The Vermont Statutes Online

Title 16: Education

Chapter 123: State Aid for Capital Construction Costs

• § 3441. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3442. Repealed. 1964, No. 40 (Sp. Sess.), § 8, eff. March 13, 1964.

• §§ 3443, 3444. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3444a. Repealed. 1999, No. 29, § 52(a).

• § 3445. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3446. Repealed. 1964, No. 40 (Sp. Sess.), § 8, eff. March 13, 1964.

• § 3447. School building construction; State bonds; city as school district

  The State Treasurer may issue bonds under 32 V.S.A. chapter 13 in such amount as may from time to time be appropriated to assist incorporated school districts, joint contract schools, town school districts, union school districts, regional career technical center school districts, and independent schools meeting education quality standards that serve as the public high school for one or more towns or cities, or combination thereof, and that both receive their principal support from public funds and are conducted within the State under the authority and supervision of a board of trustees, not less than two-thirds of whose membership is appointed by the selectboard of a town or by the city council of a city or in part by such selectboard and the remaining part by such council under the conditions and for the purpose set forth in sections 3447-3456 of this title. A city shall be deemed to be an incorporated school district within the meaning of sections 3447-3456 of this title. (Added 1995, No. 185 (Adj. Sess.), § 71, eff. May 22, 1996; amended 2001, No. 8, § 14; 2001, No. 33, § 5; 2011, No. 129 (Adj. Sess.), § 6, eff. May 11, 2012; 2015, No. 23, § 28.)

• § 3448. Approval and funding of school construction projects; renewable energy

  (a) Construction aid.

  (1) Preliminary application for construction aid. A district or independent school eligible for assistance under section 3447 of this title that intends to construct or purchase a new school, or make extensive additions or alterations to its existing school, and desires to avail itself of State school construction aid shall submit a written preliminary application to the Secretary. A preliminary application shall include information required by the State Board by rule and shall specify the need for and purpose of the project.

  (2) Approval of preliminary application.

  (A) When reviewing a preliminary application for approval, the Secretary shall consider:

  (i) regional educational opportunities and needs, including school building capacities across school district boundaries, and available infrastructure in neighboring communities;

  (ii) economic efficiencies;

  (iii) the suitability of an existing school building to continue to meet educational needs; and

  (iv) statewide educational initiatives and the strategic plan of the State Board of Education.

  (B) The Secretary may approve a preliminary application if:

  (i) the project or part of the project fulfills a need occasioned by:

  (I) conditions that threaten the health or safety of students or employees;

  (II) facilities that are inadequate to provide programs required by State or federal law or regulation;

  (III) excessive energy use resulting from the design of a building or reliance on fossil fuels or electric space heat; or

  (IV) deterioration of an existing building;

  (ii) the need addressed by the project cannot reasonably be met by another means; and

  (iii) the proposed type, kind, quality, size, and estimated cost of the project are suitable for the proposed curriculum and meet all legal standards.

  (3) Priorities. Following approval of a preliminary application and provided that the district has voted funds or authorized a bond for the total estimated cost of a project, the State Board shall assign points to the project so that the project can be placed on a priority list based on the number of points received. Once a project receives points, if it does not receive funding in a given year, it shall not lose points in subsequent years and, pursuant to rule of the Board and provided the scope of the project remains the same, it shall gain points due to length of time on the list and may gain points for any other reason. The points shall be assigned in the following priority:

  (A) First priority is given to emergency projects in excess of $100,000.00 that address threats to the safety and health of students or employees created by unanticipated circumstances or events.

  (B) Second priority is given to construction projects in excess of $10,000.00 that address a need occasioned by deterioration of an existing building or equipment pursuant to subdivision (2)(A) of this subsection (a) and that extend the useful life of the building but that do not make additions or extensive alterations to existing school facilities in which students are provided services. Examples of projects given priority under this subdivision (B) are replacement, addition, or repair to utilities; projects that address environmental quality issues; repair of a roof; replacement of an existing space-heating, water-heating, cooling, or refrigeration system; and replacement or upgrading of mechanical equipment.

  (C) Remaining projects are given priority based on consideration of the relative degree of need pursuant to subdivision (2)(A) of this subsection (a).

  (4) Request for legislative appropriation. By January 15 of each year, the State Board shall present the House Committee on Corrections and Institutions and the Senate Committee on Institutions with its annual capital construction funding request. Following receipt of the request, the Committees shall recommend a total school construction appropriation for the next fiscal year to the General Assembly. The General Assembly shall not revise the order of the project priorities presented by the State Board. The funding request to the Committees shall be in the form of separate line items as follows:

  (A) a list of projects that have been assigned points in their order of priority, including the voted funds or authorized bond amount for each project;

  (B) the cost of emergency projects that the State Board has approved but not yet reimbursed due to insufficient funds, as well as the estimated cost of those that might be approved in the coming year under subsection (d) of this section;

  (C) the cost of projects to extend the life of a building that the State Board has approved but not yet reimbursed due to insufficient funds, as well as the estimated cost of those that might be approved by the State Board in the coming fiscal year under subdivision (3)(B) of this subsection (a).

  (5) Final approval for construction aid.

  (A) Unless approved by the Secretary for good cause in advance of commencement of construction, a school district shall not begin construction before the State Board approves a final application. A school district may submit a written final application to the State Board at any time following approval of a preliminary application.

  (B) The State Board may approve a final application for a project provided that:

  (i) the project has received preliminary approval;

  (ii) the district has voted funds or authorized a bond for the total estimated cost of the project;

  (iii) the district has made arrangements for project construction supervision by persons competent in the building trades;

  (iv) the district has provided for construction financing of the project during a period prescribed by the State Board;

  (v) the project has otherwise met the requirements of sections 3447-3456 of this title;

  (vi) if the proposed project includes a playground, the project includes a requirement that the design and construction of playground equipment follow the guidelines set forth in the U.S. Consumer Product Safety Commission Handbook for Public Playground Safety; and

  (vii) if the total estimated cost of the proposed project is less than $50,000.00, no performance bond or irrevocable letter of credit shall be required.

  (C) The board of trustees of an independent school may submit a written final application to the State Board for a project for which a preliminary application has been approved by the Secretary, provided that each municipality represented on the board of trustees has voted funds or authorized a bond issue for 100 percent of the municipality’s estimated share of the project in an amount determined by the Secretary under this section.

  (D) The State Board may provide that a grant for a high school project is conditioned upon the agreement of the recipient to provide high school instruction for any high school pupil living in an area prescribed by the Board who may elect to attend the school.

  (E) A district may begin construction upon receipt of final approval. However, a district shall not be reimbursed for debt incurred due to borrowing of funds in anticipation of aid under this section.

  (6) [Repealed.]

  (7) Award of construction aid.

  (A) Except as provided in other subdivisions of this subdivision (7) and elsewhere in law, the amount of an award shall be 30 percent of the approved cost of the project.

  (B) The amount of an award for the incremental costs associated with the installation of a space-heating, water-heating, cooling, or refrigeration system that uses biomass, a geothermal ground-source, wind, or solar energy as the primary heating or cooling source shall be 75 percent of the approved cost of those elements of the project specifically related to the renewable fuel source being used, provided that those elements may include the costs of necessary equipment, a chimney, air quality technology, and additional square footage necessary to house the heating unit and fuel, and further provided that those elements shall not include the costs of staff areas, site improvements relating to fuel delivery, and other ancillary costs as determined by the Secretary.

  (C) The amount of an award shall be 50 percent of the approved cost of a project or applicable portion of a project that results in consolidation of two or more school buildings and that will serve the educational needs of students in a more cost-effective and educationally appropriate manner as compared to individual projects constructed separately. A decision of the Secretary as to eligibility for aid under this subdivision (C) shall be final. This subdivision (C) shall apply only to a project that has received preliminary approval by June 30, 2013.

  (8) Eligible construction cost.

  (A) Space and cost parameters. Only those portions of a project shall be eligible for construction aid that meet space and cost parameters adopted by the State Board. The parameters shall define maximum square footage costs, maximum gross square footage per student by grade range and school size, and minimum and maximum square footage allowances per student for programs and services.

  (B) Eligible costs. Construction costs eligible for State aid may include the cost of a preliminary land test on an approved project as required under 10 V.S.A. chapter 151 and any expenditures of federal funds for retrofitting to conserve energy or for asbestos abatement. Expenditures of federal funds for any other purpose shall not be eligible for reimbursement by State aid under this chapter. Expenditures of funds borrowed under subdivision 563(21) of this title shall not be eligible for reimbursement by State aid.

  (9) Payment. Upon satisfactory evidence that a project approved under subdivision (5) of this subsection (a) is under construction or has been constructed, and upon appropriation of funds sufficient to fund the State aid due under this section, the State Board shall certify an award for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment of one-half of the award, or the entire award if the project is complete. After a project has been completed according to approved plans and specifications and the cost thereof has been audited by the Agency, the Secretary shall certify the remainder of the award due for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment. Provided, however, if a project that is included on a prioritized list, for which list the General Assembly has appropriated funds in any year, is not eligible to be certified for one-half of the award or for the entire award, and if another project of lesser priority is eligible for certification, nothing in this section shall preclude the State Board from certifying an award for the lesser priority project prior to the higher priority project.

  (b) Refund upon sale. Upon the sale by a district of any item, building, or unit that may be relocated, for which State construction aid was awarded under this title, the district shall refund to the State a percentage of the sale price equal to the percentage of construction aid received. In no event shall the sum refunded be in excess of the amount of the original State aid received for the purchase of the item, building, or unit. All refunds shall be deposited with the State Treasurer and used for school construction aid awards.

  (c) Repayment as a condition of general aid. No school district shall receive any State general aid unless the school district complies with subsection (b) of this section.

  (d) Emergency aid. Notwithstanding any other provision of this section, the Secretary may grant aid pursuant to subdivision (a)(7) of this section for a project the Secretary deems to be an emergency, up to a maximum total project cost of $100,000.00.

  (e) Rules. The State Board shall adopt rules pertaining to school construction and capital outlay.

  (f) Aid in excess of statutory percentages. Notwithstanding any provision of law to the contrary, no approved school construction project deemed eligible by the Secretary for State construction aid in excess of the percentages set forth in subdivision (a)(7) of this section shall be guaranteed such additional funding until the additional funding is approved by the General Assembly. (Added 1995, No. 185 (Adj. Sess.), § 72, eff. May 22, 1996; amended 1997, No. 60, § 36, eff. July 1, 1998; 1999, No. 29, § 51; 2001, No. 61, § 60, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), §§ 60, 66, eff. June 27, 2002; 2003, No. 121 (Adj. Sess.), §§ 52, 59, eff. June 8, 2004; 2005, No. 147 (Adj. Sess.), §§ 41-43, eff. May 15, 2006; 2007, No. 52, §§ 33-35, eff. May 28, 2007; 2007, No. 82, § 20; 2007, No. 200 (Adj. Sess.), § 43; 2009, No. 161 (Adj. Sess.), § 39, eff. June 4, 2010; 2011, No. 40, § 42, eff. May 20, 2011; 2013, No. 92 (Adj. Sess.), § 217, eff. Feb. 14, 2014; 2015, No. 93 (Adj. Sess.), § 1; 2015, No. 93 (Adj. Sess.), § 3, eff. July 1, 2020.)

• § 3448a. Appeal

  Any municipal corporation or independent school as defined in section 3447 of this title aggrieved by an order, allocation, or award of the State Board of Education may, within 30 days, appeal to the Superior Court in the county in which the project is located. (Added 1995, No. 185 (Adj. Sess.), § 73, eff. May 22, 1996; amended 2019, No. 131 (Adj. Sess.), § 111.)

• §§ 3448b-3448d. Repealed. 1995, No. 185, § 7a, eff. May 22, 1996.

• § 3448e. Construction of career technical education facilities; approval and funding

  (a) Definitions. For the purposes of this section:

  (1) “Construction” includes the purchase of career technical education facilities.

  (2) “School district” means, unless otherwise provided:

  (A) a school district that manages a regional career technical center or a comprehensive high school; or

  (B) a regional career technical center school district authorized under subchapter 5A of chapter 37 of this title.

  (3) “Career technical education facilities” means regional technical centers and those portions of comprehensive high schools that are designed to provide State board-approved career technical education programs and services.

  (b) Application of chapter. Except as otherwise provided in this section, the provisions of chapter 123 of this title shall apply to the construction of career technical education facilities.

  (c) Approval of regional advisory board. The Secretary may approve a preliminary application for a project involving career technical education facilities if, in addition to meeting the other requirements of this chapter, the project has received the approval of the regional advisory board as defined under section 1542 of this title. This subsection shall not apply to a project proposed by a regional career technical center school district authorized under subchapter 5A of chapter 37 of this title.

  (d) Involvement of the Department of Buildings and General Services. The Department of Buildings and General Services shall be available to consult with and share its expertise with the school district regarding the design and construction of any new career technical education facility or any alterations to existing career technical education facilities and for the analysis of any lease or lease-purchase proposal.

  (e) Award of construction aid. The amount of an award shall be 50 percent of the approved cost of the project. Where the construction of career technical education facilities is undertaken in conjunction with the construction of noncareer technical education facilities, the approved costs of the project shall be allocated as determined by the Secretary. (Added 2001, No. 149 (Adj. Sess.), § 61, eff. June 27, 2002; amended 2005, No. 147 (Adj. Sess.), § 48, eff. May 15, 2006; 2013, No. 92 (Adj. Sess.), § 218, eff. Feb. 14, 2014.)

• § 3448f. Energy performance contracting; authorization; State aid

  (a) Definitions. As used in this section:

  (1) “Cost-saving measure” means any facility improvement, repair, or alteration or any equipment, fixture, or furnishing to be constructed or installed in any facility that is designed to reduce energy consumption and operating costs or to increase the operating efficiency of facilities for their appointed functions, that is cost effective, and that is further defined by State Board rule.

  (2) “District” means a district or independent school eligible for assistance under section 3447 of this title.

  (3) “Energy and operational cost-savings” means any expense that is eliminated or decreased on a long-term basis as a result of any cost-saving measure, but does not include shifting personnel costs or similar short-term cost-savings.

  (4) “Performance contract” means a contract for the valuation, recommendation, and implementation of one or more cost-saving measures for the purpose of realizing energy and operational cost-savings where payment by the district is contingent on energy or operational cost-saving results.

  (b) Authorization. Notwithstanding any provision of law to the contrary, a district may enter into a performance contract pursuant to this section for a period not to exceed 20 years. Cost-saving measures implemented under the contract shall comply with all State and local building codes.

  (c) Selection of qualified contractor.

  (1) Request for proposals. The district shall issue a request for proposals from individuals or entities interested in entering into a performance contract (who shall become the “contractor”), shall consider the proposals, and shall select a qualified contractor to engage in final contract negotiations. In developing the request for proposals and in selecting a qualified contractor, the district should make use of any assistance available from Efficiency Vermont, the School Energy Management Program of the Vermont Superintendents Association, and other similar entities. Factors to be considered in the final selection shall include contract terms, comprehensiveness of the proposal, comprehensiveness of cost-saving measures, experience of the contractor, quality of technical approach, and overall benefits to the district.

  (2) Financial grade audit. The person selected pursuant to this subsection shall prepare a financial grade energy audit that, upon acceptance by the district, shall be part of the final performance contract executed with the district. If after preparation of the financial grade energy audit the district decides not to execute a performance contract with the contractor, the district shall pay the qualified contractor for costs incurred in preparing the financial grade energy audit. If, however, the district decides to execute a performance contract with the contractor, the costs of the financial grade energy audit shall be part of the costs of the performance contract.

  (3) Voter approval of proposed performance contract. If the terms of the proposed performance contract permit the district to make payments to the contractor over a period of time exceeding 10 years, then the district shall not enter into a final performance contract until it receives approval from the electorate to do so.

  (d) Installment payment and lease-purchase agreements. A district may enter into a performance contract structured as an installment payment contract or lease-purchase agreement for the purchase and installation of cost-saving measures. Financing implemented through the contractor or a person other than the contractor is authorized.

  (e) Payment schedule and savings. Each performance contract shall provide that all payments between parties, except obligations on termination of the contract before its expiration, shall be made over time, and that the objective of the performance contract is implementation of cost-saving measures and energy and operational cost-savings.

  (f) State funding for energy conservation measures.

  (1) Application for construction aid. A district that intends to construct or install cost-saving measures under a performance contract and wishes to receive State school construction aid in connection with those measures shall submit a written application to the Secretary that:

  (A) specifies the need for and purpose of the project, including details of the cost-saving measure or measures proposed;

  (B) provides details concerning the qualifications of the person with whom the district has entered or intends to enter into a performance contract and concerning the district’s adherence to the selection process required by subsection (c) of this section, including detailed information regarding the assistance received from Efficiency Vermont, the School Energy Management Program, and similar entities;

  (C) provides detailed information concerning the energy and operational cost-savings projected to result from the proposed cost-saving measures;

  (D) provides detailed information concerning the amount and schedule of payments to be made under the terms of the performance contract; and

  (E) provides any other information the Secretary deems necessary for consideration of the application.

  (2) Approval of application. After consultation with the Department of Buildings and General Services and any other expert resources that may be available, including Efficiency Vermont and the School Energy Management Program, the Secretary may approve a complete application.

  (3) Priorities. Following approval of a district’s application, the State Board shall assign points, established by Board rule, to the project so that the project can be placed on a priority list distinct from but similar to the list established under section 3448 of this title, based on the number of points received. Once a project receives points, if it does not receive funding in a given year, it shall not lose points in subsequent years and, pursuant to Board rule and provided the scope of the project remains the same, it shall gain points due to the length of time on the list and may gain points for any other reason. Prioritized projects under this section shall be included in the State Board’s request for legislative appropriation as a separate and distinct line item under section 3448 of this title. Any legislative appropriation made to fund the line item for performance contracts shall not exceed 20 percent of the appropriation made in the same year to fund State aid for school construction under section 3448.

  (4) Award of State aid. A district shall not be reimbursed for debt incurred due to borrowing funds in anticipation of aid under this section. The total amount of an award shall be 20 percent of the approved total cost of the project, provided the total award shall not exceed the total payment that would be due from the district, less interest.

  (5) Eligible costs. A project or portions of a project under this section shall be eligible for aid pursuant to criteria established by State Board rule.

  (6) Payment. Upon completion of the construction or installation of the cost-saving measure, determination by the Department of Buildings and General Services that implementation of the cost-saving measures is expected to result in energy and operational cost-savings, and legislative appropriation sufficient to fund the State aid due under this section, the State Board shall certify an award for the project to the Commissioner of Finance and Management who shall issue a warrant for the payment of the award. A district awarded State aid under this section shall use the State aid solely for the purpose of paying all or a portion of the obligation due under the performance contract at the time the award is received.

  (g) Refund upon sale. Upon the sale by a district of any energy-saving measure or building in which an energy-saving measure was constructed or installed, for which State aid was awarded under this section, the district shall refund funds equal to the aid received. All refunds shall be deposited with the State Treasurer and used for awards under this section and section 3448 of this title. No district shall receive any State general aid unless the district complies with this subsection. (Added 2003, No. 121 (Adj. Sess.), § 58, eff. June 8, 2004; amended 2013, No. 92 (Adj. Sess.), § 219, eff. Feb. 14, 2014; 2021, No. 20, § 65.)

• § 3449. Repealed. 2013, No. 56, § 15(8), eff. May 30, 2013.

• § 3450. Repealed. 1995, No. 185, § 7a, eff. May 22, 1996.

• §§ 3451, 3452. Repealed. 1963, No. 213, § 6, eff. June 29, 1963.

• § 3453. Repealed. 1999, No. 29, § 52(b).

• § 3453a. Emergency operation centers and shelters

  Any school building that may be designated as a local, regional, or State emergency operation center or shelter shall be designed for use as an emergency operations center or shelter. For this purpose, the proposed project shall include the installation of a wiring harness capable of being connected to emergency electric power generation to provide for emergency heating, lighting, and communications. The wiring installation cost to upgrade emergency facilities shall be included in the budgets submitted to the General Assembly for capital funding pursuant to 32 V.S.A. § 309. The State shall pay 100 percent of such costs, which shall at the Agency level be itemized and accounted for separately from those costs in which the State only shares in the project cost. The State shall not pay for the costs of purchasing the generator. (Added 1999, No. 29, § 43, eff. May 19, 1999; amended 2009, No. 43, § 47, eff. May 27, 2009; 2021, No. 20, § 66.)

• § 3454. Deferred maintenance

  No State school construction aid shall be available under this title for any proposed project or construction if the Secretary finds the need for the project or construction has arisen in whole or in part from significant deferred maintenance. The State Board, by rule, shall define “significant deferred maintenance.” (Added 1995, No. 185 (Adj. Sess.), § 75, eff. May 22, 1996; amended 2013, No. 92 (Adj. Sess.), § 220, eff. Feb. 14, 2014.)

• § 3455. Repealed. 1999, No. 29, § 52(c).

• § 3455a. Computer aided design

  Whenever a school district or independent school makes final application for construction aid pursuant to subdivision 3448(a)(5) of this title, the district or school shall submit to the Secretary copies of site plans and building plans either in computer-aided design (CAD) format, if used, or, if not, in the form submitted by the architect or engineer to the school board or board of trustees. (Added 1995, No. 185 (Adj. Sess.), § 77, eff. May 22, 1996; amended 2013, No. 92 (Adj. Sess.), § 221, eff. Feb. 14, 2014.)

• § 3456. Limit of indebtedness

  The amount of indebtedness of an incorporated school district, town school district, or union school district incurred to finance any project approved under sections 3447-3456 of this title shall not be considered a part of the indebtedness of such local district for the purpose of determining its debt limit, as provided by 24 V.S.A. § 1762, or otherwise. (Added 1953, No. 256, § 10; amended 1955, No. 266, § 2; 2013, No. 92 (Adj. Sess.), § 222, eff. Feb. 14, 2014.)

• §§ 3457, 3457a. Repealed. 1995, No. 62, § 60, eff. April 26, 1995.

• § 3458. Repealed. 1967, No. 134, § 5, eff. April 17, 1967.

• § 3458a. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3458b. Repealed. 1977, No. 105, § 20(a).

• § 3459. Repealed. 1967, No. 134, § 5, eff. April 17, 1967.

• § 3459a. Repealed. 1977, No. 105, § 20(a).

• § 3460. Repealed. 1967, No. 134, § 5, eff. April 17, 1967.

• § 3460a. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3461. Repealed. 1967, No. 134, § 5, eff. April 17, 1967.

• § 3461a. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3461b. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• §§ 3462, 3463. Repealed. 1967, No. 134, § 5, eff. April 17, 1967.

• §§ 3464-3466. Repealed. 1969, No. 65, § 7.

• § 3467. Repealed. 1977, No. 105, § 20(a).

• § 3468. [Reserved for future use.]

• §§ 3469-3471. Repealed. 1981, No. 170 (Adj. Sess.), § 10, eff. April 19, 1982.

• § 3472. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• §§ 3473, 3474. Repealed. 1987, No. 84, § 11(2).

• § 3475. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• § 3476. Repealed. 1987, No. 84, § 11(2).

• §§ 3477-3479. [Reserved for future use.]

• §§ 3480, 3481. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.

• §§ 3482-3485. [Reserved for future use.]

• § 3486. Repealed. 1985, No. 71, § 9, eff. Jan. 1, 1992.

• § 3487. Redesignated. [Transferred]

• §§ 3488-3490. [Reserved for future use.]

• §§ 3491-3499. Repealed. 1997, No. 60, § 35, eff. July 1, 1998.