States Scrutinize School Construction Costs

Concerns Lead to Audits, Moratoriums on Deals in New Jersey, Indiana

With an eye toward cost overruns, questionable architectural features, and rising bottom lines, several states are taking a closer look at how districts manage their school construction projects.

New Jersey has even put a hold on new land deals, contracts, and change orders under its $8.6 billion facilities project for some of its neediest districts after a review by the state inspector general found “lax and/or nonexistent oversight and accountability” within the state’s School Construction Corp.

Meanwhile, Indiana is near the end of a 120-day moratorium on approving school construction projects. The halt was called by newly inaugurated Gov. Mitch Daniels in his State of the State Address in January to give the state time to review whether too much school construction aid was...