Massachusetts School Building Authority
Encyclopedia
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 tax
es 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 audit
s 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 reimbursement
s 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 district
s 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.
Treasurer and Receiver-General of Massachusetts
The Treasurer and Receiver-General of Massachusetts is an executive officer, elected state-wide every four years....
worked diligently with the state legislature to craft and pass a responsible reform plan for the school building assistance program in Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
. This reform plan pledges 20% of the state's future sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
es as a dedicated revenue stream
Revenue stream
A revenue stream is a form of revenue. Revenue streams refer specifically to the individual methods by which money comes into a company. Revenue streams may be characterized...
to pay down the existing $10.7 billion in debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
, while creating a new authority charged with managing the cost and operations of the program in the future. On July 28, 2004, legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
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
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
source for new school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...
construction for our children, and presents a significant opportunity for new economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
. 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 audit
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
s 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
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
knowing what the proper reimbursement
Reimbursement
Reimbursement is the act of compensating someone for an expense . Often, a person is reimbursed for out-of-pocket expenses when the person incurs those expenses through employment or in an account of carrying out the duties for another party or member....
s 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 district
School district
School districts are a form of special-purpose district which serves to operate the local public primary and secondary schools.-United States:...
s with local operating budget
Operating budget
An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts. It contains estimates of the total value of resources required for the performance of the operation including reimbursable work or services...
shortfalls, lowering local tax rates, or using funds formerly tied up in school debt service for other local capital improvement projects.