Will state reimburse school?

By Paula Canning

Staff Writer

CHICOPEE With construction costs for the new Chicopee Comprehensive High School exceeding the original estimate by $17 million, Mayor Richard Goyette has said that he is optimistic that the state will reimburse the city a least a portion of the additional construction costs for the new Chicopee Comprehensive High School.

But, according to State Treasurer Timothy Cahill, who chairs the Massachusetts School Building Authority (MSBA) the possibility that Chicopee will receive more than 90 percent of the previously approved $72 million in costs for the project is "not going to happen."

"We've put the costs down and we're going to stick to them," Cahill said.

The state originally agreed to reimburse the city 90 percent of the school's cost at a $61 million cap, but increased the allowable amount to $72 million due to inflation, site preparation costs, and the addition of a swimming pool, according to State Representative Joseph Wagner (D Chicopee), who hosted a press conference in his office last Thursday "to put to rest" the misconception that the city will be reimbursed a portion or all of the additional $17 million.

"I thought it was important with the groundbreaking approaching that the public know that the city will not be seeing any reimbursement for the additional funds," Wagner said.

He wants the city to know that moving forward with the project may mean that a large financial burden will fall on the shoulders of the city.

"I just want the public to know that this additional funding is going to be on the city's dime," he added.

Wagner, who helped draft the special legislation that revamped the state's SBA program, explained that the program cannot provide the additional funding because it must follow guidelines in order to remain effective in paying off projects throughout the state.

Cahill said that the MSBA has "calculated the numbers fairly and carried out the legislation in an open manner to determine what is an appropriate and allowable [reimbursement] amount and what would not be."

The Board of Alderman voted on March 22 to approve spending an additional $17 million in construction costs the same day that Cahill said he told Goyette in a phone conversation that the state could not fund any additional costs for the new Chicopee Comp. High School

"We made it clear to the Mayor the state's commitment to the community," Cahill said. "We've been very consistent about this and have made the numbers very clear from the beginning, " Cahill said.

According to Goyette, however, the notion that the city was told that it would not receive any additional funding "was completely false."

He said that during the March 22 phone conversation, members of the MSBA, including Executive Director Katherine Craven, "did not indicate any way shape or form that we were could not receive any additional reimbursement."

Goyette said that he still believes that at least partial reimbursement for the $17 million is "definitely possible," and that he hopes that the city's legislative delegation will continue to work on the city's behalf to gain the additional reimbursement.

In the event that state reimbursement is not received, Goyette said "there is no question," that the city will be able to handle financing the added costs.

"When I met with the Board of Alderman in March to discuss the additional $17 million we made it clear to them that we taking a gamble, and that the city does have financial ability to carry this project through," Goyette said. "If we have to borrow over the next 20 years, than we're certainly in a financial position to do that."

Goyette added, that, without the state's assistance, the city would never have been able to afford the construction of a new Chicopee Comp.

"We really appreciate the state's support," Goyette said.

According to Cahill, the state is committed to paying for inflation costs that were "much larger than anticipated in 2004," but funding any additional increases would threaten the sustainability of the program, which is currently paying on 1,153 school projects throughout the state.

"We're 1/3 the way through the waiting list and we're looking to move forward,"Cahill said.

He said that the state is hoping that by 2007, the MSBA can list the the moratorium on the list of school construction projects currently receiving reimbursement.

According to Cahill, the city now has two options to fund the additional $17 million or to minimize the costs or size of the project.

He also said its important to remember that the 90 percent reimbursement of the $72.5 million is still a "very generous" amount.