Rhode Island House Bill H6126

Rhode Island 2023 Regular Session

• Introduced: 3/3/23
• Refer: 3/3/23
• Report Pass: 6/7/23
• Engrossed: 6/12/23
• Enrolled: 6/13/23
• Passed: 6/14/23

Caption

Amending Chapters 106 And 107 Of The Local Acts Of 2021 Both Entitled "relating To School Construction And Financing In The City Of Central Falls And Authorizing The City Of Central Falls To Issue Not To Exceed $5,760,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of Schools And School Facilities In The City"

Impact

The financial structure established by H6126 indicates a significant investment in the local education system, with expected annual debt service payments around $9.4 million for up to 30 years. This funding mechanism is designed to uphold the educational infrastructure as outlined in the original local acts. By allowing premium funds to contribute to project costs, the bill aims to relieve some financial pressure that might arise from strict adherence to the original principal amounts of bonds without the premium inclusion.

Summary

House Bill H6126 seeks to amend Local Acts 106 and 107, which were initially enacted in 2021 to facilitate school construction and financing in the city of Central Falls. This bill clarifies the use of the premium generated from the sale of bonds or notes associated with the Central Falls School Project, ensuring that such funds may specifically be allocated to cover project costs. The bill proposes to authorize the issuance of general obligation bonds up to a total of $144 million, which are anticipated to support the significant renovation and equipping of educational facilities within the city.

Contention

While H6126 passed the legislature unanimously, discussions surrounding school financing often evoke concerns related to fiscal responsibility and the long-term implications of borrowing. Although proponents argue that modernizing school facilities will greatly benefit educational outcomes and community well-being, opponents might raise issues regarding the potential debt burden imposed on future budgets and the accountability in managing such a large financing operation. The necessity for appropriations by the General Assembly each budget year adds an additional layer of scrutiny on how these funds are managed and allocated.