Putting Children First

NYC Department of Education Proposing $13.1B Capital Plan

by Natalie Keith

The New York City Department of Education is proposing an ambitious $13.1 billion capital plan designed to improve 671 struggling schools and build 76 new ones.

If the plan is fully realized - the city is counting on the state to provide $6.5 billion in funding - it could means hundreds of new design and construction contracts for those in the industry. The New York City School Construction Authority, which oversees school construction projects, has not yet decided whether projects will be design-build or be designed first, then bid out and built.

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"This plan addresses not just capacity and repair issues, but what we need to guarantee our children a sound education," said Kathleen Grimm, DOE deputy chancellor.

Grimm and William Goldstein, president and CEO of the SCA, outlined the plan at a New York Building Congress event late last year. Similar presentations have been made to community and other groups over the past several months. The City Council, which must approve the plan, is expected to hold public hearings on the issue this spring.

The plan must be approved by June for it to become effective in fiscal year 2005, which starts July 1. The proposed plan would be effective through fiscal year 2009.
The plan's main features are:

• $4.6 billion for restructuring and improving 671 struggling schools containing more than one half of the city's student body. This money would also be used to create 50 new charter schools.
  
• $4 billion for building 76 new school buildings, thereby reducing class size in the K-3 years.
  
• $4.5 billion for capital improvement projects, including exterior and interior building upgrades, mandated programs and other necessary repairs.

Projects will be awarded through a competitive lump-sum bidding process, which is required by law. Some projects will be awarded after a broad bid process, and others will be awarded after seeking bids from a select list of contractors, Goldstein said.

Included in the money earmarked to improve struggling schools is funding targeted for capital investments intended to improve education. That includes $736 million for technology enhancements such as computer equipment; $157 million for safety improvements like video surveillance systems; and $1.272 billion for education enhancements, including laboratory upgrades and increased access for disabled students.

"There's nothing frivolous in this plan," Goldstein added. "It's not just a wish list; it's based on educational need."

With $4 billion earmarked to build 76 new schools, the city is hoping to add 63,000 seats citywide. This would include 11 small primary school buildings (or 450 seats) for grades K-3; 49 primary/intermediate school buildings (or 650 seats) for grades K-8; and 16 intermediate/high school buildings (or 1,650 seats) for grades 6-12.

The money earmarked for capital improvements includes $868 million for exterior building upgrades, $1.735 billion for interior building system upgrades and $301 million for other building upgrades.

Under the proposed plans, specific new school projects are identified by region and district for all five years, but building renovation projects are identified only for the first two years with lump-sum allocations for the remaining three.

"The capital plan we've drafted will have a significant change on student's lives and will address longstanding problems such as overcrowding," said Goldstein.

He added that, unlike past plans, this one contains $4 billion for restructuring facilities to meet instructional needs, such as the addition of new science laboratories or the rewiring of buildings to create "wireless" environments.

"From a contractor's standpoint, there will be some new and different types of jobs to be done," Goldstein said.

The city currently has $6.5 billion funded for the plan, a significant increase from funding levels in past years. The city is anticipating that the state will provide $6.5 billion in funding with the rest coming from other public and private sources, Grimm said.

City officials are basing funding projections on a June 2003 decision of the New York Court of Appeals regarding the "Campaign for Fiscal Equity" lawsuit. The court ruled that, under current funding formulas, city schools do not receive enough assistance from the state. To remedy the imbalance, the state should provide at least half of the funding for the capital plan.

"One of the reasons we remain convinced that the Legislature and governor will address this issue by June is that it will go back to the courts then," Grimm said.

Richard Anderson, president of the New York Building Congress, said the city has made much progress with schools under Mayor Michael Bloomberg but still needs to receive the projected level of funding from the state.

"Without the money from the state, it's business as usual," he added.

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