly 4 percent the district will pay on $188 million in bonds it issued this spring. Jones said the federal subsidy on the latest bond is expected to save the district about $10 million.

The $32 million will be spent entirely on the new northeast high school because of federal wage laws the district must follow with the subsidized bonds. A larger construction firm will most likely take on the contract for the high school, and a larger construction firm is more likely to be versed in the federal wage laws, Jones said.

GEORGIA: The Carrollton school system is looking to expand and President Barack Obama’s stimulus package includes a tax credit bond program that could provide an opportunity to get started in early 2010. The Qualified School Construction Bond Program allows investors who purchase the bonds to receive a tax credit, and allows school systems to use that money for capital projects. Georgia is allowed to sell up to $250 million in bonds in the program.

The bonds would allow the Carrollton school system to acquire funding for its capital projects tax free and pay the money back within 16 years. In addition, during the time the school system was paying back the bond funds, the money would go into a fund and the school system would make interest on the money. The money could be paid back with special purpose local option sales tax dollars or with general funds. The Carrollton school system has been considering the program as a way to fund needed renovations in the high school bathrooms and the old gym as well as add a 38-classroom wing onto the middle school to help with future growth. The Board of Education approved a resolution to request the funds in September and administrators applied for $8 million to pay for the projects. “When you look at it, it’s a no-brainer,” said Steve Spofford, chief operating officer for the school system. “Not only is it free money, it’s money that you’re going to make money on.”

But things have changed since the program was unveiled to the school systems. In a few school systems throughout the country that have already tried to sell the bonds the bonds haven’t done as well as the schools had hoped. “(The feds) didn’t give enough of a credit to investors for these bonds,” Spofford said. “Now when they buy the bonds they want to buy them with what they call a supplemental coupon. A supplemental coupon means they want to attach a 1 or 2 percent of the loan amount paid annually to the investor.” The way the program is designed the money for the projects would not come from the state or federal government, bu t from the investors. With the economy being so difficult the tax credit may not be a big enough incentive to sell the bonds. But because the systems aren’t allowed to pay the bonds off early, that makes what could have been an inexpensive way for schools to do some expansion or renovation much more expensive. It adds about $1.8 million to the bill for the Carrollton system. Right now, bond councils across the country are trying to work with the federal government to reach an agreement that would make the program work for the school systems.

That problem, and just the fact that it has taken so long to roll out the new program, has led the state to postpone the scheduled start date. The program was originally set to roll out in two waves in 2009 and 2010. Now, there is only one — the systems will receive approval in February 2010 and must sell the bonds by Dec. 31, 2010. Carrollton City Schools had received approval last week, but will now have to wait until after February to start selling bonds under the new time line. “It is a good thing for us,” Spofford said. “It gives us time to work this thing out.”

ARIZONA: A federal stimulus program that uses federal tax credits to spur nationwide school construction might not be as attractive as was intended for Arizona school districts needing new schools. The American Recovery and Reinvestment Act allotted $372 million in tax credits over two years to the Arizona Department of Education, $16.1 million in credits to Mesa Public Schools and $21.4 million in credits to Tucson Unified under the Qualified School Construction Bonds program. The program provides federal tax credits in lieu of interest payments to school-bond holders and lease-to-own certificate holders who buy into the program at the state or school-district level. The intent of the program is to let districts shift part of the cost of bonding or state lease-to-own projects to the federal government through the tax credits, thereby stimulating more construction and business activity. A number of issues surround the program, however, raising questions about whether districts, particularly poorer districts that need the most help, will take advantage.

Among the concerns: Districts that agree to be part of the program must comply with federal contracting requirements, which include labor standards that require higher wages to be paid on projects financed through the program. Some observers worry that the school bonds will be less marketable to buyers if tax credits instead of actual interest payments are offered as part of the payback. In the lease-to-own programs, the feds require that new school facilities built under the program be put up as collateral to private investors until the lease-to-own terms are up and the state pays in full for the new facilities.

An Arizona law passed in September gives the Arizona School Facilities Board permission to make up to $100 million in lease-to-own deals through the Education Department's tax-credit allotment. The state board can sell certificates of participation to financiers to fund new school construction. Those certificates would be paid down by the state over a set period, with investors getting back their initial investment plus the tax credits offered by the federal government. "You borrow money, and whatever project you use the money for becomes collateral to ensure that you pay it back," said Judy Richardson, vice president of public finance for Stone & Youngberg LLC.

The School Facilities Board has approached school districts around the state - including Cave Creek Unified School District, which wants to expand Cactus Shadows High School - about using the method to finance new school construction projects. But investors, Richardson said, are not enthusiastic about the lease-to-own certificates First, it is unclear how much resale value the certificates or the bonds might have given that there are no interest payments attached. Additionally, those bonds floated by poorer school districts would have lower credit ratings, which further affect their marketability. "The tax credits just aren't that attractive," Richardson said. "There aren't that many buyers that would rather have a tax credit instead of interest."

Some school districts that have acquired bond capacity through the state Education Department's program have actually had to sweeten interest payments in order to attract buyer interest. The School Facilities Board is considering the same approach.Mesa Public Schools is not enthusiastic about using its bond allocation, according to Gerrick Monroe, assistant superintendent of business and support services. The district would have to get voter authorization for a new bond program. With declining enrollment, the district does not need new schools. And with federal labor standards forcing the district to pay higher construction wages to use the bonds, the district might get only $10 million worth of work for the price of $15 million. "We might be cutting off our nose to spite our face," Monroe said.

Cave Creek Unified's governing board already voted to move forward with the program, however. The money will not come directly from taxpayers; the district has been waiting for a $12.25 million allocation from the School Facilities Board since 2006, said Kent Frison, Cave Creek's associate superintendent of operations and finance. "Certainly, whether the project moves ahead or not is all based on whether the state is able to raise the funds," Frison said. "We'll move ahead in the planning stage because we don't want to be behind in case they are successful." Dean Gray, interim executive director of the School Facilities Board, said lease-to-own could fund about seven school projects statewide, with money available as early as February.

CALIFORNIA: The San Ramon Valley school district is leaning toward applying for a low-interest, $25 million federal stimulus loan to install solar panels that officials says would lead to big electricity savings. Margaret Brown, assistant superintendent of facilities, said the district could net $7 million to $10 million in energy savings after 16 years. After 25 years, which is considered the life of the equipment, savings would equate to $23 million to $30 million, Brown said. If the district goes ahead with the plan, the panels could be installed this summer, she said.

The district is one of 43 in the state that, through a lottery, is eligible to apply for low-interest "qualified school construction bonds," district spokesman Terry Koehne. "By all indications (going solar) is a major, major energy savings," he said.

Since the eligibility announcement earlier this fall, district administrators and the school board have been going through a complicated analysis of the benefits of adding solar panels to a handful of its more than 30 schools. The board wants to make sure the district's savings assumptions, which factor in a rise in energy costs, are correct so the schools wouldn't be expected to pay more money in the future. The money would have to be paid back at 2 percent interest over 15 years, Clarkson said. The $7 million to $10 million estimate factors in the cost of loan repayment. It also includes money the district would get back from Pacific Gas and Electric Co. rebates. Maintenance is covered by the panel provider. Brown said the panels would supply about 30 percent of the district's electricity. Clarkson said officials haven't determined which schools would get the panels, which would be installed in parking lots rather than on rooftops. He said four contractors have sent proposals, which range from having panels installed in six to eight school sites, primarily middle and high schools.

NATIONAL: A unique window of opportunity has opened for states and districts to finance school construction and renovation. Through the Qualified School Construction Bond (QSCB) program, created by the American Recovery and Reinvestment Act (ARRA), the federal government will provide tax credits, in lieu of interest paid by the state or district, to bondholders.
A study from the Congressional Budget Office and the Joint Committee on Taxation has found that although such tax-credit bonds are “a relatively insignificant source of financing” when compared to the $1.7 trillion in so-called tax-benefit debt issued by states and localities between 1991 and 2007, they offer a more efficient use of such funding and are projected to grow.

The states and districts that issue the bonds will be responsible only for paying back the principal, making it possible for them to purchase land, build new buildings and/or renovate existing buildings at a savings of up to 50 percent. For each of 2009 and 2010, $11 billion has been allocated to states and certain large local education agencies based on their share of Title I Basic Grant funds. They will have until the end of each successive year—2010 and 2011—to use their allocations. States may either directly issue the bonds on behalf of schools, or suballocate this authority to localities and districts. The tax credit bondholders receive, set by the U.S. Treasury Department, will approximate the amount of interest typically paid on such debt.

NATIONAL: A unique window of opportunity has opened for states and districts to finance school construction and renovation. Through the Qualified School Construction Bond (QSCB) program, created by the American Recovery and Reinvestment Act (ARRA), the federal government will provide tax credits, in lieu of interest paid by the state or district, to bondholders.
A study from the Congressional Budget Office and the Joint Committee on Taxation has found that although such tax-credit bonds are “a relatively insignificant source of financing” when compared to the $1.7 trillion in so-called tax-benefit debt issued by states and localities between 1991 and 2007, they offer a more efficient use of such funding and are projected to grow.

The states and districts that issue the bonds will be responsible only for paying back the principal, making it possible for them to purchase land, build new buildings and/or renovate existing buildings at a savings of up to 50 percent. For each of 2009 and 2010, $11 billion has been allocated to states and certain large local education agencies based on their share of Title I Basic Grant funds. They will have until the end of each successive year—2010 and 2011—to use their allocations. States may either directly issue the bonds on behalf of schools, or suballocate this authority to localities and districts. The tax credit bondholders receive, set by the U.S. Treasury Department, will approximate the amount of interest typically paid on such debt.

NORTH CAROLINA: Macon County property owners will see a 1.5-cent tax increase in 2010. County commissioners voted for the increase unanimously. The increase will help fund school-construction projects, including the new North Macon K-4 School and renovations for Nantahala School. The decision came as the board evaluated different options for funding the projects. In early 2009, commissioners and the school board agreed to delay construction of North Macon School and put the project on hold because proceeding with debt payments would have required a tax increase amid an economic downturn. The urgency to move on these projects derived from several factors, especially current construction costs and interest rates.
"I don't have a crystal ball, but probably you can't get construction costs any lower than what they are right now," county manager Jack Horton said. "Or interest rates much lower than what they are right now. "Although it is an additional burden on the tax rate, it is an investment that will not only provide facilities for our children for years to come, I think it will have some economic benefit and put some people to work as well."

North Macon School has been estimated to cost $15 million, including the architectural and engineering work. The funding option commissioners approved would include a $10.4 million USDA loan, financed at an estimated 4.25 percent interest rate over 25 years. They will also use a type of new-construction funding called a "QSCB allocation" for $3.5 million of the cost, at an estimated 1.97 interest rate over 15 years. The financing package includes a "QZAB" loan, which can only be used for renovations, to fund $1.8 million in Nantahala School improvements. This loan will be financed at 1.97 percent over 15 years. In addition, a portion of needed Franklin High School renovations will be paid for with $1.3 million from reserved funds in the county's general fund. The estimated annual debt service payments for the construction and renovation projects would be approximately $1.3 million a year.

Asked to explain the benefits of the USDA loan and why they want to do the loan at this particular time, finance director Evelyn Southard said that commissioners had given her a cap as to what the maximum effect on the tax rate could be. Southard said the USDA is the only the vehicle the county has for financing these school projects that will go beyond 20 years of annual debt service payments. "And it has to go beyond 20 years to stay in that tax rate that you're looking for," Southard said. She added that USDA loans can go up to 40 years, though the commission decided they do not want to go beyond the 25 years of debt service for North Macon School. Southard also explained that there is an application process you have to go through to even get the 4.25 interest rate with the USDA loan. (They must send proposals to banks and get construction bids before applying to the Local Government Commission to approve the loan). The QSCB allocation of approximately $3.5 million for North Macon has already been set - the school system applied for this figure and was approved, according to Southard. Last year, the county appropriated some up-front costs ($980,000) from the general fund for architectural and design work and that budget amount was transferred.

Beale said they had come to the point where they needed to make a decision about North Macon School. If they want to proceed with construction at the end of the next school year, they had to get their loan application and other information into the Local Government Commission. Additionally, they needed to commit in order to schedule the FHS and Nantahala renovations for when school gets out. Horton explained that if the county does not pursue the QSCB and QZAB loans and commit to them before Dec. 31 they will revert back to the state and be reallocated to other school systems. He said if the county does commit to the projects, then Brigman could write a letter to the state and the state can reserve those funds for the county for the 2010 calendar year.

KENTUCKY: A new arts pavilion is the most recent in a series of district construction projects this year totaling approximately $52 million — half of it courtesy of the federal government’s stimulus funding. Jefferson County Public Schools will use approximately $26 million from its general fund and the remaining $26 million from stimulus in the form of qualified school construction bonds to pay for the projects, said Mike Mulheirn, executive director of facilities and transportation for JCPS. Although the district will have to repay the bonds, it will not have to pay any interest, Mulheirn said.

The board has already approved some of those stimulus projects, including $26 million at Valley High School for a new 800-seat auditorium and 1,500-seat gymnasium, along with several other renovations. Others projects this year will include new library media centers at Bowen and Roosevelt Perry elementary schools and heating and air conditioning and renovations at four other schools. Mulheirn said the district typically spends $25 million annually on renovation and construction projects, which include everything from roof repairs and heating and air-conditioning replacement to building media centers and other additions.

But the stimulus funding has allowed the district to speed up its construction wish list, completing projects that otherwise would have been undertaken several years down the road. “The stimulus funds will help us get some extra projects done without costing the taxpayer any extra money in interest,” Mulheirn said, adding that the district will get approximately $29 million in stimulus funds next school year. “These are all projects that have been approved as part of the district’s overall facility plan.”

OHIO: A campaign promise of federal help to build a new school may turn into more than expected for Elgin Local Schools. The district was told prior to the Nov. 3 bond issue that passing the bond issue would guarantee Elgin at least $2.5 million and possibly up to $6 million in interest-free loans thanks to federal stimulus money. That has increased to more than $11.97 million, school officials said Thursday. Ohio received about $267.1 million through the American Recovery and Reinvestment Act of 2009 to use towards public school construction projects. The Qualified School Construction Bonds program provides federal tax credits that bond holders can receive in lieu of interest, which is meant to significantly reduce an issuer’s cost of borrowing money for school construction projects.

Elgin was part of a pool of $100 million set aside for school facility projects that were in the planning stage in districts that had not yet passed a bond issue. Out of 39 bond issues on the Nov. 3 ballot, Elgin interim Superintendent Jim Craycraft said only nine passed. “With stimulus money you got to spend it or it goes back, because it is meant to stimulate the economy,” said Craycraft. “They need to get the money out. That more than doubled the amount we were supposed to get.” What it means for Elgin is that, when the district sells bonds to cover the construction costs, it will cost less to borrow the district’s share of the $35.9 million project.
Elgin Treasurer Kim Reynolds said how much less and what it will mean for taxpayers is not yet known because the state is still studying how best to distribute the stimulus money. “I think there will be some kind of savings,” she said. “But it’s just unknown at this time.” She said school officials will release more information once they can determine the savings to taxpayers.

About 52 percent of voters passed a combined 7.49-mill, 28-year bond issue and a 1-mill continuous improvement levy on Nov. 3, according to unofficial Marion County Board of Elections results. At the time the district estimated it would cost the owner of a $100,000 property about $229 per year.The money will help construct and maintain a centralized kindergarten-12th grade building that will be built on the current Elgin High School campus and demolish the district’s existing four buildings. The Ohio School Facilities Commission will cover about $20 million of the project’s cost.

MARYLAND: U.S. Education Secretary Arne Duncan, U.S. House Majority Leader Steny H. Hoyer (D-Md.) and State Superintendent of Schools Nancy S. Grasmick visited C. Paul Barnhart Elementary School in Waldorf recently to discuss the importance of early learning and full-service community schools.
Barnhart is one of three elementary schools in Charles County with a Judy Center, which provides comprehensive services for at-risk schoolchildren from birth through kindergarten and their families.

Hoyer, along with Sen. Ben Nelson (D-Neb.), recently introduced the Full-Service Community Schools Act of 2009, which would provide $200 million a year for five years to fund grants for partnerships between school districts and community-based organizations, which is the Judy Center model. The Senate established Judy Centers, named for Hoyer's late wife, with a $7 million grant in 2000 to provide comprehensive services, including career counseling for parents, health care, nutrition and early childhood education.

INDIANA: Gov. Mitch Daniels recently declared the new referendum process is "working pretty darn well" in Indiana. Capital construction projects and operational increases for schools have failed more often than not since November 2008 – a 58 percent failure rate overall and 65 percent when considering just capital-project votes. Under the previous remonstrance process involving dueling petition drives, school projects had a 50-50 history of passing.
"It’s about the economy more than it is an anti-public school issue. The bottom line is people are looking at their pocket books and they are empty," said Dennis Costerison, executive director of the Indiana Association of School Business Officials. "I think districts will struggle getting construction referendums passed until the economy improves."

Lawmakers in 2008 went to a referendum process for most construction projects when property tax increases are at stake. It already existed for operational increases though it was used rarely. Both types of referendums, when approved, are kept outside any calculation of property tax caps. This means homeowners and other property taxpayers have to pay for the projects even if they have reached the established limits on property taxes. "I think people are showing a lot of common sense," Daniels said. "If somebody makes a good case locally for more spending or more taxes to pay for it, Hoosiers are showing they are willing to go for that. "If you can’t make the case, they’re turning it down, sending people back to the drawing board."

So far, referendums seeking additional money for a school district’s operational expenses are more likely to succeed. Construction projects are a harder sell. Only six have passed since implementation of the rule, and four of those were in November 2008. Since then, it has been virtually impossible. "We certainly have a concern that over time that things need to be updated and to be renovated occasionally," said Nate Schnellenberger, president of the Indiana State Teachers Association. "While everyone understands that right now may not be the time to spend resources, once the economy turns around I hope voters will approve them. It will be interesting to see if the statistic remains the same in the future."

There were some concerns when referendums were originally debated that they would lead to crumbling buildings, especially in urban and poorer districts. But Chuck Little, executive director of the Indiana Urban Schools Association, thinks voters will do the right thing. "I think there is great possibility and opportunity in referendums. Indiana doesn’t have a history of referendums but it will develop, and Hoosiers will understand that they have an effect on school policy," he said. "They can show their pride through voting." So far, the data don’t bear out any pattern on referendums when comparing wealthy with poorer districts. Of the referendums that passed, four districts had per-capita incomes above the statewide average, and six were below. Of those referendums that failed, nine districts had per-capita incomes above the statewide average, and six were below. "We are not seeing a pattern of inequity, which is good," Espich said. "It’s direct democracy in action. There is a greater desire by the public to be empowered. They are better educated, and this gives them the chance to make decisions."

CALIFORNIA: A Nevada County contractor has landed his second school building job in less than one year, using an innovative arrangement that keeps local tax dollars in the community. In June, Grass Valley's Sierra Foothills Construction Co. and Tru-Line Builders used the arrangement to win the $13.2 million contract for the second phase of expansion and renovation at the Sierra College campus in Grass Valley. That work was paid for through a local, tax-funded bond issue. Now, Sierra Foothills has landed a job with the Nevada City School District to build a new bicycle repair shop at Seven Hills Middle School using the same process. Planning and engineering is expected to cost $500,000, and construction to cost another $500,000, paid for by an anonymous donor. The district's contract with Sierra Foothill also calls for retrofitting bathrooms and sidewalks to accommodate disabled people at Deer Creek Elementary School, according to owner Keoni Allen. The cost for that work has not been established yet, he said.

The innovative arrangement that enabled a local builder to win the contract is lease-lease back, which is allowed under the California Education Code, said Dick Cowan, formerly of Sacramento-based Clark and Sullivan Construction. The firm completed the first phase of the Sierra College job and worked with Allen and Brady to land the second phase. “It's a common misconception that there's only one way” to build or expand a school, Cowan said. Under the process, contractors must prove they can do the work for a guaranteed price. When the job is awarded, the school district leases the construction site to the main contractor, Cowan said. That allows the contractor to go out and negotiate for the local subcontractors and suppliers he wants. Once the job is done, the contractor leases the site back to the school district for occupation. “That means we get to do the jobs with local tax money and keep the business here in town,” Allen said. “We're proving the local construction industry can do this kind of work quickly and efficiently.”

Most publicly funded construction continues to be governed by state regulations that require agencies to award contracts to the lowest bidder. But about 10 percent of California's school districts are taking advantage of the provision for lease-lease back in the Education Code and using it to keep dollars local and have greater local control over design and building, said Cowan, who now works for a large, statewide construction firm. In addition, the regular bidding process “caused change orders and disputes that weren't the most economical way to go in the end,” Cowan said. “The real cool part is we have a new skill unit the college (work) helped impart to the local construction industry,” Allen said.

NATIONAL: In July we analyzed funding for K-12 school facilities in the student loan reform bill, the Student Aid and Fiscal Responsibility Act, as passed by the House Education and Labor Committee. The full House passed the bill in September and preserved the $2.0 billion per year school repair program. Although the Senate has not yet acted on a similar student loan reform bill, a version drafted by the Senate Health, Labor, Education and Pensions Committee was leaked a couple of months ago. The leaked bill suggests the Senate is headed in a different direction than the House when it comes to funding school facilities construction.

Both of these pieces of legislation provide a glimpse into the federal government's first major foray into directly funding K-12 school facilities and neither propose an insignificant amount of money. The most striking difference between the two versions is that the House includes a two-year, formula-based investment in K-12 school facilities, and the Senate bill creates a five year competitive program for K-12 school repair, renovation, and construction.

The House bill distributes funds for repair, renovation, and modernization among states and school districts according to each state and district's share of total federal Title I dollars. This means that every school district in the nation that receives Title I funds will receive some share of its state's school facilities funds after the state withholds up to 1 percent for administrative purposes.

Unfortunately, the House bill spreads just over $2.0 billion in each year over more than 13,000 eligible school districts. In the end, it's likely to amount to a drop in the bucket relative to the total expense of modernizing schools. Additionally, the House bill prohibits spending on new school construction, with the exception of $30 million each year for Louisiana, Mississippi, and Alabama.
The leaked version of the Senate bill, however, avoids the danger of spreading the funds too thin by creating a competitive program administrated by the states but funded by the federal government. Essentially, the program distributes $500 million each year from 2010 to 2014 to states according to their share of Title I funds, much like the House program. However, once states receive their funds, they must create a competitive grant program through which they will award funds to selected school districts and charter schools within the state. [Includes side-by-side comparison chart and more analysis.]

DISTRICT OF COLUMBIA: The D.C. government has never been particularly generous when it comes to making space for public charter schools. It grudgingly accepts applications from charters hoping to acquire vacated school buildings but, more often than not, opts to sell the properties to private developers or, worse, lets the buildings rot. So it's important to celebrate when the city gets it right -- as in the recent renovation of an old elementary school into an incubator for fledgling charters.

Draper Elementary School on Wahler Place in Southeast closed at the end of the 2008-09 school year. The facility will now serve as home to two new public charter schools until they outgrow it. Achievement Preparatory Academy Public Charter School is a middle school in its second year of operation; National Collegiate Preparatory Public Charter High School is in its first year. The project comes courtesy of the D.C. Charter School Incubator Initiative, a partnership between a nonprofit established by Sallie Mae and the D.C. Office of the State Superintendent of Education to help charter schools find appropriate and affordable space. The U.S. Department of Education is helping to fund the Draper renovation.

Finding appropriate facilities is a struggle charters face nationwide. Many end up crammed into church basements or take out expensive loans to turn warehouses into school space. That's why the reuse of Draper to accommodate up to 500 public charter school students is so significant. Think, for instance, what would have happened to E.L. Haynes Public Charter School and Capital City Public Charter School -- two of the city's highest-performing schools -- if the initiative had been unable to give them space to operate and grow. Look also at the promise already being shown at Achievement Preparatory in boosting student performance. Test scores from 2007 show that 29 percent of students entering the school were proficient in reading and 35 percent were proficient in math; in the 2008-09 school year, 56 percent of the students were proficient in reading, and 82 percent were proficient in math. And, 83 percent of these students are economically disadvantaged.
There are six incubator sites in the city. Three are former schools that Mayor Adrian M. Fenty agreed to make available. We hope that's a sign of a new willingness by the city to make sure surplus schools are used for public education by allowing charters to buy or lease them.

TEXAS: The Bill & Melinda Gates Foundation pledged $10 million to help the Knowledge is Power Program (KIPP) secure a $62 million bond. This will help the charter system start construction that will allow enrollment to double to more than 11,500 students in five years. KIPP hopes to reach 21,000 students at 42 schools in Houston over the next decade. “KIPP's $100 million expansion plan, announced in March 2007, had stalled some because of difficulties securing credit in the bad economy, officials said. Gates' help is expected to save KIPP about $10 million by lowering the interest rate on the 35-year note.”

The Gates Foundation is making a total of $30 million available for high-performing charter schools. KIPP is the first charter school to receive such a guarantee from the foundation, but others, including Houston's YES Prep Public Schools, could follow suit under the program. “Financing facilities is one of the biggest challenges charter schools have,” said David Dunn, executive director of the Texas Charter School Association. “The financial support helps charter schools, public campuses funded with tax dollars, overcome one of their biggest obstacles: finding money to build campuses. Unlike their traditional counterparts, charters systems cannot hold bond elections or levy tax rates.”

MINNESOTA: Park Rapids Area High School and Frank White Education Center will undergo indoor air quality, maintenance and energy efficiency projects with the help of federal stimulus money. “The school really needed these improvements,” said Superintendent Glenn Chiodo. “What really put us in the position to be able to do them was the availability of stimulus dollars.” The total cost of the project is estimated at $12,232,417. Stimulus money will cover about $7.6 million, Chiodo said. “Without that money, there’s no way we would have been able to do this,” he said.

The school district will issue three series of bonds for the project: general obligation alternative facilities bonds, series 2010A; general obligation alternative facilities bonds, series 2010B (qualified school construction bonds); and general obligation capital facilities bonds, series 2010C (qualified school construction bonds). Improvements will include a boiler replacement at the high school and roof work, along with energy improvements and deferred maintenance at the high school and Frank White Education Center. Chiodo said the earliest that work could begin on the projects is next spring. “The boiler work is the top priority,” he said. The rest of the work would ideally be next summer when school is out, he said.

MINNESOTA: Park Rapids Area High School and Frank White Education Center will undergo indoor air quality, maintenance and energy efficiency projects with the help of federal stimulus money. “The school really needed these improvements,” said Superintendent Glenn Chiodo. “What really put us in the position to be able to do them was the availability of stimulus dollars.” The total cost of the project is estimated at $12,232,417. Stimulus money will cover about $7.6 million, Chiodo said. “Without that money, there’s no way we would have been able to do this,” he said.

The school district will issue three series of bonds for the project: general obligation alternative facilities bonds, series 2010A; general obligation alternative facilities bonds, series 2010B (qualified school construction bonds); and general obligation capital facilities bonds, series 2010C (qualified school construction bonds). Improvements will include a boiler replacement at the high school and roof work, along with energy improvements and deferred maintenance at the high school and Frank White Education Center. Chiodo said the earliest that work could begin on the projects is next spring. “The boiler work is the top priority,” he said. The rest of the work would ideally be next summer when school is out, he said.

KENTUCKY: More than 1,200 students know they will be walking through the doors of South Warren Middle and High School next year, but they don’t know what they’ll see once they come through. Currently, 30-foot cathedral ceilings and hallways as wide as city streets are quietly awaiting the first echoes of students. And as workers begin lining those hallways with lockers and painting some of the classroom walls for the school to open in the fall, officials said they can hardly wait to begin what will soon become the new “community school.” South Warren Middle School Principal Eddy Bushelman looked out the windows Thursday of the middle school library, envisioning the athletic fields coming up from the fields just outside. “This is going to be so pretty at night when it’s all lit up with ball fields,” Bushelman said. The principal said the school will build a family and community loyalty as students will grow from seventh to 12th grade in the building.

The 330,000-square-foot school will be the largest school building in the state. But its mere size - which would require a 2-mile rope to wrap around just the building - is only one of its impressive qualities. The entire facility sits on 88 acres and carries a $68 million price tag for the building, greenhouse and athletic fields/buildings. South Warren has gained national recognition for becoming the largest building constructed of insulated concrete forms in the country. The walls are made of two sheets of insulating Styrofoam filled with about 8 inches of concrete. The method of insulation is reported to drastically reduce heating and cooling energy use and has been used in other Warren County schools. More than a mile of these walls separates the far high school entrance from the far middle school entrance of the boomerang-shaped facility. The crux of the two wings is shared by a giant concrete amphitheater, which is on its way to becoming the largest school auditorium in the area with more than 750 seats.

Students from the different schools will not be able to access opposing wings without an adult, according to Bushelman and South Warren High School Principal Terry Cook. In fact, other than the auditorium, the two wings are connected only by a shared kitchen that has separate serving areas and “cafetoriums” on either side. The facility continues to expand with the middle school wing facing Rich Pond Road and the high school wing facing Nashville Road. Already, mahogany cabinets with glass fronts are lining the state-of-the-art science classrooms - decked out with the newest experiment tables and equipment. The libraries are built like giant fish tanks with midsized windows dappling the walls on the first and second floors to allow passers-by to see “the learning taking place.” Architect Kenny Stanfield, with Sherman Carter and Barnhart, said the library/media centers were designed to provide a “Barnes & Noble” atmosphere that gives students a comfortable place to engage. Hundreds of classrooms showcase giant windows that flood the learning spaces with natural light. A future courtyard can be seen from some of the windowed hallways along the building. Many beams are still exposed as workers continue welding and wiring throughout the building, but in the middle school gymnasium, six basketball goals have been installed and await their first three-point shots. Both principals agreed that the “Great Halls” in the central area of each wing add a dramatic flair to the building; they have giant entryways and a balcony overlooking two staircases that merge at a landing.

CALIFORNIA: Up to 15 acres of solar panels could be installed within city limits using bonds worth $25 million allocated to Porterville Unified School District for school facilities construction through the 2009 American Recovery and Reinvestment Act. The funds allocated to PUSD are part of $700 million in Qualified School Construction Bonds available this year statewide. A three-way partnership is currently in place between PUSD, Southern California Edison and the city of Porterville as the school district determines how to best use the funds. PUSD trustees unanimously approved a resolution to authorize the issuance of Certificates of Participation with relation to the QSCB program by Dec. 31. Superintendent John Snavely said the project, which may encompass three different solar sites, has the potential to be the “envy of the state.” Snavely said the output of the installations could be from 2.5 to 7 megawatts, or potentially higher. With only 2.5 megawatts, he estimated the district could potentially cover 40% of their current energy costs. Were it to go about 100%, the district would be able to sell the extra power for a profit. “There are real opportunities to help the finances of the district,” Gibbs said.

According to Gibbs, the money will be used for school construction “one way or another,” though the solar installation is currently the district’s top choice. QSCB funds must be utilized for facility needs. The money does not have to be repaid for 15 years, and the interest rate is likely to be extremely low.

NEVADA: According to a report presented at a recent Clark County School Board meeting "backlog of maintenance work orders had nearly tripled to 12,937 from 4,327 at the end of July 2008." It continues “the district’s maintenance department categorizes its service at the third level — “managed care,” which means school interiors appear only “average,” with minor blemishes on the exteriors. Buildings are generally well lighted and clean, although heating and cooling systems periodically fail.” Paul Gerner, Clark County schools' associate superintendent of facilities, said, "Current levels of maintenance services are unsustainable and not in the long-term interests of the district."

The Las Vegas Sun points out that "most campuses are not in obvious neglect. But some of the chores that were once part of the daily routine are being put off, increasing the risk for larger and more expensive problems." It goes on to state that “the district has cut its operating budget by more than $133 million to about $2.1 billion. The facilities division — which includes maintenance, landscaping and grounds — was understaffed even before the most recent budget cuts, district officials said. Divisions across the board were cut about 12 percent, but the cuts were especially felt in the maintenance department because it was lean from a prior $15 million reduction in funding.

The facilities division staff dropped to 453 full-time employees this year compared to the 489 in 2008. According to the industry standards set by the Association of Physical Plant Administrators the maintenance department should require nearly 1,200 workers to handle the jobs. The School Board presentation indicates “The district’s carpentry and painting divisions are the most severely understaffed, operating at less than 15 percent of the recommended levels. The budget cuts cost the landscaping and grounds division about 26 full-time employee positions, out of 188. The loss is particularly felt at some of the high schools that no longer have a daytime employee to help with trash collection and custodial duties.”

OKLAHOMA: Voters in two Oklahoma City metro-area school districts have approved major school bond issues. Voters in Edmond approved a $36.1 million bond issue to build new classrooms at seven schools, improve athletic facilities at all secondary schools and allow the purchase of new buses. The project includes a $6.6 million renovation of Memorial High School. And voters in the Putnam City School District passed an $80.6 million bond proposal to pay for 100 construction projects across the northwest Oklahoma City district. Other school districts approving bond issues on Tuesday were Fox in Carter County, Mounds in Creek County, Amber-Pocasset in Grady County, Haywood in Pittsburg County and Shawnee in Pottawatomie County.

VIRGINIA: Construction should soon be underway on eight additional school renovation projects in Tazewell County. The work is being made possible through Tazewell County’s share of the federal stabilization dollars. In all, the eight projects total approximately $1.69 million. The work will include air-conditioning for all of the classrooms at Graham Intermediate School; new lockers at Graham Middle School; new windows for Abbs Valley-Boissevain Elementary School; air-conditioning for classrooms as well as replacement lockers at Tazewell Middle School; an air-conditioning system for the library at Tazewell High School; new student lockers at Richlands Middle School; and air-conditioning for the library at Richlands High School.
All eight of the projects are needed and welcomed. The school system just recently completed five other school renovation projects, which included new heating and air-conditioning systems for five elementary schools. The federal stimulus dollars also will help to finance the upgrade of cafeterias and kitchens throughout the school division, according to School Superintendent Dr. Brenda Lawson.

While some school systems in the Commonwealth are using their stabilization dollars for salaries and personnel, Lawson said officials were encouraged to use the funding in the way it was originally intended by the state and federal government to assist with job creation and helping to stimulate the economy. Work on the second round of school renovation projects could begin by the year’s end. Lawson said all eight projects should be completed by next summer. It ís good to see stabilization dollars being put to a worthwhile use in Tazewell County. Anything that can be done to improve the learning environment for both students and staff is welcomed. Students in Tazewell County deserve the best learning environment possible, including air-conditioned classrooms. While it is not very hot outside right now, classrooms will certainly be stuffy again next summer.

NATIONAL: Secretary of Education Arne Duncan announced that application requirements for the final $11.5 billion in State Fiscal Stabilization Funds under the American Recovery and Reinvestment Act (ARRA) of 2009 are now available. In exchange for this unprecedented funding boost, the department is asking states to provide some basic information on teacher distribution, the collection and use of data, standards and assessments, and support for struggling schools.
Identifying what works and does not work in the classroom will promote a shared responsibility for improving educational opportunities and outcomes that engages all of the key stakeholders – students, parents, teachers, principals, administrators, community leaders, business leaders, and elected officials at every level. Taken together, these four commitments will help ensure outstanding teachers in America's schools, arm educators with the tools and data needed to determine what does and doesn't work in our nation's classrooms, align curricula and assessments with rigorous standards that prepare young people for college and careers, and transform our lowest-performing schools.

The application, requirements, and summary of the requirements can all be found here: http://www.ed.gov/programs/statestabilization/applicant.html.

TENNESSEE: Communities throughout Tennessee will receive financing to build or repair schools as a result of the Tennessee State School Bond Authority’s (TSSBA) action. The TSSBA finalized plans to sell up to $184 million worth of Qualified School Construction Bonds (QSCBs) as part of a program created by the federal American Recovery and Reinvestment Act. The bonds are tax credit bonds that provide a federal tax credit to the investor on a quarterly basis. The bonds may also pay a supplemental coupon to the bondholders on a quarterly basis

The TSSBA selected a bond underwriting team, approved a final bond resolution and finalized documents needed to move forward with the bond sale. The TSSBA had preliminarily approved the loans in September and, after some revisions in loan amounts and the addition of the City of Kingsport as a new borrower, the revised list of project loans were approved by the TSSBA. The TSSBA will invest the proceeds from the bond sale in the State Pooled Investment Fund (SPIF) and will disburse the funds to the communities to pay the expenses related to their school construction projects.

The communities authorized to receive portions of the bond money will be required to spend the proceeds on qualified projects within three years of the bond sale and comply with federal Davis-Bacon regulations. The sale is expected to be completed with bond proceeds available for disbursement in early December. Additionally, the communities are required to enter into binding contracts for at least 10 percent of their allocation of the bond proceeds within six months after the bond sale.
Of the total bond proceeds, Memphis City Schools will receive $42,960,000 and Metropolitan Nashville Public Schools will receive $21,760,000 for various projects. Those two school systems received direct allocations from the federal government because they were among the nation’s top 100 local educational agencies with the largest numbers of school-age children from families living below the poverty level. [Includes a list of participating communities that were selected through a competitive application process to receive bond proceeds.]

NATIONAL: As you drive past downtown Los Angeles on the 101 freeway, one building grabs your attention, its concrete and steel tower swooping and twisting like a roller coaster. A multitiered group of oversize geometric structures arranged around concrete and grass courtyards, this complex is not, in fact, an amusement park. It’s the new Central Los Angeles High School No. 9, which opened in September. The building, designed by the edgy Austrian firm Coop Himmelb(l)au, tosses aside any preconceived notion of what a school should look like.

But then, creative architects have always contradicted conventional school-design wisdom, moving beyond the one-room schoolhouse, the concrete superblock and (more recently) the mall-like gigantosaur. Richard Neutra and Robert Alexander’s University Elementary School (1950) in the Westwood section of Los Angeles, now called the UCLA Lab School, is a collection of restrained brick and masonry buildings with large windows, wood built-ins and, in some cases, sawtooth skylights, which are situated around shaded, grassy fields, a redwood grove and a creek. Taliesin Associated Architects, founded by Frank Lloyd Wright, created the Prairie School (1965) in Racine, Wis., a series of, yes, prairie-style buildings clad in red brick, their low-lying, elegantly curved profiles hugging the landscape. The Modernist pioneers Eliel and Eero Saarinen, with Larry Perkins, designed the Crow Island School (1940) in Winnetka, Ill., as a series of L-shaped ‘‘one-room school’’ modules — each with its own courtyard — to provide a sense of both intimacy and spaciousness.
Nowadays, equally unconventional architects continue to brave bureaucracy and parental scrutiny in the name of innovation.

Still, the question remains: do highfalutin designers really make better learning spaces? Steve Joost, the chief financial and operations officer at the Prairie School, says that while he absolutely loves the school’s design — including carpeted floors, wood finishes and human-scaled dimensions — maintaining such a complex can be a challenge. "It’s kind of like working in a piece of art," he says. And Andrea Schoening of Coop Himmelb(l)au trusts that people will eventually embrace High School No. 9’s most exceptional elements. Says Touitou, "I believe that kids have to be surrounded by beauty as soon as possible. It just never hurts."

MARYLAND: Fueled by federal stimulus dollars, school districts in Baltimore City and Baltimore County are speeding up construction projects that have been on hold for years for lack of funding, including the possible construction of the first new city school in a decade. While most of the money - $300 million to be spent statewide over four years - will go toward essentials such as new boilers, chillers, roofs, doors and windows - the city hopes to use some of its dollars to build a new Lexington Terrace school on the west side and an athletic facility on the east side. Dozens of schools would get new media centers.
"It is a tremendous boost," said J. Keith Scroggins, chief operating officer of the city schools. "It is like getting seven years of allocation from the state in a two-year period."

The infusion of money means that after the last school bell rings in June, work crews will begin a construction push that is expected to reach every school in Baltimore. The city school system has an estimated $1 billion of deferred maintenance on its schools, an amount that would take many years to catch up on without a boost in funding. In the county, the money is expected to go toward funding high school renovations, said the district's chief financial officer, Barbara Burnopp. "We won't do a different project," she said, "but we will do it more quickly." The county is systematically going through its aging high schools and putting in new windows, heating and cooling systems and doing other upgrades, including adding to science laboratories and technical education classrooms.

As part of an effort to get the economy going, the federal government is authorizing 100 school systems in the country with a high percentage of poor students to issue tax credit bonds for school repairs and construction. In Maryland, only three jurisdictions have received the bond authorization: city schools, which can issue $116 million; Baltimore County, which will get nearly $40 million; and Prince George's, which will get about $50 million. In addition, the state is allowed to issue another $100 million that will go toward funding projects across the state. This fiscal year, Baltimore County's expenditure for all capital projects was $224 million, including funds from the state. Baltimore City, in contrast, has a budget for school construction and renovation of about $83 million. The school systems and the state must pay back the principle over 15 years. Bondholders are given a credit on their federal income tax, according to David G. Lever, executive director of the Maryland Public School Construction Program.

Baltimore County issued its bonds Oct. 27 and the city expects to do so next month after getting approval on a technical detail by the Board of Public Works later this month. Because the Maryland General Assembly passed a bill several years ago allowing the city schools to issue a maximum of $100 million in bonds, the school system will have to return to the legislature this winter to ask that the $100 million cap be raised. The state pays for up to 94 percent of school construction and renovation costs on projects in the city and 50 percent in Baltimore County.

VERMONT: Renovation projects for Charlotte and Hinesburg schools edged closer to funding with voters in both towns approving bond proposals. The votes place those projects in line for federal zero-interest bonds, which will be allocated Nov. 13.
Under the federal stimulus bill, the U.S. Treasury has allocated money for zero-interest bonds called Qualified School Construction Bonds, and Vermont's authorization for 2009 is $24.8 million for repair and renovation. The Hinesburg School District plans to renovate the Hinesburg Community School wing built in 1969, and to improve the 1952 addition.

VERMONT: Renovation projects for Charlotte and Hinesburg schools edged closer to funding with voters in both towns approving bond proposals. The votes place those projects in line for federal zero-interest bonds, which will be allocated Nov. 13.
Under the federal stimulus bill, the U.S. Treasury has allocated money for zero-interest bonds called Qualified School Construction Bonds, and Vermont's authorization for 2009 is $24.8 million for repair and renovation. The Hinesburg School District plans to renovate the Hinesburg Community School wing built in 1969, and to improve the 1952 addition.

NEBRASKA: The Omaha Public Schools is mailing packets to begin finding a designer for a new middle school at 132nd and State Streets. The school could open in fall 2012. The new school is expected to be paid for with a portion of nearly $40 million in construction bonds authorized to OPS by the federal stimulus program. The district will use two kinds of bonds, which don’t require a public vote.

According to the Internal Revenue Service, Build America Bonds are available to state and local governments for building improvements. In this case, the federal government will pay up to 35 percent of the interest to investors in the bonds. The interest-free Qualified School Construction Bonds are specific to public schools and qualify investors for income tax credits in lieu of interest, according to the IRS.
District officials expect sale of the bonds to be completed this month. The bond proceeds also will build an elementary school at 42nd and V Streets and help pay for Saddlebrook Elementary, which opened this school year in northwest Omaha.

ALABAMA: Brick and mortar dreams for a new high school will soon become reality, built on the foundation of a massive influx of interest-free federal funding. Hartselle is receiving $22.115 million through the Qualified School Construction Bond program. The money is part of the federal economic stimulus program designed to shore up the nation’s economy and can only be used for new construction or repair of existing school facilities. “We’re thrilled to receive the funding and it’s going to allow us to do things we’ve not been able to do before,” Mayor Dwight Tankersley said. “It’s a once-in-a-lifetime opportunity and we need to take advantage of it."

In Hartselle’s case, the money will go towards the construction of a new high school. That move will allow the existing high school building to be used as a junior high and free up that facility to ease crowding at the system’s three elementary schools. It also sets in motion a plan to help pay for the estimated $40 million cost of constructing a high school. When they first learned they could possibly receive the funding, city leaders said they would introduce a 1-cent sales tax to cover the additional cost. The 1-cent tax would generate some $1.6 million annually. A sales tax would have to be approved by the city council. It would take about a month after its passed to institute. A property tax requires a vote of the people.

Tankersley said financial advisors have advised the stimulus funding, 1-cent sales tax, a $350,000 pledge from the school board and refinancing the city’s existing bonds pledged towards the schools would be enough to cover construction costs. The city is now awaiting information on how the money will flow from the government, Tankersley said, and when it will be received and what the payback schedule will be.

NEVADA: Officials say the Clark County School District doesn't expect to need to build new schools for the next 10 years. Officials said the reason is flat population growth. Still, the district expects to have $4.9 billion in capital needs for school renovation and replacements, educational equity, technology and equipment.
The board has given itself a January deadline to decide whether to pursue a bond program during next year's elections or defer it until 2012. A 1998 bond program for 101 new schools and 11 replacement schools is nearing an end with five schools left to be built.

TENNESSEE: The Sullivan County Commission unanimously approved plans to accept $15.4 million worth of bonds the school system will use to renovate and expand Ketron Intermediate School. The bond money, which comes from the stimulus-funded Tennessee Qualified School Construction Bonds program, will be used to add 23 classrooms to Ketron’s campus north of Kingsport in the county’s Bloomingdale community. Payments on these bonds could be due as early as February 2010 and cost the county about $100,000 per month for the next 17 years.

NATIONAL: Topping the wish lists of school foodservice directors is equipment that can help them enhance the functions of cooking, freezing and serving meals, according to a study conducted by research and consulting firm Y-Pulse, LLC. The data also showed that 82 percent of the school foodservice operators participating in the study applied for a share of the government’s $100 million appropriation package for equipment assistance, which was signed into law earlier this year. Other items on school foodservice directors’ wish lists include vehicles to transport food, safety-related items and vending machines. Those foodservice directors with cooking equipment on their wish lists most often cited a desire for steamers and combi ovens, while walk-in coolers and freezers were the top vote getters among those looking at new freezing systems. Participants seeking funds for serving equipment most often mentioned new serving lines, followed by new milk coolers.

Part of the American Recovery and Reinvestment Act, the equipment grants were designed to ultimately improve the quality of school foodservice meals, particularly in schools with at least half of students eligible for free or reduced-price meals. The allocations cover the acquisition of new equipment, renovation of existing equipment or replacement of equipment through state agencies.

FLORIDA: Projections show Broward public schools will have more than 34,800 empty seats during the 2012-2013 school year, but beleaguered School Board members said the district didn't overbuild and the numbers don't show the whole picture. They said the district needs a school-by-school review of how classrooms are being used, rather than a school's overall capacity compared to its enrollment. For instance, some schools may have eight autistic students in a classroom designed to hold 18. Others may have 18 Advanced Placement students in a classroom for 25. The state, however, requires the district to look at overall capacity at individual schools and for the district. That means Broward can't build classroom additions or new schools in the overcrowded western part of the county because many schools in the east are underenrolled -- some up to 40 percent.

Broward's billion-dollar school construction program has been under intense scrutiny since the Sept. 23 arrest of suspended board member Beverly Gallagher, who faces federal corruption charges for allegedly accepting bribes and steering school construction contracts to favored companies. The district has been criticized for overbuilding and getting multiple extensions to its plant survey, the state-approved review done every five years that accounts for every available seat in the county, as well as planned construction projects.
Schools Superintendent James Notter said the district's enrollment projections did not anticipate "the explosion in the charter school population." While enrollment in traditional public schools dropped by more than 15,000 students since 2006, Broward's charter schools grew by more than 7,000 students in the same time period. He also said the district continued to build new schools and additions to comply with class size and growth management requirements.

MINNESOTA: Aging roofs, inefficient building systems and crowded classrooms are about to get some attention in the Hastings school district, and the Red Lake district is a step closer to addressing its building needs. But the Hermantown School District is still looking for money for its capital program. Those are among the noteworthy results from Tuesday’s school bond referendums, which generally turned out well for school districts looking to modernize their classroom space, fix up their buildings or improve their technology.
Overall, voters approved 13 of 15 school district capital bond questions, ranging from a $420,000 initiative in Becker to $35 million for building upgrades in Red Lake. The approvals represent more than $60 million worth of work, although the $35 million Red Lake program still requires legislative approval.

Hastings was a big winner. Voters in that district approved three separate ballot questions: $6.8 million for roofs, windows and building maintenance; $8.4 million for heating and ventilation; and $4 million for new classrooms and classroom renovations. Most of the money for the $19.2 million Hastings program – $16.8 million worth – comes in the form of zero-interest bonding authority from the American Recovery and Reinvestment Act of 2009. The Hastings vote allows the district to take advantage of that stimulus-funded bonding authority, which was announced in September. “Without a doubt, call it a huge carrot, a huge incentive, but that definitely helped tip the scales” in favor of approval, Collins said.
Overall, a dozen Minnesota school districts were awarded $75.8 million in low- or no-interest loans via the stimulus. None of the other referendums approved or rejected Tuesday involved stimulus awards.

In other capital bonding referendums, the Wayzata and South St. Paul school districts approved levy renewals for technology improvements; St. Peter approved $428,000 for deferred maintenance; and Menahga rejected an $8.5 million referendum for classroom additions, renovations and parking lot improvements. Six of the 15 capital bond questions involved “one day bonds” for slightly less than $500,000. Those referendums essentially let the district keep bonding authority that otherwise would have been returned to the state.

TEXAS: The federal stimulus package is more than just money distributed through grants or contracts. It also includes new types of bonds for government borrowing. Several new bonds in the American Recovery and Reinvestment Act are intended to allow state and local governments, including school districts, to borrow at lower costs.

Qualified School Construction Bonds are for the construction, rehabilitation or repair of public schools. The school districts pay zero or very low interest on bonds while investors get tax credits to offset income taxes. Build America Bonds can be used by state and local governments, not just school districts. The federal government will cut the costs to local and state governments by subsidizing 35 percent of the bond interest.

Under the first program, the feds gave Texas access to about $1 billion in new school construction bonds for 2009. The state's 18 largest school districts got $465 million of that $1 billion directly from the federal government. But 11 of the 18 returned all or part of it — more than $300 million — to be redistributed by the Texas Education Agency to smaller districts.
Why did so many return it?

"You've still got to convince your voters" to approve a tax increase to repay new debt, says Joe Smith, a retired school superintendent who tracks school bond elections at his Web site, TexasISD.com. "You are asking for a tax increase, so it's not a good time." Smith says the number of school bond elections have declined with the economy. In May 2008, school districts held 94 elections. In November of that year, it fell to 38. In May, it rose to 50, but so far Smith has identified only 28 on this November's ballot. Bob Aikin with The Aikin Group advises Texas school districts on bond elections. He blames timing for the schools' response. Congress passed the Recovery Act in February. By the time the program became available, Aikin says, "It was too late to get it on a ballot." The schools that used the new financing method had unused bonding capacity from previous bond elections, Aikin says. They didn't need voter approval to take advantage of the new bonds' better terms.

The Texas Education Agency has reallocated the unused portion of the $1 billion to smaller school districts. About one in 10 school districts applied. The state has given the districts six months to complete the bond deals. The challenge, says Carlos Sharpless, a public finance manager with the brokerage firm Stern Agee in Houston, is finding investors who prefer tax credits to interest. "To have an appetite for them," Sharpless say, "you've got to have taxable income." Most investors in Texas school bonds are big banks, Aikin says. Although some investment banks are reporting record profits, not all big banks need tax credits to offset income. "They're looking for revenue," Aikin says of many investors.

That may be why Build America Bonds have been popular on Wall Street. Build America Bonds are taxable bonds that pay higher interest — competitive with corporate bonds. The federal government's subsidies come as rebates to the local and state governments. Those rebates, Aikin says, can be used for any legal purpose — not just to help pay off the bonds. He writes in an education newsletter that cash-strapped school districts — if they structure the deal correctly — might free up money for daily operations. Aikin expects more school districts to take advantage of the Recovery Act's bond programs in 2010 as the economy improves. "For those districts who haven't jumped in," he says, "the market will become more active."

MICHIGAN: Detroiters voted to pay $500.5 million to build, renovate and modernize Detroit Public Schools, according to preliminary results. Taxpayers will get a break on the interest rate for the bond - $246 million will be interest-free under the federal stimulus program’s Qualified School Construction Bonds program. The interest rate on the remaining $254 million will be cut by 35% under the Build America Bonds program. The funds will be used on eight new schools, 10 school renovations and technology and security upgrades districtwide.

TEXAS: Arlington school district voters supported by a nearly 2-to-1 ratio a $197.5 million bond package to provide building upgrades, technology, transportation and fine arts equipment for the district’s more than 63,000 students. The bond issue will raise the district’s tax rate almost 5 cents from 2011 through 2017, adding $40 to the yearly tax bill of the owner of a $100,000 home with a $15,000 homestead exemption. Seniors with an over-65 exemption won’t see an increase.

The district’s tax-impact figures depend on selling no-interest Qualified School Construction Bonds, a program that is part of the federal stimulus package. Arlington has until Dec. 31 to sell $12.8 million in bonds. It can sell an additional $12.8 million next year, said Cindy Powell, associate superintendent of finance.

TEXAS: Arlington school district voters supported by a nearly 2-to-1 ratio a $197.5 million bond package to provide building upgrades, technology, transportation and fine arts equipment for the district’s more than 63,000 students. The bond issue will raise the district’s tax rate almost 5 cents from 2011 through 2017, adding $40 to the yearly tax bill of the owner of a $100,000 home with a $15,000 homestead exemption. Seniors with an over-65 exemption won’t see an increase.

The district’s tax-impact figures depend on selling no-interest Qualified School Construction Bonds, a program that is part of the federal stimulus package. Arlington has until Dec. 31 to sell $12.8 million in bonds. It can sell an additional $12.8 million next year, said Cindy Powell, associate superintendent of finance.

INDIANA: Kids think it's cool to be able to watch an excavating machine at work right outside their classroom window. So how much cooler is it for them to put on construction hats and go out and watch their principal at the controls, scooping up the first dirt for the new addition to their school? Liberty Elementary School Principal Christy Jarka sat in the cab as she made the excavator take the first big bites out of the lawn to break ground for the $5.2-million remodeling and addition. She waved down at the 500 youngsters cheering and applauding her efforts.
"I've never done that before! That was so much fun!" shouted Jarka as Rudy Sutton, owner of the R.V. Sutton construction firm, helped her down from the cab.

Monday was the start of the 10-month project that will add a 29,000 square foot early learning center -- kindergarten and first-grade classrooms and space for a computer lab, art classes, and a large group instruction room, all to be completed in time for the 2010-11 school year.

Jarka passed out gold shovels to five lucky students, who posed in front of the excavator with architects Bob Gerometta and Jessica Vargas, Director of Special Services Mark McKibben, and the entire Duneland School Board. She praised the year-long work by a committee of school design experts, staff, and parents for which the board approved $5.9 million in general obligation bonds to fund construction, financing and other "soft" costs, and contingencies. "They really listened to what we needed," she said.

PENNSYLVANIA: A consulting firm recommended closing 15 city school buildings, a proposal sure to stoke controversy in a district still debating the merits of a 2006 restructuring. City residents are particularly attached to their high schools, and DeJong Inc., an Ohio planning firm, recommended closing two of them -- Peabody in East Liberty and Oliver on the North Side, although the Oliver building would remain open as an alternative school. Under the plan, Oliver's students would go to Langley High School in Sheraden and Peabody's students would go to a reconstituted Westinghouse High School in Homewood. School board members Floyd "Skip" McCrea and Thomas Sumpter called DeJong's work a resource for the district to use in developing its own plan to address its declining enrollment. Superintendent Mark Roosevelt said last week that he envisioned a two- or three-year process for implementing the district's plan. Mr. Roosevelt acknowledged that DeJong's recommendations would provoke "some amount of turmoil or disgruntlement." Some parents still lament the 2006 reorganization and say it hasn't done enough to promote achievement.

In all, officials said, the plan would affect 35 schools and two early-childhood centers. While some would be closed, others would be assigned new grade configurations, face adjustments in feeder patters or have classrooms relocated to other buildings. The district now has about 70 schools and early-childhood centers. The proposal comes about three years after the board closed 22 schools -- 18 buildings altogether -- in a push to streamline the district amid dropping enrollment and fear of a state takeover. "This time, we're in a far better situation," Mr. Roosevelt said, referring to what he's hailed as improvements in academics and finances.

NATIONAL: Concerns for charter school facilities are growing. These semi-independent public schools often have to be creative in finding building space and might operate in church basements, retail centers, or trailers. While building disparity between public school options is no news for long-time charter families, this topic is finally on the radar for various leaders and investors.
In Washington D.C. for example, there are empty public school buildings that are being converted to all sorts of things but education. Robert Cane, the executive director of Friends of Choice in Urban Schools, writes: “The D.C. public school children being crammed into inappropriate industrial and temporary sites attend the increasingly high-performing charter schools. Meanwhile, the D.C. government is spending more than $2 billion on traditional city-run public schools.” Cane points specifically to a historic school building which was the home to one of the first publicly funded schools for African American children, but now refaced and sold off as a high-end condo complex.

But what is a district to do for its charter schools if there are not any empty buildings available? Look at Douglas County (DCSD) in Colorado, for instance. DCSD is the home of 56,000 students in 74 public schools of various flavors, 8 of these are charter schools. To solve spacing issues for the overcrowded traditional schools the district has utilized a year-round-tracking system so students can time-share the building space. The DCSD charter schools are filled to capacity and have deep wait lists. One K-8 charter school with a capacity of 400 students added a bonus class to accommodate its wait list of 3,000 hopeful families. There are no empty buildings owned by Douglas County School District suitable for use of its expanding demand. Besides building bunk-desks there are few ideas left on the table for accommodating site-based learning in such a district. Yes, playgrounds, libraries, cafeterias, and PE halls, are some of the assumed offerings for school children that many charter school students might go without in make-shift school-buildings. Yet there are hundreds of thousands families who still opt for these schools. The reason is really quite simple: The school—with or without a decent building—offers schooling which meets the needs of their kids.”

There is indisputably a disparity across our nation in facility options for chartered public schools than non-public chartered schools, and for a district to sell available space for profit over providing for one of its schools—is simply wrong. However, don’t discount the craftiness behind some of the leaders of innovative public charter schools. University Academy Charter High School (New Jersey) turned an abandoned laundry building into an award winning architectural design for its school. The famed Media and Technology Charter High School (MATCH) in Boston, MA, is a former auto dealership. Another charter school took an old barn and gave it new life as a school building. Watching the creative solutions which often are preserving architectural history and frugal is quite exciting.

TEXAS: For Texas' charter schools to secure permanent homes, they have long relied on friendly financial backers to buy into the education experiment. Someday soon, one of those backers might be the state's 155-year-old public school endowment. The State Board of Education, which oversees the $22 billion Permanent School Fund, is looking into targeting a small portion of that fund to build or finance charter school classrooms and facilities. Details on the size of the potential investment and how the arrangement would work are in flux. Board members have discussed seeking an opinion from the Texas attorney general first, to be sure the board has the authority to make such an investment. But a thornier question facing the board will be whether it can make investment decisions with goals other than responsibly generating the most money for the state's public schools.
The board is "managing this money for a purpose," said Kevin O'Hanlon, a former general counsel for the Texas Education Agency who was asked by Board Member David Bradley, R-Beaumont, to explore the idea. "What they're using the money for is not irrelevant to the ultimate determination," O'Hanlon said. "This is leveraging the funds in order to support public education. That is a collateral benefit."

Other legal and investment experts say the trustees' sole obligation is to maximize returns prudently, so any investment in charter schools facilities would have to produce returns comparable to other, similar investments. What kind of return a charter school investment would need to generate varies widely depending on how the board chooses to proceed. Whatever the expected return, it must account for the risk of the investment, said Lori Taylor, a professor at the Texas A&M University Bush School of Government and Public Service. Private investors consider charter schools a somewhat risky investment because the schools typically do not have long financial track records, adequate cash reserves and long-term security. Only a small number of the 215 charter schools have earned investment-grade bond ratings that allow them to borrow money at lower interest rates to construct classrooms and other buildings. Unless the fund is fully compensated for the riskiness of charter school investments, "it is an implicit subsidy," Taylor said.

Traditional school districts pay for buildings and other capital costs by asking voters to approve bond packages backed by property taxes. But charter schools, which are privately-managed public schools, do not have taxing authority. All of their money comes from the state based on student attendance. Nor do charter schools receive the additional aid offered by the state to help offset the local cost of facilities. That difference in state funding amounts to about $1,000 per student, said Lisa Dawn-Fisher, deputy associate commissioner for school finance at the Texas Education Agency. Charter operators say that disparity means that they have to do more with less and that they have little assurance their school won't one day be swept out from underneath them, because most schools lease their buildings.

Members of the Legislature have tried repeatedly to resolve that facility problem, but cost concerns and other issues have kept any bills from passing. For example, an effort to target facilities aid to high-performing charter schools didn't get traction because it was deemed too exclusive.

It is the job of the Legislature, not the trustees of the Permanent School Fund, to find a policy solution to the charter school facility problem, said Lonnie Hollingsworth Jr., director of legal services and governmental relations at the Texas Classroom Teachers Association. This past spring, legislators did approve a new program that aims to reduce the charter schools' cost of borrowing money by backing some of the debt issued to pay for facilities. It is similar to a guarantee offered to traditional public school districts. Many charter schools, however, cannot even qualify for the bond market where traditional public schools typically get money for buildings.

CONNECTICUT: The new, $34.6 million Armour Academic Center at the Westminster School is the kind of gleaming monument to achievement and prosperity that has made Connecticut prep schools so widely known. But stepping downstairs to the cellar of the 85,000-square-foot building is a journey to another kind of future that Connecticut's private schools are pioneering.
There, arrayed against the north foundation wall like a Rube Goldberg contraption, are 72 plastic pipes and related plumbing and pumps that are the heart of the building's alternative energy Geothermal Heat Exchange system. These pipes and pumps circulate 10,000 gallons of a water and glycol mixture through 72 wells drilled 475 feet beneath the Simsbury bedrock. The circulating water system takes advantage of the simple principle that, below the frost line, the earth retains a relatively consistent temperature of 55 degrees.

In the winter, heat drawn from the relatively warmer circulating water is used to warm the building. In the summer, the relatively cooler water draws away the heat from the building to provide air conditioning. The system will allow the Armour center — home all day to 450 students and faculty — to be heated and air-conditioned all year without burning a single gallon of oil. Westminster is so confident of its new geothermal system that it didn't even bother to install a conventional backup boiler. "I know of no other geothermal unit this advanced, anywhere in the country, and yes it's ironic that this benchmark project originated at a private school," said mechanical contractor Edmond Macri of Avon, who spent five years working with Westminster's building committee to design the system. "At your typical new commercial building, the owners or investors just assign the job out to the architects and engineers and expect it to get done," Macri said. "At Westminster, from the headmaster on down, there was this strong impetus to be a good citizen and reduce the school's carbon footprint by becoming personally involved in the design and construction."

But Westminster is only the beginning. At Avon Old Farms in Avon, a new solar array on the roof of the hockey rink will provide about 75 percent of the school's needs on its core campus. Westover School in Middlebury and Pine Point School in Stonington have recently switched on similar solar generating units. The Watkinson School in Hartford is completing a new science center with separate solar and geothermal systems that, its designer says, will be New England's first "energy neutral" building, meaning that the structure produces as much energy as it uses. At Loomis Chaffee in Windsor, waste heat from the school's generator plant is reclaimed to warm the library and two dormitories. Outdoor lighting on part of the campus has been converted to LED, or Light Emitting Diode bulbs, which consume one-tenth of the energy of the conventional lights they replaced. These prep schools are now competing for green credentials in much the same way that they once competed for students by promoting new language labs or dorms. Energy experts consider the trend important, because proving that alternative energy can work in high-use buildings in the chilly Northeast will significantly advance new technologies.

ALABAMA: The $6.1 million awarded by the state to Limestone County Schools is sorely needed to fund construction and renovation. In Alabama, this part of the stimulus plan worked.
When Congress created the Qualified School Construction Bond program earlier this year, it allowed states to sell bonds for all school systems at one time, said State Superintendent of Education Dr. Joe Morton. The Qualified School Construction Bond program provides tax credits to bondholders, as opposed to tax-exempt interest, which allows bonds to be offered with no interest. Gov. Bob Riley signed a law earlier this year allowing the state’s Public School and College Authority to issue the Qualified School Construction Bonds for local school systems. “It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this — it’s a win-win situation for Alabama,” Morton said during a press conference Thursday at Bob Jones High School in Madison. Morton accompanied Riley to announce allocation, including the one to Limestone County Schools, of the $263 million in bond money.

Of the 46 systems receiving funds in this first round, only eight received more funds than Limestone. The reason? Systems impacted by Base Realignment and Closure received additional funding to help them carry the load of more students. Some school systems that will be impacted by BRAC, including Madison County and Huntsville City, did not submit requests for bond money, Riley’s office said.
While we know much more is needed to put our schools in their best condition, we are glad to see this initiative to make Alabama schools suitable places to learn. Alabama has ranked near the bottom in education funding for many years and that sometimes shows in the results of our children’s scores. Creating safe and healthy places to learn is a step in the right direction

ALABAMA: Governor Bob Riley announced the allocation of $236 million in interest-free bonds to help all 46 school systems that applied from across Alabama to finance the construction or repair of public school buildings. This announcement is for the first half of the $236 million, with the other 50% anticipated in early 2010. “Modern and safe schools will help better prepare our students for the future,” Governor Riley said. “With these bonds, systems can repair, renovate, and construct much-needed schools while also stimulating our economy.” State Superintendent of Education Dr. Joe Morton stated, “The ability of the state to sell bonds for all school systems at once was brought about by a bill adopted in the Special Session of the Legislature earlier this year. It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this-it’s a win-win situation for Alabama.”

State Superintendent of Education Dr. Joe Morton stated, “The ability of the state to sell bonds for all school systems at once was brought about by a bill adopted in the Special Session of the Legislature earlier this year. It gets the money to the systems quicker and at less cost than all 46 systems trying to individually do this-it’s a win-win situation for Alabama.”

The bonds are part of a new federal program created by the economic stimulus law that Congress passed earlier this year. The Qualified School Construction Bond program provides tax credits to bondholders, as opposed to tax-exempt interest, which allows bonds to be offered with no interest. Governor Riley signed a law earlier this year allowing the state’s Public School and College Authority to issue the Qualified School Construction Bonds for local school systems. Using the PSCA saves money for local school systems on bond issuing costs and annual payments. This bond money is in addition to earlier allocations Alabama schools received from a $1.07 billion school construction bond that Governor Riley signed into law in 2007. That bond issue provided funds for construction and repairs to every city and county K-12 system as well as public four-year and two-year colleges. [Includes complete list of bond amounts distributed to school systems]

MICHIGAN: Detroit Public Schools paid double the appraised value for about two dozen parcels of land using funds from the $1.5-billion school construction bond voters approved in 1994, school officials said. The land was appraised at $2.7 million, but DPS paid $5.6 million partly because of what officials said was a real estate flipping scheme, according to a chart school investigators compiled. Even the appraisals were inflated. Of 28 properties researched by school officials -- many of which were bought for locations for new schools -- the true cash value was $812,800.

MAINE: Lake Region High School is in jeopardy of losing its' accreditation if major repairs on the facility are not made soon. The building was designed to accommodate about 400 students when it opened over 40 years ago. Today, the school has about 625 students enrolled. "The library is very, very crowded. It is simply inadequate for the numbers of kids. The cafeteria is very, very crowded," said Lakes Region Principal Roger Lowell. "We have some health and safety issues. We have a lot of crowding issues and if we want to maintain our accreditation we have got to spend some money on this building."

School officials have proposed a $13.9 million renovation plan that will increase space and address other concerns educators have with the building. "The automotive shop and the bus garage are right within the building itself and because of that you get air quality issues," said Lowell. "That is a major concern." The plans call for building a stand alone automotive shop and bus garage. The wing where they are currently would be renovated into classroom space to accommodate students in one of the two portable classrooms on the property. Other improvements would then be made to increase office space and make the cafeteria and library large enough to handle the needs of students.
"In our case, the determination is this facility is not adequate and it is getting in the way of the programs that we are trying to deliver here," said Lowell. "Our accreditation issues are all facilities based." School officials hope townspeople will understand that despite the tough economy, the school has needs that need to be addressed. "The plan that we have is a very affordable plan. We are not looking to build a brand new school," said Lowell. "We don't have much choice. We have got to spend some money on this building."

NATIONAL: School districts with low credit ratings still have to offer interest payments on special tax credit bonds included in the U.S. stimulus plan, Fitch Ratings said. 'To compensate for weaker credit ratings and changing market conditions, some issuers have had to offer supplemental interest payments or original issue discounts,' the rating agency said.
The American Recovery and Reinvestment Act passed in February created a new funding option for schools: construction bonds that offer federal tax credits in place of interest payments. Unlike past tax credit bonds, these offsets for federal income tax liabilities are 'strippable' -- they can be sold and traded separately from the bond principal. The credits allow schools to issue debt without having to pay interest, but some are finding they have to offer more incentives to attract buyers, Fitch found.

Recently, Hawaii sold $32 million of qualified school construction bonds with the longest maturity, 15 years, and had to offer a 1.45 percent coupon with it. A Texas school district's $15.28 million of bonds that were sold last week carried a 1.55 percent coupon, and a South Carolina school district offered a 1.2 percent coupon on $15.06 million of bonds sold earlier this month.

Information on sales of the debt has been slim. Many small issues have been sold competitively and many more of the bonds are privately placed by underwriters. 'Currently, there is a limited market for the bonds, and with little or no secondary market liquidity,' Fitch said in its special report on the debt. 'QCSBs have to date been purchased mainly by a limited number of institutions and commercial banks.'

Beyond issuers having to offer 'supplemental' coupons on the bonds, and investors not having much desire to buy these bonds, the program has other hazards, Fitch said. As it rates the bond issues, Fitch will look at what type of sinking fund the issuer is using to pay off the debt. The law requires that the bonds have a maximum 15-year final maturity, Fitch said, and the bonds are expected to be sold in a single bullet maturity. 'Fitch believes bonds with 'balloon' payments present challenges that issuing districts need to manage,' the report said.

NATIONAL: School districts with low credit ratings still have to offer interest payments on special tax credit bonds included in the U.S. stimulus plan, Fitch Ratings said. 'To compensate for weaker credit ratings and changing market conditions, some issuers have had to offer supplemental interest payments or original issue discounts,' the rating agency said.
The American Recovery and Reinvestment Act passed in February created a new funding option for schools: construction bonds that offer federal tax credits in place of interest payments. Unlike past tax credit bonds, these offsets for federal income tax liabilities are 'strippable' -- they can be sold and traded separately from the bond principal. The credits allow schools to issue debt without having to pay interest, but some are finding they have to offer more incentives to attract buyers, Fitch found.

Recently, Hawaii sold $32 million of qualified school construction bonds with the longest maturity, 15 years, and had to offer a 1.45 percent coupon with it. A Texas school district's $15.28 million of bonds that were sold last week carried a 1.55 percent coupon, and a South Carolina school district offered a 1.2 percent coupon on $15.06 million of bonds sold earlier this month.

Information on sales of the debt has been slim. Many small issues have been sold competitively and many more of the bonds are privately placed by underwriters. 'Currently, there is a limited market for the bonds, and with little or no secondary market liquidity,' Fitch said in its special report on the debt. 'QCSBs have to date been purchased mainly by a limited number of institutions and commercial banks.'

Beyond issuers having to offer 'supplemental' coupons on the bonds, and investors not having much desire to buy these bonds, the program has other hazards, Fitch said. As it rates the bond issues, Fitch will look at what type of sinking fund the issuer is using to pay off the debt. The law requires that the bonds have a maximum 15-year final maturity, Fitch said, and the bonds are expected to be sold in a single bullet maturity. 'Fitch believes bonds with 'balloon' payments present challenges that issuing districts need to manage,' the report said.

MASSACHUSETTS: Harvard president Drew Faust indicated that there is a strong possibility the design of its much-anticipated $1 billion science complex, at the heart of the university’s expansion into Allston, may be scaled back as Harvard grapples with new financial realities. The university is in the midst of reassessing options for Allston, including potentially “reimagining," or redesigning, the 589,000-square-foot complex.
The university’s endowment has plummeted 27 percent, to $26 billion in June, amid the economic downturn. Harvard also disclosed last week that it lost $1.8 billion from its cash accounts last year because it took the highly unusual step of having the endowment fund invest the money, instead of keeping the funds in more conventional bank-like accounts.

Faust had warned in February of a delay in completing the science complex, which would house scientists working on stem cell research across Harvard’s various schools. Stem cell researchers from Harvard Medical School, the School of Engineering, and the Faculty of Arts and Sciences who were scheduled to move into the science complex by the original 2011 opening have been relocated to a renovated laboratory space on Harvard’s Cambridge campus, Faust said. They will remain there “for some period of years until we can imagine investing more" n new science construction, she said.

Even though it has slowed its expansion plans, Harvard continues to be committed to the Allston community, Faust said. Construction workers are finishing the foundation of the science complex, work that is expected to continue until the end of the year. She said the university has been talking to residents about a plan to find interim uses for the vacant Harvard-owned buildings and lots in the once industrial neighborhood, where Harvard owns more than 350 acres.

CALIFORNIA: The nine-college Los Angeles Community College District is in a unique situation. Despite a nationwide economic slump that is one of the worst in 50 years, the district has money to spend—and to build. LACCD, which serves more than 220,000 students throughout Los Angeles County, is in the middle of a $5.7-billion building program, funded by three bonds passed in the last eight years. The program, which began 2004 and is expected to be completed by 2014, is intended to modernize and add new facilities throughout the district. The LACCD is working with numerous architectural firms, including Leo A Daly, Arquitectonica, WWCOT, and Harley Ellis Devereaux. Of the nearly 90 new buildings planned for the district, eight are completed, 29 are under construction, and 50 are either in the design phase or do not yet have an architect assigned to them.

The construction boom is being funded via a $1 billion bond passed in 2001, a $1.2 billion bond passed in 2003, and a $3.5 billion bond passed in November 2008. Larry Eisenberg, the district’s executive director of facilities planning and development, believes voters approved the largest ballot measure by more than 70 percent last fall—as the stock market was being battered and the economy was staggering—because they recognize the significance of education, especially during a recession. “I think people realize that community college is a pathway,” he says.
Certainly, the district isn’t wasting any time putting the money to use. Eisenberg estimates that they’re spending about $30 million a week in construction payments. He adds that the district has been able to capitalize on the low-bid environment and, in some cases, has been able to “get deeper” down its wish list because of it. For instance, at Pierce College, the cost saving have allowed the district to build a child development center at the campus that was not originally in the budget. “It’s helping us a lot. It’s an amazing market right now,” Eisenberg says.

One significant aspect of the program is that most of the buildings are designed to earn LEED certification. Two completed buildings have already achieved LEED Silver status and six are under review. The district has not set specific guidelines for LEED certification but has asked its designers to maximize sustainability wherever possible. “We try out a technology to see if it works or not,” Eisenberg says. “Pretty soon, we will have it down pat.”

The district is not the only one pleased to be building. General contractors, hungry for work, are finding that the LACCD is a good partner to have during the recession. Riverside-based J.D. Diffenbaugh is currently building three projects for the LACCD and describes the district as one of its best clients. “Even though they are a public agency, everything they do is open book,” says Valerie Leonard, who works in the contractor’s business development department. “There are no surprises.” The Los Angeles office of Harley Ellis Devereaux is designing a learning resource center at the Los Angeles Trade-Technical College. The firm also is working on a design-build project with general contractor S.J. Amoroso; they recently won the bid for an 80,000-square-foot student union center at Los Angeles City College.
“LACCD is one of the clients that actually has money to go forward with projects,” says Brent Miller, AIA, principal at Harley Ellis Devereaux. “Overall, it’s a very well-managed program.” He also is impressed with its commitment to green building. “We’re very excited that the district has taken the lead to push a sustainable program and demand this from the architecture community,” he says. “We think it’s money well spent.”

MONTANA: State assistance and federal stimulus money is making a $7.5 million high school expansion in Hardin a bargain for the school district and local taxpayers, Superintendent Al Peterson said. The state will provide nearly $1 million for the Hardin project, under a 16-year-old program to help certain school districts pay for building projects. Hardin is one of six schools statewide that will take advantage of $30 million in special federal stimulus money earmarked for school building projects in Montana this year. Another $30 million will be distributed next year. Another Eastern Montana school using stimulus funds for a building project is Huntley Project, which is rebuilding its school with $9.75 million in bond funds.

Hardin school officials estimate that the two programs are saving local taxpayers as much as $5.5 million over the 15- or 16-year life of the bonds. The district estimates that taxpayers will pay about $40 more a year in property taxes on a $100,000 home to finance the $7.5 million project. The federal stimulus money is designed to cover the interest costs of the bonds through a federal tax-credit mechanism. Hardin officials estimated the district's interest savings at $4.5 million, based on a 5 percent interest rate. The state assistance is for school districts whose tax base is below the statewide norm. The Hardin School District's tax base is about 29 percent below the norm, so the state will cover 29 percent of a maximum amount allotted to each district based on its number of students. The maximum for Hardin is about $220,000 a year, so the state will pay nearly $65,000 a year to help cover the bond, or $972,000 over 15 years.

FLORIDA: Classrooms are empty when the air-conditioning system at Roland Park Elementary and Middle goes on at 9 p.m. The 3 miles of tubes spiraling inside each of eight ice tanks on campus will freeze solid by 5 a.m. In the morning when students arrive, a mix of glycol and water flows quietly through the tubes, and the ice outside them maintains the internal temperature. Glycol allows the water to drop to 19 degrees without freezing. Meanwhile, a heat exchanger collects the warmth from indoors and channels it through the ice tanks. Then fans blow over the cooled water, creating cold air that brings each classroom to a comfortable 76 degrees.
Roland Park is one of five schools where Hillsborough County schools have installed the systems, called thermal energy storage. Hunters Green, Schwartzkopf, Bing and Boyette Elementary schools also got the systems.

They're made by Calmac, which has been building ice skating rinks for 30 years. The company discovered the same technology could be used to cool buildings, according to its Web site. Instead of the tubes lying flat, like on an ice skating rink, they spiral inside 7- by 7-foot tanks that contain 17,000 gallons of water. Most of the energy is spent during off-peak hours, which saves the district money, says Bob Wegmann, general manager of operations for the Hillsborough County School District. The new systems — which cost $585,708 to install — are projected to save $50,000 to $75,000 a year in those five sites alone. If the technology lives up to expectations, Tampa Electric Co. will give the district a rebate for an estimated $132,000, according to utility spokesman Rick Moreira. "This estimated rebate amount is one of the largest we've paid," said Moreira.

At Roland Park, the new equipment works in tandem with an existing air system, cutting air-conditioning needs in half. All of the systems installed are partial storage systems, designed to meet half of a site's air-conditioning needs. But three schools have been running them at higher capacity, getting even more cooling power. "For about a six- to eight-month period, we can operate partial storage efficiently as full storage, which is less expensive. It's during the hotter months, June, July, etc., that we use them as partial storage," said Wegmann.

NEW JERSEY: Five New Jersey school construction projects — including one to replace a Newark building destroyed by lightning — have been delayed for months because of a fight between the state and a contractors group about the bidding process. The state Schools Development Authority said it can cut costs and speed up projects by combining the design and construction phases, but the Mechanical Contractors Association of New Jersey said the process would be unfair to small contractors and would ultimately cost taxpayers more.
The authority wanted to test the process on five of the 25 of school projects it has planned for construction or pre-construction this year, including Newark’s Elliott Street School, which burned after a lightning strike in 2006. The school’s 680 students have been split among three other schools. The other schools affected by the fight are the Redshaw Elementary School in New Brunswick, the Lorraine Place Elementary School in Keansburg, Jersey City Elementary School No. 3 and Jersey City Early Childhood Center No. 3.

The association sued in April and the state Appellate Division the following month ordered the state to stop work on the $40 million Elliott Street School. The two sides delivered arguments today before an appellate court panel, but it could be months before the judges return a decision. With traditional projects, the authority receives two sets of bids: one for design plans and another for construction. Last year, the authority proposed streamlining the process so that one contractor would be selected to both design and build a school in a process known as "design-build." "Many times you can get at the same or lower price a higher-quality performance out of the parties that are building the schools," said Janesa Urbano, vice president and chief counsel for the schools Authority. The authority used the design-build process once before with success, spokesman Larry Hanover said. In 2006, the authority used the process to build the Summerfield Elementary School in Neptune. The $23 million school cost $216 per square foot, compared with $249 per square foot for other projects that year, he said. This year, the agency decided to start using the process more, saying it was trying to get projects going as quickly as possible to create jobs amid the recession.

But the contractors association said combining the bidding could open the door to corruption and overcharging. The process also would make it impossible to evaluate costs from one bid to another, because the state would be choosing from different designs, said Alan O’Shea, executive director of the contractors association. The contractors also take issue with another part of the process: The schools authority picks four finalists from a preliminary group and invites only them to submit bids.
Authority officials said the process actually increases competition because it doesn’t cost as much for a contracting company to enter the bidding — and because the finalist firms will put more effort into their bids.

FLORIDA: A new $15 million school next to Orlando Sanford International Airport is being built on property that federal aviation officials caution could be noisy from airplanes taking off and landing. But Seminole County school officials say average noise levels won't be a problem at the new Midway Elementary School, although the airport's main runway is just across the road. "It's like having a conversation with the vacuum cleaner on at your house," said Scott Stegall, director of facilities planning. Construction of the school north of the airport is scheduled to be completed by Christmas. Students will move in after winter break.

Work was under way at the corner of Brisson Avenue and State Road 46 before school-district officials sought the required review by the Federal Aviation Administration, and the review was not completed until July. Deputy Superintendent George Kosmac said he knew the two-story building would bring no objections from the FAA, whose main concern would be obstructions to landing paths. Kosmac said that based on a consultant's report, the district also knew about the noise issue. But the FAA reminded the district that building a school on property tagged as noisy "would be considered a noncompatible land use and would not be recommended." Kosmac said the school was pushed back on the property, nudging the structure barely outside the designated 65-decibel "high noise" line encircling the airport.
The FAA had another recommendation as well: "If you decide to proceed with the proposed development, it would be recommended that noise attenuation/insulation features be incorporated into the design and construction," the report said. But school-district officials discounted that advice. No added insulation has been included in the building, said Jay Taylor, project director. "Our walls are pretty strong anyway, with the concrete block," he said.
A new Midway Elementary to replace the current worn building has been planned for years, but finding a suitable location has been difficult. Three earlier choices were polluted, and the airport property had arsenic contamination that was cleaned up.

Officials point out that the county, city and airport signed off on various approvals including zoning, permits, utilities and airport concerns. But permitting mistakes have been made around the airport before.

MICHIGAN: Passing a $500.5 million school bond in the November election will mean modern schools, jobs and rejuvenated neighborhoods, Mayor Dave Bing said in endorsing the proposal. Bing said Detroit can't pass up the chance to borrow the money under the federal stimulus program at zero and low-interest rates for school construction and renovation. "This is real shot in the arm for the city of Detroit and for the children of the city of Detroit," Bing said in his first public support of Proposal S.
Proposal S calls for building four high schools and four buildings for pre-kindergarten through eighth-grade classes. Five other high schools and five PK-8 schools would be updated and renovated. Combined, it would mark the largest public works project in the city of Detroit, Bobb said. The plan would not raise taxes, but extend the 13-mill tax rate from the previous 1994 school bond proposal from 2033 to 2039.

The construction would create nearly 11,000 direct and indirect jobs in Metro Detroit, supporters say. Bobb said he'd use legal incentives -- quotas are illegal -- to ensure Detroit-based contractors, workers and minority and women-owned business will have opportunities to perform the work. Bobb, who will be staying on as emergency financial manager for a second year, has closed 29 schools this year and plans to shutter 33 next year in an effort to right-size the school district to its smaller population. Neighborhoods where schools have closed will see new, modern facilities, Bobb said. "Without this program, there will be no new Martin Luther King Jr. High School built for $55 million or no new school in the Brightmoor area for $35 million," Bobb said. A poll released by the public relations firm promoting Proposal S found voters narrowly approved it -- 40 percent to 37 percent -- but when respondents received details of school construction, the margin increased to 63 percent in favor and 23 percent opposed.

CONNECTICUT: The Avon Old Farms School celebrated their newly installed 205kW solar electric system, which is the largest operating solar array of any private school in Connecticut and all of New England. At a dedication ceremony, Senator Chris Dodd and Chair of the Connecticut Clean Energy Fund Board Norma Glover both delivered remarks.
Located on the roof of the Jennings Fairchild Ice Rink, the solar panels will power a significant portion of the core campus buildings reducing the school's CO2 emissions by 6.3 million pounds over the 25 year life of the system. This CO2 reduction is equivalent to planting 30,000 trees or eliminating 6.9 million driving miles. The electricity generated by the solar energy system will cost the school about 30% less than electricity from the utility.
The solar system was installed by Connecticut-based Alteris Renewables, recently ranked the fastest growing renewable energy company in the Northeast. As the third party owner of the solar panels, EOS Ventures financed the system enabling Avon to go solar without the usual large upfront capital investment. Additional financial support from the Connecticut Clean Energy Fund (CCEF) was secured for this project.

The large capacity of this solar electric system highlights Avon's commitment to a sustainable environment. Along with a multitude of other energy saving initiatives at the school, this solar array demonstrates that Avon Old Farms is a leader among the Green Schools Alliance, an association of K to12 public, private and independent schools uniting to take action on climate change and the environment.

FLORIDA: Seven years ago, Orange County's school leaders promised to renovate 136 schools by the end of 2015 if voters approved a half-penny sales-tax increase estimated to raise about $2.2 billion. Today, that promise is coming up far short, with district officials saying they'll be able to finish only 91 schools if conditions don't improve.

A number of forces converged to lower expectations. The first sign of trouble came in 2006, when prices for building materials skyrocketed around the world, forcing School Board members to curb spending and scale back on some projects. Then, the worst economic crisis since the Great Depression sent sales-tax collections plummeting and severely hurt the district's ability to borrow money. Finally, administrators' own decisions slowly chipped away millions of dollars from their already ailing construction budget. The district's chronic financial woes have become so severe, in fact, that there's serious talk about going back to voters in search of more money.

That alone would underscore an equally serious problem: One-third of the 41 schools at the bottom of the school district's priority list for repairs and renovations — schools that so far have no funding — are majority-black campuses. Two of those schools – Washington Shores and Richmond Heights elementaries — are specifically named in a federal desegregation case that Orange County's school district has been battling for more than 40 years. And the courts are watching to make sure those schools are no longer neglected. School leaders acknowledge it will be difficult to prove in federal court that schools in some black neighborhoods are in the same condition as those in white areas. But they will not discuss the issue, on the advice of the school-district attorneys.

The situation has left them scrambling to figure out a solution: Shuffle the list? Curb spending? Ask voters for more money? The School Board is far from agreeing on an approach.

MISSOURI: Federal money is the carrot dangling before voters in the De Soto and Hillsboro R-3 school districts. Both entities have bond issues on the Nov. 3 ballot. Officials in both school districts hope to tap into available federal stimulus money for renovation projects. Hillsboro officials are asking residents to approve an $18 million bond issue, while De Soto officials are requesting their voters agree to an $11.5 million bond issue. Both measures require a four-sevenths, or 57.1 percent, majority to pass.
Officials from both districts are pointing to the Qualified School Construction Bonds program, which is part of the federal stimulus package approved by the Congress, as the reason for floating bond issues before voters. The program allows school districts to issue general obligation bonds at no- or low-interest rates. Funds from the program must be used for the construction, rehabilitation and repair of a public school facility or the acquisition of land to build a facility. A stipulation to qualify for the federal money is that a district must approve general obligation bonds with the amounts to each school district to be awarded through the Missouri Department of Elementary and Secondary Education through an application process. "If we chose not to run a bond issue, we would not be eligible for the federal funds," De Soto Superintendent Andy Arbeitman said. "Somebody else would get it."

MISSOURI: Federal money is the carrot dangling before voters in the De Soto and Hillsboro R-3 school districts. Both entities have bond issues on the Nov. 3 ballot. Officials in both school districts hope to tap into available federal stimulus money for renovation projects. Hillsboro officials are asking residents to approve an $18 million bond issue, while De Soto officials are requesting their voters agree to an $11.5 million bond issue. Both measures require a four-sevenths, or 57.1 percent, majority to pass.
Officials from both districts are pointing to the Qualified School Construction Bonds program, which is part of the federal stimulus package approved by the Congress, as the reason for floating bond issues before voters. The program allows school districts to issue general obligation bonds at no- or low-interest rates. Funds from the program must be used for the construction, rehabilitation and repair of a public school facility or the acquisition of land to build a facility. A stipulation to qualify for the federal money is that a district must approve general obligation bonds with the amounts to each school district to be awarded through the Missouri Department of Elementary and Secondary Education through an application process. "If we chose not to run a bond issue, we would not be eligible for the federal funds," De Soto Superintendent Andy Arbeitman said. "Somebody else would get it."

NEW YORK: Recently obtained School Construction Authority (SCA) data reveals that between 2008 and now, over 30 recently-renovated Brooklyn schools contained high levels of PCBs, a toxic chemical compound that was banned in 1978. This data was obtained from the SCA by the New York Lawyers for Public Interest (NYLPI), the organization representing Naomi Gonzalez, a Bronx mother who is suing the SCA and Department of Education (DOE) for not removing PCBs from her daughter’s school. According to SCA data, many Brooklyn schools contained PCB concentration levels far above 50 parts per million.The Environmental Protection Agency has determined that PCB concentrations above 50 ppm present an unreasonable risk to human health.
The DOE could not comment on whether PCBs were removed from the recently-renovated Brooklyn schools because of pending litigation, though a DOE spokesperson did say that they are “engaged in positive and productive discussions with the United States Environmental Protection Agency to develop an agreement on a plan to address the PCBs in NYC public schools.”

NORTH DAKOTA: Money from the Recovery and Reinvestment Act also known as the stimulus bill is helping put men to work. But on Lincoln Ave. in Minot this money and these workers aren`t building a road or a bridge. No, this project`s a little different. The workers` hard work will add new classrooms to Minot`s Erik Ramstad Middle School. "It not only puts people back on payrolls," said Democratic Sen. Byron Dorgan of North Dakota, "but this kind of investment is going to provide an asset at the end of it: better schools."

Minot School District received a $5.9 million grant under the stimulus for school construction. They`re building not only at Ramstad but also at Jim Hill Middle School, and Sunnyside and Edison Elementary Schools. "I think that investment in our kids is extremely important," said Dr. David Looysen, Superintendent of Minot Public Schools. "And I think most of Minot thinks that, too." With new permanent classrooms being built with the federal stimulus money, many of the portable ones are being phased out. And that means a better learning experience for your kids. "Just think about it for a minute," Dr. Looysen said. "They`re in the classroom, but they also have PE in the building, music in the building, the lunch room`s in the building. I think it`s pretty important we try to provide a good learning environment for the kids." And that`s why Dr. Looysen thinks the stimulus money is not going to waste in North Dakota. Because thousands of children in the decades to come will benefit from the actions of the workers building the schools with stimulus funds.
To see video: http://www.kfyrtv.com/News_video.asp?news=34784

CALIFORNIA: Napa Valley Unified School District has a history of hiring mostly local contractors for its major construction projects, but the lagging economy is prompting changes in who is getting the work. One example is the approximately $12 million modernization and expansion project under way at Napa New Technology High School. The district hired one Napa County contractor and another from San Leandro for the New Tech job.
Of the subcontractors on the project, one is from Napa County, seven from Sonoma County, two from Solano and two from Marin, according to the district’s planning department. Sixteen other New Tech subcontractors are based in Sacramento and other cities outside the North Bay, according to Don Evans, the district’s director of school planning and construction. The reason is increasing competition in the construction sector, which has many tradespeople working for less and traveling longer distances to find work, Evans said.

Historically, things were different. Most district construction jobs awarded prior to those approved under Measure G — a $183 million bond approved by voters in 2006 — went to contractors in Napa, Solano and Sonoma counties. “Recently, that trend has changed,” Evans said. “Until the last 12 months, if you were to look at our general contractors and subcontractors’ awarded jobs, the high majority were from our area. Napa New Tech is different ... and I think it’s a sign of the unfortunate economic times that we’re in.”

Evans said the reason most of the district’s most recent projects have gone to general contractors and subcontractors outside of the area can be found in California’s Education Code and public school construction contracts — jobs must go to the lowest bidder. “Some of the subcontractors, especially on the job at the new high school in American Canyon and Napa New Tech, perform work that is not available within our geographical area because they’re specialized subcontractors,” Evans said in an e-mail. Evans said some of these include specialists in plumbing, mechanical, electrical and roofing for major projects and school sites. District Trustee Jose Hurtado said while local economy’s health is a priority, the district has its own financial constraints. Sometimes, that means having to hire outside of Napa County.

Meanwhile, the school district is wrapping up its Measure G projects. While local contractors are feeling the pinch of the ailing economy, the cut-throat competition is a boon to the school district and other organizations hoping to get more bang for their buck when it comes to project bids. Evans said although most construction projects under Measures G and M are coming in at budget, many done during the past 18 months have come in as much as 20 percent below budget.

LOUISIANA: If the federal government doesn't do more to assist with the recovery of New Orleans schools, gains made over the past four years will prove unsustainable, according to a new report by the Southern Education Foundation. Officials must give particular attention, it said, to rebuilding the city's destroyed school buildings and to supporting instruction within their walls.

In the past year, school officials have embarked on what could become a $2 billion, decades-long drive to rebuild and renovate dozens of campuses throughout the city. Locally, several watchdog groups have voiced alarm that the plan could exacerbate inequities in the city if some of the children move into state-of-the-art new buildings in the next five years, while even more remain in outdated and in some cases dilapidated structures. The foundation's report echoes that concern. It praises the Federal Emergency Management Agency for committing $165 million toward the city's school infrastructure this year and for providing money that allowed a new Langston Hughes Academy, a charter elementary school, to open in August. "Despite these efforts, federal commitments to New Orleans schools remain long delayed and grossly insufficient for restoring the city's infrastructure of public education, " the report says. "It has been more than four years since Hurricane Katrina, and FEMA is still haggling with local school officials."
FEMA officials have held up their relationship with the state-run Recovery School District as a model, citing successful negotiations that allowed them to streamline the process of reimbursing the schools for classroom materials destroyed in the flood. And Recovery School District officials have said they have a good working relationship with the federal agency.

VIRGINIA: Governor Timothy M. Kaine announced the availability of $119 million in American Recovery and Reinvestment Act (ARRA) bond authorizations for local school divisions to finance energy efficiency improvements and renovations, as well as renewable energy projects for public school buildings. Projects will be financed through the Qualified School Construction Bond program (QSCB), and will be selected through a competitive evaluation process. Eligible projects can include, but are not limited to, improving heating, cooling and ventilation systems and controls, building improvements such as insulation and windows, more efficient lighting, as well as solar photovoltaic, solar hot water, biomass, or on-site wind power systems.
"Today's announcement will advance two of the Commonwealth's top priorities-education and energy efficiency. When school divisions lower their energy consumption, they can lower their energy costs and direct more resources to the classroom, all while reducing their environmental impact," Governor Kaine said. "The projects made possible by these ARRA bonds will create jobs, improve our children's learning environment, and promote green technology and construction here in the Commonwealth."

The $119 million in bonds will provide both immediate and lasting impact through energy efficiency improvements and renewable energy retrofits to existing public school buildings. New construction projects will not be eligible for these bonds. Efficiency improvements are among the most cost effective ways to help resolve energy cost challenges. Funded projects will reduce public schools' energy demand and energy bills, reduce greenhouse gas emissions, and provide a safer and cleaner environment for Virginians. Renewable energy retrofits will also be eligible for funding-such as the installation of solar panels or small wind turbines. These improvements will also provide learning opportunities for students on energy efficiency and energy conservation.

School divisions and local governments can submit project applications through November 11, 2009 using an application now available on the Department of Education website. Project proposals will be evaluated and selected by a team of experts from the Department of Mines, Minerals and Energy, Department of Education, and Department of Treasury. Project announcements are expected by mid-December.
Earlier this year, Governor Kaine announced the initial allocation of $71.6 million in QSCB's for eight projects in seven Virginia localities. Those previously announced bond allocations will finance K-12 school construction and renovation.

CONNECTICUT: When the city tears down the cement walls of the East Rock Magnet School, students will have a new home complete with park space, windows and light. The existing school [designed by Edward Larrabee Barnes] was built in 1973. It is marked by large, windowless walls of concrete. The two entrances on Nash Street are set so far back from the sidewalk that visitors sometimes have a hard time figuring out where the front of the building is. “Absolutely atrocious,” is how East Rock Alderman Roland Lemar described the existing school’s design. He called it a “1970’s-style prison” that “turns its back on the neighborhood.”

The current school suffers from poor acoustics and lighting, said school construction chief Sue Weisselberg. The new school would address that by adding a lot more windows — both windows facing out and windows inside the school. Plans show a two-story gymnasium/cafeteria surrounded by a horseshoe of classrooms on each level. Skylights would let natural light into the large central space, as shown above. Windows in the hallways and classrooms would look out onto the southern park when possible.

OREGON: There are approximately 1,500 computers in use in the Oregon Trail School District, according to the district’s facility operations director, Jim Seipel. To protect these machines from viruses, it is necessary to keep them on 24 hours per day, 365 days per year. “There’s two days a week where it’s worthless to have them on,” Seipel explained. But not all is lost. In the summer of 2008, the district purchased a software package to manage the electricity the computers used by putting them in sleep mode when not in use. While the software package cost approximately $30,000 and yearly renewals will be $2,000, and it wasn’t fully installed on every computer until that fall, the results were dramatic. “It almost paid for itself in savings the first year,” Seipel said. “It’s $30,000 we didn’t have before.”

All 10 schools in the district recycle at some level, typically paper recycling. Some schools bring sustainability to the classroom, including the Green Team at Cedar Ridge Middle School, which puts students in charge of collecting recyclables and lets them grow fruits and vegetables in a greenhouse; and the Green Club at Sandy High School, whose members get involved with green activities throughout the community. District schools can also participate in the county’s Green School program, which provides a roadmap on how to make changes within schools and offers a plan on how to set sustainable goals.
Other green practices in the district include motion detector lighting, composting, reusable containers and recycling batteries, cell phones and ink cartridges. While there is no district policy on recycling, Superintendent Shelley Redinger mandated last year that school buildings be kept at 68 degrees.

When the new Sandy High School opens in 2012, it will include some sustainable aspects, but what will be included has not been finalized. Options for the new school include geothermal heating and cooling, natural lighting during the day, sunscreen configurations and collecting rainwater for non-potable use, which offers savings in two ways.
Meanwhile, upgrades and work at other schools in the district included in the bond for the new high school continues, and some of it will provide energy savings for the district. Sandy Grade School will receive double-pane windows on the west side of the north wing, Welches Elementary and Middle schools will receive upgraded and more efficient heating units, and some schools will have steam traps replaced to improve boiler efficiency.

NATIONAL: “More than a half-century after Brown v. Board of Education, the dream of a world-class education is still being deferred all across the country,” President Obama declared in a recent speech to the N.A.A.C.P. “There are overcrowded classrooms, and crumbling schools, and corridors of shame in America.” So we have come together — one Republican, one Democrat — to develop a common-sense solution to fix the problem of crumbling schools in a manner that doesn’t require the federal government to tax, borrow or spend one dime. Our School Modernization and Revitalization Tax Credit — Smart Credit — is also guaranteed to create hundreds of thousands of private-sector jobs, critical at a moment when unemployment has reached a 26-year high and threatens to climb even higher.

Several studies show a statistical connection between outmoded schools and educational underachievement and the schools most in need of modernization are disproportionately in inner-city neighborhoods and rural areas. But to fix these schools, Congress need only make a simple, one-sentence change to a little-known clause in the federal tax code.

In 1986, President Ronald Reagan and Congress created a 20 percent federal historic rehabilitation tax credit. Generally speaking, rehabilitation projects involving structures at least 50 years old can qualify for this credit, which is equal to roughly 20 percent of the modernization cost. It is widely acclaimed for having created jobs, restored buildings and spurred economic activity.
This credit is applicable when an aging local school building is renovated for a different use by private investors. But it is not should the same investors want to invest the same money to turn the same building into an up-to-date local school. The I.R.S. “prior use” rule disallows such credits in the latter situation.
But if this “prior use” rule were amended to allow for school rehabilitation, then decaying school buildings could be sold to private investors, modernized and then leased back to school authorities. This approach has already been proven to work and save taxpayers considerable money. When Gov. Tim Kaine of Virginia was the mayor of Richmond, he used this basic sale-leaseback arrangement to update a local school, Maggie L. Walker High, built during the Depression, and transform it into a regional magnet school that reopened in 2001 and now serves the top students in Central Virginia. (This shift from local to regional school satisfied the “prior use” rule.

With the Smart Credit, previously unaffordable projects now become affordable. Moreover, we eliminate the costly political and bureaucratic favoritism now pitting one locality against another in a fight for the limited school construction money in the stimulus plan.
Potentially, there may be $100 billion in tax-credit-eligible school modernization projects nationwide. Now is the perfect moment, with prices for construction materials down, to unleash the private sector to create tens of thousands of jobs while making schools better for millions of students. We have talked to business investors. If Congress will amend the law, we already have the money pledged to modernize more schools, at one time, than has ever been done in any locality in Virginia’s history. The same is possible for your community.

SOUTH DAKOTA: A new federal program aimed at helping struggling school districts catch up on infrastructure has found demand in some states far beyond what the government is willing to pay for. That's not the case in South Dakota where all 24 school districts to apply for Qualified School Construction Bonds will have been approved for $56 million in interest-free loans, which shave as much as one-third off the total cost of building projects. The two-year, $22 billion QSCB, a creation of stimulus legislation, was touted as a jump-start for the construction industry and a boon to education. But officials at four of the 12 South Dakota school districts approved in the first round of awards say they would have done the projects without the incentive.

Jennifer Cohen, education policy analyst at the nonpartisan New America Foundation, said South Dakota's experience is unusual. Most states have so many needy school districts that they have to reject QSCB applications. With demand more than five times the state was approved for, California education officials held a lottery to determine who would get bonding authority. "The needs for these sort of incentives were much greater because it was literally a matter of doing or not doing the program," Cohen said. As a relatively financially sound state, South Dakota has benefited from a funding formula based on Title I poverty allocations. Cohen said a more equitable system would have sent money to school districts that demonstrate a need. "The way the funds were distributed (to the states) did not have a lot to do with the need," she said.

Nationally, QSCB has been a popular initiative. David Shreve, education policy analyst at the National Conference of State Legislatures, said school construction is a good way for the federal government to help pay for education. Like highways, Congress helps build the infrastructure but does not take control over it. "We think it's a very legitimate role for the federal government to play," Shreve said. "There are serious infrastructure needs out there, and I think this addresses it." He doesn't blame school districts for taking advantage of incentives they don't really need. "If you're going to buy a car you're going to look for the best deal," he said.

CALIFORNIA: Educators say a race to cut back energy usage among local schools could teach students about the cost of wasted electricity, but only if utility companies speed up their own "green" efforts. The idea for a friendly competition among students to see who can reduce energy use at their respective schools is the latest in an ambitious Irvine Unified campaign to "go green." But Irvine Unified officials still need Southern California Edison's help to get the up-to-date energy usage info needed to get the effort under way.

Irvine Unified officials have already asked teachers and staffers to cut back on their energy usage at work, last year directing them to remove personal appliances from their offices and classrooms. Paying electricity costs for a microwave, fridge or coffee maker here or there may seem like a drop in the bucket for a district that spends about $4 million a year in energy costs. But those little costs can add up to several hundred dollars a year at each of Irvine Unified's 35 campuses and district facilities. And at a time when Irvine Unified leaders, who already sliced $18 million out of this year's budget, are facing an expected $20 million shortfall next year, every dollar counts.

As teachers, staffers and students work to cut energy usage to the bone, the next step is moving to what Parham calls "smart usage" by timing district activities to avoid the peak hour expenditures that can quickly run up an electricity bill. Parham says the move to smart usage and friendly energy conservation competition is hampered by billing info that is several months old and isn't specific about each school and district facility. It's a far cry from the up-to-the-minute, site-by-site energy output info that Irvine Unified is looking for. The outdated info also impedes Irvine Unified's efforts to identify and eliminate unexplained jumps in energy usage, said Mark Sontag, a curriculum coordinator for math and science who, along with maintenance director Joe Hoffman, explores anomalies in energy costs at each district facility.

CALIFORNIA: Educators say a race to cut back energy usage among local schools could teach students about the cost of wasted electricity, but only if utility companies speed up their own "green" efforts. The idea for a friendly competition among students to see who can reduce energy use at their respective schools is the latest in an ambitious Irvine Unified campaign to "go green." But Irvine Unified officials still need Southern California Edison's help to get the up-to-date energy usage info needed to get the effort under way.

Irvine Unified officials have already asked teachers and staffers to cut back on their energy usage at work, last year directing them to remove personal appliances from their offices and classrooms. Paying electricity costs for a microwave, fridge or coffee maker here or there may seem like a drop in the bucket for a district that spends about $4 million a year in energy costs. But those little costs can add up to several hundred dollars a year at each of Irvine Unified's 35 campuses and district facilities. And at a time when Irvine Unified leaders, who already sliced $18 million out of this year's budget, are facing an expected $20 million shortfall next year, every dollar counts.

As teachers, staffers and students work to cut energy usage to the bone, the next step is moving to what Parham calls "smart usage" by timing district activities to avoid the peak hour expenditures that can quickly run up an electricity bill. Parham says the move to smart usage and friendly energy conservation competition is hampered by billing info that is several months old and isn't specific about each school and district facility. It's a far cry from the up-to-the-minute, site-by-site energy output info that Irvine Unified is looking for. The outdated info also impedes Irvine Unified's efforts to identify and eliminate unexplained jumps in energy usage, said Mark Sontag, a curriculum coordinator for math and science who, along with maintenance director Joe Hoffman, explores anomalies in energy costs at each district facility.

WASHINGTON: The single biggest chunk of a proposed school tax levy will go to re-opening schools that have been shut down. About $48 million of the Buildings, Technology and Academics III Levy is projected to cover the costs of re-opening five shuttered elementary schools, including two that were shut down as recently as 2007. Seattle Public Schools said at a levy workshop that it needs to re-open the schools to manage capacity for the proposed New Student Assignment plan.
School board members Cheryl Chow and Michael DeBell expressed concern about explaining to the communities surrounding Rainier View and Viewlands elementary schools why they were shut down in the first place. Rainier View will cost about $7.4 million to re-open, while Viewlands is expected to cost about $11.1 million. "Where in the planning is the community?" asked Chow, whose Southeast Region district includes Rainier View. "When we made that decision in 2007 it hurt the communities, and now because of enrollment going up we're saying were re-opening it." The total projected levy that will go before voters Feb. 9 in a special election could provide either $253 million or $282 million for much needed upgrades. For a homeowner in Seattle, it would be about 4 cents per $1,000 worth of taxable home value, according to Seattle Public School staff.

NATIONAL: The Sustainable Endowments Institute released its 2010 report card which tracks green initiatives at 332 schools in the U.S. and Canada. Twenty-six schools received the highest grade, an A-, including: Arizona State University, Middlebury College, the University of North Carolina at Chapel Hill, the University of Pennsylvania and Pomona College. The Sustainable Endowments Institute focuses on the 300 schools with the largest endowments, meaning that wealthy schools are highlighted. An additional 32 school who opted to pay a $700 fee were also included in the survey.

Forbes compiled it’s list of green colleges by using the Sustainable Endowments Institute's 2010 report card as a basis because of its thoroughness but also took the following factors into consideration: Schools who earned green marks for participating in the Environmental Protection Agency's "Green Power Partnership," which promotes the use of wind, solar and other renewable energy. Schools that participate in the American College and University Presidents' Climate Commitment, which promotes campus sustainability efforts and aims to reduce greenhouse gas emissions. Colleges also received credit for making the Princeton Review's "2010 Green Rating Honor Roll." Another plus was a school's participation in a voluntary sustainability tracking program run by the Association for the Advancement of Sustainability in Higher Education (AASHE).

Some of the Forbes’ standout are also well-funded, like Harvard and Yale. Harvard's "Green Campus Initiative," which had a $12 million green loan fund, was folded into a new Office for Sustainability. Yale's sustainability office has been around since 2005 and this year installed 10 small wind turbines on the roof of the engineering and applied science center. State schools also do well on this list: Arizona State University, for its part in the Presidents' Climate Commitment, the Princeton Review's green honor roll and participation in AASHE's sustainability tracking program. The University of Washington's Seattle campus, at least 75% of commuters take environmentally friendly modes of transportation. The University of North Carolina buys 20% of its food from local producers, gets high marks for green building initiatives and has a policy to purchase energy-efficient appliances. Washington State's Evergreen State College, which gets 100% of its electricity from renewable sources, made the Princeton Review's green honor roll and is part of the university presidents' commitment for climate neutrality. The University of California at Santa Cruz and the University of Central Oklahoma can account for all of their electricity use through green power sources.

MISSOURI: For just a few dollars per year, voters can ensure that vital repairs are made here to ensure the longevity of school property and improve the quality of learning for students district wide. After months of deliberations, North Callaway School Board members made the hard decision in August to pare down a request for school improvements to just the basics, slashing millions of dollars off of April's failed ballot proposal. Instead of calling for additions to the school, new classrooms and eliminations of modular trailers, the board heeded voter dissent and will just address maintenance, security issues and air quality in its four schools.

Some might wonder why North Callaway wants to pursue another bond proposal after three heart-wrenching losses in as many years, but those promoting the bond issue are quick to point out an unprecedented opportunity this year. Thanks to federal stimulus funding, districts around Missouri are privy to get millions in interest-free loans. Through a Qualified School Construction Bond program, districts that approve ballot issues in November will have the first shot at about $141 million of those interest-free bonds. In August, Gov. Jay Nixon announced that the Department of Elementary and Secondary Education divvied out more than $141 million to 33 districts who passed bond issues in April. Each district will receive bonds that cover 61 percent of their projects. Depending on how many bond issues are approved, North Callaway could get more or less than that.
Qualified Zone Academy Bonds also have about $25 million more available to schools due to stimulus funding. It helps schools with populations of low-income students, such as those who receive free and reduced school lunches, to apply for more interest reducing bonds.

In addition, building costs have dropped dramatically in the past year due to the economy. In a July 16 school board meeting, the district's architect expounded on the savings it should take advantage of. "Usually we increase our costs by about 5 percent per year, but lately we've had bids coming in 30 percent below January 2008 prices and we were amazed," said David Kromm, with KRJ Architects, Planners and Interiors. "We weren't sure if this was a fluke, but other bids came in last week telling the same story." These combined elements mean a possibility to take care of the district's imminent need at a substantially lower cost. The district only needs a 4/7 margin -- approximately 57 percent -- to pass this bond proposal in November, and Cassidy is hopeful.
"We've seen building costs come down and the possibility of these zero interest bonds that works to our advantage," Cassidy said. "Our school board recognizes we have this opportunity to build trust, go back to a foundation by getting these core maintenance issue and then look to the future."

LOUISIANA: The Monroe City School Board approved the issuance of $10 million in bonds for construction and renovation projects in the district. The board voted to adopt a resolution for the incurring of debt and the issuance of Qualified School Construction Bonds. This will provide the district with money to complete projects at a zero percent interest rate. Money will be spent according to a list of renovation and construction priorities already identified by the district.

NATIONAL: The head of the U.S. Senate Environment Committee said that legislators will hold hearings to address toxic drinking water in the nation's schools following an Associated Press probe into the widespread problem. California Democratic Sen. Barbara Boxer called for the hearings to be held in Washington this year after an AP investigation revealed unsafe levels of lead, bacteria and pesticides have surfaced in the water supplies at thousands of schools. In the last decade, contaminants have been found in drinking fountains and school pipes in all 50 states in small towns and inner cities. But the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied.
Boxer, who chairs the Committee on Environment and Public Works that oversees the Environmental Protection Agency, has seized on the issue as a top priority, and has asked EPA officials to explain what actions they will take to protect school children from polluted water.

Among the issues discussed were the agency's inadequate record-keeping. The EPA only has authority to collect drinking water quality data from schools with wells, which represent 8 to 11 percent of the nation's schools. In the past, EPA officials have said that schools with unsafe water represent a small percentage of the nation's 132,500 public and private schools. They also have said the agency has no legal power to require that all schools test their water, and can only provide guidance on environmental practices. EPA officials acknowledge the agency's database of schools in violation of the Safe Drinking Water Act is plagued with errors and omissions, however. The problem goes beyond schools that use wells since schools in Baltimore, Seattle, Los Angeles and other large cities that draw water from public utilities also have shown contamination.

NEW MEXICO: Governor Bill Richardson announced more than $24 million in federal stimulus funds will go to schools, colleges, tribes and other agencies to improve energy efficiency all over New Mexico. The New Mexico Energy, Minerals and Natural Resources Department has awarded funding to 28 projects selected through a competitive process.
“These innovative projects throughout the state will provide energy savings through such things as installing solar power, energy efficient lighting, heating and cooling systems, and implementing web conferencing technologies,” Governor Richardson said. “The investments from the American Recovery and Reinvestment Act will lead to significant energy conservation, which makes government more efficient and saves tax dollars.” [Includes list of award recipients.]

NEW JERSEY: The New Jersey Schools Development Authority will experiment with a standard design and architecture plan for school interiors, with the hope that replicating those plans will save time and money. Kris Kolluri, agency chief executive, told NJBIZ the SDA will invite design proposals before December for a proposed early childhood center in Passaic City. Design and architecture firms that routinely contract work from SDA were divided about the merits of the standardization experiment; many who were contacted declined to comment for fear of jeopardizing their relationships with the agency. But others said it could be a good idea if it retained the creative aspects of their work, and that it might actually redirect saved money to more construction projects. “The basic goal is to try and test a pilot school where we incorporate standard elements,” Kolluri said of the program, called Kits Apart. The plan is to settle on four sets of designs for interior fit-outs, including classrooms, auditoriums, labs, cafeterias and gyms, he said. While “not every school can be standardized,” Kolluri said the best candidates are early childhood centers and elementary and middle schools. “We don’t believe doing that for high schools is an appropriate idea at the moment,” he said. Kolluri said SDA will roll out its experiment with a process akin to a “design competition, where every community will have the ability to help us develop the schools’ outside design so it fits its individual context.”

“Establishing standards is a good thing,” if balanced “with the design team’s creativity to address local conditions,” said Ed Klimek, partner at KSS Architects, in Princeton, which does a fair amount of work for SDA and charter schools. But care needs to be taken to ensure the experiment doesn’t produce “a rubber stamp for creating learning environments,” he said. Klimek said it is possible to strike a balance between standardized designs and creativity. “In the charter schools, we have designed some very interesting standardized designs, but retained the elements of creativity,” he said. “Having standards does reduce time, because we can all work off of the same basis point.”

Kolluri said schools in Chicago have been built with standardized designs, and that it is “time for us in New Jersey to test it now.” He wants to go about it one step at a time to check if it has “the highest quality, from a sustainability and education standpoint.” Suzanne Sowinski, owner of Sowinski Sullivan Architects, in Sparta, said she isn’t worried the standardization may reduce business for firms like hers. “I am a taxpayer, too,” she said, adding that with the savings from standardization, “maybe you could get more classrooms, bigger schools and more construction work.” Sowinski felt that while standardized designs do not necessarily hurt creativity, she doesn’t want to see “cookie-cutter schools.”

In any event, Kolluri is looking for alternatives. “We are at an important point in our school construction program, where we need to change the way we do business to see if we can build schools faster, better and do it in a more cost-efficient way,” he said. In July 2008, the state Legislature approved $3.8 billion to resume the schools construction program following its suspension in 2005, when its predecessor, the Schools Construction Corp., faced accusations that it misspent some of its $8.6 billion budget. “Design and architectural expenditures have been a major driver in the overall cost of school construction because of a number of issues related to poor planning and oversight,” according to the initial report of the state’s Office of the Inspector General in April 2005; among the report’s recommendations was the adoption of standard designs. Kolluri said he isn’t sure how many designs his office will need to solicit before a standard is adopted. “I would be content if the one school we are about to test out covers all the standardization criteria,” he said. “Then we could replicate it. But I am not willing to commit to a certain number” of experiments.

TEXAS: Alumni of Colbert Elementary, the oldest school in Dayton, toured the school's renovations to see how the old school house is being restored. It was not called Colbert back then. It was called “the colored school”. The school's construction was partly funded by the Julius Rosenwald Foundation. Julius Rosenwald, formerly president of Sears, Roebuck and Co., worked with Booker T. Washington, of The Tuskegee Institute, so that African American children could attend school. During the Great Depression, the Rosenwald Foundation created a program, where communities in 15 southern states could donate land and/or some money, which the foundation would match with a seed grant, under Booker T. Washington’s leadership. They designed each school with the highest efficiency in mind, because money was scarce. The schools all had large windows along East and West walls to maximize sunlight, and accordion doors down the center of the building, which created separate spaces for different grades. Community meetings could also be held inside. This school taught all grades, through high school. “From the time it was built (1933) until 1967, the school was segregated.” said Guidry, a member of Colbert-Rosenwald Corporation. This organization works on a grassroots level to raise funds to complete the Rosenwald Project. Guidry commented “About 5,000 schools were built throughout the South by The Rosenwald Initiative. Only a few hundred still exist.” Coleman stated “This was the original building, and that was all there was.“

This school came very close to being lost. Two Colbert staff members, Marie Elliott Redman and Katrina Dicky, recognized the old school house, inside an outer structure, which had been condemned. At about the same time, Jo Ann Paul read an article on the Rosenwald Foundation that described design details of the schools, and realized Colbert was actually a Rosenwald school. They immediately alerted the proper authorities, and puzzle pieces began to align, making the renovation a reality. The Rosenwald school, inside the condemned building, was in better shape than the outside structure. Hayman noted “This has been a five-year process. We went to Austin for some training, applied for a first grant, then other grants. There was real support from the community, when they heard there was a Rosenwald grant. Hurricane Ike benefitted us so we could go to Phase Two. Now, we are ready for Phase Three.”

NATIONAL: A California senator called on the head of the Environmental Protection Agency to disclose how the agency plans to address the widespread problem of toxic drinking water in the nation's schools. Democratic Sen. Barbara Boxer wrote the agency in response to an Associated Press investigation showing water supplies at thousands of schools have been found to contain unsafe levels of lead, pesticides and dozens of other toxics. Contaminants have surfaced at public and private schools in all 50 states, and in small towns and inner cities alike over the last decade. But the AP found the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied.

Citing a "lack of a national strategy for monitoring schools' water," Boxer asked EPA officials to explain how the agency oversees and enforces drinking water quality rules to her committee staff. Boxer also requested an outline of specific actions taken to address problems in schools' drinking water, a timetable for when those efforts will be completed and a report of any new legal authorities needed to protect students from toxic drinking water.

WASHINGTON: Fresh air, daylight and elbow room improve learning in schools. Who’d have thought? Temperature, acoustics and safety make a difference too. Technology, well, that’s a no-brainer. As Inland Northwest schools are remodeled, rebuilt and modernized, greater consideration is being given to design elements that national studies show can create better learning environments. “A lot of natural light, comfortable spaces are more conducive to learning,” said Kevin Foster, Ferris High School principal and a committee member for the district’s remodeling projects. “Technology makes more items available to the classroom.”

Greg Brown, Spokane Public Schools director of capital projects, said facilities designers “know that good learning environments are positive to the education of the students and well-being of the teachers.” Spokane Public Schools is in the second phase of a 25-year plan to make major changes at all of its traditional high schools while also addressing smaller-scale changes at other schools along the way, such as heating and cooling systems that pump fresh air into classrooms, basic maintenance and upgrading athletic facilities.

Districts around the region vary when it comes to improvements being made at schools. Funding is the primary constraint. Coeur d’Alene School District recently remodeled two of its schools. Freeman School District in south Spokane County is building a new high school. Central Valley School District has had to forgo some desired projects because voters have rejected the last three bond proposals. “Greenacres, Ponderosa, Chester and Sunrise are four schools that are currently open-concept schools (minimal interior walls) – that is not good,” said Central Valley spokeswoman Melanie Rose. “It’s hard for one class to do what they need to do without disturbing a neighbor. Student learning is impacted in those buildings.” Students in noisy environments can score 20 percent lower on reading tests, according to a study released in 2002 by the National Clearinghouse for Educational Facilities. Noise also hampers a student’s general cognitive abilities, the study said. As Spokane schools undergo major remodels, acoustics have been a consideration in regular classrooms as well as areas where activities are apt to be loud – band, orchestra or choir rooms, for example. In those special classrooms, sound-absorbing padding is mounted on the walls, and curtains can be pulled around students to further dampen noise, Brown said. The new regular classrooms are equipped with sound systems that allow teachers to use wireless microphones to speak to students in the 850-square-foot spaces.

Most schools being remodeled throughout the region are integrating more daylight and fresh air. A study released earlier this year that analyzed three school districts in Washington, California and Colorado showed increased natural light in schools had a profound impact. “Students in daylit schools outperformed the students in non-daylit schools by 5 to 14 percent,” according to a study published by the federal Department of Energy’s National Renewable Energy Laboratory. “In one school district, students with the most daylighting in their classrooms progressed 20 percent faster on math tests and 26 percent faster on reading tests when compared with students in the least daylit classrooms.”

WASHINGTON: Fresh air, daylight and elbow room improve learning in schools. Who’d have thought? Temperature, acoustics and safety make a difference too. Technology, well, that’s a no-brainer. As Inland Northwest schools are remodeled, rebuilt and modernized, greater consideration is being given to design elements that national studies show can create better learning environments. “A lot of natural light, comfortable spaces are more conducive to learning,” said Kevin Foster, Ferris High School principal and a committee member for the district’s remodeling projects. “Technology makes more items available to the classroom.”

Greg Brown, Spokane Public Schools director of capital projects, said facilities designers “know that good learning environments are positive to the education of the students and well-being of the teachers.” Spokane Public Schools is in the second phase of a 25-year plan to make major changes at all of its traditional high schools while also addressing smaller-scale changes at other schools along the way, such as heating and cooling systems that pump fresh air into classrooms, basic maintenance and upgrading athletic facilities.

Districts around the region vary when it comes to improvements being made at schools. Funding is the primary constraint. Coeur d’Alene School District recently remodeled two of its schools. Freeman School District in south Spokane County is building a new high school. Central Valley School District has had to forgo some desired projects because voters have rejected the last three bond proposals. “Greenacres, Ponderosa, Chester and Sunrise are four schools that are currently open-concept schools (minimal interior walls) – that is not good,” said Central Valley spokeswoman Melanie Rose. “It’s hard for one class to do what they need to do without disturbing a neighbor. Student learning is impacted in those buildings.” Students in noisy environments can score 20 percent lower on reading tests, according to a study released in 2002 by the National Clearinghouse for Educational Facilities. Noise also hampers a student’s general cognitive abilities, the study said. As Spokane schools undergo major remodels, acoustics have been a consideration in regular classrooms as well as areas where activities are apt to be loud – band, orchestra or choir rooms, for example. In those special classrooms, sound-absorbing padding is mounted on the walls, and curtains can be pulled around students to further dampen noise, Brown said. The new regular classrooms are equipped with sound systems that allow teachers to use wireless microphones to speak to students in the 850-square-foot spaces.

Most schools being remodeled throughout the region are integrating more daylight and fresh air. A study released earlier this year that analyzed three school districts in Washington, California and Colorado showed increased natural light in schools had a profound impact. “Students in daylit schools outperformed the students in non-daylit schools by 5 to 14 percent,” according to a study published by the federal Department of Energy’s National Renewable Energy Laboratory. “In one school district, students with the most daylighting in their classrooms progressed 20 percent faster on math tests and 26 percent faster on reading tests when compared with students in the least daylit classrooms.”

COLORADO: The installation of security cameras and an automated door access system at the Steamboat Springs high school almost is complete, said Rick Denney, the district’s facilities director. The process started a week after school began in late August. The cameras — located outside as well as in common areas, corridors and areas commonly used by the public but not in classrooms — run on a Web-based system that records, but they aren’t monitored all day, Denney said. Only a few administrators have access to them. He said the new security measures are being implemented at all district schools and the transportation facility. The system should be complete by the end of November. The systems were paid for by a $533,000 Community Oriented Policing Services Securing Our Schools grant that the district was awarded in September 2007. The grant required that the district match the funds to implement several security-related measures in the schools — after a safety and security audit the district commissioned in February 2007, Denney said. The bill for the $677,000 system was split evenly between the grant and a district match. The grant also funded part of the purchase of 800-megahertz radios for district staff and bus drivers. The district paid half of that $290,000.

Denney said the automated door access system, which will involve issuing district staff electronic key cards, would be integrated with the security cameras to monitor who enters and exits school facilities. The key cards also will be staff members’ identification badges. He said the key cards would replace traditional keys and have several advantages. Denney said key cards could be issued to community groups that use schools, and if they were lost would be deleted from the system and wouldn’t require re-keying schools — “an expensive endeavor.” “It’s a vast improvement in security,” he said.

NATIONAL: Math students at the Christopher Columbus Family Academy learn about angles by measuring whimsical figures of hot-air balloons, paper airplanes and pinwheels built right into the walls of their school. Seventh graders figure out direction by mapping the sculptures of the north, south, east and west winds that serve as compass points for the building. And fifth graders study astronomy by searching for Cassiopeia in an inlaid night sky that stretches across the lobby floor. The Columbus school incorporates sculpture and other art into nearly every corner of its year-old building with the hope that it will inspire students in this working-class Hispanic neighborhood to learn. It is one of a growing number of newly built or renovated public schools across the country that look more like cultural centers than the austere, utilitarian houses of learning of the past, displaying museum-worthy pieces commissioned from artists alongside more traditional finger paintings and statues of school mascots.
Columbus even drew up a curriculum guide this fall for using this untraditional architecture in class lessons. “Looking at art is not just an aesthetic; it’s a learning resource,” said Abie Benitez, principal of the Columbus academy. “We’ve created a framework for everybody to find a connection to the art in the building — and to the building itself.”

New Haven has emerged at the forefront of a movement to build schools that are aesthetically pleasing as well as functional, and to turn plain brick-and-mortar walls into show-and-tell lessons. Fourteen of the 31 public schools built or renovated here in the past decade have merged art and architecture with education in some fashion. “New Haven prides itself on art and ideas, so it’s a good environment for developing this kind of program,” said Tom Roger, director of the city’s school construction program, a project with a cost of more than $1 billion. In New York City, where schools house one of the largest public art collections in the world, almost half of the 23 new buildings that opened this fall incorporated artwork in their design and construction, city officials said. For instance, the Frank Sinatra School of the Arts in Astoria, Queens, has a glass facade etched with the names of hundreds of performing artists and hallways that display video clips of student activities.

Across the country, Los Angeles just opened one of the most expensive high schools ever built: a $232 million complex of silvery geometric shapes for a school of visual and performing arts. “None of our schools are cookie-cutter designs,” said Shannon Haber, a spokeswoman for the Los Angeles school district. “Ours use vibrant colors, the designs are complex, and we don’t use the same architect for each one.”

Educators and architects say that these new schools challenge long-accepted notions dating back to the 1950s of school buildings as no-frills projects designed to fulfill safety specifications and to be completed as quickly and cheaply as possible, particularly in fast-growing cities and suburbs. “People thought of schools as warehouses for kids,” Mr. Roger said. “It’s a box, so why does it need to be a nice place?” But Mr. Roger and others say that thinking began to change as health and environmental concerns over indoor air quality and lighting led to higher standards for school buildings. Newer cost-efficient technology also allowed architects to customize schools in a way not possible before. And now art has become an integral part of many new and existing schools, supported with donations from parents and local government grants.

Washington State, for instance, has spent $509,744 to create and install artwork in 14 public schools in the past two years. Maine, which has a similar program, gave Dirigo Elementary School in Peru $44,400 worth of sculptures and paintings in the past year for its library, cafeteria and hallways. “We’re always trying to connect our teaching to real life, and how good is this?” said Kathy Richard, the principal. In the Boston suburb of Needham, parents raised $75,000 to pay for three giant hanging sculptures — a DNA spiral, a metal cylinder inscribed with mathematical representations of infinity and a shooting comet — that were installed last year in the lobby of the high school, and helped get a new course on public art added to the curriculum.

CALIFORNIA: Cities, counties, special districts, public schools, colleges and universities, and public hospitals are eligible to apply for low-interest loans designed to help stimulate local economies and job growth, while promoting investments in energy efficiency and reducing greenhouse gas emissions. Funded through the American Recovery and Reinvestment Act (ARRA), these loans will be available at a one-percent interest rate and available through the California Energy Commission (CEC). The loans were created for eligible public energy efficient and renewable energy projects in California.

The CEC are providing these loans to promote green workforce development,building energy efficiency retrofits and clean-energy. Up to $25 million in funds are available with a maximum loan amount of $3 million per application. There is no minimum loan amount. Loan repayments for energy projects can take up to 15 years, including principal and interest (approximate 11 years simple payback). Simple payback is calculated by dividing the dollar amount of the loan by the anticipated annual energy cost savings.

LOUISIANA: Nearly a year after the state and the Orleans Parish School Board approved a nearly $2 billion facilities spending blueprint for New Orleans schools, the panel charged with overseeing the projects and spending has yet to meet. In fact, it doesn't even exist. Establishing an oversight committee is 'the fiscally responsible thing to do when you are spending that kind of money,' said Linda Johnson, a member of the state board of education. Meanwhile, school officials have already spent or committed to spend more than one-third of the $700 million designated for the projects in the first phase of the plan.

The role of the oversight committee will not be to micromanage the construction process, several people said, but to play a critical watchdog function. State officials said the process of collecting nominations for the panel has gone more slowly than anticipated, but that it's now a priority. They anticipate the panel will be formed in the next month.

The oversight committee will not approve specific contracts or hold veto power. But it will regularly review the master plan budget and demographic changes that could affect the plan, as well as monitor progress. So far, local officials only have commitments to cover fully the first phase of the master plan -- the $700 million -- although Recovery School District Superintendent Paul Vallas said he still hopes to secure money for later phases, and thinks he can already count on another $200 million.
The oversight committee will include five members: one experienced in construction management and nominated by local universities; one nominated by the local chapter of the Associated Builders and Contractors; one certified public accountant or financial auditor from the American Institute of Public Accountants; one nominated by the Urban League; and the last nominated by the New Orleans Business Council. The final group must be approved by both BESE and the Orleans Parish School Board.

MASSACHUSETTS: State officials moved ahead with $660 million in school construction projects in 15 districts throughout the state in a move that State Treasurer Tim Cahill said would provide a boost to the state’s economy. In all, the state authority decided it would award $321-million for the schools and the rest would be picked by local governments. The 15 towns and school districts that would benefit from the state funding now have 120 days to garner local approval to fund the portions of their school projects not covered by the state’s contribution. Among the school districts approved for funding were: Needham, Wayland, Billerica, Brookline, Chelmsford, Danvers, Dedham, Hamilton-Wenham, Nashoba, Norfolk, Plymouth, Rochester, Rockland, Sharon, and Sturbridge. Go here for a description of the projects.

The plans approved by the Massachusetts School Building Authority will combine state and local funding to build or renovate three high schools, three middle schools and nine elementary schools, said MSBA Executive Director Katherine Craven. They serve about 1 percent of the state's total student population. "It’s going to create a lot of jobs throughout the state and a lot of economic activity,” said Cahill, who chairs the MSBA and is running for governor.

In all, the state authority decided it would award $321-million for the schools and the rest would be picked by local governments. The 15 towns and school districts that would benefit from the state funding now have 120 days to garner local approval to fund the portions of their school projects not covered by the state’s contribution

NATIONAL: Construction bonding authority—a technical, and often obscure, source of capital funding for school districts—has emerged as a hot ticket for those looking to finance school facilities work under the federal government’s economic-stimulus program. With little stimulus money expected to be left for construction after states make up for recession-driven budget cuts, districts are scrambling for some $24 billion or more in zero- or low-interest bonds under the $787 billion American Recovery and Reinvestment Act.

“This is a once-in-a-lifetime deal,” said Judy Marks, the associate director of the National Clearinghouse for Educational Facilities, based in Washington. Not only are bonds available, she said, “the cost of construction materials is down, the cost of labor is down, a lot of contractors who would be busy bidding for [office buildings and other projects] are competing for school construction.” One result: stiff competition in some places for a new program created under the stimulus law—Qualified School Construction Bonds—that can be used to build, upgrade, or repair school facilities.

In California, school districts applied for QSCB tax credits to cover $3.7 billion in projects, even though the state got to allocate just $700 million in construction bonding authority under the stimulus law for this fiscal year. The state decided to hold a lottery to determine which districts should get the funding. Tennessee received authority to allocate $121 million in projects under that same program, but it got applications for $305 million, leaving some districts out of luck.

Despite the high demand for those programs, some school districts, particularly in areas hit hard by the recession, have had a tough time convincing voters to approve bonding projects, said Mary Filardo, the executive director of the 21st Century Schools Fund, a nonprofit research and advocacy organization. “The really poor districts are saying, ‘We don’t even have the money to pay back the principal,’ ” she said.
In part to help head off that potential problem, West Virginia, which received nearly $80 million in bonding authority under the federal program in fiscal 2009, decided to administer the bonds at the state level. Unlike districts, in West Virginia, the state doesn’t need a voter referendum to issue bonds. “We get the money; we just give it [out],” said Mark A. Manchin, the executive director of the state’s school building authority. So far, West Virginia has been able to fix 17 of its leakiest roofs and replace 15 HVAC systems. The state also plans to build at least one new school with the help of the bonds.

NATIONAL: Hundreds of school buildings across the United States have caulk around windows and doors containing potentially cancer-causing PCBs, the Environmental Protection Agency says. The danger to students is uncertain, and EPA does not know for sure how many schools could be affected. But the agency is telling schools that they should test old caulk and remove it if PCBs turn up in significant amounts.
EPA Administrator Lisa Jackson said PCBs remain in schools and many other buildings built before the chemicals were banned in the late 1970s. "We're concerned about the potential risks associated with exposure to these PCBs, and we're recommending practical, common sense steps to reduce this exposure as we improve our understanding of the science," Jackson said.

The agency said it would conduct new research into the link between PCBs in caulk and in the air, which it said is not well understood. Studies in European countries have shown that PCBs in caulk contribute to dust and air inside schools and other buildings. EPA now recommends testing for PCBs in peeling, brittle, cracking or deteriorating caulk in schools and other buildings that were built or renovated between 1950 and 1978. The caulk should be removed if PCBs are found at significant levels, the agency said. The agency also will conduct its own tests on PCBs in schools. The law already requires that building owners remove caulk if they discover very high levels of PCBs. But proper removal is very expensive.
The agency also set up a PCBs in caulk hot line, 1-888-835-5372, and Web site, http://www.epa.gov/pcbsincaulk/.

CALIFORNIA: The construction unit of the Los Angeles Unified School District has successfully and cost-effectively built 80 new schools and won scores of awards. So how has Supt. Ray Cortines rewarded this efficient unit? By driving out its superb leadership. Guy Mehula, the talented head of the construction division, resigned after LAUSD leaders made clear their intention of dragging Mehula's quasi-independent team back under the tight control of the district.

Taking away the unit's autonomy would be a huge mistake. The district has tried micromanaging the construction of schools, and it failed miserably. If you need convincing, just think about the disastrous cost overruns and construction errors of the Belmont Learning Complex. For those who don't remember the horrific details, the district began construction at Belmont (or the Edward R. Roybal Learning Center, as it was finally called) without required environmental reviews or professional managers, ultimately building a $160-million high school that the state declared unusable for children. A scathing audit of the debacle concluded that the project had violated environmental and public safety laws, and that the uninformed district had "tolerated a culture remarkably indifferent" to standards or accountability. The audit referred several of its findings to the district attorney for criminal investigation.
With a pressing need for new schools, then-Supt. Roy Romer and a newly elected board of education were determined to avoid more Belmonts, so they established a facilities division that was independent, expertly run and free of the district's torpid bureaucracy. The new unit was staffed by construc- tion professionals and experienced Navy engineers who were insulated from political and union pressures. Schools were built by carefully selected contractors who were closely monitored by an expert staff of auditors and managers.

The new division, charged with managing a $20-billion construction effort, quickly established a system of value-based contracting that permitted necessary -- but not political -- changes to contracts. And Romer was true to his word: The school board set policy and acquired land for schools, but otherwise stayed out of the way. Now Cortines has rescinded key provisions that helped shield the facilities division from unwarranted interference. He announced the removal of the unit's specially assigned and quasi-independent lawyers and limited many new employees to 10 months of work and pay per year-- something few competent construction professionals would agree to. Cortines and the board also want to set salary limits that are not competitive. Mehula resigned because these and other proposals would end the independence that has made the school construction unit a success.

CALIFORNIA: The Los Angeles Unified School District, America's second-largest public school system, is readying an offering of $1.83 billion. The Los Angeles school sale will fund new facilities and debt refinancing. Most of the sale - $1.4 billion - will be issued in the form of taxable Build America bonds, or BABs, with the remainder split between taxable and tax-free debt. The 720,000-student district is mid-way through a $20.3 billion program to reduce overcrowding in its 196 schools and centers. The offerings are expected to get a good reception, despite some concerns about valuations in the market and the financial situation of the issuers

ILLINOIS: When three suburban school districts devised a new funding model to build a 20-Megawatt wind farm downstate, one of its architects described the districts as the "Don Quixotes looking for the windmills." That has become an apt metaphor for the struggles of Community Unit District 300, Keeneyville District 20 and Prospect Heights District 23 to reduce their energy costs and become better stewards of the environment. In early August, the districts proposed a financial model that relied on private investors who would lease the wind farm for several years before turning it over to a consortium of the three districts. The model would have taken advantage of tax credits provided under the federal stimulus package and could have generated $3 million in annual profits to be split by the members of the consortium.

But the school districts recently discovered that while Illinois law allows districts to own and operate wind farms, it does not explicitly allow leasing them. It is also unclear whether the proposed partnership would qualify for federal tax credits. "We would have to change legislation, and then there's still no proof that the (Internal Revenue Service) would accept that model," said Dave Ulm, District 300's supervisor of facilities and energy management. "It's been abandoned."

Instead, the school districts unveiled a new model this month that is simpler on paper, though far from a certain success. Like the previous model, the new funding structure takes advantage of tax credits, the federal stimulus and private investment. Under the new model, District 300, by far the largest of the three districts, would issue about $22 million in Build America Bonds. The federal government, under the provisions of the stimulus package, subsidizes 35 percent of the interest on the bonds, reducing payback costs. Private investors would provide almost $23 million, for a combined $45 million to develop and operate a 20-Megawatt wind farm in central Illinois for 25 years. The consortium of the three school districts would repay the bonds over an estimated 15 or 16 years, using revenue from the wind farm. Any revenue leftover would be split between the districts. They project $1 million in annual profits for the first seven years, $1.5 million for each of the next eight years and $3.5 million annually for 10 years after that. Investors would receive an estimated $35 million in federal new-market tax credits, designed to spur growth in depressed areas.

ILLINOIS: When three suburban school districts devised a new funding model to build a 20-Megawatt wind farm downstate, one of its architects described the districts as the "Don Quixotes looking for the windmills." That has become an apt metaphor for the struggles of Community Unit District 300, Keeneyville District 20 and Prospect Heights District 23 to reduce their energy costs and become better stewards of the environment. In early August, the districts proposed a financial model that relied on private investors who would lease the wind farm for several years before turning it over to a consortium of the three districts. The model would have taken advantage of tax credits provided under the federal stimulus package and could have generated $3 million in annual profits to be split by the members of the consortium.

But the school districts recently discovered that while Illinois law allows districts to own and operate wind farms, it does not explicitly allow leasing them. It is also unclear whether the proposed partnership would qualify for federal tax credits. "We would have to change legislation, and then there's still no proof that the (Internal Revenue Service) would accept that model," said Dave Ulm, District 300's supervisor of facilities and energy management. "It's been abandoned."

Instead, the school districts unveiled a new model this month that is simpler on paper, though far from a certain success. Like the previous model, the new funding structure takes advantage of tax credits, the federal stimulus and private investment. Under the new model, District 300, by far the largest of the three districts, would issue about $22 million in Build America Bonds. The federal government, under the provisions of the stimulus package, subsidizes 35 percent of the interest on the bonds, reducing payback costs. Private investors would provide almost $23 million, for a combined $45 million to develop and operate a 20-Megawatt wind farm in central Illinois for 25 years. The consortium of the three school districts would repay the bonds over an estimated 15 or 16 years, using revenue from the wind farm. Any revenue leftover would be split between the districts. They project $1 million in annual profits for the first seven years, $1.5 million for each of the next eight years and $3.5 million annually for 10 years after that. Investors would receive an estimated $35 million in federal new-market tax credits, designed to spur growth in depressed areas.

WASHINGTON: Prairie High School will get a long-awaited sewer hookup and new athletic fields, thanks to nearly $4 million in interest-free school construction bonds obtained under a federal economic stimulus program. The Battle Ground school district will also use bond proceeds to upgrade video monitoring at 18 locations, improve several fire alarms and reconfigure a Prairie High parking lot for better safety. The Camas, Ridgefield and Washougal school systems will also receive federal bond support.

In a spin-off of the American Recovery and Reinvestment act of 2009, Washington state was allocated $164 million in interest-free Qualified School Construction Bonds this year, out of $11 billion targeted nationally for schools in both 2009 and 2010. Bonds may be used to rehabilitate or repair school facilities, or to construct school buildings and acquire school land.

This month, leaders at 18 Washington districts received good news, including: -- Battle Ground will use a portion of its $3.99 million share to dispense with the Prairie High septic system, one of Clark County's five largest (permitted for as much as 7,320 gallons per day) and dating to the school's inception in 1978. That will allow construction of recreational facilities on the old drain field, including a new softball and soccer field. They should help ensure compliance with federal Title IX gender equity rules for athletics, the district said. The parking redesign at Prairie will separate school buses from auto and pedestrian traffic. (The campus also will soon have a new, north-side access to Northeast 119th Street, built in conjunction with the WinCo store now going up and the new sewer hook-up.) -- Camas will convert $15 million of unsold bonds left from a $90 million bond measure approved by voters in 2007. That should save $8-10 million in interest payments. The district will soon identify appropriate projects. Ridgefield will put $1 million into heating-ventilation and lighting improvements in all schools, said Superintendent Art Edgerly. Washougal will use $1 million for energy-saving retrofits at several schools. A replacement for the aging Washougal High gym floor also might be in the works, said Business Manager Roseann Lassman. Evergreen district leaders agreed Wednesday to submit a request for the next round of QSCBs, to be awarded in 2010. The district seeks up to $23.7 million to construct and furnish a new Health and BioScience Academy that had been included in a $249 million bond measure rejected by voters last March.

NATIONAL: When Athletic Business reported in August that light poles manufactured by Whitco Co. LP had collapsed at multiple stadium sites since 2007, the Consumer Product Safety Commission was winding down a months-long investigation but had yet to shed its light on the matter. On Aug. 24, the commission released an alert, stating in part, "CPSC recommends that Whitco Co. LP outdoor steel stadium light poles be inspected by a qualified professional immediately to reduce the risk of poles falling over and crushing a patron or bystander."
Fortunately, despite significant structural damage resulting from nine CPSC-confirmed failures of Whitco poles installed between 2000 and 2006, the commission is unaware of a single reported injury. That said, even poles that show signs of defects but remain standing can wreak havoc on athletic department operations. This month, visible cracks in four poles forced administrators at North Point High School in Charles County, Md., to reschedule or relocate games and practices involving its football, field hockey, and boys' and girls' soccer teams until the poles could be removed. ROTC exercises and physical education classes were displaced, as well. "With the information we have now, we are not taking any chances," Charles County Public Schools superintendent James Richmond stated in a release. "The result of not removing the poles could be devastating."

Days later, University of Arkansas-Monticello athletic director Chris Ratcliff announced that cracks found in the base plates of poles surrounding Convoy Leslie-Cotton Boll Stadium would shut down not only that facility until welders could make repairs, but the adjacent Steelman Fieldhouse and a nearby residence hall, too. "It's just been a very stressful time ever since we discovered the problem," Ratcliff told the Pine Bluff Commercial.

Such discoveries serve to reinforce the need for every institution that hosts activities on lighted fields to heed the CPSC's advice and have poles inspected immediately and regularly, and — as Wesley Oliphant of ReliaPOLE Solutions Inc. told us this summer — preferably by a licensed professional engineer experienced in the design and manufacture of poles

NEVADA: Some state lawmakers questioned the proposed disbursement of federal stimulus money for school energy efficiency programs, saying equal amounts to Nevada's 17 school districts is disproportionate. James Brandmueller, program manager for the Nevada Energy Department, told the Interim Finance Committee's stimulus oversight panel that the $7.5 million grant would provide each district with $441,000. Brandmueller, who has been on the job about a month, said some rural schools are in dire need of upgrades and lack other means for improvements. He said most of the schools in Washoe and Clark counties, the state's largest population hubs, "tend to be newer schools and are more energy efficient." Brandmueller said school districts are being invited to attend workshops to propose projects for the funding.

NATIONAL: Over the last decade, the drinking water at thousands of schools across the country has been found to contain unsafe levels of lead, pesticides and dozens of other toxins. An Associated Press investigation found that contaminants have surfaced at public and private schools in all 50 states — in small towns and inner cities alike. But the problem has gone largely unmonitored by the federal government, even as the number of water safety violations has multiplied.

The contamination is most apparent at schools with wells, which represent 8 to 11 percent of the nation's schools. Roughly one of every five schools with its own water supply violated the Safe Drinking Water Act in the past decade, according to data from the Environmental Protection Agency analyzed by the AP. In California's farm belt, wells at some schools are so tainted with pesticides that students have taken to stuffing their backpacks with bottled water for fear of getting sick from the drinking fountain.

Experts and children's advocates complain that responsibility for drinking water is spread among too many local, state and federal agencies, and that risks are going unreported. Finding a solution, they say, would require a costly new national strategy for monitoring water in schools. Schools with unsafe water represent only a small percentage of the nation's 132,500 schools. And the EPA says the number of violations spiked over the last decade largely because the government has gradually adopted stricter standards for contaminants such as arsenic and some disinfectants.

VERMONT: As temperatures drop in coming weeks, taxpayers in Weathersfield won't have to worry about skyrocketing heating oil prices for the town's K-8 school. School Board Chair Stephen Walasewicz said the new wood chip heating system at the consolidated Weathersfield School — which houses 200 — has saved the board an estimated $50,000 in heating costs in one year when compared with the costs of oil heat for both schools before consolidation. Walasewicz said heating costs for the Perkinsville Elementary School during the 2007-2008 school year were around $29,000 and for the Weathersfield Middle School, about $42,000. Subtracting the cost of the wood chips used last year — 200 tons at rougly $13,000 — Walasewicz said "you're close to $50,000 in annual savings based on market fluctuation." Walasewicz said the savings generated by the new heating system have gone well beyond the board's expectations.
Regarding public concerns about air pollution, Walasewicz said the wood chip boiler has a miniscule impact on the environment.

On a typical winter day, the wood chips are delivered by tractor-trailer trucks and deposited into the school's 60-ton capacity storage pit. The chips, roughly an inch and a half in diameter, are then transported to a conveyor belt by a large augur to a metering bin, which uses lasers to prevent blockage as the chips are transferred to the boiler. "As with any alternative fuel there is a little extra work involved," Graham said. "Every day there's a bit of ash removal from the grates and you have to monitor the computer system which runs the whole thing." Graham said the school's old oil boilers are still used as a back-up heating source.

NEW JERSEY: Galloway Township Public Schools’ energy savings has topped $1 million in just over two years, according to school records and the company that initiated the program. The district has attained a 32 percent cost savings totaling $1,028,769 in 26 months since forming a strategic alliance with Energy Education Inc., a national energy conservation company.

Steve Bolli, manager of school building operations, tracks energy consumption including electricity, water, sewer, natural gas and fuel oil using energy-accounting software. He compares current energy use to a baseline period and calculates the amount of energy that would have been used had conservation and management practices not been implemented. By tracking consumption and analyzing energy use, he can quickly identify and correct areas that need immediate attention.

NEVADA: The Washoe County Commission agreed to give $15 million of $39.7 million in low-cost, federally subsidized economic stimulus bonds to the Washoe County School District for school renovation. Administrators plan to use that amount and $22 million from Reno's share of the stimulus bonds to leverage a $40 million bond sale in a few weeks, said Mark Stanton, assistant school superintendent. The district had sought $23 million.
The vote came after commissioners declared Washoe County a recovery zone, entitling it to bonds that come with a federal subsidy of 45 percent of the interest costs. Because of a formula involving unemployment rates that changed from 2007 to 2008, Reno and Washoe County are the only entities in Nevada to get Recovery Zone Economic Development Bonds under the federal economic recovery act.

NATIONAL: Revisiting efforts to funnel federal funds into school construction, the House has approved a measure that would authorize more than $6.5 billion for K-12 public school and community-college projects. The provision is part of a bill, which the House passed on Sept. 17, that would expand the federal loan program for college students and curtail private lending. The measure would authorize $2.02 billion annually for fiscal 2010 and 2011 for modernization, renovation or repair of K-12 public schools. Another $2.5 billion would be available for new construction or modernization of community colleges, starting in fiscal 2011.

Groups like the American Institute of Architects support the bill and are encouraged to see the House pass it. But Andrew Goldberg, AIA's senior director for federal relations, says the legislation could face a tough battle ahead. "The outlook for passage in the Senate is unclear," Goldberg says. He notes that the Senate could vote on its version of the college-loan measure by the end of September and says, "That¹s where we¹ve seen roadblocks on school construction for some time." The House attempted to add school construction funding to what became the American Recovery and Reinvestment Act this winter, calling for $14 billion. But the Senate zeroed out that school-construction provision in the final bill in February.

Under the new House-passed measure, green design and construction, a major initiative for the Obama administration, factor heavily into the funding requirements. Half of the bill's funds for K-12 school construction would have to be used for green projects in 2010, and 75% of the money would have to be used for such projects in 2011. Half of the funds for community colleges also would be required to go to green projects. The bill also would establish an advisory council on green, high-performing public school facilities.

NATIONAL: Remember the compromise Congress came up with on school facilities in order to pass the economic-stimulus package? Proponents decided to ditch the billions in school construction grants to win support from moderate lawmakers for the overall stimulus. Instead, school districts were allowed to use a portion of their State Fiscal Stabilization Fund money (whatever was leftover after backfilling cuts) for school modernization, along with a whole bunch of other options. Have any of them actually been able to take advantage of that? As we've written before, most of the $39 billion in state stabilization funding went to make up for cuts states had made to K-12 and higher education.

So far, it appears that just three states - Arkansas, North Dakota, and Wyoming - have been able to use a portion of their state stabilization money for school modernization and repair, according to a preliminary analysis by the very knowledgeable folks at the 21st Century School Fund, which advocates for school facilities funding, particularly for districts that serve low-income students. Of course, not all the state stabilization money has flowed just yet, so there could be more school modernization spending down the road. But my guess is that it will be in states that are in comparatively good financial shape, since others will need the money just to make up for what they've lost.

That leaves the school construction bonding authority in the stimulus. States are just beginning to spend one large piece of that, the $22 billion in school construction bonds. Some advocates are worried that needy school districts won't be able to take advantage of the bonds because they can't even put up the principle. But Bob Canavan, of Rebuild America's Schools, a coalition that advocates for school facilities, tells me that the bonds are very popular. In fact, out in California, school districts submitted proposals for over $3 billion worth of projects, even though the state has an allocation of just $700 million for the bonds. The Golden State is holding a lottery to decide who gets the funding, which may be more efficient, but doesn't take need into account, some advocates say.

OHIO: A project as large and complex as the new Edgewood High School has to be a creation not only of an architect, but of everyone who will be affected by it. That’s why the design of the $46 million school has seen input from everyone ranging from the board of education to community members. The current freshman class, which will be the first to attend the new building, will have its say as well. “We were involved in the design and planning,” said John Snyder, board of education president. He said the board especially liked how the building featured many wide, open spaces, with an emphasis on natural light. “It’s not a luxury kind of thing. We’re taking advantage of what’s available. We’re not building a Taj Mahal,” he said. One of the main reasons the new building was needed was to relieve overcrowding, particularly in the elementary buildings. “It provides us more room, for one thing. In the last year our enrollment did fall off a bit. We think that will pick up again. We’ll set ourselves up for 25 to 30 years as far as this new facility. We should not have space problems for years to come. It gives us the ability to put kids in classrooms and not cram kids under the stairwells,” Snyder said.

The Ohio School Facilities Commission, which provides oversight of the construction project, is paying for $20 million of the cost, while the district will pick up the other $26 million. Eventually, this will necessitate a need for more operating money, said Superintendent Larry Knapp. “This will be a bigger, better, smarter building ... the heat and air conditioning will be economically designed and installed ... it will be more economical to operate in the years to come,” said Knapp.

The staff members at Edgewood High School has chimed in too. One of their ideas was to group similar classrooms together, like math and science, to allow more chances for collaboration and sharing of resources. “We’ll be sure the money goes toward education and not aesthetics. The new high school will give us the ability to use resources in the most effective fashion,” said Bob Buccheim, the principal of Edgewood High School. Since the Ohio School Facilities Commission does not fund amenities like auditoriums, the new high school will not have one. The one at the existing high school will continue to be used, and administrators expect that should suffice, since it was built with about 200 more seats than is typical for a school of Edgewood’s size. The district’s design team also invited parents to express their concerns, which included the fact that the building would be technologically advanced. The OSFC requires that every classroom has an LCD projector, the principal said. The class officers from the class of 2013, the first that will attend the new school, will be at today’s groundbreaking, and members of that class will have input on design aspects as the building gets close to completion, Buccheim said.

OHIO: A project as large and complex as the new Edgewood High School has to be a creation not only of an architect, but of everyone who will be affected by it. That’s why the design of the $46 million school has seen input from everyone ranging from the board of education to community members. The current freshman class, which will be the first to attend the new building, will have its say as well. “We were involved in the design and planning,” said John Snyder, board of education president. He said the board especially liked how the building featured many wide, open spaces, with an emphasis on natural light. “It’s not a luxury kind of thing. We’re taking advantage of what’s available. We’re not building a Taj Mahal,” he said. One of the main reasons the new building was needed was to relieve overcrowding, particularly in the elementary buildings. “It provides us more room, for one thing. In the last year our enrollment did fall off a bit. We think that will pick up again. We’ll set ourselves up for 25 to 30 years as far as this new facility. We should not have space problems for years to come. It gives us the ability to put kids in classrooms and not cram kids under the stairwells,” Snyder said.

The Ohio School Facilities Commission, which provides oversight of the construction project, is paying for $20 million of the cost, while the district will pick up the other $26 million. Eventually, this will necessitate a need for more operating money, said Superintendent Larry Knapp. “This will be a bigger, better, smarter building ... the heat and air conditioning will be economically designed and installed ... it will be more economical to operate in the years to come,” said Knapp.

The staff members at Edgewood High School has chimed in too. One of their ideas was to group similar classrooms together, like math and science, to allow more chances for collaboration and sharing of resources. “We’ll be sure the money goes toward education and not aesthetics. The new high school will give us the ability to use resources in the most effective fashion,” said Bob Buccheim, the principal of Edgewood High School. Since the Ohio School Facilities Commission does not fund amenities like auditoriums, the new high school will not have one. The one at the existing high school will continue to be used, and administrators expect that should suffice, since it was built with about 200 more seats than is typical for a school of Edgewood’s size. The district’s design team also invited parents to express their concerns, which included the fact that the building would be technologically advanced. The OSFC requires that every classroom has an LCD projector, the principal said. The class officers from the class of 2013, the first that will attend the new school, will be at today’s groundbreaking, and members of that class will have input on design aspects as the building gets close to completion, Buccheim said.

MICHIGAN: After nearly a century of middle and junior high schools, Detroit Public Schools Emergency Financial Manager Robert Bobb wants to eliminate all the district's middle schools and switch back to kindergarten through eighth grade buildings. Experts say the consistency of staying with one group of teachers through eighth grade can make a dramatic difference. Dubbed elemiddles, the schools can be found in a handful of other metro Detroit districts such as Birmingham, Southfield, Dearborn and Highland Park. They are springing up in large cities such as Philadelphia, Baltimore and Cincinnati.

The concept of combining elementary and middle school grades in one building stems from the idea that middle school-aged children will do better in a more nurturing environment. Urban districts, including Detroit Public Schools, are betting these so-called elemiddle schools will help improve academic achievement. Suburban districts use elemiddles to offer parents a choice between their child transferring to a middle school or continuing in their elementary school building. Educators like them because they give children consistency in their learning and make it easier for teachers to know their students, and teachers can coordinate the curriculum across the grades. Parents like them because their children can attend one school for a longer period of time. Some don't want their children to grow up too fast.

There is little hard research to back up the theories about the benefits of elemiddle schools. One study conducted by Johns Hopkins university in 2007 found elemiddle students in Philadelphia did better academically than their middle school counterparts. The study concluded the improvement was due to the school having fewer students in each grade, rather than the grade configuration. Birmingham's Covington School has a perfect score in its state report card.

OREGON: Hermiston taxpayers could save as much as $23 million over the next 20 years, thanks to a federally backed program allowing school districts to sell bonds at a no-interest rate. The Hermiston School District announced it's been approved to sell $25 million of its $69.9 million bond package through the Qualified School Construction Bond Program, funded by the federal stimulus package. The district applied through the state Department of Education last month. Approval means the district has until Dec. 31 to issue the bonds. Under the program, the district would have to pay back only the investment amount during the life of the bond - without interest. Hermiston's $25 million approval is the maximum allowed by the program. But if any of Oregon's share of the money goes unclaimed, the district could apply for $10 million more in sales, according to the application. Hermiston voters approved the bond package last year. It will finance the construction of three replacement school buildings:?Armand Larive Middle School, West Park Elementary School and Sunset Elementary School.

OKLAHOMA: The University of Oklahoma will take advantage of a federal program that garners a lower interest rate on the $127 million in bonds it will soon issue. For the Build America Bonds, the federal government pays some of the interest on the bonds issued, reducing the amount of interest paid by OU to about 3.8 percent, said Chris Kuwitzky, chief financial officer of the Norman campus. Normally, OU issues bonds at a nonprofit rate, garnering 4.6 to 4.8 percent interest, he said. The university would have issued bonds that way, but the Build America bonds turned out to have the perfect timing on OU's current bond projects, Kuwitzky said. The projects to be funded by the bonds already have been started, and require bond funds to complete, he said.

MICHIGAN: When retired Grand Rapids fire investigator Pablo Martinez walked in the colorful gleaming new lobby of his old neighborhood elementary school this week, he felt a surge of joy and pride. "It's on the up," he said about the Grandville Avenue neighborhood and its newest star attraction: a gorgeous $11.5 million renovation of Cesar E. Chavez Elementary, which was dedicated with a neighborhood open house and party. Martinez said it's fitting his old Hall Elementary is renamed Cesar Chavez, since the civil rights leader wanted all children to get the education he lacked when working the fields.

Pride is what every preschool-to-fifth-grade student who walks through those same doors will feel. The school's colorful murals, fun playground, rooftop garden, well-equipped classrooms, impressive library, and wall of giant windows onto Grandville Avenue send a powerful message to the children of a needy neighborhood. The school sends the message that students there are important to city residents who agreed to raise their taxes to fund the $11.5 million in improvements to the tired old school. City residents wanted them to have an impressive public school building to learn in every day, just like schools in wealthy districts. The school's wall of windows anchors the southern end of Grandville Avenue, a bookend to the beautiful neighborhood arts academy and library to the north.

The renovation of Cesar Chavez Elementary is the 11th and final major capital improvement project by the district, all funded by a $165 million school construction bond approved by city voters in 2004. The success of each of those 11 projects lays a solid foundation for when the district goes back to residents to ask for part two: money to fund improvements at the four neighborhood high schools and City High

TENNESSEE: Memphis City and Shelby County schools have been approved by the state to receive a combined $55.5 million in federal stimulus funds for construction projects. The districts applied for the Qualified School Construction Bonds with permission from the Shelby County Commission, which plans to repay the no-interest loans within 15 years. Shelby schools, which requested $25.7 million, was among several Tennessee school systems competing for the federal bonds given out by the state. The state awarded the suburban district $13.8 million to replace worn-out Elmore Park Middle.

The Bartlett school was built in the 1950s and mostly has wood-frame buildings, said Richard Holden, chief of operations for Shelby schools. Elmore Park doesn't meet modern safety codes and has several portables. "It has exceeded its life expectancy," Holden said. "It's time to replace it." They plan to build a new Elmore Park on the current campus and have it ready by the start of the 2011-12 school year, Holden said. But the district is still left without funding for much-needed improvements, including plans to relocate Millington Central High's cafeteria, Holden said.

Memphis City Schools requested and was granted $41.7 million, the biggest allotment of any district in the state. MCS didn't have to compete for funds and will receive the money directly from the federal government because of its large population of impoverished students. The funds are important to MCS because they allow the district to get started on projects this year. With tax receipts down, "it's difficult for the school board to predict when it might be able to get money from the county to build these schools or renovate," said board member Betty Mallott

NORTH CAROLINA: The Macon County School System is making plans to utilize money from two potential sources. The state has approved applications the system submitted for both school renovations and new construction. The state has approved $3.8 million in Qualified Zone Academy Bonds (QZAB) and $1,348,953 in Qualified School Construction Bonds (QSCB). If the board of commissioners decides to approve the debt, the governmental bonds are interest-free.
The QZAB funding must only be used for upgrades and renovations to existing facilities. School Superintendent Dan Brigman said that the QZAB funding could cover necessary renovations at both Nantahala School and Franklin High School. A 10 percent community match is required for use of QZAB funding. The matches can be made in either funding, services or support. The QSCB funding can be used for new school construction and requires no match. In order to secure the funding, the system must have projects ready to go, with bids in hand, by December 31 of this year.

It feels like the more we build,” said Commissioner Jim Davis, “the more ya’ll want ... We’re spending a ton of money.” Some joked that the interest-free loans, provided through the Federal Recovery and Reinvestment Act, are like “free money.” Mary Gruebnau, statistical research analyst with the State Department of Public Instruction, said that the QZAB and QSCB funding is a great deal, but must be paid back. She said that, compared to a coventional loan, these governmental bonds save about 50 percent over time. Gruebnau added that many school systems have applied for the funding, several requesting as much as $34 million.

NATIONAL: Secretary of the Interior Ken Salazar announced that 20 Historically Black Colleges and Universities (HBCUs) will be the beneficiaries of $14.25 million for historic preservation grants aimed at providing assistance in the repair of historic buildings on their campuses.
In a press conference at Howard University with university president Dr. Sidney A. Ribeau, Salazar noted that the Department made these funds available under the American Recovery and Reinvestment Act (ARRA) for projects that will repair and preserve campus buildings listed on the National Register of Historic Places. “The recovery funds not only will restore historic buildings on these campuses but also will provide a boost to individuals and companies performing the repairs, college communities and related local economies,” Secretary of the Interior Ken Salazar said today.

The National Park Service invited all HBCUs to submit grant applications for grants to repair and preserve historic buildings on their campuses. The buildings selected for this apportionment of grant funds were assessed as being the most architecturally and historically significant buildings on these HBCU campuses, and as needing essential repairs to preserve them and make them useable. These much needed repairs will address issues such as termite and wood rot damage, leaking roofs and water damage, asbestos and lead paint removal, masonry work, electrical rewiring, heating, air conditioning and ventilation systems and achieving accessibility for disabled persons.
The full list of the funding amounts made available to HBCU projects follows.

TENNESSEE: A report released by the Tennessee Comptroller of the Treasury’s Offices of Research and Education Accountability (OREA) examines Tennessee’s efforts to make sure that its schools are safe. A legislative request to initiate the report was prompted after a tragic fatal shooting at a Tennessee high school in 2008. The Keeping Tennessee Schools Safe report provides a comparison of state laws, policies and requirements with accepted best practices for keeping schools safe from violence. The report states that Tennessee has made significant progress since the mid-1990s toward ensuring the safety of its students and school personnel. The 2007 Schools Against Violence in Education (SAVE) Act established statewide comprehensive planning and accountability requirements for school districts to meet regarding school safety and violence prevention efforts.

Although safety and violence prevention efforts are addressing most of the identified best practices for safe and secure learning environments, staff and funding needed to implement the requirements are limited and decreasing, according to the report. In addition, the report concludes that state-level guidance related to school building security is lacking. Such measures include school resource officers, metal detectors, random searches and video surveillance systems.
“It is intuitive that such efforts enhance building security, but we found little research evaluating those security measures as a means to deter or prevent violent incidents,” said Susan Mattson, legislative research analyst and co-author of the report. “Although the SAVE Act currently requires school officials to report on security strategies and procedures they have in place, it does not require them to assess their appropriateness or effectiveness.”
The report describes options the Tennessee General Assembly and state education officials could take for enhancing and improving school safety efforts. Some of the options listed for consideration include how to allocate limited state funds for school safety; requiring statewide school climate assessments to better guide the state’s policies and programs; reexamining Tennessee’s criteria for designating schools as dangerous; and to more closely monitor the SAVE Act’s effectiveness.

CALIFORNIA: Portola Valley schools may go solar, thanks to a nearly $3 million windfall from federal stimulus funds. A proposed project would install photovoltaic solar power systems at both Corte Madera and Ormondale schools, and be funded by up to $2.85 million in tax credits from the Qualified School Construction Bonds program, said Portola Valley School District board member Judy Mendelsohn. The systems would generate enough power to cover 100 percent of the school's energy costs, she said. "If we can finance both projects with bonds, that's great, and if we can't afford it, we can't afford it," Ms. Mendelsohn told The Almanac. "Everybody wants to be green, but for the district, we'll only do it if fiscally it makes sense." A likely spot for the solar panels is the roofs of the multi-use gyms, she said.

The tax credits cover the interest payments on school construction bonds, and are intended to free up school district money for additional construction or facility rehabilitation projects. The bonds would have to be issued by the end of 2009, or the district forfeits the stimulus funds, Ms. Mendelsohn said. Voter approval for the bonds isn't needed, she said. "The payments to pay back the bonds would come from our savings in energy costs, (so) no new taxes or assessments would be needed," she said. "Because the bonds would be interest-free for the district, we would get substantial savings over the 15-year term of the bonds. This savings is what may make the project financially feasible for us."

Portola Valley was one of only two districts in San Mateo County to be chosen, via a lottery, to receive the stimulus money. The other one is the San Mateo-Foster City school district. California's share of the $22 billion Qualified School Construction Bond tax credits is an estimated $2.7 billion over two years. It's part of the American Recovery and Reinvestment Act that was signed into law in February. A second wave of the stimulus money will be allocated next year.

WASHINGTON: Hal Beumel figured the Everett School District had an enticing project when it went out to bid for a new elementary school. The district’s director of construction was disappointed when just one contractor bid. That was three years ago. Times have changed dramatically since then. Wall Street wobbled, companies pulled back on expansion plans, and now contractors hungry for work are literally going back to school. These days, the Everett district wants to rebuild two more schools. For one project, they got seven bids. The other drew nine.

The competition has resulted in millions of dollars in savings for taxpayers, and projects that would have been bare bones three years ago are now being built with additional features. “It’s making up for the hard hits we took a few years ago,” Beumel said. “It’s also a way we can get jobs and money into the economy as well.” It’s not just a windfall for Everett. Low bids and robust competition are becoming a familiar story for school construction projects in Snohomish County and throughout Washington. “Across the state, there’s just a lot more bidders out there,” said Gordon Beck, director of facilities for the state Office of Superintendent of Public Instruction.

Today’s bidding climate is a far cry from the sticker shock districts felt in 2006 when construction costs spiked. At that time, analysts blamed surging costs on several factors. Steel, concrete and copper wiring were at a premium because of China’s construction boom and the rebuilding in the Gulf Coast region following Hurricane Katrina. High oil prices jacked up the cost of getting those materials to building sites. And construction projects closer to home, such as high-rises in downtown Bellevue, were gobbling up workers and intensifying the competition for labor.

WASHINGTON: Hal Beumel figured the Everett School District had an enticing project when it went out to bid for a new elementary school. The district’s director of construction was disappointed when just one contractor bid. That was three years ago. Times have changed dramatically since then. Wall Street wobbled, companies pulled back on expansion plans, and now contractors hungry for work are literally going back to school. These days, the Everett district wants to rebuild two more schools. For one project, they got seven bids. The other drew nine.

The competition has resulted in millions of dollars in savings for taxpayers, and projects that would have been bare bones three years ago are now being built with additional features. “It’s making up for the hard hits we took a few years ago,” Beumel said. “It’s also a way we can get jobs and money into the economy as well.” It’s not just a windfall for Everett. Low bids and robust competition are becoming a familiar story for school construction projects in Snohomish County and throughout Washington. “Across the state, there’s just a lot more bidders out there,” said Gordon Beck, director of facilities for the state Office of Superintendent of Public Instruction.

Today’s bidding climate is a far cry from the sticker shock districts felt in 2006 when construction costs spiked. At that time, analysts blamed surging costs on several factors. Steel, concrete and copper wiring were at a premium because of China’s construction boom and the rebuilding in the Gulf Coast region following Hurricane Katrina. High oil prices jacked up the cost of getting those materials to building sites. And construction projects closer to home, such as high-rises in downtown Bellevue, were gobbling up workers and intensifying the competition for labor.

ARIZONA: Assistant Secretary-Indian Affairs Larry Echo Hawk joined Navajo Nation President Joe Shirley and other Indian Affairs and Navajo tribal officials September 16 in a ceremonial groundbreaking event for Phase II of a major school replacement and improvement project at the historic Rough Rock Community School on the Navajo Reservation in northeastern Arizona. The project is funded under the American Recovery and Reinvestment Act of 2009 (ARRA) and is being carried out under the Indian Affairs Office of Facilities, Environmental and Cultural Resources (OFECR) in conjunction with the Bureau of Indian Education (BIE), the Navajo Nation and the Rough Rock Community School.
“The Rough Rock Community School Replacement Project is an important priority for the Interior Department and Bureau of Indian Education,” Echo Hawk said. “The $52.5 million provided under the American Recovery and Reinvestment Act will revitalize this historic school by creating an improved learning environment for its students, teachers and staff, as well as bringing much-needed jobs to the Navajo people.”

Opened in July 1966 as the Rough Rock Demonstration School, the facility was the first Bureau of Indian Affairs school to be directly operated by American Indians themselves, as well as being the first Navajo-operated BIA school. The K-12 school, which currently serves approximately 440 day and residential students, is still a part of the Bureau school system, now administered by the BIE.

The project is being built in two parts. Phase I, which began on June 15, is the construction of a replacement K-8 dormitory for residential students. Phase II will be the replacement of a K-8 academic building and two dormitories. Other structures on the Rough Rock campus also will receive improvements. The project, which must be completed within two years, is being developed to meet the U.S. Green Building Council’s Leadership in Energy & Environmental Design (LEED) Silver Certification criteria. In addition to applying green design, materials and technology, the Rough Rock Community School Replacement Project, which is on the BIE’s 2004 Replacement School Construction Priority List, also meets ARRA requirements for being “shovel-ready” and creating jobs. The OFECR estimates that the project will create 40 to 50 jobs that will provide employment to Navajo tribal members.

NATIONAL: As school doors across the nation open for the new school year, the U.S. Green Building Council (USGBC) is set to launch year three of its National Green Schools Campaign, a broad-based initiative involving policy makers, teachers, parents and students who want to substantially improve the indoor environmental quality of America's schools, along with making them more energy efficient, water efficient and resource efficient.
On September 8, USGBC and 11 educational and environmental groups kicked off the Coalition for Green Schools at a meeting featuring remarks by Martha Kanter, Under Secretary for the U.S. Department of Education, about the multiple, but critically important pathways for greening America's schools. This first ever alliance between the nation's leading educational and environmental organizations brings together the country's strongest advocates for healthy, safe and sustainable K-12 learning environments prized for their contribution to higher test scores among students, higher retention among teachers and lower absenteeism rates for both groups because of improved indoor air quality.

COLORADO: Charlie Jackson walks around to the school buildings and sees the same problems over and over again, because the district never had enough money to address those problems - until now. "I think all of us have the same issues that we're sitting there with limited funding with maintenance projects that keep backing up," Jackson said. Jackson is the director of maintenance for the Alamosa School District. He says the district has needed new buildings for decades, but because its lower population, it cannot generate enough tax dollars. "Our budget is $12 million a year, and we still have to educate kids," Jackson said. He says Alamosa Schools have repair needs that total closer to $40 million as buildings approach 100 years of service. At Polmost Primary, students and teachers have dealt with at least 60 roof leaks within the past year. "We end up patching and patching and patching," Jackson said. Polmost is also overcrowded. Alamosa Superintendent Robert Alejo says its small kitchen and small common areas put a strain on the student body. Right now, about one-third of all the students at Polmost must attend class in modular buildings outside dubbed "trailer row."

State Treasurer Cary Kennedy and other leaders worked to change that. They created the B.E.S.T. Program or Building Excellent Schools Today. "B.E.S.T. allows the state to partner with those small rural school districts to give them the access to the capital that they need," Kennedy said. B.E.S.T. utilizes the School Land Trust. When Colorado became a state, the federal government donated millions of acres of land to be used solely to support K-12 schools. Farmers, oil companies, businesses use these lands and pay rent or mining fees to the state each year.
The revenue generated has grown to about $90 million per year. Before B.E.S.T., all of that money was put into the Colorado School Permanent Fund. The interest earned on that fund is used to support schools. The increased revenue from the Land Trust is allowing B.E.S.T. to use some of that money to subsidize construction projects in rural school districts, while continuing to grow the Permanent Fund. B.E.S.T. has determined funding rates for school districts based on need. For major projects, a local district can pass a bond measure to raise a portion of construction costs for a new building. B.E.S.T. will provide the rest. For example, a district may raise $2 million dollars through a bond issue and receive another $18 million through B.E.S.T. to build a $20 million school building.

TENNESSEE: The Cumberland County School System has been awarded $2.6 million as part of the Qualified School Construction Bonds program of the Tennessee State School Bond Authority. The zero-interest loan will go toward the $5.28 million energy efficiency project approved in May by the Cumberland County Board of Education.
TRANE has recommended an energy conservation program to upgrade lighting, HVAC, windows and plumbing systems across the school system. The total project has been estimated at $5.28 million. While much of the project has a 15-year payback, some of the necessary upgrades cannot provide enough energy savings during that period of time to recoup their cost, McBee told the Chronicle. That includes new windows for Homestead and Pine View elementary schools, which are not insulated. At Pine View, caulking is gone and duct tape is used to hold the windows in frames. Replacement of the heating system at Cumberland County High School is another project with capital expenditures. The Cumberland County Board of Education has already approved moving forward with that project, since a boiler at the school went out in the spring and replacement is necessary to heat the school this winter.

An energy audit of the school system found utility costs were about 20 percent higher than expected, which TRANE said was due to inefficient facilities and worn-out equipment. TRANE recommended an energy program and is guaranteeing projected energy cost savings, McBee said, noting that if the school system didn't see the projected savings, TRANE would make up the difference. Those savings would be applied to any bonds needed to pay for the project. If the school system could obtain zero-percent financing for the entire project, the payback on the investment would be 15 years, McBee said, with TRANE projecting $6.25 million in energy savings over 15 years.

Only 12 school systems across the state were approved for the QSCB bonds, for a total of $180 million. Awards were made on a competitive basis. Communities authorized to receive portions of the bond money will be required to spend it on the projects within three years of the bond sale. Funds are expected to be available in late November. Funding for the bonds comes through the American Recovery and Reinvestment Act in the form of tax credit bonds.
The school system is also looking at other grant funding opportunities and has made several applications. There is also an application pending through the Qualified Zone Academy Bonds program, which also provides for no-interest bonds.

NEW YORK: The New York City Public Schools' Middle School 131 has adopted a bold and radical experiment. "The School of One" is a prototype for our nation's schools in the decades to come. It's a model much more powerful and potentially far-reaching than any other reform, including much-ballyhooed charter schools, to date.

Today's schools are an anachronism. They resemble the assembly lines of the industrial era, when they were conceived. Groups of 25 to 30 children, beginning at age five, are moved through 13 years of schooling, attending 180 days each year, and taking five major subjects daily for lengths of time specified by the Carnegie Foundation in 1910. These schools are time-based -- all children are expected to master the same studies at the same rate over the same period of time. They focus on teaching -- how long students are exposed to instruction, not how much they have learned. They are rooted in the belief that one size fits all -- all students can benefit equally from the same curriculum and methods of instruction.
We have learned much about education since today's schools were created. We know now that what students learn and what they are taught are different, and that learning is what matters. We know that children learn different subjects at different rates, some slower and some faster. We know that children have different learning styles, which make different methods of instruction more or less effective for them. We also know that today's new technologies offer the prospect of individualizing education for each child and gearing instruction to the student's particular learning style and most effective means of instruction.

In the years to come, we will be challenged to rebuild our schools to reflect these realities, largely because our information economy, which focuses on achieving common outcomes rather than seeking common processes, demands it. Our schools will shift their attention from teaching to learning, time-based to outcome-based education, and mass instruction to individualized instruction.
The School of One turns the current model of education on its head, flipping the relationship between teaching and learning. Student learning becomes the focus -- the driver -- of schooling. Specifically, the School of One translates fifth- through seventh-grade math into 77 skill and knowledge areas. Students are assessed on their mastery of each area, and the program is geared to each student's areas of strength and weakness. The goal is for each student to master all 77 skills and body of knowledge.

MARYLAND: Dozens of Baltimore County parents rallied in Towson, continuing to push for air conditioning in a Lutherville middle school where they say a renovation project has made the classrooms intolerable on warm days. Ridgely Middle School parents have been seeking a solution for about two years, ever since the school was renovated with design features - tighter windows, lowered ceilings and an insulated roof - to maximize air-conditioning efficiency. But the cooling units were never installed because the project budget did not include money for the equipment, school officials have said.

County Councilman Kevin Kamenetz said that he has asked the county auditor to investigate whether the situation at Ridgely is unique, using temperature logs and other data, and to find alternative funding sources, such as federal stimulus money or excess funds from other projects. Slightly more than half of the county's school, center and program buildings lack air conditioning. During a presentation last December, school officials said it could take seven to 10 years to install air conditioning in the nearly 90 schools without it - and that retrofitting buildings just for air conditioning could easily exceed $450 million.

NEW JERSEY: Citing the importance of school construction investments to improved educational opportunities, Governor Jon S. Corzine, visited the Edmund Hmieleski, Jr., Early Childhood Center in Perth Amboy to announce the New Jersey Schools Development Authority (SDA) has completed 144 major construction projects, including 45 new schools. All told, the SDA has invested $5.293 billion in projects since January 2006, generating an estimated 45,800 jobs and creating approximately 45,000 new student seats.

During the visit, the Governor said New Jersey's school construction program has emerged as a vital component in the education of students while also creating jobs to stimulate the State's economy. "The school construction program is building a better future for students throughout New Jersey as well as for our state's economy," Governor Corzine said. "Not only do the students of today benefit from these projects, but future generations of students will benefit for decades to come. This program is playing a critical role in helping New Jersey take the lead in recovering from this economic recession, creating and saving thousands of jobs." Forty-five of these 144 construction projects are new schools. The others include additions and/or renovations, address overcrowding, provide additional program space for early childhood education and deliver up-to-date technology such as interactive smart boards.

In addition to projects in SDA Districts, the SDA provides grants of at least 40 percent of costs to Regular Operating Districts. Approximately 80 percent of RODs throughout New Jersey have benefited from these grants. The SDA continues to advance projects to meet the Governor's direction to mitigate the effects of the national recession. It is on track to begin preliminary or full construction of 27 Capital Plan projects in 2009. Overall, the SDA will invest $1.3 billion in these projects. Over the life of the projects, the SDA expects to create or save approximately 11,000 jobs. This funding was made possible by legislation signed by the Governor in July 2008, authorizing $3.9 billion in new school-construction funding, creating the largest state school construction program in the country.

New Jersey's school construction program has achieved these milestones while undergoing significant reforms. The SDA has streamlined and accelerated processes. Now, all SDA projects are required to have a comprehensive budget, scope and schedule before receiving SDA Board approval and beginning work on a project. In addition, the SDA now operates under a Capital Plan, developed in 2008, that allocates funding and dedicates reserves to 52 projects to ensure all projects are completed. Initiatives to recover funds where possible have also been launched by the SDA. An Environmental Cost Recovery Initiative Team was established to recover funds from responsible parties for the costs of environmental remediation of project sites. The SDA's Office of Chief Counsel is working to recover funds from responsible parties for project delays and design errors. So far, the SDA has recovered $15.6 million.

COLORADO: More than half of the 275 projects in Denver Public Schools' 2008 bond are complete and district officials think they have realized $55 million in savings through low interest rates over the life of the bond. Denver voters passed a $454 million bond in November, the largest school construction bond in Colorado history. The repayment, including interest, was expected to be as much as $990 million. The district sold the first $150 million of bonds earlier this year at a lower-than-expected net interest rate of 5.1 percent — resulting in $55 million in savings, said chief operating officer David Suppes. Suppes said the savings could continue through at least two programs designed through the federal recovery act to help the municipal bond markets.
The bond was to make critical school repairs, build a new school campus and restore historic North High School. The district also thinks it will save a minimum of $200,000 a year in energy costs by upgrading to energy-efficient fixtures, such as boilers and chillers. "We are thrilled to go green and save the district some green," said Superintendent Tom Boasberg.

NATIONAL: Almost a year after tests by USA TODAY found significant levels of two potentially toxic metals in the air outside the Highlands High School in the Allegheny River valley, local health officials expanded their own monitoring efforts here. The reason: Air samples taken by the county earlier this year showed even higher levels of the metals than what USA TODAY found — on two days, at least nine times more. Highlands, flanked by two metals plants, is among scores of schools where regulators — local, state or federal — are monitoring outdoor air for toxic chemicals, many that pose unique dangers to kids. The monitoring is not required by law but came in response to the USA TODAY investigation that identified hundreds of schools where chemicals from nearby industries may permeate the air.

"We don't know enough to say it's a problem, but we don't know enough to say it's not a problem," says Keeve Nachman, an environmental toxicologist with Johns Hopkins University who examined the county's findings for USA TODAY. He says the county's findings reflect "potentially concerning exposures." Such unanswered questions have prompted action across the nation. Residents in Indiana and South Carolina have filed lawsuits against industries in their communities. Activists in Pennsylvania, Texas and Ohio continue to fight construction of facilities they believe would threaten the health of children in the area. The government also has responded. In an unprecedented step, the U.S. Environmental Protection Agency launched a $2.25 million program to examine air quality outside 63 schools in 22 states. In addition, EPA administrator Lisa Jackson appointed a new director for the agency's Office of Children's Health Protection soon after the Obama administration took office. Ruth McCully, the former director, told USA TODAY last year that examining air quality outside schools was "not my responsibility."

To date, the EPA has begun monitoring at 60 of the 63 locations. As at Highlands, officials stress that the first samples are intended to discern whether students face any immediate dangers from toxic chemicals, not to evaluate chronic health risks, which often requires longer monitoring periods. At a few schools, preliminary results indicate chemicals at levels that generally are considered safe for short-term exposures. At other locations, monitoring continues. At Stevens Creek Elementary in Cupertino, Calif., for example, regulators plan to monitor for at least a year because a nearby cement kiln wasn't operating when the first samples were taken in July. Such facilities typically release chromium. "This is a really important effort. We see this first and foremost as an effort to help us understand the broader issues we might be dealing with," says Peter Grevatt, who replaced McCully as the director of the EPA's children's health office. "By no means do we think that the focus is just on these" 63 schools. "It's really an effort to try to understand broadly the scope of the issues we might be looking at nationwide."

VIRGINIA: Lynchburg has been awarded up to $18 million in zero-interest bonds from the federal stimulus bill for the construction of the new Sandusky Middle School. City officials expect they will only be able to use $10.5 million of that due to eligibility restrictions. The bonds can only be used for future construction costs; the new middle school project broke ground last year and only has about $10.5 million in expenses left, City Manager Kimball Payne said. The award will save the city millions in future interest payments. The new Sandusky Middle School has a total budget of $28 million and will open in 2010. It will be the city’s first new school in almost 30 years. Its energy-conscious design is expected to be LEED-certified by the U.S. Green Building Council.

The state as a whole has $191 million in stimulus-backed bonds to fund school construction projects. The bonds are being allocated directly by Governor Timothy M. Kaine. The state eliminated funding for its own school construction program due to the budget crisis and is using the waiting list from that program to determine how to distribute the stimulus money.

VIRGINIA: Lynchburg has been awarded up to $18 million in zero-interest bonds from the federal stimulus bill for the construction of the new Sandusky Middle School. City officials expect they will only be able to use $10.5 million of that due to eligibility restrictions. The bonds can only be used for future construction costs; the new middle school project broke ground last year and only has about $10.5 million in expenses left, City Manager Kimball Payne said. The award will save the city millions in future interest payments. The new Sandusky Middle School has a total budget of $28 million and will open in 2010. It will be the city’s first new school in almost 30 years. Its energy-conscious design is expected to be LEED-certified by the U.S. Green Building Council.

The state as a whole has $191 million in stimulus-backed bonds to fund school construction projects. The bonds are being allocated directly by Governor Timothy M. Kaine. The state eliminated funding for its own school construction program due to the budget crisis and is using the waiting list from that program to determine how to distribute the stimulus money.

TENNESSEE: Maryville City Schools’ Coulter Grove Intermediate School has been approved for a $20.4 million no-interest loan available through the federal stimulus program. Maryville was among 16 school systems selected through a competitive application process to receive a portion of the state proceeds. Stephanie Thompson, Maryville Director of Schools estimates between 20 and 25 people had worked on the loan application during the program’s two-week turnaround. Last November city officials postponed a $25 million bond issuance for Coulter Grove Intermediate School due to the global financial crisis.

The Tennessee State School Bond Authority agreed to sell more than $180 million worth of Qualified School Construction Bonds as part of a program created by the federal American Recovery and Reinvestment Act. State officials said that 135 projects with a total value of $305 million had been requested. Of the total bond proceeds, Memphis City Schools will receive $41.7 million and Metropolitan Nashville Public Schools will receive $21.1 million. Communities receiving funds will be required to spend the money on projects within three years of the bond sale. The sale is expected to be completed with bond proceeds available for disbursement in late November.

VIRGINIA: Governor Timothy M. Kaine announced the allocation of $71.6 million in Qualified School Construction Bonds (QSCB) for eight projects in seven Virginia localities. The no-interest bonds, established by the American Recovery and Reinvestment Act, are available to localities for K-12 school construction, renovation, and land acquisition for schools. Today's announcement is the first allocation from approximately $191 million authorized for Virginia through the QSCB program in 2009.
"When I urged citizens earlier this year to provide their ideas for use of the ARRA funds, they overwhelmingly pointed to education and infrastructure and I am pleased that the ARRA has emphasized these areas as well," said Governor Kaine. "Some of these projects have waited over a year for financing and I'm glad they will move forward with funding from the Recovery Act. I am certain that this funding will ease some of the need in these communities by creating jobs and improving learning environments for our children."

Allocation of the QSCB funds was made at the discretion of Governor Kaine and he has issued Executive Order 90 outlining his allocation decision for this initial issuance of bonds. Later this fall, the Governor will announce the use of the remainder of the $191 million for 2009. Virginia expects to receive an additional $191 million from the QSCB program in 2010.

KANSAS: Construction on two Goddard schools inside Wichita city limits stopped because of a dispute with Wichita building code officials over whether the schools need firewalls in the ceilings. It will be up to a Sedgwick County district judge to decide whether Goddard has to follow Wichita codes that call for the $500,000 firewalls or Kansas Department of Education codes that say the planned sprinkler systems are enough to keep everyone safe. At the core of the dispute is an argument over whether city building inspectors can require different standards from what is required by the State Board of Education, which authorizes construction plans for any new school in Kansas.Kurt Schroeder, the city's superintendent of central inspection, said Wichita's reading of international building codes shows sprinkler systems can't be used as a substitute for fire-resistant walls. Apollo Elementary and Eisenhower Middle schools are expected to be built by spring 2010 and used by students that fall. Wyatt Hoch, a lawyer representing the Goddard School District said "The Goddard district needs a resolution of what must be built so the construction work can resume."

CALIFORNIA: Like a kindergarten teacher kneeling down to meet her 3-foot-tall charges at eye level, the new elementary school at the Ambassador Hotel site, set to open today, is impeccably attuned to the importance of a first impression. Designed by the Pasadena firm Gonzalez Goodale Architects, the school extends a friendly, crisply proportioned façade along 8th Street, on the southern edge of the sprawling 76-acre site over which the hotel long presided. Inside, the two-story school wraps 46 classrooms around a pair of generously sized courtyards. It accents its combination of zinc panels and expanses of glass with a number of walls painted Creamsicle orange.
Once that gregarious welcome wears off, though, the feeling that the school engenders is mostly an unshakable ambivalence. Its very existence, after all, means that Myron Hunt's 1921 Ambassador building is gone for good, which is in turn a reminder of the Los Angeles Unified School District's unwillingness to consider, in any but a perfunctory way, adapting the hotel for use as a school.

Beyond that, the architects' attempts to ground the school firmly in its urban context have also succeeded in blunting, at least to a degree, its sense of aesthetic ambition. If the Gonzalez Goodale design is propelled by any boldness, it lies in the decision to regrade the sloping southern end of the old hotel site so the elementary school could meet 8th Street at sidewalk level. But that move, though complicated and expensive to execute, is essentially invisible now that the school is complete.

Of course, all the hand wringing about Myron Hunt and his legacy, and how Los Angeles treats its aging architecture, will mean nothing to the children who begin school on the campus. (Two separate schools, actually, will share the elementary building: UCLA Community School and the New Open World Academy.) Those students will enter the school through a pair of generously sized entryways that the architects refer to as "portals." A library behind mostly glass walls anchors the architectural composition at the southwest corner, and includes a door to the street that will allow the space to be used for community events in the evenings and when the school is not in session. Once inside, students will move along shaded, open-air hallways on both levels, some topped with large circular skylights and others offering views of the middle school and high school sites, with the Hollywood Hills rising in the distance. At the same time, the elementary grounds are marked by an enveloping, protective feel. Keeping the elementary students' space enclosed while also offering them glimpses of the campuses they'll attend later on is the school's most effective architectural gesture.

INTERNATIONAL: The 2009 Open Architecture Challenge, a biennial design competition, brought together more that 7000+ K-12 students, teachers and building professionals to work on upgrading and expanding their learning environments into innovative, cost-effective and sustainable classrooms for the future. Lead by Architecture for Humanity, Orient Global and a consortium of 30 partners, this initiative created over 400 buildable solutions -- from safe and sustainable alternatives to the ubiquitous portable trailers to urban upgrading in Colombia and India. From June to August an international jury of design professionals, educators and K-12 students went through every scheme before settling on eight finalists. Each finalist was thoroughly vetted and this week a winner was selected.

A small independent non-profit school in Victor, Idaho (pop. 1200), the Teton Valley Community School, will receive $50,000 to help fund their new classroom and the winning design team, Section Eight [Design], is awarded $5,000 to help implement the scheme. By providing cost-effective and sustainable teaching spaces the designers have looked to extend the learning environment beyond the four walls of the classroom. Movable panels allow students to reconfigure their space as needed. The building itself is designed to be a learning tool. The mechanical room, a building component normally closed from view, can be seen from the science lab allowing students to learn how heating and cooling systems function first hand. Their design for a potentially off-the-grid stand alone classroom will allow the school to emerge out of their existing structure, a remodeled house, into a space designed specifically for their students and teachers.

NEW JERSEY: Public construction projects are getting cheaper as material prices fall and builders compete for contracts. According to the American Association of State Highway and Transportation Officials winning bids are coming in 5 to 12 percent below estimates. The New Jersey School Development Authority has noticed an even sharper drop; four of their contracts awarded this year are 15 to 39 percent below state engineers’ estimates.

One reason for the lower bids is that prices of construction materials have been falling. The federal Bureau of Labor Statistics reported the price of steel and iron scrap fell nearly 57 percent from June 2008 to June 2009, and cement prices were down 15 percent over that period. The falling bids go beyond materials. Texas –based contractor Jim Andoga said his company, facing more competition, has reduced built-in profit margins in its bids by about 20 to 25 percent over the past year. In 2006, he bid an average of 9 percent over engineers' estimates, compared with 17 percent under this year. Kris Kolluri, the CEO of New Jersey's school-building authority, said he won't promise that the cost saving will equal more schools than the state is already planning, for now. Real estate and construction costs can fluctuate quickly, he’s routing the savings into a contingency fund.

ALABAMA: Alabama School systems with construction projects may find savings through a federal stimulus option. About $340 million in the interest-free bonds will be available for school systems in Alabama during the next two fiscal years, said Ken Roberts, chief operating officer for the Alabama Association of School Boards. Local school officials say the bonds could mean huge savings for their school systems while helping to improve facilities in their districts. According to Robers, in August, the state Legislature amended the process in place for the state to issue debt on behalf of schools to comply with federal stimulus guidelines. The state is backing the bonds, which ultimately will be handled by Alabama's Public School and College Authority, the state's vehicle for issuing school bond debt. "The state can issue debt cheaper than a school district because the state generally has a better bond rating," Roberts said. School systems also are saving on bond issuance costs because the state is pooling all districts' bond issues into one large issue.

Alabama's three largest school districts, Montgomery, Mobile and Birmingham, will share about $50 million of the available funding. According to the Alabama Department of Education, the federal stimulus guidelines stipulate that "these three districts have dedicated amounts because they have the highest poverty ranking.” Montgomery County has applied for $11.4 million in bonds through the state and sees the qualified school construction bonds as a way to save money financing projects in their districts. Without the interest-free bonds, Montgomery's school system faced going to the bond market to complete a new $21.5 million Bellingrath Junior High and $36.6 million for George Washington Carver High. Clay Slagle, the district's chief operations officer, said “the school system is saving $9 million by using interest-free bonds rather than interest-bearing bonds that typically take 25 years to repay.”

MARYLAND: Evergreen Elementary in St. Mary’s County was designed and built to save energy and water and to reduce the building’s impact on nearby streams and wetlands. Superintendent Michael Martirano says the $20 million school is the greenest school in the state. Evergreen school had a responsibility to limit its environmental impact, because it was built on land bordering wetlands that were home to the endangered, Eastern narrow-mouthed toads. To protect the toads, school officials have pledged to leave untouched most of the 54 acres on which the school sits, and have taken extra steps to keep polluted storm water from washing off the building and its parking lot. The school's two stories help reduce its land consumption.

St. Mary's school officials say Evergreen Elementary is in line to get a "gold" rating under the green building council's Leadership in Energy and Environmental Design, or LEED, rating system. The school’s green features include: a geothermal heating and cooling system, a small wind turbine, waterless urinals and low-flow faucets, plants and photovoltaic cells on the roof, cisterns that store rainwater for flushing toilets, and a white reflective coating on the roof to reduce its air conditioning needs in warm months. Superintendent Martirano said "This is more than just a school. It's a full immersion in the energy conservation issues [students] are going to experience as adults."

Starting this year, all new Maryland schools built with state funds must incorporate enough energy- and resource-saving features to qualify for the LEED silver rating. Montgomery County built the state's first LEED-rated public school, Great Seneca Creek Elementary, in Rockville in 2006. Since then, it has built another new elementary and rebuilt two old schools, incorporating enough energy-saving and environmental features to qualify them all for a LEED gold rating. In Harford County, school officials are seeking LEED certification for an addition and modernization of Joppatowne Elementary School; their school system's new headquarters also was constructed to LEED silver standards. In Baltimore County, Vincent Farm Elementary School has a geothermal heating and cooling system, among other energy-saving features and county officials plan to seek a LEED silver rating for the new West Towson elementary and a new arts and technology school. Green schools are starting to spread across the state.

NEW YORK: Southern Tier school districts spent the summer working on large scale, multimillion-dollar construction projects on schools built in the 1950s, 1960s and 1970s. In some districts, work will continue through the school year, keeping disruption to a minimum. School officials say the size and scope of these school construction projects is unprecedented. In Broom County alone, school construction projects total more than $300 million. According to school officials “districts need to upgrade schools to modern standards and meet new educational demands, notably in the areas of science, technology and special education.”

Major projects were approved in recent years by residents in Vestal, Binghamton, Whitney Point, Maine-Endwell and Union-Endicott. School officials readily acknowledge they couldn't get projects of this magnitude approved without the availability of state money. One source of cash is state building aid which varies from district to district, based on a state formula; it can cover 70 percent or more of costs. In addition to state building aid state legislators approved EXCEL- Expanding our Children’s Education and Learning- a one-time allocation to help school districts with local building costs. Every district in the Southern Tier got a slice from the $2.6 billion pie, with much of the money earmarked for high-needs school districts. "Districts took advantage of EXCEL aid so they could do fairly large projects with limited, or no, local tax impact," said architect, Steven M. Thesier. The projects include: upgrading heating and ventilation systems, installing new windows, building additions, renovating auditoriums, upgrading athletic facilities and heightening security measures.

MINNESOTA: Dilworth-Glyndon-Felton is about to kick off a spree of repairs and upgrades at its two schools – with some help from the federal stimulus package. The federal government will take care of the interest on a $4.5 million bond the district will sell later this year to finance the project. Local taxpayers will cover the rest. D-G-F was one of about a dozen Minnesota districts selected to tap the Qualified School Construction Bonds, a part of the 2009 American Recovery and Reinvestment Act. The bonds range from about $300,000 to more than $16 million, and most districts will be able to sell them without voter approval. Education leaders say the bonds are a great deal, letting districts get more bang for taxpayers’ buck as they tackle pressing facility needs. “We’re very conscious of how we’ll be paying for it given the economic situation,” said D-G-F Superintendent Randy Bruer. “We had to scale back and do only what’s needed.”

The state Education Department gave preference to repairs over new construction to spread out resources, said Tom Melcher, director of program finance at the department. Twenty-six districts and charter schools turned in applications totaling $253 million for the $75 million available.

MINNESOTA: Dilworth-Glyndon-Felton is about to kick off a spree of repairs and upgrades at its two schools – with some help from the federal stimulus package. The federal government will take care of the interest on a $4.5 million bond the district will sell later this year to finance the project. Local taxpayers will cover the rest. D-G-F was one of about a dozen Minnesota districts selected to tap the Qualified School Construction Bonds, a part of the 2009 American Recovery and Reinvestment Act. The bonds range from about $300,000 to more than $16 million, and most districts will be able to sell them without voter approval. Education leaders say the bonds are a great deal, letting districts get more bang for taxpayers’ buck as they tackle pressing facility needs. “We’re very conscious of how we’ll be paying for it given the economic situation,” said D-G-F Superintendent Randy Bruer. “We had to scale back and do only what’s needed.”

The state Education Department gave preference to repairs over new construction to spread out resources, said Tom Melcher, director of program finance at the department. Twenty-six districts and charter schools turned in applications totaling $253 million for the $75 million available.

GEORGIA: Carrollton City Schools is looking toward the future and seeing the need for more room at several school campuses and the school board is eyeing a new way to fund future construction projects. Carrollton City Schools Board of Education members unanimously approved a letter of intent that would allow the system to apply for qualified school construction bonds, funded by the American Recovery and Reinvestment Act, to be used for capital projects. The letter informs the Department of Education that the school system is interested in applying for a portion of the $201,062,000 allocation Georgia received in 2009 or the same allocation it will receive in 2010. The system is considering asking for $8 million, which it would use to refurbish the high school’s aging bathrooms, renovate the gymnasium and build a two-story wing onto the middle school that would add 38 classrooms to the school to accommodate projected growth.

However, this money is federal money and comes with federal requirements. One of those requirements is compliance with the Davis-Bacon Act, which among other things, places wage requirements on the project. Those requirements can push the price tag of a construction project up 10 percent to 15 percent, said Chief Financial Officer for the Carroll County Schools Greg Denney.

There are some good things about the stimulus bonds, Spofford told board of education members. “First of all, it’s interest free,” he said. “Because you can stretch out for 16 years, we can decide when we start making payments. Let’s say we ask for 10 million and we don’t want to start paying until year 11, then we’d have five years to pay off the $10 million.” In addition, while the system is paying back the loan, the money will be put in an account for them and make interest until the bonds are paid off at the end of the term, he said. The system would contract with a local authority that can issue bonds to collect the money. In Carrollton, the Payroll Authority can issue bonds and would be able to act as the partner in the funding. If the system renews the SPLOST after the current one ends, it can use SPLOST revenue to pay back the bonds, said Superintendent Tom Wilson.

NATIONAL: Agriculture Secretary Tom Vilsack announced that 22 tribal colleges in nine states have been selected to receive $4.7 million through the USDA Rural Development Tribal College Grant program. "This funding will help tribal colleges make much-needed infrastructure improvements so they can continue to provide job opportunities for local residents and spur economic development," Vilsack said.
USDA Rural Development Tribal College Grants are provided to land-grant institutions for education and outreach to provide essential services to Native American communities and to help meet residents' needs. [Includes a complete list of the selected recipients.]

FLORIDA: According to district officials, there are a variety of reasons for the Palm Beach County school district to go green: Green schools result in higher student achievement, it saves money and it is good for the environment. For me, these are all great reasons. Yet, above all, I think the district going green shows the communities in Palm Beach County that green is not a fad – it is an easy way to save money. As one of the largest school districts in the state – with 186 schools – our school district has a chance to lead the way in going green by showing other districts it can be done. The district's cost-saving, Earth-friendly initiative started with Pine Jog Elementary School being a LEED Gold Certified School, the first in the state.

The district has also been going green for several years with recycling programs in about 100 schools. These programs recycle paper, plastic and aluminum. What I like about these original recycling programs is that faculty and students started most of the recycling efforts, which often began as ways for clubs and organizations to raise funds for their school. This year, the district is taking this program a step further by passing policies that make recycling and energy conservation mandatory. The goal is to have 100 percent of schools participating by the 2010-11 school year.
Last school year, the district also began using "Green Seal" certified cleaning products which, according to Vickie Middlebrooks, public affairs specialist for the school district, "produce fewer chemical allergens and add fewer fragrances." This can mean fewer asthma attacks and allergic reactions by the students and staff. Other cost-saving measures will include the custodial staff switching to microfiber cleaning cloths and replacing liquid soap with foam soap in all restrooms. The hope is that these changes will result in about $250,000 in annual savings because less custodial supplies will be used.

As far as energy costs, last year the district spent $41 million in electricity, according to Middlebrooks, and was able to save $2 million through conserving energy. That savings was with just 100 schools and departments working on energy conservation. This year, the district hopes to save more through a Resource Conservation Specialist Team, which will look for more ways to save energy.

FLORIDA: The first certified, all-green high school in the state is Miami-Dade's Terra Environmental Research Institute in Kendall. The $35.2 million school, which took 18 months to build, is a high school magnet program for biomedical research, environmental studies and engineering and robotics, the first such program in the Miami Dade Schools.
The building -- the first LEED-certified school in Miami-Dade, which means it was built to environmental standards -- has recycling centers on every floor, plumbing fixtures that use at least 20 percent less water and floor-to-ceiling windows that reduce the need for unnatural light. Photo sensors dim lights as sunlight filters in, while motion sensors turn the lights off when the room is empty. Louvered windows, energy efficient fixtures and the sensors are expected to cut electric bills significantly. The ecological-minded mission does not stop at the facility. A specialized curriculum has been developed, incorporating the biomedical, environmental and robotics/engineering.

MINNESOTA: If you build it, they will come. That's the idea behind the new St. Michael-Albertville High School, and it goes for students and community members alike. Most new schools built these days tout community use, but this one goes the extra mile. The public can buy memberships for the school's 5,000-square-foot fitness center and the walking track above the gymnasium. A rubberized, multipurpose gym floor can handle vehicles and will be used for trade shows. A raised stage in the cafeteria/commons area can be used for public meetings and presentations. And a 1,450-seat performing arts center is one of the largest high school auditoriums in the state and certainly the surrounding rural area. "Community use has become a common characteristic of schools," said Tim Dufault, president of Cuningham Group Architecture of Minneapolis. Dufault, who also chairs the American Institute of Architects Committee on Architecture for Education, closely follows local and national school construction trends and said, "Using tax dollars to create public facilities too just makes sense."

St. Michael-Albertville is also an example of what a school can be when it's built from the ground up with technology in mind. Security cameras, sound systems, computers and projectors are fully integrated on the building's own network. If an emergency arises, first responders will have the ability to access more than 80 security cameras and can communicate with people in stairwells via voice systems.

MINNESOTA: The Minnesota Department of Education has allocated $75.85 million of no interest, or low interest, Qualified School Construction Bond (QSCB) authority available to school districts from the American Recovery and Reinvestment Act of 2009. School districts receiving allocations must issue these bonds by December 31, 2009, and use the proceeds for construction, repair or renovation of public school facilities. In addition to this amount, the federal government allocated bonding authority separately to the Minneapolis School District, and St. Paul School District in the amounts of $21.7 million and $16.1 million, respectively.

Twenty-six school districts and charter schools submitted applications totaling $253 million for the $75.85 million in bonding authority. Bonding authority is allocated on a preliminary basis to twelve school districts listed below based on criteria that includes a preference for deferred maintenance over new construction, geographic location, project readiness, and district resource levels. These districts will use proceeds of the bonds for a variety of projects including boiler replacement, roof replacement, lighting replacement, heating and ventilation, and classroom upgrades. In order to ensure the entire 2009 allocation is utilized, each district selected to receive bonding authority has been placed in a pool of districts eligible for a 2009 QSCB allocation and will document to the department that all requirements are met, prior to final allocation.
It is expected that Minnesota will receive a similar amount of bonding authority for allocation in 2010 for QSCB. Districts with qualifying projects that applied in 2009, but did not receive bonding authority, will receive priority for 2010.

NATIONAL: Ample daylight, natural ventilation, and a connection to the landscape are among the features found in educational facilities recognized this month by the American Institute of Architects. On August 12, the AIA’s Committee on Architecture for Education (CAE) announced the 13 winners of this year’s CAE Educational Facility Design Awards. Beyond honoring architects for exemplary work, the program aims to identify trends in educational design and disseminate knowledge about best practices in the educational sector. Awards were given in three categories: Excellence, Merit, and Citation. [Winners are listed, with jury comments.]

TEXAS: Welcome to the modern American high school, Texas style. Prosper High School is a $113.5 million, 590,000-square-foot behemoth, complete with a medical tech lab, a restaurant-worthy kitchen, a greenhouse, a broadcast studio and, of course, an indoor football practice facility. All this in a still-sleepy town of just 7,000 people. The school opened last week at half its capacity, but district officials say it will soon fill up as families push north from crowded suburbs like Frisco and McKinney.
So like some of the area's new schools, it's a symbol of growth's march, but also a community's search for identity and even Texas pride. "This is more than bricks and mortar," said Drew Watkins, Prosper ISD's superintendent. "This is a community facility. This is what the community wanted. And when they say best, they mean best, not just pretty good."

This school doesn't have a gym. It has three. One is an arena. The auditorium seats nearly 1,000 people and will be the town's only theater. Every classroom has four computers and an interactive white board that teachers use to project and manipulate images from their computers. Flat-screen televisions flash announcements throughout the day. And while some districts create separate centers for career-focused programs, Prosper has fit them all in one building. And it has added a garage for auto mechanics in its wing dedicated to career and technical education. The building already adorned with "State Champions," thanks to the football team, houses the indoor multipurpose field and a weight room that rivals private gyms. The lecture hall and airy hallways give the school a collegiate feel, which Watkins said is intentional.

North Texas has built a slew of new high schools in recent years, though few match Prosper's scope. Northwest ISD just opened a 504,000-square-foot high school in Trophy Club that cost $96 million. McKinney Boyd High School finished the final phase of its 530,680-square-foot building last year. It cost $80 million, not including technology and furniture. Sunnyvale High School opened this year at $26 million for 110,000 square feet, making it even more expensive than Prosper based on cost per square foot. Taxpayers have agreed to pay those bills with little fuss, especially in Prosper's case. The district passed a $710 million school construction bond package two years ago by an 80 percent majority.
Americans have long considered schools a community focus, said Gene Preuss, an assistant professor of history at the University of Houston-Downtown. He pointed out that Texas stayed rural after World War II, "so the school remained a community center longer in Texans' collective memory." The state's education funding speaks to that mentality. Local taxes pay for 44 percent of school finances nationally, but they pay for more than half of school funds in Texas. This also means wealthier areas can afford better schools, Preuss said. So it's not surprising to see North Texas finance bigger and better schools, he said. "School districts in areas that are experiencing greater growth can more easily afford to build facilities with bigger footprints because the land is cheaper and there is more available in developing areas," he said.

MARYLAND: After a $28 million, two-year renovation, Paul Laurence Dunbar High School reopened its doors and its seniors said they barely recognized the school they had moved out of after their freshman year. The school seems much larger and brighter with wide hallways, larger windows and a state-of-the-art science laboratory. "It looks like a mini-version of a college," said India Young, who plans to go to college and become a nurse. "I think it is pretty." The school now has facilities that will be better suited to teaching students aimed at going into the health professions, the focus of the high school that lies in the shadow of the Johns Hopkins medical complex in East Baltimore.

A long list of politicians and education officials spoke at the opening-day ceremonies and ribbon-cutting on Monday morning, including Gov. Martin O'Malley, Baltimore Mayor Sheila Dixon, city schools CEO Andres Alonso, the American Federation of Teachers President Randi Weingarten and Neil E. Duke, chairman of the school board.
Dunbar had a long history in the city as one of its premier high schools until its standards began to slip about a decade ago. In more recent times, the school has been turned around under new school leadership and a focus on the health professions. It has recently been ranked as a top school by various news magazines and its students now have a high pass rate on the High School Assessments.

Weingarten said the new building will allow students to do even better with an improved teaching and learning environment. Too often, students are given negative messages by attending classes in run-down buildings. But, she said, "this newly renovated school ... has said loudly and clearly, education is important." Dixon said that the school was one of only a few high schools in the city that African-Americans were allowed to attend during segregation and that it produced an amazing number of talented students who went on to become leaders in the community. She told students they should remember those who came before them at the school as they walk through its halls.
But alumni who walked through the building in small, student-led tours said they could not even envision where they were in the building. The building, which was constructed about 40 years ago, was essentially gutted during the renovation. The only remaining pieces of the old school are the gym and swimming pool, now under renovation.

NEW JERSEY: New faces and spaces, plus program boosts made possible by federal stimulus funding, are among the things South Jersey students can look forward to when the school year begins this week and next. Around the region, districts have moved ahead with projects and initiatives already in the works. But among districts eligible for stimulus money, there are fresh undertakings - including special-education programs, enhanced tutoring, better student tracking, and lots of classroom technology.

NEW JERSEY: New faces and spaces, plus program boosts made possible by federal stimulus funding, are among the things South Jersey students can look forward to when the school year begins this week and next. Around the region, districts have moved ahead with projects and initiatives already in the works. But among districts eligible for stimulus money, there are fresh undertakings - including special-education programs, enhanced tutoring, better student tracking, and lots of classroom technology.

DISTRICT OF COLUMBIA: The verdict is still out on whether the District's ongoing education reforms will lift student learning. There is little doubt, though, about the success of Mayor Adrian M. Fenty's efforts to fix and modernize school facilities. This was reinforced by last week's flawless opening of schools, the third since Mr. Fenty took control of the system.
All schools were ready and up to code when classes started Monday. In addition, a number of gleaming new facilities -- H.D. Cooke Elementary School in Ward 1, School Without Walls in Ward 2 and Savoy Elementary School in Ward 8, to name a few -- opened to rave reviews across the city. It's a significant achievement considering that it was not that long ago that many students were habitually shut out of the first day of classes because schools weren't ready. Even worse was the general disrepair of buildings; deferred maintenance gave rise to broken windows, non-functioning bathrooms, inoperable water fountains and busted heating systems.

So daunting were the problems that the mayor and the D.C. Council knew they had to establish a separate office. It is to the credit of Mr. Fenty that he tapped the able Allen Y. Lew to head up the new Office Of Public Education Facilities Modernization. Mr. Lew, who had successfully managed construction of the city's convention center and baseball stadium, made a priority of eliminating the backlog of more than 30,000 work orders. He was able to jumpstart long-stalled projects such as the Wilson Aquatic Center, while also completing more than 30 fields and playgrounds. And he has brought long-needed credibility to school maintenance, with the result that more architects and contractors are bidding on the work.

Of course, this has all come at an extraordinary price, an estimated $1 billion over two years. Critics are right to wonder if, in the understandable rush to make fixes, money was spent as effectively as possible. With city resources now tightening, it will be important to carefully map expenditures and to ensure there will be no return to the days of deferring maintenance in a shortsighted bid to save money. But anyone who doubts the importance of this work need only visit the transformed Sousa Middle School in Ward 7. Students there posted dramatic gains in test scores, and, while they acknowledge a new principal and better instruction helped, they also say that their new building made a difference: Now, they like going to school.

CONNECTICUT: It’s not easy being green, but now it’s the law. The countdown has begun for the end to harsh chemical cleaners used in public schools across the state. By July 1, 2011, all public school districts are required to have a green cleaning program in place, thanks to a bill Gov. M. Jodi Rell signed into law earlier this summer. Though “going green” seems to be an increasingly popular interest, the new law doesn’t only benefit Mother Nature, but teachers, custodians and students as well, educators say.This law “will help ensure a healthy environment for everyone who walks through the doors of public schools in Connecticut,” Rell said at the bill-signing ceremony.

Joan Simpson, an epidemiologist with the state Department of Public Health, said exposure to chemicals found in many cleaning products such as bleach and ammonia can cause a variety of shortand long-term health issues, depending on the length and type of exposure. While public schools are now being required to make the switch, use of green cleaners in all state buildings has been the law since 2007. In 2003, legislation was passed requiring public schools to adopt an indoor air quality program. Although this legislation focused on improving indoor air, it did not require schools to stop using toxic chemical cleaners.

Under the new law, school districts must use green products that are nationally certified by a third party like Green Seal or EcoLogo and approved by the state Department of Administrative Services.

/Martin Mador, legislative and political chairman of the Connecticut Sierra Club, said third-party certification is key to identifying genuinely green products. Nowadays, Mador said there is a lot of “greenwashing” of cleaning products — that is, products falsely claiming to be green or natural. “With third-party certified products,” he said, “you know you’re getting products that are healthy for kids and staff.” In order to be third-party certified green, Simpson said products go through a rigorous process that includes testing the product’s effectiveness and verifying product claims, among other things.

WEST VIRGINIA: Putnam County residents approved the county's largest-ever school bond and its first in 33 years. County residents turned out in force to approve the $57 million school-bond plan, with 32 precincts voting yes and 16 against it. "It's taken a lot of years, and a lot of work just getting to this point," said Deborah Phillips, a member of the board of education. "This is just a very positive feeling." With all 48 precincts counted, 5,141 voted for the bond and 4,029 against it.

This is the fourth proposed school bond to come before Putnam voters since 1976, the last time a bond was approved. Voters rejected proposed bonds for school improvements in 1993, 2001 and 2002. Phillips said the board hopes to start renovation projects and construction on new facilities within the next nine months. "Tomorrow wouldn't be soon enough," she said. The bond will pay for construction of three new schools - Poca Middle School, Confidence Elementary School and Buffalo High School. It will also pay to completely renovate Poca Elementary School and build three auxiliary gyms and a new gym for Winfield Elementary School. The state School Building Authority has also said with the passage of the bond, the authority will provide $21.7 million for a new Winfield Middle School.

CALIFORNIA: State Superintendent of Public Instruction Jack O'Connell announced 43 school districts have been selected via lottery as recipients of $700 million in Qualified School Construction Bond (QSCB) tax credits. A lottery selection process was necessary because the number of applications exceeded the allocation available. The list of recipients is attached.
"This tax credit program will jump start new school construction and modernization projects throughout the state that, in turn, will stimulate the economy and create jobs," said O'Connell. "The Qualified School Construction Bond program will not infuse communities with new money but will help school districts use their local bond dollars more efficiently. Finding new ways to save money is especially welcome by school districts in these tight budgetary times. I deeply appreciate President Barack Obama and U.S. Education Secretary Arne Duncan for providing California this economic stimulus program to help us rebuild our state's school buildings."

The new QSCB tax credit program is part of the American Recovery and Reinvestment Act (ARRA) that was signed into law by the President in February 2009. ARRA allows tax credits on $22 billion nationwide to QSCB for this year and next. California's share is an estimated $2.7 billion over the same two-year period. Of this sum, $582 million already has been directly allocated to the state's 11 largest school districts; $700 million was available through today's lottery to qualifying school districts; and $73 million is available to allocate this year to qualifying charter schools. The remaining estimated $1.3 billion will be allocated in 2010. The California Department of Education awarded the $700 million in tax credit bond authorizations to 43 qualifying school districts and county offices of education during a drawing that was held this morning at department headquarters in Sacramento. More than 230 applications were received totaling more than $3.7 billion in requests. The lottery was held to determine the recipients of the tax credit authorization. School districts will then take this authorization and issue locally authorized bonds.

QSCB provides federal income tax credits in lieu of interest to lenders who purchase bonds from eligible school districts. The United States Treasury Department established state allocation limits and set a tax credit rate for QSCB that, on average, equals the amount of interest schools would ordinarily pay on debt. With the federal government covering most or all of the interest on the bonds, school districts will receive a substantial benefit because interest payments typically equal about 50 percent of the economic cost of a bond. The bond proceeds may be used for new construction and/or renovation and repair of school facilities, the purchase of land on which the public school facility will be built, and the purchase of equipment related to the project constructed or rehabilitated with proceeds of the issuance.

NATIONAL: As part of the American Recovery and Reinvestment Act, tribes are beginning to see money going toward education. Funds have trickled down to select schools and educational programs, but the exact dollar amounts are pending for many. Dante Desiderio, an economic development policy specialist for the National Congress of American Indians, said tribal colleges fared poorly in the distribution of stimulus dollars. The Southwestern Indian Polytechnic Institute in Albuquerque, N.M. may be one of the lucky few to snag some stimulus dollars. Reports state the college will receive $1.8 million for school projects, which includes re-roofing a building to prepare it for solar panels and the replacement of hot water lines. Desiderio said the NCAI is conducting a long-term study on how Recovery Act funds are being distributed throughout Indian country.

Meanwhile, the Interior Department has proposed an estimated $135 million for the BIE to carry out construction projects at five reservation-based schools. Three of the schools within the Navajo Nation are slated to receive funding. The Rough Rock Community School in Chinle, Ariz. will receive funds to build a new K-12 school and a residential dorm to house 266 students. The Kaibeto Boarding School in Kaibeto, Ariz. will construct a new K-12 school and residential dorm to house 45 students. Funds earmarked for Pueblo Pintado Community School in Cuba, N.M., will go toward building a residential dorm for 95 students. In the Great Plains, the Ojibwa Indian School in Belcourt, N.D. will use stimulus funds to construct a bus garage, and the Crow Creek Tribal School in Stephan, S.D. is slated to build a new K-12 school, and residential dorm that will house up to 160 students. Funds for all five schools include supporting infrastructure, housing and demolition. No dates have been set for the groundbreakings. The Flandreau Indian School in eastern South Dakota has received $23 million from the state’s Recovery Act dollars. The funds will be used to update and repair aging buildings, including dorms, and to upgrade heating and cooling systems.

Other qualifying BIE schools could see a piece of the $400 million in school construction tax bonds for calendar year 2009-10. “We are still trying to figure out how the construction tax credits are going to work,” Desiderio said. “It could help tribal colleges, but I think it’s going toward BIE (K-12) schools.”

WASHINGTON: Workers are putting the finishing touches on the Bellevue district's newest rebuilt elementary school, Eastgate Elementary. Gone is the old, one-story, 40,000-square-foot school. The new building has an extra 24,000 square feet of space, including 24 classrooms (four more than the old school), special security features, and rooms that let in lots of natural light through big windows. It's also the first Bellevue school to use a geothermal heating system to warm and cool the building, a system that should save about 40 percent on heating bills, said Jack McLeod, the director of facilities and information technology for the district.

From the exterior, Eastgate has a bit of a corporate feel, with a plain facade of beige tiles accented with blue. Inside, the school has that new-carpet smell. Its spaces seem airy and bright. The new classrooms are about a thousand square feet in size, larger than the old rooms, which were about 850 square feet. And kindergarten classes are 1,150 square feet, McLeod said.
An all-electronic door locking system means the district can control entry through one main entrance during school hours; all the other doors automatically lock after school begins. Electronic pass keys allow the district to monitor staffers coming in and out of the building after hours and on weekends. The tile mural from the 1950s has been moved, cleaned and re-grouted -- it occupies a wall outside the gym.

And then there's that geothermal system. Deep underneath the sand-covered playfield behind the school, there are 90 wells, each 300 feet deep and linked to one another by pipes. Water is pumped through the pipes, and because the soil a few feet below the ground stays at a constant temperature of 54 to 56 degrees -- regardless of the season -- the system can cool or warm the school very efficiently, McLeod said. The old-school boiler room is gone; the new room is a system of big, clean pipes and heat pumps.
Eastgate was rebuilt at a cost of $24 million, including $19.4 million in construction costs. It's part of a $324 million bond issue approved by the voters in February 2002.

ARKANSAS: Greenwood School Board approved seeking $20 million in interest-free or low-interest construction bonds through the American Reinvestment and Recovery Act, the federal stimulus program. Because student enrollment continues to grow, district administrators continue to seek a way to build a new elementary school, Assistant Superintendent John Ciesla said. Last fall, the district asked voters for a 5-mill property tax increase to fund construction and renovation projects, including a new elementary school, to cope with the district’s population growth. The district had seen its student census increase by 366 students over the previous five years. Had the voters approved it, the district’s millage would have increased from 38.7 mills to 43.7 mills.

Ciesla said Greenwood has a partnership funding application in with the state for the desired elementary school and has been approved, but not funded for $2.2 million. The state might or might not appropriate more partnership funds, he said. “It looks like (the ARRA) funding is limited, so we threw our name in the hat,” Ciesla said. He said he thinks the funding decision will be made quickly.
According to the Internal Revenue Service, the ARRA’s qualified school construction bond program provides tax credits in lieu of interest to lenders who issue the bonds to eligible school districts. The bond proceeds can finance new construction, rehabilitation or repair of existing public school facilities, or acquiring land.

PENNSYLVANIA: Governor Edward G. Rendell announced Pennsylvania is investing more than $5.3 million in 12 innovative clean energy projects, which will generate energy, save money, create jobs and improve the environment. These innovative projects under the commonwealth’s Energy Harvest Program are funded through the American Recovery and Reinvestment Act.

Includes list, by county, of 12 Energy Harvest grants, including $500,000 for the installation of a geothermal exchange system at a senior high school; $500,000 for the purchase of a 131 kw solar array on a middle school; and $500,000 to install a biomass-fired, district hot water heating system.

MICHIGAN: The Detroit Public Schools plans build at least eight new schools and significantly renovate as many as 10 other schools using proceeds from a planned $500.5 million capital bond issuance. Emergency Financial Manager Robert Bobb unveiled the details of the DPS’ capital improvement plan Tuesday afternoon, saying the bond issuance will be presented to Detroit voters on the Nov. 3 ballot after receiving election commission approval. New school construction costs will account for about $315 million of the bond proceeds, with $165 million paying for renovations to existing schools and $20 million for demolition and decommissioning of obsolete schools as well as security improvements throughout the district, Bobb said.

The bonds are part of the American Recovery and Reinvestment Act, commonly referred to as the stimulus bill. The DPS was allocated $246.5 million in Qualified School Construction Bonds for 2009 and 2010, which will be interest-free. The remaining $254 million of the bonds are available under the Build America Bonds portion of the stimulus package. If approved by voters in November, the bonds will be issued in January and the all the proceeds must be spent on the improvement projects within 36 months.

The improvement projects are expected to create 3,725 direct jobs, Bobb said, using formulas used by the State of Michigan. By demolishing, closing and rebuilding the schools, the DPS will cut about 1 million-square-feet out of its current capacity and have 19 fewer schools in the district. It will also cut annual maintenance costs by $12 million.

OHIO: When students arrive for the first day of school today at the renovated South High School, their reaction might be surprise, especially if they were familiar with the old building -- hot, poorly lighted and crumbling. South is one of four historic schools the district is reopening after renovations. A fifth school is all new, signaling an end to the massive rebuilding project that voters funded in 2002 with a property-tax increase.

In some ways, the four historic school buildings are nicer than new buildings. They have restored hardwood floors, wood baseboards and chalkboard frames as well as antique built-in cabinetry in many classrooms.
"We can't afford to put this type of material in a new school," said Carole Olshavsky, the district's senior executive in charge of facilities. "I don't think anybody could."
South, which opened in 1900, now has central air conditioning, a 60-camera security system, a fire-sprinkler system, two new gymnasiums and a cafeteria, five new tennis courts, a new football field and running track, new lockers and a refurbished auditorium with balcony seating. South Principal Johnetta Wiley is hoping the $32.1 million renovation can help reverse the school's falling enrollment, which has dropped to about 600 -- about 60 percent of the capacity of the auditorium. Other refurbished buildings opening are Burroughs ($11.9 million) and Southwood ($10 million) elementary schools and the new Indianola K-8 school at the former Crestview Middle School on Weber Road ($15.3 million). The new building is a combined A.G. Bell/Huy Elementary ($14.6 million)

Seven years ago, it was no sure thing that residents in the Columbus City Schools district would vote to increase their property taxes so the district could raise $392 million to build or renovate 38 schools. School-board members were opposed; the business community was leery; and the economy was in a slump from the bursting of the dot-com bubble. But in November 2002, 54 percent of voters said yes, bringing in $129 million in state grants and creating one of the largest construction projects in central Ohio in recent memory. The state later increased the match to about $149 million, Olshavsky said. The district built three fewer schools than originally planned, to compensate for rising construction costs. About $16 million from the first phase will be rolled into the next segment -- a $169 million project that voters approved this past November.

OHIO: When students arrive for the first day of school today at the renovated South High School, their reaction might be surprise, especially if they were familiar with the old building -- hot, poorly lighted and crumbling. South is one of four historic schools the district is reopening after renovations. A fifth school is all new, signaling an end to the massive rebuilding project that voters funded in 2002 with a property-tax increase.

In some ways, the four historic school buildings are nicer than new buildings. They have restored hardwood floors, wood baseboards and chalkboard frames as well as antique built-in cabinetry in many classrooms.
"We can't afford to put this type of material in a new school," said Carole Olshavsky, the district's senior executive in charge of facilities. "I don't think anybody could."
South, which opened in 1900, now has central air conditioning, a 60-camera security system, a fire-sprinkler system, two new gymnasiums and a cafeteria, five new tennis courts, a new football field and running track, new lockers and a refurbished auditorium with balcony seating. South Principal Johnetta Wiley is hoping the $32.1 million renovation can help reverse the school's falling enrollment, which has dropped to about 600 -- about 60 percent of the capacity of the auditorium. Other refurbished buildings opening are Burroughs ($11.9 million) and Southwood ($10 million) elementary schools and the new Indianola K-8 school at the former Crestview Middle School on Weber Road ($15.3 million). The new building is a combined A.G. Bell/Huy Elementary ($14.6 million)

Seven years ago, it was no sure thing that residents in the Columbus City Schools district would vote to increase their property taxes so the district could raise $392 million to build or renovate 38 schools. School-board members were opposed; the business community was leery; and the economy was in a slump from the bursting of the dot-com bubble. But in November 2002, 54 percent of voters said yes, bringing in $129 million in state grants and creating one of the largest construction projects in central Ohio in recent memory. The state later increased the match to about $149 million, Olshavsky said. The district built three fewer schools than originally planned, to compensate for rising construction costs. About $16 million from the first phase will be rolled into the next segment -- a $169 million project that voters approved this past November.

FLORIDA: Broward School Board members managed to scrounge some cash to salvage a couple of axed projects as they passed a pared-down plan for construction, maintenance and technology over the next five years. The nearly $1.3 billion budget -- less than half the size of the previous year's plan -- includes no additional money for new schools or major projects. The majority of the money is targeted at paying down debt, upgrading buildings for safety or health or fixing up old schools. Removed from last year's nearly $3 billion plan: 33 replacement projects, nine new schools, 31 classroom additions, 21 major remodeling projects and hundreds of improvement projects. Those cuts to the construction budget -- and a ruling from the state that the district has too many empty seats to justify building more -- eliminated dozens of classroom additions and several new schools that would have relieved crowding in western Broward schools. Without those projects, Broward could have to change school attendance boundaries for three middle schools and three high schools in Weston, Pembroke Pines and Miramar -- forcing hundreds of students to switch schools beginning in the 2011-12 school year.

DISTRICT OF COLUMBIA: The spotty air conditioning sometimes drove spring and summer temperatures to 100 degrees in Ferebee-Hope Elementary School's gym. There was no audible fire alarm system. Kids played on expanses of dingy, moldy brown carpet. The 1970s-vintage "open classroom" design, which eliminated walls to foster closer collaboration among teachers, created only chaos. The school, in Ward 8's Woodland Terrace neighborhood, was, D.C. Schools Chancellor Michelle A. Rhee said, "probably the darkest and most depressing school we had." But Monday was a new day for the school that Principal Sharron Stroman calls "the Hope." A crash $5.2 million renovation this summer, part of a $1 billion overhaul of the District's 125 schools, created 29 bright, cheerful classrooms with touch-screen "smart boards." The carpet is out; brand-new heating, cooling and fire suppression systems are in. "We are going to do right by the children of the south side," exulted Stroman, dressed in the school's burgundy and khaki colors.

For thousands of District students, Monday was not only the first day of classes but also the first in newly renovated buildings. The work includes more than $100 million worth of improvements to School Without Walls Senior High School; Deal Middle School; Wheatley Education Campus; and H.D. Cooke and Savoy elementary schools. The refurbished D.C. schools represent the next step in the Fenty administration's ambitious overhaul of a system notorious for its decrepit, aging buildings. Last summer's objectives included basic fixes to 75 schools, including repairing boilers and replacing windows. This year, officials are moving their focus to re-creating schools that combine energy-conserving features and natural light with restoration of original wood floors and masonry.

During the next two years, major work is expected to transform Eastern, Anacostia and Woodrow Wilson high schools. After several delays, a new H.D. Woodson Senior High School is expected to receive students in 2011. "I really believe we've turned the corner," school construction czar Allen Y. Lew said.

TENNESSEE: Now that Rogersville has given its approval for Hawkins County’s $19 million “Build America Bonds” issuance to close out the county school building projects, the city school system will be looking for ways to spend its $1.4 million share. Although the Build America Bonds (BABs), are expected to save Hawkins County $3 million over the 30-year life of the bonds, there are stipulations placed on city shares. One stipulation is that the money can only be spent on future capital outlay projects. Some city leaders expressed concern that Rogersville City School could come up with enough projects to spend the money. Most BMA members said they’d rather use the money to retire debt from the 2000 school addition/renovation project. But Director of Schools Sherry Terry said last week there won’t be a problem coming up with ways of spending the money. Earlier this month she presented the BMA with a two-page list of projects with an estimated cost of $1.6 million.

One item on the priority list was retrofitting light fixtures in the school with energy saving ballasts and bulbs. Terry said the school had an energy audit which indicated that project would pay for itself in five to six years. Another priority would be “swapping out” heating and cooling units in three wings of the building. Another project which the Board of Mayor and Aldermen may choose to select as a priority is the renovation of the smaller gymnasium locker rooms. Those locker rooms are used by students, as well as the city parks and recreation basketball leagues. Terry said the locker rooms need some roofing and an overall refurbishment. Some other priorities Terry may suggest to her school board are installation of handrails to provide additional safety measures to people as they navigate auditorium and lobby stairways.

MARYLAND: Students at a Baltimore County high school this fall will explore the area surrounding Mount St. Helens in a vehicle that can morph from an aircraft to a car to a boat to learn about how the environment has changed since the volcano’s 1980 eruption. But they’ll do it all without ever leaving their Chesapeake High School classroom--they will be using a three-dimensional Virtual Learning Environment developed by the Johns Hopkins University Applied Physics Laboratory (APL) with the university’s Center for Technology Education.
A coalition that also included Lockheed Martin, Northrop Grumman, and the University of Baltimore is deploying the environment, which was modeled after a state-of-the-art, 3-D visualization facility at APL that was used for projects by the Department of Defense and NASA. The Virtual Learning Environment is the first of its kind in the nation, said Baltimore County Superintendent Joe Hairston.

David Peloff, program director of emerging technologies at Johns Hopkins’ Center for Technology in Education, said the Virtual Learning Environment grew out of a recently completed federal grant that allowed researchers to look at the ways gaming and simulation technology could be used to help children learn.

The Virtual Learning Environment includes 10 high-definition, 72-inch TV monitors, arranged in two five-screen semicircles that allow students to interact with what they see on screen using a custom-designed digital switch and touch-panel controller. In an adjoining lab, 30 workstations, each outfitted with three interconnected monitors, will display the same environments, allowing lessons to be translated and understood on a team or a student basis.

WEST VIRGINIA: A task force assembled by Governor Manchin to address school safety is nearing completion of a comprehensive study of the safety and security of West Virginia’s schools. State Homeland Security Director Jimmy Gianato is tasked with heading up the massive undertaking. He says first and foremost, the public needs to realize that schools in West Virginia are already secure. "Most counties already have plans,” said Gianato. "I don't want to mislead anybody to think there aren't plans out there." The task force is working to build upon existing security measures and to create a system that is standardized statewide. "In the event of a major event, everybody is using the same codes, the same radio terminology, those type things,” said Gianato.

The results of their nearly year long work is a template that is nearly complete. The template, once finalized, would serve as a blueprint for all 55-county school systems to use as the pattern for customizing school security. Gianato says the biggest obstacle they've been trying to overcome is writing a template that fits every situation. "Obviously every building is unique,” said Gianato. "So that becomes a challenge in itself to develop a standardized one-size fits all approach. But we've covered the basics of everything you need to have." The plans are also crafted to work not only in the worst-case scenarios like Columbine or 9/11 style terrorism. They also encompass security procedures for dealing with floods or other natural disasters.

Gianato's task force will work with the Regional Education Service Agencies to help deliver training, assessment, and consulting experts to county boards of education if they wish to adopt the templates for their own system. "For the last several years, the Governor has put forward quite a bit of money into the security of school buildings,” said Gianato. "This plan builds upon what is already being done in the counties."

WISCONSIN: The Wisconsin Rapids School District invested $50,000 -- $25,000 from matching federal grant money -- in a new security system at Lincoln High School about four years ago. The system consists of about 50 video cameras monitoring school hallways and areas outside the building, including parking lots. When officials decided on camera placement, high traffic areas, spots where past student issues or altercations have occurred, the cafeteria and parking lots were of key interest, said Tom Helgestad, safety director for the School District. School officials use a computer program to save recorded footage onto a district server, High School Principal Ryan Christianson said. The system is used to look at potential vandalism, car crashes in the parking lot or student fights in the hallway, Christianson said, but there isn't anyone viewing camera feeds during the day. "It won't necessarily prevent, but it's a tool to help manage the facility," Helgestad said.

Students are aware of the camera system in the building, Christianson said, which helps provide the largest deterrent of all. Six administrators have access to view camera footage, which is recording around the clock, increasing the importance that people provide a time frame of when incidents or suspected crimes occurred, Christianson said. Helgestad would like to further enhance school safety by ultimately converting building access to a card system, but there are too many fund limitations at this point. "It would probably be over $200,000 districtwide, but when your buildings are worth over $100 million ... it sounds like a tremendous amount of money, but at what price of safety?" Helgestad said.

TENNESSEE: Jackson-Madison County Schools Director of Operations Buddy White hand-delivered an application to use federal stimulus money for energy upgrades to the state comptroller's office in Nashville by Friday's deadline. The system is applying for zero percent interest on a state loan to make the system's buildings more energy efficient. The school system will find out Sept. 10 if the application has been approved. "If we're not awarded the interest rate, then we'd seek out other means to financing the projects," White said.

White said the zero percent financing is available through the state comptroller's office and federal American Recovery and Reinvestment Act, or stimulus funds. The loan targets school renovations, repairs and construction projects. "There is a $20 million cap on the funding, which put a halt on trying to use the funding for building a high school," White said. Earlier this year, the school board hoped it could use federal stimulus dollars to build a new Jackson Central-Merry High School campus.

Twenty-nine of the system's buildings would be impacted by the proposal including the central office, transportation center and 27 school buildings. Some of the upgrades will be improved lighting and water measures, heating and air-conditioning systems, occupancy-based heating and air controls and vending machine controls, according to the system's check list. The upgrades will save the schools money, according to Superintendent Nancy Zambito. Members of the Madison County Commission will have to vote to approve the financing. The school board voted Aug. 13 to approve the application process.

OHIO: Schools are about to begin popping up all over the state. The newest use for stimulus money: loan it to school districts --interest free -- to build new schools. U.S. Treasury Secretary Tim Geithner came to Berea to talk about the program with Governor Ted Strickland.
"In Berea, where the newest school is 46-years-old, these bonds are helping to finance the construction of a state-of-the-art elementary school that will be equipped with the tools teachers need to teach," Geithner said. In total, 66 districts in Ohio will be splitting $260 million in interest free loans

OHIO: As part of the Obama Administration's efforts to highlight the local impact of economic stimulus programs, Treasury Secretary Tim Geithner and Ohio Governor Ted Strickland visited the construction site for a future school building funded through Qualified School Construction Bonds. Created by the American Recovery and Reinvestment Act (Recovery Act), these school bonds help state and local governments obtain the financing for much needed public school improvements and construction. To date, Ohio has designated $224 million in school construction bonds for use in more than 60 school districts throughout the state - creating an estimated 2,400 jobs, according to the Ohio School Facilities Commission.
"The Recovery Act's bond programs are an innovative way of giving communities direct access to the funding needed to increase development and stimulate the local economy," said Secretary Geithner. "Because of the Recovery Act's bonds program, state and local governments are able to obtain the funds needed to create jobs and revitalize our communities."

The Recovery Act included $22 billion for Qualified School Construction Bonds nationwide. Investors who buy these bonds receive federal income tax credits in lieu of interest, allowing state and local governments to obtain financing without incurring interest expense. States may directly issue the bonds on behalf of eligible schools or provide school districts with the authority to issue the bonds within the state.
Said Governor Strickland: "The impact of President Obama's Recovery Act is clear - because of just one of the Recovery Act's innovative bond programs, we are creating jobs and building the schools of the future today. Ohio is a clear example of how successful Recovery Act bonds can be in helping states pursue much-needed development infrastructure projects during these challenging times."

Geithner and Strickland visited the site of Fairwood Elementary School, an old school building in Berea, Ohio that is being torn down to make room for construction of a new building. Because of the Recovery Act, the Berea City School District will be able to consolidate four old schools into one new building, without raising local taxes and with an anticipated savings to the district of $500,000 per year.
"Because of the Recovery Act Bond Programs, children in our school district will have access to modern, efficient, earth friendly 21st century learning environments, and we will be able to make this available to students across the district thanks to the savings that we will realize from this program. All of this is able to be done without an increase in taxes for our homeowners," said Berea City Schools Superintendant Derran Wimer.

OHIO: U.S. Treasury Secretary Tim Geithner said in Berea, Ohio that while the journey to economic recovery is slow, the country is headed in the right direction. Geithner made the comments at a news conference touting a government program that allows school districts to issue bonds for new construction. The backdrop was the Fairwood Elementary School construction site, one of the sites to benefit from the bonds, which were part of the federal stimulus package. The program will save the school district tens of thousands of dollars in its plan to consolidate four elementary schools into one building.

OHIO: U.S. Treasury Secretary Tim Geithner said in Berea, Ohio that while the journey to economic recovery is slow, the country is headed in the right direction. Geithner made the comments at a news conference touting a government program that allows school districts to issue bonds for new construction. The backdrop was the Fairwood Elementary School construction site, one of the sites to benefit from the bonds, which were part of the federal stimulus package. The program will save the school district tens of thousands of dollars in its plan to consolidate four elementary schools into one building.

NATIONAL: Several states in the Southeast are laying the groundwork to use pooled financing to sell their allocations of Qualified School Construction Bonds authorized by the American Recovery and Reinvestment Act of 2009. Though the ARRA provided for direct allocations to the top 100 school districts in the country, it also provided larger allocations to each state. And each state is determining how its volume cap will be doled out.

Virginia, Tennessee, and Alabama hope to achieve economies of scale by using state agencies to sell their allocated QSBC volume caps and help local school districts reach the bond market less expensively through pooled programs, officials said.

MONTANA: Area schools are expecting to see lower utility bills after installing building upgrades funded by energy-efficiency grants. Helena, East Helena, Townsend and Montana City were among school districts around the state to receive the grants through the Quick Start Program. The program was approved by the Legislature as part of the Montana Reinvestment Act, which implements federal economic-stimulus money. The grants, administered through the Montana Department of Commerce, were designed to help schools conduct energy audits and fund long-term energy-efficiency projects. More than $4.8 million was awarded to school districts in the state - $1.4 million for energy audits and the rest for projects ranging from lighting and upgrades to boilers, heating and ventilation systems. "This frees up money from our $50 million budget to use to benefit children," said Helena Superintendent Bruce Messinger. Helena received $547,530; East Helena, $71,501; Townsend, $438,993; and Montana City, $24,222.

An assessment of possible lighting and electrical energy conservation was completed in Helena in March by the National Center for Appropriate Technology. NorthWestern Energy paid for the assessment. It identified a potential energy savings of more than $180,000 annually by replacing lights in existing fixtures, replacing inefficient lighting with new fixtures and installing occupancy sensors throughout the district. John Carter, director of support services in Helena, estimates the project cost the Helena district $857,000. NorthWestern Energy provided $193,860 in reimbursements through its E+ Commercial Lighting Rebate Program. The district is using building-reserve funds to pay for the balance of the project of $115,470. Carter said he expects a payback on that investment in the next seven to 10 months.

The upgrades and retrofits are no small job. Helena schools are in the process of replacing more than 40,000 fluorescent lamps and installing 500 new ballasts - part of the circuitry that controls the charge when lights are turned on - 1,400 occupancy sensors, and 600 new light fixtures. Carter said the current 32-watt bulbs are being switched to 25-watt bulbs. "That eight-watt change is real money," he said. The Helena project will be completed in the next few weeks.

East Helena used its grant similarly, with one exception. About $25,000 of the grant was spent on an energy analysis for the district's heating system, and Superintendent Ron Whitmoyer said Wednesday morning its results are still pending. Work the East Helena District has completed includes installing light motion sensors at Eastgate and East Valley Middle School in all 89 classrooms, as well as the offices, cafeterias and libraries. Also, the metal halide gym lights in the two Eastgate gymnasiums, as well as the ones at East Valley Middle School and Eastgate, have been replaced. Schools in East Helena now have motion sensors in 17 hallways throughout all three schools. Also 25-watt bulbs are being installed in all 154 classrooms and offices. East Helena also will use $27,361 from NorthWestern Energy's rebates program to help fund the project. Whitmoyer said he expects to see about a $20,000 annual savings from the changes. "We would have done little bits at a time because we couldn't afford to do it all at once, so it would have been years until we could have got everything changed out without this money," Whitmoyer said.

Brian Patrick, superintendent of Townsend Schools, has been a leader in the green schools movement for many years. He said an integral part of today's education is teaching students about America's dependence on foreign oil. "As we educate students, their lives will be very different than mine was growing up, and it's important they know about energy and the different forms," Patrick said. "It's a valuable part of our curriculum." Townsend Schools completed a lighting project replacing ballasts seven years ago, but it used part of its grant dollars to replace light bulbs. Patrick said Townsend used about $150,000 of the grant to replace "nomadic" controls. With those controls, the maintenance department can diagnose problems throughout the entire district from one computer, he said. The rest of the grant money was used for "retro commissioning," which means making sure all parts of the systems, like heating and water, are functioning properly. "It's just a matter of making sure all systems are working to maximum capacity the way it was designed," Patrick said.

Montana City School Superintendent Tony Kloker said that district's grant was used to replace lighting and install occupancy sensors in the school building, which houses 430 students and 60 employees. "Hopefully (the changes) will save a lot of money for the taxpayers in the future," he said. Patrick said the upgrades will create a more suitable learning environment. "To me the ultimate outcome is improved education because classrooms won't be too hot or too cold," he said. "It will create an environment more conducive to learning."

OHIO: As kids head back to school in Ohio, some are enjoying spacious brand new buildings, others are crowded into old ones. It may look like a case of the haves and have nots, but even the most challenging situations are full of promise.
The first day of school is a dream come true for students and teachers at Burlington Elementary over in South Point, Ohio. "I've been teaching 15 years and I never thought I'd have the opportunity to teach in a new building. The kids have the good opportunity to sit at brand new desks and head to a brand new cafeteria and eat food out of a brand new oven," said Matthew Watts, a fifth grade teacher. Yes, everything there is new. There are new smartboards, new technology and a new stage in the cafeteria. The risers I'm sitting on are brand new. I have a smartboard now, an instrument cabinet. I'm going to have a brand new piano and a great sound system so the kids will really enjoy being in here and singing," said Brenda Martin, the music teacher. "We have a computer lab with 25 stations, brand new state-of-the-art," said Dave Lanning, the assistant principal. You can't help but think with new, larger facilities and new, better technology that the teachers and the students will all be better off for it. "The teachers have more teaching stuff and more technology to help us," said Jake Helton, a fifth grader.

The setting is a much different about 15 miles down the road in Scioto County at Green Schools. "I know we're in the library and we're all set up here, but in a couple of weeks, we're going to the modular," said Leah Horton, a fifth grade teacher at Green Elementary. About 200 extra students are squeezed into this building because the primary building has basically been condemned. "My best estimate is the primary school will never be repaired--it's not cost effective to repair it because there's too much damage," said Ron Lindsey, Green Schools Superintendent. WSAZ.com first told you about the crumbling primary building in April. That's when chunks started falling out of the gymnasium wall leading to a troubling discovery. The building's structure was unstable and unsuitable to house children. The decision was quickly made to move them to the elementary school building for the remainder of the school year. Leah Horton has converted the library into her fifth grade classroom -- not ideal, but not that bad either. "I think this being a temporary situation, we're not going to be here long enough for it to be a huge deal," said Ms. Horton.
A four-classroom, two-restroom, fully enclosed modular unit is on the way. It should be set up in the next couple of weeks. In the meantime, the push continues to make sure these growing pains aren't permanent. "We're working with legislators and Columbus to get them to alter the rules for a district like this. Until they change the laws and that percentage the community has to pay, it's going to be difficult to build a school here. But, there's a change in the law that may impact the district in a good way," said Mr. Lindsey.

While educators feel their children are being cheated out of new facilities like other districts in the county, that's where the guilty feelings stop. "We have excellent teachers, administrators, computers and in that regard, we're not cheating the kids," said Mr. Lindsey.

NATIONAL: For parents who want their children to perform well in school and enjoy healthy childhoods, the new school season presents the perfect opportunity to ask "Does where students learn impact how they learn?" Even people who are not teachers or members of the PTA should advocate for state and local school districts to green their built environments not only for the benefits to the students, but also for more holistic community gains.
Numerous studies now indicate that better lighting, ventilation and indoor air-quality in schools contribute to higher student achievement. Indeed, buildings with more filtered air and fewer materials that contain toxins reduce the instance of asthma and colds and flu, and therefore absenteeism among students, and it also reduces teacher turnover. "Students gain directly from more comfortable environments because they improve learning outcomes," says Tim Dufault, chair of the American Institute of Architects (AIA) Committee on Architecture for Education and president of Cuningham Group Architecture.

But in this economy can schools afford to go green? Experts like Dufault think we can and that too much is at stake not to, especially with government stimulus funding available to local communities to make such improvements. The American Recovery and Reinvestment Act, passed in February 2009 to help boost the country out of the economic crisis, allocated $53.6 billion to school modernization. States across the country must use at least 83 percent of this funding, or $40 billion, to provide aid to local school districts. Your state and local officials have the power to allocate funding to school modernization, renovation and repairs that will benefit students and teachers, and shrink your community's carbon footprint. "Not only do green schools make sense for the benefit of students, but they also make economic sense. As long as school districts plan properly, they can reap the full benefits of going green within about five to seven years," suggests Dufault.

On average green schools save $100,000 per year - enough to hire two new teachers, buy 500 new computers, or purchase 5,000 new textbooks. Green schools cost on average less than $3 per square foot more to build, an investment that is paid back in the first year of operations through energy savings alone. If you factor in the lower energy and water costs, improved teacher retention, and lowered health costs, green schools save about $12 per square foot, around four times the average additional cost of going green.

In addition to improving learning outcomes and saving resources for school districts, the whole community benefits from modernizing school structure, according to industry experts. A 2008 report from the AIA finds that existing K-12 classrooms and educational spaces consume 30 percent of the nation's electricity, generate 35 percent of our waste, use eight percent of water resources and are responsible for 20 percent of greenhouse gas and carbon dioxide emissions. Green schools reduce carbon emissions by requiring less energy to heat and cool their facilities. They also have the potential to help cultivate today's young people into tomorrow's energy-sensible leaders.
"As true learning laboratories, schools have a unique opportunity to embrace cutting edge thinking on sustainable design and develop new generations of students for whom going green will be second nature," says Dufault. "Architecture firms have many unique resources to help school district learn what is most appropriate for their local cultures and community needs."

OHIO: Circleville City Schools will ask voters in November to approve a 7.36 million bond levy to build a new high school, middle school and consolidated elementary school, said Superintendent Kirk McMahon. If approved, the levy would cost the owner of a $130,000 home an estimated $293 a year, or 80 cents a day. The bond levy, paid over 37 years, would cover the district’s portion of the $65.3 million project, or $37.9 million. The remaining $27.4 million would be covered from funding by the Ohio School Facilities Commission (OSFC).

If approved, the district would be awarded at least $3.2 million in interest-free Qualified School Construction Bonds, which are part of the federal economic stimulus program, McMahon said. All facilities in the district’s plan would include handicap accessibility, advanced safety and security measures, improved lighting, energy-efficient heating and cooling, improved fresh-air ventilation, up-to-date technology, and Leadership in Energy and Environmental Design (LEED) certification.

NEW YORK: In an economy where much construction has ground to a halt, charter schools are providing a minor but growing niche for the building and design industries in the New York City area. According to the city, 21 new charter schools will open in September, though only two of them will be in new buildings. The state has 141 charter schools in operation, and about 100 are in the city.
“There’s a lot of construction of charter schools going on, especially relative to the slowdown in the market,” said David M. Umansky, the chief executive of Civic Builders, a Manhattan-based developer that specializes in charter schools. Around for more than a decade, charter schools are elementary or secondary schools that receive public operating money, but have been freed from some regulations that apply to public schools in exchange for some type of accountability set forth in each school’s charter. Mr. Umansky said much of the investment is going into historically poor neighborhoods in the South Bronx and central Brooklyn, as well as in Harlem. Because of the schools, “the real estate investment in these markets is substantial,” he said.

School building in general has exploded in the last five years, since the School Construction Authority for New York City financed about $13 billion worth of projects, some of them charter schools. In June, an additional $11.3 billion was allocated for public school construction over the next five years. While charter schools account for a relatively small amount of that money, receiving $359 million in the previous five-year budget, and $210 million in the current one, the city recently lifted a restriction that had limited construction financing for charter schools. If they plan to build in neighborhoods that need more schools because of population growth, charter schools may now apply to dip into a $3.8 billion pool of state money for school construction.

KENTUCKY: The environmentally friendly Turkey Foot Middle School in Fort Wright is making progress towards the future. The school is the first of its kind and administrators have a goal of achieving net zero energy usage. The school will have many features, including solar panels, solar light tubes, geothermal heating and cooling, porous pavements, green building materials, retention and detention basins, and advanced mechanical systems. It will be the first school in Kentucky with a green roof.

NATIONAL: Purpose of Program: To provide grants for emergency repairs and modernization of school facilities to certain local educational agencies (LEAs) that submitted timely applications eligible for funding. Funds awarded under this competition are appropriated under the American Recovery and Reinvestment Act of 2009. Applications Available: August 17, 2009. Deadline for Transmittal of Applications: October 10, 2009. Deadline for Intergovernmental Review: November 30, 2009.

CALIFORNIA: Area school districts could see millions of dollars in savings through a federal program that allows them to borrow interest-free to finance campus upgrades. California public school districts are applying now for the Qualified School Construction Bonds program. State officials estimate school districts will be able to save about 50 percent of the cost of their bond, which is what they would typically pay in interest. Rather than receiving interest payments, those who buy the bonds would get tax credits.

"Its really a dynamic opportunity," said Thomas Ancell, assistant superintendent of the Little Lake City School District in Santa Fe Springs, which has about $9 million in bond funds remaining from the $34 million Measure K bond passed in 2000. That means Little Lake's savings from the QSCB program, if it uses the $9 million it has available, could total $4.5 million, Ancell told trustees at a school board meeting. "It's really a win-win situation," he said. "The only down side is that the state could run out of these (tax credits). That's why we want to get this done right away."

The QSCB program was made possible through the federal stimulus bill passed earlier this year, which set aside $11 billion nationally for the tax credits in both 2009 and 2010. In California, about $773 million is available in tax credits this year to qualifying school districts and charter schools, which have until Aug. 25 to apply for the program. Each district can apply for up to $25 million annually in bond money, which must be used for school construction, modernization, acquisition of land for school facilities or construction equipment. All of the QSCB proceeds must be spent within three years, officials said.

"We anticipate there will be more applications than there are (tax-credit) allocations available," said Kathleen Moore, director of the school facilities planning division of the California Department of Education. As such, Moore said a lottery will be held Aug. 28 to determine which districts will actually get the QSCB tax credits.

MASSACHUSETTS: Part of a neighborhood in New Bedford stands atop a former 101-acre dump where so much garbage and industrial waste were burned through the 1950s that it left ash 12 feet deep in places. But it wasn’t until workers broke ground for a new middle school five years ago that testing began in earnest to map the dump’s footprint and the extent of toxic contamination.
Now, as this financially strapped city struggles to find, haul away, or contain the pollution, its story is instructive for old cities across the country as they redevelop their gritty landscapes. The only available open land is often on industrial sites, where the recklessness of the past can easily overtake ambitions for the future. As New Bedford is belatedly learning, the more you look for pollution in such brownfields, the more you are likely to find. Costs escalate, yet no cleanup or amount of testing may ever be thorough enough to make people feel safe, especially when children are involved.
“I would never have built a middle school on that,’’ said Mayor Scott W. Lang, a local lawyer who was elected in 2005 after the middle school construction began. “But now, we’re trying to do what’s right."

EPA officials say they have no authority over where to site schools, only to ensure that contamination is removed or contained enough so that a site is safe for human use. State Department of Environmental Protection officials say the same. And the Department of Education, which used to oversee school building construction and help foot the bill, reviewed the New Bedford school as they normally did, but only after the site was picked and the design work was finished. The Massachusetts School Building Authority, which has since replaced the state Education Department in overseeing school construction, now gets involved early on in the planning stages.

“The Keith School in New Bedford was a poster child for why we came up with early intervention," said Katherine Craven, executive director of the Building Authority. “We may not be able to dissuade communities in the future from sites, but we are not going to pay for" cleaning them up. The school, built with extensive barriers and dirt caps to prevent contamination from getting out, opened in late 2006, and regular testing shows both the grounds and the air are safe. But costs spiraled to around $70 million because of the contamination. State and federal environmental officials figured the high school across the street from the Keith also rested on top of contamination, so they required the city to test it and nearby properties. More than 2,000 oil tests have turned up hotspots of various contaminants: The high school lawn, Walsh Field, the six homes. Cleaned wetlands behind the new Keith School are now re-contaminated. State environmental officials say they don’t know why, but say it is not coming from under the school.

MASSACHUSETTS: Part of a neighborhood in New Bedford stands atop a former 101-acre dump where so much garbage and industrial waste were burned through the 1950s that it left ash 12 feet deep in places. But it wasn’t until workers broke ground for a new middle school five years ago that testing began in earnest to map the dump’s footprint and the extent of toxic contamination.
Now, as this financially strapped city struggles to find, haul away, or contain the pollution, its story is instructive for old cities across the country as they redevelop their gritty landscapes. The only available open land is often on industrial sites, where the recklessness of the past can easily overtake ambitions for the future. As New Bedford is belatedly learning, the more you look for pollution in such brownfields, the more you are likely to find. Costs escalate, yet no cleanup or amount of testing may ever be thorough enough to make people feel safe, especially when children are involved.
“I would never have built a middle school on that,’’ said Mayor Scott W. Lang, a local lawyer who was elected in 2005 after the middle school construction began. “But now, we’re trying to do what’s right."

EPA officials say they have no authority over where to site schools, only to ensure that contamination is removed or contained enough so that a site is safe for human use. State Department of Environmental Protection officials say the same. And the Department of Education, which used to oversee school building construction and help foot the bill, reviewed the New Bedford school as they normally did, but only after the site was picked and the design work was finished. The Massachusetts School Building Authority, which has since replaced the state Education Department in overseeing school construction, now gets involved early on in the planning stages.

“The Keith School in New Bedford was a poster child for why we came up with early intervention," said Katherine Craven, executive director of the Building Authority. “We may not be able to dissuade communities in the future from sites, but we are not going to pay for" cleaning them up. The school, built with extensive barriers and dirt caps to prevent contamination from getting out, opened in late 2006, and regular testing shows both the grounds and the air are safe. But costs spiraled to around $70 million because of the contamination. State and federal environmental officials figured the high school across the street from the Keith also rested on top of contamination, so they required the city to test it and nearby properties. More than 2,000 oil tests have turned up hotspots of various contaminants: The high school lawn, Walsh Field, the six homes. Cleaned wetlands behind the new Keith School are now re-contaminated. State environmental officials say they don’t know why, but say it is not coming from under the school.

LOUISIANA: The Lafayette Parish school system is shopping around for a buyer for the $10 million in bonds it’s been allocated through a new federal stimulus program. The American Recovery and Reinvestment Act’s Quality School Construction Bond program offers no-interest, tax-credit bonds to school districts for construction or repairs of public school facilities. The bonds also can be used to buy land for new school construction.

The $10 million is only a third of what Lafayette requested from the state Department of Education, which has oversight of the bond allocations. Initially, the allocations were to be given on a first-come, first-served basis, but requests from 34 school districts exceeded available funding, said Ollie Tyler, state deputy superintendent of education in a letter to district superintendents. Louisiana received a total of $231.6 million for the bond program, but $100 million of that was reserved for the state’s largest school districts: East Baton Rouge, Orleans, Jefferson and Caddo.

The state Department of Education received $272 million in requests from 34 districts, Tyler said in the letter. That was as of Tyler’s Aug. 4 letter to superintendents, but more requests were expected, Tyler said. The $10 million cap will ensure that more districts have access to the federal bond program, Tyler said. Districts awarded the bonds have 90 days to set up a sale and submit documentation to the state Department of Education. It’s expected that some districts may not be able to meet the deadline, so more allocation rounds are likely, Tyler said.

COLORADO: Nearly $100 million has been dedicated to build four schools in the San Luis Valley. It's part of the largest investment the state has ever made in school construction, and it's all being done through the Building Excellent Schools Today (BEST) Program. In many rural areas of Colorado, like the San Luis Valley, poor communities cannot afford or simply do not have the tax-base to continue to make improvements on their schools. The Sangre De Christo elementary school was originally built in 1922. It's been the educational starting place for many of the community’s families, several of which have children who are third and fourth generation students at the school.

Inside, cast iron radiators are the schools sole source of heat. The second floor drinking fountain doesn't work, and hasn't for several years. The scoreboard in the original gym still hangs on the wall, the score stuck at Home 79 Visitors 98, even though it has long since been converted into office space, a library, and a computer lab. "It's got a poor heating system, poor ventilation, poor insulation, windows probably need to be replaced, we have patched up new roof, things like that, but as I indicated we keep getting further and further behind," says Lynn Howard, the superintendent of Sangre De Christo District schools. It is for this reason San Luis Valley schools will receive $87 million to replace two elementary schools in Alamosa, the elementary, middle, and high schools in Sangre De Christo district, and the high school in Sargent. It means a lot to families in these communities. "I think that the schools are the heartbeat of the communities, and if we don't have the schools here, we don't have a community, and i think this gives us some real hope that this community will be around for generations to come," says Mark Beiriger, the father of 3rd generation Sangre De Christo elementary school students.

The goal of the BEST program is to provide students with a 21 century school for a 21 century education. In total, the BEST program will grant close to $1 billion to K-12 capital construction throughout the state, over the next few years. Next year, in El Paso county alone, 12 school districts are set to receive more than $37 million. It is more than any other county in the state.

CALIFORNIA: The University of California will begin selling almost $1.4 billion in bonds, giving much-needed funding for safety and seismic construction projects, classrooms, research buildings, student housing and other revenue-generating projects. The UC system has plans for 70 projects, with at least one planned for each of the 10 campuses, as part of the bond sale. Among the projects that will be funded under the bonds are a life sciences building and police station at UCLA. The Build America Bonds can only be used for capital projects. The bonds are higher interest than tax-exempt bonds, but will be offset by a 35 percent federal subsidy that includes bond commissions and sales expenses.

TENNESSEE: A $30.6 million plan to build the new Kate Bond Middle School in Cordova is among the projects Memphis City Schools aim to fund through a special program backed by the federal government that allows governments to borrow at almost no interest. School officials went to the Shelby County Commission to ask for the county's help in applying for $41 million through the program. The county government is involved because it supplies a significant amount of the city school system's budget. If the school system receives the money this year, it would apply for another $41 million next year, deputy superintendent Irving Hamer said.

The funds for these projects would be raised through Qualified School Construction Bonds, made possible by the economic stimulus package that Congress passed earlier this year. The high poverty rates in Memphis City Schools mean that the federal government is already likely to send the district money.

MISSOURI: Dick Bartow told the Hollister School Board that they will be saving over $3 million in interest thanks to a stimulus program. “That is fabulous, fabulous numbers,” said Bartow, executive vice president of George K. Baum & Co., in Kansas City. In April, Hollister voters approved a $6.5 million bond issue to build an early childhood education center. In May, a program, known as the Qualified School Construction Bond program, started with approximately $140 million in available funds through the program in Missouri. Districts across the state submitted requests for approximately $340 million of the bonds. Hollister qualified for nearly $4 million in the Qualified School Construction Bonds and now the district will be able to avoid paying interest on that amount.

“When we put the issue on the ballot, we had no idea this was coming up,” Bartow said. “We couldn’t have hit it any better.” Bartow said this will put the district in a better position sooner for future projects. “That is good news, great news,” said Lisa Westfall, Hollister School Board president. The district plans to break ground in September on the early childhood development center and have construction completed by spring 2011. The center will be built near the elementary school.

INDIANA: Although economic pressures and a new state law have slowed school construction throughout Indiana, several districts are wrapping up construction and renovation projects just in time for this week's resumption of classes. In some districts, growing enrollment and aging buildings led to the most recent improvements. But some districts have turned to cheaper alternatives, said Dennis Costerison, executive director of the Indiana Association of School Business. "Some, like Hamilton Southeastern, will continue to build because they have to have a place to put kids, but there has been a slowdown around the region in recent years," he said. "A combination of the economy and now the referendum requiring districts to get permission to build new buildings has caused school administrators to rethink their building plans."

State law now requires voters to sign off on multimillion-dollar projects. Voters in Hamilton, Johnson and Morgan counties already have turned down project requests through referendums. Marion County voters passed a $278 million IPS proposal in November. The IPS request shows districts with flat or even declining enrollment aren't immune to the need for building upgrades. Suburban districts have turned to cheaper alternatives as well. Instead of building new high schools, Brownsburg will open its $9.4 million Senior Academy on Aug. 17, and Franklin Central in southeastern Marion County debuts its $27 million Freshman Academy today. Both academies are additions to the existing high schools and provide significant savings over the cost of a new one -- $100 million or more. The additions are designed to ease overcrowding and provide opportunities to either prepare freshmen for high school or train seniors for life after school. "School construction definitely has evolved in recent years as districts have become a lot more conservative," Costerison said.

NATIONAL: Updated federal guidelines offer state and local public health and school officials a range of options for responding to 2009 H1N1 influenza in schools, depending on how severe the flu may be in their communities. The guidance says officials should balance the risk of flu in their communities with the disruption, potential safety risks, and other consequences that school dismissals could cause in education and the wider community.

ARIZONA: While other districts struggled to reduce excess utility costs from their budgets, Agua Fria Union High School District broke even because of energy-cost-saving measures. Agua Fria Union spent about $250,000 on electricity at its four schools this year, an 11.8 percent decrease in utilities usage from the previous year. District officials said last year's savings helped keep this year's operational budget cuts down.

Excess utilities was a funding formula created in the 1980s as district budgets could no longer keep up with rising energy costs. The provision allowed districts to spend outside their budget to pay for utility bills. But in July, the ability to spend outside a district's budget by levying an increased property tax for excess utilities had expired.

Agua Fria cut its utility costs last year by reducing the operating hours on each campus. From 5 p.m. to 6 a.m. daily, district campuses would run at an unoccupied state, increasing room temperatures, unless there was an event taking place, said Gary Gable, facilities and construction manager. In the future, the district expects to reduce utility costs by educating students and teachers about utility efficiencies and by investing in solar energy. The district, along with Deer Valley and Scottsdale unified school districts, are working with Mohave Educational Services, a cooperative purchasing partner that helps districts cut costs by buying services together. Agua Fria would have a "solar-service agreement" with a company, said John Schmadeke, assistant superintendent of operations. The solar-service agreements are needed because schools, government agencies and non-profits can't take advantage of federal tax incentives for solar panels, he said.
Schmadeke said there would be no up-front costs to the district in the installation and maintenance of solar panels. The district would buy the electricity created by the solar panels at a guaranteed rate throughout the life of the contract, which Schmadeke said would be no more than 25 years. Although requests for services are already out, the solar-panel project is stalled until the Arizona Cooperation Commission gives private solar businesses the authority to sell electricity.

WISCONSIN: School construction and renovation projects just got cheaper for 53 Wisconsin school districts, with the state announcing the recipients of $125.5 million worth of interest-free borrowing authority. In most of those districts, because interest payments on the bonds fall outside state-imposed revenue caps, the awards translate into a reduction in property taxes. The awards are paid out of two programs that are part of an effort to stimulate the American economy. As part of it, the federal government will issue tax credits to financial institutions that buy school district bonds, thereby offsetting or completely covering the costs of interest to be paid by the selected school systems.

The initiative was so popular the state Department of Public Instruction received requests for more than $525 million in bonding authority from Wisconsin school districts. Milwaukee Public Schools did not have to apply for a separate $72.1 million award, although it can give the state any portion of that amount it decides not to use. A panel of reviewers rated the school district requests for the more competitive bonding program based on whether the districts already had voter or school board approval to issue bonds for the proposed projects. They favored projects that addressed priority areas that included early education, school health and safety, and programs in science, technology, engineering and math, DPI spokesman Patrick Gasper said. The ability of projects to create or maintain jobs also was considered, he said.

"These bonds will help money flow through our economy, supporting jobs, while helping Wisconsin schools repair, improve and build new facilities where needed," Gov. Jim Doyle said in a statement announcing the awards. State schools Superintendent Tony Evers said the money would go toward "smart improvements" and make needed repairs to school buildings.

OKLAHOMA: A $30 million public-private partnership in Tulsa will result in the construction of three early-childhood learning centers that will provide early care and education for 600 at-risk infants and toddlers. The George Kaiser Family Foundation announced Thursday it will match $15 million of federal education stimulus-grant money approved for the projects. Tulsa Public Schools will allocate $2 million for operating funds. Foundation Executive Director Ken Levit says investment in early childhood education helps prepare children for school and avoid remediation in later school years.
The federal money comes from $100 million in stimulus money designated for an education fund allocated at the governor's discretion.

OKLAHOMA: A $30 million public-private partnership in Tulsa will result in the construction of three early-childhood learning centers that will provide early care and education for 600 at-risk infants and toddlers. The George Kaiser Family Foundation announced Thursday it will match $15 million of federal education stimulus-grant money approved for the projects. Tulsa Public Schools will allocate $2 million for operating funds. Foundation Executive Director Ken Levit says investment in early childhood education helps prepare children for school and avoid remediation in later school years.
The federal money comes from $100 million in stimulus money designated for an education fund allocated at the governor's discretion.

TENNESSEE: Sullivan County is putting the wheels in motion to seek up to $20 million in low- or no-interest federal bonds for school construction, renovation and maintenance. Director of Schools Jack Barnes, notified of the Qualified School Construction Bond (QSCB) program, said the federal stimulus program has very few strings attached, but applicants get more points for “green,” energy-efficient and high-technology projects. Barnes said the bonds, if received, likely would go toward a more than $100 million school building and renovation program that would cost almost $202 million when funding is shared with the Kingsport and Bristol, Tenn., school systems based on enrollment. However, Barnes said the county system would not have to share the QSCB money with the city systems.
The money must be spent within three years, and 10 percent of the money must be spent in the first six months. Barnes said the idea is to get the money into the economy and help the construction business.
Tennessee is to receive $184 million, but after the Memphis area received bond money, a little less than $122 million remains available. Barnes said that money will be split 12 ways among competing systems. In Northeast Tennessee, Hawkins County also plans to apply.

NEBRASKA: The Omaha school district plans to spend at least $40 million on school construction in the coming year. And it doesn’t require a public vote. The federal stimulus program includes two different ways for school districts to tap money for construction and renovation — if they are given federal authorization. Most of the resources were designated for urban school districts. Under the stimulus program, the Omaha Public Schools is authorized over the next two years to sell nearly $35 million in interest-free Qualified School Construction Bonds. The district also is allowed to sell Build America Bonds — with a unique interest rebate for the district.

Finance administrator Dennis Pool told school board members that the bonds will allow the district to save resident taxpayers more than $13 million in interest over the life of the bonds, compared to typical bonds with no break on interest. Pool said more of the same type of bonds could be issued in as soon as six months to complete projects identified in the district’s recently released five-year facility study.
“You’d have a lot of flexibility to make some decisions,” Pool told the board. Since the district’s facility study — and its $500 million list of projects — was issued last month, Pool said he has been asked by constituents, “‘Why don’t you go issue $500 million in bonds?’” He explained to the board that legally, the district can levy only 5.2 cents per $100 of valuation to pay back bonds. The $40 million in stimulus program bonds would require 3.5 cents per $100 or less to repay. According to the Internal Revenue Service, Build America Bonds are available to state and local governments for building improvements. In this case, the federal government will pay up to 35 percent of the interest meant for investors. The interest-free Qualified School Construction Bonds are specific to public school construction and qualify investors for income tax credits in lieu of bond interest payments, according to IRS guidance.

NATIONAL: Building a green school doesn’t have to cost a penny more. You’ve heard that green schools save money over time, reducing energy, water and even healthcare expenses. What you may not know is that, these days, a green school can be built for a price comparable to a conventionally designed facility.

TEXAS: Mansfield school administrators want to use more than $24 million in bond money they’re saving because of a drop in construction prices to add a 142,000-square-foot auditorium and professional development center. The money would come from the difference between what the district originally estimated it would cost to build a fifth high school and the now-projected cost. The estimate has fallen to $60 million, from $84.5 million in 2006. Administrators say the recession is behind the cost reduction. The high school is expected to open in 2012.

NORTH CAROLINA: Here's a back-to-school savings for everyone: Catawba County taxpayers will save $1.7million in interest payments if the county borrows school-construction funds under the terms of a new federal stimulus package. Local taxpayers would not pay interest on the proposed $5million in bonds, repaying only the principal over 12 years. The money would be used in Catawba's three school districts: Hickory Public Schools, $1.4million for repairs and window replacements at Hickory High School; Newton-Conover Schools, $1.2 million toward building a new middle school on County Home Road; Catawba County Schools, $2.4 million toward renovating Arndt Middle School.

Catawba County had planned to finance the three construction projects by traditional borrowing, at a rate of 4.5 to 5 percent, said county finance director Rodney Miller. The zero-interest bonds should be enough to pay for all the Hickory High work, Miller said, but the county will still need to borrow more money through traditional financing to pay for the two middle schools. The county expects to spend $4.25million to renovate Arndt Middle School; zero-interest financing would pay 56 percent of that cost and the balance would be borrowed in traditional markets. Newton-Conover's new middle school will cost about $21 million. The zero-interest bonds would cover about 6 percent of the work.

The federal stimulus law offers the zero-interest financing through Qualified School Construction Bonds. The bonds are sold by financial institutions and carry a federal tax credit to make them attractive to buyers. “It is not free money,” Miller said. “It is a less expensive way to borrow money.” N.C. school districts can sell almost $276 million in zero-interest bonds this year. More bonds will be available in 2010, but the amount is not determined. Charlotte-Mecklenburg is eligible to sell $26 million in bonds; Wake and Guilford counties can each sell $17 million. The amount available is based on school enrollment, area wealth and other factors. The money must be used to build, renovate or buy land for public schools. It cannot be spent on athletic stadiums or stand-alone administration buildings. It cannot be used at community colleges, Miller said.

INDIANA: Santa Claus didn't come to town, but someone left a $550,000 gift for Randolph Southern taxpayers."This is like Christmas in July for us," Supt. Mike Necessary said of the money taxpayers will save from a no-interest-bond that will pay for a new school roof. The corporation houses all 603 of its students, plus its administrative office, under one roof near the intersection of U.S. 27 and U.S. 36. And that roof needs to be replaced. Taxpayers will pay the $1.9 million for the actual construction, via bonds, but the new Qualified School Construction Bond, created with federal stimulus money, comes with no interest over its 13-year term. Sid Baker, the school's financial consultant from City Securities Corp. in Fort Wayne, said the zero-interest bond will save the owner of a $100,000 home from an extra $20 in taxes each year.

Nationally, schools are eligible for $22 billion in these zero-interest bonds. Indiana's share is more than $177 million and schools are applying for money for renovation, repair or modernization projects. (The bonds can't be used to pay off existing debt or for projects already under way.) So far, more than $55 million has been awarded to 21 school corporations in the state, according to the Indiana Department of Education.
Yorktown Community Schools just got its approval letter Wednesday, and Supt. Zach Rozelle said the $2 million will be used to make energy savings improvements at Yorktown Elementary and Yorktown Middle Schools. Yorktown already is making those updates at Pleasant View Elementary and Yorktown High School, and Rozelle said the plan at Yorktown Elementary is to upgrade the HVAC system and controls, install new windows and make accessibility improvements.

LOUISIANA: For firms like Ryan Gootee General Contractors, government-financed projects are providing a lifeline. With a turbulent economy and tight credit taking the wind out of private-sector projects involving office buildings and condominiums, Gootee's workload has shifted to publicly financed projects such as the renovation of Joseph A. Craig Elementary in Treme. Ryan Gootee's Metairie-based company is among the beneficiaries of one post-Katrina construction push that could sustain contractors -- and the swarms of carpenters, brick masons, electricians and others they employ -- for some time, a bright spot in the New Orleans economy.

During the next five years, a flurry of public school construction projects, valued at about $700 million, will roll out in New Orleans, with the bulk of the tab paid through Federal Emergency Management Agency recovery funds. Five new-construction and renovation projects wrapping up in the next few months represent the first part of the largest school-building initiative in the city's modern history, recalling an aggressive construction program financed in the 1800s through the bequest of plantation owner and philanthropist John McDonogh. That effort resulted in a network of schools named in McDonogh's honor, a unique trait of the city's public infrastructure.

Implementation of the first phase of a Recovery School District and Orleans Parish School Board master plan for rebuilding schools will bring major investment to dozens of sites. That could yield up to 17,500 jobs of varying duration, assuming one job is created for every $40,000 spent, according to Greater New Orleans Inc., an economic development group. In addition to construction jobs, that estimate includes other jobs created as contractors buy supplies and as project spending circulates in the local economy. "You're talking about a five-year span of time with $700 million spread over it," Gootee said. "It keeps things constant."
Gulfport, Miss.-based Roy Anderson Corp. has about 100 people working on the construction of Greater Gentilly High on Paris Avenue and Langston Hughes Elementary near the Fair Grounds, with most of the workers drawn from the New Orleans area, said the company's vice president, Judson McLeod. Such projects offer "a great opportunity" for contractors, he said.

The construction boom promises a collection of energy- and storm-resistant "green" campuses with emphasis on such goals as improved air quality and increased use of daylight. That could transform New Orleans into a major player in a national movement, school officials and others say

MISSISSIPPI: Pine Belt superintendents are keeping their fingers crossed that their districts receive a slice of the $132 million pie of interest-free construction bonds available through federal stimulus dollars. According to Mississippi Department of Education officials, the Qualified School Construction Bonds program was an initiative created through the state's stimulus funds. The program allows school districts to apply to borrow up to $3 million of interest-free monies that can be used for construction, rehabilitation or repair of public school facilities. The district has 15 years to repay the loan.

State education officials said 57 districts have applied, including Hattiesburg, Petal and Forrest County. Lamar County and Forrest County Agricultural High School officials said applications are being completed. State education officials said bonds have not been allocated and that districts may not be awarded the exact amount requested. A date to name allocations has not been set. "We're so anxious," said Annie Wimbish, superintendent of Hattiesburg public schools. "This is just so critical to us. Every last one of our schools are in need." Wimbish, who has applied for the maximum $3 million, said the money would be used for major roofing repairs and parking lot upgrades districtwide. If awarded the full amount, Wimbish said she also wants to address bathroom renovations at the elementary schools and new floors for Hawkins Elementary. "We've been doing patches, patches and patches for years," she said. "Hopefully, we'll receive this loan because every child deserves a learning environment that's inviting, attractive and safe."

In Petal, Superintendent John Buchanan said his district has applied for $3 million to complete the new football stadium at Petal High School. He said the stadium is the last in a series of large projects that began years ago with the construction of the performing arts center. "It's a win-win situation for the school district," he said. "And any opportunity we have to improve our district, we're going to take full measure of doing that."
Brian Freeman, deputy superintendent for Forrest County schools, said his district also has requested $3 million for roofing and restroom renovations. "We definitely need these dollars," he said. "And any time you can secure dollars without interest, it's good for the district."

TENNESSEE: The Hawkins County Commission agreed to acquire the $19.5 million needed to complete pending school building projects using “Build America Bonds” created as part of President Obama’s economic stimulus program. A financial adviser to the commission told county officials the bonds would save between $2.5 million and $3.75 million in interest over the life of the bonds. The bonds are not federal income tax exempt for bond holders, but they save state and local agencies money by providing a federal subsidy of 35 percent of the interest paid on the bonds. The program was signed into law by President Obama in February as part of the American Recovery and Reinvestment Act.

Kingsport schools will reap more than $900,000 for capital projects because of this nearly $20 million in Hawkins County school bonds about to be issued. Kingsport City Schools’ share of the “Build America Bonds” to be issued for Hawkins County projects would be about $937,000, according to David Frye, finance director of the city system. Frye told the Kingsport Board of Education at a July 23 work session that is based on the city system having 4.89 percent of the average daily attendance among students in Hawkins County. Rogersville City School, a one-school district, also will share in the proceeds based on its average daily attendance. The Kingsport Board of Mayor and Aldermen, the fiduciary agent for KCS, at its July 21 meeting waived the right to receive the bond money directly from Hawkins County. In exchange, Hawkins County is giving the city that same amount “to be spent on school capital,” Frye explained. Frye said the money thus would have to go toward school system capital projects. Even without that condition in the agreement between Kingsport and Hawkins County, Frye said spending one-time money on recurring expenses is not sound fiscal policy. KCS still has $542,000 in Hawkins County bond funds from the 2008-09 year and another $52,000 from prior years. Combined with the new bond money, that would give the system about $1.5 million to use for capital projects, Frye said.

Pending capital projects of the Kingsport school system include a new Central Office, which is listed in the 2009-10 capital improvement plan at $3 million, $300,000 for security modifications at schools, $500,000 for property purchases, and $200,000 for property purchases and parking lot work at Lincoln Elementary. For 2010-11, the list includes $7.5 million for additional middle school classrooms. And for 2011-12 it includes $7.5 million for additional high school classrooms.

NORTH CAROLINA: Bonds from the federal economic stimulus package could fund almost $4.4 million in construction and renovation projects at local schools. Asheville City and Buncombe County schools are applying for zero- or low-interest Qualified School Construction Bonds established by the American Recovery and Reinvestment Act. The money will go toward renovations at Asheville High, new roofs at Erwin High and Reynolds Middle and a new access road and parking lot at Bell Elementary. "We will have to pay this money back, but it's zero-interest,” said Charlie Glazener, spokesman for Asheville City Schools. The city school system is seeking almost $1.3 million for renovations at its flagship, Asheville High. The plan calls for installing a sprinkler system and replacing windows in the main building, repairing a deteriorated deck and renovating some classrooms, offices and a former cafeteria. Construction should begin in January and be completed by August of next year. The projects have been on a list of almost $10 million in renovations planned for the high school over the next several years. The availability of the bonds moved up the schedule for some projects.
Buncombe County Schools would use a $3.1 million bond to pay for new roofs at Erwin High and Reynolds Middle, as well as a new access road off Maple Springs Road and additional parking at Bell Elementary. The new road will create another entrance into the school.

All bonds must be issued by the end of December, and at least 10 percent of the funding must be committed within six months of the bond being issued. School districts are expected to pay back their debt within 12 years. “We looked for projects that were larger, were high needs and that normally would go to our capital outlay yearly process but would be difficult to fund because they are so big that they eat up so much of that budget,” said Tim Fierle, facilities director for Buncombe County Schools.

NORTH CAROLINA: Bonds from the federal economic stimulus package could fund almost $4.4 million in construction and renovation projects at local schools. Asheville City and Buncombe County schools are applying for zero- or low-interest Qualified School Construction Bonds established by the American Recovery and Reinvestment Act. The money will go toward renovations at Asheville High, new roofs at Erwin High and Reynolds Middle and a new access road and parking lot at Bell Elementary. "We will have to pay this money back, but it's zero-interest,” said Charlie Glazener, spokesman for Asheville City Schools. The city school system is seeking almost $1.3 million for renovations at its flagship, Asheville High. The plan calls for installing a sprinkler system and replacing windows in the main building, repairing a deteriorated deck and renovating some classrooms, offices and a former cafeteria. Construction should begin in January and be completed by August of next year. The projects have been on a list of almost $10 million in renovations planned for the high school over the next several years. The availability of the bonds moved up the schedule for some projects.
Buncombe County Schools would use a $3.1 million bond to pay for new roofs at Erwin High and Reynolds Middle, as well as a new access road off Maple Springs Road and additional parking at Bell Elementary. The new road will create another entrance into the school.

All bonds must be issued by the end of December, and at least 10 percent of the funding must be committed within six months of the bond being issued. School districts are expected to pay back their debt within 12 years. “We looked for projects that were larger, were high needs and that normally would go to our capital outlay yearly process but would be difficult to fund because they are so big that they eat up so much of that budget,” said Tim Fierle, facilities director for Buncombe County Schools.

NORTH CAROLINA: The Lexington City Board of Education passed a resolution to submit an application to apply for money from the U.S. Qualified School Construction Bonds, part of the American Recovery and Reinvestment Act of 2009. Lexington City Schools is eligible for $1.2 million.
The N.C. Department of Public Instruction is administrating the federal bonds and set a deadline for Friday to apply. DPI offers the bonds as “low or no interest” thanks to special conditions provided by the government as part of the federal stimulus package.
The Davidson County Board of Commissioners granted requests from all the school systems at its July meeting to apply for the federal school construction bonds to cover repairs and updates. The county would offer sale of the bonds to banks, companies and private investors.

If the bonds are sold and issued to the school system, the city schools would have to pay roughly $80,000 out of its category I capital outlay funds every year for 12 to 15 years, said Russ Eagle, assistant superintendent for finance and auxiliary services. He reported the system receives close to $750,000 in that outlay fund each year. The bonds would be at zero interest. Eagle also wanted the board to understand the bonds might not be bought in the current economic climate.

FLORIDA: If the Pasco school district wants to build a new administration wing, it can't use stimulus dollars to do so. That's the latest word coming from the district's bond counsel, which has advised against including plans for a multimillion-dollar complex in an application for federal no-interest bonds created to pay for "shovel ready" school projects. IRS rules for the bonds say the money may be used for "construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed." Administration buildings don't fall within that definition, the district's chief financial officer Olga Swinson said.
That means the district will focus its request for the $11 million in bonds that it qualifies for on a new culinary arts academy at Land O'Lakes High and on "major remodeling projects." The district stands to get another $11 million in the Qualified School Construction Bond program next year, too.

School Board members said they want to see the money go toward projects that affect students and teachers, and not into buildings for bureaucrats. The district might very well be short on administrative space, board member Joanne Hurley said. But "it would be sending the very wrong message" if the board approved a new administration complex while schools needing major repairs, such as Richey Elementary, don't get attention, she said. The idea of a new administration complex is not dead, however. Swinson said the superintendent's team is working on a proposal to bring to the board later in the fall. "We have money set aside," Swinson said. But even that money could raise some hackles if the board gives the green light.

ALABAMA: Mobile County school officials are considering taking advantage of a $23 million construction loan as part of the federal stimulus package. To participate, the school board will have to decide in coming months what to spend the money on, said Tommy Sheffield, facilities manager for the Mobile County Public School System. The money is part of $4.4 billion that the federal government is distributing in stimulus money to some of the country's largest school districts. It's an interest-free loan that must be paid back in about 15 years. It can be used on new construction or to renovate or repair existing school facilities, according to Perry Taylor, state school architect with the Alabama Department of Education.

With about 63,000 students, Mobile County is the 58th largest district in the country, according to the National Center for Educational Statistics. Birmingham City Schools are eligible for about $15 million, and the Montgomery County school system is eligible for about $11 million, Taylor said. Baldwin County schools are not eligible.
The construction money would come as Mobile County school officials are winding down the district's largest building campaign ever. Since 1996, the district has taken out about $400 million worth of construction bonds and spent another $200 million of operations funds to build new schools and renovate others. The district received $51 million from the state for school construction in 2008. It is using half of that money to build two schools -- a new elementary school adjacent to the overcrowded Hutchens Elementary School in west Mobile and a new middle school near Satsuma to house students displaced by Saraland's split from the county system.

Officials had hoped to build more schools with the remaining money, but they instead used it to pay operational costs this year, freeing up funds to keep teachers in the classroom during midyear budget cuts known as proration. With the financial situation continuing to look bleak, officials were not expecting to do much new construction anytime soon. Sheffield recently gave board members an idea about what they could spend this new stimulus money on: $2 million could be used to add 10 classrooms to a school, about $15 million could build a new middle school, and about $12 million could build a new elementary school. A new high school would cost about $28 million, he said.

WISCONSIN: With the economy suffering, the Wisconsin Dells School Board is looking for the most cost-effective way to proceed — if it does at all — with building a $2 million, eight-classroom addition to Spring Hill School, and the board considered funding the project with special construction bonds with no or little interest because the interest would be funded by the federal government through stimulus dollars, possibly saving taxpayers hundreds of thousands of dollars.

The board heard a presentation from Michel Clark, director at Robert W. Baird. Clark explained the similarities and differences between Qualified Zone Academy Bonds and Qualified School Construction Bonds funded through the American Recovery and Reinvestment Act. Both provide funding at no interest or very low interest levels. The lender benefits from a tax credit instead of collecting interest from the school district borrowing the money. The Qualified School Construction Bonds are designed to help districts with new construction, repairs, the purchase of land or purchase of equipment for the renovated or new facility. The Qualified Zone Academy Bonds are for districts in Empowerment Zone or Enterprise Communities with more than 35 percent of students in the building eligible for free and reduced price lunches. It requires a 10 percent private matching contribution and isn’t available for new construction but rather the repair of current facilities. The QZAB could cover the cost of equipment, computers, furnishings, heating and cooling projects, curriculum development or staff development.
Across the country $11 billion has been set aside in both years 2009 and 2010 for the QSCB, according to Clark. Wisconsin received more than $170 million in 2009. More than $72 million is reserved for the Milwaukee Public Schools and more than $98 million was allocated for school districts in the rest of the state. QZABs were allocated $1.4 billion in each of 2009 and 2010 nationwide. Wisconsin received more than $26 million in 2009.

After the meeting District Administrator Chuck Whitsell elaborated on the factors involved in the decisions the school board will make. “On the one side of the ledger you’ve got the economic times, but on the other side of the ledger you have the no fee with the general contractor. You’ve got the possibility of saving $250,000 of interest payments that you’d otherwise have to make. You’ve probably got the lowest construction cost of materials and you keep the debt service at the current level,” Whitsell said. “The only way that I would want to see us do this, and obviously this is a board decision and not a Chuck Whitsell decision, but the only way I would want to see us do this is if we are able to get at least $200,000 or $250,000 of those Qualifying School Construction Bonds. That’s what makes that savings worth going after in my mind, and the board may feel differently about that. We really haven’t talked about that,” he said. The district might have been on an accelerated path had it passed a referendum question in November about borrowing for the addition. Whitsell said the school district’s project could be receiving 35 percent in funding through the QSCB. “If we had passed a referendum last November and our project was $2 million, $700,000 of it would be interest free. That’s a huge savings,” Whitsell said. In his personal opinion he said if the board asks a referendum question he’d want a certain level of funding with the bonds or else he’d prefer to not go through with the building. According to Whitsell, the board must pass a resolution to pose a referendum question 45 days in advance of the election when the question is to appear on the ballot.

NATIONAL: Sen. Tom Harkin, D-Iowa, who oversees the Senate appropriations committee, kicked off a mark-up of the education spending bill by reminding everyone that schools and colleges got $100 billion under the stimulus. He didn't say so explicitly, but that one-time windfall was probably a key reason that the Obama administration, the House of Representatives, and now the Senate subcommittee on education spending proposed just modest increases for education spending this year.

The bill includes $700 million for school renovation grants, a perennial priority for Harkin. Districts must compete for the grants, and then match the federal money with local dollars, Harkin said. "School renovation should have been funded in the Recovery Act," Harkin said. "But in the end school renovation ended up with no money whatsoever." (If you'll remember, some $16 billion was stripped out of the Senate's version of the bill at the eleventh hour to appease moderates in both parties and didn't get put back in during conference.)
Marc Egan, a lobbyist for the National Education Association, the nation's largest teachers' union, praised the school facilities money. "We applaud Chairman Harkin for continuing his push for school modernization," he said. "While we're pleased the bill restores some of the proposed cut to Title I basic grants, it does not go far enough and we hope that will change as the bill advances."

MICHIGAN: Governor Jennifer Granholm has announced that 167 Michigan schools in 103 school districts will receive more than $2.5 million to purchase school lunch equipment, helping ensure Michigan students receive safe and nutritious meals at school. The Michigan Department of Education administers the competitive grant program for schools participating in the National School Lunch Program with funds made available through the American Recovery and Reinvestment Act of 2009 (Recovery Act). “Quality nutrition is a key ingredient to our students’ academic achievement,” said Granholm. “These Recovery Act funds will help struggling school districts acquire the equipment they need to make sure their students receive safe and healthy meals.”

The Recovery Act school lunch equipment grants are designed to help school districts replace old, worn out food service equipment or purchase new equipment to expand and enhance a school’s food service operation. The Recovery Act requires the Michigan Department of Education to prioritize funding for schools where at least 50 percent of the students are eligible for free or reduced-price meals. Equipment purchases must meet one or more of the following functions: improve the quality of meals served in schools; improve the safety of food served in schools; improve the overall energy efficiency of school food service operations; allow schools to expand student participation in their school meals program.
The National School Lunch Program (NSLP) operates in over 101,000 schools and residential child care institutions nationwide. Schools participating in NSLP provide nutritionally balanced, low-cost or free lunches to more than 31 million children each school day. The Recovery Act provided $100 million nationally to states for competitive grants to fund school food service equipment.

OREGON: Green schools can save energy, they're healthier for students and they offer real-life lessons on sustainability, but Oregon school districts remain cautious about building them. Of the 27 new schools approved by Oregon voters in 2006, about one in four have been or will be built to national green standards. School boards cite cost as the main reason they haven't pushed for such schools. But there appears to be a move by some districts to build green without the expense and perceived hassle of meeting national standards. Green is a nebulous term, they say, and they don't need a certificate to prove their new schools were built to be sustainable.

But how do taxpayers know the schools are truly green? Leadership in Energy and Environmental Design (LEED) is widely known as the industry standard for green structures. Like a Nike swoosh, a LEED medallion on a school brings a level of recognition. At least five schools across Oregon have received LEED certifications and have the medallions to prove it. Another 16 new public schools are expected to be approved for certification within the next year. Created by the U.S. Green Building Council, LEED offers four levels of achievement from "certified" to "platinum" based on sustainability points. The catch is it costs a bit more and requires a lot of collaboration and paperwork to prove the schools meet green performance standards.
Districts that build to what some school officials call "LEED equivalent" don't have the medallion or the cost because they can choose which standards to meet and there is no mandatory third-party assessment of the environmental work. "LEED equivalent is an honor system," said Portland architect John Weekes, known nationally for his work on sustainable schools.

More new schools are on the way across Oregon after voters in 2008 approved at least 15 new buildings from Salem to Redmond. Of five districts contacted, all plan to build green schools, but officials are still weighing whether to go with LEED or the equivalent.

Sherwood School District wants to prove its schools are green. The 4,500-student district is finishing construction of two schools it hopes will bring LEED gold ratings. "We believe the ... LEED certification is the highest and most rigorous measure," said Sherwood Superintendent Dan Jamison. The program can add between 1 and 3 percent to the cost of construction, according to Oregon architects and a study commissioned by the U.S. Green Building Council. For a $15 million elementary school, that can be as high as $450,000. It can tack as much as $1 million onto construction of a high school. But several Portland architects said that's changing as the economy cools demand for products and the availability of green building materials improves, which reduces prices. In addition, the Oregon Department of Energy offers grants and tax credits through its High Performance School Program. In Sherwood, Jamison said a drop in construction prices is expected to save the district $3 million on its green schools. "Perhaps that made the decision (for LEED) easier for us," he said.

A LEED certification is like a report card, said Rachel Gutter, a senior manager with U.S. Green Building Council."To a large extent it has to do with substantiating to the community that it's green," she said. "Ultimately, with LEED, if you can't prove it, you don't get the points." North Clackamas School District doesn't see the need for a LEED medallion, said Ron Stewart, assistant superintendent. "There's an expense to getting certified with LEED," he said. So, the district in Milwaukie is building six schools to equivalent standards, instead. The district already has an officially certified school. In 2002, North Clackamas High School was the first high school in the nation to achieve a LEED silver certification, according to the U.S. Green Building Council. "LEED is just a program of recognition," Stewart said. "It provides information and guidance. Anyone can follow (it) without the certification."

There's also a philosophy at play in the green debate. LEED schools are built in a way that helps the Earth. Equivalent schools are built to help the school district. For example, LEED requires contractors to recycle their construction debris and use wood from certified forests. It's a holistic approach. School districts that don't pursue LEED may skip those requirements and put the money into the building to enhance its energy efficiency or improve its comfort. In Springfield, the message from the community was "do the right thing environmentally, but put the resources where they matter most, which is in the building and where they would serve kids," said Jeff DeFranco, director of communications and facilities. The district is not seeking LEED certification on its two elementary schools. There is some controversy about what counts and what doesn't count for LEED points, facilities directors said. A district, for example, could build a school that creates more energy than it uses and it wouldn't meet LEED requirements if it doesn't have points in other categories. "LEED is very bureaucratic," said John Kinden, Gladstone School District director of finance and operations. "There are so many requirements and so many are difficult to meet." Gladstone is building a green addition to its high school but it won't be LEED certified.

OREGON: As if crumbling and overcrowded schools weren’t motivation enough, school district and college officials in Oregon have additional pressure to get bond measures passed: the health of the design and construction industries depends on their success. Worth $109 billion, educational construction is the building industry’s largest sector, according to the U.S. Commerce Department. Nationwide, it’s been one of the few sectors that has grown during the recession and kept some life in a slumping construction market.

The trend holds for Oregon as well. Although the state does not measure the value of statewide school construction, data from individual school districts, colleges and universities suggests that work related to education projects remains strong. Dull Olson Weekes Architects, for example, is riding a wave that started rolling this past November on election night. “Because most of our work is schools, we were fortunate that a lot of the bills we worked on in planning passed,” said Tami Fuller, the firm’s marketing manager. School projects can take two to three years to complete design and construction, Fuller said. And districts often stretch out bond projects for a number of years, providing sustained work from a single bond measure. That promise of long-term work allowed Dull Olson Weekes to hire eight architectural employees and one administrative employee in the past year, Fuller said.

Educational construction has made up a larger portion of Turner Construction Co.’s work since the recession began, said Dan Kavanaugh, vice president and general manager. Turner is working on high-profile projects at the University of Oregon, Oregon State University and the University of Portland. “The public sector is really where a lot of work is available,” Kavanaugh said. “The higher ed folks seem to just keep plugging along.” They plug along because the need is so great, said Bob Simonton, capital construction director for the Oregon University System. “We have a $670 million backlog of capital repair projects and another $400-some-million in seismic (improvements),” Simonton said. All the universities need is money, Simonton said – and the Oregon Legislature just approved a bunch. The capital construction budget is $713 million, Simonton said, up from around $600 million last biennium. “We got one of the largest capital budgets in our history in one of the most difficult economic times.” Capital projects will provide jobs for years to come, he testified before the Legislature during the 2009 session. “I said, ‘I have ways to leverage the budget and create many more jobs,’” Simonton said. The university system has six years to complete projects paid for by each legislative session. And there’s always the promise of more projects in the next biennium. “It’s a great time for us to be busy,” Simonton said, “And for the contractors and design professionals. “They need the work, and we need the work done.”

At public school districts and colleges across the state, the need has trumped worries about voters shooting down bond measures. West Linn-Wilsonville School District board members saw the recession deepening last year, but decided they needed to go to the ballot anyway. The $98 million measure passed by a narrow margin. Even now, with the economy still in a deep hole, school board member Mary Furrow said she would have made the same decision. “After a while, it isn’t just class size; it strains the facilities,” Furrow said. “There are too many kids on the playground, too many kids trying to eat in the cafeteria, too many kids to offer after-school programs.” While suburban school construction remains a strong piece of the building industry sector, in some parts of the state, such as central Oregon, it’s practically the only piece. The Bend-La Pine School District is building three schools and expanding three others with money from a 2006 bond. That $119 million will keep builders working through 2010, said John Rexford, deputy superintendent. “The public projects are providing at least a little safety net for the construction industry in town,” Rexford said. “Residential is at a standstill, and most commercial projects are petering out.” In Redmond, voters passed a $110-million bond measure last year that will pay for a new high school and elementary school and make repairs to other buildings. Central Oregon Community College wasn’t so fortunate. Voters defeated the college’s ballot measure last November, putting new building projects on hold. Still, the college has received money for smaller projects from the state stimulus package, said Ron Paradis, director of college relations. And officials will try again this November, putting a $41 million measure on the ballot.
Construction at the college is driven by need, Paradis said, and the student population has grown 40 percent in two years. Health careers programs have two-year waits for admission. Part of that demand stems from an economy that is sending thousands of unemployed workers back to school for one- or two-year technical training programs, Paradis said. “Some of those people coming back are the construction workers who were in high demand in that field.”

TEXAS: The Carroll school district has sold $58 million in bonds through a program created by the federal stimulus package that is expected to save the district $6.5 million, officials said. Carroll appears to be the first school district in Texas to sell Build America Bonds, known as BABs, although other entities have used the program as well. The bonds allow state and local governments to sell taxable debt and get back 35 percent of the interest payment from the U.S. Treasury Department. The bonds also provide government entities with funding at lower borrowing costs, said Lewis Wilks, Carroll’s financial adviser. Since the program was launched in April, $17.4 billion in bonds have been issued in 34 states, the Treasury Department reported last week.

State governments, universities and transit authorities across the country are among those issuing the bonds, said Edie Behr, vice president and senior credit officer for Moody’s Corp. "They are proving very popular," she said. "If local governments determine they offer a lower cost for funds, they take advantage of it." In June, the University of Texas System Board of Regents said it would sell a package of bonds including about $331 million BABs, with some of the proceeds used to restore the Galveston medical branch damaged by Hurricane Ike last year.

In a special meeting, Carroll trustees voted 5-0 to authorize the sale of $58 million in taxable Build America Bonds and $6.7 million in traditional tax-exempt bonds. Those funds are from a $138 million package approved by voters in May for projects including new schools, technology improvements and expansion of Dragon Stadium. The district also refinanced $21 million in 1998 bonds to save an additional $3 million, said Robb Welch, Carroll’s assistant superintendent for financial services. "It’s a great opportunity for school districts and municipalities," Welch said. "It is a good time to issue bonds, the market is accepting them and it’s a good deal. It’s all about saving money, taking advantage of the market to save money for the taxpayer." Fort Worth district officials are studying the rules and are determining how the program would affect district finances, said Clint Bond, a district spokesman.

MICHIGAN: Federal stimulus funds may revive a Quincy Community School building program whose construction bonds were defeated at the polls in 2007 and again in 2008. The school board approved a resolution to apply for no- or low-interest Qualified School Construction Bonds under the $296 million program available in the state. Superintendent Joe Lopez told the board each grant is limited to $15 million, which means only 20 districts in the state could get the funds. The application was filed prior to the board resolution “to get on the list.” “Ideally we’d like to be in the first round. These are amazing savings,” Board President Leon Parrish said, adding that a 30-year bond issue at normal rates doubles the costs of a project while this 15-year program cuts it in half. “That’s a good deal for the school district and taxpayers.”

MICHIGAN: Federal stimulus funds may revive a Quincy Community School building program whose construction bonds were defeated at the polls in 2007 and again in 2008. The school board approved a resolution to apply for no- or low-interest Qualified School Construction Bonds under the $296 million program available in the state. Superintendent Joe Lopez told the board each grant is limited to $15 million, which means only 20 districts in the state could get the funds. The application was filed prior to the board resolution “to get on the list.” “Ideally we’d like to be in the first round. These are amazing savings,” Board President Leon Parrish said, adding that a 30-year bond issue at normal rates doubles the costs of a project while this 15-year program cuts it in half. “That’s a good deal for the school district and taxpayers.”

NEVADA: The Clark County School District wants to issue up to $249 million in new bonds for construction projects. District officials say interest-free bonds and federal stimulus money could help pay for school construction while a 10-year bond program approved by voters in 1998 winds down

NATIONAL: Representative Bob Etheridge, D-N.C., will urge Treasury Secretary Timothy Geithner to quickly issue guidance on qualified school construction bonds, specifically how to strip and sell the bonds' tax credits in the secondary market. Lawmakers hope the Treasury will act soon to ensure a secondary market for QSCBs develop in time for school districts to issue $11 billion of these funds before they revert back to states on Dec. 31. Only five QSCB deals have been done since February when they were created by the American Recovery and Reinvestment Act. The law authorized another $11 billion of QSCBs for issuance in 2010.

Congress authorized the stripping of tax credits for tax-credit bonds last year, but the Treasury has not yet issued guidance detailing how it should be done. Treasury officials have said that the guidance might not be released until at least September. Investors are anxious about buying tax-credit bonds without the Treasury guidance. Some investors do not want to invest in a bond only to learn later that they are unable to strip and sell the tax credit, according to market participants.

NEW HAMPSHIRE: Rochester City Council’s energy assessment for city buildings revealed that the city schools are some of the best in the state, while other municipal buildings lag behind. Each of the city’s nine school buildings evaluated, graded above an 80 on the 1-100 scale called the “portfolio manager rating” by the city’s energy efficiency consultants. The library scored a 75 percent, the police station 20 percent and the arena 16 percent. The Environmental Protection Agency gives energy star ratings to school buildings that score at least a 75. The school system has started applying for the rating for some schools; currently, only one school in New Hampshire has achieved an energy star label

NATIONAL: The House Education and Labor Committee is considering that "bombshell" higher education loan bill. The bill includes more than $4 billion over the next two fiscal years for a green-schools initiative, something Rep. George Miller, D-Calif., has been trying to get through Congress via a variety of legislative vehicles. (For instance, the House's original version of the stimulus. It was eventually stripped out because of opposition from some conservative Democrats and moderate Republicans). The program would be paid for through the $87 billion in projected savings available under the higher education loan bill, according to a CBO estimate.

Under the measure, the school facilities grants would go out under the Title I, Part A formula. But every Title I district would get a grant of at least $5,000. The majority of the funds would need to be used for projects that meet green building standards.
Rep. Mike Castle of Delaware, a moderate Republican, brought up one of his major concerns on the school construction piece: Congress is spending money on a brand-new program while it still hasn't provided enough funding for special education.

FLORIDA: Don't look for new school construction anytime soon in Hillsborough County. Enrollment is projected to drop again this fall, and five new schools opening in August will be the district's last until at least the fall of 2013, officials said Tuesday. That lull marks the end of a growth-fueled binge that saw 70 schools built in a dozen years. "Up until this past school year, we were growing anywhere between 3,000 and 7,000 kids per year," said Cindy Wood, director of planning and related services. "This is uncharted ground for us." This fall the district expects an enrollment of 188,228 students, down 1,360 from last year and the third straight year of decline.

Overcrowding in some areas means the five schools opening this fall — Strawberry Crest High and Bailey Elementary in eastern Hillsborough County; Stowers Elementary and Barrington Middle to the south; and Steinbrenner High in the northwest — will be put to good use. But for the next five years, the emphasis will be on upkeep and repair, chief facilities officer Cathy Valdes said at a School Board workshop on the district's facilities plan. Most of the district's capital budget will go toward $241.4 million in major maintenance projects across its 296 schools and other buildings, she said. The district has also budgeted $52.1 million toward building an elementary school in Tampa Heights by the fall of 2013, and a middle school in south Hillsborough. But it will need at least $199.7 million more to finish those projects and 20 major renovations, including overhauls for Gaither and Bloomingdale high schools, Valdes said. Enrollment, and the state funding that goes with it, is projected to begin creeping up in the fall of 2010. But the district is taking that with a grain of salt.

IOWA: Des Moines school officials would renovate 25 schools, begin plans to build a new elementary school, and buy downtown parking spaces during the first five years of a new statewide sales tax, according to district reports. The renovations and construction — estimated to cost $22.5 million a year during the next five years — would include every school building where no work was done with money from a local sales tax Polk County voters approved in 1999, said Bill Good, the district's chief operations officer. The local tax, which brought in about $27.1 million a year, ends June 30.

District officials have spent about $269 million in sales tax money since 2000 to renovate or build 30 schools and a new central kitchen. At least eight elementary schools have merged, closed or been torn down in that period. The scope of school renovations in Des Moines would be significantly scaled back under the new plan, with less money being spent in most cases because work will not be as extensive as it was under the current local tax.

NORTH CAROLINA: In a year when no building funds were available for the Cherokee County Schools, a $1.28 million, no-interest loan for school construction has been offered from federal stimulus funds. The Cherokee County School Board and the County Commissioners approved a resolution authorizing filing of an application for approval of the financial agreement authorized by the state. The agreement provides $1,282,885.57 in Qualified School Construction Bond funds, which are interest free. The money can only be used for school construction and renovation. The resolution states, “The estimated maximum debt service would be less than $107,000. The county anticipates that any future property tax increases to pay installment payments falling due under the contract in any fiscal year during the term of the contract would be less than $0.01. Based on the current property valuations $0.01 generates in excess of $400,000 and based on the current tax rate of $0.385 that increase would not be excessive.”

TEXAS: The U.S. Department of Energy has approved Texas’ plan to use more than $218 million in American Recovery and Reinvestment Act (ARRA) funds to assist state and local governments hit by tight budgets and increasing pressure to cut energy consumption and reduce greenhouse gas emissions. The stimulus funds will be administered by the State Energy Conservation Office (SECO) to help state agencies, local governments, school districts, public colleges and universities, public hospitals and municipal utilities pay for energy-saving upgrades and installations. Grants totaling $30 million will help public entities install renewable energy technology, including solar, wind, biomass, hydroelectric and geothermal.

NORTH CAROLINA: Mount Airy City Schools Superintendent Dr. Darrin Hartness said that the system could qualify for $1.5 million in stimulus money; however Surry County commissioners need more time to research whether to allow Mount Airy City Schools to apply for federal stimulus money. In order to receive that funding, the school board needs to get approval from the county board of commissioners.

Hartness suggested the board give the go ahead with final phase of renovations to Mount Airy High School; the cost estimate of the high school construction is $2.5 million. He also suggested they approve the Mount Airy High School gymnasium renovations at a cost of $100,000, the cafeteria renovations with an estimate of $525,000; and the replacement of the HVAC controls at B.H. Tharrington Primary and at Mount Airy Middle School with an estimated cost of $225,000. Hartness believes he could get some funding for the heating and air project through energy assistance grants. The commissioners have been adamant about not raising taxes in an already struggling economy. Hartness said in an e-mail, “I hope they will take this opportunity to take advantage of the federal stimulus interest-free bonds.”

Due to the downward trend in the economy, the county board has pushed several school projects forward, and in return, it got lower than expected bids. According to Hartness the Dobson district elementary school and the new Pilot Mountain Middle School projects came in at 70 percent less than expected.

INDIANA: The new South Adams pre-K through 8th grade school is the first public school in Indiana to utilize the construction delivery method known as Design Build. "The average cost to build a new elementary school in 2007 was $157.81 per square foot, soft costs aside, according to Indiana's Department of Local Government Finance. With Design Build promising lower costs, we were hoping for a 6% savings. I am very pleased that we have realized a 16% cost savings amounting to nearly a $4,000,000 savings for South Adams taxpayers," said Cathy Egolf, South Adams Superintendent. Construction costs are reported at $19,967,689 for the 149,678 square foot facility or $133 per square foot. The new school’s "green" features include energy efficiency, natural lighting, and K-12 joint use and shared learning space. 21st century technology includes a wireless campus, one-to-one computer access, and technology tools integrated into each classroom for teachers to collaborate and engage students.

INDIANA: The new South Adams pre-K through 8th grade school is the first public school in Indiana to utilize the construction delivery method known as Design Build. "The average cost to build a new elementary school in 2007 was $157.81 per square foot, soft costs aside, according to Indiana's Department of Local Government Finance. With Design Build promising lower costs, we were hoping for a 6% savings. I am very pleased that we have realized a 16% cost savings amounting to nearly a $4,000,000 savings for South Adams taxpayers," said Cathy Egolf, South Adams Superintendent. Construction costs are reported at $19,967,689 for the 149,678 square foot facility or $133 per square foot. The new school’s "green" features include energy efficiency, natural lighting, and K-12 joint use and shared learning space. 21st century technology includes a wireless campus, one-to-one computer access, and technology tools integrated into each classroom for teachers to collaborate and engage students.

NATIONAL: As part of the effort to increase transparency in government and maintain accountability of funds allocated under the American Recovery and Reinvestment Act (Recovery Act), the U.S. Department of Treasury is today providing an update on issuances of the Build America Bonds program, including state-by-state data. The Build America Bonds program is a new financing tool created by the Recovery Act to allow state and local governments to obtain much-needed funding, at lower borrowing costs, for projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades.

Build America Bonds are designed to appeal to a broader set of investors than traditional tax-exempt bonds. Under the Build America Bonds program, Treasury makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the Build America Bonds. Potential investors include pension funds that traditionally do not hold tax exempt bonds and foreign investors. These investors have been important additions to the market for municipal debt.
Early market reception for Build America Bonds has been very positive. Since the program was launched on April 3, 2009: There has been $17.4 billion in Build America Bond issuance; Build America Bonds constitute about 16.6 percent of municipal bonds issuances since mid April; and A total of 34 states are participating in the program, with a total of 178 separate issues. [A complete list of issuances organized by state is available in a Microsoft Excel File.]

OHIO: The Cleveland school district continues to plan for new elementary schools in blighted neighborhoods where enrollment has plunged, threatening to chew up state construction money that could be used in more stable parts of town, an analysis shows. Enrollment is dropping faster than projected in some neighborhoods, primarily on the East Side. If construction continues, taxpayers could wind up paying for more school space than is needed, according to a report released today by the Bond Accountability Commission. The group monitors the one-third local share of a $1.5 billion construction and renovation program. The analysis by commission administrator James Darr assumes that more than 25 schools not scheduled for work will close. If the buildings remain open, the surplus of space will soar, he said. Darr called on the district to promptly shrink or eliminate schools where necessary.

Officials have formally altered their master plan only once since the program began in 2002, four years before Chief Executive Officer Eugene Sanders' administration took over. Pressured by the state, the district last year cut the number of new or completely renovated elementary schools from nearly 100 to 65. "Delay would pose the serious risk of preserving for generations the sins of waste and poor distribution of school space," the analysis says. The report raises legitimate concerns, district spokesman John Hairston said. He said officials are likely to discuss closing buildings or converting them to specialty programs after consultants complete a facilities study later this year. On the other hand, elementary schools that feed South, James Ford Rhodes and John Marshall high schools may not have enough room, the report says. The projected capacity could change if the district follows through with work on five schools that the state has so far refused to fund. That work has been delayed, giving officials time to decide if the buildings are needed.

NATIONAL: The U.S. Commerce Department's National Institute of Standards and Technology (NIST) announced that it is awarding grants totaling more than $55.5 million to four universities to provide cost-shared support for the construction of new scientific research facilities. “These awards mean four major construction projects in these local areas, with the jobs and economic benefits they bring,” U.S. Commerce Secretary Gary Locke said, “but even more important, these four projects provide a major boost to scientific research at four respected universities, enhancing innovation, public safety and environmental protection for many, many years to come.”

The cost-shared awards include: $ 15 million to the University of Miami (Miami, Fla.) for a Marine Technology and Life Sciences Seawater Research Building, matched by $28.8 million; $14.4 million to Auburn University (Auburn, Ala.) for a Center for Advanced Science, Innovation and Commerce, matched by an equal amount; $11.1 million to the Rice University (Houston, Texas) for the new Brockman Hall for Physics, matched by $33.4 million; and $15 million to the University of North Carolina Wilmington (Wilmington, N.C.) for a new facility for the Marine Biotechnology in North Carolina (MARBIONC) program, matched by an equal amount.

The new research buildings will provide state-of-the-art laboratory facilities supporting academic research across a broad range of topics affecting the Commerce Department's mission, including fundamental physics research, nanotechnology, aquaculture and marine ecology.
The American Recovery and Reinvestment Act of 2009 provided funding for the competitive program to help support the construction of new or expanded research science buildings. NIST allocated up to $60 million of its construction grant funding to meritorious but unfunded project proposals that were received in a 2008 research construction grant competition in order to move the Recovery Act dollars as quickly as possible.

MISSISSIPPI: Pine Belt superintendents are keeping their fingers crossed that their districts receive a slice of the $132 million pie of interest-free construction bonds available through federal stimulus dollars. According to Mississippi Department of Education officials, the Qualified School Construction Bonds program was an initiative created through the state's stimulus funds. The program allows school districts to apply to borrow up to $3 million of interest-free monies that can be used for construction, rehabilitation or repair of public school facilities. The district has 15 years to repay the loan. State education officials said 57 districts have applied, including Hattiesburg, Petal and Forrest County. Lamar County and Forrest County Agricultural High School officials said applications are being completed. State education officials said bonds have not been allocated and that districts may not be awarded the exact amount requested. A date to name allocations has not been set.

"We're so anxious," said Annie Wimbish, superintendent of Hattiesburg public schools. "This is just so critical to us. Every last one of our schools are in need." Wimbish, who has applied for the maximum $3 million, said the money would be used for major roofing repairs and parking lot upgrades districtwide. If awarded the full amount, Wimbish said she also wants to address bathroom renovations at the elementary schools and new floors for Hawkins Elementary. "We've been doing patches, patches and patches for years," she said. "Hopefully, we'll receive this loan because every child deserves a learning environment that's inviting, attractive and safe." In Petal, Superintendent John Buchanan said his district has applied for $3 million to complete the new football stadium at Petal High School. He said the stadium is the last in a series of large projects that began years ago with the construction of the performing arts center. "It's a win-win situation for the school district," he said. "And any opportunity we have to improve our district, we're going to take full measure of doing that."

Brian Freeman, deputy superintendent for Forrest County schools, said his district also has requested $3 million for roofing and restroom renovations. "We definitely need these dollars," he said. "And any time you can secure dollars without interest, it's good for the district." Officials at Forrest County Agricultural High School and Lamar County schools said they are working to submit their applications. "We're not sure yet how much we're going to ask for," said FCAHS Superintendent Elizabeth Yankay. "But we have some floors that need to be replaced, some outside walkways with damaged covers and a host of routine maintenance." Johnny Downs, assistant superintendent of operations for Lamar County schools, said the district plans to request more than $2 million to repair roofs, install fencing and extend parking lots. The money, he said, would also be used to relocate the bus barn and move the central office to the Jefferson Todd Alternative School. "This money would allow us to do some things we normally wouldn't be able to," Downs said. "We need it desperately."

MISSOURI: Governor Jay Nixon announced a $141 million interest-free bond program that will assist 33 Missouri school districts. The Qualified School Construction Bond program allows school districts to use federal tax credits to pay for voter-approved bonds, without interest.

Putnam County R-I Superintendent Health Halley said the interest-free bonds will help the district and the county pay off $3.3 million project a few years sooner. “The debt term is going to be 17 or 16 years instead of the initial 20,” he said. Putnam County R-I is receiving $489,997. Among the renovations completed or underway are; new doors, magnetic safety locks, and art room addition, new gym floor, repairs to the football field, new roofs to the elementary and middle schools and new air conditioner units in the middle school. Green City R-I Superintendent Don Campbell’s district is using the $1.2 million towards a $2.1 million bond which was passed in April. Campbell said the Qualified School Construction Bond program will save his district $521,000 for a high school renovation project. Green City R-I is receiving $1,286,189. The districts were able to apply for the bond issuances through a process administered by the Missouri Department of Elementary and Secondary Education.

MISSOURI: The University of Missouri System has issued $332 million in bonds, mostly through the stimulus package, to finance more than a dozen facility projects on its four campuses. The projects include new residence halls and health care facilities, as well as upgrades to sprinkler systems and elevators, in St. Louis, Columbia, Rolla and Kansas City.
The fixed-rate bonds will comprise $256.3 million in Build America Bonds and $75.76 million in tax-exempt bonds.

Build America Bonds, created through the American Recovery and Reinvestment Act, are taxable and provide a federal subsidy of 35 percent of the interest paid on them. The university system has $836 million in outstanding system facilities debt and pays $65 million in annual debt service. The new bonds will increase system facilities debt to $1.2 billion and annual debt service to $85 million. Rating agency Moody’s gave the university system credit ratings of AA2 with a stable outlook and Standard & Poor’s gave the system a rating of AA with a positive outlook. One of the biggest projects is in Columbia and has a price tag of $140 million. It includes the construction of the Missouri Orthopedic Institute, the building of a new patient care tower and the relocation and construction of Children’s Hospital at Columbia Regional Hospital. The university system also plans to spend $3.4 million to open a continuing education facility in West St. Louis County.
“I can’t think of a better time for the university to explore new and creative funding mechanisms than now, and the Build America Bonds are an ideal fit for the university,” University of Missouri System President Gary Forsee said in a statement. “Through the federal stimulus package, the university is able to use debt financing for revenue-generating facilities such as student housing and a new patient care tower.”

VIRGINIA: Arlington has spent countless hours assessing and evaluating how to deal with its overcapacity schools, concentrated in the northern part of the county. Last year, then-Superintendent Robert G. Smith proposed a redistricting plan that would have moved more than 650 students and affected 19 of the system's 22 elementary schools. That plan met with fierce resistance from parents, and ultimately the School Board agreed to a stopgap measure that moved 53 students. The problem still looms as increasingly crowded schools spill into trailers and convert computer labs to classrooms.

ILLINOIS: A five-year statewide capital program will provide the needed money for critical local infrastructure including $400 million for the Chicago Public Schools (CPS) for school construction, under a bill signed by Governor Pat Quinn, Mayor Richard M. Daley said. The Mayor pointed out that although the City of Chicago has done a good job investing in its public schools, lack of state funding has hampered the city’s efforts to provide adequate schools across the CPS system. “All you have to do is look around Marshall High School and see that our children deserve a better learning environment,” said Mayor Daley. “These are the first State Capital dollars CPS has received since we received $100 million in 2003.”

During the past 14 years the City of Chicago has invested more than $5 billion in school construction and repair. In addition the City has built 34 new schools and renovated dozens of others. Fourteen new school buildings are slated to open in 2009 and 2010. With money received through this program, CPS will repair needed infrastructure inside the schools as well as renovate science labs and sport facilities. The program will also provide for energy efficient windows and doors as well as improvements to ensure that schools comply with the Americans with Disabilities Act.

MISSOURI: Dozens of Missouri school districts, including several in the St. Louis area, will receive $141 million in interest-free federal bonds to pay for construction projects. As part of the $787 billion American Recovery and Reinvestment Act, the Qualified School Construction Bond program absorbs costs that would otherwise be incurred by school districts, effectively allowing districts to borrow funds without paying interest. Bondholders are provided with federal tax credits in lieu of the interest that would ordinarily be paid by the school districts which issues them. [Includes complete list of school districts receiving stimulus bonds, and the amounts they are receiving.]

MISSOURI: Federal stimulus money keeps flowing the way of Columbia Public Schools. The school district has received $9.2 million in qualified school construction bonds under a program created by federal stimulus legislation. With the construction bonds program, the federal government pays tax credits to lenders who issue bonds to school districts, meaning the district only has to pay for the cost of issuing the bonds and the bond principal. Based on a 20-year bond, the district will save about $4 million in its debt services fund over that time from not paying interest on the bonds. “It’s a really good deal,” said Linda Quinley, the district’s business director. “Who gets to borrow for nothing?”

The money provides another example of how the school district has benefited from stimulus money. The federal money also gives the Columbia Board of Education several options with its debt services fund, Quinley said. The board could decide to issue more debt or it could decide to pay other debt down at a quicker pace because more money will be available to the debt services fund. The board also could leave the debt services fund balance alone for future use. “It gives us some comfort room in the debt services fund,” Quinley said.

Like other stimulus funds, the funds come strapped with deadlines. The bonds must be issued by Dec. 31. The district has to spend the money by 36 months of the bond issuance. Ten percent of the total bond, or about $900,000, has to be committed in a contract within six months of the bond issuance.

MISSOURI: Federal stimulus money keeps flowing the way of Columbia Public Schools. The school district has received $9.2 million in qualified school construction bonds under a program created by federal stimulus legislation. With the construction bonds program, the federal government pays tax credits to lenders who issue bonds to school districts, meaning the district only has to pay for the cost of issuing the bonds and the bond principal. Based on a 20-year bond, the district will save about $4 million in its debt services fund over that time from not paying interest on the bonds. “It’s a really good deal,” said Linda Quinley, the district’s business director. “Who gets to borrow for nothing?”

The money provides another example of how the school district has benefited from stimulus money. The federal money also gives the Columbia Board of Education several options with its debt services fund, Quinley said. The board could decide to issue more debt or it could decide to pay other debt down at a quicker pace because more money will be available to the debt services fund. The board also could leave the debt services fund balance alone for future use. “It gives us some comfort room in the debt services fund,” Quinley said.

Like other stimulus funds, the funds come strapped with deadlines. The bonds must be issued by Dec. 31. The district has to spend the money by 36 months of the bond issuance. Ten percent of the total bond, or about $900,000, has to be committed in a contract within six months of the bond issuance.

MISSOURI: Funding for the Seneca R-7 School District construction project got a little boost this week from federal stimulus funds. More than half of the project will be financed by no interest bonds, allowing the school district to pay off the majority of their note faster, therefore saving money. Superintendent Rick Cook said the interest free bonds will save taxpayers about $2.5 million. The district secured $6.115 million in interest-free school bonds out of the $9.985 million project. “These bonds are 15-year bonds,” Cook said. “Of course, when you’re only paying principal you’re going to pay them off quicker. When you looked at the whole scheme of the whole project, if we just did regular obligation bonds that would have cost the taxpayers about $15 million over a 20-year period and these school construction bonds, they’re over a 15-year period and it will be somewhere around $12.5 million is what the taxpayers will pay – $12 to $12.5 million, that’s what we estimate.” The remaining $3.869 million will be Build America bonds — also from the stimulus funding — with a discount on the interest. “They give us a rebate of 35 percent on our interest,” Cook said. Taxpayers will see an 85-cent levy increase, but after the 15-year school bonds are paid off, the amount should drop. The Build America bonds will be issued for 20 years.

FEMA funds are tied to almost $1.5 million of the project. The district has verbal FEMA approval, but Cook said they are still waiting for the final stamp of approval before they can bid the project and begin construction. The bonds themselves will be sold in the next few weeks through Wells Fargo. Voters approved the levy in November, but the district started planning for the expansion in 2007. Once the 52,800-square-foot intermediate building goes up and the high school gets its 33,800-square-foot expansion, Cook said the district will be finished with major building projects.

MISSOURI: The school construction bond program that looked so golden for Springfield just weeks ago has lost some of its luster. The state Department of Elementary and Secondary Education has fixed a $15 million cap on the amount of interest-free bond money school districts can apply for through the Qualified School Construction Bond program, created by the federal stimulus act to boost the economy. The cap will likely mean a more equitable distribution of the funds available to a greater number of districts -- but probably fewer interest-free dollars for the Springfield school district.

"Honestly, this is probably going to work against Springfield," said Greg Bricker, the district's investment banker and executive vice president of George K. Baum & Company. "It will still be a meaningful amount of interest-free dollars, but it could be much less than what we were originally expecting." June 12 was the bond program's last deadline for the 2009 disbursement; the next deadline likely will be sometime next summer. DESE officials initially said the $141 million would be allocated by dividing the amount available -- $141 million -- by the amount of bonds applied for: $305 million as of June 12. Under that plan, districts that passed bonds last November and April would not have had to pay interest on about 46 percent of the total amounts of their bonds. But that was changed, Bricker said, after it became clear that larger school districts -- capable of passing more sizable bonds -- would be raking in the majority of the state's interest-free bonds. Now, even if districts pass larger bonds, only up to $15 million is available for the pro-rated disbursement. Under Bricker's guidance, Springfield school officials were assuming 20 percent of a possible $50 million bond issue -- $10 million -- to be interest-free through the QSCB program. But the cap could mean the district would only get interest-free bonds for about 20 percent of $15 million -- instead of the same percentage of $50 million.

MONTANA: The Choteau school district has received a $77,958 federal stimulus grant to be used for three different energy-conservation projects in the elementary and high school buildings. Superintendent Kevin St. John said the state Department of Commerce in a letter dated June 29 notified school officials of the grant. The school had applied for grant funding for four projects, and received money to do three. St. John said the grant funds, which must be expended by Sept. 30, will be used to replace all remaining single-pane windows in the elementary school with double-pane, energy efficient windows; to replace the fluorescent lighting in the elementary school and the high school vocational-agriculture and wood shop with energy-efficient lighting; and to replace the doors on the west and east entrances to the elementary school with lighter, easier to open and close, energy-efficient doors.

The school had also requested funds to remove an older boiler in the elementary school that heats the three end classrooms in the west wing and to replace the boiler with in-room heaters. St. John said more federal stimulus funding for “deferred maintenance” projects is coming available and the school will be applying for various projects. He said the state has said that the district could receive up to $23,000 in the high school and $40,000 in the elementary school in these funds, which can be spent up to fall of 2010. Some projects that the board should be thinking about include: chip sealing the school parking lots, placing the three skylights (which are a constant source of leakage of heat out and water in) in the high school library, or removing the remaining asbestos-containing floor tile from 15 elementary school classrooms and replacing that tile with new, asbestos-free tile. “I think it would be a huge improvement for the elementary if we could get those classrooms done,” St. John said.

NEVADA: Lyon County School District should have more options for its bond sales as part of the American Recovery and Reinvestment Act of 2009 created the Build America Bond program, which makes taxable bonds an option besides just non-taxable bonds. This program authorizes state and local governments to issue Build America Bonds (BAB) as taxable bonds in 2009 and 2010 to finance any capital expenditures for which otherwise they would only be able to issue non-taxable governmental bonds.

The program provides a subsidy to governments from the federal government (Treasury Department) on a portion of the taxable bonds borrowing costs, equal to 35 percent of the total coupon interest paid to investors, or a 35 percent subsidy on the interest paid on the bonds in a particular year (equal to 35 percent of the taxable borrowing cost). It is intended to assist state and local governments in financing capital projects at lower borrowing costs, thus to stimulate the economy and create jobs. This provides more options than in the ailing tax-exempt bond market, attracting a broader group of investors. Johnson said if the district was doing the usual tax-exempt bonds, it could get an interest rate on the bonds of 5.1 to 3.2 percent, while the tax rate on the BABs would be 4.25 percent to start, with an estimated savings over 20 years of $3 million. The Board of Commissioners last month approved a resolution to sell bonds to fund the construction of a new intermediate school in Fernley, with the bond sale set for July 8, and to close on July 23.

Associate Superintendent Keith Savage noted the bond sale was for $21.5 million, which wouldn't cover all the costs for the new school, including furnishing it and other ancillary costs. The school district on the bond sale was using a state guarantee to ensure a better bond rating but that only allowed a maximum of a $21.5 million Johnson said by next spring the LCSD should be able to issue another $3-3.5 million which would be plenty to finish off total costs for the school. Savage was asked about the planned adjacent elementary school and he said the intermediate project would include the site preparation for both schools, including a pad for the elementary school, utility work (utility lines stubbed out for elementary school) and fields for both. Due to the economy, public entities have seen lowering end fund balances, which affect their credit ratings and thus bond ratings, Johnson said. He expected Build America Bonds program to impact those responding to the bond sale.

NATIONAL: U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, today introduced legislation that will make college dramatically more affordable by investing billions of dollars in additional student aid – and at no new cost to taxpayers. The legislation, the Student Aid and Fiscal Responsibility Act of 2009, will generate almost $100 billion in savings over the next ten years that will be used to boost Pell Grant scholarships, keep interest rates on federal loans affordable, create a more reliable and effective financial aid system for families, and enact President Obama’s key education priorities.

[The legislation includes funding for facilities. It helps community colleges modernize, renovate and repair their facilities by authorizing $1 billion for fiscal year 2010, and ensures that funding is used for facilities that are primarily used for instruction, research, or student housing. It provides every child with access to a world-class learning environment by providing school districts with funds for school modernization, renovation, and repair projects that will create healthier, safer, and more energy-efficient teaching and learning climates.]

NORTH CAROLINA: The Davidson County Board of Commissioners granted requests by three public school systems to apply for federal school construction bonds to cover needed repairs and updates but are concerned the bonds will not sell in a down economy. At Monday’s meeting, Assistant County Manager Zeb Hanner told commissioners Thomasville City Schools, Lexington City Schools and Davidson County Schools contacted the county about applying for the U.S. Qualified School Construction Bonds, part of the American Recovery Reinvestment Act of 2009. The N.C. Department of Public Instruction is administrating the federal bonds to local school systems. The NCDPI set the application deadline for July 31, but Hanner said limited information about the bonds was provided to the county. Based on estimates provided by NCDPI, Lexington and Thomasville schools are eligible for $1.2 million each, while the county schools are eligible for $2.6 million. State officials will review and approve the school bond applications. But before the bonds are sold, the applying county must go through the standard bond process before taking on the debt, including gaining approval from the N.C. Local Government Commission and offering purchase of the bond to investors.

Hanner gave commissioners a list of projects the three school systems indicated bond money could fund. Lexington City Schools planned to use bond money to renovate Lexington Middle School’s vocation lab to classrooms and build an addition to the Pickett School Administration building. Thomasville City Schools requested bond funds for a new chiller at Thomasville Middle School and to remodel the Alternative Learning Center. Three other requests were put in to replace the roof on Thomasville High School’s social studies building and cafeteria. Davidson County Schools Superintendent Dr. Fred Mock talked about the county school system’s proposals to replace roofs at Welcome and Midway elementary schools and Stoner-Thomas School — which he said leaked and been patched for years.

The NCDPI offers the bonds as “low or no interest” thanks to special conditions provided by the government as part of the federal stimulus package. The county would offer sale of the bonds to banks, companies and private investors. Those who bought shares would receive tax breaks from the government in lieu of interest. The projected result is that counties applying for the bonds on behalf of local school systems would have 12 to 15 years to pay the debit at or slightly above the principal amount. Hanner said it is a good plan in theory but the slow economy has scared off all but the investors who are in good financial shape.If the bonds did sell, there comes the issue of the county paying back the debt.

NORTH CAROLINA: The Henderson County School Board will seek low-interest loans through the federal stimulus program to pay for $4 million in school construction or repairs. In the 2009-10 budget, the Henderson County Board of Commissioners budgeted $4 million for school maintenance. The school board authorized completing applications for two interest-free loans to finance the $4 million in maintenance. The two loan programs have different requirements, so the board directed staff to determine which loan fits best for which projects. If the interest-free loans are not approved, the school board still can get financing through traditional lending sources. The board approved a $4.8 million list of projects and directed staff to pare the spending to $4 million.

The two loans are Qualified Zone Academy Bonds and Qualified School Construction Bonds. The first requires a 10 percent match from a local business. The latter does not require a match, but only finances between $500,000 and $2 million. County Finance Director Carey McLelland said that the process for receiving funds through the programs is challenging, especially the Qualified School Construction Bonds. The county has to put the projects out to bid, then apply for the loan and forward the application to the Local Government Commission. Once approved by the commission, McLelland said he will have to find a bank to loan the money at zero interest. Banks get tax credits in exchange for offering the loans. "I don't know what the market for these is," McLelland said. The entire process for the Qualified School Construction Bond loan must be completed by Dec. 31, while the county has two years to spend the Qualified Zone Academy bonds. "They are good deals, if you can find the proper project to match them with," McLelland said.

NATIONAL: At the start of my administration I set a goal for America: by 2020, this nation will once again have the highest proportion of college graduates in the world.
Today, I am announcing the most significant down payment yet on reaching this goal in the next ten years. It’s called the American Graduation Initiative. It will reform and strengthen community colleges from coast to coast so that they get the resources students and schools need – and the results workers and businesses demand. Through this plan, we seek to help an additional five million Americans earn degrees and certificates in the next decade.

We're going to back $10 billion in loans to renovate and rebuild college classrooms and buildings all across the country. All too often, community colleges are treated like the stepchild of the higher education system; they're an afterthought, if they're thought of at all. And that means schools are often years behind in the facilities they provide, which means, in a 21st century economy, they're years behind in the education they can offer. That's a mistake and it's one that we'll help to correct. Through this fund, schools will have the chance to borrow at a more affordable rate to modernize facilities, and they'll be building on the funds in the recovery plan that are already helping to renovate schools, including community colleges all across the country. And by the way, not only does this improve the schools and the training that they're providing, guess what? You also have to hire some workers and some tradesmen and women to do the work on those schools.

NATIONAL: The United States Department of Education is beefing up support for school safety and security programs. ED this week launched $26 million in emergency management grants, which are being awarded to 108 school districts; the department has also announced $32.8 million in safety and health grants. According to ED, the Readiness and Emergency Management for Schools (REMS) discretionary grants, will be targeted toward improving the emergency management plans of districts in 34 states. Funds will be used for improving emergency management plans in the 108 districts that received the awards. According to ED, "In addition to addressing the four phases of emergency management, plans must commit school districts to coordinate with officials in law enforcement, local government, public safety, public health and mental health; train school officials in emergency management; and provide a method for communicating emergency and reunification procedures to parents and guardians. Projects should support the implementation of the National Incident Management System (NIMS) and include plans designed to prepare districts for infectious disease outbreaks and take into consideration districts' special needs populations."
"The safety of kids is our number one priority," said Secretary of Education Arne Duncan in a statement released this week. "In order for children to learn, they have to feel safe. It's our responsibility to help schools create safe learning environments for students. These grants will support that effort."
Awards for individual districts ranged from about $53,000 to more than $724,000.

CALIFORNIA: San Mateo Union High School District leaders are looking to take advantage of a poor construction market and exploring financial strategies to expand on existing improvement projects or embark on new ones. One of those projects is to increase the size of the planned new theater at Aragon High School, which could add $500,000 to $600,000 to the cost, according to the district. "It's a great time to do construction" because of the lower cost of labor and materials than in years past, said Elizabeth McManus, the district's associate superintendent of business services. The district is checking to see if it "can afford to expand (on projects) with the market the way it is now."

Currently, the plan at Aragon High calls for a 24,000-square-foot, 600-seat theater at a cost of $12.7 million, the district said. But the school has asked that another 2,800 square feet be added to the design for a classroom and dance space. The district could draw a bid for the expanded project that's favorable given the current market, McManus said. The project is part of the $298 million Measure M bond, which voters passed in 2006.

The district is also looking into various financing tools "to lower the cost of borrowing associated with capital-improvement programs," the report said. These tools are part of the federal economic stimulus package and include possibly issuing "bond anticipation notes," which would help generate $1.2 million in interest income for Measure M projects, the report said. That additional revenue could go toward the theater project or other improvement plans, Trustee Stephen Rogers said: "We would have to figure out what the priorities are." Trustees are also scheduled to consider applying for a new tax-credit program that's another part of the federal stimulus package. The Qualified School Construction Bond program provides tax credits in lieu of interest to lenders who issue bonds to eligible districts, the report said. If San Mateo Union qualifies, McManus said, the district "would save taxpayers a tremendous amount of money on Measure M projects." "They won't pay for interest expense, just the principal," she said.

CALIFORNIA: San Mateo Union High School District leaders are looking to take advantage of a poor construction market and exploring financial strategies to expand on existing improvement projects or embark on new ones. One of those projects is to increase the size of the planned new theater at Aragon High School, which could add $500,000 to $600,000 to the cost, according to the district. "It's a great time to do construction" because of the lower cost of labor and materials than in years past, said Elizabeth McManus, the district's associate superintendent of business services. The district is checking to see if it "can afford to expand (on projects) with the market the way it is now."

Currently, the plan at Aragon High calls for a 24,000-square-foot, 600-seat theater at a cost of $12.7 million, the district said. But the school has asked that another 2,800 square feet be added to the design for a classroom and dance space. The district could draw a bid for the expanded project that's favorable given the current market, McManus said. The project is part of the $298 million Measure M bond, which voters passed in 2006.

The district is also looking into various financing tools "to lower the cost of borrowing associated with capital-improvement programs," the report said. These tools are part of the federal economic stimulus package and include possibly issuing "bond anticipation notes," which would help generate $1.2 million in interest income for Measure M projects, the report said. That additional revenue could go toward the theater project or other improvement plans, Trustee Stephen Rogers said: "We would have to figure out what the priorities are." Trustees are also scheduled to consider applying for a new tax-credit program that's another part of the federal stimulus package. The Qualified School Construction Bond program provides tax credits in lieu of interest to lenders who issue bonds to eligible districts, the report said. If San Mateo Union qualifies, McManus said, the district "would save taxpayers a tremendous amount of money on Measure M projects." "They won't pay for interest expense, just the principal," she said.

NATIONAL: The American Council for an Energy-Efficient Economy released a spreadsheet calculator that will estimate the number of jobs likely to be created by state or municipal energy efficiency projects that are funded by the federal government's American Recovery and Reinvestment Act (ARRA), commonly known as the stimulus program. The ACEEE developed the calculator to help officials estimate the economic benefits that a proposed project will create. The tool can be used when states or municipalities are applying for energy efficiency conservation block grants, state energy programs, weatherization assistance, or any of the other stimulus-eligible projects.
"What we have here is a jobs calculator that a variety of parties can use to estimate the economic impacts on net job creation, including well-paying manufacturing and industrial jobs," stated Dr. Neal Elliott, Director of ACEEE's Industrial Program.

The ACEEE has developed a wide range of tools and resources aimed at harnessing the potential of the stimulus bill. The jobs calculator adds to this list by including inputs that are specifically designed to analyze stimulus spending, including variables for the level of energy savings, the amount borrowed, and the period over which investments can occur. These variables make for a high level of realism in projections as well as building in flexibility sufficient to be applied to a wide variety of projects. The calculator, as well as a user's guide and the rest of ACEEE's stimulus resources, is available online at http://www.aceee.org/energy/national/recovery.htm.

MASSACHUSETTS: Five months after severing ties with another developer, Winthrop recently tapped an area nonprofit corporation to convert the former A.W. Dalrymple School building into senior housing. The nonprofit, which is affiliated with the for-profit East Boston Community Development Corp., submitted the highest of three bids for the property. It plans to restore the 89-year-old brick building and convert it to 27 units of affordably priced rental housing for people 62 and older.

The Dalrymple School was built in 1920 and opened in 1921 to replace the Almont Street School, a wooden building that burned in 1920. Originally known as the Highlands School, the grammar school was built on the site of the Leighton House, a summer resort, according to John Vitagliano, a Winthrop resident and consultant to EBCDC who is serving as the firm’s manager for the Dalrymple project. In 1973, the school was renamed after Arthur W. Dalrymple, who had been a popular Winthrop teacher and later the town’s school superintendent for 15 years until his retirement that year. He died in 1987. The town declared the building surplus in 2004 following the opening of the Gorman School. The three-story Dalrymple building has been vacant since. Prior to the 2007 request for proposals, the town adopted zoning rules that allowed multi-unit residential development of the site.

Vitagliano said when the town first sought proposals for the site, the organization, one of whose missions is developing affordable housing, saw it as an “an ideal fit." “We specialize in converting older vacant school buildings into affordable housing,’’ said Vitagliano, noting that the corporation has carried out five such projects in Boston. “We just fall in love with these buildings because they end up preserving the history of the neighborhood and the community around them," said Albert Caldarelli, president and chief executive officer of EBCDC. “And they adapt so well to housing because of the large rooms and ceilings."
Vitagliano said in addition to meeting a local housing need, the project would be a financial benefit for the town, providing an estimated $30,000 a year in local taxes, on top of the one-time purchase and development payment. If all goes well, construction would begin in the spring of 2010 and take about a year to complete.

WEST VIRGINIA: The West Virginia School Building Authority entered the bond market on Thursday. A rather unremarkable fact, perhaps, except that last year the bond market choked up and nearly shut down during the economic downturn. But in a deal signed Thursday afternoon with Guggenheim Partners, LLC, an international financial services company, the state will have $30 million to spend for school repairs starting July 23. The money will fund renovations, roofing projects and new heating, ventilating and air conditioning units at 38 schools across the state. But the deal is more than that. The state's move into the market is due in part to financial wizardry in the massive federal stimulus package passed this spring. The deal is also a key local test of the Obama administration's $787 billion spending plan, formally known as the American Recovery and Reinvestment Act.

The first test of the stimulus package is whether or not it does what it says it will: stimulate the economy by creating jobs. Mark Manchin, the building authority's executive director, said contracts have already been signed so that construction can begin immediately on all the repair projects once the bond money arrives in late-July. He said that by mid-August, people would be working as a result of the deal. "You'll see people on roofs around the state of West Virginia within a week, 10 days of that," Manchin said. The state, like states across the country, is likely to be getting a good deal. Both labor and material costs are down because of weak demand.

A second test will be of the way the bonds are funded, which is through an innovative financial arrangement. Typically bonds work like car or home loans. They require someone who wants money for something now - like a new school - to agree to pay interest on top of what they were loaned. That interest ends up costing them a lot more money then if they could have just bought everything outright. But the bonding capacity being used by the building authority takes advantage of a part of the stimulus package that uses the federal tax code to entice investors like Guggenheim to put money into public projects. The company is being given a federal tax credit for not charging the state interest. So instead of collecting interest from West Virginia, Guggenheim will collect tax credits. This encourages investors to loan money. It also makes it easier for states to get a good deal on their bonds because the interest on a multi-million bond can itself be millions. "This is the cheapest money the School Building Authority has ever had the opportunity to work with schools," Manchin said.

It has taken awhile for these new arrangements, called qualified school construction bonds, to take off. So far, West Virginia appears to be the first state to use the new bonding capacity, though several municipal school districts across the country have entered into similar deals. Some legislatures across the country even had to change laws to allow school districts to take advantage of the stimulus package arrangements, said Judy Marks, associate director of the National Clearinghouse for Educational Facilities, a project of the U.S. Dept. of Education. But Marks said the school construction bonds and several other tax-credit bonds included in the stimulus package are changing the face of the municipal bond market. "It seems to be a win-win for everybody," Marks said.

Manchin said the state was able to move quickly because last year the Legislature changed the law so the building authority could back bonds with excess lottery revenue. Still, the financial arrangement is different from what some state officials had originally expected. In the early drafts of the stimulus package was about $100 million in money for West Virginia school construction, with few strings attached. Then the U.S. Senate balked and took the money out. Several members of Congress, including Sen. Jay Rockefeller, D-W.Va., fought to include school construction bonds, which use a financing arrangement modeled after a piece of legislation the senator has long touted, the America's Better Classroom Act. Rockefeller said he was glad to see West Virginia taking advantage of the bonds. "I am thrilled that West Virginia will very soon begin to benefit from the school construction bonds I fought to include in the Recovery Act - and it's terrific news that ours is the first state to put this funding in to action," Rockefeller said. "Safe, modern, energy-efficient schools will not only better prepare our students for the future, but also generate thousands of badly-needed construction jobs along the way. That's a surefire recipe for new and long-term economic growth."

NATIONAL: More than $32.8 million in grants have been awarded to 18 states and the District of Columbia as part of a joint effort by the U.S. Departments of Education, Health and Human Services, and Justice to support schools in creating safer and healthier learning environments. The highly competitive Safe Schools/Healthy Students Initiative attracted 422 grant applications nationally. Under the initiative, school districts, in partnership with local public mental-health agencies, law-enforcement and juvenile justice entities, must implement a comprehensive, community-wide plan.

“Every child in America deserves a safe and healthy school environment, and it’s our job as educators, parents and community members to ensure that happens,” U.S. Secretary of Education Arne Duncan said. “The Safe Schools/Healthy Students grants will provide students with access to services and programs that promote healthy development, personally and academically.”

MISSISSIPPI: Jackson Public Schools could claim more than $15 million in federally subsidized bonds each year for two years - or lose access to the interest-free loans if it fails to act quickly enough. So far, the district has not made a decision on whether to request the bonds. JPS is one of 100 school districts across the country to qualify for a share of $4.4 billion in Qualified School Construction Bonds. The districts chosen have the largest number of 5- to 17-year-olds who qualify for free or reduced lunches, a federal poverty indicator. The bonds can be used for new construction or building maintenance, but the money has to be repaid. If JPS chooses not to use its bond allocation, the money "can go into the state pot and be allocated to other districts," said Martez Hill, chief deputy superintendent of policy and operations for the state Department of Education.

JPS Superintendent Lonnie Edwards Sr. has made the school board aware of the bonding authority offered under the American Recovery and Reinvestment Act, but no specific recommendation has gone before the board, said Michael Thomas, JPS deputy superintendent for operations. The board also has given no indication of whether the district will take advantage of the bonds, he said. "We're still looking at what options we might have for the use of those dollars and looking long-term at the requirements for retiring the debt that goes along with receiving those funds," Thomas said. "It's a unique opportunity because the way the legislation is structured, the dollars appear to be interest free," Thomas said. That means there is an opportunity for the district to borrow $15 million in 2009 and again in 2010.

Some other school districts that have taken advantage of the bonding authority have been given between 14 and 16 years to repay the bonds, Thomas said. The pool of money for the 100 school districts is separate from another $11 billion in Qualified School Construction Bonds divvied among the states.
As of July 7, 57 of Mississippi's 152 school districts had requested $145.8 million in bonds - much more than the $132 million allocated to the state, according to the state Department of Education. In the tri-county area, Madison County schools applied for a $3 million bond to be used on the new construction of a high school for about 800 Gluckstadt-area students, according to the Department of Education.
Those Qualified School Construction Bonds are being approved on a first-come, first-served basis. The bond amounts range from $100,000 to $3 million.

NATIONAL: Twenty six colleges and universities will be able to develop and strengthen their emergency management plans as a result of more than $9.7 million in Emergency Management for Higher Education discretionary grants awarded by the U.S. Department of Education, with assistance from the U.S. Department of Health and Human Services and the Substance Abuse and Mental Health Services Administration (SAMHSA).
Each plan, as specified in the grant application, must address all four phases of emergency management: Prevention-Mitigation, Preparedness, Response, and Recovery. Funds may be used to update existing emergency management plans, conduct vulnerability assessments of campus facilities, provide training to campus staff and students, organize tabletop exercises or large-scale drills, collaborate with local first responders and community partners, and develop or enhance plans for preventing violence on campus by assessing and addressing the mental health needs of students who may be at risk of causing campus violence.

The grants are housed within the Department’s Office of Safe and Drug-Free Schools, which supports efforts to create safe schools, respond to crises, prevent drug and alcohol abuse, ensure the health and well being of students, and teach students good citizenship and character. The office also coordinates the Department’s efforts in these areas with other federal agencies.

WEST VIRGINIA: Gov. Joe Manchin's office says the state has issued $30 million worth of school construction bonds. The governor says in a release issued Thursday that the bonds will pay for various projects, including some new buildings, for 38 schools in 30 counties. The School Building Authority says the bonds are a new type authorized by the federal economic stimulus package. Officially they're called Qualified School Construction Bonds and the agency says they provide tax credits to holders rather than tax-exempt interest.

NEW YORK: What would happen if you stripped a school of its metal detectors, reduced the presence of police officers and gave principals more power in disciplining students? Learning environments would be safe and graduation rates would be high, the New York Civil Liberties Union argued in a recently released study. The group examined six public high schools in Brooklyn, Manhattan and the Bronx that serve large numbers of at-risk children and make use of alternative ways of enforcing school safety. Using data analyzed by the Annenberg Institute for School Reform at Brown University, the report found that the six schools showed high graduation rates, low crime and positive reviews from students, teachers and administrators. “Treating students with dignity and respect is the best approach to producing good, safe schools,” said Donna Lieberman, executive director of the civil liberties union, at a news conference at the Julia Richman Education Complex on the Upper East Side, one of the schools participating in the study.

The city’s Department of Education, however, disputed one of the report’s crucial findings — that graduation rates were higher at schools that made use of alternative means of policing than at schools that relied on metal detectors. At four of the schools, education officials noted, graduates rates have fallen since 2006. Margie Feinberg, a spokeswoman for the education department, said the report was still being reviewed to examine the validity of its other findings. She said education officials believed in using discipline as an opportunity to educate students, not just to punish. But, she added, “We will continue to use all tools available to us.”

The report could not definitively link the alternative school safety measures to high academic achievement. The Julia Richman Education Complex, for instance, has undergone several other changes aimed at increasing student performance in recent years, including breaking into four small, autonomous schools with the hope of fostering closer relations between students and teachers. Ann Cook, who leads the Urban Academy High School at Julia Richman, attributed the school’s success to a close partnership between administrators and the school safety agent. “The idea is dialogue,” she said, “not confrontation.”

FLORIDA: The federal government's economic stimulus plan could give the Pasco County School District the financial boost it needs to build a new administration building that has been on the backburner the last few years. Under the plan, the district is eligible to issue $11 million in qualified school construction bonds this year and next. The bonds are interest free and the principal doesn't have to be paid back for 14 years. Investors receive tax credits instead of interest on the bonds. If approved by the school board, the project planned for district headquarters on Gator Lane would include a separate building for the Land O' Lakes High culinary arts academy, where students could earn certification and college credit as they train for jobs in the food industry. The total price would be about $20 million. Officials said preference would be given to Tampa Bay area contractors and subcontractors.

Finance and human resources would be among the departments that would be housed in the new administration building, which would include a school board meeting room. The district has planned a new administration building since before Fiorentino was elected in 2004, and had saved $10 million toward that goal. That money now could go toward other needs, Fiorentino said. The district already has a site plan created in 2007 and a permit from the Southwest Florida Water Management District. Both could be modified to include the culinary arts facility, said John Petrashek, the district's director of new construction. He said this is a good time to act because construction costs have dropped.

NEW JERSEY: Newark City Schools' $140 million construction project is more than half complete, and the district is gearing up for the largest part -- the high school renovation -- in early 2010. But first, Ben Franklin Elementary School and the auxiliary high school gym will wrap up by the fall, with work on the new Heritage Middle School and renovation of John Clem Elementary School also beginning this year. The project, for which the state is paying 51 percent of the cost, was approved by Newark voters in 2004 and could be finished sometime in 2012. During construction, the district has shrunk from 14 schools to 11 for 2009-10 and has opened three new elementary schools, one new middle school and a renovated Wilson Middle School.

NEW JERSEY: Newark City Schools' $140 million construction project is more than half complete, and the district is gearing up for the largest part -- the high school renovation -- in early 2010. But first, Ben Franklin Elementary School and the auxiliary high school gym will wrap up by the fall, with work on the new Heritage Middle School and renovation of John Clem Elementary School also beginning this year. The project, for which the state is paying 51 percent of the cost, was approved by Newark voters in 2004 and could be finished sometime in 2012. During construction, the district has shrunk from 14 schools to 11 for 2009-10 and has opened three new elementary schools, one new middle school and a renovated Wilson Middle School.

LOUISIANA: Bad news for the economy became good news for Ascension Parish schools when bids on their most recent project, a new primary school for Orange Grove subdivision in Sorrento, came back, a school system official said. Chad Lynch, director of planning and construction for the school system, said the low bid for the project, $9.798 million, came in $4 million under the projected $13,672,505 budgeted for the project. The school in Orange Grove subdivision development is among the last of the current wave of building projects funded by a 2005 bond initiative, Lynch said.

“We expected the cost to go up,” Lynch said of the Orange Grove project. In fact, the School Board voted to increase the original budget from just over $12 million to $13.7 million when construction costs steadily rose after hurricanes Katrina and Gustav, he said. Lynch said the school system has been using the same basic building plan for the last several school construction projects. “We’ve built this school for as low as $7 million — Duplessis (in 2002) — and as high as $13.3 million,” he said.Lynch credits the happy surprise on the Orange Grove school to the decline in the economy. “For a project like this, we’d typically have four or five bidders on the contract,” Lynch said. “For this project, we had 15. Contractors are going after projects they normally wouldn’t bid on. They’re struggling to get work,” he said.

CALIFORNIA: The Lake Tahoe Unified School district is ready to take advantage of federal stimulus dollars for its construction projects. The district plans to apply for a $25 million interest-free loan by Aug. 25 to alleviate potential cash-flow issues with the state matching funds, Superintendent Jim Tarwater said at the Tuesday LTUSD board meeting. Part of the American Recovery and Reinvestment Act 2009 is the Qualified School Construction Bond program, Tarwater said.
ARRA provides $22 billion nationwide for the program for this year and next. California's share is $2.7 billion, according to a statement from California State Superintendent of Public Instruction Jack O'Connell. Of the allocated amount, $582 million has already been directly allocated to the state's 11 largest school districts, another $700 million is available this year for other qualifying school districts, and $73 million is available for qualifying charter schools. The remaining $1.3 billion will be allocated in 2010. The bonds provide federal tax credits for bondholders in lieu of interest in order to significantly reduce an issuer's cost of borrowing, according to the QSCB parameters.

Tarwater said it's interest free money that will cover the $22.5 million in state matching funds the district is supposed to receive for its Measure G construction projects. This will alleviate potential cash flow concerns, he added. “Staying the course is paying off for us,” Tarwater said. Board member Larry Green said not all school are prepared like LTUSD to take advantage of federal dollars. “This is perfect for us because we have money coming in and projects going on,” Green said.

The $22.5 million also includes the joint use facility with the city, Tarwater said. The city and LTUSD applied for joint-use facility funds, and received $3.2 million from the state in matching funds. The money will be used to build a student union and community center at South Tahoe High School, Tarwater said. The first floor will have the multipurpose room and student union, and the second floor will have rooms for a community center, Tarwater said.

SOUTH CAROLINA: Fort Dorchester Elementary School's design works so well for faculty and students that Dorchester District 2 leaders will use a slightly modified version of it for a new school in the Oakbrook area. Fort Dorchester Elementary, with the capacity for about 950 students, opened in August 2003 in Wescott Plantation off of Dorchester Road. School board members liked Fort Dorchester's design better than two others they considered, district Superintendent Joe Pye said, and the school's principal "loves it just as it is."

Pye said he's negotiating now to purchase a piece of land in the Oakbrook area on which to build the new school. He can't say where the site is "until I sign on the dotted line." He expects that to happen in the next 60 days, he said. And he has a back-up site in mind if the deal he is negotiating falls through. The new school will draw students from Oakbrook and Fort Dorchester elementary schools, which are both overcrowded. Pye said this will mark the fourth time LS3P's elementary school design is used. Windsor Hill and Beech Hill elementary schools also used the design.

Eric Aichele, an architect at LS3P, said the design works for Dorchester 2 because it is larger than many elementary schools, and that's important in the rapidly growing suburban district. District leaders also like the layout; the pick-up and drop-off locations, which keep traffic moving smoothly; and the overall appearance of the building. Pye said the new school will have a distinct personality even though the district is using an existing design. From the air, it will look the same as Fort Dorchester Elementary, he said. But the walls inside the building can easily be moved to meet the needs of the new school community, he said. And, the color and building material on the front of the structure will be consistent with other buildings in the neighborhood.
The district is taking advantage of reduced construction costs in the current economy, Pye said. He said the new school will likely cost less than $15 million. He's not yet sure how much LS3P will be paid for the design, he said. Usually, an architectural firm is paid between 5 and 6 percent of the project's total cost, but the district will pay LS3P much less than that, he said. Pye said he expects construction to start in January. He expects the school to open in August 2011. Using the existing design will shorten construction time and "the community will get the biggest bang for the buck," Pye said.

CALIFORNIA: State Superintendent of Public Instruction Jack O'Connell encouraged school districts and charter schools to apply for more than $773 million in the Qualified School Construction Bond (QSCB) program. The new QSCB tax credit program is part of the American Recovery and Reinvestment Act (ARRA) of 2009. "QSCB will provide tax credits to school districts and charter schools for bond issuance that has the potential to jump start new construction and modernization projects throughout the state," said O'Connell. "While this program does not provide new money to school districts for construction, it allows them to more efficiently issue local authorized bonds. This will make local bond dollars go further to repair, renovate, and construct much-needed schools, as well as stimulate the economy and generate jobs."
QSCB provides federal income tax credits in lieu of interest to lenders who purchase bonds from eligible school districts and charter schools. The United States Treasury Department establishes state allocation limits and sets a tax-credit rate for QSCB that, on average, equals the amount of interest schools would ordinarily pay on debt. With the federal government covering most or all of the interest on the bonds, school districts and charter schools will receive a substantial benefit, because interest payments typically equal about 50 percent of the economic cost of a bond.

Applications from school districts are due by August 25, 2009 to the California Department of Education. Applications from charter schools will be handled by the California School Finance Authority within the State Treasurer's office. More information on the charter school application and deadline are forthcoming. Applicants should seek guidance from their own bond counsel and financial advisers before applying to the program and issuing debt. School districts may apply for QSCB at Qualified School Construction Bond (QSCB) - Facilities.

OHIO: Since January, the Loudonville-Perrysville school board and citizen groups have been studying the building aspects of new school district buildings through the Ohio School Facilities Commission. On Monday night, board members got a crash course in the financial side of the project. Building a new K-12 school as proposed would cost the school district $25.7 million in local funds.
A bond issue to finance the proposal would have to raise 9.6 mills for 28 years, said Michael G. Sudsina of Aurora, a financial consultant contracted by the school district to study the financial implications of the issue. Sudsina explained that two new financial plans, the Qualified School Construction Bond program and the Build America Bonds program, could substantially reduce the millage amount for a building issue.

"The QSCB comes out of the federal economic stimulus program and provides 0 percent bonds for school and energy-saving government projects for a 16-year period," Sudsina said. "So using these funds could reduce the millage by at least 2 or more points. "The Build America Bonds are private funds with a 6.5 to 7 percent interest rate, with 35 percent of the interest then refunded to the payee by the federal government to encourage building projects. Using these funds would lower the millage from 9.6 to 7.6 mills." A third instrument that could result in a significant millage savings, Sudsina said, "is a proposal by the Ohio Legislature to lengthen the payback period for school building projects from 28 years permitted now to 40, again lowering the millage rate. A combination of these three programs could get the millage rate down to as low as between 6 and 7 mills."
He cautioned the competition for the QSCB funds is fierce and he was not sure if there would be funds available for the L-P Schools for an election issue this fall. He was confident funds would be available next year.

The board asked Sudsina to prepare several bond issue scenarios, including running a property tax issue using the QSCB and the Build America bond programs, along with a property tax-income tax hybrid levy, with both a .25 percent income tax and .50 per cent income tax contribution. The board also passed a resolution to participate in the QSCB, should funds be available. Application for the different reduced-rate bond programs could result in a delay of a ballot issue for the building program from November of this year until a March, May or August 2010 date. "We have moved forward on this program to get the issue on the November 2009 ballot, but if it is to our advantage to delay the issue to get a more favorable bond rate, we can do that," Superintendent John Miller said. The deadline to place a bond issue on the November ballot is Aug. 20. at 4 p.m.

NATIONAL: The Obama administration hoped spending $787 billion in stimulus would jump-start the economy, build new schools and usher in an era of education reform. So far, government auditors say, many states are setting aside such grand plans and simply trying to stay afloat. The Government Accountability Office, in a report to be released Wednesday, says the stimulus is keeping teachers off the unemployment lines, helping states make greater Medicaid payments and providing a desperately needed cushion to state budgets. But investigators found repeated examples in which, either out of desperation or convenience, states favored short-term spending over long-term efforts such as education reform. In Flint, Mich., for example, new schools haven't been built in 30 years but the school superintendent told auditors that he would use federal money to cope with budget deficits rather than building new schools or paying for early childhood education.

President Barack Obama pitched the stimulus as more than just a lifeline to states. Yes, it would save teaching jobs, he said, but it would also lead to lasting education reform. Old schools would be replaced, new science labs would be constructed. "We can use a crisis and turn it into an opportunity," Obama said while promoting the stimulus in February. "Because if we use this moment to address some things that we probably should have been doing over the last 10, 15, 20 years, then when we emerge from the crisis, the economy is going to be that much stronger."

NEVADA: The Clark County School District made a frantic push to turn off every possible light, appliance and air conditioner at its hundreds of nine-month campuses, shutting them down entirely for the month of July. Such conservation efforts helped the district shave $9.4 million off its energy bill last year, up from $8 million in the prior year. This time around Energy Manager Dick Cuppett wants to trim the costs even further — by unplugging every appliance connected to an electrical outlet instead of just making sure they are turned off at the switch. Unplugging appliances, which use energy even when turned off, is expected to save the district another $250,000 over the summer, Cuppett told the Sun.

In October the district shared $700,000 in rebates with 307 schools that had trimmed energy costs by at least 10 percent over the prior year. The top “savers” were Helen Herr Elementary School and Woodbury Middle School, which each trimmed energy usage by more than 44 percent, and Foothill High School with a 34 percent reduction. None of the top three campuses had modernization work done that would have contributed to improved energy efficiency. The savings were the result of a combination of “all the little things everyone can be doing,” Cuppett said. In recent years the district has enacted regulations aimed at cutting energy costs. School vending machines, which cost the district an estimated $1.4 million a year to keep running, must have display lights disconnected. Many schools also switched to motion detectors and timers that automatically shut down the machines overnight or during vacation periods.

NORTH CAROLINA: As construction on Snow Creek Elementary School nears completion, the environmentally green initiatives being incorporated into the school become more evident. "Right now, I've been told that we're still scheduled to be the first green school in North Carolina (under the new criteria)," said Rick Sain, construction coordinator for Catawba County Schools.
The new criteria for schools has an increased emphasis on indoor environmental quality, better daylight, better acoustics and low-emitting materials, because young children are more susceptible to toxins, according to the U.S. Green Building Council. It also requires schools to have 10 hours of student curriculum per student per year, using the green aspects of the school as a teaching tool. The initial rating system was designed primarily for offices. In April 2007, the U.S. Green Building Council created a new rating system specifically for schools. "We're a little bit behind schedule, but the school should be ready for the staff to start moving things in by the end of July," Sain said.

Green items featured throughout the school include a sediment pond to treat storm water runoff, shade trees to keep the school cooler and large skylights in the lobby area to let in natural light. The classrooms feature more windows than are in many schools' classrooms, although not enough to qualify for green standards, Sain said. Every room in the building has automatic sensors to turn on the lights. In addition, each classroom is outfitted with light switches to control if the teacher wants all the lights off, on or turned to low. Motion detectors can activate the outside lighting of the school, as well. After hours, the inside of the building can be set to be completely dark, with lights only coming on when a door is opened, Sain said.
Another green initiative at Snow Creek Elementary includes controlling the building by an automation system, which will allow administrators to turn of the heating and air conditioning at the school at a set time. The water fountain's cold water also will be turned off at a set time, likely at 3 p.m., Sain said.

There's a timed override switch in the media center to override the shut-off of the heating and air conditioning for that room only. That's for use on evenings and weekends, if the room is used for functions, Sain said. On the staff toilets, the handle can be turned in different directions to use more or less water. All of the appliances in the cafeteria, as well as in the teaching kitchens, the computers and the staff printers are Energy Star appliances, Sain said. And the mechanical system is LEED standard, as well. In addition to making a school better for the environment, Sain said the school will be better for the school system's wallet. "The chief reason for LEED certification is to save money on energy costs over time," he said

MICHIGAN: Planning for a potential multimillion-dollar project to improve energy efficiency with new lighting, heating and other equipment is under way at Holton Public Schools. The school district has qualified for $4 million in federal low-interest bonds that would fund efficiency improvements. The bonds would be paid off with savings the district realizes through the energy investment. The district has not decided how many bonds it will sell, but is expected to use them to replace boilers and unit ventilators at the high school, and improve electronic control systems and lighting throughout the district, said Superintendent John Fazer. "The unit ventilators and the boilers have already outlived their life expectancy," Fazer said, explaining they are original to the building that was built in 1973.

The district recently learned it is eligible for Qualified Zone Academy Bonds from the U.S. Department of Education. The high school qualified for $2 million worth of bonds and the middle and elementary schools each qualified for $1 million. Most, if not all, of the interest on the bonds, which are available to low-income districts, is covered by the federal government through tax credits to financial institutions that hold the bonds.

The district has had studies performed to determine what types of savings can be achieved through various improvements. It has been "shovel ready" for two months, waiting for word on whether it qualified for the bonds, Fazer said. It applied for the bonds in December, and learned from the state education department June 16 it had qualified for them. District officials now are waiting to see exactly what the interest rate will be before deciding how much of them to issue, Fazer said. The bonds, which are paid off over 15 years, previously were interest free, but now the interest can be as high as 2 percent, he said. The school board is expected to vote on the scope of the project at its July 13 meeting.

NATIONAL: State and local governments are primarily issuing Build America Bonds, a new form of debt created by the economic stimulus plan, for public improvement projects, according to data released by the Municipal Securities Rulemaking Board. As of June 11, 45 percent of the taxable debt's proceeds have been earmarked for general public improvement projects, 30 percent have gone to transportation, and 16 percent to education. [For a complete list of colleges, universities, and school districts that have applied for these bonds as of June 11, see http://www.msrb.org/msrb1/Press/Release/MSRBBuildAmericaBondsReport.pdf ]

NATIONAL: State and local governments are primarily issuing Build America Bonds, a new form of debt created by the economic stimulus plan, for public improvement projects, according to data released by the Municipal Securities Rulemaking Board. As of June 11, 45 percent of the taxable debt's proceeds have been earmarked for general public improvement projects, 30 percent have gone to transportation, and 16 percent to education. [For a complete list of colleges, universities, and school districts that have applied for these bonds as of June 11, see http://www.msrb.org/msrb1/Press/Release/MSRBBuildAmericaBondsReport.pdf ]

WISCONSIN: A new program that allows school districts to borrow money interest-free has attracted requests for nearly six times the amount allocated to Wisconsin. Fifty-five districts submitted $550 million worth of requests to the state Department of Public Instruction last month for the funds authorized as part of the federal government's economic recovery plan. The state has authority to cover interest payments on a little less than $98.6 million of the school bonds, not counting a $72.1 million allocation made specifically for Milwaukee Public Schools. As part of the Qualified School Construction Bond program, the federal government provides tax credits to financial institutions holding districts' bonds and covers all the interest payments. A similar program, which covers the interest costs for borrowing to pay for school repairs and other costs in districts with large numbers of low-income students, has sufficient funding to cover state applications.

Predicting the onslaught, DPI officials have said they probably would cover only one-third of projects approved through referendums. They plan to give priority to projects focusing on early education, school health and safety, environmental conservation, and science, technology, engineering and mathematics - or STEM - efforts. The DPI also has said preference would be given to "shovel ready" projects, meaning those that have voter support from referendums or that can be done within existing school budgets. State approval would help the School Board decide when and whether to go forward with a referendum, he said.

Mukwonago schools business manager Darren Clark estimates that not having to pay 10 years of interest on the last portion of $15 million in referendum-approved maintenance work could save district taxpayers $1.6 million. No school district is better positioned to benefit from the new program than Milwaukee Public Schools. In fact, the $72.1 million that the federal government had allocated for MPS in school construction bonds may be more than it will end up issuing. Whatever MPS does not use can be awarded to other state school systems. The Milwaukee School Board has approved $53.1 million for maintenance projects as well as some school-specific allocations billed as "curriculum enhancement." Some of the borrowed cash can free up money to be used for operational expenses, including pension obligations.
The City of Milwaukee, which issues bonds for the School District, will have final say on the total amount. City budget director Mark Nicolini said the city has to ensure the added debt doesn't affect its bond rating, which could drive up interest rates on other borrowing, and won't require tax increases. MPS crafted its plan so it would pay off the debt using existing funding sources over the next 16 years, said Ron Vavrik, the school system's director of finance.

OHIO: A resolution to apply for Qualified School Construction Bonds has been approved by the Eastwood school board. State law allows districts to sell bonds for projects that improve the energy efficiency of buildings, said Brent Welker, Eastwood superintendent, with the bonds repaid over years from energy savings. “These are zero percent interest bonds that benefit the buyer by giving them a dollar for dollar tax credit,” he said. “These bonds were made possible through the federal government as part of the stimulus plan.” The Eastwood administration has been working with a Cleveland-area firm to identify energy-saving technologies that can be paid for by the resulting lower costs. “At some point in the next couple of weeks the board will hear about their plans and take action if appropriate to submit the plan to the Ohio School Facilities Commission which oversees the program,” Welker said.

The Qualified School Construction Bonds the district intends to use for an energy-saving project are also available for the construction of new facilities – which leaves the door open for the district to again consider constructing a new elementary building through the OSFC program. Earlier this year, the Eastwood board opted to remove a 3.2-mill bond issue from the May ballot, citing poor economic conditions. The bond issue would have funded the local share of construction costs for a new building that would have housed kindergarten through the fifth grade. The balance would be paid by the OSFC. Had voters approved the issue, the school would have been constructed at the central campus. Welker said that blending the zero percent interest bonds and traditional bonds would lower the total cost of a building project. “We do not believe that there is enough money available to use zero percent interest bonds for the entire project and would be forced to blend them,” he said. “The second development is that there is a provision in the budget bill that would extend our (OSFC) funding offer to November at our same state share. Under the current law, we would become a lapsed district in August and our state share would begin to decrease.”
Another option, he said, is to extend the number of years for the bonds to mature. Typically, bonds for OSFC are issued for 28 years. Lengthening the number of years would reduce the millage, Welker said.

NORTH CAROLINA: Orange County Schools Board of Education members learned they may be able to complete a 40-year-old project with the use of federal stimulus funds. District Chief Operating Officer George McFarley said if all the circumstances fall into place, it may be possible to build C.W. Stanford Middle School the auditorium it was meant to have when the school opened in 1969. With the potential use of Qualified School Construction Bond Allocations for 2009 in the American Recovery and Reinvestment Act (ARRA), McFarley said the Orange County Board of Commissioners (BOCC) could request interest-free funds on behalf of the school district, something they pledged to do with Orange’s sister district to build a cultural arts wing for Carrboro High School. “The board was clear that its commitment was contingent upon the availability of federal interest-free monies,” he said. Board of Education members added the Stanford auditorium endeavor to a list of potential “shovel ready” capital projects at a February meeting. Other projects on the list included construction of an auxiliary gym and classroom wing addition at Cedar Ridge High School, bleacher renovation and baseball field light replacement at Orange High School and a fire alarm upgrade at New Hope Elementary School.

Back at the February meeting, the auditorium’s cost was estimated at $3.8 million. Now, McFarley said, the cost of construction could be much lower because of the recession. McFarley said the state has been given $400 million in state fiscal stabilization funds, and the district could receive as much as $2.6 million during the 2010 school year and nearly that much in 2011 — that is, depending on how much the state House appropriates to balance the budget.

NORTH CAROLINA: Local schools will benefit from zero- or low-interest bonds for construction, established as part of the federal stimulus package. Nash-Rocky Mount Public Schools and Edgecombe County Public Schools both have been allotted funds from the 2009 Qualified School Construction Bonds program. The program offers funds for the specific use of new construction, school rehabilitation or repair and land acquisition in conjunction with those projects. The state was issued $275,772,000 from the American Recovery and Reinvestment Act of 2009 to disperse to schools. Edgecombe Count schools were allocated $1,576,307.06. Nash-Rocky Mount schools were allocated $2,391,375.55.

In Nash-Rocky Mount schools, the money potentially could be used for two upcoming construction projects, Special Assistant for Auxiliary Services Mark Strickland said. He said that the people selling bonds will receive a tax credit in lieu of the interest money they’d typically receive. A zero-interest bond would be a “win-win” for the district, Strickland said. “It would just mean that we wouldn’t have to pay any interest, we’d just have to pay back the principal,” Strickland said. “In the end, there could be significant cost savings.” Edgecombe County schools Community Relations Director Diane LeFiles said the district has a long-range facilities plan that serves as a guide for decisions about construction and renovation projects. She said there are numerous projects to be completed, both large and small. “We have been keeping a close eye on the potential of access to construction money that may become available from the federal stimulus package,” LeFiles said. “We are ready to take advantage of any opportunity to improve the learning environment for Edgecombe students.” Districts have until July 31 to turn in a proposed spending plan to designate the funds — a process Strickland said was in progress for Nash-Rocky Mount schools. The funds have to be issued by Dec. 31 and spent within three years of the issue date. Districts receiving funds also have reporting requirements to make sure funds are being used appropriately.

A down economy is a prime time for school construction because firms are looking for work, and workers are looking for jobs, said N.C. Department of Public Instruction School Support Director Ben Matthews. He said the cost of materials also goes down because companies have it backed up and want to use it. “This is a great opportunity for schools to capitalize on an excellent funding source,” Matthews said. “Zero interest is a wonderful thing when you get a deal like that.”

WEST VIRGINIA: Fitch Ratings assigns an 'A' rating to the School Building Authority of West Virginia's (the authority) approximately $30 million excess lottery revenue bonds, series 2009A, expected to be offered through negotiation the week of July 20, 2009. Fitch has also affirmed the 'A' ratings on $102 million outstanding parity series 2008 bonds and approximately $222 million excess lottery revenue bonds issued by the West Virginia Economic Development Authority, which have a prior claim on the same revenue stream. The Rating Outlook is Stable.

The bonds are being issued as taxable qualified school construction bonds and are structured with one bullet maturity. Investors will receive a tax credit against their federal income tax liability at a rate determined by the U.S. Treasury in lieu of current interest payments. The authority will make mandatory sinking fund payments which will accumulate to pay principal when due.

MISSISSIPPI: Of Mississippi's 152 school districts, 22 have claimed a share of $132 million in federally subsidized bonds - interest-free money for new construction, building renovations and repairs. The Qualified School Construction Bonds are being approved on a first-come, first-served basis, said Martez Hill, chief deputy superintendent of policy and operations for the state Department of Education. Some $57.7 million has been claimed. None of the 22 school districts is in the tri-county area, according to a Department of Education list of applications. The bonds represent a portion of the money allocated to Mississippi through the American Recovery and Reinvestment Act. School districts use the bonds for construction or building maintenance in tough economic times, but the money has to be repaid. Bond amounts range from $200,000 to $3 million. The bonds will be awarded until the $132 million maximum is reached, Hill said. The state Board of Education OK'd the construction bond approval process, among other things, at a special meeting Tuesday. Districts must use the money within 120 days of approval, or it might be reallocated to another school district, according to the application. Districts have until Aug. 28 to apply for the bonds, but bonds will be awarded until the money runs out. Mississippi and 15 other states will be monitored by federal investigators as officials spend the stimulus funds over the next several years.

MICHIGAN: In wake of incidents like the Northern Illinois University and Virginia Tech shootings that occurred within the last two and a half years, University administrators are considering equipping classrooms with doors that lock from the inside. Physics Professor Keith Riles introduced the issue at the Senate Advisory Committee on University Affairs meeting last month and said that adding doorknobs that lock from the inside to University classrooms may help keep students and staff safe. Though Riles’s idea is currently not a concrete project, individuals from the Office of Facilities and Operations have been conducting research and collecting feedback to see if adding doors that lock from the inside would be beneficial to University classrooms.

Diane Brown, Department of Public Safety spokeswoman, said in an interview last week that current fire regulations in the state of Michigan require that all doors inside campus buildings swing outward into the hall and that there is only one step required — like turning a door handle — for an individual to exit the room. All doors currently have a single lock that is incorporated into the doorknob, rather than a dead bolt and a doorknob, which would create a second step to exit each room. “At home, you have a dead bolt and a door knob,” Brown said. “That is not permitted in Michigan for fire safety, so we can’t just throw on a lock. It must be integrated into the door handle mechanism.”

Brown said that if University administration intends to act upon Riles' idea, all of the doorknobs in every building would have to be replaced. She added that replacing doorknobs in hundreds of buildings and thousands of classrooms would be costly and time-consuming. Furthermore, the University would have to decide whether to replace the doorknobs all at once or over time as buildings get renovated. But supporters of the plan think the benefits of the concept outweigh the potential costs. Riles wrote that one of the main arguments against installing the new locks brought up at the meeting was that doors would be locked unintentionally, making classroom access difficult during scheduled class hours, as well as after hours.

Brown said that installing the new doors would be a likely solution in the event of a threat, but that it would be a huge and complicated project. She added that if a project is initiated, University administration will have to determine who will finance it and what the construction process will look like.

MISSISSIPPI: The Ocean Springs and Moss Point school districts moved this week to apply for $3 million each in bonds provided by the federal stimulus bill to cover the cost of school repairs and renovations. The two districts seek shares of the $132 million in no-interest Qualified School Construction Bonds allocated to the state for 2009 through stimulus action. Each is applying for the maximum possible allocation. The bonds can be used for construction, repairs or renovations, or for acquiring land on which a public school facility will be built.

On Tuesday, the Ocean Springs district passed a resolution seeking the bond money that its business manager Donna Nester said would go toward the new Ocean Springs High. The district has $11 million lined up for the school being built on Old Spanish Trail, and voters passed a 5.5- to 6-mill increase in property taxes to cover the remainder of the $50 million cost. A mill amounts to a dollar in tax for each $1,000 of assessed property value. The high school is expected to open in December 2011. "This was one of those things we'd hoped would come down, and it did," Nester said.
The Moss Point school board approved a resolution Monday to apply for the bonds, which would help renovate Magnolia Junior High, said Chief Financial Officer David Rubenstein. The school has been closed since being damaged by Hurricane Katrina in 2005. The Federal Emergency Management Agency is covering most of the Magnolia work, but the district will be responsible for some costs, such as substantial roof replacement, building a new entryway and lobby area, and installing new windows. Rubenstein said that the bonds are "first come, first serve," and Moss Point should be one of the first in line. He estimated that the district could save $800,000 to $1.1 million by not having to pay interest on the loan.

OHIO: State money could help pay for energy efficiency measures for Vermilion Local Schools. The board of education voted 5-0 to seek up to $2 million in Qualified School Construction Bonds, which are available from the American Recovery and Reinvestment Act through the Ohio School Facilities Commission. The bonds would allow Vermilion schools to borrow money at no interest for energy conservation measures in the school buildings, said district Director of Finance and Business Operations Amy Hendricks.
Vermilion voters would not need to approve a levy or bond issue to repay the money, Hendricks and board President Tim Rini said. Rather, the district would pay back the bonds with money saved due to lower energy bills, they said.

Vermilion schools could use the money for a variety of projects, ranging from "waterless" fixtures used in rest rooms to hardware upgrades to conserving electrical use of school computers, Hendricks said. The Vermilion High School has rooftop air conditioning units that are aging and requiring more maintenance and they may be replaced, Hendricks said.

ILLINOIS: Last month, Southern Illinois University issued $53.7 million in BABs and matched it with another $20.5 million in local funds to finance the construction of a new football stadium at SIU Carbondale and the expansion of the existing basketball arena. Tina Galik, the assistant treasurer for SIU, says the university had originally planned to issue tax exempt bonds for the project but BABs turned out to be a better deal. After the tax credit, the effective interest rate came in at 3.84 percent. Galik says the university ended up saving $7.5 million in total debt service over a tax-exempt issue. "You’re really reaching a broader market and getting a bigger variety of investors who right now are very interested in safe investments with a good return," Galik said.

According the U.S. Department of the Treasury, BABs can be used by state and local governments to fund a variety of capital projects such as public buildings, courthouses, schools, roads, transportation infrastructure, government hospitals, public safety facilities and equipment, water and sewer projects, environmental projects, energy projects, governmental housing project and public utilities.

ILLINOIS: Last month, Southern Illinois University issued $53.7 million in BABs and matched it with another $20.5 million in local funds to finance the construction of a new football stadium at SIU Carbondale and the expansion of the existing basketball arena. Tina Galik, the assistant treasurer for SIU, says the university had originally planned to issue tax exempt bonds for the project but BABs turned out to be a better deal. After the tax credit, the effective interest rate came in at 3.84 percent. Galik says the university ended up saving $7.5 million in total debt service over a tax-exempt issue. "You’re really reaching a broader market and getting a bigger variety of investors who right now are very interested in safe investments with a good return," Galik said.

According the U.S. Department of the Treasury, BABs can be used by state and local governments to fund a variety of capital projects such as public buildings, courthouses, schools, roads, transportation infrastructure, government hospitals, public safety facilities and equipment, water and sewer projects, environmental projects, energy projects, governmental housing project and public utilities.

TEXAS: For all their brainpower, school districts do not always plan for "smart growth." They have built schools on sites that are not connected to the neighborhoods they serve. This has forced parents in dozens of schools to drive their children to class, even though they live just blocks away. "The cooperation between school districts and municipalities when it comes to developing smart communities has been lacking," said Nathan Norris of PlaceMakers, an urban-planning firm helping the city develop better growth patterns. "Fortunately, these conversations are taking place now in El Paso, and we should soon see a change in the way our schools are built and designed."

Smart growth is urban planning that promotes streets that connect sensibly, walkable communities, mixed land uses so services are available close to home, and other features aimed at reducing the impact on roads and the environment. Norris said schools in El Paso typically were developed with little cooperation between the city and the school districts, and the result has been campuses that do not seem to fit with the neighborhood. Campuses such as Chapin High School in the Northeast and R.E.L. Washington Elementary on the East Side, for example, do not have homes immediately surrounding them. Others such as H.R. Moye Elementary were built along busy thoroughfares, which forces parents to drive their children to school instead of allowing them to walk.
School officials said they are cognizant of the importance of using smart-growth principles when building a school. Still, they said, the designs they use are often limited by the land that is available for development. Plans for more cooperation are under way.

The city recently hosted a smart-growth schools conference led by Norris and other experts on walkable and accessible neighborhoods. Matthew McElroy, the city's deputy director for planning, said two more workshops will be held later this year. "The idea here is to include all public facilities in our long-term planning, not just parks and streets," he said. "The plans that (Norris) has presented show that smart school growth is possible in all type of neighborhoods, from low-income to high-income." Some school districts are already using smart growth in their new schools. The Ysleta Independent School District is building a new elementary school in the Lower Valley that will share athletic fields with a nearby park. Such sharing is one of the mainstays of smart growth. Schools throughout the county have created designated drop-off areas for school buses and cars, alleviating rush-hour traffic along neighborhood streets.

WISCONSIN: Governor Jim Doyle and State Superintendent Elizabeth Burmaster announced $1.3 million in Recovery Act funds for Wisconsin schools and residential child care institutions to purchase equipment to improve food service operations. The funds will be used for enhancing nutrition, supporting food safety, improving energy-efficiency, facilitating expanded participation in meal programs and incorporating locally grown fresh fruits and vegetables into school lunch programs. "A good, healthy lunch is essential for kids to grow and learn," Governor Doyle said. "Schools have had to stretch very tight budgets and that often means that some schools continue to use very old food service equipment. This immediate investment in school lunch programs will help us to give kids what they need to do well in school for years to come."
The funds will be shared by 73 school districts, 28 private schools, seven residential child care institutions, and four independent charter schools of varying size from throughout the state to purchase new food service equipment. The oldest food service equipment to be replaced by the awardees is an 83-year-old oven in the Bruce School District.

Applicants submitted 275 requests to purchase 1,546 pieces of equipment for a total of $10.4 million-more than eight times the amount of funding available. States were required to give priority to schools and institutions with high poverty rates, as measured by the percentage of students eligible for free or reduced-price meals. To maximize the economic impact of the grants, the funding must be spent within three months.

COLORADO: The Colorado Department of Education has found a way to save the state $45 million using a new program created by the American Recovery and Reinvestment Act. Instead of funding three school construction projects with interest-ridden loans, the state's Public School Capital Construction Assistance Board voted today to use stimulus-funded Qualified School Construction Bonds, or QSCB, which are interest free. The decision makes Colorado the first state to utilize QSCBs for school construction, said Mary Wickersham, the chair of the capital construction board.
"It's incredible how bizarrely serendipitous this is," she said. "We seem to have stumbled into a position where we can be ahead of everyone else." The money will replace previously approved grants for construction in three school districts: $1.5 million for Alamosa School District, $1.5 million for Sangre de Cristo School District and $1 million for Sargent School District.

NATIONAL: The Internal Revenue Service has published guidelines for tribes to file applications for up to $2 billion in tax-exempt bonds for economic development projects in Indian country approved in the American Recovery and Reinvestment Act. But time is of the essence: the first application deadline is Aug. 15. The guidelines, called “Notice 2009-52 (Tribal Economic Development Bonds),” were expected to be issued in April after the IRS and the Interior Department received and reviewed comments from the nations. The document was posted on the IRS Web site June 23, leaving nations slightly less than 45 working days to gather and prepare information needed for the 11-page application, which is included with the guidelines.

President Barack Obama’s stimulus package – passed by Congress in February – greatly expands tax-exempt bonding opportunities for tribal governments. For the first time, tribal governments will have all of the same economic tools available as state and local governments to finance public works, home ownership and private economic development. The new bond provisions allow tribal governments to borrow money at a lower tax-exempt cost; issue a new type of tax credit bond; provide tax credit subsidies of up to $400 million for tribal school construction; and add other incentives to make tribal bonds more appealing to investors and lenders.

The $2 billion figure, also known as “volume cap,” is a nationwide allocation to be shared among tribal governments that apply. The guidelines detail eligibility requirements; application requirements, deadlines and forms, the method the IRS and Interior Department will use to allocate the money; which is based on project proposals, and “certain interim guidance in this area.” According to the guidelines, there will be two $1 billion rounds of applications. The deadline for the first round closes Aug. 15, and bonds must be issued by Dec. 31, 2010 or the cap is forfeited. Applications for the second round are due Jan. 1, 2010, and bonds must be issued by Dec. 31, 2011. Any amounts forfeited in the first round will be reallocated in the second round. A tribe can apply for a maximum of $30 million regardless of the number of projects it has planned.

OKLAHOMA: With $54 million in construction money now in the bank, the Oklahoma City School District can fully begin what might best be described as MAPS for Kids, the sequel. The timing is good. The passage of a $248.3 million bond package in October 2007 marked the first bond issue election for the Oklahoma City district since MAPS for Kids passed in 2001. The district banked the proceeds from the most recent bond sale last week. It’s issuing new bonds as it pays off MAPS for Kids bonds so district patrons won’t face property tax increases. While considerably smaller than the original school rebuilding effort, the sequel victory was monumental. It passed with nearly 78 percent of the vote — thousands of votes beyond the 60 percent needed for approval. The bond portion of the original MAPS for Kids vote had only a few hundred votes to spare.

The 2007 victory was evidence of tremendous confidence in the district’s direction and how it had spent the hundreds of millions of dollars in sales tax and bond issue proceeds from the 2001 effort. It also no doubt reflected the importance of the planned work. The 2007 proposals earmarked money for new school buses to keep the fleet up-to-date, technology upgrades, classrooms for all-day kindergarten, stadium improvements at Taft and Speegle and gymnasiums for all elementary schools. Superintendent Karl Springer said district staff is busy planning the capital projects, focusing on the gymnasiums and classroom additions. The gymnasiums were particularly popular items among parents and patrons, and the classroom additions are badly need as the district expands its early childhood education offerings consistent with the MAPS for Kids academic goals. The district also has more than $2 million to spend on technology.

Now, the district and city need to move forward on an agreement to let the MAPS for Kids Trust oversee the construction projects. In campaigning for the 2007 bond issue, school officials promised the trust would have oversight in the same way it has overseen MAPS for Kids projects. That oversight structure and the city-school partnership have worked well, with projects proceeding mostly on time and on budget, and voters clearly trust the process. City Manager Jim Couch said the city is willing to continue its partnership with the trust and school district. And with construction prices down, Couch said now is a prime building time. Trust oversight also will allow better coordination of the 2007 projects with the remaining MAPS for Kids projects. Just months ago, school officials were questioning whether there would be enough money to finish the 2007 projects as promised. With that issue settled and money in the bank, schools and taxpayers are surely anxious to see the plans and promises become reality.

MINNESOTA: Drive into a rural Minnesota town, and the school is the first thing you’re likely to see, often tucked away on the outskirts of town far from the neighborhoods of its students. For decades, school districts have been bound by state guidelines to build new schools away from city centers. But districts now have more freedom to choose sites for new schools under a little-noticed provision tucked inside the omnibus education appropriations bill passed by the Legislature this spring. Proponents of the old rules say the provisions gave districts space to expand. But the rules also led to new schools being built on farmland, higher transportation costs and the degradation of historic schools, said John Bailey, policy director for the 1000 Friends of Minnesota, a sustainable development advocacy nonprofit.

Sustainable growth advocates like Bailey hail the new legislation, saying the law will preserve historic school buildings, allow districts to build schools closer to neighborhoods and change a rule that required districts to build an entirely new school if renovations to the existing building exceeded 60 percent of the cost for a new facility. Mostly, it ends a policy that handcuffed districts, lawmakers say. The old rules, which required schools to have a minimum number of acres for expansions and new schools, had local implications. When the Lewiston-Altura school district asked voters to approve an expansion of its intermediate school in Altura, Minn., the minimum acreage guidelines required the district to purchase several acres of farm land next to the building. Voters weren’t happy about a district using eminent domain to take homes for an expansion, Lewiston-Altura school board members said at a recent meeting. Voters soundly rejected a bond referendum to fund the expansion in November. District officials were frustrated that the state requirements may have partially hindered their efforts. “The truth is we could have used a little extra space, but we certainly didn’t need seven or eight acres,” Lewiston-Altura superintendent Bruce Montplaisir said.

The state protocol for building a new school works like this: A proposal must be submitted to the Minnesota Department of Education, which reviews and comments on the project. The department uses a lengthy guidebook to determine whether it will approve a building project. If new schools did not have enough acres on its site to meet the acreage guidelines, the department could give a negative review, and the building proposal was dead. The new legislation prohibits the commissioner of the Minnesota Department of Education from nixing new-school plans based solely on the minimum acreage rule, effectively nullifying the old requirements. School districts’ proposals were not being denied by the Department of Education left and right. In fact, the department has not issued a negative review on a construction plan in the past five years, said Christine Dufour, a spokeswoman for the department. But the guidelines acted as a chilling effect for districts that may have considered building sites that did not meet the minimum acreage standards, Bailey said. The guidelines weren’t based in hard science, both Dibble and Bailey said, and neither could find an explanation about how they were determined. Numerous states have similar guidelines, but they vary greatly. Bailey called the rule requiring new buildings when renovation costs topped 60 percent “completely arbitrary.”

CALIFORNIA: In the last five years, two of Sacramento's largest school districts have shuttered 16 campuses, and with tough budget cuts likely to go into next year, more will join the list. Most of the closed schools were elementaries. And Sacramento City Unified and San Juan Unified school districts have been actively pursuing multiyear leases to help offset the cost of holding onto the campuses.

Don Myers, San Juan's director of facilities and planning, said the leases can bring in between $20,000 and $30,000 a month. San Juan's school board voted Tuesday night to lease its last vacant property – Orangevale Elementary School – to a statewide charter. Orangevale sat empty for two years because the property does not fully comply with the Americans with Disabilities Act. Those issues will be addressed as part of the lease agreement, Myers said. During the two years that Orangevale sat empty, Myers said vandalism proved costly. Renting out schools might save on vandalism costs, but leases don't always cover the cost of maintenance and operations. Still, the goal is mostly to break even, said Myers, so the district isn't losing money, especially in these tough budget times.

NEW YORK: Building new schools could be one of the city's toughest challenges. There's great need, not enough space, and of course these days not enough money. Yet 22 brand new schools will open up in September. Sharon Greenberger, the president of the School Construction Authority, says designing schools, building them and deciding where to put them is a challenge. "We try to identify sites that are large enough to accommodate a school, that pass environmental due diligence, that are accessible and are clearly in an area where there's need," says Greenberger.

Once a site is chosen, design teams come in. The architecture firm SBLM in Manhattan has 25 people working on school design alone. The firm has designed dozens of new city schools, and considers them to be big business and a unique art form. "The environment of a classroom is very important. High windows and letting in lots of daylight has been proven to help in the education process," says Ed Bredow of SBLM. Modern schools tend to be light and airy, green chalkboards have all been replaced by white smart boards and computers are now an integral part of any new design. "What's fundamentally different with the new schools being built today versus the schools built 30 years ago is the technology," says Josh Burdick of SBLM.

On top of that, all new city schools are now required to meet a long list of "green" guidelines to be water, space and energy-efficient. Some even have new light fixtures that turn off automatically and greenery on the roofs. The School Construction Authority says it can take a full year to design a new school and sometimes even longer to build it. What happens when it opens is most important: "If a teacher inspires the kids with curiosity, then the architecture will just assist that," says Burdick. So despite the modern design, good teaching will always be the best foundation for any new school.

GUAM: At least half of the Guam Public School System's stimulus funding will be spent to improve and repair school facilities, Superintendent Nerissa Bretania-Shafer said. Guam will receive about $108 million from the U.S. Department of Education as part of President Obama's plan to invigorate the struggling economy and boost education nationwide. Funds will be split between the school system, the University of Guam, Guam Community College and the governor. GPSS will receive about $62 million in State Fiscal Stabilization Funding, Bretania-Shafer said. The governor must submit Guam's funding application by about August, she added. The funding presents a "once-in-a-lifetime" opportunity to improve schools, she said. "We are always going to be able to apply for grants for curricular programs," she said. "For these (funds,) this is really where we will want to spend it, for capital improvement." But before the school system can start pouring money into schools, it must know where to spend it, Bretania-Shafer said.

First, the school system will hire experts to compile a list of everything that needs to be repaired or improved at all the campuses, she said. The federal government doesn't require the prioritization, Bretania-Shafer said it's the most logical thing to do. Bretania-Shafer said the assessment would allow the school system to organize the long list of work that needs to be done, and then prioritize repairs for efficiency and effectiveness. GovGuam assessments that have already been done only examine individual schools and require only minimum standards allowed by law, she said. "There are actually experts out there who can say, 'During the first year, here are your priorities and this is how much it is going to cost, approximately,'" Bretania-Shafer said. "To me, that is real important. Then it's organized. We have a multi-year plan that is the first step to a preventive maintenance effort." Although stimulus funding must be spent in a window of a few years, Bretania-Shafer said she wasn't worried that the assessment would delay spending for too long.

NATIONAL: There have been two important updates to the application submission process for direct formula grants: First, an amendment has been made to the EECBG Funding Opportunity Announcement (FOA) regarding late applications. Late applications for direct formula funds will be accepted until August 10, 2009, 8:00:00 PM ET. Failure to meet this deadline will result in forfeiture of allocated funds. Second, the Department is aware that some applicants are experiencing difficulties submitting EECBG applications through FedConnect. In the event that you are unable to upload your application using this system, your first step should be to call FedConnect Support at 1-800-899-6665. However, as detailed in Amendment 004 to the FOA, applications may also now be submitted via email to eecbg@netl.doe.gov.

NATIONAL: There have been two important updates to the application submission process for direct formula grants: First, an amendment has been made to the EECBG Funding Opportunity Announcement (FOA) regarding late applications. Late applications for direct formula funds will be accepted until August 10, 2009, 8:00:00 PM ET. Failure to meet this deadline will result in forfeiture of allocated funds. Second, the Department is aware that some applicants are experiencing difficulties submitting EECBG applications through FedConnect. In the event that you are unable to upload your application using this system, your first step should be to call FedConnect Support at 1-800-899-6665. However, as detailed in Amendment 004 to the FOA, applications may also now be submitted via email to eecbg@netl.doe.gov.

MISSOURI: Missouri Gov. Jay Nixon has asked state legislators to submit proposals for a major capital program to fund projects on university campuses and at other state facilities. It's a sound idea. The money, perhaps as much as $1 billion, would be raised under the Build America Bonds program, part of the $787 billion federal stimulus package passed earlier this year. The interest is subsidized at 35 percent by the federal government. Under the BABS program, states and other governmental entities might sell bonds yielding a 7 percent return, but the interest cost to the state would be only 4.5 percent. In effect, the state would be spending 65-cent dollars; such deals don't come along very often.

BABS bonds are taxable, but many institutional investors, like pension funds, foundations and endowments, don't pay taxes and should find the high returns attractive. Many states already have jumped on the BABS bandwagon. That means there's some urgency to Mr. Nixon's proposal. It not only has to be approved by lawmakers, but also by voters. Unless Mr. Nixon calls a special election, the earliest such a proposal could go before voters is November 2010. The state should act before then, even if it requires a special legislative session and a special election. Adding some urgency to Mr. Nixon's request, made in a letter to lawmakers last week, is the fact that the state budget is $371 million in the hole.

To bring it into balance, the governor may veto many of the capital projects included in House Bill 22, passed a week before the legislative session ended May 15. After posturing for months about their reluctance to spend federal stimulus money, lawmakers went on a last-minute $348 million spending spree with stimulus funds in HB 22. Among the largest stimulus-funded projects they approved were $28 million for projects at the University of Missouri-St. Louis. More than $50 million was earmarked for projects at other state universities and agriculture research stations. If those are whacked from HB 22, they could wind up in a BABS package along with a wish list of other projects from around the state.

NORTH CAROLINA: Gov. Beverly Perdue signed a bill allowing school districts to apply for interest-free bonds backed by stimulus money for renovation and construction projects. Districts can now apply for Qualified School Construction Bonds and Qualified Zone Academy Bonds. For QZAB bonds, school systems must have 35 percent of their students receiving free or reduced lunch. The money can only be used for repairs and renovation, and requires school districts to partner with businesses that will match 10 percent of the bond’s face-value through cash or in-kind contributions.
There are fewer requirements for QSCBs, however. There is no free and reduced lunch or business match requirement. It’s a new bond program created with stimulus money, according to a press release from Perdue’s office, and will be administered through the School Planning Section of the School Support Division at the Department of Public Instruction.

Henderson County Superintendent Stephen Page said the district is always open to new revenue ideas. “We of course would be interested in looking at any way to use monies that are available to us,” he said. He will discuss the bonds with the School Board and county Board of Commissioners as possible ways of financing renovations and improvements at Atkinson, Edneyville and Upward elementaries. The three schools are next on the district’s list of projects after the Apple Valley Middle/North Henderson High expansion project, and Page said the bonds may be a way to move forward with those needs.

DISTRICT OF COLUMBIA: In high schools in and around Washington, artificial turf is becoming an athletic status symbol. Synthetic ballfields can be found at 10 public high schools in the District, seven in Anne Arundel County, four in Fairfax County and three in Arlington County. They have been installed at T.C. Williams High in Alexandria, Richard Montgomery High in Rockville, North Point High in Waldorf and a host of private and parochial schools. This summer and over the next school year, several more high schools will get artificial turf: Chesapeake and Old Mill in Anne Arundel, Lee in Fairfax, Bell-Lincoln in the District, and Walter Johnson and Montgomery Blair in Montgomery. In most communities, the prospect of replacing real grass with plastic fiber and bits of shredded tire has prevailed with support from coaches and athletic boosters and little public dissent. But debate has emerged in Montgomery over such matters as how the turf deals were structured and whether tire crumbs from the fields might contaminate property nearby.
"We're finding experts from all over the country saying, 'Hey, this isn't safe,' " said Rosanne Hurwitz, mother of a rising senior at Montgomery Blair. She and other parents have formed a group called the Safe Healthy Playing Fields Coalition.

An influential report from the U.S. Consumer Product Safety Commission last July found that the lead in some synthetic fields posed no risk to children. But an advisory from the Centers for Disease Control and Prevention, also released last summer, advised "aggressive hand and body washing" after play on an artificial field and suggested clothes worn on the field be taken off and turned inside out. A study the New York state government released last month found no environmental threat in the ground tire rubber poured into artificial fields to simulate dirt. Nonetheless, the New York City parks department has stopped using crumb rubber in new fields. Mounting evidence that synthetic fields are safe "has been consistently ignored by those who oppose synthetic turf," said Rick Doyle, president of the trade group Synthetic Turf Council. Such fields now number about 4,500 nationwide, he said.

NATIONAL: A coalition of city mayors and green builders has asked the Federal government to do more to make the countries schools environmentally friendly. Congress recently passed legislation that will commit billions of dollars to support an environmental overhaul of public schools. But the US Green Building Council and US Conference of Mayors is urging congress to commit more funding to research the economic, environmental and health benefits of green schools. The Green Building Council also commended the USCM for its leadership in passing a green schools resolution, showing its unwavering support of greening America's schools.

At its annual last week, USCM adopted the "Make Green Schools a Reality" resolution, which supports building, repairing and making operations and maintenance improvements to schools throughout the US by using tools like the LEED green building rating system. "The US Conference of Mayors has been a strong supporter of greening America's schools, and the green schools resolution takes one giant step in the direction of enhancing the learning environments for America's students, teachers and administrators that go to school every day," said Rick Fedrizzi, president of the USGBC. USGBC has been developing its own National Green Schools Campaign, which is committed to promoting and supporting federal, state and local initiatives that advance the green school building movement, including support of the Congressional Green Schools Caucus, and USGBC's "50 For 50" Green Schools Caucus Initiative and Mayors' Alliance for Green Schools.

NEW YORK: PCBs are resilient; their legacy is permanency. Thirty years after their ban, these hardy chemical compounds persist in our lakes, our rivers, our bodies, and a broad diversity of animals and plants. In New York City, a growing number of parents and political leaders are trying to rid school buildings of the long-standing presence of PCBs, or polychlorinated biphenyls.
Mounting concerns were set off last year by the Daily News, which publicized state-certified lab tests that showed high levels of PCBs in building caulking for six city public schools. Since this report, one parent has decided to sue the school system to compel PCB remediation, and several elected officials have advocated new legislation.

MISSOURI: Prompted by the federal economic stimulus act, local school districts and state government alike are scrambling to take advantage of a short-term offer on low-cost bonds for construction projects. Missouri legislators have passed a bill that would allow school districts to more easily win approval of bond issues during a special election this November. The federal stimulus act contains a two-pronged incentive to borrow money for buildings. It allows state and local governments to receive a 35 percent federal subsidy on taxable bonds issued before the end in 2010 for capital projects. It also authorizes interest-free bonds for public school construction projects through 2010.

Missouri's share of the zero-interest bonding authority this year includes $28.2 million for the St. Louis School District, $17.9 million for Kansas City and $141.4 million for schools throughout the rest of the state. An additional share will be available next year. "People are crawling all over each other to get at it and then, of course, there's only so much available," said Larry Hart, president and CEO of the St. Louis-based bond underwriting firm LJ Hart and Co. "It's going to be beneficial to every school that does get access to it, and it should help the local economy."

The state Department of Elementary and Secondary Education, which oversees Missouri's share of the interest-free bonds, received applications from 32 school districts wanting to issue $305.5 million of bonds this year, said Roger Dorson, the department's coordinator of school administrative services. Because the request is more than twice what is available, Dorson said schools will receive a prorated amount of interest-free bonding authority. But this year's applicants reflect only a fraction of the interest in the program.
For schools to qualify, local voters must first pass a bond issue. Because the federal stimulus package did not become law until February, it was too late for schools to respond by placing bond measures on the April ballot. So the first batch of applicants largely consists of school districts whose voters already had authorized traditional bond issues. The interest-free aspect is a bonus for them. Under the Missouri Constitution, school bond measures require a fourth-sevenths majority during the April municipal election or the state primary or general elections, which are next scheduled for August and November 2010. At any other election, school bonds require a higher two-thirds majority to pass. But the Legislature has passed a bill creating a unique general election in November 2009 for school bond issues - thus allowing them to pass sooner with the lesser fourth-sevenths majority. That bill is pending before Nixon. Hart estimates as many as 100 of Missouri's 523 school districts could hold bond elections this November.

DELAWARE: Brandywine School District spends $90,000 a year in wax and other materials to shine the floors in its schools. It is one expense the district is scrutinizing as it begins to plan for the construction of Brandywood Elementary School, which could become a model for how other schools are built statewide in years to come.
Earlier this year, the Department of Natural Resources and Environmental Control awarded the district a $950,000 grant to help make Brandywood a Leadership in Energy and Environmental Design, or LEED, demonstration project. More recently, district officials have begun to plan what that money can buy to help make the school more energy efficient and environmentally friendly when it is built next spring -- including flooring that requires less upkeep.

At least 10 states require that their schools and government buildings receive LEED certification; that is, they receive the required amount of points awarded by the U.S. Green Building Council for each green material, energy-saving technology and environment-saving construction technique that goes into those buildings. But Delaware is behind the curve when it comes to this kind of construction. Brandywood in Brandywine Hundred would become the state's first LEED-certified public school, and the hope is that there will be more to come, said Philip Cherry, director of policy and planning for DNREC, which teamed with the state's Department of Education to select the school because construction timing and other factors were ideal. "Buildings use up 70 percent of electricity that is used and account for 40 percent of our greenhouse gas emissions," he said. "And so, to build a school that is smart about its energy use and smart in its construction not only saves money but reduces carbon emissions." Cherry said research shows that construction that includes such factors as increased daylight in a school building and better air circulation also cuts down on absences and improves student performance.

John Read, Brandywine's construction project manager, also is keenly aware that each dollar the district can save on energy and other costs can go into the classroom. "Economic times are tough, and if we don't build things efficiently, we're going to be paying for them forever," he said. "The purpose of this school grant is to be a model, to be a test case, that being green and doing the right things hopefully won't cost that much more. They're going to consider whether this is the path forward for future schools."

MISSOURI: Come November, Springfield school board members will get a chance to do what their Nixa counterparts lucked into -- borrow money for needed construction projects and pay less interest. First, though, they will need to convince voters.
Discouraged by the flailing economy in April, Springfield board members shelved a bond vote for needed projects until more promising times. Now -- thanks to a new stimulus bond program, a lowered voter majority requirement for passage and cheaper construction costs -- those projects may soon be set in motion. "This makes good sense for districts. If you have the need and can access interest-free bonds, you're talking about literally millions in savings," said Roger Dorson, coordinator of school administrative services for the state Department of Elementary and Secondary Education.

Once local voters pass bonds, districts can apply for part of $141 million in interest-free bonds available through the Qualified School Construction Bond program. Deadline was June 12 for the first $141 million. A similar amount is expected for year 2010, available to districts that pass bonds in November and April. Dorson and his staff have been accepting and reviewing applications for the bond program. By June 12, about $305 million -- more than double the pot of $141 million -- in applications were submitted to DESE, he said. To determine allocations, DESE will divide the amount available -- $141 million -- by the amount of bonds applied for: $305 million. That means districts that passed bonds this past November and April won't have to pay interest on about 46 percent of the total amounts of their bonds.

MARYLAND: Federal stimulus money that will help build Maryland schools is taking an unusual detour through the state's Department of Housing and Community Development. And other recovery funding is hitting a speed bump.

The Maryland state government is in line to receive more than $4.1 billion over the next two years from the stimulus package. The school money — in the form of "qualified school construction bonds" — hit a snag, because before the state could use the bonds, the General Assembly would have to vote to increase Maryland's indebtedness. The announcement of the money came late in the session, so lawmakers decided to put off the decision until the 2010 session. Under the program, the feds will pay the interest on the 10-year bonds. Maryland can build $50.3 million worth of projects, interest free, for two years. Three other state jurisdictions received separate allotments based on federal funding for needy students. Baltimore city received $58.1 million, Prince George's County got $25.1 million, and Baltimore County received $19.4 million.

Because lawmakers didn't act, the money was going to remain dormant until the middle of next year, Sen. Richard S. Madaleno Jr. (D-Dist. 18) of Kensington said Monday. But David Lever, executive director of the state's Interagency Committee on School Construction, said he learned that the bonds could be issued under the authority of the Maryland Department of Housing and Community Development, meaning they could be forthcoming in the fall. Cardin said he didn't want the state to wait. "We want to get the money out quickly. A year would be too late. We want it done before then," he said. "We've got to expedite it. We've got to make it quicker." The delay to the fall, at least, could be in the state's favor, Lever said. The bonds are unusual — instead of a dividend, they pay in tax credits — and the market might not be ready for it, he said. So far, only one jurisdiction has issued the bonds, San Diego, and the response wasn't good, Lever said.
"This is the sort of program, because it's brand new, people don't understand it or they're not talking about it," said Jennifer Cohen, a policy analyst for the New America Foundation, a nonpartisan Washington think tank.

PENNSYLVANIA: While Jack Wagner, Pennsylvania's auditor general, sees "a new day" in the Philadelphia School District's approach to school safety, he won't know for sure until the state completes its audit this year. Wagner said "there is no doubt there's been a problem in the past" with Philadelphia's school-safety record. "I was impressed with what I heard today . . . and the hands-on approach a couple principals are taking," he said yesterday after meeting with district officials.
He acknowledged the public perception that Philadelphia schools are unsafe. Based on incident reports, 20 of the district's schools are deemed "persistently dangerous" under the federal No Child Left Behind Act. "Things are getting better," Michael Masch, the district's chief business officer, said after a meeting with Wagner and Superintendent Arlene Ackerman. "They are not good enough yet, but we are very encouraged." Masch said violent incidents had fallen in 17 of the 20 "persistently dangerous" schools.

Wagner, whose office has put a focus on school-safety audits statewide, toured two of the district's most dangerous schools, Martin Luther King High School and Germantown High School. Afterward, Wagner said his office checked for strong relationships with local law enforcement, single entry points into buildings, and visitor procedures. Schools with a high number of incidents may need metal detectors and video surveillance, he said.

PENNSYLVANIA: While Jack Wagner, Pennsylvania's auditor general, sees "a new day" in the Philadelphia School District's approach to school safety, he won't know for sure until the state completes its audit this year. Wagner said "there is no doubt there's been a problem in the past" with Philadelphia's school-safety record. "I was impressed with what I heard today . . . and the hands-on approach a couple principals are taking," he said yesterday after meeting with district officials.
He acknowledged the public perception that Philadelphia schools are unsafe. Based on incident reports, 20 of the district's schools are deemed "persistently dangerous" under the federal No Child Left Behind Act. "Things are getting better," Michael Masch, the district's chief business officer, said after a meeting with Wagner and Superintendent Arlene Ackerman. "They are not good enough yet, but we are very encouraged." Masch said violent incidents had fallen in 17 of the 20 "persistently dangerous" schools.

Wagner, whose office has put a focus on school-safety audits statewide, toured two of the district's most dangerous schools, Martin Luther King High School and Germantown High School. Afterward, Wagner said his office checked for strong relationships with local law enforcement, single entry points into buildings, and visitor procedures. Schools with a high number of incidents may need metal detectors and video surveillance, he said.

MISSOURI: Springfield voters can expect a bond issue on the ballot soon for school construction projects. The looming questions are when -- November or April -- and for how much.
Springfield school board members eagerly discussed a new federal stimulus program -- the Qualified School Construction Bond program -- which allows districts to borrow money for projects without interest after voter approval. A November election would allow the district to act sooner on needed projects; an April election might allow more time to garner public support. Once districts pass a bond issue, they can apply for the program. Because many districts will apply for a limited pot of money --$141 million -- the state Department of Elementary and Secondary Education will parse out a smaller percentage on the dollar for each district, said the district's investment banker, Greg Bricker of George K. Baum and Co. An "ultra-conservative" prediction on how much districts could see interest-free is 20 percent, Bricker said. That means that if Springfield could pass a $50 million bond, then $10 million of that could be a QSCB bond under Bricker's projections. The remaining $40 million would be a no-tax-increase bond with a possible 5 percent interest.

Removing the interest from the $10 million QSCB bond could save the district $5 million to $7 million over the 20-year term of the bond, Bricker said. There is the temptation to ask voters for a larger bond issue to leverage more stimulus money, board members acknowledged. "I want to be conservative on this but I don't want to leave money on the table," Lee said.
Board member Jean Twitty said she was excited at the savings opportunity. "This is the first piece of the stimulus bill that's easily understandable," Twitty said. Board Vice President Tom Prater also pointed to the savings in cheap construction costs due to the recession. "This is a phenomenal opportunity," Prater said. "We have a list of construction needs well over $50 million."

Scott Wendt, the district's director of business operations, said he could not yet say the total costs of construction needs. But the district will be compiling a prioritized list of projects for board consideration in the next two weeks, Wendt said. The board is expected to decide the particulars of the bond election in July. "We need to strike while the iron is hot," said board member Andy Hosmer.

MASSACHUSETTS: A project to install solar panels on the roof of a Watertown school is moving forward, with the school to receive the panels identified, and project bids being solicited. The school district has decided to install the panels at the high school. Facilities department staff determined that from a technical standpoint it has the best roof for them. “The expectation is that they’ll be installed this summer,” Assistant Superintendent Ann Koufman-Frederick said. The solar panels will produce a minimal amount of electricity for the school, according to Brian Hebeisen, who headed the Watertown Solar Challenge Committee, a group that raised money for the project. “It’s probably going to be less than 5 percent of what the school is using,” Hebeisen said.

More importantly, he said, the solar panels will raise the visibility of the clean technology, and perhaps prompt residents to install their own. Additionally, he said, the panels will be incorporated into school curriculum. Classes can use a software package that comes with the solar panel system. “It tracks the amount of sunlight in a given day, and other weather factors,” he said. “Classes can do some science projects based on the data coming from the solar panels.”

ARKANSAS: The Green Forest School board approved a plan for spending its $1.24 million in federal stimulus funds and agreed to pay $10,000 for a person to help with the paperwork. The money must be used for one-time projects, not for operations that would have to be continued after the stimulus funds end in two years.
The board opened low bids for $81,000 to repair the high school building’s foundation and $77,133 to install higher-efficiency heat and air conditioning units in the high school. Stimulus money will pay for that, for $309,000 to repair or replace the old art building and for $100,000 to renovate the band building. Stimulus money and federal community oriented policing funds will together pay $100,000 for more security cameras.

Superintendent Jeff Williams told the board that the stimulus plan can be amended monthly. The board agreed to pay about $10,000 for a share of the time of a former staffer of the state education department’s facilities division to help Green Forest document and collect the state’s share of money for the new middle school construction, update its master facilities plan and help keep its stimulus spending in line with state guidelines.

FLORIDA: The Odyssey Charter School, architect Lawrence Maxwell’s prototype for a sustainable school design, comes close to meeting an 80 percent reduction in greenhouse gases. It needs less than 30 percent of the energy required by a typical school. The school demonstrates how to program high-energy performance into a building’s DNA using principles of building orientation, natural lighting, natural ventilation, advanced thermal envelope design, active and passive thermal storage, and demand management. This aesthetically attractive, 47,000-square-foot school also cost half as much to build as a conventional school, $70 per square foot compared to $150 per square foot, without sacrificing comfort or facilities.

The first Odyssey school, built in 2005 in Palm Bay, Fla., easily qualified for the EPA’s new Designed to Earn the Energy Star rating, earning 95 out of 100 points. Commercial buildings must earn at least 70 points to qualify. The program was designed to provide architects with the tools to design buildings that meet ENERGY STAR performance standards, says Karen Butler, the EPA’s manager of Commercial Building Design for Energy Star. Using the online Target Finder tool, a free service of the EPA, designers can enter data and evaluate the level of energy performance the design will achieve when it is built. The tool allows architects to compare design alternatives to enhance energy efficiency. It also lets them select target designs to meet American Institute of Architects' Sustainable Practice and its 2030 Commitment goals, which aim for 100 percent carbon-neutral design within 20 years. Right now, buildings are responsible for about 40 percent of U.S. energy consumption. The tool provides a pathway for mapping carbon reduction along with energy performance, Butler says.

WEST VIRGINIA: Students in West Virginia’s future public schools may not just learn about energy efficiency, but they may learn inside an energy-efficient building. Dr. Mark A. Manchin, executive director of the state School Building Authority, said the authority aims to build at least one new school every year that is LEED (Leadership in Energy and Environmental Design) Silver-certified. LEED basically provides standards for environmentally sustainable construction, and this certification has four levels. Silver is its second-highest.
Already, one LEED Silver-certified school is under construction in Berkeley County, Manchin said after the SBA met at Raleigh County’s Shady Spring Middle School Monday. Another LEED Silver school project will be named sometime this year. No LEED Silver schools are planned for Raleigh County yet, but he noted both federal and state governments encourage energy-efficient school construction. Construction costs, though, are higher.

SOUTH DAKOTA: A bonding program available under the federal stimulus package will help schools save money on construction projects, according to two South Dakota school superintendents whose districts plan to use the program. "We're excited about it. The timing just turned out ideal for our planning purposes," said Superintendent Laura Schuster of the Groton Area School District, which plans to use $2 million in bonding authority to build an addition to its high school and make other renovations. Custer Superintendent Tim H. Creal said the bonding program also will provide a large savings in that district's project to construct more classrooms and other facilities in its elementary school in Hermosa.

The new bonding program lets schools issue bonds at no interest, which cuts repayment costs substantially. Buyers of the Qualified School Construction Bonds get tax credits instead of interest, and they use the credits to reduce their tax bills. The state Education Department says 13 school districts have been approved for $29 million in bonding authority to raise money for construction or rehabilitation projects this year. The department plans to allocate bonding authority next year to another 11 school districts that applied for the program.

MASSACHUSETTS: State officials announced that Springfield will receive $54 million for school repairs and renovations, ranging from small projects in various buildings to a $34 million rehabilitation of Forest Park Middle School. The funding was announced by State Treasurer Timothy P. Cahill and Massachusetts School Building Authority Executive Director Katherine P. Craven at City Hall.
Cahill and Craven said the state will provide $20 million for school repairs and improvements under a pilot program intended to serve as a statewide model. The projects will take place over three years and include new roofs, windows, doors, heating and air conditioning systems, fire alarm systems, bathroom renovations and electrical upgrades.

The $20 million pilot program will fund repairs at schools in order to provide a better physical environment for students and to prolong the life of the buildings, Craven and Cahill said. The rationale is to "fix problems before they become major problems," Cahill said. In the past, communities seeking funds for school construction "generally had to wait until a building fell apart before you got on the list," Cahill said. "It increased costs. It was dangerous, and it certainly was not the best educational environment for students," Cahill said.
The city is planning $25.4 million in school repairs, with the state providing 80 percent reimbursement under the "Supplemental Capital Improvement Pilot Program." The city has given the state a master plan outlining the work.

NATIONAL: U.S. Secretary of Education Arne Duncan announced the award of $18.5 million to enhance libraries in 57 low-income school districts across the United States. The grants will help schools improve reading achievement by providing students with increased access to current school library materials; technologically advanced media centers; and professionally certified media specialists.
Funded through the Improving Literacy Through School Libraries program, grants can be used to acquire books and other library holdings; improve school libraries' technological resources and capabilities; facilitate Internet links and other resource-sharing networks; provide professional development for library personnel; enhance opportunities for collaboration among library specialists, teachers and administrators; and expand hours of access to library services.

NATIONAL: A bill awaiting action in the U.S. Senate could set aside up to $6.4 billion in fiscal 2010 for modernization, renovation, and repair projects aimed at producing school facilities that are energy efficient and environmentally friendly. The U.S. House of Representatives passed the bill May 14 in a 275-155 vote, split mostly down party lines with Democratic support and Republican opposition.
“This is landmark legislation, because it’s the first sign that the federal [government] is getting involved in the facilities part of education,” said John K. Ramsey, the executive director and chief executive officer of the Council of Educational Facilities Planners International, or CEFPI, based in Scottsdale, Ariz.

The bill, HR 2187, would set aside $32.4 billion over five years for environmentally friendly, or “green,” school modernization, repair, and renovation projects over the next five fiscal years—2010 to 2015—distributed through Title I formulas. It would also provide an additional $100 million for each of those five years for schools damaged by Hurricane Katrina. The total cost of the bill is expected to be about $32.9 billion.

“It costs too much. It borrows too much. It controls too much,” U.S. Rep. Howard P. “Buck” McKeon, the ranking member of the House Committee on Education and Labor, said of the bill in a May 6 statement. But supporters point to the cost savings on energy and the need for modern facilities.

The Senate did not take any action on a similar bill passed by the House last year. And in negotiations over the federal American Recovery and Reinvestment Act in January, the Senate stripped that economic-stimulus package of money specifically for school modernization, repair, and renovation. Still, facilities experts are optimistic. “The Senate’s been very noncommittal,” said Mr. Ramsey, from CEFPI. “But we think a bill will get through, although we don’t know what the final form will be.”

CONNECTICUT: Governor M. Jodi Rell signed House Bill 6496 that requires local and regional school districts to used green cleaning products in schools, helping to ensure a healthier air quality for students, faculty and staff. “Schools are places of great promise for our children, where dedicated teachers and staff help shape and guide their futures. We can now color that future green, as well,” Governor Rell said during a bill signing ceremony at Vernon Center Middle School. “This law will help ensure a healthy environment for everyone who walks through the doors of public schools in Connecticut.”

House Bill 6496 requires school districts to have a green cleaning program in place by July 1, 2011. The environmentally preferable products must meet nationally certified guidelines and approved by the state Department of Administrative Services. They include products used for general purpose cleaning, bathroom, glass and carpet cleaners; hand cleaners and soaps; floor finishers and strippers. The law also requires that the types of cleaners and the methods used be made public.
The bill drew broad support from educators, the environmental community, health professionals and parents. During the legislative process, proponents testified that nearly one-quarter of cleaning chemicals used in schools are toxic and significantly affect indoor air quality. “This signals the end of harsh, toxic chemical cleaners used around generations of schoolchildren,” Governor Rell said. “It is about time we cleared the air.”

CONNECTICUT: Governor M. Jodi Rell signed House Bill 6496 that requires local and regional school districts to used green cleaning products in schools, helping to ensure a healthier air quality for students, faculty and staff. “Schools are places of great promise for our children, where dedicated teachers and staff help shape and guide their futures. We can now color that future green, as well,” Governor Rell said during a bill signing ceremony at Vernon Center Middle School. “This law will help ensure a healthy environment for everyone who walks through the doors of public schools in Connecticut.”

House Bill 6496 requires school districts to have a green cleaning program in place by July 1, 2011. The environmentally preferable products must meet nationally certified guidelines and approved by the state Department of Administrative Services. They include products used for general purpose cleaning, bathroom, glass and carpet cleaners; hand cleaners and soaps; floor finishers and strippers. The law also requires that the types of cleaners and the methods used be made public.
The bill drew broad support from educators, the environmental community, health professionals and parents. During the legislative process, proponents testified that nearly one-quarter of cleaning chemicals used in schools are toxic and significantly affect indoor air quality. “This signals the end of harsh, toxic chemical cleaners used around generations of schoolchildren,” Governor Rell said. “It is about time we cleared the air.”

INDIANA: Fifth Third Securities, Inc., a subsidiary of Fifth Third Bank, recently underwrote the first Build America Bonds in the state of Indiana. The $27.7 million worth of bonds, sold on behalf of Community School Corporation of Southern Hancock County, will go to build a new intermediate school in New Palestine, Indiana. “These new Build America Bonds are intended to assist state and local governments finance capital projects and lower borrowing costs,” said Jeffrey Chapman, senior vice president and Senior Commercial Sales Manager with Fifth Third Securities, Inc. “Another benefit is these projects help stimulate the economy and create jobs.”

Bob Yoder, assistant superintendent of schools from Southern Hancock School District, said sales of these bonds were a win-win for both the school and the community. The school, which will begin construction in June, will be a 150,000 square-foot building that could house as many as 800 fifth and sixth grade students. “We will save about $125,000 a year in interest costs,” said Yoder. “Over the 20 year term of these bonds, that’s $2.6 million in savings.”

The American Recovery and Reinvestment Act of 2009 created the Build America Bond program, which authorizes state and local governments to issue Build America Bonds as taxable bonds in 2009 and 2010 to finance any capital expenditures for which they otherwise could issue tax-exempt governmental bonds. State and local governments receive a direct federal subsidy payment for a portion of their borrowing costs on Build America Bonds equal to 35 percent of the total coupon interest paid to investors.

WYOMING: The $18.4 million cut in funds to the Wyoming School Facilities Commission should not impact school construction for the 2009-2010 year. According to officials, it's the following bienniums that may bring changes to how Wyoming handles capital construction projects. The Legislature's Select Committee on Facilities met in Casper to discuss Gov. Dave Freudenthal's recent budget cuts, among other issues. Ken Daraie, the executive director of the commission, told members he did not anticipate major changes to projects for the upcoming year. The commission also reported that the $18.4 million cut is pretty much taken care of. "Those monies were essentially a result of savings on bids on projects," Daraie said. The commission estimated that it's saved anywhere from 10 to 15 percent on recent project bids due to the lagging economy. Daraie said the commission has also saved up to 20 percent on past bids. Daraie said construction projects may shift around on the commission's needs index list, a document which ranks the construction needs of school districts. The commission is currently updating the index to reflect changes in how it scores schools. A reorganized list will be ready this fall.

VIRGINIA: Joining their counterparts at a rapidly growing number of solar-powered schools across the country, students and teachers at the Thomas Jefferson High School for Science and Technology unveiled a string of 22 panels on top of the school in the Alexandria section of Fairfax County. They hope it is just the first step in updating their early-1960s building -- a leap from the Jetsons era into the green age. Students raised money over two years, with a bit of help from environmental organizations, amassing $56,000 to pay for the panels, which generate enough electricity to power an ordinary house. They ran into hurdles only when they needed permits and approvals to put the panels atop one of their labs, students and teachers said.

The solar array is modest -- two neat rows of shiny black panels, each about the size of a car door -- but the juice they will generate when the sun hits them and starts jiggling electrons will be able to power 100 laptops at high noon. Students and teachers estimated that the panels would keep five tons of carbon dioxide out of the atmosphere every year.

Solar panels have been creeping across school roofs around the country for years -- campuses in San Diego, Cleveland and Lexington, Mass., are notable examples -- but the hefty initial investment required had kept them off Washington area schools until recently. Montgomery County decked out three schools with solar panels last year and is working on a fourth. The private Sidwell Friends School in the District is equipped with the earth-friendly panels. A few small projects have taken hold in Loudoun and Fairfax counties, and Thurgood Marshall Academy in the District was recently fitted with a system similar to the one unveiled at Thomas Jefferson.

MISSOURI: Earlier this week, Hollister School Board members discussed the possibility that the district could save as much as $3-$5 million in interest on a construction bond that will be used to build an early childhood center. Tim Taylor, the district’s superintendent, said a program made possible by stimulus funds called qualified school construction bonds allows districts to pay no interest. “The buyer of the bonds receives tax credits from the federal government equal to the interest the buyer would have received from the district,” Taylor said. “The district is responsible for repaying the principal of the bonds.”

In April, voters approved a $6.5 million bond issue to build an early childhood education center. Taylor said the timing of voters’ approval couldn’t have come at a better time and that it puts Hollister in a good position to receive the funds. “The timing was fantastic,” Taylor said.

Qualified school construction bonds are available to all school districts in Missouri that have passed bond issues and have money left to issue. A total of $280 million has been allocated to Missouri for 2009 and 2010. An additional $90 million has been allocated for St. Louis and Kansas City for 2009 and 2010, but Dick Bartow, of George K. Baum & Company, told Taylor that he believes that money could be redistributed throughout the state if not used by those districts.

TEXAS: The University of Texas is preparing the state's largest debt issue so far this year: $625 million of revenue bonds, including $330 million of Build America Bonds. The upcoming bonds will include funds to restore the heavily damaged facilities at University of Texas Medical Branch at Galveston, which was partially closed because of the storm damage.
UT joins the universities of Minnesota and Virginia in BAB market.

MASSACHUSETTS: The Boston Renaissance Charter Public School broke ground on a new, $40 million school building in Boston’s Hyde Park neighborhood. Renaissance will restore a former 70,200-square-foot mill building and a 21,400-square-foot warehouse building at 1415 Hyde Park Ave. When complete, the project will include 97,000 square feet of educational, assembly and administrative space in the two existing buildings. The mill building will house most of the classrooms and the warehouse building will house the gymnasium, cafeteria, music classrooms and library. A new 16,000-square-foot addition will connect the two buildings and include administrative space and additional classrooms. The new school will also feature 3.5 acres of outdoor play facilities, recess areas and a state-of-the-art multimedia center.

Renaissance sold its current home at 100 Arlington St. in the Back Bay to Boston developer Dean Stratouly for $45 million last August. It will remain at the 13-story, 200,000-square-foot building until the new facility is complete next September. The new school is being financed with the proceeds from the sale of the Arlington Street building and a loan from Century Bank in Somerville, Mass. It also received $5 million in Qualified Zone Academy Bonds (QZABs), where the interest is subsidized by the federal government, and $11.6 million in tax-exempt bond financing issued by the Boston Industrial Development Financing Authority (BIDFA), a division of the Boston Redevelopment Authority.
The school also seeks to raise $4 million in private donations and will be launching a capital campaign to achieve that goal. Renaissance is the largest public charter school in Boston, serving more than 1,200 children from 10 different city neighborhoods.

TENNESSEE: Memphis City Schools is receiving $191,000 in school food authority grants from the American Recovery and Reinvestment Act that will fund the purchase of lunchroom equipment for the Central Nutrition Center. Shelby County Schools will receive $7,328 for the purchase of equipment for Millington Middle School. As the largest Tennessee school district, MCS is receiving the most funding in the state. The grants are available for school districts participating in the National School Lunch Program, and are a one-time appropriation to Tennessee. To be eligible, schools must have 50 percent or more of students on free or reduced price meals.

CALIFORNIA: With the state's budget crisis, construction at many area school districts this summer will be slow to nonexistent. "We're just putting everything on hold," said Diane Kempley, superintendent of the Redding School District. Summertime is traditionally when districts update old buildings or construct new ones, patch leaky roofs, replace carpet or fix the parking lot. But this summer, Shasta County schools are facing $12 million in cuts from the state for this school year and the next.
The Redding School District will continue its usual maintenance - such as repairing fixtures and cleaning carpets - but will put on hold a big painting project that it had scheduled for this summer. It was something that could wait until the district's finances improved, Kempley said.
Across the Sacramento River, the Enterprise Elementary School District is constructing four new buildings for its Boulder Creek Elementary School expansion. The money for the multimillion-dollar project comes from a $34 million bond approved by voters in the district in February 2008. Phil Brown, chief business officer for the district, said the majority of the work being done at the district's schools this summer is funded with either bond money or grants it has received over the past year.

Crews are building walking tracks - paid for with federal grant money - at Lassen View and Mistletoe elementary schools. The district also is overhauling its computer network with the aid of a federal technology grant.

The four school districts that won bonds from voters in November - Cascade Union, Happy Valley, Pacheco and Gateway Unified - have yet to begin work at their sites and have no plans to begin this summer. The districts have recently received their credit ratings from Standard & Poor's - the international provider of independent credit ratings - which means they will begin to sell their bond certificates this summer and plan their building projects this fall. In the meantime, "we'll be doing some roofing repairs," said John Strohmayer, superintendent of the Gateway Unified School District. "That's pretty much it."

Gov. Arnold Schwarzenegger, speaking to state lawmakers in a joint legislative session last week, called again for action on the state's budget and proposed changing rules that would affect how schools are maintained. The governor's office proposed allowing districts to hire independent contractors for school maintenance rather than being required by the state to employ custodians, according to a statement on the governor's Web site.

COLORADO: Meteoric growth poses a big challenge to the charter-school movement: how to accommodate more students with limited resources. Indeed, charter schools took a big funding hit in the legislature this year, losing half of their total facilities budget. And there is no surer way to smother this important educational opportunity than to limit capacity, especially when there are 40,000 kids in Colorado on waiting lists to enter these schools. Gov. Bill Ritter has an opportunity to turn things around and inject new hope into Colorado's charter-school movement. The governor and the state Department of Education can pursue millions of dollars in federal matching funds under the Charter School Facilities Incentive grant program.

To become eligible, Colorado first must increase its own investment in current charter school facilities. The governor can do that if he taps into another source of federal funding, the economic-stimulus package signed into law earlier this year by President Obama. Using stimulus dollars to leverage charter-school facilities funding won the near-unanimous support of the legislature, and Colorado's State Board of Education concurred. Organizations as diverse as the Stapleton and Donnell-Kay Foundations are on board, and the state Department of Education stands ready to prepare the federal grant application. An additional $5 million invested by the governor in charter schools using stimulus money could bring charters as much as $4 million in matching funds in just the first year, and more than $10 million over the next five years.

Importantly, the opportunity to apply for the Charter School Incentive Grant Program comes only once every five years. This door won't open again until 2014. In the last five-year cycle, three states and the District of Columbia received $77.92 million in funding under the Incentive Grant Program. Notably, President Obama's proposed 2010 budget increases the funding available for this program to as much as $60 million.
This is the opening we have been waiting for. Colorado long has been a leader in the nation's charter-school movement, yet our state continues to struggle with long-term solutions to pay for needed facilities. The Incentive Grant Program provides a wonderful opportunity to maximize our state's investment in public school facilities. Gov. Ritter has a chance to fulfill his commitment not only to charter schooling but also to the education-reform movement in general. And he can do it at no cost to our own state's strapped treasury.

NEW HAMPSHIRE: The Concord School District has qualified for a zero-interest bond to pay for an overhaul of the HVAC system at Rundlett Middle School. The district will save "easily in the area of a million dollars" over the term of the 15-year bond, said Business Administrator Michele Croteau. The school board approved proceeding with the bond last week.
To receive the federal stimulus-funded bond, the district has to meet requirements that increase the project's cost from $3.2 million to $3.68 million. The district will have annual payments of $250,000, Croteau said.

The state was allocated just less than $29.8 million in bond capacity, said Ed Murdough, administrator of the bureau of school approval and facility management at the state education department. Under the Qualified School Construction Bonds program, the IRS gives lenders tax credits to offset the interest they normally charged to the districts.
Pembroke, Somersworth and Winnisquam school districts also qualified for the interest-free bonds. Pembroke and Winnisquam applied to bond the installation of wood chip heating plants for multiple schools, and Somersworth will bond the construction of a new elementary school, Murdough said.

NEW HAMPSHIRE: The Concord School District has qualified for a zero-interest bond to pay for an overhaul of the HVAC system at Rundlett Middle School. The district will save "easily in the area of a million dollars" over the term of the 15-year bond, said Business Administrator Michele Croteau. The school board approved proceeding with the bond last week.
To receive the federal stimulus-funded bond, the district has to meet requirements that increase the project's cost from $3.2 million to $3.68 million. The district will have annual payments of $250,000, Croteau said.

The state was allocated just less than $29.8 million in bond capacity, said Ed Murdough, administrator of the bureau of school approval and facility management at the state education department. Under the Qualified School Construction Bonds program, the IRS gives lenders tax credits to offset the interest they normally charged to the districts.
Pembroke, Somersworth and Winnisquam school districts also qualified for the interest-free bonds. Pembroke and Winnisquam applied to bond the installation of wood chip heating plants for multiple schools, and Somersworth will bond the construction of a new elementary school, Murdough said.

FLORIDA: The bulldozers crunching dirt on the former Atlantic High property are a reminder that school construction continues in Palm Beach County. It's just on a smaller scale compared to recent years, because of declining enrollment and funding reductions. Districtwide K-12 enrollment is projected to drop by nearly 600 students in the fall, which would be the fourth annual population decline blamed on the weak housing market. Enrollment is down about 5,000 students since 2005. The number of students is expected to drop again in 2010, before rebounding slightly the following year.

For the first part of the decade, the district ordered several new schools each year to serve a population that grew by an additional 4,000 to 5,000 students annually. That demand has mostly dried up, except for some isolated projects and modernization needs. Officials are not seeking any new schools for their revised five-year construction plan, which is to be approved by the School Board in September. And they've already delayed or killed several other previously planned projects.

Despite referendum money, the district has had to manage with dwindling resources. The district's capital budget, which pays for construction, technology, transportation and maintenance, totaled $472.6 million for 2008-09. The year before, the plan included $699.7 million. District Treasurer Leanne Evans told the board last week that the budget for next year is unclear, because the district is awaiting property tax data. But there may be a balance of up to $100 million in money saved from this year. Also, through the federal stimulus program, the district is entitled to $68 million in interest free construction bonds over the next two years. That may help reduce the delay for some projects.