State analysis finds $1.1 billion in unexpended school construction funds; IAC warns of widening funding gaps

The Department of Legislative Services (DLS) reported to the Capital Budget Subcommittee that the 2025 Capital Improvement Program (CIP) allocates $824,700,000 across seven state school construction programs, but that unexpended balances across school construction programs currently total roughly $1,100,000,000.

DLS analyst Laura Hyde told the subcommittee that of the 2025 CIP amount, $453,500,000 is proposed in general obligation (GO) bonds, approximately $302,000,000 is revenue bonds for the Build to Learn program, and $69,000,000 is special fund PEGO. Hyde said DLS is asking IAC to explain discrepancies between the CIP and IAC’s recorded balances and how the agency plans to spend outstanding balances, including whether older funds could be canceled or transferred to an unreserved statewide contingency account.

Ed Casemar, chair of the Interagency Commission on School Construction (IAC), and Alex Donahue, IAC executive director, appeared after Hyde’s presentation. Donahue said the state’s school facilities face a large maintenance need: industry-standard annual investment rates would imply Maryland school districts should be spending as much as $2.3 billion annually to keep up with capital maintenance and…