Stimulus funds can be used to build new schools

Schools will have flexibility in using stimulus money on school construction projects, according to guidelines published by the U.S. Department of Education. While the stimulus only explicitly allowed room for modernization and repairs on existing schools, the guidelines say that "districts may spend recovery funds on any activities authorized under the No Child Left Behind Act and other statues — including the federal impact-aid program, which authorizes funds for building new schools," write Stephen Sawchuck and Erik W. Robelen for Education Week.

Critics say construction of new schools could quickly deplete the $44 billion allotted for education. But Education Secretary Arne Duncan says that flexibility is needed in creating a stronger educational system. “There’s a need to do renovation and rehabilitation,” he said. “You have areas that are significantly overcrowded, and children jammed into buildings. That doesn’t work.” (Read more)

Rural schools often face the most challenges in constructing new school buildings. Lack of funds and pressure from state governments to consolidate districts often result in little support for schools with outdated or overcrowded facilities. But a 2002 study by the KnowledgeWorks Foundation, a non-profit educational group, found that despite these pressures, the more personalized education available through smaller school districts often made them a better investment than larger schools. (Read more)