March 18, 2010

Congressional Delegation Announces over $41 Million in Recovery Act Bonds for School Construction Projects Throughout Rhode Island

Washington, D.C. – Rhode Island’s congressional delegation today announced that $41,296,000 in school construction bonds has been allocated to Rhode Island under the American Recovery and Reinvestment Act of 2009 (ARRA). This funding will help finance the construction, rehabilitation, and repair of schools throughout the state.

“At a time when towns and cities face tough budget situations, these federal construction bonds will help the state and local governments obtain lower-cost financing to build, renovate, and repair our public schools,” said Reed.

“The greatest investment we as a nation can make is in our children and their future,” said Whitehouse. “This is yet another example of the Recovery Act promoting economic development, spurring job creation, and providing an essential investment in our state’s long-term economic stability.”

“In the globally competitive marketplace of the 21st century, a quality education is a prerequisite for achieving the American Dream and having a job that can support a family. Getting that education is contingent not only on dedicated teachers and committed students, but a modern educational environment that facilitates learning,” said Kennedy. “In addition to preparing students for the jobs of the future, this funding will create jobs now for hardworking Rhode Islanders.”

“Providing safe, healthy, and modern school buildings for our students is critical to their success,” said Langevin. “This funding will ensure that our schools reflect the commitment we have made to our children and their families to give them the best education possible, in addition to creating new construction jobs in our state.”

Allocated in ARRA, qualified school construction bonds help state and local governments obtain low-cost financing for much needed public school improvements and construction. Investors who buy these bonds receive federal income tax credits at prescribed tax credit rates in lieu of interest. These tax credit bonds essentially allow state and local governments to borrow without incurring interest costs.


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