FY 2014 PUBLIC SCHOOL CONSTRUCTION PROGRAM

1. FY 2014 PUBLIC SCHOOL CONSTRUCTION PROGRAM David Lever Executive Director Public School Construction Program February 27, 2013 Frederick County: Lincoln Elementary LEED Silver Renovation/Addition: Occupied Fall 2012 • Baltimore City: Waverly PK-8 • LEED Silver or Gold • Replacement: Under Construction Maryland Association of Counties

2. 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

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

4. 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

5. 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

6. 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 DRAFT DRAFT DRAFT

7. 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 DRAFT DRAFT DRAFT

8. 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

9. The Annual CIP Balancing Act • 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 TheIAC • 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 $$$ $$$ $275 MILLION (?)

10. Local and State CIP Challenges Our 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

11. School Safety Issues Blocked electrical panel Blocked electrical panel, blocked egress, improper chemical storage Neat classroom, excessive fuel load Messy classroom, excessive fuel load, blocked egress