|BILL AS INTRODUCED||2007-2008|
Introduced by Representatives Godin of Milton, Edwards of Brattleboro, Fitzgerald of St. Albans City, Gilbert of Fairfax, Manwaring of Wilmington, Martin of Springfield, Milkey of Brattleboro, Peltz of Woodbury, Potter of Clarendon, Shand of Weathersfield and Wheeler of Derby
Subject: Education; school construction aid; interest
Statement of purpose: This bill proposes to stipulate that the state shall pay interest on funds borrowed in anticipation of aid.
AN ACT RELATING TO STATE PAYMENT OF INTEREST FOR SCHOOL CONSTRUCTION FUNDS BORROWED IN ANTICIPATION OF STATE AID
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 16 V.S.A. § 3448(a)(5)(E) is amended to read:
district may begin construction upon receipt of final approval. However, the
project shall remain eligible for capital construction aid, provided the
project otherwise meets the requirements of this section.
However, a A
district shall not be reimbursed for debt incurred due to borrowing of
funds in anticipation of aid under this section, as follows:
(i) A district shall not be reimbursed for debt paid on funds borrowed in anticipation of state aid prior to or two years following final approval of a project.
(ii) Two years following final approval of the project and following commencement of construction, if the state has not paid one-half of the promised aid, the district may borrow up to one-half of the anticipated aid, and the state will pay interest on debt incurred.
(iii) Two years following final approval of the project and following completion of construction, if the state has not paid the second half of the promised aid, the district may borrow the final half of the anticipated aid, and the state will pay interest on debt incurred.
The Vermont General Assembly
115 State Street