Researcher: MGS Page 1 5/1/23 OLR Bill Analysis sSB 1201 AN ACT CONCERNING AUTHORIZATION OF STATE GRANT COMMITMENTS FOR SCHOOL BUILDING PROJECTS AND REVISIONS TO THE SCHOOL BUILDING PROJECTS STATUTES. TABLE OF CONTENTS: § 1 — SCHOOL CONSTRUCTION GRANT COMMITME NTS Authorizes 22 school construction state grant commitments totaling $723.78 million toward total project costs of $1.14 billion; reauthorizes two projects with an additional state grant commitment of $37.6 million § 2 — SCHOOL BUILDING PROJECTS ADVISORY COUNCIL MEMBERSHIP Adds two members to the council § 3 — STATE REIMBURSEMENT GRANT RATE Increases the reimbursement percentage range for new construction projects for grant applications made on and after June 1, 2022 §§ 4 & 5 — FEDERAL FUNDING Eliminates the requirement to subtract federal funds received from the project costs before calculating the state reimbursement grant; allows any town to use federal funds to finance its local share of a school building project §§ 6 & 7 — SCHOOL CONSTRUCTION PROJECT EXEMPTIONS, WAIVERS, AND MODIFICATIONS Exempts two projects from statutory and regulatory requirements to allow these projects to be reauthorized due to a change in scope or cost and to receive a higher state reimbursement percentage for their grants § 1 — SCHOOL CONSTRU CTION GRANT COMMITME NTS Authorizes 22 school construction state grant commitments totaling $723.78 million toward total project costs of $1.14 billion; reauthorizes two projects with an additional state grant commitment of $37.6 million This bill authorizes school construction state grant commitments totaling $723.78 million toward total estimated project costs of $1.14 billion. It also reauthorizes two projects that have changed substantially in scope and cost with an additional state grant commitment of $37.6 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 2 5/1/23 million. Under the state school construction grant program, the state reimburses towns and local districts for a percentage of eligible school construction costs through state general obligation (GO) bonds (with less wealthy municipalities receiving a higher reimbursement). The municipalities pay the remaining costs. For the state-operated Connecticut Technical Education and Career System (CTECS), also known as the technical high schools, the state pays 100% of the project costs. For each project authorized by the bill, the table below shows the district, school, project type, estimates for total cost and state grant commitment, and state reimbursement rate. Table: 2023 School Construction Grant Commitments District School Project Type Estimated Project Costs Estimated Grant Reimbursement Rate Bristol Northeast Middle School New $89,068,965 $52,800,082 59.28% Cheshire Norton Elementary School New 76,656,200 38,328,100 50% Cheshire North End Elementary School New 89,942,900 44,971,450 50% Cromwell Cromwell Middle School New 55,933,717 22,172,125 39.64% Madison Elementary School New 61,150,000 11,135,415 18.21% Norwalk South Norwalk Elementary School New 76,000,000 45,600,000 60% Stamford Roxbury Elementary School New 86,000,000 51,600,000 60% Darien Hindley Elementary School Extension/ alteration 27,550,000 5,705,605 20.71% Darien Holmes Elementary School Extension/ alteration 25,600,000 5,301,760 20.71% 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 3 5/1/23 District School Project Type Estimated Project Costs Estimated Grant Reimbursement Rate Darien Royle Elementary School Extension/ alteration 29,100,000 6,026,610 20.71% Hartford Expeditionary Learning Academy at Moylan School Alteration 94,571,305 89,842,740 95% Hartford Parkville Community School Alteration 60,888,341 57,843,924 95% Hartford McDonough Middle School Alteration 59,859,491 56,866,516 95% Regional District 18 Mile Creek Elementary School Extension/ alteration 24,911,028 9,075,088 36.43% ACES ACES @ Bassett Alteration 65,533,047 52,426,438 80% ACES ACES @ Chase Purchase of facility 69,624,095 55,699,276 80% ACES Wintergreen Interdistrict Magnet School Purchase of facility 20,180,514 16,144,411 80% Cromwell Central administration New 2,670,683 529,329 19.82% Stratford Franklin Elementary School Alteration 521,920 311,273 59.64% Stratford Wilcoxson Elementary School Alteration 400,946 239,124 59.64% Norwich John B. Stanton Elementary School New 66,078,262 52,862,610 80% Norwich Greeneville Elementary School New 60,368,429 48,294,743 80% Totals $1,142,609,843 $723,776,619 Reauthorized Projects The bill also reauthorizes the proposal for two school construction projects with a change in cost and scope. This results in an additional 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 4 5/1/23 state grant commitment of $37,610,051. The table below describes the changes to these projects. Table: Reauthorized School Construction Projects District School Current Law The Bill Farmington Farmington High School Project Costs $131,666,047 $141,366,047 State Share 39,499,814* 42,409,814 Stamford Westhill High School Project Costs 257,938,824 301,313,888 State Share 206,351,059** 241,051,110 *The 2022 priority list (PA 22-118, § 362) authorized a grant of $24,924,383 (i.e., an 18.93% reimbursement rate); however, § 385 of that same act allowed the project to receive a 30% reimbursement rate. **The 2022 priority list (PA 22-118, § 362) authorized a grant of $51,587,765 (i.e., a 20% reimbursement rate); however, § 381 of that same act authorized an 80% rate if Stamford establishes a pathway-to-career regional program at the new school and enrolls students from, and shares services with, surrounding towns to reduce racial isolation in the community. EFFECTIVE DATE: Upon passage § 2 — SCHOOL BUILDIN G PROJECTS ADVISORY COUNCIL MEMBERSHIP Adds two members to the council The bill increases the School Building Project Advisory Council’s size from nine members to 11 by adding the Department of Emergency Services and Public Protection commissioner and the CTECS board chairperson, or their designees. Under current law, the membership includes three ex-officio members, or their designees, and six gubernatorial appointees. By law, the council must meet at least quarterly to do the following: 1. periodically review the school safety infrastructure criteria for projects that are awarded state grants (CGS § 10-292r); 2. develop model blueprints for new school building projects; 3. conduct studies, research, and analyses; and 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 5 5/1/23 4. make recommendations to the governor and legislature on improvements to the school building projects processes. EFFECTIVE DATE: July 1, 2023 § 3 — STATE REIMBURSEMENT GRANT RATE Increases the reimbursement percentage range for new construction projects for grant applications made on and after June 1, 2022 Under current law, for grant applications made on and after June 1, 2022, the state reimbursement rate for new school construction projects ranges from 10-70%. However, if the applicant district shows that new construction is less expensive than a renovation, extension, or major alteration, then the range increases to 20-80%. The bill increases the reimbursement percentage range for all new construction, with no additional conditions, to 10-80% for all grant applications made on and after that same date. (Presumably, this range supersedes the range set by current law.) EFFECTIVE DATE: July 1, 2023 §§ 4 & 5 — FEDERAL FUNDING Eliminates the requirement to subtract federal funds received from the project costs before calculating the state reimbursement grant; allows any town to use federal funds to finance its local share of a school building project Project Cost Calculation (§ 4) Current law requires that any federal funds or other state funds received by a town for a school building project be subtracted from the total project costs before calculating the town’s state reimbursement grant amount. Beginning July 1, 2023, the bill eliminates the requirement to subtract federal funds from the project costs. It retains the requirement to subtract other state funds from these costs. Local Share (§ 5) The bill allows towns to use federal funds to finance all or part of the town’s local share of a school construction project. Current law allows only the town that is a priority school district with the largest student enrollment as of October 2003 (i.e., Bridgeport) to use federal funds this 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 6 5/1/23 way. By law, priority school districts are those whose students earn low standardized test scores and have high levels of poverty (CGS § 10- 266p(a)). EFFECTIVE DATE: July 1, 2023 §§ 6 & 7 — SCHOOL CONSTRUCTION PROJECT EXEMPTIONS, WAIVERS, AND MODIFICATIONS Exempts two projects from statutory and regulatory requirements to allow these projects to be reauthorized due to a change in scope or cost and to receive a higher state reimbursement percentage for their grants The bill exempts two school construction projects in Hartford from statutory and regulatory requirements to allow them to (1) have their project reauthorized due a change in scope or cost and (2) receive higher reimbursement percentages for the grants. (These exemptions are commonly referred to as “notwithstandings.”) Generally, other than the specific notwithstanding provisions mentioned below, the projects must meet all other eligibility requirements. The table below describes the notwithstandings that the bill grants. Table: Notwithstandings for School Construction Projects Bill Section Town School and Project Exemption, Waiver, or Other Change 6 Hartford Bulkeley High School, renovation to implement the District Model for Excellence Restructuring Recommendations and School Closures Reauthorizes the project and allows a change in scope if the cost does not exceed $210.3 million; waives the filing deadline to be on the 2023 priority list (§ 1) Allows a reimbursement rate of 95%, which is the same as the previously authorized rate (PA 19-1, July Special Session, § 11) 7 Hartford Bulkeley High School, central administration facility Reauthorizes the project due to change in cost or scope if the cost does not exceed $34.85 million; waives the filing deadline to be on the 2023 priority list (§ 1) 2023SB-01201-R000666-BA.DOCX Researcher: MGS Page 7 5/1/23 Bill Section Town School and Project Exemption, Waiver, or Other Change Allows a 95% reimbursement rate, rather than 50% of this rate (i.e., 47.5%) as otherwise required by law EFFECTIVE DATE: Upon passage COMMITTEE ACTION Education Committee Joint Favorable Substitute Change of Reference - FIN Yea 44 Nay 0 (03/24/2023) Finance, Revenue and Bonding Committee Joint Favorable Substitute Yea 50 Nay 0 (04/19/2023)