LCO No. 6303 1 of 7 General Assembly Raised Bill No. 7239 January Session, 2025 LCO No. 6303 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by: (FIN) AN ACT ESTABLISHING A PUBLIC SCHOOL DISTRICT REPAIR AND IMPROVEMENT PROJECT PROGRAM. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2025) (a) As used in this section: 1 (1) "Public school operator" means any (A) local or regional board of 2 education, (B) regional educational service center, (C) interdistrict 3 magnet school operator described in section 10-264s of the general 4 statutes, (D) endowed academy approved pursuant to section 10-34 of 5 the general statutes, or (E) state charter school; 6 (2) "District repair and improvement project" means a capital 7 expenditure project, approved by a public school operator, for any of 8 the following: (A) The construction, renovation, repair or enlargement 9 of school buildings or school grounds, including parking lots, athletic 10 fields and playgrounds; (B) improvements to school facilities for 11 compliance with health, safety or code requirements; or (C) the 12 purchase, installation or maintenance of or improvements to fixed 13 school infrastructure, including, but not limited to, heating, ventilation 14 Raised Bill No. 7239 LCO No. 6303 2 of 7 and air conditioning systems, plumbing, electrical systems and roofing; 15 (3) "Number of students enrolled" means the number of all students 16 enrolled in a school or schools, as applicable, under the jurisdiction of a 17 public school operator on October first or the full school day 18 immediately preceding such date; 19 (4) "Number of students eligible for free or reduced price meals or 20 free milk" means the number of students enrolled in a school or schools, 21 as applicable, under the jurisdiction of a public school operator on 22 October first or the full school day immediately preceding such date, in 23 families that meet the income eligibility guidelines established by the 24 federal Department of Agriculture for free or reduced price meals or free 25 milk under the National School Lunch Program, established pursuant 26 to P.L. 79-396; and 27 (5) "Total need students" means the sum of: (A) The number of 28 students enrolled for the school year; (B) thirty per cent of the number 29 of students eligible for free or reduced price meals or free milk; (C) 30 fifteen per cent of the number of students eligible for free or reduced 31 price meals or free milk in excess of the number of students eligible for 32 free or reduced price meals that is equal to sixty per cent of the total 33 number of resident students of the town for the school year; (D) twenty-34 five per cent of the number of students enrolled who are multilingual 35 learners, as defined in section 10-17o of the general statutes; and (E) 36 thirty per cent of the number of students enrolled who require special 37 education, as defined in section 10-76a of the general statutes. 38 (b) (1) On February first of each year, not more than the amount as 39 authorized by the General Assembly for the fiscal year from the 40 resources of the district repair and improvement account established 41 under subsection (h) of this section shall be allocated to the Secretary of 42 the Office of Policy and Management, who shall allocate an amount to 43 each public school operator in accordance with the provisions of 44 subsection (c) of this section. The secretary shall credit all such allocated 45 Raised Bill No. 7239 LCO No. 6303 3 of 7 moneys to a subaccount for each public school operator and make 46 district repair and improvement project grants from such subaccounts 47 to such public school operator pursuant to the provisions of this section. 48 The secretary shall maintain records indicating, for each public school 49 operator's subaccount, the amount credited to the subaccount each year, 50 the amount paid out in district repair and improvement project grants 51 and charged to the subaccount and the balance available for additional 52 district repair and improvement project grants. 53 (2) No amounts allocated under this section shall be used to satisfy a 54 local matching requirement for any state assistance program or for any 55 school building project under section 10-283 of the general statutes. 56 (c) (1) Each allocation under subsection (b) of this section shall be 57 made to a public school operator in accordance with the following 58 formula: (A) Fifty per cent of the amount shall be allocated pro rata on 59 the basis of the following ratio: The public school operator's total need 60 students enrolled in a school or schools, as applicable, under the 61 jurisdiction of the public school operator for the fiscal year prior to the 62 year in which the grant is to be paid to the total need students enrolled 63 in all such schools in the state for the fiscal year prior to the year in which 64 the grant is to be paid; (B) twenty per cent of the amount shall be 65 allocated equally among all public school operators; and (C) thirty per 66 cent of the amount shall be allocated pro rata on the basis of the 67 following ratio: The total number of students enrolled in a school or 68 schools, as applicable, under the jurisdiction of a public school operator 69 for the fiscal year prior to the year in which the grant is to be paid 70 multiplied by the inverse of the adjusted equalized net grand list per 71 capita of such public school operator, which shall be the numerator of 72 the fraction, and the sum of the resulting products for all the schools 73 under the jurisdiction of a public school operator, which shall be the 74 denominator of the fraction. 75 (2) For the purposes of this subsection, the adjusted equalized net 76 grand list per capita of a public school operator shall be determined as 77 Raised Bill No. 7239 LCO No. 6303 4 of 7 follows: 78 (A) For a local board of education, the adjusted equalized net grand 79 list per capita shall be the same as the adjusted equalized net grand list 80 per capita, as defined in section 10-261 of the general statutes, of the 81 town of such board; 82 (B) For a regional board of education, a regional educational service 83 center, an interdistrict magnet school operator described in section 10-84 264s of the general statutes or an endowed academy, the adjusted 85 equalized net grand list per capita shall be determined by such entity's 86 rank under section 10-285a of the general statutes, where the adjusted 87 equalized net grand list per capita shall be the same as the adjusted 88 equalized net grand list per capita of a town with the same ranking; and 89 (C) For a charter school, the adjusted equalized net grand list per 90 capita shall be the same as the adjusted equalized net grand list per 91 capita, as defined in section 10-261 of the general statutes, of the town 92 in which such charter school is located. 93 (d) On March first of each year, the Secretary of the Office of Policy 94 and Management shall notify each public school operator of the amount 95 allocated to such public school operator pursuant to subsections (b) and 96 (c) of this section and shall post on said office's Internet web site such 97 allocation amounts and the calculations for all public school operators. 98 (e) Allocated moneys credited to the subaccount of a public school 99 operator in accordance with subsection (b) of this section shall be issued 100 as a grant by the secretary to the public school operator not later than 101 June thirtieth of each fiscal year. Such public school operator shall use 102 such grants for reimbursement and costs associated with district repair 103 and improvement projects. 104 (f) Not later than September 1, 2027, and annually thereafter, each 105 public school operator issued a grant pursuant to subsection (e) of this 106 section in the preceding fiscal year shall submit a report to the Secretary 107 Raised Bill No. 7239 LCO No. 6303 5 of 7 of the Office of Policy and Management, in a form and manner 108 prescribed by the secretary, describing each district repair and 109 improvement project for which amounts were expended in such fiscal 110 year and the amounts expended for each such project. Such report shall 111 include a certification by the public school operator that (1) the district 112 repair and improvement project was approved by the public school 113 operator or a board, council or other body responsible for overseeing 114 such project, and (2) no grant money allocated under this section to such 115 public school operator for such fiscal year was used to satisfy a local 116 matching requirement for any state assistance program or for any school 117 building project under section 10-283 of the general statutes. The 118 secretary shall post all reports submitted pursuant to this subsection on 119 said office's Internet web site. 120 (g) Each public school operator receiving a district repair and 121 improvement project grant under this section shall retain, for a period 122 of not less than three years following the completion of such project, 123 detailed accounting records of all expenses incurred relative to the 124 district repair and improvement project for which a grant is received. If 125 the Secretary of the Office of Policy and Management determines that 126 such records are not maintained or a review of such records indicates 127 that such grant, or any portion thereof, was used for other than its 128 intended purpose, the secretary shall provide written notification to the 129 public school operator of such finding. Upon issuing a finding under 130 this section, the secretary may require the public school operator to 131 promptly pay to the state an amount equal to the amount of the grant or 132 may cause the amount of any future grant made under this section to be 133 reduced by such amount. 134 (h) There is established an account to be known as the "district repair 135 and improvement account", which shall be a separate, nonlapsing 136 account. The account shall contain any moneys required by law to be 137 deposited in the account. Moneys in the account shall be expended by 138 the Secretary of the Office of Policy and Management for the purposes 139 of this section. 140 Raised Bill No. 7239 LCO No. 6303 6 of 7 (i) For the purposes described in subsections (b) and (c) of this section, 141 the State Bond Commission shall have the power from time to time to 142 authorize the issuance of bonds of the state in one or more series and in 143 principal amounts not exceeding in the aggregate sixty million dollars, 144 provided thirty million dollars of said authorization shall be effective 145 July 1, 2025. 146 (j) The proceeds of the sale of such bonds, to the extent of the amount 147 stated in subsection (i) of this section, shall be used by the Office of 148 Policy and Management for the purposes of subsections (b) and (c) of 149 this section. 150 (k) All provisions of section 3-20 of the general statutes, or the 151 exercise of any right or power granted thereby, that are not inconsistent 152 with the provisions of this section are hereby adopted and shall apply 153 to all bonds authorized by the State Bond Commission pursuant to this 154 section. Temporary notes in anticipation of the money to be derived 155 from the sale of any such bonds so authorized may be issued in 156 accordance with section 3-20 of the general statutes and from time to 157 time renewed. Such bonds shall mature at such time or times not 158 exceeding twenty years from their respective dates as may be provided 159 in or pursuant to the resolution or resolutions of the State Bond 160 Commission authorizing such bonds. None of such bonds shall be 161 authorized except upon a finding by the State Bond Commission that 162 there has been filed with it a request for such authorization that is signed 163 by or on behalf of the Secretary of the Office of Policy and Management 164 and states such terms and conditions as said commission, in its 165 discretion, may require. Such bonds issued pursuant to this section shall 166 be general obligations of the state and the full faith and credit of the state 167 of Connecticut are pledged for the payment of the principal of and 168 interest on such bonds as the same become due, and accordingly and as 169 part of the contract of the state with the holders of such bonds, 170 appropriation of all amounts necessary for punctual payment of such 171 principal and interest is hereby made, and the State Treasurer shall pay 172 such principal and interest as the same become due. 173 Raised Bill No. 7239 LCO No. 6303 7 of 7 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2025 New section Statement of Purpose: To establish a district repair and improvement project program and authorize state bonds to fund such program. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]