Statement of Paul Vallas, Chief Executive Officer, Chicago Public Schools

Testimony Before the House Committee on Ways and Means

Hearing on President's Tax Relief Proposals that Affect Individuals

March 21, 2001

Good afternoon everyone, and thank you House Ways and Means Committee chairman and members for the opportunity to discuss how the federal government can help us at the local level rebuild America's schools.

Since 1996, the Chicago Public Schools has committed $2.6 billion to improving school infrastructure through our Capital Improvement Program.

Our main objectives have been to reduce overcrowding, improve the physical condition and operating efficiency of school facilities, and improve the overall quality of the learning environment at each school.

As a result, we have 15 new schools, 29 additions and 27 annexes completed or underway. We have more than 1,100 renovation projects such as new roofs, tuck-pointing and windows; 70 campus parks; 247 new playlots; 14 athletic fields and stadium renovations; and have added 1,100 new classrooms. Overall, our efforts have increased student capacity by 32,000.

In order to fund these projects, we have utilized the Qualified Zone Academy Bonds thoughtfully created by Congressman Charles Rangel. Congressman Rangel, we thank you for your leadership in this program.

CPS was the first school district to use the QZAB, which helped build Chicago's first public JROTC academy. In December, CPS had its third consecutive annual QZAB issuance, which generated $13.4 million for school improvements at five high schools.

Now that the QZAB is in its last year, we are asking that it be extended so more CPS schools can benefit. We also thank Congressman Weller, for exploring the issue of reallocating unspent QZAB funds to states like Illinois, which have used their entire allocations every year since the program began.

We also have relied heavily on state and city revenues to rebuild the schools in the nation's third-largest school district.

However, more revenue is needed, and CPS and Chicago's taxpayers cannot continue to fund the expanding costs of this program alone.

CPS still needs an estimated $2.5 billion dollars to complete additional improvements, and the federal government should help shoulder this load.

Federal funding could be used to construct more new schools to in turn relieve overcrowding and replace obsolete buildings. Funds. also. are needed to renovate existing schools, including the electrical upgrades necessary to support the low voltage E-Rate wiring discounts and bringing the schools in compliance with the Americans with Disabilities Act - an unfunded Federal mandate.

School construction is important in America for three reasons.

First of all, it allows students to learn in a clean and safe environment that does not distract from the school day.

How can students be expected to concentrate when there are leaks in the ceiling, a draft from a broken window or when they are housed in a building that is more than 100 years old? These problems send students the message that they are not important, and that's not the message we want to send.

In fact, what we are trying to do is fulfill a second purpose for capital improvement programs, which is to equip schools with state-of-the-art labs and technology. These facilities will prepare students to be a competitive part of America's workforce.

Lastly, school construction means more jobs for America's current workforce. Take CPS for example, 52 percent of our construction work has been done by Chicago residents and 54 percent of the work was completed by minority- and women-owned businesses. Every school district and city could benefit economically from construction programs like these.

To reiterate Chicago Board of Education President Gery Chico's 1999 testimony before the House Ways and Means Committee, the federal government's response to America's school construction needs must be simple, flexible, substantial and immediate.

We need to develop a significantly larger, long-term, permanent partnership between the Federal government and state and local governments in funding school infrastructure needs - a partnership similar to that which exists in transportation. Just as the Eisenhower administration justified the interstate highway system investment as necessary to protect the national security interest, the federal government must ensure the future security of the nation by investing in school infrastructure.

A federal program should also support infrastructure funding through a dedicated revenue source and include private and parochial schools, among other things.

President Bush's inclusion of private activity bonds in his Education Plan is proof that school construction is still a national issue. In Chicago, this has been our philosophy for the past six years.

That is because we have realized that what happens in our school district affects other school districts, and vice-versa. So together, we have and will continue to share ideas on how to improve America's schools for all students.

Now we are again asking the federal government to take a more significant role in improving schools as well.

Thank you.