Senate Education hears $1 billion School Modernization Fund update; statewide facilities assessment estimates about $19 billion in needs

The Senate Education Committee on March 7, 2025 heard a joint presentation from Gideon Tolman, financial officer at the State Department of Education, and Spencer Barzee, deputy superintendent, on the School Modernization Facilities Fund and the results of a statewide facilities condition assessment.

Tolman said the fund was created by last session’s House Bill 521 and is financed through bonds issued by the State Building Authority that will be repaid over 10 years from sales tax collections. He told the committee that districts were allowed to elect whether to receive their share as an annual installment or a lump sum and that all 116 school districts elected a lump sum. “All districts have completed the process to receive this funding,” Tolman said.

The state issued bond proceeds in two series, Tolman said. One issuance occurred in October and another in December; the department reported approximately $750 million was distributed in those issuances and additional proceeds of roughly $336.5 million were made available by the end of last month. Tolman said the authorization capped at $1 billion but favorable market conditions produced somewhat more proceeds; he said about $86.5 million remains to be distributed pending…