WICOMICO COUNTY, Md. -- Construction of a new Fruitland Primary School is moving forward, but a change in the state’s funding timeline means Wicomico County may have to cover more of the cost upfront.
"We know that, unfortunately, the state can't provide the funding on the same kind of timeline they have in the past for projects," said Brian Raygor, Chief Financial Officer for Wicomico County Public Schools.
Now, Wicomico County officials knew this would be the case back in December. What they are now trying to figure out is the best way to pay for this.
"We have to be really diligent in the decision that we make on how we are going to forward fund," said Julie Giordano, Wicomico County's County Executive.
The county has a few options, but Giordano said each comes with drawbacks.
One possibility is borrowing the money. However, the state is only responsible for reimbursing the principal amount(initial $15 million), meaning any interest accrued would fall on county taxpayers.
Another option would be using money from the county’s general fund.
"But, unfortunately, that just puts so much hindrance on other projects that we have," Giordano said.
Regardless of the approach, local taxpayers will likely contribute to covering the upfront cost.
Raygor noted there is a silver lining. The state is covering about 70% of the project’s cost, a higher share than some wealthier counties receive.
"If we were like some wealthier counties where the state was only paying maybe 50%, or even less, the total construction costs, we may not be needing to forward fund, but the county taxpayers would be on the bill for a much larger percentage of the construction costs that would never be reimbursed," Raygor said.
Wicomico County is expected to provide the roughly $15 million in January. Giordano said there are concerns it could take the state several years to reimburse the county, and she does not expect the full amount to be returned all at once.