Tuesday, April 10, 2007

Etheridge Legislation Will Provide $25 Billion For School Construction Bonds

Rep. Bob Etheridge (D-Lillington) has announced that he will introduce legislation to provide $25 billion for school construction bonds. Etheridge made the announcement at Aversboro Elementary School in Garner, which has 10 trailers and is 200 students above capacity. Following the announcement, Etheridge toured the school's facilities to see the effects of crowding first-hand. "This is a win-win proposal for our schools, our children and our communities. It will help us to build new schools and get our children out of trailers and into quality facilities where learning can flourish," said Etheridge. The America 's Better Classroom (ABC) Act of 2007 will provide a federal tax credit to bond holders to pay the interest on local school bonds. The state or school district would only be responsible for repaying the principle. The bill will provide federal support in partnership with local officials to leverage about $25 billion in bonds for school construction, which could provide millions in interest-free school construction bonds for new schools in North Carolina . The legislation will be deficit-neutral and will not result in new taxes or more borrowing from foreign countries. It will meet all pay-as-you-go requirements passed by the U.S. House of Representatives in January. North Carolina would receive approximately $448 million under the legislation. For each $1,000 of school bonds, states or local school districts would save as much as $500 in total payments.


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