State School Construction Funding Increased To Compensate For Inflation

At its Monday meeting, the School Building Authority increased the square footage cost allowance by 46 percent to more than $430 per square foot.

West Virginia’s School Building Authority (SBA) allocates school building projects by the square foot. SBA Executive Director Andy Neptune said they found the average of $307 per square foot cost allowance, operative since 2019, did not cover the post-pandemic inflation cost increases.

“Counties were wanting to come back to us for supplemental funding to get their projects completed,” Neptune said. “Something had to be done.”   

At its Monday meeting, the SBA increased the square footage cost allowance by 46 percent to more than $430 per square foot. Neptune said school districts need to plan construction budgets with the increase – and districts that have already passed bonds need to resubmit.  

“Let’s look at that number to see how we need to be working with this,” he said. “Because ultimately we want to get this balance down and not deal with any more deficit numbers.”

Neptune said the SBA has removed its supplemental funding policy and county school systems will be responsible for cost overruns. He said 28 counties will present construction plans on Nov. 13 and 14.

The SBA will vote on those plans on Dec. 11.

Skyrocketing Building Costs Affecting W.Va. School Construction Projects

In April of last year, seven West Virginia counties (Mercer, Jefferson, Roane, Greenbrier, Mineral, Ohio and Summers) divided up $75 million in state funding to either replace, renovate or relocate outdated school buildings.

Inflated building costs are causing school construction projects across West Virginia to go back to the drawing board.

In April of last year, seven West Virginia counties (Mercer, Jefferson, Roane, Greenbrier, Mineral, Ohio and Summers) divided up $75 million in state funding to either replace, renovate or relocate outdated school buildings.

But with rising construction costs, the state School Building Authority (SBA) estimates a 25 percent increase to fund those projects, maybe more.

SBA Director of Special Projects Sue Chapman said the authority is working to refinance bonds and get an additional $29.5 million to supplement project costs.

She said each school district will also have to pare down on their original construction plans.

“Each of those counties are going to have to go back and look at their projects,” Chapman said. “And take those projects down to the minimum of what the school building authority may require in their policies for construction.”

Chapman said the state’s debt payment on the bond refinancing will come from excess lottery funds.

Nine Counties to Receive Funding for School Construction Projects

Nine counties will receive state funding for school construction projects.The largest award, $1 million, will go to Berkeley County to add six classrooms…

Nine counties will receive state funding for school construction projects.

The largest award, $1 million, will go to Berkeley County to add six classrooms to Potomack Intermediate School near Martinsburg.

Greenbrier, Wirt, Gilmer, Marion, Ohio, Fayette, Upshur and Lincoln will receive smaller grants for projects.

The Charleston Gazette reports that the West Virginia School Building Authority approved about $5.6 million for major improvement projects on Monday. The authority also approved about $1.6 million for projects affecting more than one school district.

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