Yerushalayim Gets Billion-Shekel Loan for New Classrooms

Interior Minister Rabbi Aryeh Deri on Wednesday signed an authorization for the Yerushalayim municipality to take a loan of 1 billion shekels for the construction of 1,000 new classrooms across the city, after the Education and Finance Ministries refused responsibility.

The plan to secure loans for the project from Bank Leumi and other institutions was the initiative of Yerushalayim mayor Nir Barkat.

The loan is expected to save the city approximately 140 million shekels annually from its operating budget that pays for rental of temporary school structures and upgrading of old ones.

Rabbi Deri said the loan was necessary to end the unacceptable situation in which thousands of children are forced to study in unsuitable structures. “This sizeable loan was authorized for the city after professional examination of the matter and determination that it has the capacity to pay back the loan.”

Even so, the loan will not fully answer the city’s needs. There has been a chronic shortage of classrooms for many years in Yerushalayim due to lack of funding from the Education and Finance Ministries. While natural growth requires an additional 186 classrooms annually, the state provides funds for only about 60.

According to figures provided by the municipality, the shortage comes to a total of 4,092 classrooms. Of those, it’s 366 in the general population, 2,064 in the Arab sector, and 1,672 in the chareidi neighborhoods.

As a result, some 100,000 children are sitting in classrooms that are unfit for the purpose. The amount required to close the gap completely is estimated at over 5 billion shekels.