Lawmakers hear update on $291.5 million Capitol renovation; contingency and terrace repairs flagged

State budget and facilities officials updated the Senate Appropriations and Revenue Committee on the multi-phase renovation of the state Capitol, saying the estimated $291,500,000 project remains within cost estimates but that the contingency amount and uncovered terrace reconstruction work remain major concerns.

The update came from Holly Johnson, secretary of the Finance and Administration Cabinet, and John Hicks, secretary of the Governor’s Executive Cabinet and state budget director, during the committee’s meeting. Johnson said, “the budget for the project is $291,500,000,” and Hicks warned the project contingency — the sum set aside for unforeseen conditions — is “only at $10,800,000” and may be insufficient given the building’s age and discoveries during investigative work.

Committee members were told the project is in the final design phase and that contractors remain engaged. Hicks said temporary legislative chambers’ substantial completion was pushed back to April 4, 2025, citing additional wiring work for voting and camera systems and the need to erect a canopy between the temporary chambers and the annex. Officials outlined key procurement and schedule milestones they are tracking: site and site-utility bids are due Feb. 27, 2025; roofing and fourth-floor structural-demolition/modification bids are due in April 2025; major renovation bids are to be reconciled in late May with a May 23, 2025 bid review cited multiple times; construction is slated to start July 7, 2025, and roofing/fourth-floor work is expected to begin in late June 2025.

Hicks said some items removed from the current scope to keep the project within budget amount to roughly $60 million, “and a large portion of that over $40,000,000 was regarding the unexpected significant renovations that would be needed to the terraces, to the north, south and east portions of the terraces.” He said a third-party review of cost estimates and scope had been requested by the governor because “you don't know what you don't know” in a 115-year-old building.

Senators pressed staff to clarify timing, costs and tradeoffs. Senator Rawlings asked whether scaffolding costs had been rented long-term and why bids are still being solicited years into the project; Johnson and Hicks differentiated the dome scaffolding project from the current renovation scope and said the dome tiles are being manufactured overseas. Senator Neal asked whether delay would increase future costs; Hicks said “it would be cheaper today than it would be 5 years from now.” Several senators asked for an alternate bid line item so the legislature could see a firm estimate for reconstructing the terraces now rather than later.

Committee members also raised the schedule and final inspections for the temporary chambers. Charles Busch, a project staff member, said the code review was expected that month and that final punch-list items remain to be completed. Officials said the governor’s office staff are being planned to relocate to the State Office Building, with the governor’s office itself in the Old Governor’s Mansion downtown if work proceeds.

Lawmakers asked the administration to provide a clear contingency-need estimate and said they would revisit the issue after bid openings. Hicks indicated the governor sought legislative feedback on whether the contingency should be increased if unforeseen conditions exceed the current $10.8 million contingency when bids are received. Senator Mays Bledsoe and others suggested the committee revisit the matter in June or July after May bid openings.

No formal votes or motions were recorded on the renovation during the committee session. The officials and the committee agreed to reconvene on the issue after the May bid reconciliation to determine next steps.

Less-pressing logistical matters discussed included the likely duration lawmakers will use the temporary chambers (officials said the temporary chambers could house legislative sessions through the 2028 session, with the hope of returning for the 2029 session) and the lack of a final plan for the temporary structure after it is removed.

Committee members requested a final contingency figure from the administration and additional detail on any LRC-driven change requests that affected the temporary chambers’ completion schedule.

Ending: Committee leadership said they would follow up after the May bid reconciliation and that staff would provide the requested contingency estimate and a summary of change requests that affected the temporary chambers’ schedule.