Success Stories

It’s one thing to be told that schools can use stimulus money to repair roofs and replace unsafe wired glass. It’s another to learn from others about how they are using SFSF funds or QSCB interest-free loans to complete particular projects. This webpage provides those examples. We will try to update this page frequently. If you have a Success Story of your own that you want to share, please contact us: dianas@safti.com

California

California public school districts are applying now for the Qualified School Construction Bonds program. State officials estimate school districts will be able to save about 50 percent of the cost of their bond, which is what they would typically pay in interest. Rather than receiving interest payments, those who buy the bonds would get tax credits.

"It’s really a dynamic opportunity," said Thomas Ancell, assistant superintendent of the Little Lake City School District in Santa Fe Springs… That means Little Lake's savings from the QSCB program, if it uses the $9 million it has available, could total $4.5 million, Ancell told trustees at a school board meeting. "It's really a win-win situation," he said. "The only down side is that the state could run out of these (tax credits). That's why we want to get this done right away." (From the Whittier Daily News, August 17, 2009)

Nebraska

The Omaha school district plans to spend at least $40 million on school construction in the coming year. And it doesn’t require a public vote…Under the stimulus program, the Omaha Public Schools is authorized over the next two years to sell nearly $35 million in interest-free Qualified School Construction Bonds…. Finance administrator Dennis Pool told school board members that the bonds will allow the district to save resident taxpayers more than $13 million in interest over the life of the bonds, compared to typical bonds with no break on interest…. “You’d have a lot of flexibility to make some decisions,” Pool told the board…. The interest-free Qualified School Construction Bonds are specific to public school construction and qualify investors for income tax credits in lieu of bond interest payments, according to IRS guidance. (From Omaha World-Herald, August 4, 2009)

North Carolina

The state of North Carolina was issued $275,772,000 from the ARRA for 2009 Qualified School Construction Bonds, zero-interest bonds for school construction, renovation and repair. Two examples of local districts putting these tax-credit bonds to work include:

• Nash-Rocky Mount Public Schools — $2.39 million. The school district has plans to use the money for two upcoming construction projects.
• Edgecombe Count schools — $1.58 million. The school district has a long list of projects, large and small.

Tennessee

Sullivan County is putting the wheels in motion to seek up to $20 million in low- or no-interest federal bonds for school construction, renovation and maintenance. Director of Schools Jack Barnes, notified of the Qualified School Construction Bond (QSCB) program, said the federal stimulus program has very few strings attached. Barnes said the bonds, if received, likely would go toward a more than $100 million school building and renovation program… The money must be spent within three years, and 10 percent of the money must be spent in the first six months. Barnes said the idea is to get the money into the economy and help the construction business….Tennessee is to receive $184 million, but after the Memphis area received bond money, a little less than $122 million remains available. (From Time-News, August 5, 2009)

Wisconsin

In Wisconsin, demand for QSCB zero-interest bonds outstrips supply six-to-one. Fifty-five districts have submitted requests for $550 million worth projects for bond funding; the state has the authority to cover interest payments on a little more than $98.6 million of the school bonds, not counting a $72.1 million allocation made specifically for Milwaukee Public Schools for maintenance projects. The state has said it will favor projects focusing on early education, school health and safety, environmental conservation and technology.

West Virginia

In West Virginia, the state teamed up with Guggenheim Partners, LLC, an international finance services company, to issue $30 million in QSCB zero-interest bonds for school repairs. The School Building Authority has already lined up school districts who will use the funding to:

• add or renovate school buildings.
• improve heating, air conditioning and energy efficiency.
• roofing repairs.