June 4, 2010
Patrick E. Litowitz
New Castle News
NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.
That’s “zero” as in no-interest loan or “zero” as in board members’ support.
Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.
The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.
New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.
The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.
“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.
However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.
Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.
A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.
“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”
He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.
Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.
“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.
Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).
If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.
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