Bill > A4533

This bill revises certain sections of law concerning financing mechanisms for school facilities projects of regular operating districts (non-SDA districts). The key provisions are: 1. Non-SDA districts can enter into agreements with county improvement authorities to construct school facilities projects and issue bonds to finance the local share of projects under the State's school facilities program or to finance the total costs of projects not funded under the program. The county improvement authority bonds issued for the latter type of project would be eligible for State debt service aid. 2. Non-SDA districts can lease their lands or facilities to the county improvement authority to construct the school facilities project, and the authority can then lease the completed project back to the county, which will then lease it to the district. These lease payments are not subject to any spending or tax levy caps. 3. When the bonds are no longer outstanding, the leases and liens will expire, and the school facilities project will be solely vested in the school district. 4. The bill also allows non-SDA districts to issue bonds for school facilities projects without voter approval, provided they have a contract with a municipality to remit a portion of the municipality's payments in lieu of taxes to repay the bonds, and the bond issuance is approved by the Local Finance Board and the Commissioner of Education.

Budget and Finance, Education

https://www.njleg.state.nj.us/bill-search/2024/A4533