Two hundred sevebteen bipartisan members of the House of Representatives have signed on as co-sponsors of HR 2470, the America’s Better Classrooms Act, which would allow school districts to issue interest-free bonds to build and modernize the nation’s school buildings. Chief sponsors are Representatives Charles Rangel (D-NY), Jim Ramstad (R-MN), and Bob Etheridge (D-NC).

Sen. John D. Rockefeller IV of West Virginia and 13 other senators are cosponsors of companion legislation (S.912) in the Senate. Both bills are based on the successful Qualified Zone Academy Bond (QZAB) program that gives school districts up to $400,000 each year of interest-free bonds to modernize their school facilities. Bond buyers receive a federal tax credit in lieu of interest saving school districts about half of the long-term cost of financing school construction.

The proposed legislation would provide public schools with $25.2 billion in interest-free bonding authority for school renovation and repair. Of that money, $22 billion would be directed to the new program with funds allocated to states in the same proportion as the state's Title I funding. The remaining $3.2 billion would be used to expand the QZAB program.

America’s Better Classrooms Act would amend the Internal Revenue Code to allow school districts to issue bonds for school modernization and provide that bond buyers receive a federal tax credit in lieu of interest. QZABs now provide federal tax credits to underwrite interest on bonds to renovate and repair school facilities. The bill was referred to the Senate Finance Committee. Cosponsors are Senators John Kerry of Massachusetts and Tom Harkin of Iowa.

Organizations Concerned about Rural Education supports the extension of the QZAB program and advocates that the 110th Congress approve the America's Better Classrooms Act. The U.S. Treasury allocates the QZAB bonding authority to the states based on their school population, and then state education agencies assign the bonding authority to the school districts in their states. To be eligible, 35 percent of the students to be served must receive free or reduced-cost lunches under the federal school lunch program.

Dale Lestina, president of Organizations Concerned about Rural Education, said “This legislation is important to students in rural schools,” pointing out that about half of the nation’s schools are in rural areas or small towns and that about 8.8 million children live in rural areas and attend rural public schools.

“The average rural public school building is well past 40 years of age and cannot meet the demands of modern technology,” Lestina said. “Of the nation’s 80,000 public school buildings, at least one-third need extensive repair or replacement and two-thirds have troublesome environmental conditions such as the presence of asbestos or lead in water and paint. Roofs leak. Ventilation is poor; heating and air conditioning systems don’t work. Lighting is inadequate; plumbing is a problem. In short, the condition of these schools make it extremely difficult for teachers to teach and students to learn."

More than 100 national and regional organizations back the tax credit plan, including education and parent groups, rural and farm groups, education advocacy groups, religious and labor organizations, and business and professional groups.