Bonds Build Interest

There is no shortage of interest among education institutions looking to capitalize on the $22 billion in tax credits available over the next two years through the Qualified School Construction Bond (QSCB) program.

Joe Agron

Sept. 1, 2009

2 min read

The program is accelerating interest in facilities improvement, and spurring construction plans and proposals at education institutions nationwide. The money saved by schools through the use of the credits is substantial, and administrators are working diligently to ensure they get their piece of the QSCB-program pie. Some states are looking to pool resources to sell their allocations; at least one held a lottery to determine which districts will receive the tax credits.

California recently announced the results of a lottery to determine which institutions would receive a share of more than $700 million in QSCB tax credits, as more districts applied than credits were available. The state's 11 largest school districts already received $582 million of the $1.35 billion total the state was allocated for 2009. Even though the state is among the most adversely affected by the current economic climate, education construction remains a priority — and officials see the program as a way to jump start construction, stimulate the economy and create jobs.

Alabama, Tennessee and Virginia are looking to pool financing to sell QSCBs, hoping that economies of scale will enable them to reach the bond markets less expensively. Other states and institutions are going the more traditional route of identifying capital needs and preparing bond issues — using the savings their QSCB allocations will bring as a selling point.

In addition to QSCBs, billions of dollars are available for construction and school improvement via the State Fiscal Stabilization Fund; Energy Efficiency Grants; Build America Bonds; Qualified Energy Conservation Bonds; and more — enabling education institutions to fund much-needed facilities repair, renovation and improvement.

About the Author

Joe Agron

Editor-in-Chief and Associate Publisher

Joe Agron is the editor-in-chief/associate publisher of American School & University magazine. Joe has overseen AS&U's editorial direction for more than 25 years, and has helped influence and shape national school infrastructure issues. He has been sought out for comments by publications such as The Wall Street Journal, The New York Times, USA Today, U.S. News & World Report, ABC News and CNN, and assisted with the introduction of the Education Infrastructure Act of 1994.

Joe also authors a number of industry-exclusive reports. His "Facilities Impact on Learning" series of special reports won national acclaim and helped bring the poor condition of the nation's schools to the attention of many in the U.S. Congress, U.S. Department of Education and the White House.