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Fulton County Schools present capital-plan update as construction costs surge and reserves top $329 million
Summary
District leaders told the board on April 17 that construction costs have risen about 42% since the capital plan was set, and staff proposed reallocating set-asides while preserving design funds for planned projects; SPLOST reserves stand at roughly $329,018,673.
Fulton County Schools officials presented a year‑four update on Capital Plan 2027 on April 17, telling the Board of Education that rising construction costs and supply‑chain delays have prompted adjustments to project timing and set‑aside allocations.
Chief operating officer Noah Malouf said the district is reassigning some set‑aside funds and moving smaller projects between fiscal years to protect the overall plan while keeping priority work on track. He noted a roughly 42% increase in construction costs traced to commercial construction trends since the plan was developed and said the district is pursuing cost‑control measures to maintain commitments to schools. “These adjustments will allow our projects to move forward and allow the district to respond to any emerging needs,” Malouf said.
Marvin Doreef, the district’s chief financial officer, described the district’s pay‑as‑you‑go approach to capital spending and outlined cash‑flow monitoring practices. Doreef and Malouf reported SPLOST reserves of about $250,000,000 for SPLOST 6, roughly $70,000,000 for SPLOST 5, and a non‑SPLOST reserve near $10,000,000, for a combined balance of $329,018,673. Doreef said the district does not expect short‑term borrowing and that a long‑term obligation tied to a Union City qualified school construction bond will mature on Jan. 1, 2027.
Staff highlighted several FY26 allocations that will move forward: transportation will receive $5,489,659 to add more than 45 buses (with deliveries delayed to late school year and fall because of supply‑chain issues); $1,830,502 is slated for nutrition equipment; $3,000,000 for furniture and equipment; $2,500,000 for school safety initiatives; $10,000,000 retained for LED upgrades; and $6,500,000 retained for card reader projects. Malouf said stadium renovation set‑asides were reduced to zero in this plan and major stadium work will move into subsequent capital planning.
The board asked for clarity on how reserves will be used and which projects will be pushed into the next capital plan. Malouf said some set‑aside reductions are purely rephasing and not cancellations; design allocations for projects such as the Palmetto K–8 conversion and plans for Haines Bridge and Holcomb Bridge remain in place to allow community engagement and future design work. Doreef said the administration will continue publishing monthly cash‑flow reports and that the board will be presented with running totals as projects advance.
Next steps: The capital cash‑flow and budget update will appear on the consent agenda as staff finalizes the financial schedules and ongoing monthly reports will track total project spend and reserves.
