Board considers bond issue to leverage stimulus funds
June 16, 2009
Federal stimulus funds for facility improvements are being made available to public school districts through interest-free bonds via the Qualified School Construction Bond program. The Springfield school board discussed the possibility of participating in the program during its June 16 study session.
Missouri will be awarded $282 million over two years to allocate to school districts that pass a general obligation bond measure in 2009 or 2010. Each school district could then apply to receive a portion of the interest-free bonds available through the state.
Greg Bricker, the district’s investment advisor, said Springfield Public Schools is the “poster child” for this program. The district currently has excess bonding capacity and available debt-service funds which would enable it to issue a $40 million general obligation bond without having to increase its existing debt-service levy. Many school districts would likely have to approve a tax increase for a new bond issue, he said.
In Bricker’s estimation, SPS could issue a $50 million bond without increasing taxes by applying for the QSCB program. “It is my very conservative estimate that of that $50 million you could qualify for $10 million of it in interest-free bonds through QSCB,” he said.
“It sounds like you could get quite a bit more bang for your buck,” said board member Andy Hosmer.
To qualify, SPS would have to put a measure before the voters either in November 2009 or April 2010.
In the next few weeks the board will consider facility needs and make a decision about when to ask voters to approve a measure. The board would have to vote by Aug. 25 to place a request on the November ballot.