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Rhode IslandS32432026 Regular SessionSenate

AN ACT AUTHORIZING THE TOWN OF PORTSMOUTH TO ISSUE NOT TO EXCEED $41,000,000 GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO FINANCE THE CONSTRUCTION, ADDITIONS, RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, FURNISHING AND EQUIPPING OF SCHOOLS AND SCHOOL FACILITIES THROUGHOUT THE TOWN .

Sponsored By: Linda L. Ujifusa (Democratic)

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 2 costs, 3 mixed.

Property taxes back these school bonds

The town must budget enough each year to pay these bonds and notes. If not, that amount is added to the annual tax levy. All taxable property in Portsmouth can be taxed without any rate or amount limit to make the payments. These bonds do not count against the town’s legal debt limit. That can allow more borrowing without raising the formal cap.

State OK needed for school aid

School projects paid with this borrowing must be approved by the Rhode Island Department of Education to get state housing aid. Without state approval, the town does not receive that aid and must cover more costs locally. This can raise the town’s share of project costs and pressure property taxes.

Portsmouth can borrow $41M for schools

The law lets Portsmouth borrow up to $41 million to build, fix, furnish, and equip school buildings. Principal payments must start within 5 years, and all debt must be paid within 30 years of each issue. Money can pay for construction, repairs, equipment, capitalized interest, short‑term notes, town advances, and issuance costs. These are general obligation bonds, so the town is responsible for repayment and taxes can be affected if other funds are not available.

Voter approval and borrowing sunset

Voters decide whether to approve this borrowing at the November 3, 2026 general election, or at a special election the council sets. The town clerk keeps a copy of the law available for public viewing until the vote. No bonds can be issued unless a majority approves. Seven years after the law takes effect, the council can cancel any unused borrowing authority.

Short-term notes and state financing options

The town can issue short‑term notes to cover costs before bonds or state or federal aid arrive. These notes must be paid within 5 years and follow limits, including a 200% cap on refunding notes. With council approval, the finance director can advance town funds to start work and repay them later from bonds or aid. The town may also use financing deals with two state agencies and choose which state rules apply.

Sponsors & Cosponsors

Sponsor

  • Linda L. Ujifusa

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 106 • No: 0

House vote • 6/10/2026

PORTSMOUTH BONDS & NOTES PASSAGE IN CONCURRENCE

Yes: 68 • No: 0

Senate vote • 5/12/2026

THE TOWN OF PORTSMOUTH -- BONDS Passage

Yes: 38 • No: 0

Actions Timeline

  1. Effective without Governor's signature

    6/26/2026Governor

  2. Transmitted to Governor

    6/18/2026Governor

  3. House passed in concurrence

    6/10/2026House

  4. Placed on the House Consent Calendar (06/10/2026)

    6/10/2026House

  5. Committee recommends passage in concurrence

    6/9/2026

  6. Scheduled for consideration (06/09/2026)

    6/7/2026

  7. Referred to House Finance

    5/13/2026House

  8. Senate read and passed

    5/12/2026Senate

  9. Placed on Senate Calendar (05/12/2026)

    5/8/2026Senate

  10. Committee recommends passage

    5/7/2026

  11. Scheduled for hearing and/or consideration (05/07/2026)

    5/1/2026

  12. Introduced, referred to Senate Housing and Municipal Government

    5/1/2026Senate

Bill Text

  • S3243 - As Introduced

    5/1/2026

    HTMLPDF

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