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DFCM urges better agency reporting as it builds lease‑rate model and outlines capital‑improvements priorities

Transportation Infrastructure Appropriation Subcommittee · February 4, 2026
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Summary

DFCM told the Transportation Infrastructure Appropriation Subcommittee it is developing lease rates under House Bill 349 (2019) that supplement operations-and-maintenance charges with amortized capital-replacement and capital-improvement components, but significant gaps in agency self-reporting and CRV data limit accuracy.

The Division of Facilities Construction and Management told the Transportation Infrastructure Appropriation Subcommittee on Feb. 4 that it is working to implement House Bill 349 (2019) by developing lease rates that reflect the full cost of occupying state buildings rather than relying on operations-and-maintenance (O&M) charges alone. Andy Maher, DFCM division director, said the agency combines self‑reported O&M data with factors for capital replacement and a capital‑improvement factor DFCM currently models at about 1.3 percent.

Maher and Scott Whitney, DFCM facilities program manager, said the approach is meant to produce a private‑sector‑style lease rate…

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