Census Finds Jump in District Borrowing for School Construction

By Lonnie Harp

School spending in 1991 rose more than twice as much as consumer prices, according to a U.S. Census Bureau report, which found that many districts stepped up their borrowing for school construction to take advantage of falling interest rates.

During 1991, public schools borrowed $12.8 billion for construction and renovation, a 13 percent jump over 1990. The findings, reported in "Public Education Finances: 1991,'' show the continuation of a five-year trend of rising school indebtedness.

Schools in Arizona, Illinois, Michigan, New York, Pennsylvania, and Texas led the rush to the bond market, with over $500 million of debt issued in each state for construction,...