This Congressional testimony focuses on the challenges faced by the District of Columbia in modernizing its public schools. Specifically, it addresses: (1) increases in the cost of modernizing the schools; (2) delays in completing the schools; (3) quality inspection problems; and (4) concerns about managing asbestos hazards. The testimony concludes that although the school system, with the Corps of Engineers' assistance, has accomplished much in the last few years, the modernization program will cost significantly more and take longer to accomplish than originally projected. It asserts that the school system needs to revise its plans to reflect these realities and to fully fund asbestos management activities this year and ensure that sufficient funding is budgeted in future years. (Appendices contain tables outlining original and current cost estimates and schedules for the first 22 schools to be modernized.) (EV)