TREASURER CAHILL MEETS WITH SENATOR RESOR AND REPRESENTATIVE ELDRIDGE TO DISCUSS SCHOOL BUILDING PLAN
Roundtable discussion held at Littleton High School

LITTLETON – State Treasurer Timothy P. Cahill and Senator Pamela P. Resor (D-Acton) hosted a roundtable discussion this morning on the recently enacted School Building Assistance (SBA) reform plan. 

The SBA reform plan overwhelmingly passed both the House and Senate in July.  The plan created the independent Massachusetts School Building Authority, with the Treasurer as Chairperson. 

“I am proud to provide the details of this reform plan with Senator Resor and Representative Eldridge. Without their commitment passage of this legislation would not have been possible,” stated Treasurer Cahill.  “We firmly believe that this School Building Assistance reform will build a better tomorrow for our children.  This plan will pay off current school building contract obligations as well as fund all projects currently on the waiting list in just three and a half years.  Additionally, under the reformed authority, we will accommodate new demand in future years.”

"We had to reform the school building assistance program in order to continue offering a quality education to our children and adequate working conditions for our teachers," stated Senator Resor.  "It is also an important reform because local officials will now have peace of mind that projects will be reviewed in a timely fashion and reimbursements will be made in a timely fashion.  I want to thank Treasurer Cahill for moving forward with this plan."

Existing SBA commitments total $5.5 billion over the next twenty years including close to $400 million in the FY04 budget.  The Commonwealth's outstanding liability on school building assistance exceeds $14 billion.  The state’s share of construction costs is $4.1 billion and its share of interest costs could add another $4.8 billion.

The waiting list for school building projects now approved stands at 425 projects and stretches out for ten to fifteen years.  One-third to one-half of municipalities have already issued short-term notes to begin construction.

"The Massachusetts Municipal Association is very pleased that the state has put the vital School Building Assistance program back on track, thanks to the leadership of Treasurer Tim Cahill, members of the Legislature and the Romney Administration,” said Geoffrey Beckwith, Executive Director of the MMA.  “High-quality school buildings are imperative to a high-quality education, and the new SBA program is designed as a unique state-local partnership to fulfill this need.”

The reform plan will also dedicate a penny of the sales tax, phased in over seven years and will issue $1 billion Commonwealth general obligation bonds – $500 million in FY05 and $500 million in FY06.  Additionally, $150 million in cash from FY04 surplus will be used to start up the plan.

“Under this plan, in the next five years, the Commonwealth can build over $1 billion of new schools while also clearing the waiting list, “stated Cahill.  "I truly believe this plan solves this complex problem, offers a fiscally responsible blueprint and provides a strong foundation for our children's future."