Washington, D.C. — U.S. Rep. Bob Etheridge (D-Lillington) announced today that his school construction legislation, The America’s Better Classrooms Act of 2007, will be included in the economic recovery package Congress is writing.
Etheridge’s proposal would provide for $448 million for North Carolina, creating or sustaining 10,752 jobs in the state.
“By investing in school construction, we can not only provide 21st century learning facilities for our students, but we can generate jobs as well. This is a win-win proposal for North Carolina’s children, communities and workers,” said Etheridge.
The House Ways and Means Committee today released the details of the economic recovery package that are under the committee’s jurisdiction, including the ABCs Act. Etheridge is the only N.C. member of the Ways and Means Committee. Etheridge first introduced the bill in his first term in Congress in 1997.
On January 7, Etheridge asked President-elect Obama to include the ABCs Act in the economic recovery plan. He has also been working with Ways and Means Committee Chairman Charlie Rangel for the act to be included. Americans could be put to work on school construction projects as early as 30 days after the legislation becomes law, creating an immediate economic benefit.
The ABCs Act would provide for zero-interest school construction and modernization bonds to states and local communities. The federal government would provide tax credits to the bond holder for the interest normally paid on a bond. State and local governments would only have to pay back the principal, meaning funds used to pay bond interest would be freed for other education needs.
For each $1,000 of school bonds, states or local school districts would save as much as $500 in total payments. The bill would provide for $26 billion over the next two fiscal years for zero-interest school modernization bonds.
The Ways and Means Committee could take action as early as next week on the economic recovery package. The bill would then move to the full House for a vote.