Washington, D.C. -— U.S. Rep. Bob Etheridge’s (D-Lillington) legislation to provide for $25 billion in zero-interest school construction bonds was signed into law by President Barack Obama yesterday.
The America’s Better Classrooms (ABCs) Act, which Etheridge first introduced in his first term in Congress in 1998, is included in The American Recovery and Reinvestment Act.
It is unclear whether the law comes in time to assist Vance County with the construction of a new elementary school to replace the aging Clark Street Elementary School facility. County Commissioner Terry Garrison had advocated waiting to ratify the project until it became clear if stimulus funds would be made available for the effort.
“When I first introduced the ABCs Act a decade ago, educators from all across North Carolina told me how desperately our local communities needed help in funding school construction projects. Now the need is stronger than ever in North Carolina. I am pleased to say today that help is finally on the way,” said Etheridge.
“School construction funds will put North Carolinians back to work building quality facilities where our students can prepare to enter the 21st-century global economy. This is a win-win for North Carolinas workers, students and communities.”
The America’s Better Classrooms Act, will provide for $25 billion in 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. States and local communities would only have to pay back the principal. For every $1,000 in bonds, school districts would save up to $500.
North Carolina’s allocation will be approximately $551 million in school construction bonds, creating or sustaining more than 11,000 jobs in the state.
In total, The American Recovery and Reinvestment Act will create or sustain approximately 105,000 jobs by the end of 2010 in North Carolina. North Carolina lost 120,200 jobs in 2008, the fourth-highest loss in the country. Additionally, 3.1 million workers in North Carolina will receive a tax credit under the legislation.
The recovery plan includes unprecedented accountability measures, providing strong oversight and a historic degree of public transparency. A new www.recovery.gov Web site will allow the public to track their investments. The bill contains no earmarks.