Federal and state governments should fund school construction and capital outlay in at least the same proportion as operating budget expenditures. Although there have been a number of attempts at securing federal funds for school facilities, these efforts fall short of a fair federal share.

The federal government provides only minimal funding for school facilities. Other than E-rate funding for technology infrastructure, the only substantial federal funding is through the Department of Treasury tax credit to school districts through Qualified Zone Academy Bonds.

State funding for school construction varies. Some states assume all responsibility for school construction funding, but others provide virtually no funding. In some states, school districts fund capital projects and new construction through a reimbursement formula. This means school districts must have all necessary capital funds upfront before they can be reimbursed for the state’s share. Such a system gives an obvious advantage to more affluent districts a disparity that increasingly has been challenged successfully in court.