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Council hears testimony on $3.5M transfer for Faulkner Ridge Early Learning Center after bids come in over estimates
Summary
Howard County school construction officials requested a $3.5 million transfer to cover bid shortfalls on the Faulkner Ridge Early Learning Center, while staff said the project remains able to proceed and the remaining $2.4 million is planned in the FY28 request; council members asked questions about financing and bond timing.
Howard County Public School System capital staff told the council at Wednesday’s public hearing that bids for the Faulkner Ridge Early Learning Center exceeded initial estimates, creating a budget shortfall and prompting a request to transfer $3.5 million from completed high‑school projects.
Daniel Lubling, executive director of capital planning and construction for HCPSS, said the project was budgeted using state cost figures that have since risen; he described the project as primarily a renovation and said the state cost calculation would place the project at about $437 per square foot while the lowest responsive public bid came in at $548 per square foot. "The increase in cost is being seen throughout the industry," Lubling said, and he asked the council to approve TAO2 FY2026 (transfer of appropriations) and Council Bill 22 to authorize $3.5 million in bonds for Faulkner Ridge.
Rafael Hille, the county’s director of finance, and other staff explained the county’s approach to construction financing: the county uses a line of credit during construction and issues bonds once a year, consolidating projects for bond sales. Hille said the transfer provides the majority of funds needed now but that roughly $2.4 million would remain and is represented in the Board of Education's FY28 long‑range plan.
Council members pressed for clarity on whether the $3.5 million would allow construction to proceed and whether contractor prices were locked. Lubling said contractors’ bids lock in the base scope price and that the project can proceed; additional scope would require change orders. A council member expressed concern that a 63% increase in cost per square foot (industry metric cited earlier) would leave a $2 million shortfall that could slow the project; staff said the transfer would allow work to continue and the remainder is planned for FY28 funding requests.
The council accepted testimony; a legislative work session and committee review were suggested as next steps before final action.
