The Committee to Study the School Building Aid Grant Program met on Thursday, September 16, 2010. This Committee was created in the 2009 legislative session amidst significant legislative concern over the increasing state commitment in this program, and that the state has no control over its obligations. Building Aid remained fully funded for fiscal years 2010 and 2011, but only by bonding the full amount ($44.9 million in 2010 and $46.2 million in 2011) as well as $40 million for fiscal year 2009. Proceeds from the Rooms & Meals Tax are to be used for the state's bonding payments. The study committee was established to study the goals, procedures and operations of the building aid program, the sources of revenue and amounts of state funding, as well as eligibility criteria. An interim report last December recommended a moratorium on building aid grants, which was adopted last session with the passage of SB 486. That bill implemented a 1-year suspension on building aid by stipulating that no school building aid grants be made for projects approved on or after June 30, 2010 through June 30, 2011. This temporary 1-year suspension will allow consideration of any recommendations for changes to the building aid program that may be offered by this study committee. A final report with recommendations for proposed legislation is due by December 1, 2010, following a public hearing on a draft final report.

At Thursday's meeting, committee members reviewed the charge to the committee and discussed plans for future meetings. Committee members also generally agreed to a commitment for the state to meet financial obligations already made to local districts for projects approved in the past. More information on the status of current buildings, how other states distribute building aid, and concern with the need for local districts to annually commit to maintenance/upkeep for their facilities was discussed. The next meeting will likely be held during the first week of October.