Surging enrollment growth in numerous school districts around the state — but especially in the Phoenix area — could add up to an increase of nearly $150 million in how much the state spends annually to build new schools.
The state School Facilities Board has notified the Legislature that costs for building new schools will total an estimated $401.8 million in the upcoming fiscal year.
That’s up $149 million, or nearly 60 percent, from the $250 million appropriated for the current fiscal year now in its fourth month.
The $401.8 million includes $35 million for land and $366.8 million for actual construction. High schools cost an average of $2.1 million.
The state pays for costs of building basic new schools under the Students First program created in 1998. The program allots funding based on a space formula keyed to enrollment.
The board’s estimates, based partly on building schedules and demographic assumptions, were submitted to a legislative oversight panel, the Joint Committee on Capital Review, for review on Nov. 15.
The state resorted to lease-purchase agreements, a form of borrowing, to pay for school construction costs during three tight budget years earlier this decade. However, the state’s improving finances enabled the Legislature to switch to cash financing beginning with the fiscal year that ended June 30.
The cost estimate includes money for construction projects already approved by the board as well as projects to be considered for authorization during upcoming months.
The board based its demographic assumptions partly on 68 school districts’ enrollment forecasts as well as historical enrollment data, state population figures and residential housing growth.