[Congressional Record Volume 146, Number 33 (Wednesday, March 22, 2000)]
[Extensions of Remarks]
[Page E373]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E373]]



 INTRODUCTION OF THE BUILDING, RENOVATING, IMPROVING, AND CONSTRUCTING 
                       KIDS' SCHOOLS ACT OF 2000

                                 ______
                                 

                           HON. JUDY BIGGERT

                              of illinois

                    in the house of representatives

                       Wednesday, March 22, 2000

  Mrs. BIGGERT. Mr. Speaker, the U.S. General Accounting Office [GAO] 
released reports in 1995 and 1996 outlining the deplorable conditions 
in many of our Nation's elementary and secondary schools. A sample GAO 
survey showed that America's schools are in need of an estimated $112 
billion in repairs and that $11 billion alone is needed to get schools 
in compliance with Federal mandates requiring the elimination of 
hazards such as asbestos, lead in water and radon, and to improve 
accessibility for the disabled.
  The decline in the condition of our Nation's schools is not limited 
to a particular region. Every State has schools that are in need of 
repair and modernization, and my home State of Illinois is no 
exception. Last August, the Illinois State Board of Education released 
the results of its own survey, which showed that over the next 5 years, 
Illinois' school districts will need more than $7 billion in 
infrastructure work.
  Mr. Speaker, as a strong supporter of local education, I believe that 
school construction and renovation are areas best directed by States 
and local communities. That's why I applaud those States that have 
passed measures designed to help schools replace and modernize their 
facilities. Illinois is one of those States that have stepped up to the 
plate in this regard.
  In December 1997, the Illinois General Assembly passed a school 
construction law to address the shortage of classroom space brought on 
by population growth and aging buildings. To fund the program, the 
General Assembly approved the sale of $1.1 billion in school 
construction bonds over a 5-year period. Just last year, Illinois 
Governor George H. Ryan's Illinois FIRST program increased funding for 
the school construction grant program by $1 billion, adding another 
$290 million for fiscal year 2000.
  Despite the best efforts of Illinois and other States, the long-term 
costs of repairing and upgrading our Nation's schools are proving more 
than many State and local governments can bear. And in this era of 
budget surpluses, it would not be right for Congress to sit idly by and 
let schools fall into further disrepair and obsolescence.
  That's why I rise today to introduce the Building, Renovating, 
Improving, and Constructing Kids' Schools (BRICKS) Act--legislation 
addressing our Nation's exploding need for elementary and secondary 
education school repair. This legislation is a slightly modified 
companion bill to S. 1992, which was introduced in the other chamber by 
my friend and colleague, Senator Snowe of Maine.
  Here is what the BRICKS Act does. First, it provides $20 billion in 
interest-free and low-interest Federal loans to support school 
construction and repair at the local level. These loans will be used to 
pay the interest owed by States and localities to bondholders on new 
school construction bonds that are issued through the year 2003. These 
loans will be interest-free for the first 5 years, with low interest 
rates to follow.
  Second, the BRICKS Act allocates these school construction loans on 
an annual basis, using the title I distribution formula. Monies would 
be distributed to States at the request of each State's Governor and 
without a lengthy application process.
  The money provided for under this bill is used to support, not 
supplant, local school construction efforts. These loans are designed 
to allow States and localities to issue bonds that would not otherwise 
be made due to financial limitations.
  Third, and perhaps most importantly, these loans will be distributed 
in a fiscally responsible manner that does not take away from the 
Social Security program or the projected on-budget surpluses. 
Specifically, my bill will generate funding from the Exchange 
Stabilization Fund [ESF]--a fund that was created through the Gold 
Reserve Act of 1934 and that currently has more than $40 billion in 
assets.
  Finally, the school construction and modernization loans are not a 
government handout. The BRICKS Act requires a State entity or local 
government that receives funding under this legislation to repay the 
loan to the Exchange Stabilization Fund. At the same time, this 
proposal ensures that States and local governments will not be burdened 
by excessive interest rates--or be forced to repay the loan in an 
unreasonable amount of time.
  After the first five interest-free years, the interest rates on these 
loans will be set at the average prime lending rate for the year in 
which the bond is issued, but it cannot exceed 4.5 percent. Again, no 
payment will be owed, and no interest will accrue for 5 years, unless 
the Federal Government prior to that time meets its financial 
commitment to funding 40 percent of the costs borne by local school 
districts for providing special education services, as is currently 
required by Federal law.
  Mr. Speaker, the BRICKS Act is a fiscally responsible answer to a 
serious national problem. I am proud to offer this legislation for the 
House's consideration. I am more pleased to note how this legislation 
will help schools located in the 13th Congressional District of 
Illinois, which I represent. As my colleagues may know, the 13th 
district encompasses some of the fastest growing communities in the 
nation.
  School administrators in my district have made it known that school 
construction and renovation have failed to keep pace with the explosive 
population growth and increased rates of student enrollment. What's 
more, they tell me that the growth in tax revenues from new households 
has not kept up with the costs of construction needed to serve them. By 
providing schools and States with more fiscal flexibility and options, 
the BRICKS Act addresses this problem in my congressional district and 
in districts across the United States.
  I urge my colleagues to support the BRICKS Act. This timely 
legislation makes responsible use of limited Federal resources and 
effectively meets a commitment to giving every child an opportunity to 
attend school in an environment that is physically safe and conducive 
to learning.

                          ____________________