EAST PROVIDENCE HIGH SCHOOL BUILDING PROJECT: FINANCES
- The State of Rhode Island has initiated a School Construction Program to transform and replace inadequate public school buildings throughout the state.
- The total cost of building the proposed new East Providence High School is set not to exceed $189.5 million, including all demolition costs.
- The financing for the project will be determined by two bond referendum measures on November 6, 2018:
- Question 1, a statewide referendum to approve a $250 million bond for school facilities construction, and
- Question 4, a local referendum to approve $189.5 million bonds for a new East Providence High School.
- The Rhode Island Department of Education (RIDE) has determined that $135.6 million of the East Providence project is eligible for State reimbursement.
- State reimbursement on that amount will range from at least the current rate of 54.4 percent up to 74.4 percent. The final percentage depends on the “incentives” that the project achieves, as defined in the statewide bond referendum.
- If voters approve Question 4, the project will move forward with at least the baseline reimbursement of 54.4 percent of eligible costs already approved by the State.
- Voters also must approve Question 1, the statewide bond referendum, in order for East Providence to receive additional reimbursement for “incentives” of up to 20 additional percentage points.
- Based on these scenarios, the impact on the residential tax rate will range from $0.76 to $1.17 per $1,000 assessed. The average assessment for a single-family home in East Providence is $170,578. At that assessment, the corresponding tax impact is approximately $130 to $200 per year, or $11 to $17 per month.*
* Source: City of East Providence Finance and Assessment Office.