The state’s school‑construction adviser told the Senate Budget and Taxation Committee that Maryland’s public school buildings are aging and that current capital funding levels will not cover high‑priority projects in fiscal 2026.

"In Maryland, we're serving, more than 880,000 students in K through 12 and expanding pre‑kindergarten," Alex (IAC staff) told the committee, then outlined the scale of the portfolio: about 1,400 active school facilities totaling roughly 142,000,000 gross square feet, an average building age of 31 years and a replacement value “70,000,000,000 plus.”

The interagency presenter said the statewide average facility depletion, measured by the facility condition index (FCI), is 52.6% and that 81% of school buildings fall into the two most depleted categories. "The statewide average facility percentage of depletion is 52.6%. That is about half," Alex said. He warned that deferred maintenance and rapid construction price inflation have combined to leave districts with fewer capital projects accomplished per dollar than in prior years.

Why it matters

The presenter and other speakers told the committee that the combination of an aging inventory of buildings and sharp post‑2012 increases in construction costs has created a structural funding challenge. The presentation estimated that to lower the portfolio average FCI from the low‑50s to the mid‑30s would require roughly $500,000,000 more per year over a 20‑year period. The Built to Learn Act and recent state investments have slowed the decline, the presenter said, but fiscal 2026 appropriations still create an immediate gap.

Funding figures and shortfalls

The IAC outlined fiscal‑year‑2026 legislative CIP targets totaling $450,000,000. If the committee’s expected state capital appropriation of about $314,000,000 materializes, the presenter said, approximately $134,000,000 in high‑priority projects — including blueprint pre‑K needs and urgent growth projects — would remain unfunded.

The presenter illustrated how timing and local borrowing limits complicate project delivery in smaller jurisdictions. He described a large project in a small county where the county’s 5% match would be about $30,000,000 and the county lacks the borrowing capacity to front the construction while awaiting reimbursements. "It may take us 5, 6, 7 years to pay out, right, on a reimbursement basis the state share for that project," Alex said, adding that the delay creates a cash‑flow barrier for some local governments.

Options and pilot strategies discussed

The presentation listed several approaches districts are using or exploring: public‑private partnerships (P3s), staggered project pipelines, short‑term local borrowing to forward‑fund state shares, and conversion of underused commercial space for pre‑K or whole elementary campuses. Alex told senators that three jurisdictions are actively exploring leasing commercial space for pre‑K or an elementary campus, though he declined to name them until local leaders announce plans.

Prince George’s County has already used P3s to accelerate construction, the presenter said. "Prince George's has used that provision to conduct both a locally funded public private partnership to build six schools and now most recently a second public private partnership to build eight schools that include state funding through the Built to Learn Act," Alex said. He added three of the eight schools have broken ground and that, together, the projects will total 14 P3‑built schools for Prince George’s. Other counties—Calvert, Charles and Frederick—have explored or are exploring P3s, he said. The presenter noted that any P3 that includes state participation would require separate legislative funding.

Other needs highlighted

The commission distinguished five categories of need: physical condition, educational sufficiency, capacity for enrollment growth, pre‑K space required by the Blueprint for Maryland's Future, and work needed to decarbonize buildings in line with state climate goals (decarbonization by 2045). The presenter estimated roughly 300 classrooms statewide are required to meet pre‑K space targets under the Blueprint and said the IAC recently adopted a policy allowing CIP dollars to be used on improvements to certain long‑term leased facilities when districts support that approach.

Committee responses

Senator Jackson praised the IAC’s outreach to counties and asked about nuances of P3s in Prince George’s; the presenter said Prince George’s used the state authority and local partners, with assistance from the Maryland Stadium Authority, to stand up the second P3. Another senator asked whether any systems had yet used state school construction money to convert underutilized commercial space; Alex said, "Not yet, but I have three jurisdictions currently exploring that possibility and looking at leasing space. One for pre‑K specifically and another for an entire elementary school campus." He declined to identify the jurisdictions.

No formal action was taken during the briefing; presenters offered to provide additional data at the committee’s request.

The commission provided the committee with a data‑driven warning: current capital spending slows decline but does not reverse it, and without increased annual capital investment the long‑term liabilities from deferred maintenance and replacement needs will grow.

Looking ahead

The presenter said future work will include more detailed cost‑estimating for decarbonization in partnership with the Maryland Energy Administration and continued outreach to districts on project pipelines, leasing options and P3 structures.