The New Hampshire School Building Authority was established by statute (RSA 195-C) in 1964. The authority is authorized to issue a state guarantee of the borrowings of school districts in excess of $100,000 for the construction, alteration, or enlargement of school buildings. Up to 75% of the amount borrowed by a school district may be guaranteed by the state. The total of all state guaranteed school construction may not exceed $95 million.
There shall be a school building authority, referred to in this chapter as the authority, consisting of the state treasurer, the commissioner of education, the state fire marshal or designee, and 3 other members appointed by the governor, one of whom shall have expertise in education, one of whom shall have expertise in finance, and one of whom shall have expertise in building construction or engineering, with the advice and consent of the council, for terms of 3 years and until their successors are appointed and qualify. The governor shall designate one of said members as chairman. In case of vacancy among the appointive members of the authority, the governor, with the advice and consent of the council, shall fill the same for the unexpired term. The appointive members of the authority shall receive as compensation for their services, while actually engaged in the business of the authority, the sum of $8 per day plus their necessary subsistence expenses. The appointive members of the authority shall be paid mileage at the state employees rate, plus necessary travel expenses, only when performing activities at the request of the state board of education. (RSA 195-C:1)
The Office of School Building Aid provides administrative and technical support. The New Hampshire Municipal Bond Bank also provides technical advice.
A state guarantee will result in lower interest payments on school construction project financing if the state's bond rating is higher than the school districts. School districts with bond ratings higher than the state's will not benefit from a state guarantee.
School districts may apply for a state guarantee after the bond sale has been approved by the legislative body of the district and after the construction project has been approved for School Building Aid by the Department of Education. There is a $100 service charge.