Bill > S4115

Introduced Session

This bill allows an SDA (former Abbott) school district to receive State debt service aid for school bonds issued to finance the costs of school facilities projects constructed by the district. The bill specifies that the school facilities project, for which an SDA district would be able to receive State debt service aid, is to be approved by the Commissioner of Education in accordance with procedures in current law that are applicable to school districts other than SDA districts. The SDA district may issue school bonds to finance the total costs of the project, in which case the issuance of the bonds would require voter approval pursuant to procedures laid out in current law concerning school bond referenda. The bill prohibits an SDA district from seeking debt service aid for a project that is: 1) included in the most recent educational priority ranking of SDA district school facilities projects, which ranking is developed by the Commissioner of Education under current law; or 2) identified for advancement in the most recent version of the Statewide strategic plan for SDA district school facilities projects, which plan is established by the Schools Development Authority. Current State law gives the Schools Development Authority the general responsibility of managing the new construction, modernization, and renovation of school facilities projects in SDA districts. The State is responsible for 100 percent of the eligible costs of SDA district school facilities projects. Meanwhile, school districts other than SDA districts are eligible for State debt service aid for school bonds issued to finance the total costs of a school facilities project. For districts that have issued these school bonds, current law provides that the State will provide support at a minimum of 40 percent of eligible project costs. Even though SDA districts are able to benefit from 100 percent State support for school facilities projects that are constructed by the Schools Development Authority, the districts may at times experience delays in addressing their facilities needs as the Schools Development Authority constructs other projects. While the SDA districts may currently seek voter approval to issue bonds for school facilities projects, current State law does not provide them the ability to receive State support for those bonds through debt service aid. This bill would permit SDA districts to issue the bonds, subject to voter approval, and receive debt service aid to support project costs.

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Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Education Committee (on 02/03/2025)

Official Document