GOVERNOR KAINE ANNOUNCES ALLOCATION OF $92 MILLION IN ARRA FUNDS TO SCHOOLS
- Bonds to fund energy, renovation and construction projects

FROM THE OFFICE OF THE GOVERNOR

January 15, 2010

Contact:                 Gordon Hickey
Phone:                   (804) 225-4260
Cell Phone:           (804) 291-8977
Internet:                www.governor.virginia.gov


RICHMOND -Governor Timothy M. Kaine today announced the allocation of $92.1 million in Qualified School Construction Bonds (QSCB) for 133 projects in 23 localities across Virginia. The no-interest bonds, established by the American Recovery and Reinvestment Act, are available to localities for K-12 school energy, renovation, and construction projects. Today's announcement is the second allocation from approximately $191 million authorized for Virginia through the QSCB program in 2009. Funds were allocated by Executive Order 110 which lists the specific recipients of the bond proceeds.

"These projects will advance two of the Commonwealth's top priorities - education and energy efficiency," Governor Kaine said. "The projects will not only create jobs and lower ongoing costs for localities, they will improve our children's learning environment and promote green technology to decrease our reliance on traditional energy sources."

Of the $92.1 million, $53.1 million has been allocated to 120 school energy projects that received the highest competitive scores and had the greatest energy efficiency impact. The average project payback for the projects is 7.7 years and an annual estimated energy savings of $0.43 per square foot. The school projects are in 20 localities.

Competitive applications were received from 39 localities for 177 projects costing $222.1 million. Working together, the Department of Education and Department of Mines, Minerals and Energy evaluated each application and scored the projects against criteria that included energy savings, ready-to-go status, project payback, and the composite index.

In addition, $39 million in bonds were allocated to six localities with 13 school construction projects on the Board of Education's First Priority Waiting List. This is the second time that allocations have been made to help finance projects on the List. "In September, I allocated $71.6 million in QSCB bonds to needed projects on the First Priority Waiting List," Governor Kaine said. "Because of its success, this low-cost financing alternative is now being extended to new projects added to the List this fiscal year. My decision will help localities in these tough budget times meet the needs of their students and allow scarce resources to remain in the classroom."

The bonds will be sold by the Virginia Public School Authority and will not affect the state's debt capacity.

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