AN ACT CONCERNING AUTHORIZATION OF STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND CONCERNING CHANGES TO THE STATUTES CONCERNING SCHOOL BUILDING PROJECTS.

AN ACT CONCERNING AUTHORIZATION OF STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND CONCERNING CHANGES TO THE STATUTES CONCERNING SCHOOL BUILDING PROJECTS.

The bill authorizes $ 345. 37 million in state grant commitments for 29 new school construction projects of various types. It reauthorizes 17 previously authorized projects that have changed substantially in cost or scope, increasing net grant commitments for those projects by $ 87. 2 million.

1. imposes a deadline for school districts to submit school project change orders to the State Department of Education (SDE) for cost eligibility review;

2. requires ownership of school buildings for which the state contributed 95% or more, rather than 100%, of the cost, to revert to the state if the building is changed to a non-school use within 20 years after the General Assembly approves the grant for the project; and

3. bars SDE from accepting a school construction grant application for a new or replacement school on or after July 1, 2008 unless it contains specified information about proposed project sites.

EFFECTIVE DATE: July 1, 2008 except for the grant commitments, which take effect on passage.

The bill authorizes $ 345. 37 million in state grant commitments for 29 new school construction projects of various types, with estimated total project costs of $ 535. 61 million. It also reauthorizes a total of 17 previously authorized projects, 12 for the first time, one for the second time, and four for the third or a subsequent time. These projects have changed substantially (more than 10%) in cost or scope. The reauthorizations increase state grant commitments for these projects by a net $ 87. 2 million from the amounts currently authorized.

The bill requires school districts to submit school project change orders and other change directives issued after July 1, 2008 to the SDE within six months after issuance. It excludes any change order not submitted within six months and in a manner the education commissioner prescribes from the project costs eligible for a school construction grant.

A change order is an amendment to a school construction project that does not have to be competitively bid. SDE guidelines state that school districts should use change orders only for unforeseen or emergency conditions arising during construction. The education commissioner reviews change orders to determine if their costs are eligible for state reimbursement.

By law, if the state grant for a school project equals 100% of its eligible cost, the building must be used for the grant purpose for at least 20 years from the date the General Assembly approves the grant. If within the 20-year period, the building's use is changed, its title reverts to the state unless the education commissioner, for good cause, decides otherwise. The law applies to projects the General Assembly approves on or after July 1, 1993. This bill extends the reversion requirement to projects approved after that date for which the state pays 95% or more of the project cost.

This change conforms to the 2004 reduction in state grant support for interdistrict magnet school, vocational agriculture center, and regional special education facility projects from 100% to 95% of the eligible cost.

Starting July 1, 2008, the bill requires the education commissioner to accept an application for a state school construction grant for a new or replacement school only if it:

1. identifies all potential sites for the project;

2. states that each potential site has been reviewed and evaluated for programmatic and construction suitability;

3. includes two appraisals of the purchase price for each potential site; and

4. includes a Phase 1 environmental analysis of each site and, if the education commissioner considers it necessary, a Phase 2 assessment of any site.

For purposes of a grant application, the bill allows an applicant to include the cost of the most expensive of the proposed sites in the project's estimated costs. But if the district ultimately uses a less expensive site, it cannot increase these estimated project costs unless the project receives legislative reauthorization on the list of projects with a significant change in cost or scope.

The state reimburses school districts for from 20% to 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 kindergarten. 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.

A Phase 1 environmental site assessment is a report prepared for a real estate holding which identifies potential or existing environmental contamination liabilities. It typically addresses both the underlying land as well as physical improvements to the property and includes examination of potential soil contamination, groundwater quality, and surface water quality.

A Phase 2 assessment is a more detailed investigation of a site involving chemical analysis for hazardous substances or petroleum hydrocarbons.

Yea

Nay

(03/18/2008)

Yea

Nay

(04/01/2008)