MISSISSIPPI: The Ocean Springs and Moss Point school districts moved this week to apply for $3 million each in bonds provided by the federal stimulus bill to cover the cost of school repairs and renovations. The two districts seek shares of the $132 million in no-interest Qualified School Construction Bonds allocated to the state for 2009 through stimulus action. Each is applying for the maximum possible allocation. The bonds can be used for construction, repairs or renovations, or for acquiring land on which a public school facility will be built.

On Tuesday, the Ocean Springs district passed a resolution seeking the bond money that its business manager Donna Nester said would go toward the new Ocean Springs High. The district has $11 million lined up for the school being built on Old Spanish Trail, and voters passed a 5.5- to 6-mill increase in property taxes to cover the remainder of the $50 million cost. A mill amounts to a dollar in tax for each $1,000 of assessed property value. The high school is expected to open in December 2011. "This was one of those things we'd hoped would come down, and it did," Nester said.
The Moss Point school board approved a resolution Monday to apply for the bonds, which would help renovate Magnolia Junior High, said Chief Financial Officer David Rubenstein. The school has been closed since being damaged by Hurricane Katrina in 2005. The Federal Emergency Management Agency is covering most of the Magnolia work, but the district will be responsible for some costs, such as substantial roof replacement, building a new entryway and lobby area, and installing new windows. Rubenstein said that the bonds are "first come, first serve," and Moss Point should be one of the first in line. He estimated that the district could save $800,000 to $1.1 million by not having to pay interest on the loan.

NORTH CAROLINA: Local schools will benefit from zero- or low-interest bonds for construction, established as part of the federal stimulus package. Nash-Rocky Mount Public Schools and Edgecombe County Public Schools both have been allotted funds from the 2009 Qualified School Construction Bonds program. The program offers funds for the specific use of new construction, school rehabilitation or repair and land acquisition in conjunction with those projects. The state was issued $275,772,000 from the American Recovery and Reinvestment Act of 2009 to disperse to schools. Edgecombe Count schools were allocated $1,576,307.06. Nash-Rocky Mount schools were allocated $2,391,375.55.

In Nash-Rocky Mount schools, the money potentially could be used for two upcoming construction projects, Special Assistant for Auxiliary Services Mark Strickland said. He said that the people selling bonds will receive a tax credit in lieu of the interest money they’d typically receive. A zero-interest bond would be a “win-win” for the district, Strickland said. “It would just mean that we wouldn’t have to pay any interest, we’d just have to pay back the principal,” Strickland said. “In the end, there could be significant cost savings.” Edgecombe County schools Community Relations Director Diane LeFiles said the district has a long-range facilities plan that serves as a guide for decisions about construction and renovation projects. She said there are numerous projects to be completed, both large and small. “We have been keeping a close eye on the potential of access to construction money that may become available from the federal stimulus package,” LeFiles said. “We are ready to take advantage of any opportunity to improve the learning environment for Edgecombe students.” Districts have until July 31 to turn in a proposed spending plan to designate the funds — a process Strickland said was in progress for Nash-Rocky Mount schools. The funds have to be issued by Dec. 31 and spent within three years of the issue date. Districts receiving funds also have reporting requirements to make sure funds are being used appropriately.

A down economy is a prime time for school construction because firms are looking for work, and workers are looking for jobs, said N.C. Department of Public Instruction School Support Director Ben Matthews. He said the cost of materials also goes down because companies have it backed up and want to use it. “This is a great opportunity for schools to capitalize on an excellent funding source,” Matthews said. “Zero interest is a wonderful thing when you get a deal like that.”