In “Districts land no-interest bonds”, the Intelligencer New Era reports:
“…School District of Lancaster and Donegal School District were among 46 across Pennsylvania selected to receive zero-interest bond money for new construction projects… SDL, Donegal and the 44 other districts will receive more than $600 million in bonds made possible through the federal American Recovery and Reinvestment Act….The ARRA program will save the districts and taxpayers an estimated $513 million in financing costs, officials said.”
WATCHDOG: What is happening is the cost of interest is being shifted from local taxes throughout the country to federal taxes, and pushed down the road to another generation. However, if it puts people and resources to work these days, it would be good policy. Expenditures under the “American Recovery and Reinvestment Act” were supposed to stimulate the economy during 2010 to combat the Great Recession. Yet these construction projects will not take place until 2011 and possibly even 2012 which may end up being counterproductive and inflationary One of the main purposes of the Act was to fund “shovel ready projects.”
For example, were there competent leadership at the Lancaster Public Library on Duke Street, funding could have been sought for its renovation and expansion since plans were ready, private funding pledges were at hand, and construction could have started in a few months. What we are encountering, often to our discomfort, is much road improvement. In these cases, the projects were “shovel ready” and the work is most timely.
