The proposed bill establishes a school modernization loan program aimed at assisting school districts and state-tribal education compact schools that face significant building system deficiencies. It introduces a new section to chapter 28A.525 RCW, which mandates the office of the superintendent of public instruction, in collaboration with the state treasurer, to administer this program. The program will provide low-interest loans, capped at a one percent interest rate and a repayment period of up to 20 years, to fund midsize projects that cannot be adequately addressed by existing construction assistance programs. Additionally, the bill allows for planning grants of up to $75,000 to help districts with serious deficiencies and limited financial capacity.

An advisory committee will be formed to assist in the design of the loan application process and the evaluation of grant applications, comprising members from the legislature and individuals with expertise in school facility financing. The superintendent of public instruction is required to submit a prioritized list of modernization projects to the governor and legislature annually, with the stipulation that loan funds can only be awarded after legislative approval. Furthermore, the bill ensures that funds collected from loan repayments will be deposited into the common school construction fund and mandates expedited administrative processes for projects eligible for both the modernization loan program and the school construction assistance program.

Statutes affected:
Original Bill: 43.84.092