Introduced
by
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). When introduced, the legislation was linked to a proposal to provide $500 million in school loan subsidies for certain kinds of projects, including creating smaller high schools in big cities, as part of Gov. Jennifer Granholm’s “Jobs Today” public works proposal. Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly, which would increase state revenue in the near term.
Referred to the Committee on Appropriations
Reported without amendment
With the recommendation that the substitute (S-3) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that does not include the "Jobs Today" public works debt proposal, exempts school districts with elections in 2005 from proposed new millage ballot language requirements, and revises penalties for fraud related to school bonds. The substitute also revises other details of proposed school bond revolving fund that do not change its substance as previously described.
The substitute passed by voice vote
Amendment offered
by
To authorize an exception to the restrictions that the new school bond revolving fund would place on new school bond debt assumed by certain school districts, Detroit in particular.
The amendment failed by voice vote
Amendment offered
by
To revise provisions related to the transition to the new revolving loan system.
The amendment passed by voice vote
Passed in the Senate 33 to 5 (details)
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly.
Referred to the Committee on Appropriations
Reported without amendment
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered
To replace the previous version of the bill with one that revises details, and strikes out an additional $500 fee proposed for schools applying to use the new loan fund.
The substitute passed by voice vote
Amendment offered
by
To authorize an exception to the restrictions that the new school bond revolving fund would place on new school bond debt assumed by certain school districts, Detroit in particular.
The amendment failed 51 to 55 (details)
Amendment offered
by
To clarify the definition of "qualified bonds" covered by the bill.
The amendment passed by voice vote
Amendment offered
by
To clarify that schools may pay off certain loans from the proposed fund sooner than the latest allowable date.
The amendment passed by voice vote
Passed in the House 106 to 1 (details)
To overhaul the School Bond Loan Fund program, essentially replacing it with a state revolving loan fund that school districts can borrow from to finance capital improvement projects (buildings). Borrowing through the School Bond Loan Fund allows schools to borrow at the same interest rate as the state. The current program does not require schools to repay loans on a regular schedule, which burdens the state with part of a school's interest expense. The bill is part of a legislative package comprised of Senate Bills 407 to 411. This bill would require districts whose millage revenue exceeds minumum debt service levels to repay the state more quickly.
Passed in the Senate 33 to 3 (details)
To concur with the House-passed version of the bill.
