Rhode Island House Bill H6479

Rhode Island 2023 Regular Session

• Introduced: 6/2/23
• Refer: 6/2/23
• Report Pass: 6/12/23
• Engrossed: 6/13/23
• Enrolled: 6/14/23
• Passed: 6/20/23

Caption

Authorizing The Town Of Cumberland To Issue Not To Exceed $52,000,000 General Obligation Bonds, Notes And Other Evidences Of Indebtedness To Finance The Construction, Renovation, Improvement, Alteration, Repair, Furnishing And Equipping Of A New Elementary School And Other Related School Facilities And The Demolition Of An Existing Elementary School On Land Presently Occupied By The B.f. Norton School In The Town Provided That The Authorization Shall Be Reduced By Any Grant Received From The School Building Authority Capital Fund

Impact

This legislation empowers the town to raise funds through bonds, which will be primarily directed towards essential school facilities. The borrowing amount will be reduced by any grant received from the school building authority capital fund. This ensures that the financial burden is lessened if state assistance is available, thereby impacting local tax rates and budgets potentially. The passing of this bill will have implications for the town's debt management strategy, as any issued bonds are considered obligations of the town.

Summary

House Bill H6479 authorizes the town of Cumberland to issue general obligation bonds and notes not exceeding $52,000,000 for financing various school construction projects. These projects include the construction, renovation, improvement, alteration, furnishing, and equipping of a new elementary school, as well as the demolition of the existing B.F. Norton School. The bill reflects a significant investment in educational infrastructure aimed at enhancing the quality of schooling for the town's residents.

Contention

One notable point in the discussions surrounding H6479 was whether the issuance of such a large sum in bonds could impact local taxation rates, given that taxpayers will ultimately be responsible for repaying these debts. Additionally, it was imperative for the school projects to receive approval from the Rhode Island Department of Education to qualify for state reimbursement of housing aid. Thus, ensuring both accountability and financial prudence were key concerns raised during the bill's deliberation.