A r c h i v e d  I n f o r m a t i o n

FOR RELEASE: October 24, 2000	Contact:         John Emekli (202) 401-4389 john_emekli@ed.gov

RILEY TO CONGRESS: PASS SCHOOL MODERNIZATION BILL
House Majority Supports Johnson-Rangel Bill

School Construction and Design

U.S. Secretary of Education Richard W. Riley today joined President Clinton in calling on the leadership in Congress to support America's Better Classrooms Act of 2000, H.R. 4094, a bipartisan school modernization bill introduced by U.S. Representatives Nancy Johnson, R-Conn., and Charles Rangel, D-N.Y.

Riley said the legislation - which would allocate $24.8 billion in tax-credit bonds to help communities modernize schools - is co-sponsored by a clear bipartisan majority of 229 House members.

"This week, before Members go home to campaign for reelection, Congress has the opportunity to avoid the do-nothing label and do something meaningful by passing this critical school construction legislation," Riley said. "I challenge the Republican leadership to put partisan politics aside and do right by America's children by passing this legislation to help build better schools. We need to get on with the business of helping local school districts build safe, healthy and modern schools. We can't delay for another year."

A 1999 study by the National Center for Education Statistics (NCES) reported that millions of young people are trying to learn in schools where roofs are leaking, ceilings are falling down and basic safety features are absent.

The NCES study reported that $127 billion in spending is needed to repair, renovate and modernize school buildings. NCES said that the average public school in America is 42 years old. The Education Department recently released a report showing that national school enrollment is at a record level again this year and is expected to continue to rise for the rest of this century.

"Growth is the new and unwavering constant and school districts are just now beginning to realize that there are no temporary solutions to this permanent and growing problem," Riley said. "As Congress considers what's best for our children, it has the opportunity to invest in their future by passing an education budget that reflects America's priorities. This school construction proposal is an important piece of the budget. It should have the full support of every Member of Congress, including fiscal conservatives, because it would save states and communities billions of dollars in interest costs. If the federal government can build highways and prisons, then it can certainly help communities to build better schools."

H.R. 4094 authorizes states and school districts to use a new type of bond, a tax-credit bond, for school construction, renovation and modernization projects. Through these bonds, the federal government pays the interest to the bondholder in the form of a tax credit, relieving the community of this expense. Interest payments can equal up to 50 percent of the cost of issuing bonds for school construction. As a result, states and local communities can reap substantial savings.