State Reimbursement Rate for Taconic Project Causes Concern

Superintendent Jason McCandless clarified on Wednesday the reimbursement rates Pittsfield can expect for a new Taconic High School.

PITTSFIELD, Mass. — Superintendent of Schools Jason McCandless says the amount of reimbursement to the city for the costs of a new high school building is likely to be significantly less than anticipated by the general public. 

Responding to recent feedback from upset residents, McCandless clarified to the School Committee on Wednesday that after adjusting for the Massachusetts School Building Authority's caps on construction costs, the total funding reimbursement from the state will actually be about 15 percent lower than has been commonly understood.

"I think most of the confusion has come because for seven or eight years people have been hearing 80 percent," according to McCandless, who said by contrast the "effective reimbursement rate" will likely be closer to 65 percent.

The superintendent said that while Pittsfield still hopes to qualify for an 80 percent reimbursement, that rate is based on the MSBA's fixed estimate of $287 per square foot of construction, compared to the actual estimated cost of $350 per square foot. Even if qualifying for the maximum tier, the state will only reimburse about $230 per foot, or around 65 percent.

Given the estimated cost of the planned building, the city's cost could run between $40 million and $44 million, which would be covered by a municipal bond that the city would pay down annually as part of its debt service. By contrast, estimates for regular maintenance and repairs for the current Taconic if the city does nothing are estimated at approximately $36.2 million over the next five to 10 years.

McCandless said the MSBA understands that these caps do not align with actual construction costs, but maintain such guidelines to conserve its finite fiscal resources and prevent "overbuilding" in school projects.

"At the end of the day, this fairness and equity is crucial to the mission of the MSBA," he told the committee.

The Taconic project has been one of significant concern in the community, with some residents opposed to the construction of a new second high school given the area's continued population decline. New construction was favored, however, by a majority of the residents who attended public hearings this summer as part of the feasibility study, and the city's School Building Needs Commission last month voted 16-1 in favor of this option.

"I thought it was important to address one of the elephants in the room regarding this building project," concluded McCandless. "Because for the better part of the decade I think we've been thinking about this as 80 percent, but it's 80 percent of what is allowed, not what the project is actually going to cost."

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