House Education committee reviews plan to expand state bonding and cover legacy school construction debt

John Gray, Office of Legislative Counsel, told the House Education committee on April 14 that lawmakers are considering a package of amendments to the state aid for school construction that would supplement existing debt-service subsidies with additional state bonding capacity and new legacy-debt relief.

Gray said the bill’s short-term intent is “to catalyze the state aid for school construction program by providing state aid in the form of up to an additional $50 million annually in state bonding capacity to support the construction or renovation of school facilities that support the consolidation of school governance structures and improve access to educational opportunities for public school students.” The amendment package also would create a legacy-debt aid program to cover 100% of qualifying debt-service costs on facility-related indebtedness outstanding as of Dec. 31, 2025, subject to an annual appropriation and a $61 million cap on total annual legacy payments.

Why it matters: the changes would expand the universe of projects eligible for state support, alter the sequencing of local bond votes and state approvals, and shift how school construction costs are presented in the state capital and education budgets. That combination could reduce local property-tax burden for districts with existing debt while…