FINANCIAL PARTNERSHIP
OSFC serves as a funding partner for school districts to finance their school construction projects. The program marked a turning point in state leadership in school construction.  Beginning with the poorest districts in the state, the program is designed to provide different levels of state funding assistance to districts depending on their wealth. 

The Finance Division of OSFC provides budgetary planning services for the agency, which are necessary for the smooth payment of costs for ongoing projects and the decision-making necessary for the start of new ones.  The division assists with the monitoring of expenditures, the issuance of funding to projects, and fiscal reconciliation once a project is completed. 

State Funding Share
Depending on the district’s assessed property valuation per pupil (the value for tax purposes is 35% of the actual “market value”), the district will pay a local share or percentage of the total project cost.  Districts can raise the local share of a school facilities project through a number of methods, including cash on hand or contributions from outside sources.  The most common method of raising a local share is through the passage of an income or property tax to raise money to sell bonds. 

Four of OSFC’s programs are funded through a combination of state and local funds-Urban Initiative, Classroom Facilities Assistance Program (CFAP), Exceptional Needs Program (ENP) and the Vocational Facilities Assistance Program (VFAP).  Districts that have not yet reached eligibility for funding through these programs may still proceed with needed facilities work through the Expedited Local Partnership Program (ELPP) for local school districts or the Vocational Facilities Expedited Local Partnership Program (VFAP-ELPP) for joint vocational school districts.  In these programs, districts proceed with a discrete portion of the Master Facility Plan (such as a new elementary school or renovation of part of an existing building).  Once the district becomes eligible for a funded program, any qualified expenditures they have made are credited toward their local share of the project. 

For more information, contact: Eric Bode, Chief Financial Officer

Loans and Other Resources
OSFC provides funding assistance in the form of loans and loan guarantees for school districts, career technical schools, and community schools.

For more information, contact: Lois Snyder, Deputy Chief of Finance