This bill amends 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 projects to counties 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 on bonds. Additionally, it stipulates that district lease payments must cover all debt service on the bonds after applying any state 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 requires that any municipal remittances to the school district for bond repayment only cover the portion not supported by state debt service aid. The bill also ensures that bonds backed by these municipal remittances remain eligible for state debt service aid. Overall, the legislation aims to streamline financing for school facilities while ensuring that districts can manage their financial obligations effectively.

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