Senate counsel outlined a new state aid for school construction program to be administered by the Agency of Education (AOE) under H.454.

The bill creates a program within AOE and a standing school construction aid advisory board composed of the Treasurer, the Commissioner of Buildings and General Services, the executive director of the Vermont Municipal Bond Bank, the chair of the State Board of Education and four appointed members with relevant expertise. That advisory board would report back to the legislature by December of the next year with recommendations on handling debt obligations during consolidation.

The statute would establish the School Construction Aid Special Fund, made up of legislative appropriations, transfers from the supplemental district spending reserve, and interest earnings. AOE would award state aid for eligible school construction projects and grants to the facilities master grant program, pay administrative costs and emergency aid from that fund. The bill directs AOE to analyze applications using criteria that the agency would set by rule; the bill transfers some rulemaking authority from the State Board of Education to AOE for this program.

Under the draft language highlighted to the committee, a typical non-emergency award would cover 20% of eligible debt service costs for a project; eligible projects could receive additional bonus incentives up to another 20% through rulemaking, awarded annually rather than as a single lump-sum. Emergency aid could cover up to 30% of eligible project cost, subject to a maximum eligible project cost of $300,000 (committee discussion noted this produces an eligible emergency maximum of approximately $90,000 under the stated percentages). Applicants aggrieved by AOE decisions would be able to appeal to the Superior Court, and the fiscal text anticipates AOE will hire staff to administer the program.

Committee members asked about staffing and appropriations. The fiscal office estimated initial AOE staffing for the program and program administration would cost in the range of $450,000 in FY2026 absent a full position description; the bill includes an advisory-board per diem appropriation but leaves detailed staffing and funding for AOE to report back.

The committee added a series of reporting requirements elsewhere in H.454 that would require AOE to return to the legislature with details on staffing needs, guidance for field implementation during consolidation, and school-construction program design and priorities.