Administration and Supervision of the Expenditure of the

"Public School Building Bond Act of 1996"

by the State Board of Education

I. Chapter 631 of the General Statutes - 1995 - provides that:

A. Purpose - "It is the intent of the General Assembly by this act to provide for the issuance of one billion eight hundred million dollars ($1,800,000,000) general obligation bonds of the State to facilitate the providing of public school buildings by making grants to counties to provide funds for public school capital outlay projects."

B. Administration of Funds - "Funds disbursed under this act shall be administered and supervised by the State Board of Education and shall be used only for the purposes provided in this act."

C. Approval of Plan of Expenditure - "Each school administrative unit shall submit to the State Board of Education its plans for the expenditure of funds allocated under this act."

 

II. Introduction

To carry out the provisions of the statute and to expedite the flow of funds to local capital construction projects, it is the intent of the State Board of Education, (a) to accept the local school administrative units' 1996 Public School Facilities Needs assessment report to the School Capital Construction Study Commission as the basis for the Plan for Expenditure of funds, (b) to assist in the updating and modification of that report as necessary, and (c) to assist in the prudent expenditure of State funds in the implementation of those locally developed plans. Upon receipt of each local school administrative units' Plan for Expenditure, the State Board of Education will generate a schedule of bond fund availability for each school administrative units and that units' county finance officer.

III. Application of Funds

A. All public school facilities shall be planned to accommodate an education program which will benefit the maximum number of children.

B. Facility designs shall meet all building codes and health regulations.

C. The designs of the facilities shall comply with recognized architectural and engineering standards and shall be prepared by a registered architect and/or engineer in accordance with the law.

D. The construction of individual projects should be in accordance with the priorities and needs identified in the 1996 Public School Facilities Needs assessment report (updated or modified if necessary).

E. Facilities should be designed to be durable and economical to maintain and operate.

F. The facility plans should follow the North Carolina Public Schools Facility Guidelines

G. Funds expended on an allowable project on or after November 6, 1996 are allowed as bond projects and refunds are allowable as necessary.

 

IV. Procedures

A. A local school administrative unit shall report to the State Board the dates, amounts and projects upon which qualifying matches were made or the source(s) and amount(s) for any additional match requirements required to meet the initial Plan for Expenditure.

B. State Board approval will authorize the release of funds for the purchase of a school site when:

A local school administrative unit notifies the State Board of Education that a school site for an allowable bond project has been selected.

C. A local school administrative unit may request the release of funds for design, land survey and testing fees expended prior to the construction contract phase.

D. State Board approval will authorize the release of funds for the construction of a project when:

1. School Planning has issued a Certificate of Review on the final plans.

2. An energy analysis or cost evaluation of renovating an existing building as compared to the cost of a new facility as required by G.S.115-521c has been submitted, only when requested by School Planning.

E. Reimbursement of Bond funds to the State Board of Education.

1. State bond funds expended on a site for a project that is not in the architectural design stage or does not have a funding commitment prior to January 1, 2003 must be reimbursed. The refunded money will be reallocated unless an extension is granted by the State Board of Education.

2. At the discretion of the State Board of Education, local reimbursement of bond funds may be waived for fees paid for allowable design services that do not result in a completed project due to unforeseen and uncontrollable local changes.

F. Counties shall report annually to the State Board on the impact of funds provided under this act on the property tax rate for that year.