One Small Silver Lining in a Very Dark Cloud
There has been little positive news to report on the fiscal front lately, but we are seeing signs of one small area of relief. Clients are beginning to report that the significant slowdown in the construction industry is producing more bidders and lower bids. One example was a project that was previously bid came in 50% over the architect’s estimate. The district could not afford that cost and therefore chose to re-bid the project. The winning bid was just below the architect’s estimate.
This exact same condition
occurred in the early 1990s. This favorable bidding climate is another reason we
hope voters support the record number of school facility bonds on the
November 4, 2008, ballot. As we previously reported, there are 86 local school
agency general obligation bond measures on the November 4 ballot. These measures
total nearly $22 billion; the same economics that make bidding easier will make
passage of the measures more difficult. But
we wish all of these school agencies the best as they try to maximize the value taxpayers receive for their local bond dollars.
—Ron Bennett and John Gray