Fiscal Analysis

JacksonCommunity College

Project Cost Increase

Bill/Sponsor

HCR 46, Rep. M. Hood III

Date

9/11/2007

Subcommittee

Joint Capital Outlay Subcommittee

House Committee

Appropriations

Analysis

Summary

The Health Programs Expansion andInformationCommons capital outlay project forJacksonCommunity College was authorized under PA 297 of 2005.  The total authorized cost was established at $16,500,000 to be financed between State Building Authority bonds and Jackson CC funds.  Additionally, SCR 52 was passed by the Legislature in December 2006 which authorized a project cost increase of $800,000 that was completely financed by the institution.  This multi-component project entails the construction of a new 57,000 sq. ft. Information andTechnologyCenter and renovation of 17,000 sq. ft. of space in the Center for Health Professions.

The Joint Capital Outlay Subcommittee (JCOS) approved a requested project scope increase onMarch 15, 2007 with the belief that it was cost-neutral.  As more detailed planning has occurred, this assumption proved to be inaccurate.  The college attributes unforeseen electrical, plumbing, and mechanical system expenses associated with the scope change which caused an additional $800,000 higher cost.  The college will also finance this entire cost increase.

The JCOS approved this resolution, with recommendation.  The Department of Management and Budget also recommends approval.

State Fiscal Impact

None

Local Fiscal Impact

JacksonCommunity College will finance the entire project cost increase (please see table on next page).

Jackson Community College – Health Programs Expansion and Information Commons Project

Current Authorizations

Requested

Change

Revised

Authorizations

State Building Authority

$7,499,800

$0

$7,499,800

State GF/GP

200

0

200

Jackson CC

9,800,000

800,000

10,600,000

Totals

$17,300,000

$800,000

$18,100,000

Analyst(s)

Al Valenzio

                

                 Mitchell Bean, Director - House Fiscal Agency

124 N. Capitol Avenue,Lansing,MI48909

 Phone: (517)373-8080, Fax: (517)373-5874

 http://www.house.mi.gov/hfa