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EXECUIIV£ SI~MARY <br /> <br /> GoverQor James Hartin's plan for financing public school construction <br /> is the essence of State-local cooperation. By putting together the States' <br /> triple-A bond rating with that portion of local option sales tax revenues <br /> authorized and designated by the General Assembly for school construction, <br /> the Governor demonstrates that, in this case, the strn is greater than the <br /> parts. <br /> <br /> Governor Martin will urge the 1987 General Assembly to enact <br /> <br /> legislation authorizing a state-wide referer~u~ for voter approval of the <br />'plan. <br /> <br /> If approved by the voters, the State will issue its bonds and the <br />proceeds will be used to establish a public school facilities loan fund. <br />State loans to counties would be made upon application to and approval of <br />the Local Government C~,,,ission in generally the sane manner as now provided <br />by law for issuance of local government bonds. Repayment of loans to the <br />State would be provided for in written loan agreements with the State <br />Treasurer. <br /> <br /> The Treasurer has calculated that the approximate S]20 million dollar <br />portion of the local option sales tax presently earmarked for school <br />construction would provide revenues approximately equal to the annual debt <br />service requirements for a State bond issue of $1.3 billion dollars. <br /> <br /> A new survey of school construction needs is now being conducted by the <br />Oivision of School Planning of the Department of Public instruction. <br />£arlier estimates indicated needs tn excess of Sg billion dollars. <br /> <br /> <br />