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Committee reviews proposal for 100% state coverage of school construction debt, raises prioritization and credit‑rating questions
Summary
A Ways & Means draft would make districts with approved projects 'eligible to receive construction aid of a 100% of the eligible debt service cost,' while also proposing a 'clean‑slate' for outstanding capital debt as of Dec. 31, 2025. Committee members flagged unresolved issues on caps, prioritization and rating‑agency treatment.
The Ways & Means committee discussed draft statutory language on Feb. 17 that would alter how the state treats school construction debt, including a proposal to provide full state coverage for eligible debt service on approved projects and to treat outstanding district capital debt as eligible for relief as of Dec. 31, 2025.
John Gray of the Office of Legislative Counsel told the committee that "a school district that receives final approval for construction aid ... shall be eligible to receive construction aid of a 100% of the eligible debt service cost of the approved project." Gray stressed "eligible to receive" reflects an eligibility determination and that awards would remain subject to annual appropriation.
Why it matters: the draft separates two policy questions — what to do with existing…
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