March 1, 2004

The only new money being provided for facilities in President Bush's proposed 2005 budget is the increase to $100 million for the Credit Enhancement for Charter School Facilities Program in the U.S. Department of Education. This program assists public and non-public entities to leverage funds to help charter schools purchase, construct, renovate or lease academic facilities. Charter schools are not included in most school system capital budgets and therefore have had to find other ways to obtain the necessary funds for facilities.

The 2004 Omnibus Appropriations bill also included continued funding for the National Clearinghouse for Education Facilities. On the other hand, the authorization for Qualified Zone Academy Bonds (QZABs) expired because Congress did not address any of the tax extender legislation in FY 2004. However, QZABs are included in the 2005 tax extender package. The problem is whether Congress finds time to address the extender package prior to going on the election recess this summer.