University of Maryland Baltimore details sustainability upgrades, funding swap for Social Work building

The University of Maryland, Baltimore told the Capital Budget Subcommittee on the state capital budget that its new School of Social Work will include energy-efficiency measures and that officials expect certain tax credits could offset part of the cost.

Department of Legislative Services budget analyst Sarah Baker said UMB has three projects in the Capital Improvement Program and that only the School of Social Work is scheduled to receive funding in fiscal 2026. Baker told the panel the 2026 budget includes about $5,800,000 more than the prior plan because the schedule for the Social Work project was accelerated so the building can open for the fall semester.

The project’s total cost increases by $3,600,000 for additional sustainability features that the university says will make the building net‑zero ready and improve energy efficiency by about 48 percent. DLS recommends reducing the GO bond authorization by $5,000,000 for costs attributed to the sustainability components and adding language to replace that GO funding with PAYGO special funds from the Strategic Energy Investment Fund Energy Efficiency Account.

President Bruce Jarrell said the university "is especially thankful for the additional $3,600,000 for sustainability to our new School of Social Work. That is solar panels, geothermal exchange system, and high performance envelope that will be funded through this and will ensure that the facility is a model for green buildings within the University System of Maryland and the rest of the state." Jarrell also reported UMB’s estimate of potential federal tax credits under the Inflation Reduction Act: "for the school of social work up to $650,000 in credit and for the central electrical infrastructure up to $900,000 in credits." He cautioned that the university hopes to receive the credits but did not say the amounts are guaranteed.

Baker also summarized other UMB projects: a new dental ambulatory surgery center whose total cost rose from $2.8 million to $10.1 million because Medicaid and Medicare billing rules require physically distinct suites, and a multiyear campus electrical infrastructure program that has been delayed by developer agreement and integration challenges but has seen bid packages come in lower than initial estimates.

The DLS recommendation recorded at the hearing would reduce GO bond authorization for the Social Work building by $5,000,000 and replace the reduction with PAYGO special funds from the Strategic Energy Investment Fund Energy Efficiency Account. No formal vote on the recommendation was recorded in the transcript.

University comments and DLS analysis on the social work financing and tax-credit eligibility were discussion items before the subcommittee; no final committee action is recorded in the transcript. The hearing concluded the UMB testimony after questions from the panel.