Number: RS20171
Title: School Facilities Infrastructure: Background and Legislative Proposals
Authors: Susan Boren, Domestic Social Policy Division 
Abstract: The federal government's role in financing school construction and renovation continues to be an issue in the 109th Congress, although school construction has generally been considered a state and local responsibility. According to the National Center for Education Statistics (NCES), the unmet need for school construction and renovation is estimated to be $127 billion, a higher amount than the Government Accountability Office (GAO, formerly the General Accounting Office) previous estimate of $112 billion using a similar methodology. NCES indicates that threequarters of the nation's schools report needing funds to bring their buildings into a "good overall condition." The Department of Education (ED) has documented that the average age of a public school building is estimated at 42 years, an age when schools tend to deteriorate. Indirect federal support for school construction is currently provided by exempting the interest on state and local governmental bonds from federal income taxes, as well as other tax code provisions. P.L. 106-554 provided direct funding of $1.2 billion for emergency school renovation and repair. The No Child Left Behind Act (P.L. 107-110 increased funds for Impact Aid construction and established a credit enhancement plan for charter school construction. P.L. 107-16, the Tax Relief Reconciliation Act of 2001, aided tax-exempt bond financing by loosening arbitrage rebate rules and by expanding the definition of private activity bonds. P.L. 108-311 extended Qualified Zone Academy Bonds through 2005. In the wake of hurricane Katrina 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 for repair, alteration and construction, as well as help with the influx of displaced students entering other schools. See sections on Legislative Action and Legislation in the 109th Congress for updated legislative activity.
Pages: 6
Date: January 27, 2006