This bill revises existing laws regarding financing mechanisms for school facilities projects specifically for regular operating districts, which are not designated as SDA districts. It allows these districts to enter agreements with county improvement authorities to construct school facilities and issue bonds for financing. Key changes include permitting county improvement authorities to lease the school facilities project to the county rather than mandating it, removing the requirement for leases to be for nominal consideration, and eliminating the prohibition against counties requiring districts to cover any portion of the debt service costs for bonds issued by the county improvement authority. Additionally, the bill stipulates that district lease payments must be sufficient to cover all debt service on the bonds after applying any State debt service aid, and these payments will not be subject to caps on appropriations or tax levies.

Furthermore, the bill modifies provisions that allow regular operating districts to issue bonds without voter approval when they enter into contracts with municipalities for remittances of payments in lieu of taxes. It clarifies that these remittances should only cover the portion of bond proceeds not supported by State debt service aid. The bill also ensures that bonds backed by municipal remittances for school facilities projects remain eligible for State debt service aid. Overall, these changes aim to streamline the financing process for school facilities projects while ensuring that districts can manage their financial obligations effectively.

Statutes affected:
Introduced: 18A:7G-5, 18A:7G-15.1