Construction spending for education expanded modestly but steadily through March, while at the same time growth for other institutional construction had stalled earlier in 2009.
Education spending is now at or near the peak for this building cycle. The value of education starts is off 9% year-to-date compared to 2008. April starts fell 14% to the lowest total in more than three years. BD+C projects a 3–4% dip in education construction spending into early 2010, and then a recovery by the end of next year, which will bring spending up to early 2009 peak levels. Public education spending is up 6.4% in the past year but spending in the smaller, private sector dropped 0.4%. Funding for private education projects is very sensitive to current economic conditions, specifically tuition payments from current income and investment earnings.
College construction spending is up 12.2% from a year ago, but K-12 spending is up only 3%. Colleges boosted spending for instructional space 20.6% over the past year. Dormitory spending was up only 5%. These increases are the result of the relatively rapid expansion of community colleges and part-time programs for working adults. The small expansion of K-12 construction spending was entirely for high schools, which is up 7.9% over the last year. Middle school construction spending was steady, while elementary spending fell about 3%. These differences mirror enrollment changes. The peak enrollment is now in the 10th grade, which puts more pressure on high schools.
The reason the education construction recession is relatively modest is largely due to nearly $200 billion in state and local government aid included in the stimulus plan. This money is being paid out quickly because it's not linked to specific projects. These new funds offset the huge negative impact of reduced tax receipts in FY 09–10. Without the stimulus funds, a deep recession in public education construction would occur in 2009–10. Instead, most of the recession will be offset, with the balance deferred to 2011–12.
Related Stories
| Oct 23, 2013
Gehry, Foster join Battersea Power Station redevelopment
Norman Foster and Frank Gehry have been selected to design a retail section within the £8 billion redevelopment of Battersea Power Station in London.
| Oct 18, 2013
Meet the winners of BD+C's $5,000 Vision U40 Competition
Fifteen teams competed last week in the first annual Vision U40 Competition at BD+C's Under 40 Leadership Summit in San Francisco. Here are the five winning teams, including the $3,000 grand prize honorees.
| Oct 18, 2013
Researchers discover tension-fusing properties of metal
When a group of MIT researchers recently discovered that stress can cause metal alloy to fuse rather than break apart, they assumed it must be a mistake. It wasn't. The surprising finding could lead to self-healing materials that repair early damage before it has a chance to spread.
| Oct 7, 2013
10 award-winning metal building projects
The FDNY Fireboat Firehouse in New York and the Cirrus Logic Building in Austin, Texas, are among nine projects named winners of the 2013 Chairman’s Award by the Metal Construction Association for outstanding design and construction.
| Oct 4, 2013
Nifty video shows planned development of La Sagrada Familia basilica
After 144 years, construction on Gaudi's iconic Barcelona edifice is picking up speed, with a projected end date of 2026.
| Sep 24, 2013
8 grand green roofs (and walls)
A dramatic interior green wall at Drexel University and a massive, 4.4-acre vegetated roof at the Kauffman Performing Arts Center in Kansas City are among the projects honored in the 2013 Green Roof and Wall Awards of Excellence.
| Sep 23, 2013
Six-acre Essex Crossing development set to transform vacant New York property
A six-acre parcel on the Lower East Side of New York City, vacant since tenements were torn down in 1967, will be the site of the new Essex Crossing mixed-use development. The product of a compromise between Mayor Michael Bloomberg and various interested community groups, the complex will include ~1,000 apartments.
| Sep 19, 2013
What we can learn from the world’s greenest buildings
Renowned green building author, Jerry Yudelson, offers five valuable lessons for designers, contractors, and building owners, based on a study of 55 high-performance projects from around the world.
| Sep 19, 2013
6 emerging energy-management glazing technologies
Phase-change materials, electrochromic glass, and building-integrated PVs are among the breakthrough glazing technologies that are taking energy performance to a new level.
| Sep 19, 2013
Roof renovation tips: Making the choice between overlayment and tear-off
When embarking upon a roofing renovation project, one of the first decisions for the Building Team is whether to tear off and replace the existing roof or to overlay the new roof right on top of the old one. Roofing experts offer guidance on making this assessment.
