MD Public School Construction

Funding Factors

The IAC Funding Factors are used for determining State funding participation for the IAC’s Capital Improvement Program and Built to Learn program, but may not apply to all other funding programs (see each program under the Programs & Initiatives menu above).

The Funding Factors formula is used for new, replacement, and renovation projects. If the actual construction cost is less than the budgeted amount, the IAC’s participation is reduced accordingly. Systemic and limited renovation projects are based upon project estimates or contracts, if available at the time of allocation.

Funding Formula Graphic

Eligible Enrollment Projections

IAC determines an eligible enrollment project at each school, based upon:

  • Projected enrollment at the project school
  • Available capacity at adjacent schools

Eligible enrollment is multiplied by the GAB to determine the project square footage that is eligible for State participation.

Gross Area Baseline (GAB)

Gross Area Baselines are displayed in Gross Square Feet (GSF). The baselines are intended to support all of the spaces required to deliver the educational programs required by the State of Maryland and to encourage multiple uses of spaces and other utilization-maximizing strategies that can reduce facility size and therefore the long-term costs of ownerships.

The baselines are based upon traditional practices in facility-space allocations. Additional square footage is assigned for:

  • Special-education students in MSDE Least Restrictive Environment (LRE) categories C, S, and W
  • Students in grades 9-12 who are in career and technology education programs 

Gross Area Baseline

Click here to access the Gross Area Baseline calculator.

Cost Per Square Foot

The cost-per-square-foot is established by the IAC by July of the calendar year in which applications are submitted. It is multiplied by the IAC’s Statewide cost-per-square-foot school building cost. 

Cost-per square-foot is based on:

  • Bids received for new school construction in the prior year
  • Cost information derived from industry resources
  • Adjustments made by the IAC to reflect market conditions before final Capital Improvement Project approval

Cost Per Square Foot

Click here to access Cost Per Square Foot numbers.

State Cost Share Percentage

The product of the GAB and the cost-per-square-foot is then multiplied by the LEA’s cost share percentage.

The State cost share for any given LEA is established every two years by the IAC based upon a formula that includes factors such as:

  • LEA’s Foundation program amount
  • LEA’s FARMS percentage
  • LEA’s median household income and unemployment rate
  • LEA’s enrollment growth
  • LEA’s outstanding debt and PAYGO

State/Local Cost Shares

Click here to access cost share numbers.