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IAC warns of $170 million shortfall as lawmakers examine school-construction allocations
Summary
The Interagency Commission on School Construction told the Capital Budget Subcommittee that urgent school facility needs exceed the legislative funding target by about $170 million; IAC also described a fund-swap to help Baltimore City use expiring federal ARPA dollars.
The Interagency Commission on School Construction (IAC) told the Capital Budget Subcommittee that statutory funding targets fall short of urgent school facility needs and described accounting steps to preserve projects in Baltimore City.
DLS analyst Catherine Barber said the 2026 CIP allocates roughly $522.5 million across five IAC programs for FY27, with about $453.5 million in GO bonds and $69 million in PAYGO. IAC's preliminary awards were prepared using a conservative planning number; Barber told the committee that although the statutory target has been $450 million, IAC staff estimate the most urgent needs total an additional $170 million beyond that target this year.
IAC Executive Director Alex Donahue told the committee the agency is prepared to award whatever funds it receives in May and explained a fund-swap that would reallocate Baltimore City's expiring ARPA funds to HVAC projects in other jurisdictions while using GO bonds to backfill Baltimore City projects; Donahue described that move as an accounting swap that would extend the time Baltimore City has to execute its projects.
The commission also explained that Prince George's County has elected a separate public'private partnership route that provides the county with an annual state share outside the Built to Learn allocations (about $27 million per year). The commission asked the committee to consider maximizing school-construction appropriations while recognizing fiscal constraints.
What happens next: IAC will stand ready to allocate FY27 appropriations in May and work with the General Assembly and counties on priority-fund criteria if the statutorily mandated work group does not convene.
