Mercer studies, $95M block and inflationary funds: department outlines allocations and budget forecast
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Summary
State Construction Department reported 21 Mercer (most-cost-effective-remedy) studies in process, plans to procure more consultants, and showed how the $95 million block and $20.3 million inflationary funds are tentatively allocated; department proposed additional staff and a $1.15M charter contingency for lease volatility.
The State Construction Department briefed the Select Committee on the Mercer studies program and the status of several funding pools: a $95 million block allocated earlier, inflationary funding appropriations, and near-term budget needs.
Progress on Mercer studies and consultant capacity
Administrator Shelby Carlson said the Mercer program (condition/capacity/adequacy studies) began after the 2023 session. The department rolled an initial list of 28 facilities into 21 Mercer studies; six Mercer deliverables are complete and 16 remain. Carlson said four consultant teams were originally hired, the department will reissue solicitations to attract additional consultants, and the current consultant cadence (one Mercer at a time per firm) is slowing delivery.
$95 million block and project allocations
John Rex and Carlson walked the committee through the department’s draft allocations from the $95 million block received in 2023. Projects listed as allocated or partially allocated included central-kitchen replacement (Albany 1), Campbell renovation (Conestoga elementary design), Campbell County transportation facility, Goshen County renovation, the Laramie County 5–6 prototype reconfiguration (nearly $55,000,000), ARP Elementary design, Teton County transportation facility ($17,500,000) and Pine Bluffs capacity projects. The department’s memo attached to committee materials showed those amounts tentatively spoken for; several allocations are tagged with an asterisk to indicate an active Mercer study.
Inflationary funds and remaining balances
The department reported $20,337,956 initially appropriated for inflationary supplements across specific projects; $6,900,000 of those funds were expended and approximately $13,396,000 remained at the time of the meeting. Carlson explained some inflationary tranches are tied to component projects and will not be released until the Mercer recommendation clarifies project scope (for example, certain sanitation/utility work or HVAC components are being held pending Mercer outcomes).
Budget forecast and new asks
Director McComley previewed the department’s fiscal year asks: operational increases for additional staff and travel (to support many Mercer studies), continued engineering/technical funds and a proposed charter-school contingency fund estimated at $1,150,000 to smooth immediate lease obligations when new charter schools open. The department also forecasted a major-maintenance request that grows with the statutory change (2% to 2.5% multiplier), estimating a biennial major-maintenance ask in the roughly $220 million range.
Committee action requested
The committee voted to direct staff to produce a bill draft reflecting the commission’s recommendations (motion by Senator Rothfuss, second by Representative Provenza) so members can see a preliminary budget in August. Department staff said the commission will vote on a more detailed budget in June, which the department will forward for drafting and committee review.