District officials said during the Sept. 29 board meeting the increase in construction costs over the span of two years has affected its major 2021 bond construction projects. According to RISD officials, the cost increases have also affected other school districts and cities across Dallas-Fort Worth over the same time period.
“The skyrocketing price of steel and building materials coupled with shortages of skilled labor continue to drive cost increases on all major construction projects,” said James Watson, RISD chief executive director of operations.
The projects have created a projected $77 million shortfall in the 2021 bond package, which is more than 10% of the approved $750 million proposition, according to district officials. These construction projects include the Middle School Transformation Project at Forest Meadow and Lake Highlands junior highs as well as an expansion for increased classrooms and space at Pearce High School.
One option put on the table by Superintendent Tabitha Branum to remedy the situation was to reduce the scope of projects from the 2021 bond or to defer funding projects to a future bond. Branum said if that happens, it would be the first time in RISD history that the district was unable to complete approved bond projects due to inflation.
However, Assistant Superintendent of Operations Sandra Hayes said deferring needed projects while costs continue to rise will increase the likelihood that it will cost the district more money in the future.
“It is always our goal and plan to maintain our buildings' systems to extend their useful life as long as possible,” Hayes said. “But with ongoing use, all equipment and infrastructure will eventually fail.”
Several trustees expressed a desire to protect the bond funding for planned renovations at three RISD elementary schools, if possible.
Another possibility presented during the meeting is placing a supplemental bond package before voters to address the shortfall. However, no further details on that possibility were discussed. RISD traditionally plans capital expenses on five-year bond cycles, with the next anticipated bond planned for 2026.
Branum shared that the district has heard consistent feedback from the learning communities for RISD's six other junior high schools about accelerating the middle school transformations there. The schools in the Lake Highlands area are expected to shift to a middle school instructional model beginning in August 2024.
“Does it make sense to evaluate different scenarios for the next bond?” Branum asked. “With construction costs continuing to rise, and the district committed toward a districtwide middle school model, is it wiser fiscally for our voters to consider doing that sooner than 2026?”
No action was taken by the board during the Sept. 29 meeting.
