Agency pays early for school projects; Savings on interest is predicted.

Byline: Craig S. Semon

BOSTON - The Massachusetts School Building Authority has accelerated $166 million in payments to more than 130 cities, towns and regional school districts, which includes $16.8 million to Worcester, $3.1 million to Dudley-Charlton, $2.9 million to Shrewsbury, $1.2 million to Southbridge and $1.3 million to Wachusett Regional.

Although the payments were due at the end of the third quarter (March 31) and the fourth quarter (June 30), they were sent out at the end of January, said Francy Ronayne, communications director for the state treasurer's office.

Katherine P. Craven, executive director of the Massachusetts School Building Authority, said communities appreciate the accelerated payments because it helps them reduce the interest costs on their borrowing and, in some instances, allows them to garner interest if a payment is not due for a few months "We've been very frugal with our money, so I think it may come as a shock to some cities and towns that we're doing this accelerated payment," Ms. Craven said. "But we figure that this is sort of us avoiding a lot of local costs.

"There's a lot of projects in your district out there that are going to be benefiting from this," Ms. Craven said.

With $16,895,756, Worcester tops the list of communities getting accelerated payments.

The Dudley-Charlton Regional School District is receiving $3,188,650.

"During these tough financial times, our district can use every bit of help we can receive," state Rep. Paul J. Kujawski, D-Webster, said.

Others receiving accelerated payments: Athol-Royalston $938,153; Boylston, $474,789; Clinton, $143,275; Fitchburg, $651,710; Hudson, 442,722; Leominster, $777,710; Orange, $365,455; Quabbin, $204,796; Quaboag, $400,017; Shrewsbury, $2,903,172; Southboro, $724, 317; Southbridge, $1,245,730, and Wachusett Regional, $1,370,701.

"Instead of making these cities and towns wait, we accelerated those payments, given the financial situation that some of them find themselves in," Ms. Ronayne said. "So they had the money in their pockets under their controls months ahead of time."

State Treasurer Timothy P. Cahill, chairman of the Massachusetts School Building Authority, said he hopes the speedy turnaround will supply needed cash to communities at a time of local fiscal stress.

"We understand that cities and towns across the commonwealth are struggling financially," Mr. Cahill said. "Hopefully by accelerating these payments we will be providing a bit of relief during this tough economic time."

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