Norma Love reports on a proposal to suspend school Building Aid, and its impact on local school districts. The Nashua Telegraph runs the Associated Press article.

A one-year suspension would give voters in Lebanon and other New Hampshire towns a chance to get their projects through this spring before Kelly’s study committee returns in the fall with recommended changes to the cash-strapped aid program. The panel is studying ways to fund the program as well as deal with inequities, such as helping poorer districts that have a harder time getting local support for projects than cities and wealthier districts. It has until November to issue a final report.

The state has provided the aid since 1955 and paid cash until the economic downturn forced it to approve borrowing $131 million for the program. The state’s annual aid payments have risen from $15 million in 1997 to nearly $45 million this year, according to Ed Murdough at the state Department of Education.

New Hampshire reimburses school districts between 30 percent and 60 percent of the costs of construction, land acquisition, planning and design, furniture, fixtures and equipment. The state sets some limits on the size of projects eligible for aid, but communities are free to exceed that at their own expense. The state does not pay its share upfront, rather it pays its portion of the principal of a district’s bond payments over the life of the borrowing. If not enough money is budgeted, districts get a pro-rated aid amount.

Back in December, we reported that suspending Building Aid wouldn’t fix the fund by itself. And Josiah Bartlett Center President Charlie Arlinghaus has argued in favor of suspending the program until the state can afford it.