By Katie Mullin

During the annual meeting in New Orleans, mayors pledged their support for the Public School Modernization Act of 1999 (H.R. 1660), which offers $25 billion in school construction and modernization interest-free tax credits, which are desperately needed by many decaying urban schools. Proposed by Rep. Charles Rangel (NY), the legislation would offer state and local governments the financial leeway to construct and modernize buildings so as to accommodate the growing student population. The two-year program offers enough bonds to renovate or construct 6000 public schools. Funding will be allocated with $11 billion available to states; $11 billion directed to the 100-125 school districts serving the highest numbers of low-income children; and $2.4 billion in bonds distributed for school construction-related expenses.

The new tax-credit bonds, which will help state and local governments pay for school construction and renovation, will provide interest-free financing and offer states the discretion to use funds for school construction as they see fit. Investors are also attracted to the tax-credit bond system, as an efficient and marketable mechanism for borrowing. While tax-credit assisted financing will provide the support for states to modernize the classroom, it is only the first step in educational reform set forth by the Clinton Administration. More federal partnerships are needed with state and local communities to renovate, repair, and build public schools, which the Government Accounting Office estimates will cost more than $200 million.

The mayors are pleased with the outline of Rep. Rangel's legislation, along with the education proposals set forth by the Clinton Administration, and hope that bipartisan support of this issue will allow the needs of struggling schools, particularly within urban areas, to be met. For more information, contact Joan Crigger of the Conference staff at (202) 861-6726.