Newly Released School Construction
Cost Thresholds for 2007

In January 2005, Governor Mitch Daniels issued Executive Order 05-19, directing the Department of Local Government Finance (DLGF) to develop guidance for financing school projects. As part of this guidance, the DLGF issues school construction cost thresholds to ensure projects are cost efficient. Recently, the previously issued cost thresholds were updated to reflect more current construction conditions.

Purpose of School Construction Cost Thresholds

The DLGF uses information gathered for its Indiana School Construction Annual Report. The report compares Indiana projects that are proposed, approved and completed to those completed regionally and nationally. Proposed projects are then compared to the collected data for reasonableness. The DLGF does not automatically deny a proposed project that exceeds established thresholds. The DLGF will review these projects more closely and may request supplemental information to justify the costs.

2007 School Construction Cost Thresholds

Below are school construction cost thresholds for 2007, as outlined by school and construction type: 

Indiana DLGF 2007 School Construction Cost Thresholds
School Type	New Facilities	Additions to Facilities
Elementary	$150/sq ft	$193/sq ft
Middle/Intermediate	$157/sq ft	$220/sq ft
High School	$168/sq ft	$240/sq ft

Should you have questions regarding these thresholds, please feel free to contact Colette Irwin-Knott, Curt Pletcher or Todd Samuelson at footnotes@umbaugh.com.