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NEW ARIZONA LEGISLATION ENABLES PUBLIC SCHOOLS TO SAVE AN ESTIMATED $26 MILLION EACH YEAR ON ENERGY AND OPERATING COSTS

NEW ARIZONA LEGISLATION ENABLES PUBLIC SCHOOLS TO SAVE AN ESTIMATED
 $26 MILLION EACH YEAR ON ENERGY AND OPERATING COSTS
 Legislation promotes more energy-efficient schools
 MINNEAPOLIS, Sept. 22 /PRNewswire/ -- Arizona has passed new contracting legislation that will allow public schools to take advantage of unique financing to upgrade energy-management equipment. Arizona's K-12 public schools can save an estimated $26 million(a) each year in energy and operating costs if school districts take advantage of the new contracting procedure and contract to install energy-management equipment, Honeywell announced today.
 The $26 million in savings would cover all the costs of equipment upgrades and ongoing service. School budgets would no longer be strained by costly deferred maintenance. In as little as five years, the annual savings can be redirected to academic budgets to fund more than 600 teacher salaries, 2,000 new computers and transportation operating costs for 3,000 students -- with enough money left over to provide lunches for 5,000 students(a).
 The new legislation, authored by Sen. Lela Alston, D-Phoenix, and signed on June 7, 1992, by Gov. Fife Symington, allows schools to take advantage of a special form of performance contracting. These contracts pay for needed improvements through energy and operating savings from equipment upgrades. Previously, Arizona public schools were unable to take advantage of this type of performance-based contracting due to inflexible public accounting laws. Now, through performance contracting, companies like Honeywell guarantee that energy and operating savings will at least offset the needed equipment investment over a specific contract period. At the end of the contract, the improvements are in place at the school and the savings continue.
 "We are very pleased that Arizona now has the opportunity to save taxpayer dollars and apply those savings to needed programs that will enhance our children's educational achievement -- while at the same time improving the learning environment in classrooms," said Michael Bonsignore, Honeywell executive vice president and chief operating officer for International, and Home and Building Control. "This legislation is critical because resources are too scarce to see funds needlessly wasted through inefficient heating and cooling equipment."
 The new Arizona legislation is based on an amendment that deals with budgeting issues relating to the purchase of energy saving devices. The Department of Education and the state auditor general will allow savings in energy and operational costs to be used to pay for needed improvements as long as savings meet or exceed the amount budgeted outside the school's revenue limit.
 In addition to Arizona, nine other states around the country are now taking advantage of contracting that guarantees energy and operational savings. The use of performance contracting in schools across the United States has doubled since 1988.
 In Arizona, approximately 18 percent of the state budget goes to elementary and secondary education (Bureau of Census). Moreover, the state faced a budget shortfall in 1991, which puts additional pressure on public school budgets.
 Many schools today face a fiscal crisis, which includes old school buildings, old equipment and constant maintenance that eats away at school funds. Tight budgets mean that public schools frequently cannot afford the kinds of system remodeling and upgrading necessary for state- of-the-art energy efficiency, which in turn promotes a better learning environment. This often means wasted energy and wasted tax dollars. Nearly half of U.S. K-12 public schools have no energy management program. U.S. public schools could recover more than $1.85 billion each year through improved energy efficiency; that is nearly one-sixth of the money spent by the federal government each year for the nation's public schools.
 Honeywell is a global controls company that provides products, systems and services for homes and buildings, industry, and aviation and space. The company employs 58,000 people worldwide and had 1991 sales of $6.2 billion.
 (a) See energy and operational savings formula and average cost figures below.
 ENERGY AND OPERATING SAVINGS FORMULA FOR ARIZONA SCHOOLS
 Factual information:
 -- 648,749 students in Arizona public schools, K-12 (1990-91)
 -- National average energy cost per student for school year 1991, according to the Education Research Service in Arlington, Va.: $163.
 -- Potential energy savings in public schools: 25 percent (from Schoolhouse in the Red Research for the American Association of School Administrators).
 Calculation:
 -- $163 (national average energy cost per student) multiplied by 648,749 (students) equals $105,746,087 (total school energy cost)
 -- $105,746,087 multiplied by 0.25 (savings potential) equals $26,436,522 (Arizona's potential savings if all K-12 installed energy efficient systems)(b)
 ESTIMATED AVERAGE SCHOOL COST FIGURES
 -- Average Arizona teacher salary: $31,892 (National Education Assocation)
 -- Average computer cost: $1,500 to $2,000 (Apple Computer and IBM)
 -- Average cost of a school lunch per student for one year: $165 (Arizona Department of Education)
 -- Average operating cost of transportation program per student for one year: $345 (Arizona Department of Education)
 (b) This calculation is accurate to the extent that the national average represents per-student energy costs in Arizona.
 -0- 9/22/92
 /CONTACT: Lynne Warne of Honeywell, 612-870-2072; or Patrick Milan of Tunheim Santrizos, 612-851-1677, for Honeywell/ CO: Honeywell ST: Arizona, Minnesota IN: SU:


KH -- MN004 -- 2142 09/22/92 11:38 EDT
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