I am honored to serve you as the Executive Director of the Massachusetts School Building Authority (“MSBA”). The MSBA is committed to creating an efficient and financially sustainable program to fund school facility capital improvement projects.
In 2004, State Treasurer Tim Cahill worked with the Legislature to create the MSBA as an independent public authority, charged with reforming the former school building program that had amassed $11 billion in outstanding obligations with no clear funding source and that had built up a list of 428 projects that were waiting for state reimbursement.
Since its creation, the MSBA has made significant progress in implementing major management and financial reforms to the state reimbursement and funding process for school construction, renovation, and repair projects. Under the guidance of State Treasurer and MSBA Chair Tim Cahill, and with strong legislative support, the MSBA has made over $6 billion in payments to cities, towns, and regional school districts – more than any other state entity. This is $4 billion more than what would have been expended on school building assistance if the Legislature had not created the MSBA. We know that the infusion of the MSBA’s cash has helped many cities, towns and regional school districts with local operating budget shortfalls, lowering local tax rates, or using funds formerly tied up in school debt service for other local capital improvement projects.
The MSBA has also worked tirelessly to complete 730 audits of the 800 audit backlog inherited from the former program. Our audits have generated over $800 million in savings to state taxpayers and over $2.3 billion in savings to local communities. We have developed a“Pro-Pay” payment system that promptly audits project invoices and reimburses communities for eligible costs within 15 days of their submission to the MSBA. This replaces a system in which communities would wait 10 years to receive their first payment from the state.
The MSBA is currently in discussions with over 180 school districts about potential new projects ranging from new buildings, renovations, and repairs. We will never over-promise and under-deliver on any project that we work on with a district.
I look forward to continuing our commitment to work with local officials and the Legislature in providing a sustainable, educationally sound and efficient program for school construction grants.
Sincerely,
Katherine Craven, Executive Director
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