BOSTON – State Treasurer Deborah B. Goldberg, Chair of the Massachusetts School Building Authority (“MSBA”), and MSBA Executive Director/ Deputy CEO Mary Pichetti, announced today that the MSBA Board of Directors voted favorably to adjust the Maximum Total Facilities Grants for certain school construction projects previously approved by the MSBA.
“These supplemental grants will assist school districts with the unprecedented construction costs that we have seen over the past few years,” said State Treasurer Deborah B. Goldberg. “They will support communities in addressing the challenges to build the schools that their students deserve.”
Today’s action was taken in response to the legislation passed regarding supplemental grants for school construction projects previously approved by the MSBA, and in conjunction with the increase to the Annual Cap effective in fiscal year 2023 (“FY23”), providing the MSBA with resources and flexibility to further assist school construction projects.
Based on the initial review of existing funding agreements, MSBA staff estimated that the supplemental grants for the projects that received Project Scope and Budge approval by the MSBA’s Board of Directors prior to October 1, 2022 and have accepted or will accept bids on or after January 1, 2022, approved in the legislation, and as shown in Chart 1 will total approximately $270 million. The Commonwealth’s fiscal year 2024 (“FY24”) Budget also provided $100 million to the MSBA in support of the supplemental grants.
For the projects identified in Chart 2, that received Project Scope and Budget approval by the MSBA’s Board of Directors after October 1, 2022 and prior to October 1, 2023, staff recommended adjustments to align the increases that will total approximately $110 million. The actual adjusted amounts for each project in Charts 1 and 2 will only be known once a district submits the required budget and project information, and partners with the MSBA to apply revised project funding limits to each project.
“The passage of the legislation in August provided the MSBA with the resources and flexibility that will enable us to provide additional support and relief to school districts impacted with cost escalations due to the pandemic.” said MSBA Executive Director Mary Pichetti. “We look forward to working in conjunction with those districts to distribute the funds. “
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.
