One state, Pennsylvania, allocated all of its available bonding authority to the four largest school districts in the state, ignoring the needs of rural and small town districts. QZAB proceeds can be used to renovate or equip school facilities and for other programs such as curriculum or technology development. A public-private partnership is required with the private partner providing support equal to 10 percent of the size of the bonds issued. This support can be in the form of equipment, software, internships, personnel time, technical services, or mentors, and can be provided upfront or over a period of time. Purchasers of the security receive a taxable tax credit in lieu of interest.
School districts repay the face value of the bonds.
Ten additional states are considering the program. All materials subject to copyright by the American Library Association may be reprinted or redistributed for noncommercial purposes with appropriate credits.