This bill introduces a framework for utilizing grants to support school construction projects focused on consolidating school facilities. It establishes the School Facility Consolidation Incentive Fund (SFCIF), which will provide financial assistance to public school districts that close underutilized schools and enter into cooperative agreements to improve educational opportunities and operational efficiency. The Department of Education will administer the fund, offering grants up to $1,500,000 per district for expenses related to planning, facility closure, and transition costs. A key stipulation is that any facilities closed with these funds must remain closed for at least 20 years, with penalties for non-compliance. The bill also mandates that school districts maintain a long-range capital improvement program, changing the language from "may" to "shall," thereby making it a requirement.

Furthermore, the bill appropriates $10,000,000 from the education trust fund for FY 2027 to support these initiatives, with the funds being nonlapsing and continually appropriated. It amends existing laws to ensure that school building aid grants cover 50% of approved project costs, capped at $1,500,000 per fiscal year. While the Department of Education anticipates an increase in local school district expenditures due to the new requirements, it plans to use SFCIF funds for grant administration, estimating the need for an additional position at a cost of $88,000 for FY 2027. The overall fiscal impact on state expenditures remains indeterminable, as it will depend on the level of participation from school districts in the grant program.

Statutes affected:
Introduced: 6:12, 198:15-a, 198:39
HB1818 text: 6:12, 198:15-a, 198:39