SENATE BILL 346--Referred to the Electorate of Oregon by the 1997 Legislature to be voted on at the Special Election, November 4, 1997.
RESULT OF "YES" VOTE: "Yes" vote authorizes legislation establishing state education lottery bond program to finance public school projects.
RESULT OF "NO" VOTE: "No" vote rejects establishing state education lottery bond program to finance public school projects.
SUMMARY: Measure authorizes legislation establishing revenue bond program to finance "state education projects" for public schools. "State education projects" means projects to acquire, construct, improve, remodel, maintain, repair public school facilities, including land, building costs; computer, telecommunications equipment; books, furniture, furnishings, vehicles, planning costs. State repays bond debt using unobligated net lottery proceeds, earnings on Education Endowment Fund, other moneys appropriated by legislature. Net proceeds of bonds limited to $150 million. Implementing legislation, already enacted contingent on measure's passage, appropriates funding only for school district projects.
ESTIMATE OF FINANCIAL IMPACT: The measure authorizes the sale of Lottery-backed revenue bonds with a principal sum of up to $150 million, plus an amount equal to bond issuance costs and reserves. The proceeds are to be used for the acquisition, construction, improvement, remodeling or repair of public school facilities throughout Oregon and the purchase of telecommunications equipment, computers, software and related technology, books, furniture and vehicles. The bonds, plus interest, will be repaid through a Lottery revenue allocation of approximately $15 million per year beginning in fiscal year 2000. If issued at recent interest rates and a 15 year pay back period, total interest costs are estimated at $71.4 million.
Be It Enacted by the People of the State of Oregon:
SECTION 1. (1) The Legislative Assembly may enact legislation to establish a state education lottery bond program that provides financing for state education projects. The Legislative Assembly may pay the debt service of state education lottery bonds from earnings on the Education Endowment Fund, unobligated net lottery proceeds and other moneys that the Legislative Assembly may appropriate for such purpose. State education lottery bonds may be issued in an aggregate principal amount that produces net proceeds for state education projects that shall not exceed $150 million.
(2) As used in this section, "state education projects" means projects for the acquisition, construction, improvement, remodeling, maintenance or repair of public school facilities in the State of Oregon, including land, site preparation costs, permanent or portable buildings and equipment, telecommunications equipment, computers, software and related technology, textbooks, library books, furniture and furnishings, vehicles, costs of planning for bond issues and capital improvements, the payment of debt service on obligations, other than general obligation bonds, issued for such projects and holding in reserve for any of the purposes described in this subsection.
SECTION 2. This Act shall be submitted to the people for their approval or rejection at a special election held throughout this state on November 4, 1997.
NOTE: Boldfaced type indicates new language; [brackets and italic] type indicates deletions or comments.