H 750

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1H.750
2 Introduced by Representatives Kimbell of Woodstock, Cole of Hartford, and
3Marcotte of Coventry
4 Referred to Committee on
5 Date:
6 Subject: Education; State aid for capital construction costs; school
7construction; State funding of public education; education spending;
8taxation and finance; education property tax; excess spending
9 Statement of purpose of bill as introduced: This bill proposes to exclude
10 capital construction costs from the definition of “education spending” for
11 purposes of calculating excess spending. This bill also proposes to deem as
12 having good cause to commence construction before final approval under the
13 State Aid for School Construction Program any school district that commences
14 construction before the Program commences on July 1, 2026.
15    An act relating to school districts pursuing school construction projects
16    during the moratorium on State aid
17 It is hereby enacted by the General Assembly of the State of Vermont:
18 Sec. 1. 16 V.S.A. § 4001 is amended to read:
19 § 4001. DEFINITIONS
20    As used in this chapter:
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2(6) “Education spending” means the amount of the school district
3 budget, any assessment for a joint contract school, career technical center
4 payments made on behalf of the district under subsection 1561(b) of this title,
5 and any amount added to pay a deficit pursuant to 24 V.S.A. § 1523(b) that is
6 paid for by the school district, but excluding any portion of the school budget
7 paid for from any other sources such as endowments, parental fundraising,
8 federal funds, nongovernmental grants, or other State funds such as special
9 education funds paid under chapter 101 of this title.
10(A) [Repealed.]
11(B) For all bonds approved by voters prior to July 1, 2024, voter-
12 approved Voter-approved bond payments toward principal and interest shall
13 not be included in “education spending” for purposes of calculating excess
14 spending pursuant to 32 V.S.A. § 5401(12).
15***
16 Sec. 2. 16 V.S.A. § 3445(a)(5) is amended to read:
17(5) Final approval for construction aid.
18(A) Unless approved by the Secretary for good cause in advance of
19 commencement of construction, a school district shall not begin construction
20 before the Secretary approves a final application, provided that any school
21 district that commences construction before July 1, 2026, shall be deemed to
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1 have good cause. A school district may submit a written final application to
2 the Secretary at any time following approval of a preliminary application.
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4 Sec. 3. EFFECTIVE DATES
5    (a) Sec. 1 (excess spending exclusion) and this section shall take effect on
6 passage.
7    (b) Sec. 2 (final approval for construction aid) shall take effect on July 1,
8 2026.
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