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
Cultural Facilities | Jul 16, 2015
Louisville group plans to build world's largest disco ball
The sphere would more than double the size of the current record holder.
Cultural Facilities | Jul 14, 2015
Massive exhibition space in Inner Mongolia replicates steppe landscape
To mimic the Central Asian steppe landscape of the Chinese province Inner Mongolia, Kuanlu Architects proposed the construction of an exhibition plaza that can be walked on.
Cultural Facilities | Jul 13, 2015
German architect proposes construction of mountain near Berlin
The architect wants to create the world’s largest man-made mountain, at 3,280 feet.
Cultural Facilities | Jul 9, 2015
Gehry's Eisenhower Memorial plan gets OK from D.C. planning commission
Despite the thumbs up, disputes over costs may keep the $142 million work from ever being built.
Smart Buildings | Jul 9, 2015
St. Petersburg Pier’s dramatic makeover gets green light from city officials
The Pier Park will be a platform for a multitude of smaller and more flexible programs and experiences for tourists and the local community.
Museums | Jun 28, 2015
Manhattan's New Museum debuts first museum-led incubator space
Part studio, part shared workplace, part lab, and part professional development program, NEW INC connects design with technology, the arts with the market, students with seasoned practitioners, and the museum with the world.
Museums | Jun 23, 2015
Moreau Kusunoki's 'art in the city' scheme wins Guggenheim Helsinki design competition
The firm’s design concept makes use of the museum’s site, turning it into a bustling, well-connected waterfront hub.
Cultural Facilities | Jun 10, 2015
Artists turn oil tankers into architecture
Four Dutch artists propose transforming tankers into monuments with mixed-use space.
Cultural Facilities | Jun 5, 2015
Chicago’s 606 elevated park opens
The 2.7-mile stretch repurposes an abandoned elevated train track that snakes through Humboldt Park and Bucktown.
Cultural Facilities | Jun 2, 2015
Snøhetta and Dialog to revitalize Willamette Falls area in Oregon
As part of the plan, an abandoned paper mill will be repurposed, while landscaping and running trails will be added.
