State Could Get $2.2 Billion for School Construction

California would receive $2.2 billion for school construction and renovation under a massive school modernization bond program that is part of President Clinton’s 1999 fiscal year budget and was detailed by administration officials Saturday.

Vice President Al Gore and Education Secretary Richard W. Riley said the program, which requires congressional approval, would alter the way bonds usually work. In lieu of interest payments, investors would receive federal tax credits when they purchase special “modernization” bonds that local school districts could issue.

Gore announced the fund allocations for California and other states in a speech in South Florida; he said the specific figures were based on need and the size of enrollment. Riley discussed the proposal during an appearance in San Francisco.

The fate of the school bond initiative in Congress is uncertain. Although many members believe that local school districts need federal help, some Republican critics object that providing tax breaks for investors in school construction bonds would cut into the surplus the president promised in his proposed balanced budget.

Under the plan, the federal government would subsidize issuance of $19.4 billion in special 15-year bonds over the next two years--$9.7 billion annually in 1999 and 2000.

In California, the Los Angeles Unified School District would receive $697 million in new bond authority to use as it sees fit.

For other Southern California school systems that qualify for help, their proposed new bond authority under the initiative would be:

* Compton Unified, $43.2 million.

* Long Beach Unified, $69.1 million.

* Montebello Unified, $31.4 million.

* Pomona Unified, $25.8 million.

* Santa Ana Unified, $38.6 million.

* Bakersfield Elementary, $27.5 million.

* San Bernardino City Unified, $45.8 million.

* San Diego City Unified, $98 million.

“Far too many of our schools are old, crowded and rundown, and they lack state-of-the-art science labs and computer workshops,” Gore said in announcing the proposal. “There is nothing more important for America’s future prosperity and strength than giving our children a world-class education.”

Riley, speaking in San Francisco, declared that “America’s schools are wearing out,” with many classes overcrowded and playgrounds being used to accommodate portable, temporary classrooms.

Rep. Nita M. Lowey (D-N.Y.), a leading education advocate in the House, said: “The physical conditions of our schools is a national disgrace. In New York City, one in four classes is being held in areas not designated for classrooms.”

Half the bond authority would be allocated directly to the 100 school districts nationally that have the largest number of children from low-income families. The other half would be earmarked for states and territories to decide which districts deserve special assistance.

In addition, Clinton is asking Congress for $2.4 billion to expand the Education Department’s “qualified zone” program, which selects projects in districts in which at least 35% of students are eligible for free or reduced-price lunches.

Gore, speaking with reporters in a telephone conference call, emphasized that most decisions on how to use the new bond authority would be made by local communities.

Los Angeles Unified School Supt. Ruben Zacarias, speaking in the same telephone conference, said the district’s need for new buildings is one reason many schools are operating on a year-round basis. He also said the district projects that its enrollment will continue to grow during the next decade.

“We are going to need the space,” Zacarias said. “This is a national crisis.”