Corrections & Institutions committee reviews FY24-25 capital budget Section 18, flags contingency needs and design‑build juvenile replacement

The Corrections & Institutions committee reviewed Section 18 of the FY24-25 capital budget Thursday, Jan. 23, examining cash‑funded planning, reuse and contingency lines and receiving staff briefings on a range of state facility projects from roofing and parking deck repairs to a proposed design‑build replacement for a juvenile stabilization facility.

Joe Ajah, director for design and construction with Buildings and General Services (BGS), said the cash appropriation supplements previously authorized bond funding and is intended to cover early planning, new space work and unforeseen conditions on renovation projects. "Projects are coming in higher than we expect only because of the bidding climate," Ajah said, and staff want contingency funds to respond when work uncovers unanticipated conditions.

Ajah described the kinds of surprises that can drive contingency spending: unrecorded conditions inside walls, unexpected ground conditions and structural deterioration discovered only after demolition. He used the McFarlane building exterior and roof work as an example, saying crews found rot in integral wood gutters and joists that had to be sistered or replaced after roof removal.

The committee heard details on several specific projects. At 32 Cherry Street and the Church Street parking garage, exposed rebar and corrosion from road salt is causing concrete spall; Ajah said crews will expose, replace and patch rusty reinforcement, then install a membrane and wearing surface. The central services roof at Hill Sacks (the low‑sloped copper roof over postal shop operations) has perforations and pinholes, and staff want to replace the roof and protect more than $500,000 in equipment beneath it.

At 120 State Street, Ajah outlined an interior renovation to replace steam distribution with a hot‑water loop and to add fresh air and rooftop HVAC units; the work will require extensive ceiling, electrical and partition work and phased relocation of occupants. He also briefed the committee on the State House HVAC discussions and on persistent flood and tunnel waterproofing needs in the State Street/Capitol complex, noting FEMA coordination is still unresolved for some tunnel repairs.

The committee received a multi‑site briefing on public safety and training facilities. Ajah said the state is studying a design‑build, lease‑back model for a proposed replacement of the short‑term secure juvenile stabilization facility (a replacement for the former Woodside program). Under the model the state would own the land and lease buildings from a private design‑build developer for a period longer than 10 years; Ajah said the approach avoids using bonded construction dollars and shifts payments into the general fund.

"We are shifting it to the general fund, which will increase our state budget," the committee chair said, urging colleagues to notify appropriations committees of the longer‑term fiscal impact of lease payments. Ajah and the chair both stressed that the committee needs to be aware of how lease payments build the recurring base of the state budget rather than representing a one‑time capital cost.

Other public safety projects briefed include a proposal to co‑locate the Vermont State Police marine unit, urban search‑and‑rescue and hazmat teams in Chittenden County; a Rutland/North Clarendon public safety facility and field station design; and upgrades to the Vermont Agriculture and Environmental Laboratory steam/heat systems (Ajah said autoclaves require steady steam pressure and the current off‑site heat plant provides variable pressure, sometimes dropping from about 48 psi toward 20 psi, which is insufficient and drives the proposal for a dedicated heat plant and summer boilers).

Ajah noted several funding and procurement items of interest to the committee: an $880,000 bonded appropriation for statewide planning and contingency that is being supplemented with cash funds; an itemized $3,000,000 referenced as coming from a separate budget for a print shop or related facility; and federal changes that affect a roughly $1,000,000 federal allocation for electric vehicle charging station work. Committee members asked about public access to charging stations and Ajah said installations will generally be placed where public access outside gated areas is feasible and that public users would pay via meters or an app when applicable.

Committee members and staff flagged schedule and implementation constraints: courthouse renovations (Washington County Superior Court) present sequencing challenges because courtrooms are recorded and noisy construction requires temporary courtrooms or off‑site relocation; parking garage work must be sequenced to limit noise impacts in functioning judicial buildings; and some projects are contingent on FEMA decisions after recent flooding in the Capitol complex.

The committee did not take formal votes on any projects during the hearing. Members directed staff to prepare line‑item testimony and to provide spreadsheets showing historic appropriations, encumbrances and the expected timing for FY26‑27 expenditures. The committee planned to reconvene at 1 p.m. to begin testimony on individual line items and continue connecting the budget details across fiscal years.

Sources: Remarks and project briefings by Joe Ajah, director for design and construction, Buildings and General Services; procedural and budget comments from the Corrections & Institutions committee chair (unnamed) during the Jan. 23 meeting.