State BOE releases guidance, allocations for QSCB program

The N.C. State Board of Education released its guidance for the state's share of the Qualified School Construction Bonds program (QSCB), which includes an application form and allocations for 2009. This program enables the federal government to issue bonds with a 0 percent interest rate.

The ARRA included $11 billion each for QSCBs for 2009 and 2010, with 40 percent of the funds being assigned to the largest local education agencies around the nation, and 60 percent being assigned to states. The state allocations are determined by a formula that takes into account student population, relative wealth and other factors. The state was given an allocation of $187,167,000 for 2009. The state and large LEA allocations will be recalculated for 2010.

Five North Carolina counties – Mecklenburg, Wake, Guilford, Forsyth and Cumberland – received automatic allocations for 2009, ranging from $12.2 million for Forsyth to almost $26 million for Mecklenburg. The State Board of Education has elected to allot each of the remaining 95 county systems and 15 city systems a share of the $187.17 million state allocation. Each LEA received an allotment of at least $1 million.

Counties must use the allocation by Dec. 31, 2009, or the allocation will be lost. Individual counties cannot carry an allocation forward. However, states are allowed to carry any unused allotment from 2009 to 2010.

While counties cannot carry their allotments into 2010, if they choose not to use their 2009 allotment, it can revert to the state, which could then distribute it to another LEA.

Bond proceeds must be used for the construction, rehabilitation or repair of a public school or for land acquisition for such a facility. QSCB proceeds cannot be used for athletic stadiums or stand-alone buildings that are not used for the education of children, such as central office facilities. An LEA may keep up to 2 percent of the proceeds for administrative costs.

The application must be postmarked by July 31, 2009 and must be submitted via certified mail. The bonds must be issued prior to Dec. 31, 2009.

For more information, contact Dr. Ben Matthews, Director of School Support, at (919) 807-3501, or Mary Gruebnau, School Planning, at (919) 807-3556.