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School Facilities Infrastructure: Background and Legislative Proposals (CRS Report for Congress)

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Release Date Revised Jan. 27, 2006
Report Number RS20171
Report Type Report
Authors Susan Boren, Domestic Social Policy Division
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised Oct. 24, 2005 (6 pages, $24.95) add
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Summary:

The federal government's role in financing school construction and renovationcontinues to be an issue in the 109th Congress, although school construction hasgenerally been considered a state and local responsibility. According to the NationalCenter for Education Statistics (NCES), the unmet need for school construction andrenovation is estimated to be $127 billion, a higher amount than the GovernmentAccountability Office (GAO, formerly the General Accounting Office) previousestimate of $112 billion using a similar methodology. NCES indicates that threequartersof the nation's schools report needing funds to bring their buildings into a"good overall condition." The Department of Education (ED) has documented that theaverage age of a public school building is estimated at 42 years, an age when schoolstend to deteriorate. Indirect federal support for school construction is currentlyprovided by exempting the interest on state and local governmental bonds from federalincome taxes, as well as other tax code provisions. P.L. 106-554 provided directfunding of $1.2 billion for emergency school renovation and repair. The No Child LeftBehind Act (P.L. 107-110 increased funds for Impact Aid construction and establisheda credit enhancement plan for charter school construction. P.L. 107-16, the Tax ReliefReconciliation Act of 2001, aided tax-exempt bond financing by loosening arbitragerebate rules and by expanding the definition of private activity bonds. P.L. 108-311extended Qualified Zone Academy Bonds through 2005. In the wake of hurricaneKatrina an estimated 400 schools need to be rebuilt in Louisiana and Mississippi. S.1765 and S. 1766 were introduced to authorize grants for schools affected by Katrina forrepair, alteration and construction, as well as help with the influx of displaced studentsentering other schools. See sections on Legislative Action and Legislation in the 109thCongress for updated legislative activity.