[Congressional Record (Bound Edition), Volume 145 (1999), Part 6]
[Extensions of Remarks]
[Pages 7994-7995]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCTION OF THE STATE INFRASTRUCTURE BANKS FOR SCHOOLS ACT OF 1999

                                 ______
                                 

                         HON. ELLEN O. TAUSCHER

                             of california

                    in the house of representatives

                        Thursday, April 29, 1999

  Mrs. TAUSCHER. Mr. Speaker, today I am introducing the State 
Infrastructure Banks for Schools Act of 1999. I urge my colleagues to 
support this important piece of legislation.
  It is a distressing fact that across our Nation we have nineteenth 
century schools and libraries for twenty-first century students. In our 
inner-cities, rural communities, and suburban neighborhoods, children 
are attending schools where toilets clog, computers cannot link to the 
Internet, and roofs leak. Public libraries do not fare much better, 
often lacking adequate space to house their materials or to run after-
school reading programs. And it is our kids who suffer as a result.
  By now we all know that our Nation's schools require an overwhelming 
$112 billion

[[Page 7995]]

to repair America's education infrastructure. Behind this glaring 
statistic is the additional need for library construction. The one 
source of Federal aid to libraries, the Library Services and Technology 
Act, no longer covers major construction of libraries. If we do not 
start investing in our schools and libraries immediately, we will end 
up paying a much higher price down the road for graduating students who 
will not be adequately prepared to compete in the New Economy.
  In fact, studies now reveal the obvious: a direct correlation exists 
between the condition of school facilities and the academic achievement 
of our students. That's right, our kids grades are affected by the 
state of their school. This should come as no surprise. It is difficult 
to learn when the roof is leaking or blackouts occur because too many 
computers are on.
  We also know that 50 percent of a child's intellectual development 
takes place before the age of four. Our nation's public and school 
libraries play a critical role in a child's early development because 
they provide a wealth of books and other resources that can give every 
child a head start on life and learning.
  In my state of California, 61 percent of our schools are over 40 
years old, and public school enrollment is expected to exceed 6 million 
students by the turn of the century, yet large numbers of students are 
already being housed in temporary buildings. As states around the 
nation, like California, adopt mandated class size reductions, more and 
more classroom space will be needed. The state already has 1.3 million 
students in grades one through three who require an astonishing 6,500 
additional classrooms to meet class size reduction mandates.
  The latest statewide library facility needs assessment for California 
called for $2 billion for approximately 425 projects. In addition, the 
deplorable state of America's public school libraries' collections has 
increased the demands on public libraries. In many instances, public 
libraries substitute for school libraries, thereby creating a higher 
demand for material and physical space to house literature and 
educational computer equipment. We know that summer reading programs at 
public libraries are the most important factor in helping children 
avoid what educators call ``summer learning loss.''
  With this in mind, we need, first and foremost, to find creative 
ways, in the age of shrinking budgets, to find the necessary dollars to 
start rebuilding our educational infrastructure. That is why I am re-
introducing my State Infrastructure Banks for Schools Act. This common-
sense measure would create infrastructure banks at the state level to 
provide a range of loan and credit options, to help finance locally 
supported projects. The use of State Infrastructure Banks (SIBS) will 
provide much-needed and cost-effective financial assistance to our 
local districts to rebuild, repair or replace their current 
facilities--without placing a constant strain on the Federal treasury 
or the American taxpayer.
  Just as importantly, with SIBs, school districts and counties could 
avoid bond market pressures to borrow more than they actually need 
which can often make a project unacceptable to local voters. We have 
seen this happen several times in my District alone. Our local leaders 
know how much is needed to fix up their schools and libraries, and they 
rightly refuse to borrow more than necessary. By supporting this 
proposal, we are not only wisely utilizing limited federal funds, but 
we would be saving local taxpayers' money otherwise spent on inflated 
bond requests, fees, and other administrative costs associated with the 
for-profit market.
  Specifically, SIBs will be created with federal seed money and offer 
a flexible menu of loan and credit enhancement assistance, terms, and 
maturities--all of which will allow communities to save local taxpayer 
dollars. As loans are repaid, the SIBs funds would be replenished and 
the banks could make new loans or loan guarantees to other school and 
library infrastructure projects.
  Our children need to feel pride in their schools and libraries. It is 
my hope that my legislation is one of several first steps that can be 
made towards addressing this overwhelming issue of school and library 
construction. It is no secret that we need to educate our kids in a 
safe and supportive environment if we expect them to achieve in the 
21st century.

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