In his February budget address to the General Assembly, Gov. Tom Corbett proposed a one-year moratorium on school construction reimbursements that could jeopardize safety, cost jobs and punch out chunks of business for architectural firms.
"It would have a significant impact on architects doing school projects," Dwight Knouse, AIA, managing partner at Hayes Large Architects, said. "Just the threat of it has stopped work on school projects."
At the moment, the moratorium is just a proposal and has not been drafted into legislation, but Michael Skolnick, AIA, principal at PZS Architects, said it already has had a chilling effect that is rippling through school districts and the design and build industry.
"Now there are a lot of projects that won't go into construction or go into planning," Skolnick said.
If such a moratorium was enacted, Skolnick said it could have an impact on the job market just as the economy is beginning to recover. Taxpayers also could get hit as districts with projects needed to be completed seek funds to pay contractors by cutting programs, cutting staff and raising taxes.
"One way or another, the public is going to feel it," Skolnick said.
AIA Pennsylvania Government Affairs Manager Robert Keaton, said talk of the moratorium is affecting the bond ratings of school districts, which could have long-term implications for future financing.
"We want to work out a solution with the administration that does not require a moratorium," Keaton said.
Currently, 240 schools across the state have projects already in the planning and construction program pipeline, 230 of them have yet to receive funding.
"We have projects that are almost completed in construction and have not received reimbursements," Knouse said.
For the current 2011-2012 fiscal year that ends June 30, the school construction reimbursement budget is $296 million, which has been declining from at least 2009-2010, when then-Gov. Ed Rendell provided $330 million, Skolnick said.
"It's been sort of slowly eroding," he said.
The administration said it needs to cut governmental costs across the board in its effort to balance the General Fund budget. The moratorium is one way they are looking to save money.
The proposal does require the General Assembly's approval, and, if introduced, would likely be in an omnibus education spending bill.
AIA Pennsylvania learned meeting with legislators on Architects Day that some House and Senate members were unaware of what the proposal could mean for schools districts including long, costly litigation because of their inability to pay contractors.
The state is statutorily obliged to provide reimbursements to school districts for a portion of school construction and renovation costs. A moratorium could halt projects to replace substandard facilities.
"To stop the program the state would be shirking their responsibility," Knouse said. "If you want to study the process of how school projects are funding, fine, but don't stop it. Let school construction continue while you study it."
