PLANCON Update – Upcoming Moratorium

Crabtree, Rohrbaugh & Associates values the relationships we have with School Districts. We feel that it is necessary to inform our contacts of changes that effect funding for building projects and the planning for them to be successful.

This communication is to inform clients of the recent approval of the 2015-2016 Fiscal Code which includes PlanCon.  Those clients that are in the beginning stages of the design of a qualifying reimbursable project should note the recent PlanCon changes and the timeline. We are in the process of working with several Districts to meet this deadline.  If your District is considering a project, please contact our office.

With House Bill 1589, the fiscal code bill, to become law the following changes to PlanCon have become law:

PlanCon: Efforts can now move forward to take the $2.5 billion borrowing proposal to the Commonwealth Financing Authority. The timing of when districts owed 2015-16 reimbursement will receive their state dollars is unclear. It appears unlikely districts will have their 2015-16 PlanCon reimbursement by June 30.

Moratorium: A moratorium on new projects entering the PlanCon process will go into effect beginning on May 15, 2016. The bill states that the moratorium will last throughout the remainder of 2015-16 and through 2016-17. Page 32 of HB 1589 – For the 2015-2016 and 2016-17 school years, the Pennsylvania Department of Education shall not accept or approve new building construction or reconstruction project applications. Completed school building construction or reconstruction project applications received by PDE by May 15, 2016, are not subject to this subsection.  Additionally, there is a second requirement that any PlanCon Part A/B submitted must enter a contract for construction by July 1, 2019 or they become void.

Posting of Data: PDE has 90 days to post information about each current PlanCon program to provide more transparency to the public and to school districts.

Advisory Committee:  HB 1589 requires the formation of a PlanCon Advisory Committee that will review and make recommendations for a new PlanCon program by May 15, 2017. The committee has until May 24, 2016 to schedule its first meeting.

Again, if your District is considering a project, please contact our office at 717 458 0272 to see how we can assist the District in meeting the deadline.