Elkhorn modernization project seeks $4M budget increase due to rising construction costs

The Regular Board of Education Meeting held on June 12, 2025, in West Sacramento focused primarily on the Elkhorn Village modernization project, specifically discussing the guaranteed maximum price (GMP) for construction. The meeting featured insights from Daniel Gondura, a facilities project analyst, who explained the implications of the GMP and the factors contributing to a significant cost increase.

The Elkhorn modernization project, which was initially budgeted lower, has seen an increase of over $4 million due to market volatility and tariffs affecting construction materials. The board discussed utilizing a program reserve of approximately $7 million from the Measure Z budget to cover this unexpected cost increase. This reserve is designed to support projects in case of overruns, ensuring that the modernization can proceed without compromising other planned initiatives.

Despite the increase, the total Measure Z budget remains robust, with around $110 million available for ongoing and future projects, including a $38 million performing arts center. The board confirmed that even with the additional funding for Elkhorn, there would still be sufficient resources for other projects.

The timeline for the Elkhorn project remains a concern, as the construction is expected to be completed by late July 2026, with a proposed move-in date pushed to January 2027. This adjustment is necessary to ensure that all facilities are ready for students and staff, given the larger scope of the project compared to previous ones.

Public comments during the meeting included support for the budget increase, emphasizing the importance of completing the project without cutting essential improvements. Board members expressed their commitment to moving forward with the funding while acknowledging the challenges posed by fluctuating construction costs.

In conclusion, the board's decision to approve the increased budget for the Elkhorn modernization project reflects a proactive approach to managing unexpected expenses while maintaining a focus on future educational needs. The next steps will involve careful monitoring of the project timeline and budget as construction progresses.