The Committee on Finance and Government Operations heard testimony Jan. 8 on Bill No. 2-35-38, a measure to amend Public Law 38-60 and appropriate funds for predevelopment and leaseback obligations for Simon Sanchez High School.

Christina Garcia, GEDA CEO Administrator, testified in support and said providing funding in the current fiscal year would allow the government "to begin the predevelopment task ahead of the actual project financing." Garcia noted the Legislature recently appropriated $16,400,000 in the FY2026 budget for leaseback payments and said the bill would let DPW and GEDA authorize allowable predevelopment spending to keep the long-delayed project moving.

The bill matters, supporters said, because the predevelopment steps — including demolition, clearing and staging — are necessary to avoid further delays and added expense on a project that directly affects student safety and access to education. "Removing legal uncertainty and ensuring continuity for a project that directly impacts student safety and access to education," staff read from opening remarks by Committee Chair Senator Christopher M. Duenas, who said the amendment was requested by the governor's fiscal team.

In oral testimony, Garcia told the committee there is "clear evidence that construction cost have almost tripled in just in the last couple of years," citing inflation and increased defense-driven construction activity and work by TRMA on the A&E stage. She said the additional funding requested is intended to begin necessary predevelopment work without increasing the original project price tag.

Henry Teitzvah, a former GEDA administrator testifying as a private citizen, said he supports the bill and proposed adding a new Section 3 to expand financing options in the financing provisions of Public Law 37-22. Teitzvah said broader financing and investment options — citing programs such as CDFI and CDE in his testimony — could produce cost savings and give developers more options.

Lawmakers pressed for clarity on costs and oversight. Senator Gomitata asked whether the 2023 price tag of $166,365,000 for design, renovation or construction remains accurate given recent inflation; Garcia responded that the bill does not seek to raise that price tag but to provide funds to begin predevelopment work and to mitigate higher costs. On enrollment, a senator noted the system had about 909 fewer students heading into 2024–25; Garcia said the Department of Education has indicated it intends to maintain the population levels used in the initial design and that earlier discussions included possible enrollment from Department of Defense families.

Committee members also asked who oversees predevelopment orders to ensure funds are used only for intended predevelopment activities. Garcia said Department of Public Works reviews and oversees predevelopment orders and that GEDA's role is limited to financing and legal documents that encumber or secure financing on the government's behalf. Senators noted DPW had been invited but did not testify and suggested the committee seek DPW comment in a follow-up hearing.

The committee postponed consideration of Bill No. 2-11-38 (the measure to restrict transfer or deappropriation of certain prior-year appropriations for public safety agencies) and did not hear testimony on that matter at the session. The chair said the committee will continue to accept written testimony on Bill No. 2-35-38 for seven calendar days, with submissions directed to Senator Christopher M. Duenas by mail or email. The hearing adjourned at 3:20 p.m.