A note about funding
The District has found a way to meet its needs without burdening the local taxpayer, by using, in part, QZABs or Qualified Zone Academy Bonds. Congress created the QZAB program, which provides bondholders with a federal tax credit in lieu of a cash interest payment. The federal government provides the interest payment, so the district then is typically only responsible for repaying the value of the bond. This reduces the burden on local communities when financing school renovation.
But what about the value of the bond? In our case, due to the relative poverty of our area, we realize a 98% reimbursement rate from the State on approved capital projects. That leaves a local share of only two percent. However, the District still has $1.4 million in EXCEL grant funds, with which it can pay that two percent.
Moreover, the State reimburses its 98% based on a calculation that includes an interest rate that districts using don’t actually pay, thereby reimbursing a bit more than the district actually spent.
Please note December 12 on your calendar as voting day, from noon to 9 p.m.