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tatr of ortft ( z rye'Jinn <br /> Prjmrtntri2t of ftir (` rett5urer <br /> 325 N. SALISBURY 57RF-El <br /> HARLAN E <br /> RALEIGH, NORTH CAROLINA 27611 <br /> S T A T E TREASURER <br /> Rev Public School aConstr Construction uction Costs <br /> We are pleased to review alternative ways to fund public school <br /> construction costs. We are also pleased with the interest and constructive <br /> concern expressed to you by county commissioners, legislators, and other <br /> officials involved in the funding process. <br /> First, of course, is our traditional method <br /> bofteachocou county Tiisuing <br /> bonds on its own faith and credit when approved <br /> procedure will continue t° b available <br /> commissnoners will change <br /> have the this <br /> authoityauthority <br /> tos <br /> contemplated. Each board o f county hea loar Punt <br /> decide whether to borrow on the open market or from the prop . <br /> In either event, local sales tax revenues are available for debt service. <br /> Second, local pay-as-you-go financing may be followed, using the local <br /> revenue stream created by the General Assembly's earmarking of ocal sales <br /> tax revenues for school construction and debtisservice. T isava method dilfty of <br /> financing does not require a rernm While pay-as-you-9° is a <br /> funds and continuing annual appropriations.be ilei ay-a -Y U-g length of <br /> desirable objective, its effectiveness may be mitigated <br /> a single the building <br /> time necessary to accumulate enough money with basic education <br /> bui <br /> and by the present need to catch-up and to comply <br /> facilities constr During the accumulation period, the impact of <br /> inflai on on co uctiioncstscould well equalorexceed the debt service <br /> requirements of a bond issue. <br /> Third, is a local combination of issuing bonds and pay-as-you-go, <br /> required on availability revenues and the that <br /> salesrta to as- ou- o the commissioners may have to <br /> sales tax revenues utaxes°forad2bt service. <br /> levy increased property <br /> Fourth, the as well assume proceedslofyState for cbond • <br /> of construction, or a combination of bonds and <br /> issues, appropriations for pay-as-you-go, <br /> pay-as-you-go. This approach would probably mean that the General Assembly by <br /> would have m to levy erstatewide, rease local option <br /> sales of <br /> county commissioners, <br /> this method of financing would be the lower borrowing costs associated with <br /> Local Govern- <br /> l lic Employees Social Security Agency, I.eciclati a Retirement Fund,Escheats Fund, and Tax Review <br /> The Pepatl eat of State TIenttlrer includes Local Gucernrnent Commission, reaehery' and State Employees' Retirement System, <br /> monL•d F:mplo)et'� Itx4irement. F$sL!'nl, Public <br /> Pearl <br />