School committee approves MSBA project-funding amendment for middle school arrangement

The Whitman-Hanson Regional School Committee voted to approve an amendment to its Project Funding Agreement (PFA) with the Massachusetts School Building Authority (MSBA) to allow MSBA reimbursements for the middle school building project to be routed directly to the town of Whitman.

Ms. Stafford, chair of the building committee, told members the paperwork is an administrative step required by MSBA: "the reimbursement from MSBA will go directly to the town of Whitman now since they are the ones who are going to give us the money." Ms. Blackman asked whether that arrangement meant the town — rather than the district — would receive interest on the project funds. She asked: "So, does this mean that the town of Whitman will be receiving the interest on the project rather than the Whitman-Hanson Regional School District?"

Mr. Wells, speaking for the business office, responded that interest is accounted for as part of overall borrowing and can reduce the total amount the district ultimately needs to borrow: "the interest it goes with the borrowing... it reduces the amount of money that you end up borrowing in the end."

The committee moved, seconded and approved the amendment on a voice vote.

Why it matters: The administrative change clarifies how MSBA reimbursements and associated interest are handled for the middle school project and affects how towns will receive and manage project funds; members asked for clarification because it has practical effects on town budgeting and debt-service calculations.

Next steps: With the PFA amendment approved, the town and district business offices will complete the administrative steps necessary to process MSBA reimbursements and apply funds to project invoices and borrowing arrangements.