HCPSS kicks off FY28 capital‑budget development amid rising construction costs and shifting state participation

Howard County Public Schools officials on Thursday opened development of the fiscal 2028 capital budget, telling the Board of Education that rising construction costs, changing state participation and enrollment projections will shape which facilities projects advance.

"Over the next few months we'll be working to fine‑tune our capital budget that we would present through the superintendent's recommendation to the board for approval to submit to the state in October," said Cornell Brown, chief operating officer.

Daniel Lubley, the district's executive director of planning and construction, walked the board through the difference between operating and capital funds, the industry standard 50‑year renewal cycle for school facilities and the role of enrollment projections and the Educational Facilities Master Plan (EFMP) in prioritizing projects. Lubley noted that the Interagency Commission on School Construction (IAC) had approved new cost‑per‑square‑foot figures earlier in the day — $448 per square foot for building only and $533 per square foot for building plus site — and that local public bids have already exceeded those marks in some cases.

HCPSS staff identified the district's IAC target allocation for fiscal 2028 as $13,186,877; combined with an approximate $1.3 million Howard County State Reserve, staff presented an available state funding estimate of about $14.5 million, a decline from fiscal 2027.

Lubley and Brown emphasized that state participation applies to eligible items only and that the IAC ultimately determines eligibility; non‑eligible items are fully locally funded. They reviewed other state funding sources, including the Build to Learn Act and a competitive Nancy K. priority fund (HCPSS received a $6 million award in fiscal 2027 for building‑condition items that did not require a local match) and said staff will continue to study alternative funding strategies and energy‑savings contracts.

Board members asked when the sufficiency study and other facility analyses would feed into capital planning. Brown said the sufficiency evaluation will be presented in the fall and will inform FY29 and longer‑range planning. Lubley said projects that enter coordination with state authorities (for example, Maryland Stadium Authority for Build to Learn projects) can trigger bond processes and make some projects difficult to stop once designs and MOUs are executed.

The presentation was framed as a kickoff and informational report; no board action was required or taken on Thursday.

"A benefit of the Build to Learn Act funding is that it provides an additional state funding source that will alleviate some of the pressure on the annual state CIP funding and the local funding requests," Lubley said. "As with most state funding sources ... both the CIP and Build to Learn Act funds do require local match to utilize the funds."