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Published: Aug 05, 2008 09:29 PM
Modified: Aug 07, 2008 12:19 PM

Lottery will help pay for schools
 
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Smithfield — Johnston commissioners will use all of the county’s ongoing lottery proceeds to pay for new high schools in the Cleveland and Corinth-Holder communities.

On Monday, commissioners agreed to borrow $30 million from First Citizens Bank to cover the cost of the Cleveland high school. The school was originally expected to cost $30 million, but rising steel, oil and copper prices have pushed that price to at least $42.5 million. (Commissioners are borrowing $30 million from the bank because they had already moved $15 million from the Cleveland project to pay for another high school in the Corinth-Holder community. That decision left only $15 million for the Cleveland high school.)

The county will use lottery money to repay the $30 million loan over the next 19 years. In the past, the county had agreed to use $2 million a year in lottery money for debt service, and the remaining $1 million went to yearly capital projects, including renovations to buildings. Commissioner Allen Mims made a motion to set aside all lottery proceeds, typically some $3.5 million a year, to debt service.

“Now, because of this overrun on these two high schools being built, we need to come up with some kind of plan to make it work to pay for it,” said County Manager Rick Hester. “If things don’t work out with our revenues, we will have to come back and look at our entire budget. Hopefully, things will come in better than anticipated.”

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