Board of Education Approves FY 2023 Capital Budget and FY 2023-2028 Capital Improvements Program Totaling $1.767 Billion

Per MCPS:

November 19, 2021

The Montgomery County Board of Education unanimously approved a Fiscal Year 2023–2028 Capital Improvements Program request of $1.767 billion, and a Fiscal Year 2023 Capital Budget appropriation request totaling $551.289 million.

The $1.767 billion recommendation is an increase of $148.3 million more than the previously approved CIP.

The six-year plan addresses the facility, capacity and infrastructure needs of MCPS. It includes expenditure recommendations for FY 2023-2028 and provides the recommended FY 2023 Capital Budget funding appropriation authority to implement the CIP during the fiscal year that begins July 1, 2022, and ends June 30, 2023.

“MCPS must continue to address building capacity and aging infrastructure to ensure students have a safe and welcoming place to learn,” said Interim Superintendent Monifa McKnight.

COVID-19 Impact: Due to the pandemic, the construction industry has experienced a rise in material prices, disruptions in the supply chain and staffing shortages, causing a significant increase in construction costs. These extraordinary circumstances have created funding shortfalls between budgeted costs and actual planned expenditures for many capital projects. Total project costs have increased to maintain previously approved completion dates.

Enrollment Expected to Increase: MCPS has seen a steady increase in student enrollment since the 2007-2008 school year. The pandemic, however, impacted enrollment. The official September 30th  enrollment is 158,232 for FY 2022, down from 160,564 in FY 2021, a one-year decrease of 2,332 students. Total enrollment is projected to increase to 166,160 students by the 2027-2028 school year.  Any decline in enrollment will be temporary;  capacity projects included in the recommended CIP should remain on their approved schedules.

Highlights: The recommendation maintains the completion dates of all capital projects included in the CIP, as well as additional funding for the following:

• Seven previously approved projects to reflect escalated construction costs and prevailing wage rate premiums;
• New school addition projects at Burtonsville and Greencastle elementary schools;
• Planning funds for major projects at Piney Branch Elementary School and Eastern Middle School; and
• Countywide infrastructure and projects to address systemwide initiatives and aging infrastructure.

In addition, there are two boundary study supplements to the Superintendent’s Recommended FY 2023 Capital Budget and the FY 2023-2028 Capital Improvements Program:

• Supplement A—The Superintendent’s Recommendation for Gaithersburg Cluster Elementary School #8 Boundary Study, available at the following link: https://www.montgomeryschoolsmd.org/departmentslplanning/gaithersburgcluster8boundarystudy.aspx
• Supplement B—The Superintendent’s Recommendation for Bethesda, Somerset and Westbrook Elementary Schools Boundary Study, available at the following link: https://www.montgomeryschoolsmd.org/departments/planning/gaithersburgcluster8boundarystudy.aspx

The recommended CIP includes one new boundary study to create the service area for the new Clarksburg Cluster Elementary School #9. The boundary study will occur in the spring of 2022, with Board action expected in November 2022. The new Clarksburg Cluster Elementary School #9 is scheduled to open in August 2023.

Timeline: The Superintendent’s Recommended FY 2023 Capital Budget and FY 2023–2028 Capital Improvements Program was presented to the Board on Oct. 25. The Board held work sessions on Oct. 26, Oct. 28, and November 9 and public hearings on Nov. 2, 4 and 8.

The County Executive will publish his CIP recommendations for all county agencies by mid-January for Council discussion and action. The Council will hold hearings in early February, conduct work sessions in March and April, and adopt the FY 2023 Capital Budget
and the FY 2023-2028 CIP by the end of May.

Read more about the FY 2023 Capital Budget and FY 2023–2028 Capital Improvements Program: https://www.montgomeryschoolsmd.org/departments/planning/cipmaster.aspx