Board of Public Works Approves $320 Million for Baltimore City School Construction

Unanimous Vote from Governor, Comptroller, Treasurer

ANNAPOLIS, MD - The Maryland Board of Public Works approved on Wednesday the issuance of $320 million in Baltimore City Public Schools Construction and Revitalization Program revenue bonds by the Maryland Stadium Authority. The bond proceeds will be used to finance a portion of the costs to design, construct, and renovate a group of 11 public school facilities under the Baltimore City Public Schools Construction and Revitalization Program.

The $320 million is in addition to education funding already appropriated to Baltimore City in Governor Hogan’s FY 2016 budget. That budget includes record-breaking investment in K-12 education as well as $318 million for school construction. Governor Hogan was the first Maryland governor to fund the supplemental Geographical Cost of Education Index (GCEI) in his first year, and has already pledged to fully fund it in the next budget.

“Education will always be one of our top priorities, which is why our administration was proud to fund K-12 education at historic levels this past year,” said Governor Hogan. “We will continue to invest in education to ensure that every child in Maryland has access to a world-class education. I thank my fellow board members, Comptroller Franchot and Treasurer Kopp, for their support of this important effort.”

"I was pleased to join Governor Hogan and Treasurer Kopp in approving the issuance of these Stadium Authority Bonds," said Comptroller Peter Franchot. "In order to effectively educate our children to compete in a 21st-century global economy, we need to have classrooms and school facilities that are conducive to modern learning and academic success."

"This is an important step forward on the part of the State, the City, and the City Schools System, working together for our students and communities," said Treasurer Nancy Kopp. "Having the Maryland Stadium Authority as a partner in this effort is crucial for the success of this effort. I thank them for their professionalism, expertise, and dedication.”

The Baltimore City Public Schools Construction and Revitalization Act of 2013 authorized the Stadium Authority to issue up to $1.1 billion in debt. These bonds are solely payable from and secured by the Baltimore City Public School Construction Financing Fund established under the Act. The Financing Fund receives $60 million annually; this sum comprises $20 million from each of three entities: the State of Maryland, the City of Baltimore, and the Baltimore City Board of School Commissioners.

“These approvals are exciting because they will make tangible what until today have been significant dollar and time investments in planning, organizing, and designing,” said Thomas E. Kelso, chairman of the Stadium Authority. The Stadium Authority expects the bonds to carry a “AA” rating and be issued in January 2016.

The Board of Public Works is a three-member body consisting of the governor, comptroller, and treasurer of the state of Maryland. It oversees and approves many aspects of the state's finances and seeks to ensure “that significant State expenditures are necessary and appropriate, fiscally responsible, fair, and lawful” and that “executive decisions are made responsibly and responsively.”