Following passage of the health care bill, President Obama and congressional Democrats now seek to reform the country's financial sphere with a financial overhaul bill.  The 1,336-page bill includes key provisions that would negatively impact commercial real estate, such as risk-retention provisions, regulation of over-the-counter (OTC) derivatives, and new reporting requirements for real estate investors.

A March 25 letter, signed by AGC and more than 20 other organizations, to Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and Richard Shelby (R-Ala.) urged the Senators to re-think the bill's current language regarding securitization, new accounting standards, and new regulatory capital guidelines.  The letter states that these provisions "create tremendous uncertainty and impact credit availability."

Now that the House passed the Student Aid and Fiscal Responsibility Act of 2009, which authorizes more than $4 billion for elementary and secondary school facility projects over the next two fiscal years, the Senate is currently working on its version of the bill.

The House version of the bill authorizes $2.1 billion in 2010 and 2011 to renovate and modernize facilities for elementary and secondary schools (K-12), and authorizes $2.5 billion in 2011 to renovate and modernize facilities for community colleges. AGC has long-advocated for increased federal investment in school construction, as there is substantial opportunity for investment in upgrading and improving the unmet needs for school construction and renovation, which is estimated to be $3.7 billion. The average age of a public school building is estimated to be over 40 years old, the same age that schools have been documented to deteriorate.

The bill was referred to the Senate Committee on Health, Education, Labor, and Pensions (HELP). Committee staff currently working on the bill indicated that the Senate will be writing their own bill language, but that the goal is to match the numbers in the House bill. The unofficial timetable is to finish the bill and have it to the president before the end of the year to maximize the savings and effectiveness of the student aid portions of the bill. Given this timeframe, it is unlikely that there will be time for any hearing on the legislation, as the health care debate has presently taken the majority of attention and resources.

While AGC supports the overall bill, it includes the same Buy American language as was included in the American Recovery and Reinvestment Act (ARRA) that AGC continues to oppose. Committee staff currently working on the bill has indicated that while they would like to keep the Buy American language in the bill, they see it as unlikely to make it into the final Senate language. AGC will urge Senators to support the bill without the Buy American restrictions.

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On September 17, 2009, the House passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, which authorizes more than $4 billion for elementary and secondary school facility projects over the next two fiscal years, and ensures that school districts will receive funds for school modernization, renovation and repairs that create healthier, safer and more energy-efficient teaching and learning climates. The bill allocates the same percentage of funds to school districts that they receive under Part A of Title I of the Elementary and Secondary Education Act, except that it guarantees each such district a minimum of $5,000. The bill also provides grants to states to help community colleges finance new construction, modernization, renovation and repair projects.

While AGC supports the overall bill, it includes the same Buy American language as was included in the American Recovery and Reinvestment Act of 2009 (the Recovery Act).

AGC has long-advocated for additional investment in school construction, as there is substantial opportunity for investment in upgrading and improving the unmet need for school construction and renovation, which is estimated to be $3.7 billion. The average age of a public school building is estimated to be over 40 years old, the same age that schools have been documented to deteriorate.

The bill now moves to the Senate for consideration. AGC will urge Senators to support the bill without the onerous Buy American restrictions.

On May 14, the U.S. House of Representatives overwhelmingly approved legislation to modernize, upgrade and green America's schools by a vote of 275-155. The 21st Century Green High Performing Public School Facilities Act (H.R. 2187) invests billions of dollars in school repair and renovation projects that would create safer, healthier and more energy-efficient learning environments for students.  

The bill would authorize $6.4 billion for school renovation and modernization projects for fiscal year 2010, and would ensure that school districts quickly receive funds for projects that improve schools' teaching and learning climates, health and safety and energy efficiency. The measure distributes funds by allocating the same percentage of funds to school districts that they receive under Part A of Title I of the Elementary and Secondary Education Act, except that it guarantees each such district a minimum of $5,000.

Below are estimates of the amount of funding that each state and school district would receive to modernize, upgrade and repair school facilities under the Act, as calculated by the Congressional Research Service:
Click here to download state-level data (PDF, 10KB)
Click here to download school district-level data (PDF, 775KB)