Governor Kay Ivey has proposed a $1 billion construction bond issue for schools across the state to make safety improvements, technology improvements, and construction. Ivey first announced the bond issue in her State of the State address earlier this week, making it the state’s largest capital improvement project in more than a decade.
The proposed distribution formula states 73% of the money going to the K-12 school system and 27% going to 2 and 4 year colleges. This formula would give every K-12 school system in each city and county a base distribution of $200,000 and then added money based on the school system’s size. At current interest rates, the bond issue would cost the state an estimated $80 million per year for 20 years.
The proposal now requires legislative approval.