The U.S. Dept. of Education predicts at least seven more years of enrollment growth. The Clinton Administration and many members of Congress have acknowledged that local school districts cannot shoulder the burden of school construction and repair alone, even if they are getting some help from their state governments. Until recently, the federal government provided virtually no assistance for school facilities. But there is a growing realization that fixing our school buildings is a national issue and demands a nationwide solution. A well-educated workforce is a national resource, especially as the U.S. economy enters the information age.
School districts borrow money for construction costs by selling bonds to private investors.
Later, they pay back investors with interest. The Clinton proposal aims to save school districts money because they would only have to pay back the amount they borrowed, not the interest that they accumulate over time. If someone pays the interest on your mortgage, in the long run you pay less for your house. School districts that can t borrow money on their own could join with other school districts, or have the State borrow money on their behalf, and still take advantage of the program. The other half of the interest payments will be distributed to states, which can then decide how they should be distributed among their public school districts.