MUSTO BILL TO INCREASE REIMBURSEMENT FOR SCHOOL CONSTRUCTION COSTS

HARRISBURG, February 14 – Senator Ray Musto (D-Luzerne) today announced plans to introduce legislation that would increase the reimbursement to school districts for school construction costs.

“The current state reimbursement is based on either the actual project cost or formula amount, whichever is less.  The reimbursement rate has not been changed since 1986.  As a consequence, in today’s economy, actual costs to school districts always exceed the formula-generated amount,” Musto said.  “My legislation would increase the reimbursement rate, thus putting money back into schools.”

Musto’s bill provides that for construction for which the contract is awarded on or after January 1, 2005 and for approved school building projects for which the general construction contract was awarded but for which a lease or general obligation bond resolution was not approved by the Department of Education prior to January 1, 2005, the reimbursement rate for elementary, secondary and vocational-technical school buildings would all be increased. 

For elementary school buildings, the rated pupil capacity as determined by the Department at the time the project is approved would be multiplied by $4,700, up from $3,900; for secondary school buildings, by $6,200, up from $5,100; and for vocational-technical school buildings, by $7,600, up from $6,300.

Also provided are three incentives, each consisting of an additional 10 percent in the reimbursement.  School construction projects eligible for receipt of an additional incentive include:

• New school construction projects using school facility design standards obtained from a Department approved clearinghouse;
• School construction projects for additions or alterations of existing school buildings in lieu of new building construction;
• Construction projects that receive a certain certification under the Leadership in Energy and Environmental Design Green Building Rating System established by the US Green Building Council.

“Any of these three incentives can be earned for a particular project, Musto said.  “However, the “green” incentive can be earned in addition to either one of the other incentives.”

Further information on this legislation can be obtained from Marilyn Zilli, Esq., executive director of the Committee for the Democrats at 717-787-7105.

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