Thursday, March 15, 2012
Rep. REED in Salamanca this morning to unveil new bill
Congressman Tom Reed will submit new legislation by the end of the month which will amend the Internal Revenue Code and save taxpayer dollars by expanding the use of local bank-qualified bonds for capital projects. The official announcement of his bill was made this morning in Salamanca.
Under the bill, local governments and school districts would see their ability to utilize bank-qualified bonds increase from $10 Million annually to $30 Million annually. As the interest rate on bank-qualified bonds can be as much as a half-percentage point lower than traditional financing, taxpayers can save hundreds of thousands of dollars on a single bond issuance.
“This legislation is good public policy—it provides a means for school districts and local governments to make vital improvements is a more cost effective manner for taxpayers,” Reed said. “Tax dollars will be saved as the local government or school district will pay less in interest and fees. It will provide funding flexibility, which is particularly important to small upstate districts and communities. Most importantly, it keeps the control, financing and benefits right in the local community.”
Robert Breidenstein, Superintendant of Schools for the Salamanca City School District, joinded Reed at the announcement. The Salamanca City School District has utilized bank-qualified bonds to successfully make numerous necessary improvements to its facilities, including installation of a geothermal heating system which has significantly lowered the district’s energy costs.