Metro Nashville Public Schools on Thursday was the recipient of approximately $21.1 million in state bond proceeds, just part of the $180 million the Tennessee State School Bond Authority doled out to district across the state.
While no particulars were available, the school district will use the money — earmarked for construction or repairs — for various projects, the TSSBA announced.
Of the total bond proceeds, Memphis City Schools are receiving $41.7 million.
MNPS and Memphis received direct allocations from the federal government because both rank among the nation’s top 100 districts in terms of school-aged children living below the poverty line.
Communities throughout Tennessee will receive financing to build or repair schools as a result of the Tennessee State School Bond Authority’s (TSSBA) action on Thursday.
The TSSBA agreement to sell the $180 million worth of Qualified School Construction Bonds is part of a program created by the federal American Recovery and Reinvestment Act. After the bond sale, the TSSBA will invest the proceeds from the sale in the state’s Local Government Investment Pool (LGIP) until communities need money to pay expenses related to their school construction projects.
Unlike other bonds that the State sells which pay semi-annual interest to the bondholder, tax credit bonds provide a federal tax credit to certain investors on a quarterly basis, the TSSBA reported in a release.
The communities authorized to receive portions of the bond money will be required to spend it on the projects within three years of the bond sale. The sale is expected to be completed with bond proceeds available for disbursement in late November.
TSSBA members include Comptroller Justin P. Wilson, Secretary of State Tre Hargett, Treasurer David H. Lillard Jr., Governor Phil Bredesen, Finance and Administration Commissioner Dave Goetz, Board of Regents Chancellor Charles Manning and acting University of Tennessee President Jan Simek.
Another area community receiving bond proceeds, selected through a competitive application process, was Clarksville/Montgomery County, which will receive $20 million for renovation of Montgomery Central High School.