01.14.2011 Facilities Planning, Financial Advisory, K-12 No Comments

CDE Announces QSCB Allocations

The California Department of Education (CDE) announced the allocation of approximately $849 million in Federal Qualified School Construction Bond (QSCB) authorizations to 61 California school districts. CFW would like to congratulate the following districts on their successful application:

  • Byron Union School District
  • Lindsay Unified School District
  • Palmdale Elementary School District
  • Rialto Unified School District
  • Saint Helena Unified School District
  • Solvang School District
  • Sonoma Valley Unified School District

State legislation requires that the 2010 QSCB allocations must be sold by July 14, 2011. If an allocation is not sold within that timeframe, CDE has stated that the allocation will be redistributed to the next applicant on the waiting list. A district’s position on the waiting list has been established by their percentage of free and reduced lunches. The waiting list can be found at www.cfwinc.com/news.html. CDE has indicated that it will continue to allocate QSCB authorizations to the waiting list until the pool is depleted.

Nearly $215 million in authorizations – or 30% – of the total 2009 QSCB allocation were unsuccessful in reaching the market. Issuers found the sale of QSCB bonds complicated without the proper guidance through the process. Once directed to proceed by our clients, CFW facilitated the sale of 100% of their 2009 authorizations.

To date, CFW has assisted districts in receiving over $260 million in Federally subsidized low interest rate bonds. Federal and State programs similar to the QSCB lower the cost of borrowing to address facility needs as well as the burden on the local tax base. CFW’s planning process and finance professionals integrate these programs with traditional facility financing options, such as General Obligation bonds, to improve academic achievement, enhance and maintain General Fund sustainability, and improve the appearance and functionality of school sites.

To view the full list of 2010 QSCB allocations, visit our website at www.cfwinc.com/news.html. Please call us at (510) 596-8170 if you have any questions or need assistance.

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