For over a year,
various departments
of the Massachusetts
Treasurer's office
worked diligently
with the state
Legislature to craft
and pass a
responsible reform
plan for the school
building assistance
program in
Massachusetts. This
reform plan pledges
20% of the state's
future sales taxes
as a dedicated
revenue stream to
pay down the
existing $10.7
billion in debt,
while creating a new
authority charged
with managing the
cost and operations
of the program in
the future. On July
28, 2004,
legislation was
signed creating the
Massachusetts School
Building Authority
("MSBA") as a new
independent public
authority.The passage of this legislation and the creation of the MSBA provide a solution that keeps the state's commitment to cities and towns, provides an ongoing revenue source for new school construction for our children, and presents a significant opportunity for new economic development. All promises made by the state will be kept - ensuring that hundreds of new schools across our state will be built.
Katherine Craven was the first to be appointed Executive Director of the MSBA. Understanding the financial complexities behind this reform, she promised to bring a great deal of experience and professionalism to the role of Executive Director.
Staff at the Authority has worked tirelessly to resolve a backlog of over 800 audits for local school building projects to resolve remaining payments which are owed to the community. Some of these projects have been occupied by students and teachers for over a decade without the Commonwealth or the municipality knowing what the proper reimbursements should be. By the end of 2006, MSBA has made over $3B in accelerated payments to communities long-awaiting school project payments from the state. The infusion of the Authority’s cash has helped many cities, towns and regional school districts with local operating budget shortfalls, lowering local tax rates, or using funds formerly tied up in school debt service for other local capital improvement projects.
