Bond allocation saves local school districts millions - Related Files
Bond allocation saves local school districts millions
May 26, 2010 - The Georgia State Financing and Investment Commission (GSFIC) approved a resolution today allocating more than $140 million of federally subsidized qualified school construction bonds (QSCBs) to 13 school systems throughout the state.
QSCBs provide 100 percent interest subsidy from the US Treasury for qualifying bonds issued by school districts for the construction or renovation of school facilities, equipment, or land acquisition for school facilities. Today's approval will save an estimated $46 million for those 13 school districts in debt payments.
Allocations were awarded based on applications submitted by local districts with current debt capacity and eligible projects.
QSCBs will provide substantial debt service savings to school districts and enable local projects to move forward.The QSCB Program was authorized under Title I of Division B of the American Recovery and Reinvestment Act (ARRA) of 2009 and amended by the HIRE Act in 2010 to authorize the use of the direct interest rate subsidy.
The 13 school districts approved for QSCB are Bulloch, Cherokee, Hall, Heard, Marion, Meriwether, Newton, Stephens, Treutlen, Upson, Rabun, Carrollton and Thomasville.Bond proceeds will be used for construction of new schools, school renovations, or equipment in these school districts.
GSFIC also approved the application process for the remaining $307 million in QSCBs and $107 million in Qualified Zone Academy Bonds (QZAB) which also provide 100 percent interest rate subsidy for qualified bonds.
Applications from school districts for both programs are due August 1, 2010 with allocations by GSFIC expected in the fall.