Board hears $80Mto125M bond projects update; rising construction costs and PSFA support noted

Rio Rancho Public Schools briefed the board on the status of 2024 bond-funded projects and budget pressures caused by higher construction costs.

The nut graf: Chief of Operations Mike Baker said the scope of work on several projects remains but that escalating construction prices have raised estimated total costs from an originally projected $80 million to roughly $103 million; combined with Public School Facilities Authority (PSFA) funding the districtstotal project obligations may reach about $124to $125 million.

Key project updates - Career and Technical Education (CTE): Baker said the CTE facility is nearly complete, with a substantial-completion extension to April 19; the project budget was described as "just under 48,000,000" and includes solar cell alternatives. Central New Mexico Community College (CNM) plans a June groundbreaking for an auto center tied to the CTE facility. - Independence High School: design development continues with a goal of 100% design by September and early work packages planned so construction can begin in May. - Rio Rancho High School: a major renovation tied to PSFA funding is in planning. Baker gave district cost estimates of $28,000,000 for core renovation plus approximately $5,000,000 for a new fine arts area and security upgrades, producing a district total near $33,000,000; PSFA's expected share was described as approximately $16,000,000. Baker also said construction escalation added about $9,000,000 to original estimates. - Cleveland High School: design contracts were awarded; PSFA funding is not attached and the new budget was described as roughly $8,000,000 (previously $5.5 million). - Pre-K and Lincoln Middle School: PSFA-funded studies and projects were reported; pre-k funding includes approximately $2,000,000 allocated for a cafeteria and kitchen at Shining Star Preschool. Lincoln Middle School's budget was described as increasing from $2.5 million to about $4.5 million.

Baker presented an overall accounting and said, "So in grand total, we're looking, the economic impact on construction, put set us back approximately 23,000,000 or about 30% on our projects. We are fortunately looking at obtaining approximately more than 21,000,000 from PSFA to to do these projects." Board members asked clarifying questions about priority timelines, athletic improvements (track resurfacing and parking at Rio Rancho High), and how PSFA rules affect project sequencing.

Legislative development Superintendent Dr. Basu Cleveland and board members noted Senate Bill 82, which the superintendent described as extending the reduced local match for PSFA construction projects through 2029; the bill was reported as on the governor's desk at the meeting.

Next steps Baker said the district plans a November bond election to seek voter approval for additional projects and funding to finish remaining items; staff will return with finer cost detail and project timing. The board directed staff to follow up on parking and access issues at athletic sites and to continue PSFA planning steps required for funded projects.

Ending Board members thanked facilities staff and noted that the projects are critical for safety, curriculum and facilities modernization. The board will return to bond scheduling and budgeting at later meetings.