Any school district shall have power and authority, with the approval of the Department of Public Instruction,¹ to enter into contracts with the State Public School Building Authority to lease as lessee from the Authority any school building or any improvement thereto, and the furnishings and equipment thereof, constructed by the Authority, for a term not exceeding forty (40) years, at such rental or rentals as may be determined by the Authority, and upon the execution of a contract or contracts for the construction of, or² during the period of construction of, or upon the completion of such school buildings or improvements and the furnishings and equipment thereof, the school district shall have power and authority to lease the same as lessee, for a term not exceeding forty (40) years, at such rental or rentals as may be determined by the Authority. There shall be included in the annual budget of all school districts an appropriation to meet the amount of such rental or rentals.

Any school district shall have the power and authority to pay for operation and maintenance of any school building or any improvement thereto, and furnishings and equipment thereof, leased as lessee by it from the Authority under the provisions of the first paragraph of this section.