The Pennsylvania Department of Education announced in late December to offer school districts the opportunity to participate in the federal Qualified School Construction Bond Program (QSCB) and Qualified Zone Academy Bond Program (QZAB).
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Only districts with the highest tax and poverty rates and those with rapid population growth over the last five years can apply. Statewide, 110 districts are eligible. A typical bond might cost a district 4.0% in interest. These bonds will cost districts from zero to 1.5% interest, saving the districts in their financing of larger projects.
These programs were authorized through the American Recovery and Reinvestment Tax Act. The U. S. Department of Treasury has authorized the allocation of QSCB and QZAB authority to the Commonwealth of Pennsylvania. The Pennsylvania Department of Education will administer the programs and make allocations to school districts that meet qualifying criteria. Allocations will be awarded on a competitive basis. The bonds will be issued through a state authority.
QSCB
To qualify a districts 2007-2008 averaged or equalized millage rate would need to be greater than 19.0 or the district or County wouldneed to qualify as a designated distrissed area. They can also quality if their Free Lunch Program enrollment is greater than 45%.
" Use of Funds: 100 percent of available project proceeds must be used for the construction, rehabilitation, or repair of public school facilities, equipment for these facilities, or related site acquisition.
QZAB
"The same qualifications for the QSCB program apply for the QZAB, which is targeted for adademys.
Inn this insstance the school district must enter into a partnership with a private entity or entities to design a board-approved program with the goal of enhancing the academic curriculum, increasing graduation and employment rates, and preparing students for college and the workforce.
The partner must make qualified contributions having a present value (as of the date of issuance of the bond issue) of not less than 10 percent of the proceeds of the bond issue.
" Use of Funds: 100 percent of available project proceeds must be used for renovation, repair or rehabilitation of existing public school facilities or for equipment which supports the academic program being proposed. Funds may also be used for development of educational course materials, if permitted under the Local Government Unit Debt Act.
The Department strongly urges school districts to consider projects that will help make schools green and sustainable by improving energy performance or seeking to obtain LEED or Green Globes certification. If assistance is needed in developing this proposal, consulting services may be available at no charge to the school district. These services are limited to projects being considered in existing or proposed Title I schools identified for School Improvement or Corrective Action.
The application deadline for qualifying school districts is April 1, 2010.
Click on the links below to access applications and detailed guidelines regarding the QSCB and QZAB program
