House Corrections & Institutions hears BGS report that FY26 major-maintenance funds are nearly exhausted
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Summary
The Department of Buildings and General Services told the House Corrections & Institutions Committee that $3,000,000 remains in FY26 major maintenance funds after emergency repairs and standard spending; BGS said it spends cash before bonded funds and is limiting new starts pending spring and budget changes.
Joe Asia, director of design and construction at the Department of Buildings and General Services, told the House Corrections & Institutions Committee on Jan. 8 that "All I have left for major maintenance is $3,000,000" for the remainder of fiscal year 2026.
The update framed BGS’s immediate priorities and constraints. BGS is midway through FY26 review of Section 2 capital items funded in the FY26 budget and said emergency repairs — including two failed boilers and frozen HVAC coils at a health laboratory — have consumed a portion of the maintenance budget. Joe Asia said the agency spends cash funds before using bonded dollars, noting "we are using cash" and that cash first strategy can leave fewer readily available funds later in the year.
Committee members pressed on historical context and bonding capacity. A member observed that prior years included higher bonding and larger capital tax receipts, allowing bigger annual major-maintenance expenditures; BGS confirmed the prior peak was about $11 million per year during the prior multi-year program and that the current balance is materially lower. The chair clarified that a combination of prior-year encumbrances and lower bonding capacity explains the reduced available balance.
BGS described contingency authority available to the commissioner for intra‑section overages (up to $100,000 per instance) and noted that movement of funds between sections requires approval by the secretary of administration and the emergency board when thresholds are exceeded. Committee members said contingency could be used to backfill maintenance if major-maintenance balances are tight later in the fiscal year.
What’s next: BGS will continue to manage projects already in design, hold or delay new starts where appropriate, and return with more detailed updates when the governor’s budget is released and as specific project bids and encumbrances settle. The committee agreed to schedule additional BGS briefings focused on corrections facilities and other capital priorities.