By Lindsay Tice,Staff Writer

A source of millions of state dollars to repair and renovate school buildings in Maine is out of cash, and chances are slim that new money will be found soon. The situation leaves many projects in limbo and school systems, including Auburn, wondering where to turn.

The Maine Department of Education has temporarily suspended the popular Revolving Renovation Fund, a nearly 8-year-old state program that gives money – part grant and part no-interest loan – to schools that need new roofs, asbestos removal or other work. In its lifetime, the fund has given out more than $116 million for 355 projects, including about $2 million for several schools in Lewiston and Auburn

But the fund is almost out of money. It has only enough for the projects already in the pipeline.

Another $8 million worth of projects are in limbo. An unknown number were just starting the application process and will now have to find other funding.

“We were very disappointed, no question. I’d hate to see it go away,” said SAD 17 Superintendent Mark Eastman, whose Oxford-area school system has used the fund to repair four schools. Until the fund shut down recently, Eastman had planned to ask for money to replace a roof at the Guy E. Rowe School and do other projects.

The Legislature created the Revolving Renovation Fund in 1998 to address a mass of Maine schools that were outdated or falling apart. If a school system’s project was approved, the state would give it an interest-free loan to be repaid over five to 10 years. Depending on a community’s financial situation, between 30 and 70 percent of the loan would be forgiven.

The fund had $99 million. As school systems repaid their loans, that money was returned to the pot.

Since only a portion of loans were repaid – and slowly – the fund became depleted.

“Every time you loan that out, (an average of) 50 percent goes away,” said Ed Antz, an education specialist with the Department of Education.

Because money has already been set aside for approved projects, those will move forward.

Officials still must decide what to do with $8 million worth of projects that are in limbo. Those schools have applied for money but have not yet been rated, a requirement that ranks need.

Except in emergency situations, no other schools will get money until the Revolving Renovation Fund sees an influx of cash.

The Department of Education could ask the Legislature for money or it could go out to bond. The department has not yet decided which way it will go, Antz said.

State Sen. Peggy Rotundo, a Lewiston Democrat and longtime advocate of the Revolving Renovation Fund, believes the fund has helped many Maine schools take care of repairs before they became major and costly.

“It’s important for communities with older buildings, and that’s most communities throughout the state,” she said.

But Rotundo, who is also chairs the Appropriations Committee, doesn’t see any chance of money coming from the Legislature right away since the state is already struggling with basic school funding, prescription drugs for the elderly and other immediate demands.

She hopes funding might be included in the next budget cycle, which will go before legislators in the spring of 2007.

In the meantime, some school systems will hold off on repairs, waiting to see whether the state can find more money for the fund.

Others, like Auburn, will apply anyway and hope they fall into the “emergency” category.

“The high school has so many needs,” said business manager Jude Cyr.

Revolving Renovation Fund

• No-interest loans to school systems for building repairs and renovation

• Between 30 and 70 percent of a loan has been forgiven

• Loan repayments go back into the fund

• 355 projects have received funding over the last eight years, a total of $116 million.

• No new projects will get money unless it is an emergency situation.

In Lewiston

• Lewiston has received about $1 million for:

– Lewiston High School (roof)

– Martel Elementary School (asbestos)

– McMahon Elementary School (asbestos)

– Montello Elementary (asbestos)

• Lewiston has been approved for $400,000 for additional classrooms at McMahon.

In Auburn

• Auburn has received about $1.1 million for: – Walton Elementary School (windows)

– Auburn Middle School (windows, roof and building upgrades)

– Fairview Elementary School (roof and building upgrades)

• Auburn plans to apply for money to fix or replace the elevator at Edward Little High School and to work on water filtration at the Land Lab.

Copy the Story Link