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Lawmakers question pace and funding for Simon Sanchez High School project; administration seeks $16.3 million predevelopment authorization
Summary
Legislators pressed BBMR and administration officials on timing, appropriation authority and a $16.3 million predevelopment figure tied to Simon Sanchez High School financing, noting two years of delay and construction‑cost escalation since the project's authorizing public law passed.
Senators pressed budget and administration officials about financing and appropriation authority for the Simon Sanchez High School project during the committee session, focusing on a $16.3 million annual appropriation line tied to predevelopment, capitalized interest and leaseback arrangements.
Why it matters: Public Law 37‑22 authorized a financing structure and a not‑to‑exceed par amount for a bond issue intended to rebuild or replace Simon Sanchez High School. Senators said the law required earlier action that did not occur, that the request for predevelopment funding could have been made sooner, and that construction‑cost escalation since the law's passage requires re‑examination of the funding plan.
BBMR director Lester Guerrero told senators the RFP for the project went out in March or April and that the administration is negotiating with the highest‑ranked offeror; he said it would not have been prudent to request the predevelopment appropriation before a vendor was selected. Guerrero confirmed the administration hopes to fast‑track financing if negotiations conclude and suggested an October market timing for the sale.
Senators repeatedly asked whether the proposed $16.3 million would have been permitted or prudent earlier. "When this law passed, you could have been putting money in the bank if you'd wanted to," one senator said; Guerrero replied that earlier action would not have been prudent given the project’s procurement stage. The committee also discussed the statutory ceilings referenced in the law — a roughly $166 million par amount and a not‑to‑exceed annual debt service around $16.3 million — and how earlier delays have reduced construction buying power because of escalation.
Committee members asked whether the budget bill contains a reliable funding source for the project; officials pointed to a mix of sources included in miscellaneous provisions and to excess‑revenue balances from FY2023 as potential one‑time sources. BBMR and OMB staff cautioned that audited FY2024 numbers are not yet available and said relying on unaudited figures adds risk.
Senators said they would pursue amendments or appropriations in the budget if the administration and public works confirm the project is ready to proceed. Several speakers emphasized that the Legislature has previously recognized the project's authorization and that the current debate centers on implementation timing and ensuring cost escalation does not leave the school underbuilt once financing is completed.
No formal action was taken; participants agreed to continue oversight as negotiations and the procurement schedule advance.
