Rhode Island Senate Bill S0510

Rhode Island 2023 Regular Session

• Introduced: 3/7/23
• Refer: 3/7/23
• Report Pass: 5/23/23
• Engrossed: 5/30/23
• Refer: 5/31/23
• Report Pass: 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

This legislation introduces a significant change by clarifying the use of bond premium, allowing additional funds to be directed towards specific project costs without reducing the original bond principal. This financial maneuver is expected to enhance the funding available for school improvements in Central Falls, ultimately aiming to foster better educational infrastructure within the city. The overall debt service associated with these bonds is estimated to average around $9.4 million annually. However, it is structured to ensure that no full faith and credit of the State is pledged to these bonds, maintaining fiscal responsibility.

Summary

Bill S0510 aims to amend existing legislation regarding school construction and financing for the city of Central Falls in Rhode Island. Specifically, the bill seeks to permit the use of premium generated from the sale of bonds or notes to cover costs associated with the Central Falls School Project. The principal amount for these financial instruments is set to not exceed $144,000,000, which will be utilized for various school-related construction and renovation activities in the city. The funding mechanism relies on bonds issued through the Rhode Island Health and Educational Building Corporation under its school financing revenue bond program, anticipated to have a term of up to 30 years.

Contention

The bill's passage signifies an ongoing commitment to improve educational facilities in Central Falls, yet it also raises questions regarding the state's role in local school financing. While proponents advocate for streamlined access to crucial funds necessary for educational improvement, there remains a point of contention regarding the potential long-term impacts of such financial arrangements on local fiscal autonomy and budgeting processes. There are concerns that increasing reliance on bonds might shift budgetary pressures onto future generations if not managed prudently.