Conduit Street

During a special legislative session on Tuesday the Wicomico County Council approved writing a letter to support construction on a new Bennett Middle School. The Council, whom previously deliberated on the funding of  the new middle school, voted this time in favor  (4-3) of writing a letter to accompany one already written by County Executive Rick Pollitt.

The Daily Times reports:

In the week since the council took its first vote, the state’s Interagency Committee on School Construction, given the lack of support from the County Council, began reappropriating millions of dollars it planned to give Wicomico County during the upcoming fiscal year to projects outside the region.

The committee was planning to move $3.85 million of $4.5 million to school construction and renovation projects on the western shore. If that money will now stay put given the County Council’s reversal remains to be seen.

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The alternative funding plan, if approved by the County Council once it receives the operating budget for fiscal year 2013 in April, would bond $12.5 million for construction of the school during December.

Today, representatives from the Wicomico County Board of Education will speak with the Maryland Board of Public Works.

A September 18 Herald-Mail.com article discusses the increased interest in alternative school construction funding methods in light of current economic challenges.  The Maryland Public School Construction Program hosted a seminar on September 19 which highlighted alternative funding methods.  See previous Conduit Street blog coverage.

With state and local governments continuing to look at tough economic times, [Public School Construction Program Executive Director David] Lever’s office is encouraging discussion about financing alternatives, such as a “design build finance maintain operate” model.  …

“My hope is that we’ll be able to put together a very good study group … and explore this more to see whether it does make sense,” Lever said of alternative financing ideas.

If the biggest task statewide is tackling existing school buildings that need renovations, the private vendor model might not work well, Lever said.

The article also discusses the possible extension of the recommendation of the of the 2004 Task Force to Study Public School Facilities to spend a minimum of $250 million a year for school construction through FY 2013 in order to maintain minimum standards.  As previously reported on Conduit Street, MACo has adopted school construction funding and the extension of the Task Force’s recommendation as a 2012 legislative initiative.

“It’s been a tremendous amount of money and it’s been a tremendous help. There’s no question about that. We hope that that will continue, but we need to do more,” [Public School Construction Program Executive Director David] Lever said Wednesday.  …

Les Knapp, associate director for the Maryland Association of Counties (MACO), said the organization is concerned about the possible lapse after fiscal 2013 and wants to see the $250 million annual pool extended in future years.

Recognizing the current economic situation, Knapp said MACO officials think keeping the $250 million annual level is a “reasonable goal.”  …

“Part of the reason we have such a well-regarded school system (in Maryland) is we have such good school facilities,” Knapp said.

The Board of Public Works approved $264.6 million for public school construction funding for fiscal year 2012. The capital budget includes $240.3 million in GO bonds for public school construction. An additional $9.7 million in unexpended funds from prior years is available from the Statewide Contingency Fund, of which $6.2 million is reserved for specific local school systems. An additional $47.5 million of general funds is appropriated through House Bill 1213 for public school construction projects in local jurisdictions.   Of the $264 million, approximately $257 Million will be applied to specific projects and the remainder is being held in reserve.

Securing at least $250 Million in public school construction funding was a MACo legislative initiative for 2011.

Detailed project approval listing by county for FY 2012 School Construction Funding

Yesterday the state  Board of Public Works approved $264 million for school construction throughout the state, however both Charles and Wicomico counties have already requested a delay in new building construction until they can determine if they are able to come up with the remaining funding needed to finish and operate the schools. The Baltimore Sun reports:

“We’ve never dealt with anything like this before, where we’ve come to this sort of crisis point,” David G. Lever, director of the state’s Public School Construction Program, said of the requests by Charles and Wicomico counties. “It’s a real bellwether of the economy.”

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Charles County officials have asked the state for another 120 days to decide whether they can accept $6.8 million in state money to build what was to be a huge, state-of-the-art high school in Waldorf. The county commissioners aren’t sure if they will have the tax base to operate the planned St. Charles High School, a project in which the state has already invested $3.5 million and the county $8 million.

A new middle school in Wicomico County, which had been set to receive $5.2 million in state money Wednesday, is also on hold. The County Council voted in March to delay construction on the new Bennett Middle School in Fruitland for a year. With the county’s capital money off the table, Wicomico officials withdrew their request for state funds.

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