QZAB


Background

QZAB is a federally funded "interest-free" bonds program for school districts. Nearly $500 million dollars (bonds) is available currently in California and more than $5 billion nationally. It's easy to qualify and can fund almost anything in support of districts developing Academies. Tenant improvements, infrastructure, hardware and software, professional development and staffing are some of the eligible expenditures.

Model

Essentially, QZAB requires that school districts must find/develop business partnerships that can provide at least 10% of the total amount of QZAB funding requested. If a school district requests $6 million through the QZAB program, they must also secure a letter from a business partner or partners for at least 10% or $600,000 of "in-kind" contributions to be collected over the life of the bond(s). QZAB Interest Free Bonds are usually paid back over a 10 to 14 year period. Partnership letters are worded so that business partners make a contribution in the form of discounts, in-kind resources, services and/or products totaling at least 10% of the total amount requested per year, over the next ten years. No out of pocket costs are required or necessary from the business partner.

Spectrum Communications is a business partner for multiple districts, and continues to be committed to this program.

The Process

Spectrum Communications can provide districts a complete QZAB application process. The protocol for district engagement includes:

A review process to determine district eligibility to apply for QZAB:
* Requires a minimum threshold eligibility for free and reduced

A review process to determine district capacity to participate in QZAB:
* District must have/own property to be "tenant improved"
* District needs to have/establish a bond rating
* District needs business partnerships willing to contribute 10%
* District needs financial resource/point to manage the sale of the interest free bonds

The Application Process

* The actual application is only one page
* The academy project description and budget process

The follow-up process -- including state-level DSA (Department of State Architects) office.

For more information about QZAB, check out fixschools.pdf