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Officials describe value-engineering, local financing and augmentation as responses to rising construction costs
Summary
Chancellor's Office told senators it advises districts to use value engineering, alter unit mixes, seek local bonds or philanthropy, and only as a last resort request state augmentation to address construction cost escalation on student housing projects.
Committee members raised concerns about ongoing cost escalation while projects are under construction. Chris Ferguson said districts begin with value engineering—reducing per-unit costs by design changes such as centralized kitchens or altering single- to double-occupancy counts—and seek local resources before requesting state augmentation.
Ferguson said districts may use flexible local bonds, philanthropic contributions or nonprofit partners to cover increases; "in the event after all of those attempts are completed, districts then have a few choices... there is an ability to request an augmentation," he said. The Chancellor's Office committed to consult with staff and the administration before any official augmentation requests are made.
Senators directed staff to ensure the scoring and monitoring process considers cost pressures and to provide more detailed documentation when districts request additional state support.
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