April 25, 2005
April 25, 2005
Proposal will create 8,000 jobs, improve school infrastructure
LANSING – Governor Jennifer M. Granholm today highlighted details of her proposal to provide low-cost loans to school districts for the upgrade and repair of existing school facilities or the construction of new, smaller high schools which is part of her plan to create tens of thousands of jobs and jumpstart Michigan’s economy this year.
During a visit to Creston High School in Grand Rapids, the Governor said this program, which will make $500 million in zero interest loans available through the School Bond Loan Fund (SBLF), is part of a broader strategy to spur a rapid infusion of public and private investment in badly needed infrastructure projects.
“In tough economic times, school districts often put off needed repair and construction,” said Granholm. “This plan will not only put scores of Michigan women and men to work in a variety of jobs, from skilled trades to service and sales, it will also provide school districts with a low-cost tool to finance these projects now.”
Currently, school districts are able to borrow money through the SBLF to fund capital improvement projects. Under the Governor’s plan, additional money will be made available for a wider range of infrastructure improvements. School districts will be able to use these loans to address critical needs – leaking roofs, heating and cooling, maintenance projects, etc. – and will receive a five-year deferment on repayment.
In addition to providing funding for infrastructure improvements, the Governor’s plan will make funding available through the SBLF for the creation of new, smaller high schools of no more than 500 students. This program, which offers the same zero-interest loans for five years, is available to school districts with 800 or more high school students as a means of improving student achievement.
“The education components of my Jobs Today Initiative are a win-win for our schools and our communities,” said Granholm. “Not only are we creating needed jobs this year, but we are offering schools a more affordable way to address infrastructure and student needs.”
In order for communities to take advantage of the Governor’s proposal, legislative changes to the SBLF are needed. This legislation was introduced in the Legislature last week.
The Jobs Today Initiative is a three-year program to accelerate the pace of state and local infrastructure projects that were scheduled to begin over the next decade. First announced in the Governor’s 2005 State of the State Address, the initiative will create jobs in seven key areas, including: affordable housing construction and renovation; school improvement and repair; pollution cleanup; road improvements; long-term care facility construction and renovation; downtown development; and university campus improvements.
Granholm said last month’s 2005 budget agreement paved the way for many of the accelerated projects to begin this construction season. As part of the agreement, legislative approval was given to the $38 million in pollution cleanup projects as well as $220 million in projects to upgrade universities and community colleges. In addition, Granholm said $400 million in accelerated road projects will also begin this year.
In addition to asking the Legislature to approve changes to the SBLF, Granholm is asking them to adopt new provisions to allow cities to expand the boundaries of their downtown development zones which will spur new job creation and development projects.
“Jobs must be the first order of business for everyone in Michigan today,” Granholm said. “We can make our communities cleaner, safer, and more livable while we put people back to work.”
For more information visit www.michigan.gov/gov
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