Local bond issuance for future school capital-construction projects in New York could shrink dramatically under a proposal to cap funding approvals at $2 billion annually in Gov. Andrew Cuomo’s executive budget.

Currently, the state Education Department approves building aid reimbursement for about $4 billion annually, split between New York City and the rest of the state. The state share of funding for school projects varies according to different formulas and is disbursed over 15 to 30 years, depending on the type of project. The aid is often pledged to pay debt service on bonds issued by the district or city. 

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