At the MACo Winter Conference, county leaders heard directly from Maryland’s top school construction official as they confront a familiar challenge: school construction costs continue to rise faster than available capital, even as aging facilities, safety upgrades, and modern learning standards drive demand.
MACo Executive Director Michael Sanderson moderated a candid, interview-style conversation with Alex Donahue, Executive Director of the Interagency Commission on School Construction (IAC), during “From Policy to Progress: A Conversation About What’s Next.”
The discussion focused on the widening gap between project needs and funding capacity. Labor and material costs have risen sharply, driving up prices for both new construction and renovations. At the same time, a long queue of State-approved but unfunded projects continues to grow, creating delays and uncertainty for counties trying to plan responsibly.
Donahue outlined the current school construction landscape from a statewide perspective, emphasizing that modern schools cost more to build and renovate than in past decades. He described how limited capital resources and competing demands constrain the pace at which projects can move, even when needs are well documented and approvals are in place.
Sanderson pressed on the practical consequences for counties. Rising construction costs and funding backlogs increasingly leave counties advancing projects ahead of State funding to meet enrollment, safety, and facility needs. Counties often cannot wait years for funding alignment when roofs fail, systems age out, or capacity pressures intensify.
The conversation also explored financing tools and alternatives. Sanderson raised questions about bonding, cash-flow timing, and whether the State could make significant capital investments without relying heavily on general fund dollars, especially in a tight fiscal environment. Donahue acknowledged the constraints but emphasized the importance of maintaining a viable construction pipeline while balancing broader budget pressures.
Those dynamics are at the core of MACo’s 2026 Legislative Initiative to restore balance in the State–local school construction partnership through predictable, shared funding that meets modern facility needs and ensures fiscal stability for counties and school systems.
The session took place on Thursday, December 11, 2025, at the Hyatt Regency Chesapeake Bay Hotel in Cambridge, Maryland.
More about MACo’s Winter Conference:
