PA 10-108—sSB 376

Education Committee

Finance, Revenue and Bonding Committee

AN ACT CONCERNING STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS, MUNICIPAL ACCOUNTS FOR SURPLUS EDUCATION FUNDS AND REVISIONS TO CERTAIN LIBRARY STATUTES

SUMMARY: This act authorizes $416. 6 million in grant commitments for 29 new local school construction and interdistrict magnet school projects. It also reauthorizes and increases grant commitments for four previously authorized projects with significant changes in cost and scope. Two are being reauthorized for the first time and two for the second. (By law, districts are limited to two reauthorizations. ) The total increase in grant commitments for the reauthorizations is $10. 82 million.

The act authorizes $4. 6 million in additional general obligation bonds to the State Department of Education (SDE) for capital start-up cost grants for new interdistrict magnet schools needed to help the state meet the goals of the 2008 Sheff v. O'Neill school desegregation settlement.

It overrides contrary statutes, special acts, local charters, and ordinances to allow a town board of finance, board of selectmen in a town with no board of finance, or other appropriating authority for a school district to retain and deposit in a nonlapsing account any unspent funds from the town's total budgeted appropriations for education for the prior fiscal year. The amount deposited in the account in any year is limited to 1% of the school district's total budgeted appropriation for that year (§ 32).

The act allows all municipalities to establish and fund public libraries either by action of their legislative bodies or by a petition of at least 50 voters followed by referendum approval. Under prior law, cities could establish libraries only by city council action and towns and boroughs could do so only by a petition and referendum.

Finally, the act waives statutory and regulatory requirements to make specified school construction projects eligible for state grants under certain conditions (“notwithstanding” provisions).

EFFECTIVE DATE: Upon passage, except for the library provisions, which are effective June 1, 2010, and the provisions concerning bonding for Sheff magnet schools and the municipal nonlapsing account, which are effective July 1, 2010.

§ 1 — SCHOOL PROJECTS

New Authorizations

Table 1 lists the 29 new projects authorized.

Table 1: New School Construction Projects Authorized

Reauthorized Projects

Table 2 lists the four projects proposed for reauthorization because of significant change in cost or scope.

Table 2: Reauthorization of Previously Authorized Projects

§ 2 — SHEFF MAGNET SCHOOL START-UP COSTS

The $4. 6 million in state bond funding for Sheff-related interdistrict magnet schools may be used to purchase buildings or portable classrooms; lease space; and buy equipment, including computers and classroom furniture, for such schools.

§§ 33-35 — PROCEDURE FOR ESTABLISHING A PUBLIC LIBRARY

Under prior law, a city could establish and fund a public library only if the mayor, with the city council's approval, appointed a board of nine library trustees. The trustees were required to adopt bylaws and rules and regulations for, and to operate, the library. The law also gave the trustees control over library funds, requiring them to be spent only on duly authenticated vouchers from the board. Under prior law, the only way for a town or borough to establish a public library was for at least 50 of its voters to petition asking for an annual tax of up to 3 mills to fund a library and for the issue to be approved by a majority of the voters at the next regular municipal election.

The act allows all municipalities to use either of these procedures to establish and fund a public library. It extends to boroughs and towns the requirement that any money collected through a municipal library tax be (1) kept in a library fund separate from other municipal funds and (2) withdrawn only on duly authenticated vouchers from the library trustees.

The act also makes technical and conforming changes.

§§ 3-31 & 36 — WAIVERS FOR CERTAIN SCHOOL CONSTRUCTION PROJECTS (“NOTWITHSTANDING” PROVISIONS)

The act waives certain statutory and regulatory requirements to make specified school construction projects eligible for state grants under certain conditions as shown in Table 3. These waivers are referred to as “notwithstanding” provisions.

Table 3: Notwithstanding Provisions for Local School Projects

§ 12 — Grant Repayment Exemption for Norwich

By law, a town that takes a public school building project that received a state school construction grant out of service or redirects it to a nonschool use within 20 years after the building received a school construction grant of $2 million or more or 10 years for a smaller grant, must refund the unamortized grant balance to the state. The act exempts Norwich from the requirement to repay unamortized balances totaling up to $250,000 if it redirects one or more schools before June 30, 2010. Norwich must notify SDE by June 30, 2010 which school buildings it will redirect.

BACKGROUND

School Construction Grants

The state reimburses school districts for between 20% and 80% of the eligible costs of local school construction projects. The reimbursement rate depends mostly on town wealth but districts may receive a higher reimbursement for certain types of projects, such as those involving space for school-readiness programs or full-day kindergartens. In addition, certain types of interdistrict projects (vocational agricultural centers, regional special education facilities, and interdistrict magnet schools) are reimbursed at the rate of 95% of eligible costs. Districts also receive a 10-percentage-point bonus for projects undertaken in cooperation with one or more other districts. Board of education central administration facility projects are reimbursed at half the district's otherwise applicable rate. Grants are paid from state general obligation bond funds.

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