On June 12 at the town budget hearing, Tom Grieb alleged that Portsmouth voters were “deceived” by the School Committee, the Town Council or maybe RIDE (though he admitted he did didn’t exactly know by whom) on the specifics of the 2022 school bond that was presented to the voters. He alleged that the state reimbursement schedule was not clearly presented to voters and it was a bad financial deal for Portsmouth. 

These allegations are both wrong and misleading. As chair of the Portsmouth School Committee, I take our commitment to financial transparency and accountability very seriously, and such wild unsubstantiated accusations need to be put to rest. Just because someone doesn’t understand how housing aid reimbursement and bond financing works, doesn’t mean deception is involved. Granted, it’s a complex topic, so what follows will hopefully add clarification. 

The school administration and School Committee identify the capital needs of the district and request funding from the town. To get any state reimbursement for those capital costs, projects must either be part of an approved five-year capital plan or an emergency request. Reimbursement only occurs after the project’s completion. For Portsmouth, the standard reimbursement amount is 35 percent (poorer districts receive higher percentages). Reimbursement may be spread over several years.

The 2022 school bond fell under a special program. Reimbursement bonuses for meeting certain targets and up-front funds (called PayGo) were offered as incentives. As discussed in the voter information provided by the district, Portsmouth would receive: 1) at least 40 percent reimbursement (as opposed to 35 percent); and 2) $1,598,000 of “PayGo” funds. PayGo funds allowed the town to borrow less than the approved $21.4 million (thus lowering costs) and seek immediate reimbursement for initial construction planning costs. 

Today, we are optimistic that Portsmouth may qualify for an even higher reimbursement rate. However, in order to not overpromise, the district never claimed more than 40 percent. Moreover, because this bond was issued through RIHBC, the town will receive reimbursement not only on the bond principal payments, but also on the interest paid during the life of the bond. In total, our reimbursement will range between $12 and $13.6 million. We must wait until the projects are complete and RIDE signs off before we know the final amount. Given that Portsmouth voters supported the work that needed to be done, approving the bond is a good financial deal for the taxpayers. 

The allegation that voters were deceived regarding the costs of the bond is again false. The district undertook multiple efforts to inform the voters about the benefits and costs of the proposed bond. Examples include the community forum held at PMS and the meeting with the PCC on Sept. 7, 2021 specifically on the capital plan financing. Slides outlined an example of the debt service. As shown on the Town Net Debt service on page 20, the coupon rates for the 2022 school bond range from 3.25 to 5 percent. It is beyond the scope of the School Committee’s role to determine how the bond is financed. Once voters approve the bond, the financing structure is up to the Town Council and I’m sure they can clarify additional questions. 

The district and town have worked together to ensure that project completion and the bond financing were aligned to best benefit the town. From my perspective this is working exactly the way it was designed. First, after reviewing the needs of the district, the district planned to complete all the work in four years instead of five. For reimbursement scheduling, bond work was divided into “two projects.” Project one is everything but the bathrooms at PMS and Project 2 is the PMS bathrooms. The district is on schedule to complete Project 1 by the end of this summer with reimbursement to begin FY 26. Project 2 reimbursement would begin in FY 27. This timing aligns with the bond financing. The town pays interest only for the first three years and then the housing aid kicks in when the principal payments start.

In closing, the district was up front with the voters regarding the costs and benefits of supporting the bond. We are on track to receive the promised 40-percent incentive and may receive a higher rate. The District Building Committee composed of 18 school and town officials, School Committee and Town Council members and Portsmouth residents has met 22 times and spent hours monitoring progress and forwarding items for approval to the School Committee. District staff have been meeting weekly with the project managers. Many thanks to everyone involved in helping to deliver on time and within budget projects for the Town of Portsmouth. After all, most of us are Portsmouth taxpayers, and we want these projects done well and in a cost-effective way. 

Emily Copeland chairs the Portsmouth School Committee and co-chairs the District Building Committee.