FY 2014 PUBLIC SCHOOL CONSTRUCTION PROGRAM

David LeverExecutive Director

Public School Construction ProgramFebruary 27, 2013

Maryland Association of Counties

Frederick County: Lincoln ElementaryLEED Silver

Renovation/Addition: Occupied Fall 2012

Baltimore City: Waverly PK-8LEED Silver or Gold

Replacement: Under Construction

FY 2013: Funding of $349.2 M includes $25 M Energy Efficiency Initiative (EEI) FY 2014: Significant increase in requests due to Energy Efficiency Initiative FY 2014 funding of $275 M does not include:

$25 M for air conditioning projects $25 M for security projects Possible reverted prior-year funds

FY 2006 - 2014 CIPRequests & Funding

$612.3 $584.0$684.2

$262.2 $257.2$349.2

$275.0

$893.8

$592.7

$871.4

$729.1$766.0$730.4

$320.5$401.3

$251.1

$333.4$266.6

$0

$200

$400

$600

$800

$1,000

FY 200

6

FY 200

7

FY 200

8

FY 200

9

FY 201

0

FY 201

1

FY 201

2

FY 201

3

FY 201

4

Requests

Funding

FY 2006 - 2014 CIP Planning and Funding Requests

251 244274

505

176148

206

317283

326

410402

252

126

233161 147148

64696183

109 136 133114 97

2531 27 23 4437 58 56 50

0

100

200

300

400

500

600

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

Funding Requests

Funding Approved

Planning Requests

Planning Approved

FY 2014: Interim 90% Planning and Funding Approvals are included

The Capital Improvement Program: Changes from FY 2013

• Reversal of five years of declining requests due to:– Energy Efficiency Initiative: $25 M in State funds have leveraged

$80M in local funding; energy savings accrue to local accounts– Improved local fiscal projections?

• Also:– Some increases in construction costs reported:

• Competition is declining • Reduction of plant capacity (equipment and materials)

– Student Enrollments:• Stable or declining in some jurisdictions increased attention to

renovation rather than building capacity• Significant growth in a few others due to the economic situation

continuing need for new or enlarged schools

The FY 2014 Capital Improvement Program

• Governor’s Preliminary Capital Budget for School Construction: $250,000,000

• Governor’s Submitted Capital Budget: $335,658,000– $275,000,000: Traditional Capital Improvement Program– $25,000,000: Air Conditioning – $25,000,000: Security Improvements (Paygo)– $6,109,000: Aging Schools Program– $4,549,000: Qualified Zone Academy Bond Program

• IAC approved recommendations on February 19 for 90% of $275 M

• IAC approved Draft Administrative Procedure Guides for Air Conditioning and Security Initiatives

The FY 2014 Air Conditioning Initiative:Draft Administrative Procedures

• Will fund projects in schools that do not have central air conditioning in instructional spaces, including:– Schools with window units in classrooms

– Schools with partial classroom air conditioning

– Schools with administration areas air conditioned

• Priority will be given to schools that currently have no air conditioning in classrooms

• Projects must meet high performance energy requirements

• Projects require a local match

• Projects must meet usual CIP procedural and substantive requirements for a systemic renovation project.

• Application schedule TBD: – Will require confirmation of local match from local government

– Approvals likely in summer of 2013

The FY 2014 Security Initiative:Draft Administrative Procedures

• Funds will be distributed proportionally, based on each LEA’s percentage of total statewide square footage in PSCP database  

• Flexible application, approval, and reimbursement process:– Applications accepted throughout year, between final approval date of procedures

and April 15, 2014– Projects less than $100,000 : administrative approval– Projects over $100,000: IAC approval – Project costs to be reimbursed when the project is complete

• Local matching funds will be required• Flexible project scope: Includes

– Items with less than a 15 year life, e.g. security identification systems– Items in schools built or completely renovated within the previous 15 years– Have a minimum value of $10,000 (a “project” could consist of similar

improvements at a number of schools)– Items installed after January 1, 2013; but supplanted local funds must be used for

security purposes– Items in State- and locally-owned relocatable classrooms.– Facility risk assessment studies

Process for Approval of Projects

• January 23, 2013: Board of Public Works approved funding for 75% of Governor’s preliminary allocation of $250 million, or $187.5 million.

• February 19, 2013: IAC approved recommendations for 90% of $275 million, or $247.5 million: – Note: If capital budget increase is not approved, IAC will revise

these recommendations

– Pending approval of final capital budget, LEAs are advised not to proceed with projects based on 90% recommendations

• April 18, 2013: IAC will decide on recommendations for balance of funding ($275 M, plus reverted funds)

• May 15, 2013: BPW will consider IAC recommendations and make decisions on the final CIP ($275 M +)

• Future Date: IAC will make recommendations and BPW will approve projects for remaining $50 M

The Annual CIP Balancing Act

Small LEAs:• Large single projects that affect a large proportion of students, economic development, etc

IAC Approach:• Ensure that critical projects can continue on schedule

Large and Intermediate Size LEAs:

• Older schools• Complex demographics

• Multiple facility needs long lists of capital projects

IAC Approach:• Funding should be reasonably scaled to number of schools, students, and projects

$275 MILLION (?)

The

IAC

$$$$$$

Local and State CIP ChallengesOur collective challenges remain as before:

• For local boards and governments: – Severe fiscal constraints continue to affect all major decisions– Urgent need to support facility upgrade or replacement in order to avoid indoor

environmental problems, breakdown of schools, higher costs later Requires prioritizing projects according to educational need, building condition, and

community preferences – Need to respond to State requirements: High Performance Schools, MBE

Requirements, educational programs (STEM, CTE, Special Education, others)– Urgent need to protect the maintenance budget to ensure no decline in existing

building conditions

• For State:– Allocate scarce resources to the most needed and eligible projects – Promote State educational mandates and initiatives (full-day kindergarten and science

classroom renovation) – Use capital funds to promote other State policies and goals: Smart Growth, High

Performance School requirements, Minority Business Enterprise participation – Continue to encourage best practices in design, construction, and procurement – Investigate public-private partnership (P3) approaches

Blocked electrical panel Blocked electrical panel, blocked egress, improper chemical storage

Neat classroom, excessive fuel load Messy classroom, excessive fuel load, blocked egress

School Safety

Issues