HB 1271-S - DIGEST

(DIGEST OF PROPOSED 1ST SUBSTITUTE)

     Creates the school district credit enhancement program.

     Finds that implementation of the credit enhancement program provided for in this act can provide substantial savings to the taxpayers of the state of Washington with minimal cost or risk to the state government.  The guaranty provided by pledging the credit of the state to the payment of voter-approved school district general obligation bonds will encourage lower interest rates, and therefore lower taxes, for such bonds than school districts alone can command, despite the excellent credit history of such obligations.

     Declares that the full faith, credit, and taxing power of the state is pledged to guarantee full and timely payment of the principal of and interest on bonds as such payments become due.

     Provides that any district, by resolution of its board of directors, may request that the state treasurer issue a certificate evidencing the state's guaranty, under this act, of its bonds.

     Requires approval by the voters at the next general election.