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HR 8204

JOINT RESOLUTION AUTHORIZING THE STATE TO ENTER INTO A FINANCING AGREEMENT RELATING TO SCHOOL CONSTRUCTION IN THE CITY OF PAWTUCKET AND AUTHORIZING THE CITY OF PAWTUCKET TO FINANCE RENOVATIONS AND REPAIRS TO SAMUEL SLATER MIDDLE SCHOOL FACILITIES, OR THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, FURNISHING AND EQUIPPING OF A NEW MIDDLE SCHOOL AND SCHOOL FACILITIES AND ALL EXPENSES INCIDENT THERETO INCLUDING, BUT NOT LIMITED TO, COSTS OF DESIGN, DEMOLITION, ATHLETIC FIELDS, LANDSCAPING AND PARKING BY THE ISSUANCE OF NOT MORE THAN $22,500,000 CITY BONDS, CITY NOTES AND/OR OTHER EVIDENCES OF INDEBTEDNESS THEREFOR

2026 Regular Session Introduced by Karen Alzate and 1 co-sponsor

The bill lets Pawtucket use up to $22.5 million in city debt and state-backed RIHEBC financing to fund upgrades or a new Samuel Slater Middle School, with voter approval.

04/28/2026 Committee recommended measure be held for further study
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WeVote Research Nonpartisan
Bill Summary · HR 8204

Summary of Bill HR 8204 (Rhode Island, 2026) – Joint Resolution and Act

Purpose and Intent

  • The bill authorizes the state to enter into a financing agreement for a Pawtucket school construction project and authorizes the City of Pawtucket to finance renovations and repairs to Samuel Slater Middle School (or the acquisition/construction of a new middle school and related facilities).
  • The overarching aim is to provide a funding mechanism that leverages lower interest rates through the Rhode Island Health and Educational Building Corporation (RIHEBC) and to align debt service with state and local fiscal planning, enabling needed school improvements without destabilizing the city’s finances.

Key Provisions and Changes

State Financing Agreement

  • The bill creates a financing framework under which the state would sign a financing agreement with the RIHEBC to fund the Pawtucket project.
  • Estimated project cost under the state financing agreement: approximately $150,000,000, plus any original issue premium and costs of issuance, debt service reserves, and capitalized interest.
  • Debt service for the RIHEBC bonds is projected to be between about $11.6 million and $18.5 million annually, with total aggregate debt service around $268.8 million to $346.4 million, assuming a 5% average interest rate and 15–30 year maturities.
  • The state’s payments would be subject to annual appropriation by the General Assembly.

City Financing Authority

  • The City of Pawtucket may issue up to $22,500,000 in city bonds, city notes, or other evidences of indebtedness to cover portions of the project costs (including renovations, repairs, acquisition/construction of a new middle school, design, demolition, athletic facilities, landscaping, and parking).
  • City bonds may take various forms (zero-coupon, serial, term, etc.) and have flexible amortization but must begin principal payments no later than five years after issue and be repaid within 30 years.
  • City bonds are not counted against the state or municipal debt limits; debt service would be funded through city appropriations, state pay-go funds, and any applicable federal/state aid.

Use of Proceeds

  • Proceeds from both state and city bond issues may be used for renovations/repairs at Samuel Slater Middle School and/or for construction of a new middle school, including related site work and costs.
  • The act contemplates coordination between city and state financing, with allocations for debt service, issuance costs, capitalized interest, and potential reimbursements to the state.

Approval and Election

  • Sections 4–17 authorize the city to issue up to $22.5 million in city debt, contingent on:
    • Approval by the Rhode Island Department of Education (RIDE) for the project.
    • A public vote in Pawtucket (November 3, 2026 or a designated local election) on whether to approve Sections 4–17 of the act.
  • If approved by voters, Sections 4–17 take effect; Sections 1–3 and the election-related provisions take effect on passage.

Affected Parties and Impacts

  • City of Pawtucket: Granted authority to issue up to $22.5 million in city debt for Samuel Slater Middle School improvements or replacement; fiscal management of debt service under city control with state-assisted financing.
  • State of Rhode Island: Would enter into a financing agreement with RIHEBC to support the project; annual appropriation authority needed; bonds would be special obligations of the RIHEBC, not the state’s general indebtedness.
  • Samuel Slater Middle School and Pawtucket students: Expected to benefit from upgraded or new school facilities, improved safety, health environment, and learning spaces.

Procedural and Timeline Elements

  • Introduction date: February 27, 2026; referred to House Finance.
  • Action history indicates committee recommendation to hold for further study (April 28, 2026) with scheduling for additional hearings anticipated.
  • Final enabling and city election are contingent on voter approval of Sections 4–17 at the November 2026 election.

This summary covers the bill’s structure, funding mechanics, approvals required, and potential fiscal implications for Pawtucket and the state.

Compiled from official sources — confirm details with the bill’s official record.

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