You asked for a description of the governor's 2007 proposal to reduce state school construction grants. You also asked how her proposal would affect Union.

GOVERNOR'S PROPOSAL

SB 1117, An Act Increasing Certain Bond Authorizations for Capital Improvements, includes three sections (§§ 13, 14, and 15) that reduce state reimbursement grants for school construction projects and limit total annual state school construction project grant commitments. These sections take effect July 1, 2007.

Reduction in Local School Construction Reimbursements (§ 14)

The state reimburses local and regional boards of education for from 20% to 80% of the eligible costs of their school construction projects, depending on school district wealth. Regional school districts receive a bonus reimbursement of 10 percentage points, up to a maximum reimbursement of 85%. The bill reduces the reimbursement scale for local school projects to 15% to 65% and the maximum reimbursement for regional school district projects from 85% to 75%.

The changed reimbursement rates apply only to future projects, that is, those for which grant applications are filed on or after July 1, 2007. They do not apply to grants for projects already submitted to the General Assembly for approval in the 2007 session.

Starting with the project list the education commissioner submits to the General Assembly in December 2007, the bill limits the total amount of state school construction grant commitments the commissioner may request in any year to $ 300 million. It requires the commissioner, on each list he submits, to not only list the categories of eligible projects in order of priority, which is already required, but also to list projects in priority order within each category. Eligible projects left off a list because of the grant commitment limit must be listed first for the following year.

Interdistrict Magnet School Capital Projects (§ 13)

Starting with FY 08, the bill reduces state reimbursements for interdistrict magnet school capital projects from 95% to 80% of eligible costs.

EFFECT ON UNION

The change in the sliding scale for school construction reimbursement grants would reduce Union's school construction reimbursement rate for any projects first approved in FY 08 from 52. 14% to 41. 89%. This represents a 19. 93% reduction in the town's reimbursement rate, according to a March 13, 2007 State Department of Education simulation of the proposal's impact on each school district.

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