[Congressional Record Volume 148, Number 102 (Wednesday, July 24, 2002)]
[Senate]
[Page S7310]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAIG:
  S. 2777. A bill to repeal the sunset of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 with respect to the treatment of 
qualified public educational facility bonds as exempt facility bonds; 
to the Committee on Finance.
  Mr. CRAIG. Mr. President, I rise today to introduce. The Permanent 
Tax Relief for School Construction Act to make permanent the tax 
benefits we enacted last year relating to private activity bonds for 
school construction.
  Last year, we approved a tax bill which had many important 
provisions. Unfortunately, these provisions only last until the end of 
2010. That's a pretty poor way to engineer the tax code. American 
families and businesses only have nine years to reap the benefits of 
lower taxes, and right when they are getting used to the current tax 
code, it will revert to its pre-2001 level. That is simply unfair. In 
order to plan for the long term, families and businesses need to know 
that the lower taxes we enacted last year will be permanent.
  An important part of the tax package that we approved last year was 
the inclusion of elementary and secondary public education under the 
private activities for which tax exempt bonds are issued. This 
provision will make it easier for States and school districts to raise 
money to build schools. In a State like mine, where there is a pressing 
need for school construction and not much revenue to fund it, this tax 
provision is very important. To see it end in 2010 would prevent many 
necessary facilities from being built.
  The harm caused by the sunsetting of this tax provision is clearly 
illustrated by the plight of many of my State's school districts. 
During may travels throughout Idaho, I visited quite a few schools, 
many of which were the products of New Deal work projects in the 
1930's. These schools are falling part now, though, and school 
districts have a very difficult time raising the necessary revenue to 
construct new buildings. Idaho, like many States, is suffering from 
reduced tax revenue, so aid from the State is just not available to 
supplement school districts' revenue. Another problem is that it takes 
a super-majority to pass a levy to raise property taxes to finance 
school districts, and in quite a few of Idaho's districts, taxpayers 
are already paying high taxes. In many instances, the revenue isn't 
there for school districts.
  We recognized that problem last year and helped out school districts 
by providing tax incentives for school construction bonds. This type of 
tax relief is the best way we in Washington can help school districts. 
Even though we've been increasing the Federal role in education over 
the past few years, education matters such as school construction are 
still primarily a local function, as they should be. Every step we take 
to insert a Federal role into this local authority is a step that must 
be carefully considered. By providing tax incentives for these local 
school districts, though, we are not undermining their authority. We 
are giving them tools to help themselves, and help the children they 
are serving. Let's make sure that the tax code lets them continue to 
help these children after 2010, so that no child is ever left behind.
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