SB 485 — AN ACT AUTHORIZING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS TO INTERDISTRICT MAGNET SCHOOLS OPERATED BY THE CAPITOL REGION EDUCATION COUNCIL.

Senate General Assembly RaisedFile Bill No.

485567 February Session, 2022 LCOSenate Bill No.

3998485 ReferredSenate, toApril 21, 2022 The Committee on FINANCE,Finance, REVENUERevenue ANDand BONDINGBonding Introducedreported by:through SEN.

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AN ACT AUTHORIZING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS TO INTERDISTRICT MAGNET SCHOOLS OPERATED BY THE CAPITOL REGION EDUCATION COUNCIL.

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(d) The board of the Capitol Region Education Council shall maintain a rolling three-year capital improvement and capital equipment plan that identifies (1) each interdistrict magnet school's expected capital improvement projects and the anticipated cost of such projects, and (2) the specific equipment each interdistrict magnet school is expected to LCOneed, 3998based {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00482on the estimated cost of 3the R01-SB.docxequipment, }the Raiseduseful Billlife of SB485 / File No.

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567 3 SB485 File No.

567 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 23 $ Out Years $ Treasurer, Debt Serv.

GF - Cost See Below 28.6 million total Note:

GF=General Fund Municipal Impact:

None Explanation The bill authorizes $20 million in General Obligation bonding for capital improvements to Capital Regional Education Council-operated interdistrict magnet schools, to be administered by the Department of Education.

To the extent bonds are fully allocated and expended, total debt service is expected to be approximately $28.6 million over the 20- year duration of the bonds.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the terms of any bonds issued.

SB485 / File No.

567 4 SB485 File No.

567 OLR Bill Analysis SB 485 AN ACT AUTHORIZING BONDS OF THE STATE FOR CAPITAL IMPROVEMENTS TO INTERDISTRICT MAGNET SCHOOLS OPERATED BY THE CAPITOL REGION EDUCATION COUNCIL.

SUMMARY This bill authorizes $20 million in general obligation bonds for the State Department of Education to provide grants to the Capitol Region Education Council (CREC) for interdistrict magnet school capital improvements.

It also requires CREC to develop and maintain capital improvement and capital equipment plans.

Under the bill, “capital improvements” are those that fix a defect or design flaw;

create an addition, enlargement, or expansion;

increase capacity, productivity, or efficiency;

rebuild property after its economic useful life ends;

replace a major component or structural part of the property;

or adapt the property to a new or different use.

The bonds are subject to standard statutory bond issuance procedures and repayment requirements.

EFFECTIVE DATE:

July 1, 2022 CREC CAPITAL PLANS The bill requires CREC’s board to maintain a rolling three-year capital improvement and capital equipment plan and annually submit it to the Appropriations;

Education;

and Finance, Revenue and Bonding committees, starting by January 1, 2023.

The plan must identify each interdistrict magnet school’s (1) expected capital improvement projects and the anticipated costs and (2) specific equipment needs, based on the equipment’s estimated cost, the useful life of existing equipment, and projections of changing technology.