By J.D. LaRock
March 17, 2003

As they have in past years, several members of Congress have introduced legislation aimed at modernizing and building public schools in America's cities, towns and rural areas. In February, Republican and Democrat lawmakers — Rep. Nancy Johnson (CT), Rep. Charles Rangel (NY), and Rep. Loretta Sanchez (CA) — filed separate school construction bills in the House of Representatives, though all follow the basic template of the bipartisan Johnson'Rangel school construction bills introduced in past Congresses.

Each bill would allow local communities to finance school improvement projects at no interest cost. Under the proposals, the federal government would pay the interest on school construction and modernization bonds through a tax credit in lieu of interest. High interest costs are often cited as a main reason why localities are reluctant to secure new bonds for school construction and modernization. According to one Congressional analysis, the interest on a typical 30-year tax'exempt bond almost equals the amount borrowed.

The three bills all aim to address two prevalent problems in many school districts: school disrepair and school overcrowding. "Fourteen million American children attend public schools that are rotting or falling down," said Rep. Rangel in unveiling his bill. "Some have broken heating and poor ventilation. Roofs leak and walls are cracked. In some school districts, classes meet in trailers or broom closets."

Rep. Johnson's bill would provide the greatest benefit to localities, allowing them to secure up to $23.8 billion in interest'free bonds in calendar years 2004 and 2005. Rep. Rangel's bill would allow for up to $22 billion in interest'free bonds. Rep. Sanchez's legislation would cap the amount at $800 million over those two years. Under each bill, the U.S. Treasury Department would allocate the bond authority to states based on their school'age population and number of students from low'income backgrounds. The bills would give states substantial discretion to allocate resources to local communities, and school districts could use the funds for a wide variety of construction and repair projects. Rep. Johnson's and Rep. Rangel's bills also make special provisions for tribal schools.

Reps. Johnson and Rangel have sponsored school construction and repair bills since 1997 — with widespread bipartisan support — but the full Congress has not yet passed their proposals. Last year, a majority of House members signed on as co'sponsors of the bipartisan Johnson'Rangel bill, but the legislation did not come to a vote before the House.

The U.S. Conference of Mayors has strongly supported federal legislation to assist localities in school construction and modernization for several years now, passing resolutions on the issue every year since 1998. For example, USCM has called on the President and Congress to support tax incentives that would subsidize $9.7 billion in bond authority per year.

The need for federal support for school construction and repair has been well documented. According to a 1999 report by the National Center for Education Statistics, the average public school in the United States is more than 40 years old. In 1996, the U.S. General Accounting office estimated it would cost at least $112 billion to bring the nation's schools into good overall condition, while the National Education Association recently asserted that the nation's public school districts need $322 billion in new spending to bring schools up to modern standards. Studies of the New York City and Washington, D.C. school districts in the mid'90s also linked school overcrowding and poor school conditions to lower student achievement.