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DGS says facility renewal overhaul and new asset platform will improve delivery; fuel tank replacements next in queue
Summary
DGS described steps to improve the facility renewal program — a new facilities assessment platform, enhanced collaboration with agencies and a statewide master plan — while DLS highlighted a larger facility renewal backlog and questioned encumbrance timing for fuel‑tank replacement projects.
DLS presented the Department of General Services (DGS) capital budget and facility renewal program to the Capital Budget Subcommittee. DLS said the 2025 CIP shows a reduction in direct DGS capital activity from FY26–29 compared with the prior CIP because two large renovations (William Donald Schaefer Tower and Nancy Grasmick State Education Building) were canceled. DLS noted the facility renewal backlog across state facilities was estimated at about $785 million in December 2022 and that DGS‑operated facilities accounted for roughly $260 million of renewal needs in January 2025 (a 10% increase year‑over‑year).
DLS recommended approving GO bond authorizations and called attention to a $750,000 FY26 general fund request to complete a demolition engineering study for the Baltimore State Center, a $500,000 GEO bond entry for the Revolutionary War Memorial for Black Soldiers, and noted two grants (Tradepoint Atlantic container terminal and IonQ College Park headquarters) were budgeted incorrectly under DGS operating codes and should be moved into capital codes via supplemental.
DGS Secretary Atif Chaudhry testified that the agency is implementing a statewide master planning effort to prioritize limited capital dollars, increase strategic investment and identify efficiencies such as consolidation of state office space. DGS said it is improving facility renewal program management by enhancing collaboration with agency partners, implementing a new facilities assessment platform (to capture and track deficiencies and generate advanced cost projections), streamlining project selection and using job order contracting to accelerate common small projects and increase encumbrances.
DLS asked about the fuel storage tank replacement program; DGS said it expects to encumber $1.7–$2.0 million by the end of FY25 and to begin the next projects (Bel Air barrack, then other state police sites) in FY26. DGS acknowledged contingency needs related to environmental unknowns during tank removals and said it is building contingencies into estimates.
DLS also highlighted that the Clifton T. Perkins Hospital Center experienced an HVAC failure in November 2023 that required emergency temporary procurement; that emergency work will require at least $24 million in general funds in the operating budget for a temporary system and that permanent replacement is included in the FY26 capital request. DGS described work underway to improve asset management and preventive maintenance to reduce emergency procurements.
DLS recommended approving all DGS capital authorizations and urged DGS to brief committees on actions taken to better manage the facility renewal program. DGS concurred and provided details of planned process improvements; the hearing record shows no formal vote.
