Market Watch: Facilities

Two years into a five-year, $7 billion construction program, New York City's school system is looking at a funding shortfall of as much as $2.8 billion.

In light of the funding mess, school Chancellor Harold O. Levy wants the responsibility for building and repairing schools to be taken out of the hands of the school board.

“I find it incredibly troubling,” says Levy. “It is clear that a change must be made immediately.”

Levy proposes that the School Construction Authority, which is overseen by him, an appointee of the mayor and an appointee of the New York governor, be given control of the district's massive construction effort.

“This will ensure that the projects are developed, executed and managed in the most effective manner,” says Levy.