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Audit of the Massachusetts School Building Authority Overview of Audited Entity

This section describes the makeup and responsibilities of the Massachusetts School Building Authority.

Table of Contents

Overview

The Massachusetts School Building Authority (MSBA) was created by Chapter 70B of the Massachusetts General Laws. Its website states,

The Massachusetts School Building Authority ("MSBA") is a quasi-independent government authority created to reform the process of funding capital improvement projects in the Commonwealth’s public schools. The MSBA strives to work with local communities to create affordable, sustainable, and energy efficient schools across Massachusetts. . . .

Our Mission: Partner with Massachusetts communities to support the design and construction of educationally-appropriate, flexible, sustainable, and cost-effective public school facilities.

According to Section 1A of Chapter 70B of the General Laws,

[MSBA’s board of directors] shall consist of the state treasurer, who shall serve as chairperson, the secretary of administration and finance, the commissioner of education, and 4 additional members appointed by the state treasurer, 2 of whom shall have practical experience in educational facilities planning, school building construction, or architecture and school design, and 2 of whom shall be persons in the field of education with demonstrated knowledge of Massachusetts curriculum frameworks and other relevant federal and state educational standards.

MSBA is funded through a dedicated 1% statewide sales tax (drawn from the statewide 6.25% sales tax). According to its financial statements, MSBA had the following dedicated sales tax revenue for fiscal years 2019 through 2021:

Fiscal Year 2019

$896,828,000

Fiscal Year 2020

$924,504,000

Fiscal Year 2021

$1,071,686,000

 

As of August 1, 2021, MSBA had 73 employees. It is located at 40 Broad Street, Suite 500, in Boston.

Competitive Grant Programs

MSBA administers competitive grant programs to which school districts can apply based on criteria established by the Commonwealth. The Core Program is primarily for extensive school repairs, additions, or new school construction. The Accelerated Repair Program is for renovation projects and repairs, typically for roofs, windows, doors, and/or boilers.

School districts that are interested in participating in these programs must submit statements of interest (SOIs). MSBA conducts a due diligence process for each SOI submitted. During this process, MSBA reviews the SOI for completeness and accuracy and conducts a senior study (which is a site visit or virtual visit to the school). MSBA has limited funding for these grant programs. Therefore, school districts that MSBA determines to have the most urgent need, based on the results of its due diligence process, are invited to apply for the grants until the funding is completely allocated or there are no more SOIs.

Date published: September 6, 2022

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