[Congressional Record Volume 147, Number 49 (Thursday, April 5, 2001)]
[Extensions of Remarks]
[Page E567]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




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

                                 ______
                                 

                           HON. JUDY BIGGERT

                              of illinois

                    in the house of representatives

                        Wednesday, April 4, 2001

  Mrs. BIGGERT. Mr. Speaker, in 1995 and 1996, the United States 
General Accounting Office (GAO) released reports outlining the 
deplorable conditions in many of our nation's elementary and secondary 
schools. A GAO survey showed that America's schools are in need of an 
estimated $112 billion in repairs and that $11 billion alone is 
required to get schools in compliance with federal mandates requiring 
the elimination of hazards such as asbestos, lead in water, radon, and 
to improve accessibility for the disabled.
  It's no small wonder these repair bills are mounting--the U.S. 
Department of Education has found that the average age of a public 
school building is 42 years. And while our school buildings are aging, 
student enrollments are expanding--putting even more pressure on a 
crumbling infrastructure. According to the Projections of Education 
Statistics to 2010 by the National Center for Education Statistics, 
total K-12 student enrollment in 2010 will exceed 53 million.
  The decline in the condition of our nation's schools is not limited 
to one particular region. Every state has schools that are in need of 
repair and modernization, and my home state of Illinois is no 
exception. The Illinois State Board of Education estimates that over 
the next five years, Illinois' school districts will need more than 
$8.2 billion in infrastructure work.
  Mr. Speaker, as a strong supporter of local control of 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 $1.4 billion in school 
construction bonds over a five-year period. Illinois Governor George 
Ryan's ``Illinois FIRST'' program later added another $ 1.1 billion to 
extend the program.
  But 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. In an attempt to 
assist in their efforts, Congress last year provided over $1 billion in 
grants for school modernization purposes. But that amount is like a 
drop in the bucket, and our schools continue to 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 burgeoning demand for elementary and secondary 
education school repair. This legislation is a slightly modified 
version of legislation I introduced last year and is the companion bill 
to S. 119, which was introduced in the Senate by my friend and 
colleague, Senator Olympia 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 can be used in 
two ways. One, at least 50 percent of the loans are designated to pay 
the interest owed by states and localities to bondholders on new school 
construction bonds that are issued through the year 2003. And two, the 
loans can be used to support State revolving fund programs or other 
State-administered school modernization programs. These loans will be 
interest-free for the first five years, with low interest rates to 
follow.
  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 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. This is a fund that 
some--including former Federal Reserve Board Governor Lawrence B. 
Lindsey--have called for liquidating,
  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 no greater than 4.5 percent. Again, no payment will be 
owed, and no interest will accrue for five 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 also am 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. Time and 
again, they have told 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.

                          ____________________