Press Releases

School Building Aid Interim Report

FOR IMMEDIATE RELEASE Tuesday, December 15, 2009 Contact: Senator Molly Kelly
(603) 271-4153

SCHOOL BUILDING AID COMMITTEE FINALIZES ITS INTERIM REPORT

CONCORD – The Committee to Study the School Building Aid Grant Program voted today to approve its interim report, which includes a recommendation that the Legislature temporarily suspend building aid after June 30 to provide time to develop new and more sustainable guidelines.

State grants to communities renovating or building new schools have grown by 150 percent in the last decade, from $18.5 million in 1999 to $46.2 million in the latest budget – an unsustainable trajectory according to the committee.

As a result, the committee is asking the Legislature to consider a temporary suspension of school building aid for new projects approved after June 30, 2010. The goal is to provide an opportunity for pending projects to get local approval before temporarily suspending the aid program. At the same time, the committee plans to continue to study the program and recommend changes.

“Growth of 150 percent is not sustainable in a state that does not have unlimited revenues. Yet we recognize the state has a role in helping communities provide their students with safe and serviceable public schools. We need to review the eligibility criteria to set clear objectives and to ensure the program is financially sustainable into the future,” said Senator Molly Kelly (D-Keene), who serves as chairwoman of the committee.

The committee is not proposing to change current grant allocations, recognizing that communities were counting on the state’s contributions when building projects were approved. In total, the state has obligations to pay just over $600 million for previously approved projects with an additional cost of $200 million for debt service.

The committee’s interim report also acknowledges that if a temporary suspension goes into effect, some accommodations may have to be made for school districts with safety issues.

The committee plans to meet again in January to continue its work.

-30-