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DGS outlines FY27 capital priorities as lawmakers probe growing facilities renewal backlog
Summary
Department of General Services officials described programs in the FY27 capital plan — including State Center redevelopment, facilities renewal fund allocations and building renovations — while lawmakers pressed the agency on a growing $345 million renewal backlog and contingency plans for vacant State Center property.
Testifying to the Capital Budget Subcommittee, DGS Secretary Matif Chaudhry defended the agency's FY27 capital request and described plans for several high-profile projects while acknowledging a rising backlog of renewal needs.
DLS analyst Yashoda Rai opened with an overview: the fiscal 27 budget programs about $63.2 million for the facilities renewal fund (52 projects), $125.7 million in statewide and regional grants and loans in the 2026 CIP, and targeted GO bond authorizations for projects including the Treasury building and a Wineland building design allocation. Rai recommended deauthorizing $250,000 in excess GO bonds for the Revolutionary War memorial and $3,000,000 for State House and old Treasury restoration, citing project completion.
Secretary Chaudhry described progress at the State Center complex: seven of 12 agencies had relocated as of October 2025, and DGS awarded a predevelopment consultant contract in September for a transit-oriented redevelopment strategy; he said DGS and MDOT are coordinating and that holding costs and site security will be incurred while the site remains vacant. "We're currently doing engineering studies and analysis of our buildings... that should be wrapping up in a couple of months," Chaudhry said.
Lawmakers pressed DGS about a facilities renewal backlog that grew about 33% to roughly $345 million and whether $5 million per month in encumbrances will be sufficient to reduce it. Chaudhry pointed to improved building assessments and a prioritization methodology; DGS said it will use enhanced procurement strategies, additional statewide contracts and project management support to accelerate delivery.
DGS also discussed project-specific items: a planned FY27 geo-bond allocation to begin design of the Goldstein Treasury Building renovation; design funding for a Wineland Building project; and $57.6 million in general funds included in the 2026 CIP for miscellaneous grants, including support for private-sector facility expansions such as an AstraZeneca project and funds the governor proposed for a Sphere Maryland project.
What happens next: DGS said it will follow up with estimates for holding and security costs for State Center and with coordination plans for temporary relocations; DLS and the committee requested additional clarifications on out-year funding and the rationale for recommended deauthorizations.
