Increases EDA bonding limit for State share of school facilities projects of SDA districts and school districts other than SDA districts, subject to voter approval.

S3382

SENATE, No. 3382

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 9, 2026

Sponsored by:

Senator� M. TERESA RUIZ

District 29 (Essex and Hudson)

SYNOPSIS

���� Increases EDA bonding limit for State share of school
facilities projects of SDA districts and school districts other than SDA
districts, subject to voter approval.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning State support for school facilities projects and amending and
supplementing P.L.2000, c.72.

����
Be It Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 14 of P.L.2000,
c.72 (C.18A:7G-14) is amended to read as follows:

���� 14.� Notwithstanding any other
provisions of law to the contrary:

���� a.���� The financing authority
shall have the power, pursuant to the provisions of P.L.2000, c.72 (C.18A:7G-1
et al.), P.L.1974, c.80 (C.34:1B-1 et seq.) and P.L.2007, c.137 (C.52:18A-235
et al.), to issue bonds and refunding bonds, incur indebtedness and borrow
money secured, in whole or in part, by moneys received pursuant to sections 17,
18, and 19 of P.L.2000, c.72 (C.18A:7G-17, C.18A:7G-18, and C.18A:7G-19) for
the purposes of: financing all or a portion of the costs of school facilities
projects and any costs related to the issuance thereof, including, but not
limited to, the administrative, insurance, operating and other expenses of the
financing authority to undertake the financing, and the development authority
to undertake the planning, design, and construction of school facilities
projects; lending moneys to local units to pay the costs of all or a portion of
school facilities projects and any costs related to the issuance thereof;
funding the grants to be made pursuant to section 15 of P.L.2000, c.72 (C.18A:7G-15);
and financing the acquisition of school facilities projects to permit the
refinancing of debt by the district pursuant to section 16 of P.L.2000, c.72
(C.18A:7G-16). Notwithstanding the provisions of this section to the contrary,
if financial support is provided to the development authority following a
budget request made directly to the Division of Budget and Accounting in the
Department of the Treasury for State support pursuant to subsection k. of this
section, bonds and refunding bonds, or any indebtedness or other borrowed
moneys, secured, in whole or in part, by moneys received pursuant to sections
17, 18, and 19 of P.L.2000, c.72 (C.18A:7G-17, C.18A:7G-18, and C.18A:7G-19) or
pursuant to this section after the effective date of P.L.2023, c.311
(C.18A:7G-5b et al.) shall not be issued for the purposes of financing costs
related to the issuance of the bonds, indebtedness, or other borrowed moneys,
including, but not limited to, the administrative expenses (other than retained
professional services related to the issuance of the bonds, indebtedness, or
other borrowed moneys), non-project insurance expenses, operating and other
expenses of the financing authority to undertake the financing.� If financial
support is provided to the development authority following a budget request
pursuant to subsection k. of this section, bonds, indebtedness, or other
borrowed moneys issued pursuant to this section shall also not be issued for
the purposes of financing any costs related to the issuance of moneys lent to
local units to pay the costs of all or a portion of school facilities
projects.� The administrative expenses (other than retained professional
services related to the issuance of the bonds, indebtedness, or other borrowed
moneys), non-project insurance expenses, operating and other expenses of the
financing authority related to undertaking the financing of school facilities
projects pursuant to this section shall be supported by State appropriations
when financial support is made available following a budget request pursuant to
subsection k. of this section. The administrative, non-project insurance,
operating, and other expenses of the development authority shall be funded by
State appropriations pursuant to paragraph (2) of subsection o. of section 4 of
P.L.2007, c.137, (C.52:18A-238) when financial support is made available
following a budget request pursuant to subsection k. of this section. If
financial support is provided to the development authority following a budget
request pursuant to subsection k. of this section, bonds and refunding bonds,
or any indebtedness or other borrowed moneys issued pursuant to this section
after the effective date of P.L.2023, c.311 (C.18A:7G-5b et al.) shall only be
issued for the purposes of: financing all or a portion of the costs of school
facilities projects; lending moneys to local units to pay the costs of all or a
portion of school facilities projects; funding the grants to be made pursuant
to section 15 of P.L.2000, c.72 (C.18A:7G-15); financing the acquisition of
school facilities projects to permit the refinancing of debt by the district
pursuant to section 16 of P.L.2000, c.72 (C.18A:7G-16); and paying for the
administrative expenses of the financing authority that are in connection with
retained professional services related to the issuance of the bonds,
indebtedness, or other borrowed moneys. The aggregate principal amount of the
bonds, notes, or other obligations issued by the financing authority as
authorized pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.) shall not exceed:
$100,000,000 for the State share of costs for county vocational school district
school facilities projects; $6,000,000,000 for the State share of costs for
Abbott district school facilities projects; and $2,500,000,000 for the State
share of costs for school facilities projects in all other districts.� The
aggregate principal amount of the bonds, notes, or other obligations issued by
the financing authority as authorized pursuant to P.L.2008, c.39 (C.18A:7G-14.1
et al.) shall not exceed: $2,900,000,000 for the State share of costs of SDA
district school facilities projects and $1,000,000,000 for the State share of
costs for school facilities projects in all other districts, $50,000,000 of
which shall be allocated for the State share of costs for county vocational
school district school facilities projects.� This limitation shall not include
any bonds, notes, or other obligations issued for refunding purposes.

���� The financing authority may
establish reserve funds to further secure bonds and refunding bonds issued
pursuant to this section and may issue bonds to pay for the administrative,
insurance, and operating costs of the financing authority and the development
authority in carrying out the provisions of this act.� Notwithstanding the
provisions of this section to the contrary, the proceeds of bonds issued
pursuant to this section after the effective date of P.L.2023, c.311
(C.18A:7G-5b et al.) shall not pay for any costs related to the issuance of the
bonds, including the administrative expenses (other than retained professional
services related to the issuance of the bonds, indebtedness, or other borrowed
moneys), non-project insurance, and operating costs of the financing authority
and the development authority in carrying out the provisions of P.L.2000, c.72
(C.18A:7G-1 et al.). Such costs of the financing authority shall be supported
by State appropriations when financial support is made available following a
budget request pursuant to subsection k. of this section. Such costs of the
development authority shall be funded by State appropriations pursuant to
paragraph (2) of subsection o. of section 4 of P.L.2007, c.137, (C.52:18A-238)
when financial support is made available following a budget request pursuant to
subsection k. of this section. In addition to its bonds and refunding bonds,
the financing authority shall have the power to issue subordinated
indebtedness, which shall be subordinate in lien to the lien of any or all of
its bonds or refunding bonds as the financing authority may determine.

���� b.��� The financing authority
shall issue the bonds or refunding bonds in such manner as it shall determine
in accordance with the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.),
P.L.1974, c.80 (C.34:1B-1 et seq.), and P.L.2007, c.137 (C.52:18A-235 et al.); provided
that notwithstanding any other law to the contrary, no resolution adopted by
the financing authority authorizing the issuance of bonds or refunding bonds
pursuant to this section shall be adopted or otherwise made effective without
the approval in writing of the State Treasurer; and refunding bonds issued to
refund bonds issued pursuant to this section shall be issued on such terms and
conditions as may be determined by the financing authority and the State
Treasurer.� The financing authority may, in any resolution authorizing the
issuance of bonds or refunding bonds issued pursuant to this section, pledge
the contract with the State Treasurer provided for pursuant to section 18 of
P.L.2000, c.72 (C.18A:7G-18), or any part thereof, or may pledge all or any
part of the repayments of loans made to local units pursuant to section 19 of
P.L.2000, c.72 (C.18A:7G-19) for the payment or redemption of the bonds or
refunding bonds, and covenant as to the use and disposition of money available
to the financing authority for payment of the bonds and refunding bonds.� All
costs associated with the issuance of bonds and refunding bonds by the
financing authority for the purposes set forth in this act may be paid by the
financing authority from amounts it receives from the proceeds of the bonds or
refunding bonds, and from amounts it receives pursuant to sections 17, 18, and
19 of P.L.2000, c.72 (C.18A:7G-17, C.18A:7G-18 and C.18A:7G-19).� The costs may
include, but shall not be limited to, any costs relating to the issuance of the
bonds or refunding bonds, administrative costs of the financing authority
attributable to the making and administering of loans and grants to fund school
facilities projects, and costs attributable to the agreements entered into
pursuant to subsection d. of this section. Notwithstanding the provisions of
this section to the contrary, if financial support is provided to the
development authority following a budget request made directly to the Division
of Budget and Accounting in the Department of the Treasury for State support
pursuant to subsection k. of this section, the proceeds of bonds and refunding
bonds that are issued pursuant to this section after the effective date of
P.L.2023, c.311 (C.18A:7G-5b et al.) shall not pay for the administrative costs
of the financing authority associated with the issuance of the bonds and
refunding bonds, including, but not limited to, administrative costs (other
than retained professional services related to the issuance of the bonds,
indebtedness, or other borrowed moneys) of the financing authority attributable
to the making and administering of loans and grants to fund school facilities
projects and costs attributable to the agreements entered into pursuant to
subsection d. of this section. Such costs of the financing authority shall be
supported by State appropriations when financial support is made available
following a budget request pursuant to subsection k. of this section.

���� c.���� Each issue of bonds or
refunding bonds of the financing authority shall be special obligations of the
financing authority payable out of particular revenues, receipts or funds,
subject only to any agreements with the holders of bonds or refunding bonds, and
may be secured by other sources of revenue, including, but not limited to, one
or more of the following:

���� (1)�� Pledge of the revenues
and other receipts to be derived from the payment of local unit obligations and
any other payment made to the financing authority pursuant to agreements with
any local unit, or a pledge or assignment of any local unit obligations, and
the rights and interest of the financing authority therein;

���� (2)�� Pledge of rentals,
receipts and other revenues to be derived from leases or other contractual
arrangements with any person or entity, public or private, including one or
more local units, or a pledge or assignment of those leases or other
contractual arrangements and the rights and interests of the financing
authority therein;

���� (3)�� Pledge of all moneys,
funds, accounts, securities and other funds, including the proceeds of the
bonds;

���� (4)�� Pledge of the receipts
to be derived from payments of State aid to the financing authority pursuant to
section 21 of P.L.2000, c.72 (C.18A:7G-21);

���� (5)�� Pledge of the contract
or contracts with the State Treasurer pursuant to section 18 of P.L.2000, c.72
(C.18A:7G-18);

���� (6)�� Pledge of any sums
remitted to the local unit by donation from any person or entity, public or
private, subject to the approval of the State Treasurer;

���� (7)�� A mortgage on all or any
part of the property, real or personal, comprising a school facilities project
then owned or thereafter to be acquired, or a pledge or assignment of mortgages
made to the financing authority by any person or entity, public or private,
including one or more local units and rights and interests of the financing
authority therein; and

���� (8)�� The receipt of any
grants, reimbursements or other payments from the federal government.

���� d.��� The resolution
authorizing the issuance of bonds or refunding bonds pursuant to this section
may also provide for the financing authority to enter into any revolving credit
agreement, agreement establishing a line of credit or letter of credit,
reimbursement agreement, interest rate exchange agreement, currency exchange
agreement, interest rate floor or cap, options, puts or calls to hedge payment,
currency, rate, spread or similar exposure or similar agreements, float
agreements, forward agreements, insurance contracts, surety bonds, commitments
to purchase or sell bonds, purchase or sale agreements, or commitments or other
contracts or agreements and other security agreements approved by the financing
authority in connection with the issuance of the bonds or refunding bonds
pursuant to this section.� In addition, the financing authority may, in
anticipation of the issuance of the bonds or the receipt of appropriations,
grants, reimbursements or other funds, including, without limitation, grants
from the federal government for school facilities projects, issue notes, the
principal of or interest on which, or both, shall be payable out of the
proceeds of notes, bonds or other obligations of the financing authority or
appropriations, grants, reimbursements or other funds or revenues of the
financing authority.

���� e.���� The financing authority
is authorized to engage, subject to the approval of the State Treasurer and in
such manner as the State Treasurer shall determine, the services of financial
advisors and experts, placement agents, underwriters, appraisers, and other
advisors, consultants and agents as may be necessary to effectuate the
financing of school facilities projects.

���� f.���� Bonds and refunding
bonds issued by the financing authority pursuant to this section shall be
special and limited obligations of the financing authority payable from, and
secured by, funds and moneys determined by the financing authority in
accordance with this section.� Notwithstanding any other provision of law or
agreement to the contrary, any bonds and refunding bonds issued by the
financing authority pursuant to this section shall not be secured by the same
property as bonds and refunding bonds issued by the financing authority to
finance projects other than school facilities projects.� Neither the members of
the financing authority nor any other person executing the bonds or refunding
bonds shall be personally liable with respect to payment of interest and
principal on these bonds or refunding bonds.� Bonds or refunding bonds issued
pursuant to this section shall not be a debt or liability of the State or any
agency or instrumentality thereof, except as otherwise provided by this
subsection, either legal, moral or otherwise, and nothing contained in this act
shall be construed to authorize the financing authority to incur any
indebtedness on behalf of or in any way to obligate the State or any political
subdivision thereof, and all bonds and refunding bonds issued by the financing
authority shall contain a statement to that effect on their face.

���� g.��� The State hereby pledges
and covenants with the holders of any bonds or refunding bonds issued pursuant
to this act that it will not limit or alter the rights or powers vested in the
financing authority by this act, nor limit or alter the rights or powers of the
State Treasurer in any manner which would jeopardize the interest of the
holders or any trustee of the holders, or inhibit or prevent performance or
fulfillment by the financing authority or the State Treasurer with respect to
the terms of any agreement made with the holders of the bonds or refunding
bonds or agreements made pursuant to subsection d. of this section; except that
the failure of the Legislature to appropriate moneys for any purpose of this
act shall not be deemed a violation of this section.

���� h.��� The financing authority
and the development authority may charge to and collect from local units,
districts, the State and any other person, any fees and charges in connection
with the financing authority's or development authority's actions undertaken with
respect to school facilities projects, including, but not limited to, fees and
charges for the financing authority's administrative, organization, insurance,
operating and other expenses incident to the financing of school facilities
projects, and the development authority's administrative, organization,
insurance, operating, planning, design, construction management, acquisition,
construction, completion and placing into service and maintenance of school
facilities projects. Notwithstanding any provision of this act to the contrary,
no SDA district shall be responsible for the payment of any fees and charges
related to the development authority's operating expenses.

���� i.���� Upon the issuance by
the financing authority of bonds pursuant to this section, other than refunding
bonds, the net proceeds of the bonds shall be transferred to the development
authority. The development authority shall establish three funds in which the
net proceeds of the bonds issued pursuant to this section, and any State
appropriations for school facilities projects, shall be deposited. The three
funds shall be as follows:

���� (1)� the SDA District Project
Fund, in which shall be deposited any funds made available for the State share
of costs for SDA district school facilities projects, which funds shall
include, but not be limited to, the proceeds of bonds issued pursuant to subsection
a. of this section for the State share of costs for SDA district school
facilities projects,
the proceeds of bonds issued
pursuant to section 3 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill) for the State share of costs for SDA district school
facilities projects,

the proceeds of any general obligation or other
bonds that may be authorized for SDA district school facilities projects, and
any State appropriations for SDA district school facilities projects;

���� (2)� the Regular Operating
District Construction and Maintenance Grants Fund, in which shall be deposited
any funds made available for the State share of costs for school facilities
projects in districts other than SDA districts, which funds shall include, but
not be limited to, the proceeds of bonds issued pursuant to subsection a. of
this section for the State share of costs for school facilities projects in
districts other than SDA districts,
the proceeds of bonds issued pursuant to
section 4 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill) for the State share of costs for school facilities projects in
districts other than SDA districts,
the proceeds of any general obligation
or other bonds that may be authorized for school facilities projects in
districts other than SDA districts, and any State appropriations for school
facilities projects in districts other than SDA districts; and

���� (3) (a) the SDA District
Emergent Project Fund, in which shall be deposited any funds made available for
emergent projects in SDA districts under the "Emergent Condition
Remediation Program" established pursuant to section 20 of P.L.2023, c.311
(C.18A:7G-47.1), which funds shall include, but not be limited to, the proceeds
of bonds issued pursuant to subsection a. of this section for the State share
of costs for SDA district emergent projects,
the proceeds of bonds issued
pursuant to section 3 of P.L. , c. (C. )
(pending before the Legislature as this bill) for the State share of costs for
SDA district emergent projects,
the proceeds of any general obligation or
other bonds that may be authorized for SDA district emergent projects, and any
State appropriations for SDA district emergent projects;��

���� (b) as used in this paragraph,
"emergent project" means a school facilities project or other capital
project eligible for State funding that would alleviate a condition that, if
not corrected on an expedited basis, would render a building or facility so
potentially injurious or hazardous that it causes an imminent peril to the
health and safety of students or staff.

���� j.���� In the event that the
annual appropriations act provides for direct funding for school facilities
projects, or in the event that a separate act appropriates direct funding of
school facilities projects from the "New Jersey Debt Defeasance and Prevention
Fund" established pursuant to section 1 of P.L.2021 c.125 (C.52:9H-2.2),
no less than 70 percent of the direct funding shall be appropriated to the SDA
District Project Fund and the SDA District Emergent Project Fund. The remaining
funds for school facilities projects shall be disbursed to the Regular
Operating District Construction and Maintenance Grants Fund.

���� k.��� In the event that the
financing authority issues bonds or incurs indebtedness pursuant to this
section for the purpose of financing all or a portion of the costs of school
facilities projects and for the purpose of providing funding to the development
authority to undertake school facilities projects, the development authority
may submit a budget request directly to the Division of Budget and Accounting
in the Department of the Treasury, for State support to provide supplemental
financing for the development authority's operations in carrying out the
provisions of P.L.2000, c.72 (C.18A:7G-1 et al.).

(cf: P.L.2023, c.311, s.9)

���� 2.��� Section 54 of P.L.2000,
c.72 (C.34:1B-5.9) is amended to read as follows:

���� 54.� Notwithstanding the
provisions of any law to the contrary, any bonds issued pursuant to P.L.2000,
c.72 (C.18A:7G-1 et al.)
[
or
]

,
P.L.2007,
c.137 (C.52:18A-235 et al.)
[
or
]

,

P.L.2008, c.39 (C.18A:7G-14.1 et al.)
, or P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill)
shall be fully negotiable
within the meaning and for all purposes of Title 12A of the New Jersey
Statutes, and each holder or owner of such a bond or other obligation, or of
any coupon appurtenant thereto, by accepting the bond or coupon shall be conclusively
deemed to have agreed that the bond or coupon is and shall be fully negotiable
within the meaning and for all purposes of Title 12A.

(cf: P.L.2008, c.39, s.7)

���� 3.��� (New section)� In
addition to the aggregate principal amount of the bonds, notes, or other
obligations authorized to be issued by the financing authority pursuant to
section 14 of P.L.2000, c.72 (C.18A:7G-14), the financing authority is
authorized to issue an aggregate principal amount of bonds, notes, or other
obligations for the State share of costs for SDA district school facilities
projects and emergent projects in an amount that shall not exceed
$7,000,000,000.� The bonds, notes, or other obligations authorized pursuant to
this section shall be issued in accordance with the provisions of P.L.2000,
c.72 (C.18A:7G-1 et al.).� The school facilities projects and emergent projects
to be funded by the proceeds of bonds, notes, or other obligations issued pursuant
to this section shall be financed, approved, and constructed in accordance with
the provisions of P.L.2000, c.72 (C.18A:7G-1 et al.).

���� 4.��� (New section)� In
addition to the aggregate principal amount of the bonds, notes, or other
obligations authorized to be issued by the financing authority pursuant to
section 14 of P.L.2000, c.72 (C.18A:7G-14), the financing authority is
authorized to issue an aggregate principal amount of bonds, notes, or other
obligations for the State share of costs for school facilities projects in all
districts other than SDA districts in an amount that shall not exceed
$3,500,000,000.� The bonds, notes, or other obligations authorized pursuant to
this section shall be issued in accordance with the provisions of P.L.2000,
c.72 (C.18A:7G-1 et al.).� The school facilities projects to be funded by the
proceeds of bonds, notes, or other obligations issued pursuant to this section
shall be financed, approved, and constructed in accordance with the provisions
of P.L.2000, c.72 (C.18A:7G-1 et al.).

���� 5.��� This act shall be
submitted to the people for their approval or rejection at the next general
election to be held at least 70 days following the enactment for the purpose of
complying with Article II, Section I, paragraph 2 of the New Jersey
Constitution.

���� 6.� The voter referendum
required pursuant to section 5 of P.L. , c. (C. ) (pending
before the Legislature as this bill) shall be submitted to the people in the
following manner and form:

���� There shall be printed on each
official ballot to be used at the general election, the following:

���� a.���� In every municipality
in which voting machines are not used, a legend which shall immediately precede
the question as follows:

���� If you favor the proposition
printed below make a cross (X), plus (+), or check (
a
) in the square opposite the word "Yes." If you are
opposed thereto make a cross (X), plus (+) or check (
a
) in the square opposite the
word "No."

���� b. In
every municipality the following question:

AUTHORIZING
ISSUANCE OF BONDS TO FINANCE SCHOOL FACILITIES PROJECTS

YES

��� Do you approve a law
authorizing the New Jersey Economic Development Authority (EDA) to borrow
money to pay for approved costs of school facilities projects?

���� Current law permits the EDA
to borrow money through the issuance of bonds to pay for the full cost of
school facilities projects in SDA districts.� �SDA districts� are districts
that have special educational needs that require supplemental programs and
facilities improvements.�

��� Current law also permits the
EDA to borrow money through the issuance of bonds to pay for one-time grants
for school facilities projects in school districts other than SDA districts.�

��� Current law includes a cap on
the total amount of bonds that the EDA may issue in order to fund school
facilities projects.� The cap for SDA districts is $8.9 billion.� The cap for
school districts other than SDA districts is $3.6 billion.�

��� The EDA has spent or reserved
all funds authorized under the current law.�

��� If this question is approved,
the EDA could borrow an additional $7 billion for school facilities projects
in SDA districts.� The EDA could also borrow an additional $3.5 billion for
school facilities projects in school districts other than SDA districts.

INTERPRETIVE
STATEMENT

NO

��� Currently, the State funds
the full cost of school facilities projects in SDA districts.� Nearly all
other school districts may also receive a one-time grant from the State for
the approved costs of a school facilities project.� This grant supports at
least 40 percent of the project�s approved costs.

���� Current law permits the New
Jersey Economic Development Authority (EDA) to borrow money through the
issuance of bonds in order to fund these costs.� The law includes a cap on
the total amount of bonds that the EDA may issue in order to fund school
facilities projects.� The current cap for SDA districts is $8.9 billion.� The
current cap for school districts other than SDA districts is $3.6 billion.�

��� The EDA has spent or reserved
all funds authorized under the current law.

���� If approved, this question
would permit the EDA to borrow an additional $7 billion for school facilities
projects of SDA districts.� The question would also permit the EDA to borrow
an additional $3.5 billion to provide more funding for the one-time grants
for school districts other than SDA districts.� �

���� �SDA districts� are
districts that have been identified by the State as having special
educational needs that require supplemental programs and facilities
improvements.

���� 7.��� This act shall take
effect on the 60th day following voter approval at the designated general
election.

STATEMENT

���� This bill increases the amount
of bonds authorized to be issued by the New Jersey Economic Development
Authority (EDA) to finance the State share of costs of school facilities
projects.

���� Specifically, the bill
authorizes $7 billion in bonds to support the approved costs of school
facilities projects in SDA districts and $3.5 billion in bonds to support the
approved costs of school facilities projects in school districts other than SDA
districts.� The bonds authorized under the bill would only be issued if
approved by the voters in a Statewide referendum.� The referendum would be held
at the next general election which, in accordance with Article II, Section I,
paragraph 2 of the New Jersey Constitution, is required to be a general
election held at least 70 days following the date of the bill�s enactment.

���� Pursuant to laws enacted in
2000 and 2008, the EDA is authorized to issue a total of $8.9 billion in bonds
to fund the State share of school facilities projects in SDA districts and $3.6
billion in bonds to fund the State share of school facilities projects in
school districts other than SDA districts.� To date, the EDA has spent or
reserved all funds authorized under the 2000 and 2008 laws.� Under current law,
the State funds the full cost of school facilities projects in SDA districts,
while a regular operating district may receive a grant through which the State
funds at least 40 percent of eligible project costs.

���� This bill provides
authorization for the issuance of an additional $7 billion in bonds to fund the
State share of school facilities projects and emergent projects in SDA
districts and $3.5 billion in bonds to fund the State share of school
facilities projects in school districts other than SDA districts.� These
provisions of the bill are to be presented to the voters at the next general
election and would only go into effect upon approval of the voters.