Senators Clinton, Harkin, Tauscher Reintroduce Bill to Help Finance School Construction

June 5, 2007 -- Washington, DC - Senators Hillary Rodham Clinton (D-NY) and Tom Harkin (D-IA) today reintroduced legislation to help school districts finance needed school construction and modernization projects.

The Investing for Tomorrow’s Schools Act will create State Infrastructure Banks to improve financing for school construction. Schools will be able to secure loans through these banks for projects that include construction to address enrollment growth, increase physical safety, and create an infrastructure to support educational technology.

Article continues below...

The bill also will implement healthy, high-performance school guidelines for the construction and renovation of school buildings, educational facilities, and libraries to help ensure that schools meet high environmental health standards. Representative Ellen Tauscher (D-CA) today introduced companion legislation in the House of Representatives.

"The lack of adequate school buildings hampers today’s most promising and innovative efforts to boost student achievement. Many older school buildings are in a dangerous state of disrepair and have seriously outdated facilities. Many do not even have the proper wiring for computer networks. While we work to give students the academic tools they need to compete in the 21st century, we must also upgrade school facilities to give students a learning environment conducive to success," said Senator Clinton.

"I have long supported a federal investment in school construction and modernization and applaud Senator Clinton and Representative Tauscher for their leadership. Every child deserves to learn in a safe, well-maintained school. The Investing for Tomorrow's Schools Act builds on other successful federal investments in school construction like the Iowa Demonstration Grant Program, which I have been proud to support. This is truly an investment in our nation’s future,” said Senator Harkin.

"The physical condition of many of our nation's schools is abysmal," said Rep. Ellen Tauscher. "We have a situation where our most valuable resource, our children, are beginning their education in buildings that are literally crumbling around them. There is a direct correlation between the condition of schools and student achievement. We owe it to students to ensure they can learn in a safe and sound atmosphere surrounded by the tools they need to maximize their learning potential," said Representative Tauscher.

According to School Planning and Management Magazine, up to $150 billion is needed to bring our nation’s schools into good condition. Last year alone, school districts spent over $20 billion nationwide on school construction, however, school districts face ever tightening budgets leaving little room for needed construction and modernization. State Infrastructure Banks would offer school districts flexible options for financing these needed projects, such as low interest loans, bond-financing security, loan guarantees, and credit support for financing projects, which result in lower interest rates.

This financing mechanism was pioneered by the Reagan Administration, which used it to help local communities fund water treatment and clean water facilities. The Clinton Administration also used State Infrastructure Banks to help states finance transportation projects.

Source: Senate Hillary Clinton