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 the lease to be for nominal consideration, and eliminating the prohibition against counties requiring districts to contribute to the debt service costs of the bonds issued for the projects. Additionally, the bill stipulates that district lease payments must cover all debt service on the bonds after applying any state debt service aid and clarifies that these payments are not subject to caps on appropriations or spending.

Furthermore, the bill modifies the process for regular operating districts to issue bonds without voter approval. It allows districts to issue bonds if they have a contract with municipalities to receive a portion of payments in lieu of taxes, but now specifies that these remittances should only cover the debt service on the bonds that is not supported by state aid. The bill also ensures that bonds backed by these municipal remittances remain eligible for state debt service aid. Overall, the changes aim to streamline financing for school facilities projects while ensuring that districts can manage their financial obligations effectively.

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