BOSTON – State Treasurer Deborah B. Goldberg, Chair of the Massachusetts School Building Authority (“MSBA”), and MSBA Executive Director/ Deputy CEO Mary Pichetti, announced that the MSBA Board of Directors voted favorably at the October 24th board meeting, to revise the MSBA Project Funding Limits Policy. In accordance with past practices, staff completed an updated review of proposed project costs, grants data, and the MSBA’s annual program funding cap, which resulted in the recommended revisions to the policy.
Specifically, the Board of Directors voted to authorize the following:
- Adjust the current policy of funding from up to $393 per square foot for building costs plus eligible demolition and abatement (exclusive of eligible sitework costs) to $550 per square foot for building costs plus eligible demolition and abatement (exclusive of eligible sitework costs); and
- Apply MSBA’s sitework cost allowance guidelines to include up to $55 per square foot in addition to the proposed building costs increase to $550 per square foot for a total construction cost funding limit of $605 per square foot plus eligible demolition and abatement.
"This Board decision is another example of the MSBA’s continued commitment to our students and districts,” said State Treasurer Deborah B. Goldberg. “Thanks to the MSBA’s partnership with communities across the state, the vote for additional funding will assist with creating innovative educational spaces that help our youth grow and thrive."
On August 9, 2023, the Governor signed a $55.9 billion-dollar budget that increased the MSBA’s Annual Cap to $1.2 billion, removes grant amounts related to the Accelerated Repair Program from the MSBA’s Annual Cap, and increases the allowable rate of growth in the Annual Cap from up to 4.5% to up to 6.5%. These changes to the MSBA statute provide additional resources and flexibility that allows the MSBA to implement a one-time higher than anticipated increase to project funding limits assisting districts with escalated school construction costs while restoring the level of invitations into the Core Grant program to levels seen in previous years.
“As a result of today’s Board decision, the MSBA can further assist school districts currently in our pipeline, and in the future, with increased reimbursement for school construction projects.” said MSBA Executive Director/ Deputy CEO Mary Pichetti. “The MSBA looks forward to our continued partnership with districts to provide 21st Century learning environments for students across the State.”
The MSBA partners with Massachusetts communities to support the design and construction of educationally appropriate, flexible, sustainable and cost-effective public school facilities. Since its 2004 inception, the Authority has made over 1,750 site visits to more than 250 school districts as part of its due diligence process and has made over $16.7 billion in reimbursements for school construction projects.
